strategic mngmt quiz b1

Which of the following is noted in the text as a serious obstacle for many small business owners?

A lack of strategic-management knowledge

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

market development.

Staples 170 store closings in North America in 2014 is an example of

retrenchment.

Amazon's start of rapid delivery services in some U.S. cities is an example 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 effective when the stockholders of a firm can minimize their losses by selling the organization's assets?

Liquidation

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

Venture risk was minimized.

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 a guideline for 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 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

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

Backward integration

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

Corporate Divisional Functional All of these

Procter & Gamble's (P&G) sale of many of its brands in order to focus on its core brands is an example of which type of strategy?

Divestiture

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

Gap's opening of its first five stores in China is an example of which type of strategy?

Market development

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

Merger

Which strategy generally entails large research and development expenditures?

Product development

Which strategy should an organization use when its products are currently in the declining stage of the product's life cycle?

Related diversification

The controversial practice of a company borrowing money simply to fund dividend payouts to itself is known as

dividend recapitalization.

Backward integration is effective in all of these cases EXCEPT

when the advantages of stable prices are not particularly important.