Business Policy 1

Sony's launches of PlayStation 2, then PS3, then PS4, is an example of which concentration (intensive) strategy?

Product Development

Dell Computer's initial decision to start selling LCD wide-screen TVs is an example of _______.

Related Diversification

Difficulties encountered by trying to "reposition" a brand in the market (e.g. moving "upscale") are examples of a (an) _______?.

Mobility barrier

When existing rivals in an industry to not act aggressively because of fear of retaliation, it is ______.

Mutual forbearance

A company uses outside suppliers to provide services that it could perform itself. (e.g. a firm might contract a professional cleaning company to come in on a regular basis to clean offices.)

Outsourcing

A charitable organization provides education to poor children. It aims at providing education to every child who cannot afford to pay for his or her own education. This is an example of the _____ of the organization. a. mission b. vision c. strategy d. tactics/ploys e. strategic intent

a

A concept that is borrowed from the arts and stresses moves that create new markets by using whatever materials and resources that happen to be available is ________. a. bricolage b. enactment c. a blue ocean strategy d. creative destruction e. none of the above

a

A department store consistently keeps low prices, and this strategy helps the store to attract many customers. This is an example of a strategic: A. pattern B. perspective C. ploy D. plan E. position

a

A supermarket purchases all its vegetables from the local farmers. It also ensures that it purchases the vegetables from farmers who are located closest to the supermarket so that the distance covered in the transport of the vegetables is the minimal. This would reduce pollution. The supermarket is also earning good profits. The fact that the supermarket purchases all its vegetables from the local farmers and demonstrates its social responsibility reflects the _____ aspect of the triple bottom line framework. a. People b. planet c. profit d. social e. CSR

a

A take-out restaurant specializing in pizzas completes the order for a single pizza in 15 minutes. The employees of the restaurant are trained to deliver orders within the specified period. This is an example of a(n) _____ measure used to assess organizational performance. a. Internal business process b. Public responsibility c. Financial d. Customer e. Learning & growth

a

A(n) _____ fee refers to the percentage of franchisees' revenues paid to an organization which has granted the right to use its brand name, products, and processes. A. royalty B. establishment C. acceptance D. acknowledgement E. franchise

a

Economies of _____ refer to a cost advantage that is created when a firm can produce a good or service at a lower per unit price due to producing the good or service in large quantities. A. scale B. demand C. scope D. brand E. integration

a

Myshirts.com, a company that manufactures shirts, buys large consignments of dressing material from a supplier. The supplier charges them less than what Myshirts.com would have had to pay if it had purchased the material from different sources. As a consequence, the cost of manufacturing each shirt at Myshirts.com is lower than at other manufacturers. This is an example of economies of: A. scale. B. demand. C. scope. D. brand. E. integration.

a

Strategy formulation, strategy implementation, and ____ are the steps (or phases) in the strategic management process. a. strategy evaluation b. strategic planning c. decision-making d. positioning e. strategy visioning

a

A _____ brand is a lower-end brand that a firm introduces to try protect the firm's market share without damaging the firm's existing brands. a. disruptive b. differentiated c. fragmented d. fighting e. value

d

A theoretical perspective that contends that organizations are limited in their ability to adapt to the conditions around them is: a. enactment b. resource-based view c. institutional theory d. environmental determinism e. transaction-cost economics

d

A viable business model requires that a firm: A. sell goods or services at the same cost the firm needs to create and distribute those goods. B. sell goods or services without paying any attention to the costs that the firm has to bear in order to create and distribute those goods. C. give away goods or services for free in order to attract more and more customers. D. sell goods or services for more than it costs the firm to create and distribute those goods. E. sell goods or services for less than it costs the firm to create and distribute those goods.

d

A(n) _____ strategy is the strategy that an organization actually follows. A. marked B. pre-termed C. intended D. realized E. established

d

If Dell Computer were to acquire Intel, it would best be described as an example of ______.

Backward Vertical Integration

Creating a new, untapped market rather than competing with rivals in an existing market is a (an) _____.

Blue Ocean Strategy

"Given the business(es) we are in, how should we compete?" is the question asked at the ____ level.

Competitive (business) strategy

If Microsoft bought a chain of food retailers such as Piggly-Wiggly, it would be an example of a _____.

Conglomerate Diversification

Which generic strategy is usually associated with the discount retailers such as Wal-Mart?

Cost Leadership Strategy

A generic strategy aimed at emphasizing the uniqueness or superiority of products and services is _____?

Differentiation Strategy

The sale of one of a firm's SBUs to a competitor, and that SBU continues to operate is a _______.

Divestiture

If a company builds a new manufacturing plant dedicated to producing shoes for a region, and later decides to get out of that region but can't find a buyer for the plant, the manufacturing plant might be viewed as a (an) _____.

Exit Barrier

When a shoe manufacturer opens a company-owned retail store, it is an example of ________.

Forward Vertical Integration

The name given to Michael Porter's group of strategies used at the competitive (business) strategy level.

Generic Strategies

The formation of HP/Compaq and Daimler/Chrysler are examples of which grand strategy?

Horizontal Integration

A sign in a store window reads, "going out of business—everything must go" is probably an example of which grand strategy?

Liquidation

Exporting products made in the US to new foreign markets is a basic example of which concentration (intensive) strategy?

Market Development

Marketing efforts to increase sales of existing products in existing markets is which concentration (intensive) grand strategy?

Market Penetration

The "triple bottom line" is an approach to assessing performance that emphasizes concern for: a. people, planet, and profit b. product, position, and performance c. structure, conduct and performance d. product, place and profit e. none of these

a

The internet boom of the 1990s is an example of: a. Shumpterian Shock b. Dynamic Capability c. Environmental Determinism d. a Gausian Principle e. Causal Ambiguity

a

The main question asked at corporate-level strategy is: a. what business(es) are we in/should we be in? b. given the business(es) we are in, how should we compete? c. where are we now? d. where do we want to be? e. how do we get there?

a

Which of the following models is used for analyzing the general external environment? a. PEST (or PESTEL) b. anonymous matrix c. Ansoff's matrix d. SWOT analysis e. none of the above.

a

Which of the following statements holds true for the book "Strategy and Structure: Chapters in the History of the Industrial Enterprise"? A. It stressed on how strategy and organizational structure need to be consistent with each other in order to ensure strong firm performance. B. It offered concepts such as Five Forces Analysis and Generic Strategies that continue to strongly influence how executives choose strategies. C. It stressed on how organizations could become more efficient through identifying the "one best way" of performing important tasks. D. It argued that many of the advantages that firms in developed countries like the United States, Japan, and Great Britain take for granted are disappearing. E. It emphasized student's critical thinking skills in general and the notion that multiple ways of addressing a problem could be equally successful in particular.

a

A "3 firm concentration ratio of 80%" would mean: a. The industry is highly fragmented b. The industry is highly concentrated c. The market structure is most likely monopolistic competition d. both a and c e. none of the above

b

A health drink company is known for launching drinks with flavors which are different from what are offered in the market. It regularly indulges in experimentation to come up with new and exotic flavored drinks. It is also able to charge prices that are higher than what other health drink companies charge. What advantage would the company enjoy because of the strategy it follows? a. It can depend on its ability to reduce the price to drive competition out of the market. b. It has an ability to obtain premium prices from customers. c. Customers always prefer a product with features rather than a cheaper alternative. d. It does not need to spend significant funds on advertising. e. Customers are always eager to pay extra to obtain the unique features that a firm is trying to build its strategy around.

b

An automobile manufacturing company wants to be the first company in the world to launch a car that would require no human intervention to run on the road. It wants to do so by year 2020. The task presents a challenge to the engineering skills of the organization. The fact that the task presents a challenge to the organization reflects the _____ dimension of a goal. a. Realistic b. aggressive c. measurable d. time-bound e. specific

b

Dormer is the only fine dining restaurant in a small town. The opening of a new restaurant is viewed as a threat by some of the employees at Dormer. Others see it as an opportunity for Dormer to strengthen itself by looking out for its weaknesses and ironing them out. This is an example of strategy as: A. pattern B. perspective C. ploy D. plan E. position

b

Quattro is a pizza shop that delivers pizzas without any extra charge. It plans to refund the entire amount of the order in case the pizza is not delivered within a period of thirty minutes from the time when the order is placed. After two years it has stopped the policy of refunding any money in case of a delay of more than thirty minutes. The fact that it stopped the policy of refunds in case of a delay of more than thirty minutes is an example of a _____ strategy. A. make over B. non-realized C. marked D. deliberate E. pre-termed

b

Skyway manufactures fighter jets. It aims to be the top aircraft manufacturing company in the world. This is an example of the _____ of the company. a. mission b. vision c. strategy d. tactics/ploys e. strategic intent

b

Sony's and Apple's ability to innovate to "reinvent" existing ways of doing things is known as ___. a. diversification b. creative destruction c. product augmentation d. imagineering

b

Strategy as _____ refers to how executives interpret the competitive landscape around them. A. pattern B. perspective C. ploy D. plan E. position

b

Which of the following is the most important factor in determining a company's unit sales and market share of private-label footwear in a particular geographic region? a. The amount of merchandising support provided to retailers b. The company's bid price c. The number of models/styles comprising the company's product line d. The appeal of the celebrities signed to endorse the company's footwear e. Whether the company's private-label footwear has a higher S/Q rating than the footwear of rival private-label manufacturers

b

Which of the following is true concerning mail-in rebates? a. the higher the rebate offer, the lower the redemption rate b. the higher the rebate offer, the higher the redemption rate c. rebates are allowed in the North America market only d. the maximum rebate amount is $20 per pair e. all of the above except "b" are true

b

Which of the following statements holds true for learning and growth measures as a part of the balanced scorecard? a. They relate to client attraction, satisfaction, and retention. b. They focus on innovation and proceeds with an understanding that strategies change over time. c. They relate to organizational efficiency. d. They focus on corporate social responsibility. e. They relate to organizational effectiveness and profits.

b

A coffee chain was losing its customers to its competitors, and wanted to increase its sales. Therefore it started offering complimentary pastries with every cup of coffee, to outwit its competitors. Soon, the company registered an increase in its sales. This is an example of a strategic: A. pattern B. perspective C. ploy D. plan E. position

c

An automobile manufacturing company wants to be the first company in the world to launch a car that would require no human intervention to run on the road. It wants to do so by year 2020. The progress of the project can be easily calculated and assessed. The fact that this project can be easily assessed reflects the _____ dimension of a goal. a. Realistic b. aggressive c. measurable d. time-bound e. specific

c

The book "The Principles of Scientific Management" _____. A. stressed how strategy and organizational structure need to be consistent with each other to ensure strong firm performance B. offered concepts such as Five Forces Analysis and Generic Strategies that continue to strongly influence how executives choose strategies C. stressed on how organizations could become more efficient through identifying the "one best way" of performing important tasks D. argued that many of the advantages that firms in developed countries like the United States, Japan, and Great Britain take for granted are disappearing E. emphasized student's critical thinking skills in general and the notion that multiple ways of addressing a problem could be equally successful in particular

c

Which of the following currencies are involved in affecting the operations of your company's athletic footwear business? a. Japanese yen, Mexican pesos, Indian rupees, Canadian dollars, euros, and the Australian dollar b. Singapore dollars, South African rand, Chilean pesos, and Turkish lira c. U.S. dollars, Singapore dollars, euros, and Brazilian reals d. Brazilian reals, Canadian dollars, Japanese yen, Chinese renminbi, and New Zealand dollars e. U.S. dollars, Indian rupees, Swiss francs, Argentine pesos, and euros

c

An approach to assessing performance that targets manager's attention on four areas: (1) financial, (2) customer, (3) internal business process, and (4) learning and growth is a tool called _______? a. competitive profile matrix b. SWOT analysis c. critical success factor analysis d. balanced scorecard e. QUEST analysis

d

Marty's, a clothing company, has a number of outlets which are owned and managed by private individuals. These outlets are allowed to use the brand name and products of Marty's after paying a fee to the company. They also pay a part of their revenues to the clothing line. The part of the revenues paid by the outlets to Marty's is referred to as: A. acceptance fee. B. acknowledgement fee. C. franchise fee. D. royalty fee. E. establishment fee.

d

Perceptual (or position) mapping is used to: a. identify strategic groups of competitors b. identify "gaps" in the market c. identify industry competitors' position in the market d. all of the above e. none of the above

d

Pizzas at Home, a pizza shop, plans to deliver pizzas to households. The delivery would be made without any extra charge. It put its plans to good effect. Soon, Pizzas at Home starts charging a nominal fee for the delivery. Many other pizzerias start following the same strategy and thus, Pizzas at Home is now giving pizzas for free if the pizzas are not delivered within 30 minutes of placing the order. The strategy followed by Pizzas at Home is an example of a(n) _____ strategy. A. marked B. pre-termed C. established D. realized E. arranged

d

Which is true concerning the S/Q rating? a. it is the same for all shoes coming from a particular factory, no matter where the shoes are sold b. it doesn't matter where the shoes are manufactured, it is only the market's perception of quality that determines the S/Q rating c. S/Q ratings are based entirely on the percent of superior materials used to make a shoe d. a company may have as many as 8 different S/Q ratings in a year e. none of the above are true concerning S/Q ratings

d

_____ involves an organization granting the right to use its brand name, products, and processes to other organizations in exchange for an upfront payment and a percentage of revenues generated by the other organizations. A. Differentiation B. Positioning C. Brand essence D. Franchising E. Comparative scaling

d

A _____ is an organization which grants the right to use its brand name, products, and processes to other organizations. A. legatee B. franchisee C. bailee D. bailer E. franchisor

e

A(n) _____ strategy is an unplanned strategy that arises in response to unexpected opportunities and challenges. A. marked B. pre-termed C. intended D. realized E. emergent

e

If you offer free shipping in the internet market, the shipping and handling fees that you will have to "absorb" is how much per pair of shoes? a. 20% of the shoe's retail cost b. $2.75 c. $12.50 per pair d. $20 per pair e. none of the above

e

Roomz, a mid-range hotel, used to provide only food and accommodation facilities. It soon realized that most of its customers are foreign tourists who constantly ask for directions and advice on places to visit. The hotel then decided to start a travel desk which would help tourists select and visit places of historical and cultural significance. This is an example of a(n) _____ strategy. A. marked B. pre-termed C. intended D. realized E. emergent

e

Strategy as _____ refers to a firm's place in the industry relative to its competitors. A. pattern B. perspective C. ploy D. plan E. position

e

Which of the following statements holds true for the "capstone" course recommended by The Ford Foundation? A. It stressed on how strategy and organizational structure need to be consistent with each other to ensure strong firm performance. B. It offered concepts such as Five Forces Analysis and Generic Strategies that continue to strongly influence how executives choose strategies. C. It stressed on how organizations could become more efficient through identifying the "one best way" of performing important tasks. D. It argued that many of the advantages that firms in developed countries like the United States, Japan, and Great Britain take for granted are disappearing. E. It emphasized student's critical thinking skills in general and the notion that multiple ways of addressing a problem could be equally successful in particular.

e

A situation in which a firm faces the same rival in more than one market is ________.

multipoint competition