mgmt470

A pasta manufacturer's purchase of some pet food brands is an example of backward integration. divestiture. retrenchment. unrelated diversification. forward integration.

unrelated diversification

In which situation would horizontal integration be an especially effective strategy? When an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for "tending substantially" to reduce competition When an organization competes in a slowing industry When decreased economies of scale provide major competitive advantages When an organization has neither the capital nor human talent needed to successfully manage an expanded organization When competitors are succeeding due to managerial expertise or having particular resources an organization possesses

When an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for "tending substantially" to reduce competition

The form of bankruptcy in which all the organization's assets are sold in parts for their tangible worth is Chapter 7. Chapter 8. Chapter 9. Chapter 11. Chapter 13.

7

The Boston Consulting Group (BCG) Matrix is designed specifically to enhance which type of firm's efforts to formulate strategies? Companies with more than one division Large companies Companies with annual sales greater than $1 million Companies with annual sales of less than $1 million All companies

Companies with more than one division

According to the comprehensive strategic-management model, which step immediately follows the establishment of long-term objectives? Developing vision and mission statements Performing external audits Performing internal audits Generating, evaluating, and selecting strategies Measuring and evaluating performance

Generating, evaluating, and selecting strategies

Firms located in which quadrant of the Grand Strategy Matrix are in an excellent strategic position? I II III IV V

I

Which stage of the strategy-formulation framework includes an IFE Matrix and the Competitive Profile Matrix? Input Matching Decision Penetration Research

INPUT

According to the Grand Strategy Matrix, organizations in which quadrant have a strong competitive position but are in a slow-growth industry? I II III IV V

IV

Which of the following is a limitation associated with a SWOT Matrix? Viewing every business as a Star, Cash Cow, Dog, or Question Mark is an oversimplification. Many businesses fall right in the middle of the matrix. It is a static assessment in time. Other variables besides relative market share position and industry growth rate in sales need to be considered. The matrix does not reflect whether or not various divisions or their industry are growing over time.

It is a static assessment in time.

Which matrix is included in the decision stage of the strategy formulation framework? A) Internal Factor Evaluation Matrix B) Quantitative Strategic Planning Matrix C) Boston Consulting Group Matrix D) Grand Strategy Matrix E) Strategic Position and Action Evaluation Matrix

QUANTITATIVE STRATEGIC PLANNING MATRIZ

Which strategy-formulation technique reveals the relative attractiveness of alternative strategies and thus provides an objective basis for selecting specific strategies? Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix Strategic Position and Action Evaluation (SPACE) Matrix Quantitative Strategic Planning Matrix (QSPM) Internal-External (IE) Matrix Grand Strategy Matrix

Quantitative Strategic Planning Matrix (QSPM)

In the Boston Consulting Group (BCG) Matrix, how would a division with a low relative market share position in a high growth industry be described? Question Mark Cash Cow Star Stuck-in-the-middle Dog

Question Mark

The match an organization makes between its internal resources and skills and the opportunities and risks created by its external factors can be defined as A) input. B) concept formulation. C) strategy. D) SWOT. E) weakness.

STRATEGY

What are the two external dimensions of the SPACE Matrix? Stability position and industry position Stability position and competitive position Industry position and competitive position Competitive position and financial position Financial position and industry position

Stability position and industry position

________ is NOT a strategy-implementation activity. Taking corrective actions Establishing annual objectives Devising policies Allocating resources Motivating employees

Taking corrective actions

The five major categories of variables known as external forces are: 1) economic forces, 2) social, cultural, demographic, and natural environment forces, 3) political, governmental, and legal forces, 4) technological forces and 5) competitive forces. True False

True

The major benefit of the Boston Consulting Group (BCG) Matrix is that it draws attention to the cash flow, investment characteristics, and needs of an organization's various divisions. True False

True

Which strategies are defensive tactics directed at reducing internal weaknesses and avoiding external threats? SO WO SW ST WT

WT

Under which condition would a cost leadership strategy be especially effective? When there are many ways to achieve product differentiation that have value to buyers When most buyers use the product in different ways When buyers incur high costs in switching their purchases from one seller to another When buyers are small and have little power to bargain down prices When the products of rival sellers are essentially identical and supplies are readily available from any of several eager sellers

When the products of rival sellers are essentially identical and supplies are readily available from any of several eager sellers

All of the following are principles of good organizational governance, as established by BusinessWeek, EXCEPT each director attends at least 75 percent of all meetings. the audit, compensation and nominating committees are made up solely of outside directors. each director owns a large equity stake in the company. at least three directors are current or former company executives. the CEO is not also the Chairperson of the Board.

at least three directors are current or former company executives.

The two internal dimensions represented on the axes of the SPACE Matrix are stability position and industry position. industry position and internationalization. internationalization and competitive position. competitive position and financial position. financial position and stability position.

competitive position and financial position.

Procter & Gamble's (P&G) sale of many of its brands in order to focus on its core brands is an example of which type of strategy? Related diversification Unrelated diversification Retrenchment Divestiture Liquidation

divestiture

An overly general mission statement that ________ could be dysfunctional. does not exclude any strategy alternatives encourages management creativity excludes all diversification endorses the consideration of feasible potential strategies allows for the generation and consideration of a range of alternative objectives

does not exclude any strategy alternatives

Amazon's start of rapid delivery services in some U.S. cities is an example of which type of strategy? Forward integration Backward integration Horizontal integration Related diversification Unrelated diversification

foward integration

The act of oversight and direction for an organization is referred to as corporate lawmaking. centralized control. organizational direction. establishing norms. governance.

goverance

Which strategy would be most appropriate when the distinctive competencies of two or more firms complement each other especially well? Conglomerate diversification Divestiture Joint venture Retrenchment Integration

joint venture

When a domestic company first begins to export to India, it is an example of horizontal integration. backward integration. forward integration. concentric diversification. market development.

mark development

Which strategy seeks to increase market share for present products or services in present markets through greater marketing efforts? Market penetration Forward integration Market development Backward integration Product development

market penetration

When companies are hired by other companies to take over functional operations such as human resources, information systems, payroll, accounting, or customer service, this is called marketing. outsourcing. licensing. franchising. divestiture.

outsourcing

Which strategy is effective when new, but related, products could be offered at highly competitive prices? Forward integration Related diversification Related integration Conglomerate diversification Unrelated diversification

related diversification

The historical trend of people moving from ________ has dramatically slowed. the Northeast to the Sunbelt the West to the Midwest the Northeast to the Midwest the Sunbelt to the West the West to the Northeast

the Northeast to the Sunbelt

First mover advantages refer to the benefits a firm may achieve by entering a new market or developing a new product or service prior to rival firms. True False

true

What occurs when two or more companies form a temporary partnership or consortium for the purpose of capitalizing on some opportunity? Retrenchment A joint venture Liquidation Forward integration Divestiture

a joint venture

Backward integration is effective in all of these cases EXCEPT when an organization competes in an industry that is growing rapidly. when an organization has both capital and human resources to manage the new business of supplying its own raw materials. when an organization needs to acquire a needed resource quickly. when the advantages of stable prices are not particularly important. when present suppliers have high profit margins.

when the advantages of stable prices are not particularly important.

Which of the following is NOT a reason joint ventures fail? Managers who must collaborate daily in operating the venture are not involved in forming or shaping the venture. The venture may not be supported equally by both partners. The venture may benefit the partnering companies but may not benefit the customers who then complain about poorer service or criticize the companies in other ways. Venture risk was minimized. The venture may begin to compete more with one of the partners than the other.

venture risk was minimized