Bus Policy Quiz 5 & 6

Which of these is a limitation of QSPM?

It requires intuitive informed judgements

Which strategy would be effective when the stockholders of a firm can minimize their losses by selling the organization's assets?

Liquidation

Which of the following is NOT one of the steps involved in constructing a SWOT Matrix?

List the firm's external weaknesses

Selling all of a company's assets, in parts, for their tangible worth is called

liquidation

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

governance

When a domestic company first begins to export to India, it is an example of

market development

Mergers and acquisitions are created for all of the following reasons EXCEPT to

shift company profits to the United Stated from countries with low corporate tax rates

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

strategy

Amazon's start of rapid delivery services in some U.S. cities is an example of which type of strategy?

Forward integration

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

Forward integration

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

Horizontal integration

Firms located in which quadrant of the Grand Strategy Matrix are in an excellent strategic position?

I

Although a firm positioned in Quadrant _____ of the Grand Strategy Matrix is in a growing industry, it is unable to compete effectively and needs to determine why the firm's current approach is ineffective and how to best change to improve competitiveness.

II

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

The SO cell

What is the highest number of strategies that can be examined at one time wit the QSPM?

There is no limit

Which strategies aim at improving internal weaknesses by taking advantage of external opportunities?

WO

Which strategies are defensive tactics directed at reducing internal weaknesses and avoiding external threats?

WT

When the private equity (PE) firm Clayton, Dubilier & Rice Bridal from the PE firm Leonard Green & Partner LP this is was an example of

a secondary buyout

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

In the BCG Matrix, a division with a high relative market share position in a low-growth industry can be described as a

Cash Cow

The Family Farmer Bankruptcy Act of 1986 created which of the major types of bankruptcy?

Chapter 12

Which chapter of the bankruptcy code applies to municipalities?

Chapter 9

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

Conservative

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?

Divestiture

Which term refers to selling a division or part of an organization?

Divestiture

Which level of strategy is most likely NOT present in small firms?

Divisional

A pasta manufacturer's purchase of some pet food brands is an example of

unrelated diversification

Yum Brands owns

virtually all of its outside-U.S. restaurants.

Backward integration is effective in all of these cases EXCEPT

when the advantages of stable prices are not particularly important

Which analytical tool determines the relative attractiveness of various strategies based on the extent to which key external and internal critical success factors are capitalized upon or improved?

Quantitative Strategic Planning Matrix (QSPM)

Which matrix is included in the decision stage of the strategy formulation framework?

Quantitative Strategic Planning Matrix (QSPM)

Which strategy-formulation technique reveals the relative attractiveness of alternative strategies and thus provides an objective basis for selecting specific strategies?

Quantitative Strategic Planning Matrix (QSPM)

Which strategy is effective when new, but unrelated, products could be offered at highly competitive prices?

Related diversification

Which board of director's duty falls under the category of control and oversight over management?

Select the CEO

Forward integration would be an appropriate strategy for which of the following types of divisions in the Boston Consulting Group (BCG) Matrix

Star

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

outsourcing

What principle is based on the belief that the true measure of a really good strategist is the ability to solve problems?

Managing by crisis

Gap's opening of its first five stores in China is an example of which type of strategy?

Market development

According to the Grand Strategy Matrix, which strategy is recommended for a firm with rapid market growth and a strong competitive position?

Market penetration

Which of these is NOT a SPACE Matrix quadrant?

Offensive