Mgt 3830 Ch. 5 test bank

Which strategy generally entails large research and development expenditures? a. market penetration b. retrenchment c. forward integration d. product development e. divestiture

d

Goodyear Tire & Rubber Co. selling its North American farm-tire business to Titan International is an example of which type of strategy? a. related diversification b. unrelated diversification c. retrenchment d. divestiture liquidation

d

Long-term objectives are needed at which level(s) in an organization? a. Corporate b. Divisional c. Functional d. All of these e. None of these

d

Selling all of a company's assets in parts for their tangible worth is called a. joint venture. b. divestiture. c. concentric diversification. d. liquidation. e. unrelated integration.

d

The Family Farmer Bankruptcy Act of 1986 created a. Chapter 7. b. Chapter 8. c. Chapter 9. d. Chapter 12. e. Chapter 13.

d

What refers to a strategy of seeking ownership of or increased control over a firm's competitors? a. Forward integration b. Conglomerate diversification c. Backward integration d. Horizontal integration e. Concentric diversification

d

Which of the following is most likely not included in the functional level of a small company? a. Finance b. Marketing c. R & D d. Department managers e. Human resource managers

d

Financial objectives involve all of the following except: a. growth in revenues. b. larger market share. c. higher dividends. d. greater return on investment. e. a rising stock price.

b

What term refers to selling a division of an organization. a. Joint venture b. Divestiture c. Concentric diversification d. Liquidation e. Horizontal integration

b

Which strategy should an organization use if it competes in a no-growth or a slow-growth industry. a. divestiture b. related diversification c. backward integration d. unrelated diversification e. retrenchment

b

Which of these strategies is effective when the number of suppliers is small and the number of competitors is large? a. Conglomerate diversification b. Forward integration c. Concentric diversification d. Backward integration e. Horizontal diversification

d

Win-Dixie closing one-third of its stores and eliminating 22,000 jobs in an attempt to emerge from bankruptcy would be an example of: a. divestiture. b. backward integration. c. liquidation. d. retrenchment. e. forward integration.

d

All of the following situations are conducive to market development except: a. when an organization competes in a high-growth industry. b. when an organization is very successful at what it does. c. when new untapped or unsaturated markets exist. d. when an organization has excess production capacity. e. when an organization's basic industry is becoming rapidly global in scope.

a

Budget Rent-a-Car opening car rental shops in Wal-Mart stores is an example of which type of strategy? a. forward integration b. backward integration c. horizontal integration d. related diversification unrelated diversification

a

In which situation would horizontal integration be an especially effective strategy? a. 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. b. When an organization competes in a slowing industry. c. When decreased economies of scale provide major competitive advantages. d. When an organization has neither the capital nor human talent needed to successfully manage an expanded organization. e. When competitors are succeeding due to managerial expertise or having particular resources an organization possesses.

a

What kind of strategy is retrenchment? a. A turnaround or reorganization strategy b. An expansion strategy c. A conglomerate strategy d. An intensive strategy e. An offensive strategy

a

What principle is based on the belief that the true measure of a really good strategist is the ability to solve problems? a. Managing by crisis b. Managing by objectives c. Managing by extrapolation d. Managing by exception e. Managing by hope

a

Which strategy seeks to increase market share of present products or services in present markets through greater marketing efforts. a. market penetration b. forward integration c. market development d. backward integration e. product development

a

Bankruptcy a. should never be used as a strategy. b. should be used only when one is legally forced to do so. c. can be an effective type of retrenchment strategy. d. should only be used for large firms. e. should only be used for small, private firms.

c

Integration strategies are sometimes collectively referred to as which of these strategies? a. Horizontal integration b. Diversification c. Vertical integration d. Stuck-in-the-middle e. Hierarchical integration

c

Retrenchment would be an effective strategy when an organization a. has shrunk so quickly that major internal reorganization is needed. b. is one of the stronger competitors in a given industry. c. is plagued by inefficiency, low profitability, poor employee morale and pressure from stockholders to improve performance. d. has decided to capitalize on opportunities, maximize threats, take advantage of strengths and overcome weaknesses. e. does not have a clearly distinctive competence and has failed to meet its objectives and goals consistently over time.

c

Adding new, unrelated products or services for present customers is called a. forward integration. b. related diversification. c. backward integration. d. conglomerate diversification. e. unrelated diversification.

e

All of the following are important factors in the Balanced Scorecard except: a. customer service. b. employee morale. c. product quality. d. business ethics. e. stockholder equity.

e

What principle is built on the idea that there is no general plan for which way to go and what to do? a. Managing by crisis b. Managing by extrapolation c. Managing by objectives d. Managing by hope e. Managing by exception

e

When a domestic company first begins to export to India, it is an example of a. horizontal integration. b. backward integration. c. forward integration. d. concentric diversification. e. market development.

e

Which strategy would be effective when the stockholders of a firm can minimize their losses by selling the organization's assets. a. integration b. differentiation c. diversification d. cost leadership e. liquidation

e

Which strategy is appropriate when an organization competes in an industry characterized by rapid technological developments? a. retrenchment b. product development c. backward integration d. liquidation e. market penetration

b

Which strategy should be implemented when a division is responsible for an organization's overall poor performance? a. backward integration b. divestiture c. forward integration d. cost leadership e. related diversification

b

Web sites to sell products directly to consumers are examples of which type of strategy? a. backward integration b. product development c. forward integration d. horizontal integration e. conglomerate diversification

c

Which chapter of the bankruptcy code applies to municipalities? a. Chapter 7 b. Chapter 8 c. Chapter 9 d. Chapter 12 e. Chapter 13

c

Which level of strategy is most likely not present in small firms? a. Corporate/company b. Functional c. Divisional d. Operational e. All of these are present in small firms

c

Adding new, unrelated products or services is called a. forward integration. b. related diversification. c. backward integration. d. conglomerate diversification. e. unrelated diversification.

d

Advanced Medical Optics using acquisitions to obtain all medical aspects of eye care, from laser surgery to contacts to implants for all ages is an example of which type of strategy? a. forward integration b. backward integration c. horizontal integration d. market development e. product development

d

Backward integration is effective in all of these except: a. when an organization competes in an industry that is growing rapidly. b. when an organization has both capital and human resources to manage the new business of supplying its own raw materials. c. when an organization needs to acquire a needed resource quickly. d. when the advantage of stable prices are not important. when present suppliers have high profit margins.

d

Which of the following is not an example of when an organization should use an unrelated diversification strategy? a. When revenues derived from an organization's current products or services would increase significantly by adding the new unrelated, products. b. When an organization's present channels of distribution can be used to market the new products to current customers. c. When the new products have counter-cyclical sales patterns compared to an organization's present products. d. When an organization competes in a highly competitive and/or a no-growth industry. e. When the organization has a strong management team.

e