Management Exam 6

SkyScape, a company that manufactures computer processors, launched a new product called ChipOne. This launch was a countermove against another product launched by GreenChip, SkyScape's competitor. Which of the following strategies was used by SkyScape to defend its market share? a. An acquisition strategy b. A recovery strategy c. A response strategy d. An amalgamation strategy

A response strategy

In the context of the BCG matrix, which of the following businesses would be classified as a star? a. HappyTot b. RainTech c. RigsWheels d. PrimeSmart

PrimeSmart

According to the BCG matrix,__________are companies that have a small share of a fast-growing market. a. dogs b. stars c. cash cows d. question marks

Question Mark

Andersen Major has five strategic business units (SBUs)—technology, fashion, food and beverage, consumer products, and electronics. Its food and beverage unit has a small share in a rapidly growing sector, and the company believes that investing more money into the unit could lead to large profits in the future. In the context of the BCG matrix, which of the following categories of SBUs best describes the food and beverage unit? a. Stars b. Dogs c. Cash cows d. Question marks

Question marks

Hankson Corp. has five strategic business units (SBUs)—information technology, insurance, publishing, fine arts, and tourism. It invests the majority of its funds in the information technology unit as the unit has a large market share and generates large amounts of its profits in a fast-growing market. In the context of the BCG matrix, which of the following categories of SBUs best describes the information technology unit? a. Cash cows b. Stars c. Question marks d. Dogs

Stars

Heeleo Inc. is a television manufacturer that has been in the market for several years. Most television companies are now manufacturing LED and smart televisions as they provide more utility and a better viewing experience when compared to direct view televisions. Heeleo, however, has been reluctant to adopt new strategies because it thinks that its direct view televisions were selling well when it first started and will continue to sell the same way even if new competitors and better products enter the market. Which of the following concepts is illustrated in this scenario? a. Competitive inertia b. Competitive advantage c. Strategic dissonance d. Strategic alliance

Strategic alliance

__________are companies using an adaptive strategy that seeks to minimize risk and maximize profits by following or imitating the proven successes of prospectors. a. Reactors; b. Prospectors c. Defenders d. Analyzers

Analyzers

Winston Corp. manufactures and sells toy cars. These toy cars are perfect imitational miniature versions of real cars. Inspired by the success of Winston Corp., Neil Danon, a plastic ware manufacturer in Orowella also started manufacturing toy cars. Which of the following adaptive strategies is used by Neil Danon? a. Reactors adaptive strategy b. Analyzers adaptive strategy c. Prospectors adaptive strategy d. Defenders adaptive strategy

Analyzers adaptive strategy

Which of the following is the first step of a strategy-making process? a. Conducting situational analysis b. Assessing the need for strategic change c. Evaluating strategic alternatives d. Choosing strategic alternatives

Assessing the need for strategic change

__________is the positioning strategy of providing a product or service that is sufficiently different from competitors' offerings that customers are willing to pay a premium price for it. a. Retrenchment b. Commonality c. Diversification d. Differentiation

Differentiation

__________is one of the grand strategies that focuses on increasing profits, revenues, market share, or the number of places in which a company does business. a. Retrenchment strategy b. Growth strategy c. Stability strategy d. Recovery strategy

Growth strategy

Serrano, a clothing and apparel company, suffered major losses when one of its warehouses was destroyed in a fire mishap. In an attempt to make up for these losses, it had to sell one of its product lines to a rival company. Which of the following grand strategies was used by Serrano in this scenario? a. The retrenchment strategy b. The growth strategy c. The stability strategy d. The acquisition strategy

The retrenchment strategy

In the context of adaptive strategies, which of the following is true of defenders? a. They seek fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market. b. They do not follow a consistent strategy and tend to react to changes in their external environment after they occur. c. They try to simultaneously minimize risk and maximize profits by following or imitating the proven successes of prospectors. d. They aggressively hold their current strategic position by doing the best job they can to hold on to customers in a particular market segment.

They aggressively hold their current strategic position by doing the best job they can to hold on to customers in a particular market segment.

In the context of Porter's five industry forces, the threat of new entrants can be defined as a. a measure of the ease with which customers can find substitutes for an industry's products or services. b. a measure of the intensity of competitive behavior among companies in an industry. c. a measure of the influence that customers have on the firm's prices. d. a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry.

a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry.

Smarty Tots manufactures children's clothing and prices them at twice the price of other children's clothing brands. The clothes sell exceptionally well because customers believe that its clothes are made of non-irritant and non-allergenic fabric. Smarty Tots's competitors do not have access to this type of fabric and cannot produce the same quality of clothing. The special fabric used in the clothing gives Smarty Tots _____. a. the advantage of competitive inertia b. a sustainable competitive advantage c. the advantage of undifferentiated marketing d. an oligopolistic advantage

a sustainable competitive advantage

Brickwall Builders is a real estate builder and developer. It specializes in building premium villas, office spaces, warehouses, and retail stores. Buildings of Brickwall Builders are economical, have a high resale value, and are available at very low down payment when compared to its competitors' buildings. This scenario illustrates the concept of _____. a. distinctive competence b. core capability c. strategic dissonance d. competitive inertia

distinctive competence

Renee Farm grows genetically modified fruits and vegetables by using nutrient enriched soil and chemically enhanced fertilizers. Its products are extremely popular among health conscious individuals who believe that natural fruits and vegetables do not have adequate amount of nutrients. Renee Farm's products are popular even though their market is very niche. In the context of industry-level strategy, Renee Farm is most likely using a(n) _____. a. adaptive strategy b. divestment strategy c. focus strategy d. diversification strategy

focus strategy

A competitive advantage becomes a sustainable competitive advantage when: a. market commonality is large, and companies have overlapping products or services. b. other companies cannot duplicate the value a firm is providing to customers. c. a company uses a competitive move designed to reduce a rival's market share or profits. d. a company collaborates with its competitors to obtain a larger market share.

other companies cannot duplicate the value a firm is providing to customers.

Organizations can achieve a competitive advantage by using their resources to: a. duplicate the value a competitor firm provides to its customers. b. create strategies that are simultaneously being implemented by competitors. c. foster competitive inertia. d. provide greater value for customers than competitors can.

provide greater value for customers than competitors can.

A(n) _____ is a countermove, prompted by a rival's attack, that is designed to defend or improve a company's market share or profit. a. acquisition b. attack c. recovery d. response

response