Question 1

What are four common problems that cause joint ventures to fail?

Accepted Answer

One problem that causes joint ventures to fail is that managers who must collaborate daily in operating the venture are not involved in forming or shaping the venture. A second problem is if the venture benefits the partnering companies, but does not benefit customers who then complain about poorer service or criticize the companies in other ways. A third problem occurs if the venture is not supported equally by both partners. A final problem that can cause a joint venture to fail is that the venture may begin to compete more with one of the partners than the other.

Question 2

Unrelated diversification may be an especially effective strategy when an organization's basic industry is experiencing increasing annual sales and profits.

Accepted Answer

A) True 
 B)False  False

Question 3

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)  Cost Leadership - Low Cost 
B)  Cost Leadership - Best Value 
C)  Focus - Low Cost 
D)  Focus - Best Value 
E)  Differentiation 
A)  Cost Leadership - Low Cost 
B)  Cost Leadership - Best Value 
C)  Focus - Low Cost 
D)  Focus - Best Value 
E)  Differentiation A

Question 4

The process whereby a firm determines the costs associated with organizational activities from purchasing raw materials to manufacturing products to marketing those products is called

Accepted Answer

A)  the Resource-Based Approach. 
B)  Value Chain Analysis. 
C)  Strategic Cost Analysis. 
D)  the Internal Factor Evaluation Matrix. 
E)  Cost-Benefit Analysis. 
A)  the Resource-Based Approach. 
B)  Value Chain Analysis. 
C)  Strategic Cost Analysis. 
D)  the Internal Factor Evaluation Matrix. 
E)  Cost-Benefit Analysis.

Question 5

Value chain analysis can enable a firm to better identify its own strengths and weaknesses especially as compared to competitors' value chain analyses and their own data over time.

Accepted Answer

A) True 
 B)False

Question 6

Market development includes introducing present products into new geographic areas.

Accepted Answer

A) True 
 B)False

Question 7

The form of bankruptcy in which all the organization's assets are sold in parts for their tangible worth is

Accepted Answer

A)  Chapter 7. 
B)  Chapter 8. 
C)  Chapter 9. 
D)  Chapter 11. 
E)  Chapter 13. 
A)  Chapter 7. 
B)  Chapter 8. 
C)  Chapter 9. 
D)  Chapter 11. 
E)  Chapter 13.

Question 8

Which strategy is appropriate when an organization competes in an industry characterized by rapid technological developments?

Accepted Answer

A)  Retrenchment 
B)  Product development 
C)  Backward integration 
D)  Liquidation 
E)  Market penetration 
A)  Retrenchment 
B)  Product development 
C)  Backward integration 
D)  Liquidation 
E)  Market penetration

Question 9

Product development is an appropriate strategy when an organization has successful products that are in the maturity stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 10

All of the following are cooperative arrangements EXCEPT

Accepted Answer

A)  Research and Development (R&
D)  partnerships. 
B)  joint-bidding consortia. 
C)  cross-licensing agreements. 
D)  cross-manufacturing agreements. 
E)  marketing plans. 
A)  Research and Development (R&
D)  partnerships. 
B)  joint-bidding consortia. 
C)  cross-licensing agreements. 
D)  cross-manufacturing agreements. 
E)  marketing plans.

Question 11

Differentiation guarantees competitive advantage as long as standard products sufficiently meet customer needs.

Accepted Answer

A) True 
 B)False

Question 12

First mover advantages are analogous to taking the low ground first.

Accepted Answer

A) True 
 B)False

Question 13

Long-term objectives represent the results expected from pursuing certain strategies.

Accepted Answer

A) True 
 B)False

Question 14

All of the following situations are conducive to market development EXCEPT

Accepted Answer

A)  when new channels of distribution are expensive and unreliable. 
B)  when an organization is successful at what it does. 
C)  when new untapped or unsaturated markets exist. 
D)  when an organization has excess production capacity. 
E)  when an organization's basic industry is rapidly becoming global in scope. 
A)  when new channels of distribution are expensive and unreliable. 
B)  when an organization is successful at what it does. 
C)  when new untapped or unsaturated markets exist. 
D)  when an organization has excess production capacity. 
E)  when an organization's basic industry is rapidly becoming global in scope.

Question 15

What kind of strategy is retrenchment?

Accepted Answer

A)  A turnaround strategy 
B)  An expansion strategy 
C)  A diagonal strategy 
D)  An intensive strategy 
E)  An offensive strategy 
A)  A turnaround strategy 
B)  An expansion strategy 
C)  A diagonal strategy 
D)  An intensive strategy 
E)  An offensive strategy

Question 16

The Family Farmer Bankruptcy Act of 1986 created which of the major types of bankruptcy?

Accepted Answer

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

Question 17

A leveraged buyout occurs when a firm's management and other private investors use borrowed funds to buy out the firm's shareholders.

Accepted Answer

A) True 
 B)False

Question 18

The strategic-management process is just as vital for small companies as for large companies.

Accepted Answer

A) True 
 B)False

Question 19

Objectives provide direction and allow for organizational synergy.

Accepted Answer

A) True 
 B)False

Question 20

Which term refers to selling a division or part of an organization?

Accepted Answer

A)  Joint venture 
B)  Divestiture 
C)  Concentric diversification 
D)  Liquidation 
E)  Horizontal integration 
A)  Joint venture 
B)  Divestiture 
C)  Concentric diversification 
D)  Liquidation 
E)  Horizontal integration

What are four common problems that cause joint ventures to fail?

Unrelated diversification may be an especially effective strategy when an organization's basic industry is experiencing increasing annual sales and profits.

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

The process whereby a firm determines the costs associated with organizational activities from purchasing raw materials to manufacturing products to marketing those products is called

Value chain analysis can enable a firm to better identify its own strengths and weaknesses especially as compared to competitors' value chain analyses and their own data over time.

Market development includes introducing present products into new geographic areas.

The form of bankruptcy in which all the organization's assets are sold in parts for their tangible worth is

Which strategy is appropriate when an organization competes in an industry characterized by rapid technological developments?

Product development is an appropriate strategy when an organization has successful products that are in the maturity stage of the product life cycle.

All of the following are cooperative arrangements EXCEPT

Differentiation guarantees competitive advantage as long as standard products sufficiently meet customer needs.

First mover advantages are analogous to taking the low ground first.

Long-term objectives represent the results expected from pursuing certain strategies.

All of the following situations are conducive to market development EXCEPT

What kind of strategy is retrenchment?

The Family Farmer Bankruptcy Act of 1986 created which of the major types of bankruptcy?

A leveraged buyout occurs when a firm's management and other private investors use borrowed funds to buy out the firm's shareholders.

The strategic-management process is just as vital for small companies as for large companies.

Objectives provide direction and allow for organizational synergy.

Which term refers to selling a division or part of an organization?

The Nature of Strategic Management

The Business Vision and Mission

The External Assessment

The Internal Assessment

Strategy Analysis and Choice

Implementing Strategies: Management and Marketing Issues

Implementing Strategies: Finance and Accounting Issues

Strategy Evaluation and Governance

Business Ethics, Environmental Sustainability, and Social Responsibility

Global and International Issues

Filters

Exam 5: Strategies in Action

What are four common problems that cause joint ventures to fail?

Unrelated diversification may be an especially effective strategy when an organization's basic industry is experiencing increasing annual sales and profits.

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

The process whereby a firm determines the costs associated with organizational activities from purchasing raw materials to manufacturing products to marketing those products is called

Value chain analysis can enable a firm to better identify its own strengths and weaknesses especially as compared to competitors' value chain analyses and their own data over time.

Market development includes introducing present products into new geographic areas.

The form of bankruptcy in which all the organization's assets are sold in parts for their tangible worth is

Which strategy is appropriate when an organization competes in an industry characterized by rapid technological developments?

Product development is an appropriate strategy when an organization has successful products that are in the maturity stage of the product life cycle.

All of the following are cooperative arrangements EXCEPT

Differentiation guarantees competitive advantage as long as standard products sufficiently meet customer needs.

First mover advantages are analogous to taking the low ground first.

Long-term objectives represent the results expected from pursuing certain strategies.

All of the following situations are conducive to market development EXCEPT

What kind of strategy is retrenchment?

The Family Farmer Bankruptcy Act of 1986 created which of the major types of bankruptcy?

A leveraged buyout occurs when a firm's management and other private investors use borrowed funds to buy out the firm's shareholders.

The strategic-management process is just as vital for small companies as for large companies.

Objectives provide direction and allow for organizational synergy.

Which term refers to selling a division or part of an organization?

The Nature of Strategic Management

The Business Vision and Mission

The External Assessment

The Internal Assessment

Strategy Analysis and Choice

Implementing Strategies: Management and Marketing Issues

Implementing Strategies: Finance and Accounting Issues

Strategy Evaluation and Governance

Business Ethics, Environmental Sustainability, and Social Responsibility

Global and International Issues

Filters