ACC CHP 15/17

F

10. "How do we compete?" is a question asked when managers are considering functional-level strategy. a. True b. False

a. Globalization

100. Which global corporate strategy is based on the assumption that a single global market exists for many consumer and industrial products? a. Globalization b. Multidomestic c. Glocalization d. Export e. All of these

c. Export

101. Which of the following strategies would be appropriate when the need for both national responsiveness and global integration is low? a. Globalization b. Multidomestic c. Export d. Glocalization e. Import

c. Glocalization

102. Which of the following strategies would be appropriate when the need for both national responsiveness and global integration is high? a. Domestic b. Globalization c. Glocalization d. Multidomestic e. Export

c. Employee resistance

103. Which of the following is the biggest contributing factor to failed strategy execution? a. Manager behavior doesn't support new direction b. Lack of planning c. Employee resistance d. Inadequate budget or resources e. Lack of focus

c. strategy execution

104. Many strategy experts agree that __________ is the most important, yet the most difficult, part of strategic management. a. SWOT analysis b. strategy formation c. strategy execution d. strategic analysis e. strategy evaluation

a. Visible leadership

105. Persuasion, motivation techniques, and cultural values are examples of which of the dimensions used to implement strategy? a. Visible leadership b. Structural design c. Human resources d. Candid communication e. Clear roles and accountability

b. Diversification

106. Which of the following is not one of the tools used for putting strategy into action? a. Visible leadership b. Diversification c. Human resources d. Candid communication e. Clear roles and accountability

d. Clear roles and accountability

107. People need to understand how their individual actions can contribute to achieving an organizational strategy. This can be accomplished by delegating authority and responsibility, defining roles, and defining measures and metrics. These actions are part of which tool for putting strategy into action? a. Visible leadership b. Candid communication c. Human resources d. Clear roles and accountability e. Bargaining power of employees

e. human resources

108. The __________ function recruits, selects, trains, compensates, transfers, promotes, and lays off employees to achieve strategic goals. a. production b. leadership c. operational d. structural design e. human resources

F

11. The three levels of strategy are business, corporate, and global. a. True b. False

b. Cash cow

110. Using the logic of the BCG matrix, Theresa should recognize that her strategic business unit was in which quadrant? a. Star b. Cash cow c. Question mark d. Dog e. None of these

d. question mark.

112. According to the BCG matrix, the SS.com subsidiary for Swift Stocks can be classified as a: a. cash cow. b. dog. c. star. d. question mark. e. weakness.

a. cash cow

113. If Swift Stocks' traditional brokerage business were to face a declining business growth, it may need to be reclassified as a __________ on the BCG matrix. a. cash cow b. dog c. star d. question mark e. dead business

b. Cost leadership

114. Swift Stocks is following which strategy, according to Porter, through the .com subsidiary? a. Stability b. Cost leadership c. Focus d. Differentiation e. Retrenchment

F

12. One key to effective strategy execution is entrenchment, which means there is a deep understanding and acceptance of organizational direction and purpose throughout the organization. a. True b. False

F

13. The biggest factor that contributes to failed strategy execution is an inadequate budget or resources. a. True b. False

F

14. Strategy implementation includes the planning and decision making that lead to the establishment of the firm's goals. a. True b. False

T

15. Factors that alter a company's ability to achieve its goals are called strategic issues. a. True b. False

T

16. The administration and implementation of the strategic plan is strategy execution. a. True b. False

F

17. The strategic management process begins when executives scan the organization's internal and external environments and identify strategic issues that might require change. a. True b. False

F

18. Executives acquire information about external opportunities and strengths from a variety of reports, including budgets, financial ratios, profit and loss statements, and surveys of employee attitudes and satisfaction. a. True b. False

T

19. For the social networking site Facebook, technological know-how and an aggressive and innovative culture are significant strengths to include in its SWOT analysis. a. True b. False

F

2. Strategic thinking is more important in for-profit businesses than for nonprofit organizations. a. True b. False

F

20. Threats are characteristics of the internal environment that may prevent the organization from achieving its strategic goals. a. True b. False

F

21. Opportunities are characteristics of the internal environment that have the potential to help the organization achieve or exceed its strategic goals. a. True b. False

T

22. Portfolio strategy pertains to the mix of business units and product lines that fit together in a logical way to provide synergy and competitive advantage for the corporation. a. True b. False

F

23. An SBU stands for "star business unit." a. True b. False

F

24. The BCG (Boston Consulting Group) matrix evaluates SBUs with respect to their business growth rate and geographical location. a. True b. False

T

25. The question mark exists in a new, rapidly growing industry, but has only a small market share, according to the BCG matrix. a. True b. False

F

26. According to the BCG matrix, the cash cow has a large market share in a rapidly growing industry. a. True b. False

T

27. The dog, according to the BCG matrix, is a poor performer. a. True b. False

T

28. Unrelated diversification occurs when an organization expands into a totally new line of business. a. True b. False

T

29. Diversification is a strategy of moving into new lines of business. a. True b. False

T

30. Vertical integration means the company expands into businesses that either produce the supplies needed to make products and services or that distribute and sell those products and services to customers. a. True b. False

T

31. Differentiation, cost leadership, and focus are three of Porter's competitive strategies. a. True b. False

F

32. Cost leadership is a type of competitive strategy with which the organization seeks to distinguish its products or services from others in the industry. a. True b. False

T

33. Organizations with a focus strategy concentrate on a specific regional market or buyer group. a. True b. False

T

34. A director of finance would most likely be interested in executing a functional-level strategy. a. True b. False

F

35. Business-level strategies include all of the major functions, including finance, research and development, marketing, and manufacturing. a. True b. False

T

36. A globalization strategy is based on the assumption that a single global market exists for many consumer and industrial products. a. True b. False

F

37. A globalization strategy handles markets independently for each country. a. True b. False

F

38. Many strategy experts agree that formulation is the most important, yet the most difficult, part of strategic management. a. True b. False

T

39. A glocalization strategy seeks to achieve both global standardization and national responsiveness. a. True b. False

F

4. In for-profit firms, strategic planning pertains to events in the external environment. a. True b. False

T

40. When an organization is domestically focused, with only a few exports, managers have little need to pay attention to issues of either local responsiveness or global standardization. a. True b. False

T

41. Candid communication is one of the primary tools that managers must use for effective strategy execution. a. True b. False

T

42. For successful execution, alignment of everyone in the organization must occur. a. True b. False

F

43. The Internet and information technology has made it easier for many companies to find ways to distinguish themselves from their competitors. a. True b. False

T

44. In strategy execution, leadership is the ability to influence people to adopt the new behaviors needed for putting the strategy into action. a. True b. False

e. all of these.

45. To achieve competitive advantage, companies should develop strategies that: a. target specific customers. b. sprovide synergy. c. focus on core competencies. d. create value. e. all of these.

c. strategic management.

46. The set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals is known as: a. competitive advantage. b. strategic planning. c. strategic management. d. a SWOT analysis. e. a strategy.

e. strategy.

47. The plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization's goals is known as a(n): a. goal. b. objective. c. mission. d. vision. e. strategy.

d. Exploiting core competencies

48. Sarah owns a clothing boutique. Her focus on operational efficiency enables her to keep costs low compared to other clothing stores in her area. Sarah's expertise on operational efficiency is an example of which element of competitive advantage? a. Targeting customers b. Building synergy c. Delivering value d. Exploiting core competencies e. All of these

b. synergy.

49. The condition that exists when organizational parts interact to produce a joint effect that is greater than the sum of the parts acting alone is known as: a. a core competence. b. synergy. c. value. d. a business-level strategy. e. competitive advantage.

F

5. Competitive advantage refers to the set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals. a. True b. False

c. exploit core competencies; attain synergy

50. Managers help their companies create value by devising strategies that __________ and __________. a. attain synergy; target customers b. target customers; exploit core competencies c. exploit core competencies; attain synergy d. attain synergy; expose external opportunities and threats e. expose internal strengths and weaknesses; target customers

b. Value

51. __________ can be defined as the combination of benefits received and costs paid by the customer. a. Organizational benefits b. Value c. Competitive advantage d. Synergy e. Core competence

d. Building synergy

52. After Sunshine Systems merged with RTD Enterprises, company executives noticed that due to increased employee collaboration between the two units, costs were down and revenues increased within both areas. This is an example of which element of competitive advantage? a. Identifying internal strengths and weaknesses b. Targeting customers c. Exploiting core competencies d. Building synergy e. Delivering value

d. corporate-level

53. When AT&T decided to buy MediaOne, a cable company, it was pursuing a(n) __________ strategy. a. functional-level b. internal growth c. multidomestic d. corporate-level e. business-level

e. Functional

54. __________-level strategy pertains to the major functional departments within the business unit. a. Operational b. Corporate c. National d. Business e. Functional

a. corporate-level

55. When Philip Morris, the tobacco giant, bought Kraft Foods Group, Inc., it was pursuing a __________ strategy. a. corporate-level b. business-level c. functional-level d. multidomestic e. glocalization

c. Corporate-level strategy

56. Which of the following pertains to the organization as a whole and the combination of business units and product lines that makes up the corporate entity? a. Business-level strategy b. Functional-level strategy c. Corporate-level strategy d. Operational-level strategy e. Competitive-level strategy

a. corporate-level

57. Sears' decision to sell off much of its financial services division is an example of a __________ strategy. a. corporate-level b. business-level c. functional-level d. glocalization e. stability

b. How do we compete?

58. A business-level strategy is concerned with which of the following questions? a. What business are we in? b. How do we compete? c. How do we support the functional-level strategy? d. Where do we market our products? e. Should we promote from within?

e. Business-level

59. When Coca-Cola introduced Surge, a new citrus soft drink, what type of strategy was being pursued? a. Functional-level b. Multidomestic c. Corporate-level d. Glocalization e. Business-level

T

6. The interaction of the Production and Sales departments working together to produce profit greater than the total of both working separately is an example of synergy. a. True b. False

b. business-level

60. Ford's decision to completely redesign its Ford Taurus can be classified as a __________ strategy. a. corporate-level b. business-level c. functional-level d. retrenchment e. portfolio

b. What business are we in?

61. Janessa is the CEO of a privately-held software company. In defining corporate-level strategies, which of the following questions would she most likely be concerned with? a. How do we compete? b. What business are we in? c. How does marketing support the business? d. How can we maximize profits? e. How can we make manufacturing processes more efficient?

d. business-level

62. Decisions regarding the proper amount of advertising for a particular good or service are related to __________ strategy. a. corporate-level b. functional-level c. tactical-level d. business-level e. multidomestic

c. How do we support the business-level strategy?

63. Which of the following questions is central to a functional-level strategy? a. What business are we in? b. How do we compete? c. How do we support the business-level strategy? d. What business do we buy? e. Where should we market our products?

d. Evaluate current mission/goals; Perform SWOT analysis; Define new mission/goals; Formulate strategy; Execute strategy

64. Which of the following lists the strategic management process in proper order? a. Formulate strategy; Evaluate strategy; Perform SWOT analysis; Define new mission/goals; Execute strategy; Control strategy b. Perform SWOT analysis; Evaluate current mission/goals; Formulate strategy; Execute strategy; Define new mission/goals c. Evaluate current mission/goals; Define new mission/goals; Formulate strategy; Execute strategy; Perform SWOT analysis d. Evaluate current mission/goals; Perform SWOT analysis; Define new mission/goals; Formulate strategy; Execute strategy e. Define new mission/goals; Execute strategy; Formulate strategy; Evaluate new mission/goals; Perform SWOT analysis

c. Strategy execution

65. __________ is the use of managerial and organizational tools to direct resources toward accomplishing strategic results. a. Strategy formulation b. Strategy coordination c. Strategy execution d. A SWOT analysis e. Strategy planning

a. Strategy formulation

66. Which of the following includes the planning and decision making that lead to the establishment of the firm's goals and of a specific strategic plan? a. Strategy formulation b. Strategy implementation c. Strategy coordination d. Strategy execution e. SWOT analysis

b. assess the strengths, weaknesses, opportunities, and threats that impact his firm.

67. Fred has been assigned to conduct a SWOT analysis for his organization, Acme, Inc. As part of this assignment, Fred will: a. conduct an external wage survey. b. assess the strengths, weaknesses, opportunities, and threats that impact his firm. c. choose a grand strategy for his firm. d. do a cost-benefit analysis. e. develop a mission.

e. Surveys of employee attitudes and satisfaction

68. Which of the following is not a technique used to monitor external environments? a. Contracting with scanning organizations b. Hiring competitive intelligence professionals c. Government reports d. Professional journals e. Surveys of employee attitudes and satisfaction

d. internal strength.

69. Classy Clay has extremely creative employees who, in the opinion of the organization, keep the company ahead of the competition. The creativity of these employees would be classified as a(n): a. internal weakness. b. external opportunity. c. external strength. d. internal strength. e. neutral factor.

c. external threat.

70. Paramount, Inc. is particularly concerned about pending legislation in Congress that would further regulate their organization. This legislation would be classified as a(n): a. external opportunity. b. internal strength. c. external threat. d. external weakness. e. external strength.

c. The Internet blurs differences among competitors.

71. Which of the following statements about the Internet's effect on the competitive forces that exist in a company's environment is true? a. The Internet increases barriers to entry. b. Overall, the Internet tends to decrease the bargaining power of suppliers. c. The Internet blurs differences among competitors. d. The Internet creates fewer substitution threats. e. All of these

c. Competitive job market for critical resources

72. Which of the following would be considered a threat to an organization? a. Employees' resistance to change b. Flexible work culture c. Competitive job market for critical resources d. Strategic alliance with another organization e. All of these

c. corporate-level

73. Portfolio strategy, the Boston Consulting Group (BCG) matrix, and diversification are three approaches to understanding __________ strategy. a. globalization b. functional-level c. corporate-level d. business-level e. multidomestic

b. portfolio

74. The mix of business units and product lines that fit together in a logical way to provide synergy and competitive advantage for the corporation is the essence of __________ strategy. a. business-level b. portfolio c. competitive d. diversification e. functional-level

d. a strategic business unit.

75. Gatekeep Utilities is a subsidiary of GW Enterprises. Gatekeep has a mission and product line that is unique from GW. Gatekeep's competitors are also very different from those of its parent, and the subsidiary markets to a very different group of customers. As such, Gatekeep can be described as: a. a product unit. b. a functional unit. c. an operational unit. d. a strategic business unit. e. none of these.

c. Business growth rate and market share

76. The BCG matrix organizes businesses along which of the following dimensions? a. Market share and profit b. Sales and market share c. Business growth rate and market share d. Business growth rate and profit e. Sales and profit

b. a star.

77. Double Click, Inc. has a number of strategic business units. Their handheld computer unit has a large market share in this rapidly growing industry. According to the BCG matrix, their handheld computer business would be classified as: a. a dog. b. a star. c. a question mark. d. a cash cow. e. stuck in the middle.

d. has a large market share in a slow-growth industry.

78. The cash cow: a. generates tremendous profits in a rapidly growing industry. b. has a small market share in a rapidly growing industry. c. has a small market share in a slow-growth industry. d. has a large market share in a slow-growth industry. e. is generally a dead business that should be divested.

a. large; rapidly growing

79. The star has a __________ market share in a __________ industry. a. large; rapidly growing b. large; slow-growth c. small; rapidly growing d. small; slow-growth e. moderate; slow-growth

T

8. The combination of benefits received and costs paid by the customer refers to value. a. True b. False

d. Dog

80. Which of the following portfolio categories is made up of poor performers who command only a small share of a slow-growth market? a. Star b. Cash cow c. Question mark d. Dog e. Cat

c. small; rapidly growing

81. The question mark has a __________ market share in a __________ industry. a. large; rapidly growing b. large; slow-growth c. small; rapidly growing d. small; slow-growth e. moderate; slow-growth

d. The dog has only a small share of a slow-growth market.

82. Which of the following statements about the dog is true? a. The dog exists in a new, rapidly growing industry, but has only a small market share. b. The dog has additional growth potential, and profits should be plowed into this business as investment for future growth and profits. c. The dog exists in a mature, slow-growth industry but is a dominant business in the industry, with a large market share. d. The dog has only a small share of a slow-growth market. e. The corporation should invest the cash earned from cash cows in dogs with the goal of nurturing them into future stars.

b. question marks

83. Gillette operates numerous strategic business units. Most of its units in the personal care division have a small market share but high business growth. These units are classified as __________ on the BCG matrix. a. dogs b. question marks c. stars d. cash cows e. none of these

e. Cash cow

84. According to the BCG matrix, which of the following exists in a mature, slow-growth industry, but is a dominant business in the industry, with a large market share? a. Question mark b. Asterisk c. Dog d. Star e. Cash cow

b. unrelated

85. When an organization expands into a totally new line of business, it is implementing a strategy of __________ diversification. a. related b. unrelated c. cross-functional d. product line e. industry

a. related diversification.

86. Semway, a regional bank, recently announced that it would soon begin offering financial planning services. This is an example of: a. related diversification. b. unrelated diversification. c. cross-functional diversification. d. product line diversification. e. vertical integration.

b. diversification

87. The purpose of __________ is to expand the firm's business operations to produce new kinds of valuable products and services. a. retrenchment b. diversification c. differentiation d. cost leadership e. internal growth

d. a focus strategy.

88. The merger of Ticketmaster with Live Nation Entertainment, which produces and promotes concerts, is an example of: a. horizontal integration. b. vertical integration. c. unrelated diversification. d. a focus strategy. e. a cost leadership strategy.

a. differentiation.

89. All of the following are Porter's competitive forces except: a. differentiation. b. bargaining power of buyers. c. bargaining power of suppliers. d. threat of substitute products. e. potential new entrants.

T

9. Corporate-level strategy pertains to the organization as a whole and the combination of business units and product lines that makes up the corporate entity. a. True b. False

c. Threat of substitute products

90. The introduction of Uber and Lyft as alternatives to traditional taxi services is an example of which of Porter's five competitive forces? a. Potential new entrants b. Bargaining power of suppliers c. Threat of substitute products d. Bargaining power of customers e. Rivalry among competitors

b. Differentiation

91. Which of the following strategies involve an attempt to distinguish the firm's products or services from others in the industry? a. Cost leadership b. Differentiation c. Focus d. Internal growth e. Diversification

d. differentiation

92. A __________ strategy can reduce rivalry with competitors and fight off the threat of substitute products because customers are loyal to the company's brand. a. focus b. globalization c. cost leadership d. differentiation e. diversification

a. cost leadership

93. With a(n) __________ strategy, the organization aggressively seeks efficient facilities, pursues cost reductions, and uses tight cost controls to produce products more efficiently than competitors. a. cost leadership b. differentiation c. focus d. diversification e. export

a. Cost leadership

94. The human resource department at Paula's Powerwheels is implementing a number of functional-level strategies. These strategies include focusing on ways to retain and develop a stable workforce and ways to improve efficiency in the organization. These functional-level strategies are consistent with which of the following strategies? a. Cost leadership b. Differentiation c. New product development d. New market development e. Globalization

c. focused cost leadership; narrow; low costs

95. A __________ strategy has a __________ strategic target, and __________ is/are its source of advantage. a. focused differentiation; narrow; low costs b. cost leadership; narrow; distinctiveness c. focused cost leadership; narrow; low costs d. differentiation; broad; low costs e. focused differentiation; broad; distinctiveness

a. focus

96. Mingles, Inc. concentrates its efforts on its target market of 18 to 25 year olds. It is using a __________ strategy. a. focus b. differentiation c. cost leadership d. multidomestic e. universal

c. Export

97. General Products Inc. is a small clothing designer and manufacturer located in the United States. A vast majority of the company's revenues comes from U.S. sales, although about 10 percent of the company's revenue come from sales to Canada. General Products Inc. can best be described as using which global corporate strategy? a. Globalization b. Multidomestic c. Export d. Glocalization e. Domestic

b. Multidomestic

98. FLY Industries is a global conglomerate company headquartered in the United States that does business in over 50 countries. The company's marketing, advertising, and product design is modified and adapted to each country that it does business in. FLY can best be described as using which global corporate strategy? a. Globalization b. Multidomestic c. Export d. Glocalization e. Domestic

d. globalization

99. If ABC International has standardized its product design and advertising throughout the world, it is pursuing a(n) __________ strategy. a. multidomestic b. retrenchment c. glocalization d. globalization e. export

F

Core competence is the plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization's goals. a. True b. False

c. star.

Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an online stock investment and trading subsidiary, SS.com, where investors can trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share, but it faces a very high business growth rate. In the brokerage industry, the competition is fierce and all players are cutting their online commission rates. 111. According to the BCG matrix, Swift Stocks' traditional brokerage business could be classified as a: a. cash cow. b. dog. c. star. d. question mark. e. threat.

T

The essence of formulating strategy is choosing how the organization will be different. a. True b. False

d. keep the SBU healthy and use its excess earnings to invest in other, riskier businesses.

Theresa Teutul was an executive with Digital Industries, a leading manufacturer of color televisions. She recognized that the color television market in the late 1970s was facing significant challenges. After two decades of highly successful development and marketing, the sales of color televisions had slowed and replacing older color television sets largely created her market. 109. The strategy that the BCG matrix suggests that Theresa should take for this strategic business unit (SBU) is: a. invest and grow. b. liquidate while still profitable. c. consider divestment. d. keep the SBU healthy and use its excess earnings to invest in other, riskier businesses. e. none of these.