Strategic Management Chapter 5
Selling all of a company's assets in parts for their tangible worth is called
liquidation
Long-term objectives are needed at which level(s) in an organization?
All of the above
Which strategy should be implemented when a division is responsible for an organization's overall poor performance?
Divestiture
Which term refers to selling a division of an organization?
Divestiture
Divestiture is selling all of a company's assets, in parts, for their tangible worth.
False
Horizontal integration is an appropriate strategy when the competitors of an organization are doing poorly.
False
There are four basic types of diversification: concentric, conglomerate, forward and backward.
False
Microsoft opening its own retail stores is an example of which type of strategy?
Forward Integration
Websites that sell products directly to consumers are examples of which type of strategy?
Forward Integration
Burger King opening its first restaurant in Japan is an example of which type of strategy?
Market Development
Which strategy seeks to increase market share of present products or services in present markets through greater marketing efforts?
Market Penetration
Adding new, related products or services for present customers is called
Related Diversification
Smithfield Foods laying off 1,800 employees, closing 6 of its 40 plants, and cutting production by 10 percent in 2009 in efforts to stop the liquidity drain on the firm is an example of
Retrenchment
A strategy of seeking ownership or increased control of a firm's suppliers is backward integration.
True
Franchising is an effective means of implementing forward integration.
True
Gaining ownership or increased control over distributors or retailers is called forward integration strategy.
True
Horizontal integration is seeking ownership or increased control over competitors.
True
Market development includes introducing present products into new geographic areas.
True
Market penetration, market development, and product development are intensive strategies.
True
Objectives provide direction and allow for organizational synergy.
True
