MGMT EXAM 2 Ch 8
Semway, a regional bank, recently announced that it would soon begin offering financial planning services. This is an example of which of these? A. Related diversification B. Unrelated diversification C. Cross-functional diversification D. Product line diversification E. Industry diversification
A. Related diversification
When Philip-Morris, the tobacco giant, bought Kraft, Inc., it was pursuing a _____. A. corporate-level strategy B. business-level strategy C. functional-level strategy D. multidomestic strategy E. retrenchment strategy
A. corporate-level strategy
Sears' decision to sell off much of its financial services division is an example of a: A. corporate-level strategy. B. business-level strategy. C. functional-level strategy. D. growth strategy. E. stability strategy.
A. corporate-level strategy.
All of the following are Porter's competitive forces except: A. differentiation. B. bargaining power of buyers. C. bargaining power of suppliers. D. threat of substitute products. E. potential new entrants.
A. differentiation.
When properly managed, _____ can create additional value with existing resources, providing a big boost to the bottom line. A. synergy B. competitors C. government contacts D. command structure E. cooperation among customers
A. synergy
A corporate-level strategy is concerned with the question: A. what business are we in? B. how do we compete? C. how do we support our chosen strategy? D. where do we market our products? E. should we promote from within?
A. what business are we in?
When an organization expands into a totally new line of business, it is implementing a strategy of: A. Related diversification B. Unrelated diversification C. Cross-functional diversification D. Product line diversification E. Industry diversification
B. Unrelated diversification
_____ can be defined as the combination of benefits received and costs paid by the customer. A. Organizational benefits B. Value C. Cost-benefit diversity D. Synergy E. Core competence
B. Value
Double Click, Inc. has a number of strategic business units. Their hand-held computer unit has a large market share in this rapidly growing industry. Their hand-held computer business would be classified as: A. a dog. B. a star. C. a question mark. D. a cash cow. E. stuck in the middle.
B. a star.
How business units and product lines fit together in a logical way is the essence of: A. business-level strategy. B. portfolio strategy. C. competitive strategy. D. financial strategy. E. functional strategy.
B. portfolio strategy.
The condition that exists when the organization's parts interact to produce a joint effect that is greater than the sum of the parts acting alone is known as: A. core competence. B. synergy. C. value creation. D. business-level strategy. E. multidomestic strategy.
B. synergy.
Which of the following is NOT one of Porter's competitive forces? A. Potential new entrants B. Bargaining power of suppliers C. Bargaining power of stockholders D. Bargaining power of customers E. Rivalry among competitors
C. Bargaining power of stockholders
The BCG matrix organizes along which of the following dimensions? A. Market share and profit B. Sales and market share C. Business growth rate and market share D. Business growth rate and profit E. Sales and profits
C. Business growth rate and market share
Which of the following pertains to the organization as a whole? A. Business-level strategy B. Functional-level strategy C. Corporate-level strategy D. Operational-level strategy E. Competitive-level strategy
C. Corporate-level strategy
Which of the following strategies would be appropriate when the need for both national responsiveness and global integration is low? A. Globalization B. Multidomestic C. Export D. Transnational E. Import
C. Export
Which of these questions is central to a functional-level strategy? A. What business are we in? B. How do we compete? C. How do we support our chosen strategy? D. What business do we buy? E. Where to market our products?
C. How do we support our chosen strategy?
_____ refers to the use of managerial tools to direct resources toward the achievement of strategic goals. A. Strategy formulation B. Strategy coordination C. Strategy execution D. Strategy control E. Strategy planning
C. Strategy execution
Which of the following refers to a strategy that combines global coordination to attain efficiency with flexibility to meet specific needs in various countries? A. Domestic strategy B. Global strategy C. Transnational strategy D. Multidomestic strategy E. Region design strategy
C. Transnational strategy
Paramount, Inc. is particularly concerned about pending legislation in Congress that would further regulate their organization. This legislation would be classified as a(n) _____. A. external opportunity B. internal strength C. external threat D. external weakness E. congressional chaos
C. external threat
The set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals is known as: A. strategy formulation. B. strategic planning. C. strategic management. D. strategy implementation. E. strategy evaluation.
C. strategic management.
Which of the following is a business activity that an organization does especially well relative to its competition? A. Strategy B. Synergy C. Cash cow D. Core competence E. Multidomestic
D. Core competence
Which of the following lists the strategic management process in proper order? A. Formulate strategy; Evaluate strategy; Perform SWOT analysis; Define new mission/goals; Execute strategy; Control strategy. B. Perform SWOT analysis; Evaluate current mission/goals; Formulate strategy; Execute strategy; Define new mission/goals. C. Evaluate current mission/goals; Define new mission/goals; Formulate strategy; Execute strategy; Perform SWOT analysis . D. Evaluate current mission/goals; Perform SWOT analysis; Define new mission/goals; Formulate strategy; Execute strategy. E. Define new mission/goals; Execute strategy; Formulate strategy; Evaluate new mission/goals; Perform SWOT analysis.
D. Evaluate current mission/goals; Perform SWOT analysis; Define new mission/goals; Formulate strategy; Execute strategy.
Which of these is true about the cash cow? A. It generates tremendous profits in a rapidly growing industry. B. It has a small market share in a rapidly growing industry. C. It has a small market share in a slow growth industry. D. It has a large market share in a slow growth industry. E. It is generally a dead business that should be divested.
D. It has a large market share in a slow growth industry.
_____ refers to the modification of product design and advertising strategies to suit the specific needs of individual countries. A. Domestic strategy B. Global strategy C. Transnational strategy D. Multidomestic strategy E. Market design strategy
D. Multidomestic strategy
When AT&T decided to buy Media One, a cable company, it was pursuing a(n) _____ strategy. A. functional-level B. internal growth C. multi-domestic D. corporate-level E. business-level
D. corporate-level
Classy Clay has extremely creative employees who, in the opinion of the organization, keep the company ahead of the competition. The creativity of these employees would be classified as a(n) _____. A. internal weakness B. external opportunity C. external strength D. internal strength E. neutral factor
D. internal strength
When Coca-Cola introduced Surge, a new citrus soft-drink, what type of strategy was being pursued? A. Functional-level strategy B. Multi-domestic strategy C. Corporate-level strategy D. Retrenchment strategy E. Business-level strategy
E. Business-level strategy
_____ level strategy pertains to the major functional departments within the business unit. A. Operational B. Corporate C. National D. Business E. Functional
E. Functional
The _____ function recruits selects, trains, transfers, promotes, and lays off employees to achieve strategic goals. A. production B. leadership C. information and control systems D. structural design E. human resource
E. human resource
The plan of action that prescribes resource allocation and other activities for dealing with the environment and helping the organization attain its goals is known as a(n) _____. A. goal B. objective C. mission D. vision E. strategy
E. strategy
Business-level strategies include all of the major functions, including finance, research and development, marketing, and manufacturing
False
Core competence is the plan of action that prescribes resource allocation and other activities for dealing with the environment.
False
Cost leadership is a type of competitive strategy with which the organization seeks to distinguish its products or services from that of competitors
False
Front-line managers have the final responsibility for strategic planning.
False
In a turbulent business climate, managers should focus on strategic stability rather than flexibility.
False
Strategy implementation involves the planning and decision making that lead to the establishment of the firm's goals.
False
The "How do we compete?" question concerns functional-level strategy
False
The three levels of strategy are business, corporate, and global
False
The transnational strategy handles markets independently for each country.
False
Threats are characteristics of the internal environment that may prevent the organization from achieving its strategic goals.
False
With a multidomestic strategy, a company will achieve the globalization or standardization of marketing and production approaches.
False
A director of finance would most likely be interested in executing functional level strategies.
True
Differentiation, cost leadership, and focus are three of Porter's competitive strategies
True
The task environment sectors are the most relevant to strategic behavior and include the behavior of competitors, customers, suppliers, and the labor supply.
True
