Chapter 5
13) Once SWOT analysis is complete, managers ________ to address the issues that came up during the analysis. A) formulate strategies B) implement strategies C) evaluate strategies D) eliminate strategies
A
18) A sneaker company creating its own stores where it sells only its own brand is an example of which of the following? A) forward vertical integration B) backward horizontal integration C) forward horizontal integration D) reverse vertical integration
A
25) A cost leadership competitive strategy focuses on which of the following? A) efficiency B) innovation C) elegant design D) luxury
A
26) A company with a differentiation strategy focuses on making its products or services ________. A) unique and special B) similar to its competitors C) familiar D) affordable
A
9) Which term refers to an organization's capital, workers, and patents? A) resources B) capabilities C) abilities D) core competencies
A
12) SWOT analysis combines ________. A) a company's mission with its goals B) external and internal analyses C) a company's philosophy with its ethics D) profit with productivity
B
14) The three different types of strategies that managers implement are ________. A) corporate, private, functional B) corporate, competitive, functional C) long-term, short-term, public D) competitive, noncompetitive, corporate
B
16) Growth strategies include ________. A) diversification, concentration, integration, stabilization B) vertical integration, horizontal integration, concentration, diversification C) vertical integration, horizontal integration, lateral integration, horizontal concentration D) integration, allocation, horizontal diversification, vertical diversification
B
20) Two movie studios combining to form one larger studio is an example of which of the following? A) forward vertical integration B) horizontal integration C) backward vertical integration D) diversification
B
7) The first step in the six-step strategic management process is to ________. A) analyze the organization's strengths and weaknesses B) identify the organization's mission C) identify strategies to reach the organization's goals D) analyze the opportunities the organization has
B
8) An internal analysis, the third step of the strategic management process helps identify ________. A) opportunities and threats B) resources and capabilities C) opportunities and possibilities D) values and philosophy
B
17) A salad dressing company that buys a large olive grove to produce olive oil is practicing which of the following? A) concentration B) forward vertical integration C) backward vertical integration D) horizontal integration
C
10) An organization's resources identify ________. A) how the organization gets things done B) where the organization operates C) when the organization operates D) what the organization has
D
11) An organization's capabilities identify ________. A) what the organization knows B) who the organization is C) assets that the organization can rely on D) what the organization can do
D
15) Which of the following makes up the three main types of corporate strategies? A) growth, vertical integration, horizontal integration B) growth, retrenchment, renewal C) renewal, retrenchment, diversification D) growth, stability, renewal
D
19) In forward vertical integration, a company becomes its own ________, while in backward vertical integration, the company is its own ________. A) supplier; distributor B) supplier; customer C) distributor; monitor D) distributor; supplier
D
21) When Google purchased YouTube, a company that featured different, but related products, Google was engaging in which of the following? A) concentration B) forward vertical integration C) backward vertical integration D) diversification
D
22) Two companies that both sell fine timepieces combine. What are they doing? A) diversifying, because they both sell the same products B) integrating vertically, because they both sell the same products C) integrating vertically in a backward direction, because they are sharing distribution D) integrating horizontally, because they both sell similar products
D
23) A company whose goal is to retain its ideal size and market share is employing which kind of strategy? A) noncorporate B) growth C) renewal D) stability
D
1) The first step in the strategic management process is analyzing the external environment.
F
2) An external analysis will identify the threats to a company's well-being, but not opportunities for success.
F
5) A company with a stability strategy will plan to dramatically increase market share in a highly competitive market. (TRUE/ FALSE)
F
6) Innovation and super-high quality are typically the keys to a cost-leadership strategy.
F
3) SWOT analysis includes the identification of an organization's strengths, weaknesses, opportunities, and threats. (TRUE/ FALSE)
T
4) A corporate strategy may be a growth strategy, a stability strategy, or a renewal strategy.
T
24) To address limited, short-term problems, a company is most likely to employ a ________ strategy
renewal