MANA3335 Practice Test Ch. 3
According to the BCG matrix, which type of organization is not expected to grow substantially, even though it currently has a large share of the market?
*Cash cows
A small retail shop in the local community offers a wide variety of women's clothing at low prices. In order to be competitive with larger chains found at the mall, the store owner frequently works alone, and she has adjusted store hours to capitalize on busy days. What should this retail shop owner be pursuing as part of her general business-level strategy?
*Concentrating on reducing operating costs
Which type of planning process requires a manager to determine alternative courses of action that can be taken if the intended plan becomes inappropriate?
*Contingency
What is the set of strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets?
*Corporate-level strategy
Raj has empowered his senior managers and asked them to increase profitability by 20 percent over the next five years. What has Raj set for his senior managers?
*Strategic goal
Amina is working on developing and implementing ideas in order to take advantage of business opportunities and challenges in the market. Which skills will Amina need to use to approach those challenges and opportunities?
*Strategic management
Marah has been tasked with the job of outlining decisions about resource allocation, priorities, and action steps that are necessary to reach one of his company's strategic goals. What is Marah developing?
*Strategic plans
What is the method by which processes are operationalized or executed within the organization?
*Strategy implementation
In a SWOT analysis, how will the identification of strengths help to accomplish an organization's mission?
*By allowing the exploitation of skills and capabilities
When devising a new strategy, it is best to start with what?
*A SWOT analysis
What is a strategy?
*A comprehensive plan for accomplishing an organization's goals
Which strategy would Pepsi use to promote its Aquafina brand on the basis of its purity?
*Differentiation
Eli makes custom-made leather handbags and wallets in a small shop. He is known for his fine leather products and hand stitching, as well as the lifetime warranty he offers on his products. His items are expensive, and he has no desire to increase the size of his shop. What has Eli developed within his shop?
*Distinctive competence
In which type of strategy does an organization concentrate on a specific regional market, product line, or group of buyers?
*Focus
Which of the following is used to provide a source of motivation for an organization's employees?
*Goals
ZeroBreeze Inc. is an outerwear manufacturer that caters to a large customer base. In addition to the high volume of coats and jackets that it manufactures, the company sells light jackets for low prices. Many customers buy ZeroBreeze jackets because they are durable and inexpensive. Which of the following strategies is illustrated in the scenario?
*Overall cost leadership
What is a standing plan that specifies the organization's general response to a designated problem or situation?
*Policy
Olesia is managing the diversification of divisions for her organization. She wants to monitor how to engage and manage subsidiaries to maximize corporate performance. What should Olesia use to track this information?
*Portfolio management techniques
What is used to outline the organization's purpose, premises, values, and directions?
*The mission
Why do organizations have a difficult time focusing on weaknesses?
*They might indicate poor managerial skills.
Why do operational plans tend to be narrowly focused with short time horizons?
*They support tactical goals.
As part of Sushil's performance review, she was given a list of goals and objectives. How will her work on these goals affect her in the future?
*They will serve as a mechanism for performance evaluation.
Which of the following will help organizations successfully weather a crisis?
*Those with strong leadership
Why is it important to identify weaknesses in a SWOT analysis?
*To correct them
How can managers use information provided by the GE Business Screen to manage their various business opportunities more effectively?
*To determine asset allocation
Why is it important that a manager continuously monitor ongoing activities tied to a tactical plan?
*To ensure they achieve desired results
In the context of SWOT analysis, which of the following would be considered as an organization's strength?
*Unique reputation
In Pleasantville, JJ's Auto Repair is where most residents go for any type of car repair. JJ employs six knowledgeable mechanics and provides these car experts with ongoing training to continually expand their knowledge and skill sets. By maintaining exceptional capabilities at his shop, JJ is solidifying his _____.
*distinctive competence
The number of different businesses that an organization runs, and the extent to which these businesses relate to one another, is represented by _____.
*diversification
Curl Up and Dye is a local hair salon that has a steady clientele from the surrounding community. However, a new salon has just opened in the area, and some clients have mentioned that the new salon offers similar services at lower prices. Curl Up and Dye now needs to pursue a strategy that will _____.
*neutralize the impending threat
In the growth stage of the product life cycle, the _____.
*sales of the product increase
_____ plans are set by the board of directors and top management.
*Strategic
Pallavi knows that if she is able to achieve the goals set by her manager, she is likely to receive a bonus. In this case, what does the setting of goals serve as for Pallavi?
*A source of motivation
Most grocery stores carry a wide variety of national brands in addition to their own private label brands. The private label brands are often made by the same national brands they are competing with. Which type of strategy is a firm using when it creates a lower-priced private label brand in addition to its other, higher-priced brands?
*Cost leadership
The local dollar store sells a variety of products, all at $1 each. These items are no different than the products of other retail chains, but sizes are slightly smaller. In addition, the store is a little out of the way for most shoppers, but shoppers find the value worth the trip. In which way does the local dollar store compete with nearby retailers?
*Cost leadership
When a new line of organic salad dressing was launched, it was very successful. Competitors soon began to produce a similar product. What should the organization do to keep its competitive advantage?
*Develop strategies to slow the entry of competitors
Ozlem has just finished reviewing the new mission for his organization. What will this mission help to determine?
*Goals and plans
What does the BCG matrix use to evaluate an organization's set of businesses?
*Growth rate and market share
Mikel is a middle-level manager who is in the process of determining goals and objectives for his managers. He has set goals he feels are necessary to achieve the strategic goals given to him. Which of the following will these goals focus on?
*How to operationalize actions
As the plant manager, Eli is concerned with having enough employees to meet production needs and managing cash flow for a specific product. Which stage of the product life cycle is Eli likely managing?
*Introduction
Jewel often uses standing plans while managing inventory levels and ordering within her organization. Why are standing plans effective for this process?
*Inventory and ordering occur regularly.
When a firm identifies a weakness within its organization, what can it do to address that weakness?
*It can modify its mission.
In which stage of the product life cycle should an organization begin to search for new products or services as part of their strategy?
*Maturity
Lighthouse Cinema has enjoyed a successful history in the town of Battle Ridge, VA. The movie theater has remained a popular entertainment option for the surrounding area, but sales have been stagnant over the past few years. Which stage of the product life cycle is the theater in?
*Maturity
Using simple product design coupled with efficient high-volume manufacturing capacity may help a company achieve what?
*Overall cost leadership
Neal is the head of the marketing department. Under his guidance, marketing supervisors have developed a three-stage operating plan to support the organization's goals. They are planning an elaborate six-month campaign to distribute samples to a wide variety of retail and restaurant outlets for the purpose of increasing brand identity. Which type of single-use plan will Neal's department use to accomplish this goal?
*Program
Darien wants to introduce a new product within the organization's existing product line. Which type of plan should he use to do so?
*Project
Which is the most common type of diversification strategy for larger businesses in the United States?
*Related
The best strategies do all of the following EXCEPT what?
*Require resource deployment
Jolanta is determining how to distribute various resources in order to improve her organization's ability to compete in the market. What is Jolanta determining?
*Resource deployment
The exact description of how specific activities are to be carried out would be found in which type of plan?
*Rules and regulations
In order for a tactic to be successful, what must it include?
*Specific resources and time frames
Which type of a standing plan outlines the steps to be followed in particular circumstances?
*Standard operating procedure
Which of the following is developed for activities that recur regularly over a period of time?
*Standing plan
When developing tactical plans, what should be included so they can be properly executed?
*Step-by-step processes
Which type of plans are an organized sequence of steps designed to execute which type of plans?
*Strategic
How does strategy formulation relate to strategy implementation?
*Strategy formulation is the set of processes involved in creating an organization's strategies, whereas strategy implementation is the methods by which those strategies are operationalized.
Polani's company is a leader in the creation of mobile phone cases, and it recently has expanded to make cases for tablets and laptops. Polani's company is using related diversification. What is an advantage of this strategy for the firm?
*Synergy
Carduci Corporation is a food processing company that specializes in a complete line of artisan sausage products. The top leaders in the organization have established a strategy that involves increasing the marketing budget to grow sales. Neal is the head of the marketing department, and it is his job to develop a plan that flows from and is consistent with the strategic plan. What type of plan will Neal work to develop?
*Tactical
How do tactical plans differ from strategic plans?
*Tactical plans focus on people and action.
What are the skills and capabilities that do not enable an organization to choose and implement strategies that support its mission?
*Weaknesses
Tactical plans must flow from and be consistent with _____.
*a strategic plan
Organizational opportunities are:
*areas in the environment that may generate higher performance.
In Pleasantville, JJ's Auto Repair is where most residents go for any type of car repair. Inspired by his entrepreneurial son, JJ has decided to open a detailing shop on an adjoining property. If JJ elected to open an auto repair shop in the neighboring county, he would be expanding his _____.
*business scope
The market for mountain bikes, while large, is not expected to grow much more. Ruff'n'Tuff Bikes has a major share of that market. According to the BCG matrix, Ruff'n'Tuff Bikes is a _____.
*cash cow
The market for memory chips for electronic devices is growing at an incredible rate, and GloTech has the largest share of that market. According to the BCG matrix, GloTech is a _____.
*star
