question

Corporate strategies are concerned with the broad and long-term questions of what business(es) the organization is in or wants to be in and what it wants to do with those businesses

answer

TRUE

question

A multiple business organization operates only in one industry

answer

FALSE

question

a corporate strategy provides the means or mechanisms for making sure the organization achieves its goals

answer

FALSE

question

One example of a possible corporate strategic direction is increasing its level of operations

answer

TRUE

question

a growth strategy involves the attainment of specific growth objectives by increasing the level of an organization's operations

answer

TRUE

question

A reengineering strategy is one that involves the attainment of specific growth objectives by increasing the level of an organization's operations

answer

FALSE

question

The product market exploitation operation describes attempts by the organization to increase the number of markets to increase the product sales

answer

FALSE

question

One drawback of the concentration strategy is that the organization is vulnerable to industry and other external environmental shifts

answer

TRUE

question

the vertical integration strategy involves expanding the organization's operations through combining with other organizations in the same industry doing the same things

answer

FALSE

question

a diversification strategy is a growth strategy in which an organization expands its operations by moving into a different industry

answer

TRUE

question

A merger is a legal transaction in which two or more organizations combine operations through an exchange of stock, but only one organization entity will actually remain

answer

TRUE

question

cost cutting can be approached from the across the board or selective cuts perspectives

answer

TRUE

question

Liquidation is the process of selling off a business to someone else where it will continue as an ongoing business

answer

FALSE

question

A spin-off involves setting up the business unit as a separate business through a distribution of shares of stock

answer

TRUE

question

Downsizing is the failure of a business and involves dissolving the business under the protection of bankruptcy legislation

answer

FALSE

question

Effectiveness is the search for the best practices inside or outside an organization

answer

FALSE

question

The Mckinse-GE Spotlight matrix is also known as the growth share matrix

answer

FALSE

question

The main drawback of the BCG and McKinsey-GE Spotlight matrixes is the subjectivity of the analysis

answer

TRUE

question

Coca Cola is a _________ organization and Pepsico is an example of a ________

answer

Single-business; multiple business

question

A Company like PepsiCo with a number of business units such a snack foods, beverages, and prepared is referred to as a

answer

Multiple-business organization

question

a concentration strategy

answer

is a growth strategy in which the organization concentrates on its primary line of business and looks for ways to meet its growth objectives through expanding its activities or operations in its core business

question

when an organization remains with its core industry, this is an example of a _____

answer

concentration

question

an attempt by the organization to increase sales of its current product(s) in its current market(s) is referred to as

answer

product market exploitation

question

developing different uses for a product is an example of a _______ concentration option

answer

product market exploitation

question

which of the following is a possible organizational growth strategy

answer

all of the answer choices are correct: concentration vertical integration horizontal integration diversification

question

a paper manufacturer purchasing a forest of trees is an example of

answer

backward vertical integration

question

which of the following is a benefit of vertical integration

answer

none of the above: competitive advantage

question

one of the risks associated with a horizontal integration strategy is

answer

a potential violation of antitrust laws

question

diversifying into a completely different industry from the organization's current operation is referred to as

answer

conglomerate diversification

question

related diversification is _______ unrelated diversification

answer

more effective than

question

the primary reason that an organization would pursue a diversification strategy is to

answer

achieve synergy

question

for corporate growth strategies, the options for implementation are

answer

mergers/acquisitions, internal development, and strategic partnering

question

a legal transaction in which two or more organizations combine operations through an exchange of stock is called a(n)

answer

merger

question

______ are usually "friendly"

answer

mergers

question

starting a business from the ground up is referred to as

answer

internal development

question

which of the following is a type of strategic partnering

answer

joint venture

question

examples of strategic partnering include

answer

joint ventures, long term contracts, and strategic alliances

question

a long term contract is usually an agreement between

answer

an organization and its suppliers

question

the ______ strategy is one in which the organization maintains its current size and current level of business operations

answer

stability

question

the type of renewal strategies include

answer

retrenchment and turnaround strategies

question

a more dramatic response to a failing organization may be

answer

a turnaround strategy

question

the organization's ability to complete or reach goals is referred to as

answer

effectiveness

question

efficiency is

answer

the ability of the organization to minimize the use of resources in achieving organizational goals

question

examples of portfolio analyses include

answer

all of the answer choices are correct

question

a business unit with low relative market share and low industry grow rate is referred to as

answer

dog

question

factors of industry attractiveness include

answer

all of the answer choices are correct: industry profitability number of competitors ethical standards technological stability of the market

question

one of the major disadvantages of the McKinsey matrix is that of

answer

subjectivity

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