Question 1

Companies are avoiding outsourcing more and more because it is more expensive than traditional methods and it does not allow a firm to concentrate on core competencies.

Accepted Answer

A) True 
 B)False

Question 2

What percentage of McDonald's restaurants are actually owned by the McDonald's corporation?

Accepted Answer

A) 35 percent 
B) 55 percent 
C) 63 percent 
D) 23 percent 
E) 43 percent 
A) 35 percent 
B) 55 percent 
C) 63 percent 
D) 23 percent 
E) 43 percent

Question 3

Which of the following is most likely not included in the functional level of a small company?

Accepted Answer

A) Finance 
B) Human resource managers 
C) R & D 
D) Marketing 
E) Department managers 
A) Finance 
B) Human resource managers 
C) R & D 
D) Marketing 
E) Department managers

Question 4

Market penetration,market development,product development and joint venture are intensive strategies.

Accepted Answer

A) True 
 B)False

Question 5

A cost leadership strategy can be especially effective when most buyers use the product in the same way.

Accepted Answer

A) True 
 B)False

Question 6

Which strategy should be implemented when a division is responsible for an organization's overall poor performance?

Accepted Answer

A) Backward integration 
B) Cost leadership 
C) Forward integration 
D) Divestiture 
E) Related diversification 
A) Backward integration 
B) Cost leadership 
C) Forward integration 
D) Divestiture 
E) Related diversification

Question 7

Which of these strategies is effective when the number of suppliers is small and the number of competitors is large?

Accepted Answer

A) Conglomerate diversification 
B) Forward integration 
C) Concentric diversification 
D) Horizontal diversification 
E) Backward integration 
A) Conglomerate diversification 
B) Forward integration 
C) Concentric diversification 
D) Horizontal diversification 
E) Backward integration

Question 8

Retrenchment would be an effective strategy when an organization

Accepted Answer

A) is one of the stronger competitors in a given industry. 
B) has decided to capitalize on opportunities,maximize threats,take advantage of strengths and overcome weaknesses. 
C) is plagued by inefficiency,low profitability,poor employee morale and pressure from stockholders to improve performance. 
D) does not have a clearly distinctive competence and has failed to meet its objectives and goals consistently over time. 
E) has shrunk so quickly that major internal reorganization is needed. 
A) is one of the stronger competitors in a given industry. 
B) has decided to capitalize on opportunities,maximize threats,take advantage of strengths and overcome weaknesses. 
C) is plagued by inefficiency,low profitability,poor employee morale and pressure from stockholders to improve performance. 
D) does not have a clearly distinctive competence and has failed to meet its objectives and goals consistently over time. 
E) has shrunk so quickly that major internal reorganization is needed.

Question 9

Under which condition would a differentiation strategy be especially effective?

Accepted Answer

A) When the industry has many different niches and segments,thereby allowing a company to pick a competitively attractive niche suited to its own resources. 
B) When industry leaders do not consider the niche to be crucial to their own success. 
C) When the target market niche is large,profitable and growing. 
D) When technological change is fast paced and competition revolves around rapidly evolving product features. 
E) When few,if any,other rivals are attempting to specialize in the same target segment. 
A) When the industry has many different niches and segments,thereby allowing a company to pick a competitively attractive niche suited to its own resources. 
B) When industry leaders do not consider the niche to be crucial to their own success. 
C) When the target market niche is large,profitable and growing. 
D) When technological change is fast paced and competition revolves around rapidly evolving product features. 
E) When few,if any,other rivals are attempting to specialize in the same target segment.

Question 10

Financial objectives involve all of the following except

Accepted Answer

A) higher dividends. 
B) growth in revenues. 
C) a rising stock price. 
D) larger market share. 
E) greater return on investment. 
A) higher dividends. 
B) growth in revenues. 
C) a rising stock price. 
D) larger market share. 
E) greater return on investment.

Question 11

Unrelated diversification is an appropriate strategy when an organization's present channels of distribution can be used to market the new products to current customers.

Accepted Answer

A) True 
 B)False

Question 12

What refers to a strategy of seeking ownership of or increased control over a firm's competitors?

Accepted Answer

A) Forward integration 
B) Horizontal integration 
C) Conglomerate diversification 
D) Concentric diversification 
E) Backward integration 
A) Forward integration 
B) Horizontal integration 
C) Conglomerate diversification 
D) Concentric diversification 
E) Backward integration

Question 13

The Family Farmer Bankruptcy Act of 1986 created

Accepted Answer

A) Chapter 12. 
B) Chapter 13. 
C) Chapter 8. 
D) Chapter 9. 
E) Chapter 7. 
A) Chapter 12. 
B) Chapter 13. 
C) Chapter 8. 
D) Chapter 9. 
E) Chapter 7.

Question 14

Out of the wordld's 300 largest private equity firms in 2010,sixty were from the Arab world.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a reason joint ventures fail?

Accepted Answer

A) The venture may not be supported equally by both partners. 
B) Managers who must collaborate daily in operating the venture are not involved in forming or shaping the venture. 
C) The venture may begin to compete more with one of the partners than the other. 
D) Stakeholders from both partners are equally satisfied. 
E) The venture may benefit the partnering companies but may not benefit the customers who then complain about poorer service or criticize the companies in other ways. 
A) The venture may not be supported equally by both partners. 
B) Managers who must collaborate daily in operating the venture are not involved in forming or shaping the venture. 
C) The venture may begin to compete more with one of the partners than the other. 
D) Stakeholders from both partners are equally satisfied. 
E) The venture may benefit the partnering companies but may not benefit the customers who then complain about poorer service or criticize the companies in other ways.

Question 16

Liquidation is often appropriate when retrenchment and divestiture have failed.

Accepted Answer

A) True 
 B)False

Question 17

A low cost focus strategy can be especially attractive when the target market niche is small.

Accepted Answer

A) True 
 B)False

Question 18

All of the following situations are conducive to market development except

Accepted Answer

A) when new untapped or unsaturated markets exist. 
B) when an organization's basic industry is becoming rapidly global in scope. 
C) when an organization is very successful at what it does. 
D) when an organization competes in a high- growth industry. 
E) when an organization has excess production capacity. 
A) when new untapped or unsaturated markets exist. 
B) when an organization's basic industry is becoming rapidly global in scope. 
C) when an organization is very successful at what it does. 
D) when an organization competes in a high- growth industry. 
E) when an organization has excess production capacity.

Question 19

A strategy of seeking ownership or increased control of a firm's suppliers is backward integration.

Accepted Answer

A) True 
 B)False

Question 20

Under which strategy would you offer products or services to a wide range of customers at the lowest price available on the market?

Accepted Answer

A) Differentiation 
B) Low- cost focus 
C) Low- cost 
D) Best- value focus 
E) Best- value 
A) Differentiation 
B) Low- cost focus 
C) Low- cost 
D) Best- value focus 
E) Best- value

Companies are avoiding outsourcing more and more because it is more expensive than traditional methods and it does not allow a firm to concentrate on core competencies.

What percentage of McDonald's restaurants are actually owned by the McDonald's corporation?

Which of the following is most likely not included in the functional level of a small company?

Market penetration,market development,product development and joint venture are intensive strategies.

A cost leadership strategy can be especially effective when most buyers use the product in the same way.

Which strategy should be implemented when a division is responsible for an organization's overall poor performance?

Which of these strategies is effective when the number of suppliers is small and the number of competitors is large?

Retrenchment would be an effective strategy when an organization

Under which condition would a differentiation strategy be especially effective?

Financial objectives involve all of the following except

Unrelated diversification is an appropriate strategy when an organization's present channels of distribution can be used to market the new products to current customers.

What refers to a strategy of seeking ownership of or increased control over a firm's competitors?

The Family Farmer Bankruptcy Act of 1986 created

Out of the wordld's 300 largest private equity firms in 2010,sixty were from the Arab world.

Which of the following is not a reason joint ventures fail?

Liquidation is often appropriate when retrenchment and divestiture have failed.

A low cost focus strategy can be especially attractive when the target market niche is small.

All of the following situations are conducive to market development except

A strategy of seeking ownership or increased control of a firm's suppliers is backward integration.

Under which strategy would you offer products or services to a wide range of customers at the lowest price available on the market?

The Nature of Strategic Management

The Business Vision and Mission

The External Assessment

The Internal Assessment

Competing in the Global Marketplace

Strategy Analysis and Choice

Implementing Strategies: Management and Operations Issues

Implementing Strategies: Marketing, financeaccounting, rd, and Mis Issues

Leadership and Culture

Strategy Review, eveluation, and Control

Filters

Exam 6: Strategies in Action

Companies are avoiding outsourcing more and more because it is more expensive than traditional methods and it does not allow a firm to concentrate on core competencies.

What percentage of McDonald's restaurants are actually owned by the McDonald's corporation?

Which of the following is most likely not included in the functional level of a small company?

Market penetration,market development,product development and joint venture are intensive strategies.

A cost leadership strategy can be especially effective when most buyers use the product in the same way.

Which strategy should be implemented when a division is responsible for an organization's overall poor performance?

Which of these strategies is effective when the number of suppliers is small and the number of competitors is large?

Retrenchment would be an effective strategy when an organization

Under which condition would a differentiation strategy be especially effective?

Financial objectives involve all of the following except

Unrelated diversification is an appropriate strategy when an organization's present channels of distribution can be used to market the new products to current customers.

What refers to a strategy of seeking ownership of or increased control over a firm's competitors?

The Family Farmer Bankruptcy Act of 1986 created

Out of the wordld's 300 largest private equity firms in 2010,sixty were from the Arab world.

Which of the following is not a reason joint ventures fail?

Liquidation is often appropriate when retrenchment and divestiture have failed.

A low cost focus strategy can be especially attractive when the target market niche is small.

All of the following situations are conducive to market development except

A strategy of seeking ownership or increased control of a firm's suppliers is backward integration.

Under which strategy would you offer products or services to a wide range of customers at the lowest price available on the market?

The Nature of Strategic Management

The Business Vision and Mission

The External Assessment

The Internal Assessment

Competing in the Global Marketplace

Strategy Analysis and Choice

Implementing Strategies: Management and Operations Issues

Implementing Strategies: Marketing, financeaccounting, rd, and Mis Issues

Leadership and Culture

Strategy Review, eveluation, and Control

Filters