Ch. 5 Multiple Choice

Which of these strategies is effective when the number of suppliers is small and the number of competitors is large?

Backward integration

Web sites that sell products directly to consumers are examples of which type of strategy?

Forward integration

What refers to a strategy of seeking ownership of, or increased control over a firm's competitors?

Horizontal integration

Which strategy would be most appropriate when the distinctive competencies of two or more firms complement each other especially well?

Joint venture

Selling all of a company's assets in parts for their tangible worth is called

Liquidation

Which strategy would be effective when the stockholders of a firm can minimize their losses by selling the organization's assets?

Liquidation

What principle is based on the belief that the true measure of a really good strategist is the ability to solve problems?

Managing by crisis

What principle is built on the idea that there is no general plan for which way to go and what to do?

Managing by subjectives

Hawaiian Airlines beginning to offer flights from Hawaii to Seoul, Korea, and Tokyo, Japan, rather than mostly flying to and from the U.S. mainland, 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

When two organizations of about equal size unite to form one enterprise, which of these occurs?

Merger

Which strategy is appropriate when an organization competes in an industry characterized by rapid technological developments?

Product development

Which strategy should an organization use if it competes in a no-growth or a slow-growth industry?

Related diversification

Which of the following is not a reason joint ventures fail?

Stakeholders from both partners are equally satisfied.

All of the following are listed among the "softer" factors in the Balanced Scorecard except:

Stockholder equity

According to Porter, which strategy offers products or services to a niche group of customers at the lowest price available on the market?

Focus- Low Cost

Starbucks reaching a deal with Green Mountain Coffee Roasters for that firm to sell packs of Starbucks Tazo-branded coffee and tea in their brewers is an example of which type of strategy?

Forward integration

Bankruptcy

can be an effective type of retrenchment strategy.

When companies take over functional operations of other firms, such as human resources, information systems, payroll, accounting, or customer service, this is called:

outsourcing

Retrenchment would be an effective strategy when an organization

is plagued by inefficiency, low profitability, poor employee morale and pressure from stockholders to improve performance.

When a domestic company first begins to export to India, it is an example of:

market development

All of the following are cooperative arrangements except:

marketing plans

Mergers and acquisitions are created for all of the following reasons except to:

increase the number of employees

Tyson Foods opening a manufacturing plan that makes diesel and jet fuel from chicken fat, beef tallow, and leftover food grease from the firm's meat-processing plants is an example of:

unrelated diversification

All of the following situations are conducive to market development except:

when an organization competes in a high-growth industry.

Backward integration is effective in all of these except:

when the advantage of stable prices are not important.

Which of the following is most likely not included in the functional level of a small company?

Department managers

Today McDonald's owns about _______ percent of its 32,800 restaurants.

20

There are annually more than 10,000 mergers in the United States that total more than

700 billion

What occurs when two or more companies form a temporary partnership or consortium for the purpose of capitalizing on some opportunity?

A joint venture

According to journalists' findings, what is a serious obstacle for many small business owners?

A lack of strategic-management knowledge

What kind of strategy is retrenchment?

A turnaround or reorganization strategy

Long-term objectives are needed at which level(s) in an organization?

All of the above

The Family Farmer Bankruptcy Act of 1986 created which type of bankruptcy?

Chapter 12

The form of bankruptcy in which all the organization's assets are sold in parts for their tangible worth is

Chapter 7

Which chapter of the bankruptcy code applies to municipalities?

Chapter 9

Under which strategy would you offer products or services to a wide range of customers at the lowest price available on the market?

Cost Leadership- Low Cost

Integration strategies are sometimes collectively referred to as which of the following categories of strategies?

Vertical integration

In which situation would horizontal integration be an especially effective strategy?

When an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for "tending substantially" to reduce competition.

Which of the following is not an example of when an organization should use an unrelated diversification strategy?

When existing markets for an organization's present products are not yet saturated.

Under which condition would a differentiation strategy be especially effective?

When technological change is fast paced and competition revolves around rapidly evolving product features.

Under which condition would a cost leadership strategy be especially effective?

When the products of rival sellers are essentially identical and supplies are readily available from any of several eager sellers.

Financial objectives involve all of the following except:

larger market share

Marriott selling its timeshare business is an example of which type of strategy?

Divestiture

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

Which level of strategy is most likely not present in small firms?

Divisional

Which strategy generally entails large research and development expenditures?

product development

Adding new, related products or services for present customers is called:

related diversification

Many more firms have failed at ________ than have succeeded due to the immense challenge of managing businesses in many industries rather than in a single industry.

related diversification

Borders closing 200 of its 488 superstores and laying off 6,000 of its 19,500 employees is an example of

retrenchment