Management 371 2nd Energizer (CH. 4, 5, 6.)

According to Milton Friedman, the primary goal of business is to:

Make profits.

The Coca-Cola Company acquired Honest Tea Company, a producer of bottled iced tea beverages. This is an example of:

Related Diversification.

ABC company wished to acquire EFG company. An analysis of the merger passed the better-off test but failed the ownership test. The managers of ABC company should:

Seek an alternative arrangement with EFG, such as a strategic alliance.

Supply-side economies of scale arise when:

A firm manufactures products or services in high volumes.

________ costs refer to the costs a firm incurs to coordinate activities between its business units.

Administrative.

A candy company purchases sugar plantations to guarantee its own supply of sugar. This is an example of:

Backwards vertical integration.

Inside Patagonia, there is a culture that encourages innovation and risk taking. Employees are encouraged to experiment with products and fabrics to produce better designs. In addition, Patagonia encourages employees to leave work early to surf or rock climb. Patagonia is likely using a:

Differentiation Strategy.

Z-coffiz charges much higher prices for a cup of coffee than its competitors. Z-coffiz is able to do this because it positions itself to be selling an experience, rather than merely a cup of coffee. Which of the following aspects of a firm's strategy does this describe?

Differentiation.

Which of the following refers to the cost savings achieved when the large volume of a product manufactured by a firm enables it to reduce per-unit cost?

Economies of Scale.

Which of the following statements is true about Porter's 5-Forces Model?

Every industry and market is different in terms of who has the power in the buyer-seller relationship.

A cosmetics company owns a patent for a particular kind of shampoo, which is a bestseller in the market. It enables the firm to extract a high level of discretion over product pricing. The patent for the shampoo is an example of a firm's ________ resources.

Intangible.

Strategies that combine elements of multinational and global strategies by using foreign subsidiaries to produce and distribute products are known as:

International Strategies.

Which of the following statements is true about strategy formulation?

Managers should engage in environmental scanning on an ongoing basis.

The distinguishing factor between unrelated and related diversification strategies is that a firm using unrelated diversification strategy:

Manages several businesses with no reasonable connection.

The scope of corporate-level strategy focuses on the:

Markets and businesses in which the firm will compete.

The process of identifying how a firm can best align its resources to carve out a defensible position in the marketplace is known as:

Strategy Formulation.

CB company lowered its price temporarily, then tried to differentiate its product, then tried to appeal to a niche group. CB company is:

Stuck in the middle.

Many people in large cities are starting to use Uber to find rides. The taxi industry in these cities is facing:

The threat of substitutes.

A firm can pass the better-off test in determining the viability of diversification when:

The total competitive advantage is above and beyond what the two businesses could achieve independently.

"Within five years, we will be the top-rated boat tour company in Central Florida, doubling the size of our fleet and achieving 100% seating capacity with every excursion."

Vision.