Mangement Ch8 – Flashcards
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Which of the following is a business activity that an organization does especially well relative to its competition? a. Strategy b. Synergy c. Cash cow d. Core competence e. Multidomestic
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ANSWER: d
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. The condition that exists when the organization's parts interact to produce a joint effect that is greater than the sum of the parts acting alone is known as: a. core competence. b. synergy. c. value creation. d. business-level strategy. e. multidomestic strategy.
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ANSWER: b
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When properly managed, _____ can create additional value with existing resources, providing a big boost to the bottom line. a. synergy b. competitors c. government contacts d. command structure e. cooperation among customers
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ANSWER: a
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_____ can be defined as the combination of benefits received and costs paid by the customer. a. Organizational benefits b. Value c. Cost-benefit diversity d. Synergy e. Core competence
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ANSWER: b
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After Sunshine Systems merged with RTD Enterprises, company executives noticed that due to increased employee collaboration between the two units, costs were down and revenues increased within both areas. This is an example of what business phenomenon? a. Strategy execution b. Portfolio strategy c. Core competency d. Synergy e. Delivering value
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ANSWER: d
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When AT decided to buy Media One, a cable company, it was pursuing a(n) _____ strategy. a. functional-level b. internal growth c. multi-domestic d. corporate-level e. business-level
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ANSWER: d
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_____ level strategy pertains to the major functional departments within the business unit. a. Operational b. Corporate c. National d. Business e. Functional
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ANSWER: e
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8. When Philip-Morris, the tobacco giant, bought Kraft, Inc., it was pursuing a _____. a. corporate-level strategy b. business-level strategy c. functional-level strategy d. multidomestic strategy e. retrenchment strategy
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ANSWER: a
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Which of the following pertains to the organization as a whole? a. Business-level strategy b. Functional-level strategy c. Corporate-level strategy d. Operational-level strategy
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ANSWER: c
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Sears' decision to sell off much of its financial services division is an example of a: a. corporate-level strategy. b. business-level strategy. c. functional-level strategy. d. growth strategy. e. stability strategy.
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ANSWER: a
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A corporate-level strategy is concerned with the question: a. what business are we in? b. how do we compete? c. how do we support our chosen strategy? d. where do we market our products? e. should we promote from within?
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ANSWER: a
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When Coca-Cola introduced Surge, a new citrus soft-drink, what type of strategy was being pursued? a. Functional-level strategy b. Multi-domestic strategy c. Corporate-level strategy d. Retrenchment strategy e. Business-level strategy
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ANSWER: e
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Ford's decision to completely redesign its Ford Taurus can be classified as a: a. corporate level strategy. b. business level strategy. c. functional level strategy. d. retrenchment strategy. e. stability strategy.
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ANSWER: b
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Janessa is the CEO of a privately-held software company. In defining corporate-level strategies, which of the following questions would she most likely be concerned with? a. How do we compete? b. What business are we in? c. How does marketing support the business? d. How can we maximize profits? e. How can we make manufacturing processes more efficient?
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ANSWER: b
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Decisions regarding the proper amount of advertising for a particular good or service are related to: a. corporate-level strategies. b. functional-level strategies. c. tactical-level strategies. d. business-level strategies. e. retrenchment strategies.
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ANSWER: d
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Which of these questions is central to a functional-level strategy? a. What business are we in? b. How do we compete? c. How do we support our chosen strategy? d. What business do we buy? e. Where to market our products?
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ANSWER: c
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Which of the following lists the strategic management process in proper order? a. Formulate strategy; Evaluate strategy; Perform SWOT analysis; Define new mission/goals; Execute strategy; Control strategy. b. Perform SWOT analysis; Evaluate current mission/goals; Formulate strategy; Execute strategy; Define new mission/goals. c. Evaluate current mission/goals; Define new mission/goals; Formulate strategy; Execute strategy; Perform SWOT analysis . d. Evaluate current mission/goals; Perform SWOT analysis; Define new mission/goals; Formulate strategy; Execute strategy. e. Define new mission/goals; Execute strategy; Formulate strategy; Evaluate new mission/goals; Perform SWOT analysis.
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ANSWER: d
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18. _____ refers to the use of managerial tools to direct resources toward the achievement of strategic goals. a. Strategy formulation b. Strategy coordination c. Strategy execution d. Strategy control e. Strategy planning
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ANSWER: c
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Which of the following refers to the planning and decision making that lead to the establishment of the organization's goals and of a specific strategic plan? a. Strategy formulation b. Strategy implementation c. Strategy coordination d. Strategy control e. SWOT
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ANSWER: a
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Fred has been assigned to conduct a SWOT analysis for his organization, Acme, Inc. As part of this assignment, Fred will: a. conduct an external wage survey. b. search for the strengths, weaknesses, opportunities, and threats that impact his firm. c. choose a grand strategy for his firm. d. do a cost/benefit analysis. e. develop a mission.
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ANSWER: b
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Techniques used to monitor external environments include: a. hiring scanning organizations. b. hiring the competitive intelligence professionals. c. government reports. d. professional journals. e. all of these.
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ANSWER: e
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Classy Clay has extremely creative employees who, in the opinion of the organization, keep the company ahead of the competition. The creativity of these employees would be classified as a(n) _____. a. internal weakness b. external opportunity c. external strength d. internal strength e. neutral factor
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ANSWER: d
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Paramount, Inc. is particularly concerned about pending legislation in Congress that would further regulate their organization. This legislation would be classified as a(n) _____. a. external opportunity b. internal strength c. external threat d. external weakness e. congressional chaos
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ANSWER: c
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Sherri has been asked to participate on a cross-functional task force that is charged with performing an audit checklist for her advertising firm. The task force will analyze organizational strengths and weaknesses as they apply to the firm. Sherri's task is to analyze management quality, staff quality, degree of centralization, and organizational charts. This level of analysis pertains to which area of the audit? a. Management and organization b. Marketing c. Human resources d. Research and development e. Production
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ANSWER: a
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Where does the information about opportunities and threats comes from? a. An analysis of the organization's internal environment b. A department by department study of the organization c. Scanning the external environments d. Employee grievances e. Financial ratios of the organization
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ANSWER: c
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What type of organizational unit has a unique business mission, product line, competitors, and markets relative to other units in the same corporation? a. Product unit b. Functional unit c. Strategic business unit d. Operational unit e. Business consulting group unit
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ANSWER: c
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How business units and product lines fit together in a logical way is the essence of: a. business-level strategy. b. portfolio strategy. c. competitive strategy. d. financial strategy. e. functional strategy.
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ANSWER: b
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Gatekeep Utilities is a subsidiary of GW Enterprises. Gatekeep has a mission and product line that is unique from GW. Gatekeep's competitors are also very different from those of its parent, and the subsidiary markets to a very different group of customers. As such, Gatekeep can be described as a(n) _____. a. product unit b. functional unit c. operational unit d. strategic business unit e. boston consulting group unit
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ANSWER: d
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The BCG matrix organizes along which of the following dimensions? a. Market share and profit b. Sales and market share c. Business growth rate and market share d. Business growth rate and profit e. Sales and profits
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ANSWER: c
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. Double Click, Inc. has a number of strategic business units. Their hand-held computer unit has a large market share in this rapidly growing industry. Their hand-held computer business would be classified as: a. a dog. b. a star. c. a question mark. d. a cash cow. e. stuck in the middle.
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ANSWER: b
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Which of these is true about the cash cow? a. It generates tremendous profits in a rapidly growing industry. b. It has a small market share in a rapidly growing industry. c. It has a small market share in a slow growth industry. d. It has a large market share in a slow growth industry. e. It is generally a dead business that should be divested.
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ANSWER: d
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The star has a: a. large market share in a rapidly growing industry. b. large market share in a slow growth industry. c. small market share in a rapidly growing industry. d. small share of a slow growth market. e. moderate market share in a slow growth industry.
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ANSWER: a
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Which of the following portfolio categories is made up of poor performers who command only a small share of a slow growth market? a. Star b. Cash cow c. Question mark d. Dog e. Cat
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ANSWER: d
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The question mark has a: a. large market share in a rapidly growing industry. b. large market share in a slow growth industry. c. small market share in a rapidly growing industry. d. small share of a slow growth market. e. moderate market share in a slow growth industry.
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ANSWER: c
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Which of these is true about the dog division? a. It has a large market share in a rapidly growing industry. b. It has a large market share in a slow growth industry. c. It has a small market share in a rapidly growing industry. d. It has a small share of a slow growth market. e. It has a moderate market share in a rapidly growing industry.
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ANSWER: d
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Gillette operates numerous strategic business units. Most of its units in the personal care division have low market share but high business growth. These units are classified as _____. a. dogs b. question marks c. stars d. cash cows e. none of these
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ANSWER: b
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According to the BCG Matrix, which of the following exists in a mature, slow-growth industry, but is a dominant business in the industry, with a large market share? a. Question mark b. Asterisk c. Dog d. Star e. Cash cow
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ANSWER: e
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When an organization expands into a totally new line of business, it is implementing a strategy of: a. Related diversification b. Unrelated diversification c. Cross-functional diversification d. Product line diversification e. Industry diversification
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ANSWER: b
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Semway, a regional bank, recently announced that it would soon begin offering financial planning services. This is an example of which of these? a. Related diversification b. Unrelated diversification c. Cross-functional diversification d. Product line diversification e. Industry diversification
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ANSWER: a
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The purpose of _____ is to expand the firm's business operations to produce new kinds of valuable products and services? a. retrenchment b. diversification c. liquidation d. cash cow e. internal growth
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ANSWER: b
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Which of the following strategies refers to moving into a new business that is related to the company's existing business activities? a. Horizontal integration b. Vertical integration c. Unrelated diversification d. Related diversification e. Strategic partnership
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ANSWER: d
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All of the following are Porter's competitive forces except: a. differentiation. b. bargaining power of buyers. c. bargaining power of suppliers. d. threat of substitute products. e. potential new entrants.
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ANSWER: a
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. Which of the following is NOT one of Porter's competitive forces? a. Potential new entrants b. Bargaining power of suppliers c. Bargaining power of stockholders d. Bargaining power of customers e. Rivalry among competitors
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ANSWER: c
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Which of the following strategies involve an attempt to distinguish the firm's products or services from others in the industry? a. Cost leadership b. Differentiation c. Focus d. Internal growth e. Liquidation
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ANSWER: b
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Which strategy can be profitable for an organization when customers are loyal and willing to pay high prices? a. Focus b. Globalization c. Overall cost leadership d. Differentiation e. Liquidation
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ANSWER: d
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The _____ strategy involves seeking efficient facilities, cutting costs and using tight cost controls to be more efficient than competitors. a. cost leadership b. differentiation c. focus d. internal growth e. liquidation
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ANSWER: a
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The human resource department at Paula's Powerwheels is implementing a number of functional level strategies. These strategies include focusing on ways to retain and develop a stable work force and ways to improve efficiency in the organization. These functional-level strategies are consistent with which of the following strategies? a. Cost leadership b. Differentiation c. New product development d. New market development e. Divestiture
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ANSWER: a
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With a(n) _____ strategy, the organization concentrates on a specific regional market or buyer group. a. cost leadership b. differentiation c. focus d. internal growth e. liquidation
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ANSWER: c
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Mingles, Inc. concentrates its efforts on its target market of 18 to 25 year olds. It is using a(n) _____ strategy. a. focus b. differentiation c. cost leadership d. multidomestic e. universal strategy
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ANSWER: a
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General Products Inc. is a small clothing designer and manufacturer located in the United States. A vast majority of the company's revenues comes from U.S. sales, although about ten percent of the company's revenue come from sales to Canada. General Products Inc. can best be described as using which global corporate strategy? a. Globalization strategy b. Multidomestic strategy c. Export strategy d. Transnational strategy e. Domestic strategy
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ANSWER: c
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FLY Industries is a global conglomerate company headquartered in the United States that does business in over fifty countries. The company seeks to balance global efficiencies and local responsiveness by hiring locally as well as from home. It can best be described as using which global corporate strategy? a. Globalization strategy b. Multidomestic strategy c. Export strategy d. Transnational strategy e. Domestic strategy
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ANSWER: d
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If ABC International has standardized its product line throughout the world it is pursuing a: a. multidomestic strategy. b. retrenchment strategy. c. diversity strategy. d. globalization strategy. e. liquidation strategy.
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ANSWER: d
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The assumption that a single global market exists would lead to a: a. globalization strategy. b. multidomestic strategy. c. diversity strategy. d. domestic strategy. e. liquidation strategy.
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ANSWER: a
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Which of the following strategies would be appropriate when the need for both national responsiveness and global integration is low? a. Globalization b. Multidomestic c. Export d. Transnational e. Import
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ANSWER: c
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_____ refers to the modification of product design and advertising strategies to suit the specific needs of individual countries. a. Domestic strategy b. Global strategy c. Transnational strategy d. Multidomestic strategy e. Market design strategy
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ANSWER: d
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Which of the following refers to a strategy that combines global coordination to attain efficiency with flexibility to meet specific needs in various countries? a. Domestic strategy b. Global strategy c. Transnational strategy d. Multidomestic strategy e. Region design strategy
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ANSWER: c
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Some people argue that _____ is the most difficult and most important part of strategic management. a. SWOT analysis b. strategic formation c. strategic execution d. strategic analysis e. strategy evaluation
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ANSWER: c
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Persuasion, motivation, and changes in cultures and values are examples of which of the dimensions used to implement strategy? a. Leadership b. Structural design c. Human resources d. Information and control systems e. Compensation
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ANSWER: a
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Which of the following is NOT one of the tools used for putting strategy into action? a. Visible leadership b. Diversification c. Human Resources d. Communication e. Clear roles and accountability
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ANSWER: b
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People need to understand how their individual actions can contribute to achieving an organizational strategy. This can be accomplished by delegating authority, creating teams, and defining roles. These actions are part of which tool for putting strategy into action? a. Visible leadership b. Candid communication c. Human resources d. Clear roles and accountability e. Bargaining power of employees
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ANSWER: d
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The _____ function recruits selects, trains, transfers, promotes, and lays off employees to achieve strategic goals. a. production b. leadership c. information and control systems d. structural design e. human resource
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ANSWER: e
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Transnational Strategy
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Think Global act local
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Globalization Strategy
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Think Global Act Global
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Multi domestic Strategy
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Think Local Act- Local
