Question 1

What are the strategies to avoid proposed by the authors?

Accepted Answer

The strategies to avoid are as follows:
1. Follow the leader. Imitating a leading competitor's strategy might seem to be a good idea, but it ignores a firm's particular strengths and weaknesses and the possibility that the leader may be wrong.
2. Hit another home run. If a company is successful because it pioneered an extremely successful product, it tends to search for another super product that will ensure growth and prosperity.
3. Arms race. Entering into a spirited battle with another firm for increased market share might increase sales revenue, but that increase will probably be more than offset by increases in advertising, promotion, R&D, and manufacturing costs.
4. Do everything. When faced with several interesting opportunities, management might tend to leap at all of them. At first, a corporation might have enough resources to develop each idea into a project, but money, time, and energy are soon exhausted as the many projects demand large infusions of resources.
5. Losing hand. A corporation might have invested so much in a particular strategy that top management is unwilling to accept its failure. Believing that it has too much invested to quit, the corporation continues to throw "good money after bad."

Question 2

Which of the following reflects the impact of industry backgrounds on strategic choices?

Accepted Answer

A)  Executives from other industries tend to make riskier decisions. 
B)  Executives with strong ties within an industry tend to choose strategies commonly used in that industry. 
C)  Executives from other industries tend to downsize as a first choice. 
D)  Executives with strong ties within an industry tend to make riskier decisions. 
E)  Executives from other industries tend to emphasize ROI. 
A)  Executives from other industries tend to make riskier decisions. 
B)  Executives with strong ties within an industry tend to choose strategies commonly used in that industry. 
C)  Executives from other industries tend to downsize as a first choice. 
D)  Executives with strong ties within an industry tend to make riskier decisions. 
E)  Executives from other industries tend to emphasize ROI. B

Question 3

Which type of pricing attempts to hasten market development and offers the pioneer the opportunity to utilize the experience curve to gain market share with a low price and dominate the industry?

Accepted Answer

A)  demand pricing 
B)  competitive pricing 
C)  skim pricing 
D)  penetration pricing 
E)  loss-leader pricing 
A)  demand pricing 
B)  competitive pricing 
C)  skim pricing 
D)  penetration pricing 
E)  loss-leader pricing D

Question 4

A company which has invested so heavily in a particular strategy that it will not consider a change in this strategy even if it is not successful, would be an example of which strategy to avoid?

Accepted Answer

A)  follow the leader 
B)  hit another home run 
C)  arms race 
D)  do everything 
E)  losing hand 
A)  follow the leader 
B)  hit another home run 
C)  arms race 
D)  do everything 
E)  losing hand

Question 5

Discuss W. Edwards Deming's position on sole sourcing.

Accepted Answer

W. Edwards Deming strongly recommended s

Question 6

Which of the following is not one of the major outsourcing errors that should be avoided?

Accepted Answer

A)  failure to keep core activities in-house 
B)  selecting the wrong vendor 
C)  writing a poor contract 
D)  micromanaging the outsourced activity to maintain control 
E)  overlooking personnel issues 
A)  failure to keep core activities in-house 
B)  selecting the wrong vendor 
C)  writing a poor contract 
D)  micromanaging the outsourced activity to maintain control 
E)  overlooking personnel issues

Question 7

Risk in strategic management is only the probability that the strategy will be effective.

Accepted Answer

A) True 
 B)False

Question 8

Equity financing is preferred for unrelated diversification while debt financing is preferred for related diversification.

Accepted Answer

A) True 
 B)False

Question 9

The automobile industry is currently experimenting with the strategy of mass customization in which pre-assembled sub-assemblies are delivered as they are needed to a company's assembly line workers.

Accepted Answer

A) True 
 B)False

Question 10

There is mounting evidence that when an organization is facing a dynamic environment, the best strategic decisions are arrived at through consensus when everyone agrees on one alternative.

Accepted Answer

A) True 
 B)False

Question 11

When components are standardized and each machine functions like a job shop but is positioned in the same order as the parts are processed, this setup is known as

Accepted Answer

A)  mass customization. 
B)  connected line batch flow. 
C)  connected job flow. 
D)  mass batch flow. 
E)  mass job flow. 
A)  mass customization. 
B)  connected line batch flow. 
C)  connected job flow. 
D)  mass batch flow. 
E)  mass job flow.

Question 12

An operations strategy determines how and where a product or service is to be manufactured, the level of vertical integration in the production process, the deployment of physical resources, and relationships with suppliers.

Accepted Answer

A) True 
 B)False

Question 13

Church & Dwight uses the line extension strategy when they put the Arm & Hammer name on various new food products.

Accepted Answer

A) True 
 B)False

Question 14

A company, such as Church & Dwight, follows the market development strategy of developing new uses and/or markets for current products such as for its successful product: Arm & Hammer brand baking soda.

Accepted Answer

A) True 
 B)False

Question 15

A corporation might have invested so much in a particular strategy that top management is unwilling to accept its failure. This is an example of which strategy to avoid?

Accepted Answer

A)  follow the leader 
B)  hit another home run 
C)  arms race 
D)  do everything 
E)  losing hand 
A)  follow the leader 
B)  hit another home run 
C)  arms race 
D)  do everything 
E)  losing hand

Question 16

The use of the Internet to market goods directly to the customer allows a company to use dynamic pricing.

Accepted Answer

A) True 
 B)False

Question 17

What does a financial strategy examine?

Accepted Answer

A financial strategy examines the financ

Question 18

The purchasing strategy used by an automobile manufacturer when it orders seats for a specific car model from several vendors is

Accepted Answer

A)  sole sourcing. 
B)  multiple sourcing. 
C)  just-in-time sourcing. 
D)  backup sourcing. 
E)  parallel sourcing. 
A)  sole sourcing. 
B)  multiple sourcing. 
C)  just-in-time sourcing. 
D)  backup sourcing. 
E)  parallel sourcing.

Question 19

According to a recent survey by Deloitte Consulting, the most popular outsourced activity was

Accepted Answer

A)  marketing. 
B)  sales. 
C)  finance. 
D)  R&D. 
E)  information technology. 
A)  marketing. 
B)  sales. 
C)  finance. 
D)  R&D. 
E)  information technology.

Question 20

All of the following are benefits for a company to raising its debt levels EXCEPT

Accepted Answer

A)  deter takeover attempts by other firms. 
B)  improve productivity. 
C)  improve cash flows. 
D)  force management to focus on core businesses. 
E)  improve strategic options available. 
A)  deter takeover attempts by other firms. 
B)  improve productivity. 
C)  improve cash flows. 
D)  force management to focus on core businesses. 
E)  improve strategic options available.

What are the strategies to avoid proposed by the authors?

Which of the following reflects the impact of industry backgrounds on strategic choices?

Which type of pricing attempts to hasten market development and offers the pioneer the opportunity to utilize the experience curve to gain market share with a low price and dominate the industry?

A company which has invested so heavily in a particular strategy that it will not consider a change in this strategy even if it is not successful, would be an example of which strategy to avoid?

Discuss W. Edwards Deming's position on sole sourcing.

Which of the following is not one of the major outsourcing errors that should be avoided?

Risk in strategic management is only the probability that the strategy will be effective.

Equity financing is preferred for unrelated diversification while debt financing is preferred for related diversification.

The automobile industry is currently experimenting with the strategy of mass customization in which pre-assembled sub-assemblies are delivered as they are needed to a company's assembly line workers.

There is mounting evidence that when an organization is facing a dynamic environment, the best strategic decisions are arrived at through consensus when everyone agrees on one alternative.

When components are standardized and each machine functions like a job shop but is positioned in the same order as the parts are processed, this setup is known as

An operations strategy determines how and where a product or service is to be manufactured, the level of vertical integration in the production process, the deployment of physical resources, and relationships with suppliers.

Church & Dwight uses the line extension strategy when they put the Arm & Hammer name on various new food products.

A company, such as Church & Dwight, follows the market development strategy of developing new uses and/or markets for current products such as for its successful product: Arm & Hammer brand baking soda.

A corporation might have invested so much in a particular strategy that top management is unwilling to accept its failure. This is an example of which strategy to avoid?

The use of the Internet to market goods directly to the customer allows a company to use dynamic pricing.

What does a financial strategy examine?

The purchasing strategy used by an automobile manufacturer when it orders seats for a specific car model from several vendors is

According to a recent survey by Deloitte Consulting, the most popular outsourced activity was

All of the following are benefits for a company to raising its debt levels EXCEPT

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters

Exam 8: Strategy Formulation: Functional Strategy and Strategic Choice

What are the strategies to avoid proposed by the authors?

Which of the following reflects the impact of industry backgrounds on strategic choices?

Which type of pricing attempts to hasten market development and offers the pioneer the opportunity to utilize the experience curve to gain market share with a low price and dominate the industry?

A company which has invested so heavily in a particular strategy that it will not consider a change in this strategy even if it is not successful, would be an example of which strategy to avoid?

Discuss W. Edwards Deming's position on sole sourcing.

Which of the following is not one of the major outsourcing errors that should be avoided?

Risk in strategic management is only the probability that the strategy will be effective.

Equity financing is preferred for unrelated diversification while debt financing is preferred for related diversification.

The automobile industry is currently experimenting with the strategy of mass customization in which pre-assembled sub-assemblies are delivered as they are needed to a company's assembly line workers.

There is mounting evidence that when an organization is facing a dynamic environment, the best strategic decisions are arrived at through consensus when everyone agrees on one alternative.

When components are standardized and each machine functions like a job shop but is positioned in the same order as the parts are processed, this setup is known as

An operations strategy determines how and where a product or service is to be manufactured, the level of vertical integration in the production process, the deployment of physical resources, and relationships with suppliers.

Church & Dwight uses the line extension strategy when they put the Arm & Hammer name on various new food products.

A company, such as Church & Dwight, follows the market development strategy of developing new uses and/or markets for current products such as for its successful product: Arm & Hammer brand baking soda.

A corporation might have invested so much in a particular strategy that top management is unwilling to accept its failure. This is an example of which strategy to avoid?

The use of the Internet to market goods directly to the customer allows a company to use dynamic pricing.

What does a financial strategy examine?

The purchasing strategy used by an automobile manufacturer when it orders seats for a specific car model from several vendors is

According to a recent survey by Deloitte Consulting, the most popular outsourced activity was

All of the following are benefits for a company to raising its debt levels EXCEPT

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters