Chapter 9 Quiz
A trucking company that grows by purchasing a chain of gasoline stations is engaged in horizontal integration.
False
Activities that an organization does well or resources that it has available are called capabilities.
False
Diversification is an example of a corporate retrenchment strategy.
False
Exceptional or unique organizational resources are known as core capabilities.
False
If Burger King were to buy out Mom and Pop's Burgers, Burger King would be growing by vertical integration.
False
Managers using the strategic management process always achieve positive outcomes.
False
Stars, one of the four business groups in the BCG matrix, are characterized by low growth and low market share.
False
The final step in the strategic management process is implementing the objectives.
False
The first step in the strategic management process is analyzing the external environment.
False
When conducting a SWOT analysis, threats are activities the organization doesn't do well or resources it needs but doesn't possess.
False
Within an organization, the single independent businesses that formulate their own competitive strategies are known as strategic business units.
True
A SWOT analysis includes an analysis of an organization's environmental opportunities and threats.
True
A business model describes how a company is going to make money.
True
A company that competes by offering unique products that are widely valued by customers is following a differentiation strategy.
True
A retrenchment strategy is a short-run renewal strategy that helps an organization stabilize operations, revitalize organizational resources and capabilities, and prepare to compete once again.
True
A stability strategy is an organizational strategy in which an organization maintains the status quo.
True
A turnaround strategy is a type of renewal strategy used when an organization is in serious trouble.
True
Corporate strategies determine what business a company is in or wants to be in, and what it wants to do with those businesses.
True
Evaluating an organization's intangible assets is part of conducting an internal analysis in the strategic management process.
True
The BCG matrix evaluates an organization's various businesses to identify which ones offer high potential and which ones drain organizational resources.
True
