MGMT 478 CH. 4-6
In conducting a marketing audit, which of the following would NOT be a question to ask?
Is the organization's structure appropriate?
Which of the following is a guideline for indicating that product development may be an effective strategy?
an organization competes in a high-growth industry
Related diversification may be an effective strategy when ______.
an organization competes in a no-growth or slow-growth industry
A divestiture may be an especially effective strategy to pursue when:
an organization has pursued a retrenchment strategy and failed to accomplish needed improvements
Which of the following is not a guideline signaling when unrelated diversification may be an especially effective strategy?
an organization's basic industry in experiencing increasing annual sales and profits
Forward integration may be an especially effective strategy when _____.
an organizations present distributors are especially expensive, unreliable, or incapable of meeting the firm's distribution needs
The strategy of seeking ownership or increased control of a firm's suppliers is ______.
backward integration
When Constellation Brands, a large wine and beer producer, purchased several glass bottle factories, it was pursuing which strategy?
backward integration
Boeing's decision to build 80% of its wing flap motors in-house is an example of which strategy?
backward integration
Compared with for-profit firms, nonprofit and governmental organizations may ______.
be totally dependent on outside financing
A consumer electronics company waits for other companies to come up with new technology and then quickly imitates those new technologies when they prove successful. This is an example of:
being a fast follower
To examine the value chain activities across an industry to determine "best practices" among competing firms, an organization would use an analytic tool known as ______.
benchmarking
Financial ratio analysis should be conducted on three separate fronts, which include ______.
change over time, comparison to industry norms, and comparison to key competitors
Large, diversified companies that employ different strategies in different divisions are pursuing which type of strategy?
combination
The criteria in the AQCD test that relates to how a factor reveals change over time is called:
comparative
The management function of _____ is particularly important for strategy evaluation.
controlling
A value chain activity that a firm performs especially well is called a(n) ______.
core competence
Which of the following is NOT one of Porter's four types of generic strategies?
cost leadership - differentiation
Jiffy Lube International and local used car dealers offer products to a small range of customers at a low cost. They are examples of firms pursuing which of Porter's generic strategies?
cost leadership - narrow
Which of the following is a liquidity ratio?
current ratio
Which strategy allows a firm to charge a higher price for its product and to gain customer loyalty because consumers may become strongly attached to some of the product features?
differentiation
Strengths that cannot be easily matched or imitated by competitors are called _______.
distinctive competencies
Selling a division or part of an organization is called ______.
divestiture
When Gannett Company split its print-publishing business from its television/film business and sold it, the company was pursuing which strategy?
divestiture
Rebel, who works in a publically traded firm, is trying to determine what the dollar amount per share payed quarterly to stockholders should be. This is known as a(n):
dividend decision
Being a(n) _______ can be an effective strategy in industries where technology is rapidly advancing.
fast follower
Which of the following is NOT one of the levels of strategies in large firms?
financial
Which two types of objectives are especially common in organizations?
financial and strategic
For nonprofit and governmental organizations, strategic management is an important means to develop and justify requests for needed ______.
financial support
Securing access and commitment to rare resources, gaining new knowledge of critical success factors, gaining market share in the best positions, and gaining customer loyalty are benefits of which tactic?
first-mover advantage
When Kroger acquired Viatcost.com, an e-commerce seller of groceries, in order to expand into online groceries. Kroger was pursuing which strategy in this case?
forward integration
When Under Armour® signed tennis champion Andy Murray to a 4-year, $23 million deal, the firm was pursuing which strategy?
market penetration
Which intensive strategy seeks to increase market share for present products or services in present markets through greater marketing efforts?
market penetration
The subtle, elusive and largely unconscious forces that shape the workplace are captured by _______.
organizational culture
Which two management functions are most important at the strategic-management process stage of strategy implementation?
organizing and motivating
The attractiveness of a firm on equity markets is measured by which financial ratio?
price-earnings ratio
The Apple Watch as a wrist-top computer is an example of which strategy pursued by Apple?
product development
Which strategy may be pursued effectively when the firm has successful products in the maturity stage of the life cycle, the firm competes in a high-growth industry characterized by rapid technological developments, and the firm has especially strong R&D capabilities?
product development
Patty is currently running test marketing for a new soft drink her company is thinking of selling. This best exemplifies which function of marketing?
product planning
Wanda is currently purchasing online advertisements for a new watch her company has created. She is engaging in which marketing function?
promoting products
Which of the following are the 5 characteristics of objectives?
quantitative, understandable, challenging, compatible, obtainable
Which of the following is a condition that leads firms to "borrow" capabilities through joint ventures or strategic alliances?
the costs and risk of merging are too high
Backward integration can be an especially effective strategy under which of the following conditions?
the number of suppliers is small and the number of competitors is large
Which statement about diversification strategies is TRUE?
they are becoming less popular
Which of the following is TRUE of first-mover advantages?
they include securing access to rare resources
The collection of activities that leads to the ultimate price of a product is commonly referred to as a firm's ______.
value chain
______ is the process whereby a firm determines the costs associated with organizational activities from purchasing raw materials to manufacturing products to marketing those products.
value chain analysis
In which Quadrant of the Grand Strategy Matrix would we find those firms that must make some drastic changes quickly to avoid further decline and possible liquidation?
quadrant III
In which Quadrant of the Grand Strategy Matrix would we find those firms that have the strength to launch diversified programs into more promising growth areas?
quadrant IV
According to the BCG Matrix, a division that has high cash needs and low cash generation is a ______.
question mark
Successful organizations are able to achieve a portfolio of businesses positioned in which region of the IE Matrix?
region 1
Which region of the IE matrix would prescribe a hold and maintain strategy?
region 2
What are the two dimensions represented on the BCG matrix axes?
relative market share and industry growth rate
Based on the tactics of politicians, achieving ______ results with a popular strategy is generally better than trying to achieve ______ results with an unpopular strategy
satisfactory, optimal
Which of the following is NOT a benefit of being a first mover?
secure access to widely available resources
It is important that both the internal and external factors and the SO, ST, WO, and WT strategies are stated in ______ terms.
specific
The SWOT Matrix is included in which stage of the strategy-formulation analytical framework?
stage 2
According to the BCG Matrix, forward, backward, and horizontal integration; market penetration; market development; and product development are appropriate strategies to consider for ______.
stars
According to the BCG Matrix, organizations should strive to achieve a portfolio of divisions that are ______.
stars
What does the y-axis of the IE matrix represent?
the EFE total weighted scores
The two key dimensions of the IE Matrix are ______.
the IFE total weighted scores and the EFE total weighted scores
Which of the following is NOT true of the SPACE Matrix?
the axes represent four internal dimensions
Which matrix is based on the two evaluative dimensions of competitive position and market (industry) growth?
the grand strategy matrix
The strategy-formulation tool that summarizes and evaluates the major strengths and weaknesses in the functional areas of a business is ______.
the internal factor evaluation matrix
In the SPACE Matrix, the higher the frequency and magnitude of changes in a given industry, ______.
the more unstable the SP becomes
Retrenchment may be an especially effective strategy to pursue under which of the following conditions?
the organization is being pressured by stockholders to improve performance
Which of the following is TRUE of diversification strategies?
the two general types are related and unrelated
A positive feature of the QSPM is that ______.
there is no limit to the number of strategies that can be evaluated or the number of sets of strategies that can be examined at once
Which of the following is TRUE of nonprofit organizations?
they do not have shareholders that provide capital
Which of the following is TRUE of strategists in governmental organizations?
they operate with less strategic autonomy than their counterparts in private firms
Which of the following is TRUE of long-term objectives?
they should be challenging
The dollar amounts of alternative strategies should all be added to reveal a total amount of new capital needed over what time period?
three years
What is the primary purpose of a management information system?
to aid operational and strategic decision making
Which of the following is a reason for a firm to initiate a leveraged buyout (LBO)?
to avoid a hostile takeover
Which of the following has been identified as the biggest threat related to cyberthreats?
too many people having access to information unrelated to their particular job
What is the difference between the Type 3 and Type 4 levels of a differentiation strategy?
type 3 has a broad target market and type 4 has a narrow target market
Amazon.com is planning to enter the $412 billion pharmacy business. Which type of diversification does this represent?
unrelated diversification
When Mars (known for its M&M chocolates) became the world's largest pet food company, it pursued which strategy?
unrelated diversification
When is it especially important to evaluate and consider culture-strategy linkages?
when two firms merge
Which of the following strategy tools is considered a portfolio matrix?
IE matrix
Which of the following is a risk of pursuing a differentiation strategy?
The unique product may not be valued highly enough by customers to justify the higher price
A defensive strategy of the SWOT Matrix directed at reducing internal weaknesses and avoiding external threats is ______.
WT
Strategists use ______ to provide a firm with proprietary business intelligence.
business analytics
Firms positioned in Quadrant I of the Grand Strategy Matrix ______.
can take risks aggressively when necessary
Objectives and strategies are established with the intention of _____.
capitalizing on internal strengths and overcoming weaknesses.
According to the BCG Matrix, a division that has a high relative market share but competes in a low-growth industry is a _____.
cash cow
Which of the following is NOT a benefit of establishing clear objectives?
clear objectives provide the basis for creativity
Which SPACE Matrix quadrant implies staying close to the firm's basic competencies and not taking excessive risks?
conservative
Which of the following is a tactic used by politicians that can aid strategists?
consider various methods and, whenever possible, choose the one(s) that will afford the greatest commitment from employees/managers
Establishing performance standards, measuring performance, comparing with planned standards, and taking corrective actions are the components of which function of management?
controlling
Which of the following is NOT one of the types of strategies suggested by a firm's directional vector from the SPACE Matrix?
cooperative
Firms should use Value Chain Analysis (VCA) to develop and nurture a ______ competence and convert that into a distinctive competence.
core
Which of the following is an intangible resource?
culture
Which of the following is considered a leverage ratio?
debt-to-equity ratio
When a firm sells a division of the organization, it is utilizing which strategy?
divestiture
On what does market analysis focus?
evaluating customer needs
The process of performing an internal audit _______.
examines the firm's own resources and capabilities
The two internal dimensions represented on one axis of the SPACE Matrix are ______.
financial position and competitive position
What is the most widely used method for determining an organization's strengths and weaknesses in the investment, financing, and dividend areas?
financial ratio analysis
An effective means of implementing forward integration is ______.
franchising
Which of the following is NOT a traditional benefit of being a first mover?
getting security from unanticipated problems
Which matrix is based on the two evaluative dimensions of competitive position and market (industry) growth?
grand strategy matrix
Which of the following is NOT a potential benefit of merging with or acquiring another firm?
increasing managerial staff
Which of the following is NOT true of educational institutions?
international new student enrollment in the US is increasing
Which of the following is NOT one of the 5 basic activities of marketing?
inventorying products
The decision stage of the strategy-formulation analytical framework ______.
involves a single technique, the QSPM
Stage 1 of the strategy-formulation analytical framework ______.
is called the input stage
A limitation of the QSPM is that ______.
it can only be as good as the underlying input and matching matrices/analysis on which its based
Which of the following is TRUE of benchmarking?
it is used to determine whether a firms value chain is competitive compared with those of rivals
A classic study of strategic management found that successful strategists ______.
kept a low political profile on acceptable proposals
Successful strategists assign champions the responsibility for ______.
major new thrusts
The principle, "If it ain't broke, don't fix it" provides the basis for:
managing by extrapolation
What are the two dimensions used by the Grand Strategy Matrix?
market growth and competitive position
A firm that increases the number of sales associates, increases advertising expenditures, offers external sales promotion items, and increases publicity efforts is likely to be pursuing which strategy?
market penetration
Leadership is a major component of which function of management?
motivating
The IE Matrix has ______quadrants.
nine
Which of the following is an example of an appropriately stated alternative strategy in a QSPM?
open 250 new stores in china
Which of the following is an example of an appropriately stated alternative strategy in a QSPM?
open 50 new stores in the UK
Decisions about work specialization are performed in which function of management?
organizing
The sum of all weights assigned to the factors identified in the IFE Matrix must equal:
1.0
When developing an IFE Matrix, no more than ______ percent of the key factors should be financial ratios.
30%
The highest possible total weighted score for an organization on the IFE Matrix is:
4.0
The number of U.S. data breaches in the first 6 months of 2017 was estimated to be:
791
Which strategy tool is specifically designed to enhance a multidivisional firm's efforts to formulate strategies?
BCG matrix
The input stage of the strategy-formulation analytical framework includes the ______Matrix.
EFE matrix
Which technique is included in the input stage of the strategy-formulation analytical framework?
EFE matrix
Which matrix determines the relative attractiveness of feasible alternative strategies?
QSPM
Which technique is included in Stage 3 of the strategy-formulation analytical framework?
QSPM matrix
A firm's internal strengths are used to take advantage of external opportunities in which strategies?
SO
The framework that indicates whether aggressive, conservative, defensive, or competitive strategies are most appropriate for a given organization is the ___
SPACE matrix
Texas Instruments used an excellent legal department to collect almost $700 million in damages from nine foreign firms that infringed on patents for semiconductor memory chips. This is an example of which type of strategy? A.
ST
Which strategy of the SWOT Matrix uses a firm's strengths to avoid or reduce the impact of external threats?
ST
The SWOT Matrix helps managers develop all of the following strategies EXCEPT:
SW
Why is it important to consider a firm's culture in strategy and choice analysis?
because success can rest on the degree of support received from the firm's culture
The text states that perhaps the most important page in a student's strategic planning case project is his/her Recommendations Page. Why is this?
because the recommendations page will include the estimated dollar amount of the costs (or savings) of each alternative
Marketers can best use their strategic toolbox to ensure that their firm's offering delivers value to target customers when there is ______.
a clearly defined target market
What is the heart of an information system?
a database containing the kinds of records and data important to managers
Divestiture could be an effective strategy under which of the following conditions?
a division is responsible for an organizations overall poor performance
The process of generating and selecting strategies should include which of the following?
a manageable set of the most attractive strategies
Internal politics ______.
affect the choice of strategies in all organizations
Which of the following statements is true of the politics of the strategy process?
all organizations are political
What do strategy analysis and choice seek to determine?
alternative courses of action
A "blue ocean strategy" is when:
an organization aims to target a new market where competition is not yet present
Attractiveness scores in the QSPM ______.
are rational and defensible
An example of related diversification is:
Facebook acquiring the text-messaging firm WhatsApp
Which of the following is NOT a risk of pursuing a cost leadership strategy?
The unique product may not be valued highly enough by customers to justify the higher price
What ties all business functions together and provides the basis for all managerial decisions?
information
The resource-based view emphasizes the importance of ______.
internal resources
Advocates of the RBV approach to competitive advantage contend that _______.
internal resources are more important to achieving and sustaining competitive advantage.
A popular strategy that occurs when two or more companies form a temporary partnership or consortium for the purpose of capitalizing on some opportunity is a(n) ______.
joint venture
Research indicates that strategic management in small firms is most likely ______.
less formal than in large firms
Selling all of a company's assets, in parts, for their tangible worth is called ______.
liquidation
When two organizations of about equal size unite to form one enterprise, they are pursuing which strategy?
merger
Which of the following is a good guideline for indicating when market development may be an especially effective strategy?
new channels of distribution are available that are reliable, inexpensive, and of good quality
Which of the following is not cited as a desired characteristic of objectives?
open-ended
The IFE Matrix is an evaluation of the effectiveness of a firm's current strategies, but it does not take into account ______.
opportunities and threats