Chapter 7 quiz

Yahoo! has a business strategy that creates revenue by selling ads. Yahoo! uses a(n) ____ strategy.

deliberate

Which of the following is NOT an international business strategy?

intercontinental

St. Luke's Hospital started offering deeply discounted computerized tomography (CT) scans for smokers worried about lung cancer. St. Luke's willingness to change the price is an example of change in

resource deployment

Which of the following is NOT an example of a basis of relatedness for implementing related diversification?

similar human resources

For years, the Tabasco Company used a(n) ____ strategy and manufactured only its famous hot sauce.

single-product

In a small community in Michigan, there are two funeral homes. One of them clips all pictures from the local paper, laminates them, and mails them to the person photographed with a brief note. This is an attempt to build positive relations with potential customers during happy times. If the other funeral home chose to make similar customer contact, the competitors would have

strategic imitation

The Windows operating system is used in 90% of the world's PCs. Microsoft has an international

strength

Which of the following companies is noted primarily for employing an overall cost leadership strategy?

Walmart

The starting point in formulating strategies is usually

SWOT analysis

Ralston-Purina's products include a number of old standbys, but a large percentage of its revenues comes from products that did not exist five years ago. Ralston-Purina's approach represents a prospector strategy.

True

Fort Howard Paper Company has a cost-saving manufacturing process that its competitors cannot imitate. Fort Howard Paper enjoys

a sustained competitive advantage.

Assuming an SBU retained its share of the market, how would it be classified if it was a star and its market subsequently became a low-growth market?

cash cow

Hewlett Packard has a large share of the slowly growing PC market. This is an example of a

cash cow

Philip Morris markets Marlboro cigarettes, the number-one selling cigarette brand in the world. Outside the United States, Marlboro generates huge profits that Philip Morris uses to support other less successful SBUs. According to the BCG matrix, Marlboro is an example of a

cash cow

A(n) ____ strategy is a pattern of action that develops over time in an organization in the absence of missions and goals, or despite missions and goals.

emergent

Emergent strategies are ineffective and should be avoided.

false

Strategic formulation is the set of processes involved in executing strategic plans.

false

The implementation stage focuses on what the strategy is

false

Using the Boston Consulting Group matrix, SBUs are classified on the basis of

market share and market growth rate

Porsche Automobil Holding and Volkswagen once owned each other's stock and planned to integrate the companies later. This diversification strategy is ____.

merger