Bus Policy Quiz 5 & 6
Which of these is a limitation of QSPM?
It requires intuitive informed judgements
Which strategy would be effective when the stockholders of a firm can minimize their losses by selling the organization's assets?
Liquidation
Which of the following is NOT one of the steps involved in constructing a SWOT Matrix?
List the firm's external weaknesses
Selling all of a company's assets, in parts, for their tangible worth is called
liquidation
The act of oversight and direction for an organization is referred to as
governance
When a domestic company first begins to export to India, it is an example of
market development
Mergers and acquisitions are created for all of the following reasons EXCEPT to
shift company profits to the United Stated from countries with low corporate tax rates
The match an organization makes between its internal resources and skills and the opportunities and risks created by its external factors can be defined as
strategy
Amazon's start of rapid delivery services in some U.S. cities is an example of which type of strategy?
Forward integration
Websites that sell products directly to consumers are examples of which type of strategy?
Forward integration
What refers to a strategy of seeking ownership of, or increased control over a firm's competitors?
Horizontal integration
Firms located in which quadrant of the Grand Strategy Matrix are in an excellent strategic position?
I
Although a firm positioned in Quadrant _____ of the Grand Strategy Matrix is in a growing industry, it is unable to compete effectively and needs to determine why the firm's current approach is ineffective and how to best change to improve competitiveness.
II
Which section of the SWOT Matrix involves matching internal strengths with external opportunities?
The SO cell
What is the highest number of strategies that can be examined at one time wit the QSPM?
There is no limit
Which strategies aim at improving internal weaknesses by taking advantage of external opportunities?
WO
Which strategies are defensive tactics directed at reducing internal weaknesses and avoiding external threats?
WT
When the private equity (PE) firm Clayton, Dubilier & Rice Bridal from the PE firm Leonard Green & Partner LP this is was an example of
a secondary buyout
All of the following are principles of good organizational governance, as established by BusinessWeek, EXCEPT
at least three directors are current or former company executives
In the BCG Matrix, a division with a high relative market share position in a low-growth industry can be described as a
Cash Cow
The Family Farmer Bankruptcy Act of 1986 created which of the major types of bankruptcy?
Chapter 12
Which chapter of the bankruptcy code applies to municipalities?
Chapter 9
What type of strategies would you recommend when a firm's SPACE Matrix directional vector has the coordinates (-2, +3)?
Conservative
Procter & Gamble's (P&G) sale of many of its brands in order to focus on its core brands is an example of which type of strategy?
Divestiture
Which term refers to selling a division or part of an organization?
Divestiture
Which level of strategy is most likely NOT present in small firms?
Divisional
A pasta manufacturer's purchase of some pet food brands is an example of
unrelated diversification
Yum Brands owns
virtually all of its outside-U.S. restaurants.
Backward integration is effective in all of these cases EXCEPT
when the advantages of stable prices are not particularly important
Which analytical tool determines the relative attractiveness of various strategies based on the extent to which key external and internal critical success factors are capitalized upon or improved?
Quantitative Strategic Planning Matrix (QSPM)
Which matrix is included in the decision stage of the strategy formulation framework?
Quantitative Strategic Planning Matrix (QSPM)
Which strategy-formulation technique reveals the relative attractiveness of alternative strategies and thus provides an objective basis for selecting specific strategies?
Quantitative Strategic Planning Matrix (QSPM)
Which strategy is effective when new, but unrelated, products could be offered at highly competitive prices?
Related diversification
Which board of director's duty falls under the category of control and oversight over management?
Select the CEO
Forward integration would be an appropriate strategy for which of the following types of divisions in the Boston Consulting Group (BCG) Matrix
Star
When companies are hired by other companies to take over functional operations such as human resources, information systems, payroll, accounting, or customer service, this is called
outsourcing
What principle is based on the belief that the true measure of a really good strategist is the ability to solve problems?
Managing by crisis
Gap's opening of its first five stores in China is an example of which type of strategy?
Market development
According to the Grand Strategy Matrix, which strategy is recommended for a firm with rapid market growth and a strong competitive position?
Market penetration
Which of these is NOT a SPACE Matrix quadrant?
Offensive
