mgmt464 t3 ch8

Which type of pricing attempts to hasten market development and offers the pioneer the opportunity to utilize the experience curve and gain market share and dominate the industry?

penetration pricing

A recent trend in information systems strategy is

practicing follow the sun management

When Colgate-Palmolive and Unilever take a successful product that they marketed in one part of the world and market it elsewhere, they are following a market development strategy.

True

The flow of products into and out of the manufacturing process is a factor when developing a ________ strategy.

logistics

A company which has invested so heavily in a particular strategy that it will not consider a change in this strategy even if it is not successful, would be an example of which strategy to avoid?

losing hand

Leveraged buyouts are also referred to as

management buyouts

The type of marketing strategy in which a company captures a larger share of an existing market for current products through market saturation or market penetration or develops new markets for current products is called

market development

The pricing, selling, and distributing of a product is referred to as a(n) ____ strategy.

marketing

When Dell Computer's customers use the internet to design their own computers, this demonstrates which manufacturing strategy?

mass customization

Which of the following is NOT one of the major outsourcing errors that should be avoided?

micromanaging the outsourced activity to maintain control

The purchasing strategy in which the purchasing company orders a particular part from several vendors is

multiple sourcing

When Intel opened four small-scale research facilities adjacent to universities to promote the cross-pollination of ideas, they were using which approach to R&D?

open innovation

When a company determines how and where a product or service is to be manufactured, the level of vertical integration in the production process, the deployment of physical resources and relationships with suppliers, the company is developing its ____ strategy

operations

Purchasing a product or service from an outside contractor that had been previously provided internally is called

outsourcing

The purchasing strategy in which two suppliers are the sole suppliers of different parts, but are also the backup suppliers for each other's parts is

parallel sourcing

Which type of pricing takes advantage of the demand curve while the product is still novel and competitors are few?

skim pricing

The concept of ________ was taken one step further in JITII, in which vendor sales representatives usually have desks next to the purchasing company's factory floor, attend production status meetings, visit the R&D lab, and analyze the purchasing company's sales forecasts.

sole sourcing

A company which imitates the products of competitors is referred to as a(n)

technological follower

A company which pioneers an innovation in called a(n)

technological leader.

A flexible manufacturing system is defined by the text as

the grouping of parts into manufacturing families to produce a wide variety of mass-produced items.

A popular financial strategy in which a company is acquired in a transaction financed largely by debt · eventually paid off with money generated from the acquired company's operations or by sale of its assets is

the leveraged buyout

When considering acceptable alternative straategies, the most important criterion is the ability of the proposed strategy to deal with...

the specific strategic factors developed in the S.W.O.T. analysis.

A study of 30 firms revealed that outsourcing can lead to a ________ percent reduction in costs.

9

As it relates to operations, AMT stands for

Advanced Manufacturing Technology

The automobile industry is currently experimenting with the strategy of mass customization in which pre-assembled sub-assumblies are delivered as they are needed to a company's assembly line workers.

False

The continuous improvement system was developed in China.

False

The follow-the-moon management philosophy allows project team members living in one country to pass their work to team members in another country in which the work day is just beginning.

False

The importance of sole sourcing was supported by Michael Porter to obtain high supplier quality.

False

When the Kellogg Company changed to a push strategy, they spent more money on consumer advertising designed to build brand awareness so that shoppers will ask for the products.

False

Which of the following is NOT a goal of financial strategies?

Institute a new product development plan to generate profit potential.

Two suppliers are the sole suppliers of two different parts, but they are also backup suppliers for each others parts in parallel sourcing.

True

Continuous improvement is an operations concept developed in

Japan

Which one of the following is NOT true of risk?

Managers who own a significant amount of stock in their firms are less likely to engage in risk-taking actions.

The strategy that deals with product and process innovation and improvement is known as a ________ strategy.

R&D

"The customer is always right" is an example of a policy in Nordstom's.

True

A financial strategy examines the financial implications of corporate and business-level strategic options and identifies the best financial course of action.

True

Chevron uses the real-options approach for bidding on petroleum reserves.

True

Corporate scenarios are pro forma balance sheets and income statements that forecast the effect each alternative strategy and its various programs will likely have on division and corporate return on investment.

True

Each business unit has its own set of departments, each with it own functional strategy.

True

Equity financing is preferred for related diversification while deby financing is preferred for unrelated diversification.

True

Even the most attractive strategic alternative might not be selected if it is contrary to the needs and desires of important top managers.

True

Fujitsu demonstrated a strategy to avoid when it imitated IBM's strategy in 1990.

True

If the strategy is incompatible with the corporate culture, the liklihood of its success it very low.

True

In a leveraged buy-out, the acquireed company, in effect, pays for its own acquisition.

True

Logistics strategy deals with the flow of products into and out of the manufacturing process.

True

Penetration pricing attempts to hasten market development and offers the poineer the opportunity to use the experience curve to gain market share with a low price and dominate the industry.

True

Risk is composed not only of the probability that the strategy will be effective, but also of the amount of assets the corporation must allocate to that strategy and the length of time the assets will be unavailable for other uses.

True

Sara Lee Corporation uses the line extension strategy when they put the Sara Lee name on various new food products.

True

The key to outsourcing is to purchase from outside only those activities that are not key to the company's distinctive competencies.

True

The orientation of the functional strategy is dictated by its parent business unit's strategy.

True

There is mounting evidence that when an organization is facing dynamic environment, the best strategic decisions are arrived through consensus when everyone agrees on one alternative (TF)

false

If a company wishes to be a technological follower and also pursue a differentiation strategy, the appropriate R&D strategy would be to

adapt the product or delivery system more closely to buyer needs by learning the leader's experience

The key to outsourcing is to purchase from the outside only those activities that

are not key to the company's distinctive competence.

A company which enters into a spirited battle for market share by cutting prices and offering special deals would be an example of which stategy to avoid?

arms race

According to Porter, to achieve a cost advantage by following the functional strategy of technological followership, a business unit should

avoided R&D costs through imitation.

A company may use which of the following trade promotions to "push" their products through the distribution system?

brand advertising

When Smith & Wesson puts its name on others' products like men's cologne, it is using which marketing strategy?

brand extension

Avon is an example of a company that demonstrated having a diverse workforces

can be a competitive advantage

Three trends are evident in logistics: outsourcing, the use of the Internet, and

centralization.

Using a market development strategy, a company can develop new products for existing markets or develop new products for new markets (TF)

false

When components are standardized and each machine functions like a job shop but is positioned in the same order as the parts are processed, this setup is known as

connected line batch flow

The technique used to help strategic managers choose among alternative choices by defining the task environment, developing a set of various forecasts, and using pro forma financial statements is called

corporate scenarios.

If a company wishes to be a technological leader and also maintain a cost advantage, the appropriate R&D strategy would be to

create low-cost ways of performing value activities.

When there are highly automated assembly lines making one mass-produced product using little human labor, this setup is called

dedicated transfer lines

An example of the use of the leader R&D functional strategy to achieve a low-cost competitive advantage is Dean Foods Company.(TF)

false

The attractiveness of a strategic alternative is seldom affected by its perceived compatibility with the key stakeholders in a corporations task environment

false

A company which keeps up by imitating a leading company's strategy while ignoring its own strengths and weaknesses is an example of which strategy to avoid?

follow the leader

Which strategy is developed to pull together the various activities and competencies of each department so that corporate and business unit performance improves and resource productivity is maximized?

functional strategy

According to an American Management Association survey, the most heavily outsources activities were

general and administrative

A company which has previously found great success pioneering an extremely successful product that is presently trying to turn another "long-shot" into a likely success would be an example of which strategy to avoid?

hit another home run

All of the following are benefits for a company to raising its debt levels EXCEPT

increase in shareholder value.

According to Porter, to achieve a differentiation competitive strategy by following the functional strategy of technological leadership a business unit should

innovate in other activities to increase buyer value.

When a company deals with obtaining raw materials, parts, and supplies needed to perform the operations function, the company is developing its ________ strategy.

purchasing

When a company spends a large amount of money on trade promotion in order to gain or hold shelf space in retail outlets, a company is using a _____ strategy.

push

Many companies have found that outsourcing logistics

reduces costs and improves delivery time

When a company exchanges 100 shares of stock worth $10 each for 50 shares worth $20 each, they are using

reverse stock split

An operation strategy determine how and where a product or service is to be manufactured, the level of vertical integration in the production process, the deployment of physical resources, and relationships with suppliers (TF)

true

Research indicates that the use of work teams leads to increased quality and productivity as well as higher employee satisfaction and commitment (TF)

true

Some executives show a self-serving tendency to attribute the firm's problems not to their own poor decisions, but to environmental events out of their control such as government policies or a poor economic climate. (TF)

true