Chapter 6 Practice Test- Part Two (Principles of Management)
You plan to expand your line of popular tablets by 50 percent in the forthcoming year, but you hesitate because you know you will have to triple your debt load to do it. You are struggling with the strategic problem of
Limited resources
When a product has been on the market for many years, such as the automobile, and its growth is slow at best, what stage of the product life cycle is it said to be in?
Maturity
Which of the following refers to a definition of an organization's fundamental purpose and its basic philosophy?
Mission
What term is used to describe a formal written declaration of the organization's mission that often includes the firm's philosophy, its primary products and markets, the intended geographic scope, and the nature of the relationships between the firm, its stakeholders, and society?
Mission statement
What name is given to the evaluation of the organization's internal strengeths and weaknesses and the opportunities and threats associated with the business's external environment?
SWOT analysis
When an organization sets out to evaluate a strategy that it has implemented, it must often rely on
Short-term indicators
Your new line of subcompact cars, the Satellite, is selling extremely well in an exploding market. Nonetheless, you plow more money into marketing it than any other car to stay ahead of your aggressive competitors, and this worries you. According to the Boston Consulting Group, the Satellite is a
Star
Which of the following characteristics relates to a business-level strategy?
The are of responsibility usually assigned to the divisional-level managers
Which of the following characteristics relates to the product life cycle?
The cycle of birth, growth, maturity, and decline of a product
Which of the following characteristics relates to tactical goals?
The intermediate goals of the firm, which are designed to stimulate action necessary for achieving the strategic goals
Which of the following characteristics describes cash cows?
Those business that tend to generate excess cash over what is needed for their continued growth due to their high market share in a slow-growing market
What term is used to describe the product life cycle stage characterized by dramatic increases in the product's market share?
Growth
One of the major advantages of the newer GE matrix for business portfolio assessment is that it
Gives organizations a basis for plotting strategy
"Improving people's lives by providing gas and electric services in a sustainable way- affordable, reliable and clean" is an example of
A mission statement
In n SWOT analysis, an ability or attribute that a company possesses that may give it a distinctive competence is called
A strength
Which of the following characteristics relates to contingency plans?
Alternate plans if certain organizational or environmental conditions change
In SWOT analysis, an environmental circumstance that is potentially beneficial for the firm is called
An opportunity
What name is given to a business strategy in which the strategic business unit offers a unique good or service to a customer at a premium price?
Differentiation
Which of the following refers to businesses that have only minimal profits or even losses due to their low market share in slow growing markets?
Dogs
What are conglomerates?
Firms that pursue unrelated diversification strategies
Which of the following is NOT a component of strategy?
Focus
After the organization has established a mission and goals and conducted a SWOT analysis, it can
Formulate a strategy
Which of the following refers to a separate division within a company that has its own mission, goals, strategy, and competitors?
strategic business unit (SBU)
As major corporations increase in size and complexity and become multi-business firms, they sometimes set up separate divisions within the company called
strategic business units
In stating a goal, the topic being addressed, such as profits, customer satisfaction, or product quality, is
the attribute sought
