Question 1

BMW produces cars exclusively for high-income customers. BMW is pursuing a ________ strategy.

Accepted Answer

A) focused differentiation 
B) focused low-cost 
C) diversification 
D) low-cost 
A) focused differentiation 
B) focused low-cost 
C) diversification 
D) low-cost

Question 2

What is the plan of action for a business-level strategy based on SWOT analysis?

Accepted Answer

A) to maximize an organization's ability to create value 
B) to take advantage of favorable opportunities 
C) to choose industries and countries to invest in 
D) to improve task-specific activities within the organization 
A) to maximize an organization's ability to create value 
B) to take advantage of favorable opportunities 
C) to choose industries and countries to invest in 
D) to improve task-specific activities within the organization

Question 3

While managers at QualityFirst Manufacturing were conducting a SWOT analysis, they concluded that their product line is obsolete and narrow. Their product line would be categorized as a(n)

Accepted Answer

A) strength. 
B) weakness. 
C) opportunity. 
D) threat. 
A) strength. 
B) weakness. 
C) opportunity. 
D) threat.

Question 4

Best Grounds Coffee wants to pursue a vertical integration corporate level strategy. To accomplish this, it

Accepted Answer

A) develops new products, including an expresso machine. 
B) purchases the supplier in Brazil that provides its coffee beans. 
C) starts a cookie company to complement its production of coffee. 
D) buys an electronics company that specializes in GPS devices. 
A) develops new products, including an expresso machine. 
B) purchases the supplier in Brazil that provides its coffee beans. 
C) starts a cookie company to complement its production of coffee. 
D) buys an electronics company that specializes in GPS devices.

Question 5

Managers pursuing a focused differentiation strategy serve just one or a few segments of the market and aim to make their organization the most differentiated company serving that segment.

Accepted Answer

A) True 
 B)False

Question 6

Managers can use four principal corporate-level strategies in order to help their organization to increase its sales and profits. Discuss any two of these strategies and explain the decisions that a manager would have to make in a business in order to design a program that used these two strategies. Also, give an example for each strategy you discuss.

Accepted Answer

Student examples will vary. Students can

Question 7

Carry On, Inc., sells different products using a different marketing approach in England than it uses when marketing these products in the United States. This is an example of a ________ strategy.

Accepted Answer

A) vertical integration 
B) focused low-cost 
C) global 
D) multidomestic 
A) vertical integration 
B) focused low-cost 
C) global 
D) multidomestic

Question 8

Sterling, Inc., pursues a low-cost strategy by

Accepted Answer

A) concentrating on its advertising department to make its pens more desirable than its rivals. 
B) focusing on its design department to make its pens more attractive than its rivals. 
C) concentrating on R&D to make its pens more reliable than its rivals. 
D) focusing on using cheaper resources to make its pens less expensive than its rivals. 
A) concentrating on its advertising department to make its pens more desirable than its rivals. 
B) focusing on its design department to make its pens more attractive than its rivals. 
C) concentrating on R&D to make its pens more reliable than its rivals. 
D) focusing on using cheaper resources to make its pens less expensive than its rivals.

Question 9

Clark is the new CEO of Stonehedge, Inc. He wants to pursue a focused low-cost strategy for his company, which sells weapons and gear to hunters. To accomplish this, he will

Accepted Answer

A) keep the prices of the company's hunting weapons and gear about the same as those of the competition. 
B) make the prices of the company's hunting weapons less than those of the competition, but keep the gear's price about the same as that of the competition. 
C) make the prices of the company's hunting weapons and gear less than those of the competition. 
D) keep the prices of the company's hunting weapons about the same as those of the competition, but make the gear's price higher than that of the competition. 
A) keep the prices of the company's hunting weapons and gear about the same as those of the competition. 
B) make the prices of the company's hunting weapons less than those of the competition, but keep the gear's price about the same as that of the competition. 
C) make the prices of the company's hunting weapons and gear less than those of the competition. 
D) keep the prices of the company's hunting weapons about the same as those of the competition, but make the gear's price higher than that of the competition.

Question 10

A strategic alliance among two or more companies that agree to jointly establish and share the ownership of a new business is called a

Accepted Answer

A) joint venture. 
B) franchise. 
C) portfolio management. 
D) wholly owned foreign subsidiary. 
A) joint venture. 
B) franchise. 
C) portfolio management. 
D) wholly owned foreign subsidiary.

Question 11

The reason managers pursue vertical integration is that it

Accepted Answer

A) provides stable environmental conditions. 
B) improves flexibility in operations. 
C) increases sales overall. 
D) strengthens competitive advantage. 
A) provides stable environmental conditions. 
B) improves flexibility in operations. 
C) increases sales overall. 
D) strengthens competitive advantage.

Question 12

Explain a SWOT analysis. Describe briefly the steps involved in a SWOT analysis and give an example for each.

Accepted Answer

Student examples will vary. The followin

Question 13

Grand Productions has just produced a historical epic film that appeals to the U.S. male audience because of its realistic battle scenes. However, Grand Productions knows that audiences in other countries will be drawn to the film for different reasons, such as its romance or it struggle between classes. Considering this, Grand Productions should give the film an international release using a ________ strategy.

Accepted Answer

A) multidomestic 
B) global 
C) low-cost 
D) differentiation 
A) multidomestic 
B) global 
C) low-cost 
D) differentiation

Question 14

Manuela is one of the top managers at Electrix, Ltd. She wants her company to use a global strategy by

Accepted Answer

A) buying the company in Mexico that sells its TVs and DVD players. 
B) buying the company in Mexico that supplies the metal for its TVs and DVD players. 
C) selling its TVs and DVD players in France using the marketing approach that is used in the United States. 
D) selling its TVs and DVD players in France using a marketing approach that tailored toward French culture. 
A) buying the company in Mexico that sells its TVs and DVD players. 
B) buying the company in Mexico that supplies the metal for its TVs and DVD players. 
C) selling its TVs and DVD players in France using the marketing approach that is used in the United States. 
D) selling its TVs and DVD players in France using a marketing approach that tailored toward French culture.

Question 15

TechnoSol Ltd. produces solar heating devices, including solar panels. The company decides to pursue an unrelated diversification corporate-level strategy when it buys

Accepted Answer

A) the retail stores that sell its solar panels. 
B) the metal supplier for its solar panels. 
C) a company that produces athletic gear, including basketball shoes. 
D) a company that produces heating equipment, including furnaces. 
A) the retail stores that sell its solar panels. 
B) the metal supplier for its solar panels. 
C) a company that produces athletic gear, including basketball shoes. 
D) a company that produces heating equipment, including furnaces.

Question 16

EnergyPlus, Ltd., produces nutritional fruit bars, but is having trouble staying in business. Considering Michael Porter's five force model, which of the following is most likely the greatest threat for this company?

Accepted Answer

A) many suppliers that provide its ingredients 
B) the existence of one other major competitor 
C) the introduction of a new granola bar to the market 
D) an increase in the use of indoor exercise equipment 
A) many suppliers that provide its ingredients 
B) the existence of one other major competitor 
C) the introduction of a new granola bar to the market 
D) an increase in the use of indoor exercise equipment

Question 17

Ace Components, Inc., conducted a SWOT analysis, which determined a major threat by

Accepted Answer

A) identifying how defects in a product has hurt customer trust. 
B) predicting a rise in the cost of manufacturing products using tungsten. 
C) identifying a loss in brand name recognition in the eastern United States. 
D) predicting low trading volumes and low volatility levels in the stock market. 
A) identifying how defects in a product has hurt customer trust. 
B) predicting a rise in the cost of manufacturing products using tungsten. 
C) identifying a loss in brand name recognition in the eastern United States. 
D) predicting low trading volumes and low volatility levels in the stock market.

Question 18

TrueAim, Inc., sets a goal that every product line of the company should be either first or second in its industry in market share. This would be an example of a ________-level strategy.

Accepted Answer

A) corporate 
B) divisional 
C) functional 
D) business 
A) corporate 
B) divisional 
C) functional 
D) business

Question 19

A plan that is updated and changed every year to take into consideration how the organization's external and internal environments have changed is known as a ________ plan.

Accepted Answer

A) standing 
B) short-term 
C) rolling 
D) single-use 
A) standing 
B) short-term 
C) rolling 
D) single-use

Question 20

A written set of instructions that describes the series of actions that a manager should take in a specific situation is known as a

Accepted Answer

A) policy. 
B) standing operating procedure. 
C) scenario plan. 
D) rolling plan. 
A) policy. 
B) standing operating procedure. 
C) scenario plan. 
D) rolling plan.

BMW produces cars exclusively for high-income customers. BMW is pursuing a ________ strategy.

What is the plan of action for a business-level strategy based on SWOT analysis?

While managers at QualityFirst Manufacturing were conducting a SWOT analysis, they concluded that their product line is obsolete and narrow. Their product line would be categorized as a(n)

Best Grounds Coffee wants to pursue a vertical integration corporate level strategy. To accomplish this, it

Managers pursuing a focused differentiation strategy serve just one or a few segments of the market and aim to make their organization the most differentiated company serving that segment.

Carry On, Inc., sells different products using a different marketing approach in England than it uses when marketing these products in the United States. This is an example of a ________ strategy.

Sterling, Inc., pursues a low-cost strategy by

Clark is the new CEO of Stonehedge, Inc. He wants to pursue a focused low-cost strategy for his company, which sells weapons and gear to hunters. To accomplish this, he will

A strategic alliance among two or more companies that agree to jointly establish and share the ownership of a new business is called a

The reason managers pursue vertical integration is that it

Explain a SWOT analysis. Describe briefly the steps involved in a SWOT analysis and give an example for each.

Manuela is one of the top managers at Electrix, Ltd. She wants her company to use a global strategy by

TechnoSol Ltd. produces solar heating devices, including solar panels. The company decides to pursue an unrelated diversification corporate-level strategy when it buys

EnergyPlus, Ltd., produces nutritional fruit bars, but is having trouble staying in business. Considering Michael Porter's five force model, which of the following is most likely the greatest threat for this company?

Ace Components, Inc., conducted a SWOT analysis, which determined a major threat by

TrueAim, Inc., sets a goal that every product line of the company should be either first or second in its industry in market share. This would be an example of a ________-level strategy.

A plan that is updated and changed every year to take into consideration how the organization's external and internal environments have changed is known as a ________ plan.

A written set of instructions that describes the series of actions that a manager should take in a specific situation is known as a

The Management Process Today

Values, Attitudes, Emotions, and Culture: the Manager As a Person

Managing Ethics and Diversity

Managing in the Global Environment

Decision Making, Learning, Creativity, and Entrepreneurship

Designing Organizational Structure

Control, Change, and Entrepreneurship

Motivation

Leaders and Leadership

Effective Team Management

Building and Managing Human Resources

Effective Communication and It Management

Operations Management: Managing Vital Operations and Processes

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Exam 6: Planning, Strategy, and Competitive Advantage

BMW produces cars exclusively for high-income customers. BMW is pursuing a ________ strategy.

What is the plan of action for a business-level strategy based on SWOT analysis?

While managers at QualityFirst Manufacturing were conducting a SWOT analysis, they concluded that their product line is obsolete and narrow. Their product line would be categorized as a(n)

Best Grounds Coffee wants to pursue a vertical integration corporate level strategy. To accomplish this, it

Managers pursuing a focused differentiation strategy serve just one or a few segments of the market and aim to make their organization the most differentiated company serving that segment.

Carry On, Inc., sells different products using a different marketing approach in England than it uses when marketing these products in the United States. This is an example of a ________ strategy.

Sterling, Inc., pursues a low-cost strategy by

Clark is the new CEO of Stonehedge, Inc. He wants to pursue a focused low-cost strategy for his company, which sells weapons and gear to hunters. To accomplish this, he will

A strategic alliance among two or more companies that agree to jointly establish and share the ownership of a new business is called a

The reason managers pursue vertical integration is that it

Explain a SWOT analysis. Describe briefly the steps involved in a SWOT analysis and give an example for each.

Manuela is one of the top managers at Electrix, Ltd. She wants her company to use a global strategy by

TechnoSol Ltd. produces solar heating devices, including solar panels. The company decides to pursue an unrelated diversification corporate-level strategy when it buys

EnergyPlus, Ltd., produces nutritional fruit bars, but is having trouble staying in business. Considering Michael Porter's five force model, which of the following is most likely the greatest threat for this company?

Ace Components, Inc., conducted a SWOT analysis, which determined a major threat by

TrueAim, Inc., sets a goal that every product line of the company should be either first or second in its industry in market share. This would be an example of a ________-level strategy.

A plan that is updated and changed every year to take into consideration how the organization's external and internal environments have changed is known as a ________ plan.

A written set of instructions that describes the series of actions that a manager should take in a specific situation is known as a

The Management Process Today

Values, Attitudes, Emotions, and Culture: the Manager As a Person

Managing Ethics and Diversity

Managing in the Global Environment

Decision Making, Learning, Creativity, and Entrepreneurship

Designing Organizational Structure

Control, Change, and Entrepreneurship

Motivation

Leaders and Leadership

Effective Team Management

Building and Managing Human Resources

Effective Communication and It Management

Operations Management: Managing Vital Operations and Processes

Filters