CH 8 Quiz

_______ is a corporate-level strategy in which a company expands its business operations into a new industry that produces inputs for the company's products.

Backward vertical integration

Eastern Region Vice President Goodall works with her team of sales managers to develop a _______ plan, which defines the strategies, goals, and structure associated with achieving the company's objectives in the Eastern region of the United States.

business-level

The plastics division managers of a packaging company develops a _______ strategy to outline how it will compete against competitors

business-level

Pinnacle Financial Services managers meet annually to create a list of potential future complications and plan how to respond to each possibility. Pinnacle is practicing _______ planning.

contingency

A local bike shop offers free tune-ups and simple repairs for any bike purchased there and even provides free pickup and delivery service for local customers. The shop is able to provide these exclusive services by selling its bikes at a premium price. The shop is following a _______ strategy.

differentiation

A(n) _______ strategy is selling the same standardized product and using the same basic marketing approach in each national market.

global

There is constant, fierce competition between telecommunication companies due to the continuous advances in mobile technology and a wide range of customer tastes. This is called

hypercompetition.

A _______ is a type of strategic alliance characterized by the creation of a new organization where ownership is shared by two or more companies.

joint venture

A technology company decides to redesign key aspects of its products to better leverage the same components and reduce manufacturing overheads. These savings will then facilitate price reductions. What strategy is the company pursuing?

low-cost

In order to cater to local tastes and culinary traditions, a well-known restaurant chain offers customized versions of its menu in different countries. This is an example of a(n) _______ strategy.

multidomestic

A _______ plan is generally reviewed and amended in conjunction with a company's annual financial budget cycle to take into account changing conditions in the external business environment.

rolling

A multidomestic company identifies a risk that regulations in some national markets will likely change over time. Such changes could impact product design and distribution in each market and have varying impacts on the company's financial success. What technique would best address the possible impacts of this risk when formulating strategic plans?

scenario planning

The organizers of an upcoming festival conduct a meeting to discuss the steps that would be taken in the event of various weather or community events that may impact the festival. This activity is an example of _______ planning.

single-use

Within 30 days of receiving a gift valued over $50 from a client, sales representatives in the company are required to submit a written disclosure. This is an example of a

standard operating procedure.

The CEO of Blake's company effectively motivates employees by actively engaging them in her vision of the company's goals and what she believes they can achieve in the industry. The CEO exhibits _______ skills.

strategic leadership

A large pharmaceutical company decides to reduce the price of a medication to encourage physicians to continue prescribing it as generic brands have entered the market. According to the five forces model, which competitive force is the company addressing?

threat of substitute products

The airlines sold fewer tickets to business travelers during the "Great Recession" due to more companies using video conferencing software to save money. According to the five forces model, this type of threat is called the

threat of substitute products.

During a SWOT analysis, Sweet Treats identifies a growing number of local businesses now offering bakery items to customers. This finding would be characterized as a(n)

threat.

According to Henri Fayol, a plan has _______ when the management team develops a single, well-researched, and effective plan.

unity

Monroe's Machines recently expanded its business by purchasing a bookstore chain. This business expansion is an example of

unrelated diversification.

Pursuing international expansion through _______ exhibits the most risk and is the most expensive due to the high level of foreign investment required.

wholly owned foreign subsidiaries

A furniture company establishes production operations in foreign countries to sell its products in those regions. The operations perform as separate entities without any local direct involvement. These production operations are considered

wholly owned foreign subsidiaries.