Exam 2

What action involves reconfiguring or redesigning work, jobs, and processes for the purpose of improving cost, quality, service, and speed? A) Restructuring B) Downsizing C) Reengineering D) Delayering E) Recruiting

Reengineering

True or False: A firm can usually serve two or more market segments with the same category

False

True or False: Effective strategy formulation can usually guarantee successful strategy implementation.

False

True or False: Return on Assets is the most widely used technique for determining whether debt, stock, or a combination of debt and stock is the best alternative for raising capital to implement strategies.

False

True or False: The four strategies of the SPACE Matrix are aggressive, conservative, offensive and defensive.

False

True or False: There are five component variables in the marketing mix: product, place, promotion, price, and people.

False

A pasta manufacturer's purchase of some pet food brands is an example of A) backward integration. B) divestiture. C) retrenchment. D) unrelated diversification. E) forward integration.

Unrelated Diversification

Long-term objectives are needed at which level(s) in an organization? A) Corporate B) Divisional C) Functional D) All of the above E) Corporate & divisional levels, but not functional level

All of the above

Which of the following is a management issue central to strategy implementation? A) Devising policies B) Revising reward and incentive plans C) Minimizing resistance to change D) Developing an effective human resources function E) All of the above

All of the above

Which approach for managing and resolving conflict involves ignoring the problem in hopes that the conflict will resolve itself? A) Avoidance B) Resistance C) Compliance D) Defusion E) Confrontation

Avoidance

What are the three categories of approaches for managing and resolving conflict? A) Avoidance, defusion, and confrontation B) Avoidance, apathy, and defusion C) Ignorance, indifference, and apathy D) Defusion, apathy, and avoidance E) Indifference, avoidance, and role-playing

Avoidance, delusion, and confrontation

In the BCG Matrix, a division with a high relative market share position in a low-growth industry can be described as a A) Star. B) Cash Cow. C) Question Mark. D) Dog. E) Failure.

Cash Cow

disagreement between two or more parties on one or more issues is called a(n) A) integrated solution. B) conflict. C) compromise. D) defusion. E) avoidance.

Conflict

In low-earning periods, too much ________ in the capital structure of an organization can endanger stockholders' return and jeopardize company survival. A) debt B) liquidity C) equity D) cash E) tax liability

Debt

After completing an EPS/EBIT analysis, what conclusions would you make if the debt line is above the stock line throughout the range of EBIT on the graph? A) Debt appears to be the best financing alternative. B) Stock would be the best financing alternative. C) A combination of debt and stock is probably the best financial alternative. D) Dividends must be considered before conclusions can be made. E) The company should be privately owned.

Debt appears to be the best financing alternative

What analytical tool has four quadrants based on two dimensions: competitive position and market growth? A) Competitive Profile Matrix (CPM) B) Internal-External (IE) Matrix C) Strategic Position and Action Evaluation (SPACE) Matrix D) Grand Strategy Matrix E) Quantitative Strategic Planning Matrix (QSPM)

Grand strategy matrix

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

Horizontal Integration

Which stage of the strategy-formulation framework includes an IFE Matrix and the Competitive Profile Matrix? A) Input B) Matching C) Decision D) Penetration E) Research

Input

Which of these is a limitation of QSPM? A) Only a few strategies can be evaluated at once. B) It is prohibitively expensive. C) It requires intuitive informed judgments. D) Strategies cannot be examined sequentially. E) It makes it more likely that key factors will be overlooked or weighted inappropriately.

It requires intuitive informed judgements

Which of the following is the first step in developing a QSPM? A) Compute the Total Attractiveness Scores. B) Examine the Stage 2 matrices and identify alternative strategies the organization should consider implementing. C) Assign weights to each key external and internal factor. D) Determine the Attractiveness Scores. E) Make a list of the firm's key external opportunities and threats and internal strengths and weaknesses in the left column of the QSPM.

Make a list of the firm's key external opportunities and threats and internal strengths and weaknesses in the left column of the QSPM

Subdividing a market into distinct subsets of customers according to their needs and buying habits is known as A) market penetration. B) product diversification. C) market segregation. D) market segmentation. E) positioning.

Market Segmentation

Which stage in the strategy-formulation framework focuses on generating feasible alternative strategies? A) Input B) Output C) Decision D) Throughput E) Matching

Matching

All of our locations will be open at least two evenings per week until 8:30 p.m." is an example of a(n) A) administration. B) goal. C) objective. D) policy. E) procedure.

Policy

Which of the following variables is NOT directly affected by market segmentation? A) Product B) Place C) Process D) Promotion E) Price

Process

Which strategy generally entails large research and development expenditures? A) Market penetration B) Retrenchment C) Forward integration D) Product development E) Divestiture

Product Development

In the Boston Consulting Group (BCG) Matrix, how would a division with a low relative market share position in a high growth industry be described? A) Question Mark B) Cash Cow C) Star D) Stuck-in-the-middle E) Dog

Question Mark

hich strategy is effective when new, but related, products could be offered at highly competitive prices? A) Forward integration B) Related diversification C) Related integration D) Conglomerate diversification E) Unrelated diversification

Related Diversification

which strategy should an organization use when its products are currently in the declining stage of the product's life cycle? A) Divestiture B) Related diversification C) Backward integration D) Unrelated diversification E) Retrenchment

Related Diversification

Evaluating the worth of a firm A) is an exact science. B) requires both qualitative and quantitative skills. C) is based solely on financial facts. D) is known only to the firm's accountants. E) is static.

Requires both qualitative and quantitative skills

Which term is primarily concerned with shareholder well-being rather than employee well-being? A) Benchmarking B) Reengineering C) Product redesign D) Process management E) Restructuring

Restructuring

Staples 170 store closings in North America in 2014 is an example of A) divestiture. B) backward integration. C) liquidation. D) retrenchment. E) forward integration.

Retrenchment

A benefit of using projected balance sheets and income statements is that A) the impact of various implementation decisions can be forecasted. B) money can be put aside to pay future income taxes. C) insurance needs can be computed. D) it is useful in analyzing past performance. E) all of the above

The impact of various implementation decisions can be forecasted

Which of the following is NOT an accepted approach for determining a business's worth? A) The Net Worth Method B) The Net Income Method C) The Return on Investment Method D) The Price-Earnings Ratio Method E) The Outstanding Shares Method Answer: C

The return on investment method

True or False: A positive feature of the Quantitative Strategic Planning Matrix (QSPM) is that sets of strategies can be examined sequentially or simultaneously.

True

True or False: Additional capital is often required for successful strategy implementation

True

True or False: An appropriate strategy when an organization has excess production capacity is market development.

True

True or False: An organization's present strategies, objectives, vision, and mission, coupled with the external and internal audit information, provide a basis for generating and evaluating feasible alternative strategies.

True

True or False: Annual objectives are key components in the strategic-management process because they are dictate how resources will be allocated

True

True or False: First mover advantages refer to the benefits a firm may achieve by entering a new market or developing a new product or service prior to rival firms.

True

True or False: Four types of resources that can be used to achieve desired objectives are financial, physical, human, and technological.

True

True or False: Horizontal integration is seeking ownership or increased control over competitors

True

True or False: Objectives provide direction and allow for organizational synergy.

True

True or False: Reengineering does not usually affect the organizational structure or chart, nor does it imply job loss or employee layoffs.

True

True or False: The most common bases for segmenting markets are geographic and demographic.

True

Under which condition would a differentiation strategy be especially effective? A) When there are few ways to differentiate the product or service that buyers perceive as having value B) When technological change is fast paced and competition revolves around rapidly evolving product features C) When most buyers use the product in the same way D) When many rival firms are following a similar differentiation approach E) When the differentiation base is easy or inexpensive for rivals to duplicate

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