Ch 5 Mindtap

Which of the following are drawbacks to using a portfolio strategy such as the Boston Consulting Group matrix? Check all that apply. a. Classifying an organization as a cash cow can weaken a strong performer. b. Acquiring unrelated businesses can damage a company's profitability. c. Managers rarely correctly handle companies that are classified as stars. d. Managers rarely get accurate information on a company's market share or market growth.

a. Classifying an organization as a cash cow can weaken a strong performer. b. Acquiring unrelated businesses can damage a company's profitability.

Walgreen Co., a large U.S. drugstore chain, expanded its operations in Europe by purchasing 45% of the international Alliance Boots conglomerate. 1._________________ Agilent went through repeated rounds of downsizing from 2002 to 2012. 2. ________________ a. Growth b. Retrenchment c. Stability

1. a. Growth 2. b. Retrenchment

1. | Star | Question Mark 2. | Cash Cow | Dog x | 3. | 4. 1. a. High 1. b. Low 2. a. Market Growth Rate 2. b. Relative Market Share 3. a. Low 3. b. High 4. a. Relative Market Share 4. b. Market Growth Rate

1. a. High 2. a. Market Growth Rate 3. b. High 4. a. Relative Market Share

According to Michael Porter, YouTube's ability to name the price it will pay to video providers is an example of 1.______________________, which in this case is 2.____________. 1. a. potential new entrants 1. b. that bargaining power of buyers 1. c. the bargaining power of suppliers 1. d. the threat of substitutes 2. a. low 2. b. high

1. b. that bargaining power of buyers 2. b. high

Step 1 Assess Need for Strategic Change - 1. - Look for strategic dissonance Step 2 Conduct Situational Analysis - Internal -- Strengths & Weaknesses -External -- 2. & Threats Step 3 Choose Strategic Alternatives Risk-avoiding strategies <- 3. -> Risk-seeking strategies a. Opportunities b. Strategic reference points c. Avoid competitive inertia

1. c. Avoid competitive inertia 2. a. Opportunities 3. b. Strategic reference points

When referring to a SWOT analysis, the letter T stands for 1.____________, and it refers to factors that are 2._____________ to the organization. 1. a. tactics 1. b. time 1. c. targets 1. d. threats 2. a. internal 2. b. external

1. d. threats 2. b. external

Which of the following strategies is Donato more likely to adopt for his business? A. Breaking away from his previous work and developing an app using the new programming language as soon as it is available B. Continuing to develop mapping apps using existing programs

A. Breaking away from his previous work and developing an app using the new programming language as soon as it is available

A company that uses tight cost controls is likely to use a low-cost leadership strategy. A. True B. False

A. True

Differentiation strategies can reduce the bargaining power of large buyers. A. True B. False

A. True

Donato is likely to see the introduction of a new programming language as ____________. A. an opportunity B. a threat

A. an opportunity

Donato's _____________ lies in the clean and effective interface of his product. A. distinctive competence B. core capability

A. distinctive competence

Diversification is most frequently associated with a strategy of _______________________. A. growth B. stability C. retrenchment

A. growth

Considering all of the factors listed in the preceding SWOT analysis question, what strategy would make the most sense for the Giants in the upcoming season? A. Trade the Giants' young pitchers to another team for minor-league prospects who aren't ready for the major league. B. Keep the Giants intact and do not hire any new players because the team was good enough to win the World Series. C. Sign a free-agent outfielder to bolster the current roster and sign the young pitchers to long-term contracts. D. Assume that as the players age, they will continue to produce at their current levels.

C. Sign a free-agent outfielder to bolster the current roster and sign the young pitchers to long-term contracts.

When conducting a SWOT analysis, budgets, ratios, and sales reports can be used to identify: A. Environmental opportunities and threats B. Company opportunities and threats C. Environmental strengths and weaknesses D. Company strengths and weaknesses

D. Company strengths and weaknesses

Which of the following factors should be classified as a strength for the team? A. A number of free-agent outfielders are available for signing by the Giants this year. Many of them have better statistics than the current team members. B. During the off-season, the Los Angeles Dodgers signed players whose skills match or exceed those of the Giants. C. Several Giants players have had extraordinary seasons, but now some of them are not playing as well as they did when they were younger. D. The Giants' starting pitchers are exceptionally strong and young and can potentially keep the Giants at the top of the league for years to come.

D. The Giants' starting pitchers are exceptionally strong and young and can potentially keep the Giants at the top of the league for years to come.

This image (person with the world on shoulders, person sitting on the world) illustrates the influence of _________ on the strategy development process. A. core capabilities B. distinctive competencies C. strategic dissonance D. strategic reference points

D. strategic reference points

The biggest challenge that Donato faces in assessing the need for strategic change is _____________. A. strategic dissonance B. competitive inertia

A. strategic dissonance

When using a focus strategy, a company tries to create a product that will appeal to the broadest possible customer base. A. True B. False

B. False

Which of the following divisions would you take profits from and continue to run? A. Cargo inspection B. Railroad loading C. Freight forwarding D. Shipping

B. Railroad loading

When competitive rivalry, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers, and the number of new entrants into a business are all low, a business is ________ likely to be successful. A. less B. more

B. more

Pretend that you own a small coffee shop. You have decided that this year is a good time to grow your business, and you have chosen to do so by acquiring a laundromat next door to you. This is an example of _______________. A. vertical integration B. unrelated diversification C. related diversification

B. unrelated diversification

In-n-Out Burger acquires an independently owned chicken fast food chain. This is an example of __________________. A. vertical integration B. diversification C. related diversification D. unrelated diversification

C. related diversification

When a company purchases another business that does something different from what the purchasing company does, the purchasing company is using a strategy of _____________________. A. vertical integration B. related diversification C. unrelated diversification

C. unrelated diversification