MGMT 408 Test 1
Sony's launches of PlayStation 2, the PS3, then PS4, is an example of which concentration (intensive) strategy?
product development
seeking increased sales by improving present products or services or developing new ones
product development
merging with or acquiring competitors (usually classified as a merger or acquisition)
horizontal integration
regrouping through cost and asset reduction to reverse declining sales and profit
retrenchment
if a company builds a new manufacturing plant dedicated to producing shoes for a region, and later decides to get out of that region but can't find a buyer for the plant, the manufacturing plant might be viewed as a
Exit barrier
The formation of HP/Compaq and Daimler/Chrysler are examples of which grand strategy?
Horizontal integration
What are the strategy elements, product attributes, resource strengths, competitive capabilities, and market achievements with the greatest impact on future competitive success in the marketplace?
Key or critical success factors
A sign in a store window reads, "going out of business-everything must go" is probably an example of which grand strategy?
Liquidation
One seller
Monopoly
Many buyers and sellers, undifferentiated products, perfect information of the market
Pure Competition
Dell Computer's initial decision to start selling LCD wide-screen TV's is an example of
Related diversification
Creating a new, untapped market rather than competing with rivals in an existing market is a
Blue ocean strategy
which generic strategy is usually associated with the discount retailers such as Wal-Mart?
Cost leadership strategy
The sale of one of a firm's SBUs to a competitor, and that SBU continues to operate is a
Divestiture
What are the four categories of Grand Strategies?
Integration, intensive, diversification, defensive
What is a cluster of industry rivals that employ similar competitive approaches, have product offerings that appeal to similar types of buyers, and thus occupy similar market positions?
Strategic group
A generic strategy aimed at emphasizing the uniqueness or superiority of products and services is?
differentiation strategy
selling a division or part of an organization
divestiture
introducing present products or services into new geographic areas
market development
seeking increased market share for present products or services in present markets through greater marketing efforts
market penetration
adding new, unrelated products or services
unrelated (conglomerate) diversification
Which of the following models is used for analyzing the general external environment? a. PEST (or PESTEL) b. Porter's Five Forces c. Ansoff's matrix d. SWOT analysis e. none of the above
a
Opening or acquiring distributor or retail establishments
forward vertical integration
Few sellers, intense rivalry, "game theory"
Oligopoly
If Dell computer were to acquire Intel, it would best be described as an example of
backward vertical integration
acquiring ownership or expansion into supply chain
backward vertical integration
adding new but related products or services
related (concentric) diversification
The factors that affect a company's S/Q rating by the International Footwear Federation include: a. Expenditures to properly maintain the performance of footwear-making equipment and the percentage use of new and refurbished footwear-making equipment b. The durability of its branded and private-label footwear models; how much is spent to inspect newly-produced pairs and avoid shipping defective shoes; and the size of the footwear quality incentives paid to production workers c. The size of incentive bonuses paid to workers for defect-free workmanship; expenditures for best practices training; and whether production improvement options B and D have been installed d. Current and cumulative spending for TQM/Six Sigma quality control programs; expenditures for best practices training; and expenditures for new styling/features per model e. the number of new high-tech performance features annually built into the latest branded models/styles; expenditures for TQM/Six Sigma quality control programs; and the percentage use of new and refurbished footwear-making equipment
D
selling all of a company's assets, in parts, for their tangible worth
Liquidation
exporting products made in the US to new foreign markets is a basic example of which concentration (intensive) strategy?
Market development
marketing efforts to increase sales of existing products in existing markets in which concentration (intensive) grand strategy?
Market penetration
What are the four types of competitors in the Matrix?
Maverick, Clone, off-radar, parallel
Many buyers and sellers, fragmented market, differentiated products, imperfect information of the market
Monopolistic Competition
A company uses outside suppliers to provide services that it could perform itself (e.g. a firm might contract a professional cleaning company to come in on a regular basis to clean offices)
Outsourcing
What strategy puts emphasis on EXTERNAL factors and the Structure-Conduct-Performance Paradigm?
The Industrial Organization view
What strategy puts emphasis on INTERNAL firm resources and the VRIO framework?
The Resource-based view
Strategy formulation, strategy implementation, and ___are the steps (or phases) in the strategic management process a. strategy evaluation b. strategic planning c. decision-making d. positioning e. strategy visioning
a
The "triple bottom line" is an approach to assessing performance that emphasizes concern for a. people, planet, profit b. product, position, and performance c. structure, conduct and performance d. product, place, and profit e. none of these
a
The main question asked at corporate-level strategy is: a. What business(es) are we in/should we be in? b. Given the business(es) we are in, how should we compete? c. Where are we now? d. Where do we want to be? e. How do we get there?
a
If you offer free shipping in the internet market, the shipping and handling fees that you will have to "absorb" is how much per pair of shoes? a. 20% of the shoe's retail cost b. $2.75 c. $12.50 per pair d. $20 per par 3. None of the above
c
Which of the following is the most important competitive factor in determining a company's ability to secure contracts to supply private-label footwear to chain retailers in a particular geographic region? a. The number of private-label models/styles the company offers to supply b. Whether the company agrees to allow the celebrities it has under contract to endorse its branded footwear and also endorse the private-label footwear it supplies c. The company's price offer d. Whether the company offers to deliver the orders of chain retailers for private-label footwear in less than 2 weeks e. The company's customer service rating
c
"given the business we are in, how should we compete?" is the question asked at the ____ level
competitive (business) strategy
If Microsoft bought a chain of food retailers such as Piggly-Wiggly, it would be an example of a
conglomerate diversification
Which of the following are factors in determining a company's credit rating? a. The company's year-end cash balance, current ratio, and net profit margin b. The percentage of loans that not have been repaid, its debt-equity ratio, operating profit margin, prior-year global market share of total athletic footwear sales c. The amount of loans outstanding, its accounts payable, current ratio, and net profit margin d. Its debt-asset ratio, default risk ratio, and interest coverage ratio e. A company's stock price, earnings per share, ROE, and current ratio
d
Which of the following are the 5 measures on which a company's performance is judged/scored? a. Annual free cash flow, cumulative revenues, global market share, cumulative net profit, and ROE b. global market share, ROE, net profit, stock price, and annual cash flow from operations c. Credit rating, cumulative revenues, net profit, ROE, and the number of annual dividend increases d. Stock price, EPS, Credit rating, ROE and image rating e. Earnings per share, ROE, cumulative revenues, cumulative revenues, stock price, and credit rating
d
Which of the following is not among the 13 competitive factors that determine a particular company's unit sales and market share of branded footwear in a particular geographic region? a. the number of models/styles comprising the company's product line in that regions and the S/Q rating that the International Footwear Federation assigns to the company's brand of athletic footwear b. The average retail price the company is charging in the Internet Segment and the average wholesale price the company is charging in the Wholesale Segment c. The company image rating/brand reputation and the appeal of the celebrities the company has contracted with to endorse its footwear brand d. The length of the warranty against materials defects that the company offers buyers (30 days, 60 days, 90 days, 180 days, 1 or 2 years) e. The company's expenditures on brand advertising and search engine advertising
d
The three competitive factors that impact only Internet sales and market share in a region include a. Company expenditures for merchandising support paid to third-party online retailers b. Company expenditures for brand advertising c. The celebrity appeal ratings of the celebrities who are under contract to endorse a company's branded footwear via videos, pictures, and commentary posted prominently at numerous locations on its website d. The S/Q rating of the branded footwear being sold at each company's website e. The average retail price charged at each company's website
e
Difficulties encountered by trying to "reposition" a brand in the market (e.g. moving "upscale") are examples of a
mobility barrier
The name given to Michael Porter's group of strategies used at the competitive (business) strategy level
Generic Strategies
The company's shipments of newly-produced branded and private-label footwear from its plants to its regional distribution center are subject to a. Any applicable import tariffs and exchange rate adjustments b. 1-million pair import quotas on shipments from foreign plants to Europe-Africa and Asia-Pacific and exchange rate shifts of as high as 5% c. Export fees equal to 10% of the manufacturing costs of the pairs shipped and exchange rate shifts of as high as 25% d. tariffs of $6 per pair and shipping fees of $2 per pair e. Shipping charges of $3 per pair on all pairs shipped from one region to another region and exchange rate shifts of as high as 10%
a
the internet boom of the 1990s is an example of a. Shumpterian Shock b. Dynamic Capability c. Environmental Determinism d. a Gausian Principle e. Causal Ambiguity
a
A "3 firm concentration ratio of 80%" would mean a. The industry is highly fragmented b. the industry is highly concentrated c. The market structure is most likely monopolistic competition d. both a and c e. none of the above
b
A health drink company is known for launching drinks with flavors which are different from what are offered in the market. It regularly indulges in experimentation to come up with new and exotic flavored drinks. It is also able to charge prices that are higher than what other health drink companies charge. What advantage would the company enjoy because of the strategy it follows? a. It can depend on its ability to reduce the price to drive competition out of the market b. It has an ability to obtain premium prices from customers c. Customers always prefer a product with features rather than a cheaper alternative d. It does not need to spend significant funds on advertising e. Customers are always eager to pay extra to obtain the unique features that a firm is trying to build its strategy around
b
Sony's and Apple's ability to innovate to "reinvent" existing ways of doing things is known as_____ a. diversification b. creative destruction c. product augmentation d. imagineering
b
Which of the following is the most important factor in determining a company's unit sales and market share of private-label footwear in a particular geographic region? a. The amount of merchandising support provided to retailers b. The company's bid price c. The number of models/styles comprising the company's product line d. The appeal of the celebrities signed to endorse the company's footwear e. Whether the company's private-label footwear has a higher S/Q rating than the footwear of rival private-label manufacturers
b
Which of the following is true concerning mail-in rebates? a. The higher the rebate offer, the lower the redemption rate b. The higher the rebate offer, the higher the redemption rate c. rebates the allowed in the North America market only d. The maximum rebate amount is $20 per pair e. all of the above except b are true
b
A theoretical perspective that contends that organizations are limited in their ability to adapt to the conditions around them is: a. enactment b. resource-based view c. institutional theory d. environmental determinism e. transaction-cost economics
d
An approach to assessing performance that targets makers' attention on four areas: (1) financial, (2) customer, (3) internal business process, and (4) learning and growth is a tool called ____? a. competitive profile matrix b. SWOT analysis c. critical success factor analysis d. balanced scorecard e. QUEST analysis
d
Perceptual (or position) mapping is used to: a. identify strategic groups of competitors b. identify "gaps" in the market c. identify industry competitors' position in the market d. All of the above
d
Which is true concerning the S/Q rating? a. It is the same for all shoes coming from a particular factory, no matter where the shoes are sold b. It doesn't matter where the shoes are manufactured, it is only the market's perception of quality that determines the S/Q rating c. S/Q rating are based entirely on the percent of superior materials used to make a shoe d. A company may have as many as 8 different S/Q ratings in a year e. None of the above are true concerning S/Q ratings
d
Which of the following are components of the total compensation package for production workers at a company's production facilities? a. Weekly salary, fringe benefits, year-end bonuses tied to the number of non-defective pairs produced any overtime pay b. weekly base salary, bonuses for meeting or beating productivity quotas, fringe benefits, and any overtime pay c. Monthly base pay, perfect attendance bonuses at best practices training programs, fringe benefits, and an overtime pay d. Hourly wages, fringe benefits, and overtime pay e. Base wages, fringe benefits, incentive payments per non-defective pair produced, and overtime pay
e
When a shoe manufacturer opens a company-owned retail store, it is an example of
forward vertical integration
