Senior Seminar Test 2

If total fixed costs are $10,000, variable costs per unit are $5, and the price per unit is $15, what is the breakeven quantity?

1,000

What type of strategies would you recommend when a firm's SPACE Matrix directional vector has the coordinates (-2, +3)

Defensive

What refers to a strategy of seeking ownership of, or increased control over a firm's competitors?

Horizontal integration

______________ ties all business functions together and provides the basis for all managerial decisions.

Information

Each of the nine techniques included in the strategy formulation framework rely on the use of

Intuition and analysis

Which strategy seeks to increase market share for present products or services in present markets through greater marketing efforts?

Market penetration

Which function of management includes areas such as job design, job specifications, job analysis, and unity of command

Organizing

Which section of the SWOT Matrix involves matching internal strengths with external opportunities?

The SO cell

Which ratio is calculated by dividing profits before interest and taxes by total interest charges?

Times-interest-earned ratio

Many more firms have failed at ________ than have succeeded due to the immense challenge of managing businesses in many industries rather than in a single industry.

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

Which of the following is NOT a guideline for when an organization should use an unrelated diversification strategy?

When exiting markets for an organization's present products are not yet saturated

Under which condition would a differentiation strategy be especially effective?

When technological change is fast paced and competition revolves around rapidly evolving product features.

The two internal dimensions represented on the axes of the SPACE Matrix are

competitive position and financial position

All of the following are basic duties of management EXCEPT

consolidating

All of the following are principles of good organizational governance, as established by Businessweek , EXCEPT

at least three directors are current or former company executives

Websites that sell products directly to consumers are examples of which type of strategy?

forward integration

The act of oversight and direction for an organization is referred to as

governance

Retrenchment would be an effective strategy when an organization

is plagued by inefficiency, low profitability, poor employee morale and pressure from stockholders to improve performance.

Which of the following is the first step in developing an IFE Matrix?

listing key internal strengths and weaknesses