Question 1

Stockton, California, is the largest U.S. city to declare bankruptcy.

Accepted Answer

A) True 
 B)False

Question 2

Bankruptcy

Accepted Answer

A)  should never be used as a strategy. 
B)  should be used only when one is legally forced to do so. 
C)  can be an effective type of retrenchment strategy. 
D)  should only be used for large firms. 
E)  should only be used for small, private firms. 
A)  should never be used as a strategy. 
B)  should be used only when one is legally forced to do so. 
C)  can be an effective type of retrenchment strategy. 
D)  should only be used for large firms. 
E)  should only be used for small, private firms.

Question 3

A chief executive officer is located in the divisional level of a large firm.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Gaining ownership or increased control over distributors or retailers is called forward integration strategy.

Accepted Answer

A) True 
 B)False

Question 6

What principle is based on the belief that the true measure of a really good strategist is the ability to solve problems?

Accepted Answer

A)  Managing by crisis 
B)  Managing by objectives 
C)  Managing by extrapolation 
D)  Managing by exception 
E)  Managing by hope 
A)  Managing by crisis 
B)  Managing by objectives 
C)  Managing by extrapolation 
D)  Managing by exception 
E)  Managing by hope

Question 7

Which of the following is NOT a guideline for when an organization should use an unrelated diversification strategy?

Accepted Answer

A)  When revenues derived from an organization's current products or services would increase significantly by adding the new unrelated, products 
B)  When an organization's present channels of distribution can be used to market the new products to current customers 
C)  When the new products have countercyclical sales patterns compared to an organization's present products 
D)  When an organization competes in a highly competitive and/or a no-growth industry 
E)  When existing markets for an organization's present products are not yet saturated 
A)  When revenues derived from an organization's current products or services would increase significantly by adding the new unrelated, products 
B)  When an organization's present channels of distribution can be used to market the new products to current customers 
C)  When the new products have countercyclical sales patterns compared to an organization's present products 
D)  When an organization competes in a highly competitive and/or a no-growth industry 
E)  When existing markets for an organization's present products are not yet saturated

Question 8

A hostile takeover is not unethical as long as it is conducted in a sane, civil, legal manner.

Accepted Answer

A) True 
 B)False

Question 9

GoPro laid off one-fifth of its workforce and exited the drone market. This is an example of

Accepted Answer

A)  divestiture. 
B)  backward integration. 
C)  liquidation. 
D)  retrenchment. 
E)  forward integration. 
A)  divestiture. 
B)  backward integration. 
C)  liquidation. 
D)  retrenchment. 
E)  forward integration.

Question 10

________ advantages refer to the benefits a firm may achieve by entering a new market or developing a new product or service prior to rival firms.

Accepted Answer

A)  First mover 
B)  Outsourcing 
C)  Differentiator 
D)  Corporate 
E)  Fast follower 
A)  First mover 
B)  Outsourcing 
C)  Differentiator 
D)  Corporate 
E)  Fast follower

Question 11

Panera installing online ordering and delivery from their restaurants is an example of which type of strategy?

Accepted Answer

A)  Forward integration 
B)  Backward integration 
C)  Horizontal integration 
D)  Related diversification 
E)  Unrelated diversification 
A)  Forward integration 
B)  Backward integration 
C)  Horizontal integration 
D)  Related diversification 
E)  Unrelated diversification

Question 12

The most effective differentiation bases are those that are hard or expensive for rivals to duplicate.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Which level of strategy is most likely NOT present in small firms?

Accepted Answer

A)  Company 
B)  Functional 
C)  Divisional 
D)  Operational 
E)  Global 
A)  Company 
B)  Functional 
C)  Divisional 
D)  Operational 
E)  Global

Question 15

To sustain the competitive advantage gained by being a first mover, a firm needs to be a cost leader.

Accepted Answer

A) True 
 B)False

Question 16

List three guidelines for when market development would be a particularly good strategy to pursue.

Accepted Answer

Market development would be an effective

Question 17

Retrenchment would be an effective strategy when an organization

Accepted Answer

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

Question 18

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

Accepted Answer

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

Question 19

When two organizations of about equal size unite to form one enterprise, which of these occurs?

Accepted Answer

A)  Hostile takeover 
B)  Merger 
C)  Acquisition 
D)  Leveraged buyout 
E)  Friendly takeover 
A)  Hostile takeover 
B)  Merger 
C)  Acquisition 
D)  Leveraged buyout 
E)  Friendly takeover

Question 20

Divestiture is selling all of a company's assets, in parts, for their tangible worth.

Accepted Answer

A) True 
 B)False

Stockton, California, is the largest U.S. city to declare bankruptcy.

Bankruptcy

A chief executive officer is located in the divisional level of a large firm.

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

Gaining ownership or increased control over distributors or retailers is called forward integration strategy.

What principle is based on the belief that the true measure of a really good strategist is the ability to solve problems?

Which of the following is NOT a guideline for when an organization should use an unrelated diversification strategy?

A hostile takeover is not unethical as long as it is conducted in a sane, civil, legal manner.

GoPro laid off one-fifth of its workforce and exited the drone market. This is an example of

________ advantages refer to the benefits a firm may achieve by entering a new market or developing a new product or service prior to rival firms.

Panera installing online ordering and delivery from their restaurants is an example of which type of strategy?

The most effective differentiation bases are those that are hard or expensive for rivals to duplicate.

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

Which level of strategy is most likely NOT present in small firms?

To sustain the competitive advantage gained by being a first mover, a firm needs to be a cost leader.

List three guidelines for when market development would be a particularly good strategy to pursue.

Retrenchment would be an effective strategy when an organization

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

When two organizations of about equal size unite to form one enterprise, which of these occurs?

Divestiture is selling all of a company's assets, in parts, for their tangible worth.

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

Stockton, California, is the largest U.S. city to declare bankruptcy.

Bankruptcy

A chief executive officer is located in the divisional level of a large firm.

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

Gaining ownership or increased control over distributors or retailers is called forward integration strategy.

What principle is based on the belief that the true measure of a really good strategist is the ability to solve problems?

Which of the following is NOT a guideline for when an organization should use an unrelated diversification strategy?

A hostile takeover is not unethical as long as it is conducted in a sane, civil, legal manner.

GoPro laid off one-fifth of its workforce and exited the drone market. This is an example of

________ advantages refer to the benefits a firm may achieve by entering a new market or developing a new product or service prior to rival firms.

Panera installing online ordering and delivery from their restaurants is an example of which type of strategy?

The most effective differentiation bases are those that are hard or expensive for rivals to duplicate.

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

Which level of strategy is most likely NOT present in small firms?

To sustain the competitive advantage gained by being a first mover, a firm needs to be a cost leader.

List three guidelines for when market development would be a particularly good strategy to pursue.

Retrenchment would be an effective strategy when an organization

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

When two organizations of about equal size unite to form one enterprise, which of these occurs?

Divestiture is selling all of a company's assets, in parts, for their tangible worth.

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