Question 1

Product development is a strategy that seeks increased sales by improving or modifying present products or services.

Accepted Answer

A) True 
 B)False  True

Question 2

According to Porter, strategies allow organizations to gain competitive advantage from three different bases: cost leadership, differentiation, and decentralization.

Accepted Answer

A) True 
 B)False  False

Question 3

Discuss PE firms and explain what a secondary buyout is.

Accepted Answer

Private-equity(PE)firms jumped aggressively back into the business of acquiring and selling firms in 2012-2013.The intent of virtually all PE acquisitions is to buy firms at a low price and sell them alter at a high price,arguably just good business.PE firms are increasingly buying companies form other PE firms.Such PE to PE acquisitions are called secondary buyouts.In 2012 these acquisitions totaled $30 billion in the USA.

Question 4

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 5

Which strategy is effective when new, but related, products could be offered at highly competitive prices?

Accepted Answer

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

Question 6

Joint ventures tend to fail when managers who must collaborate daily in operating the venture are not involved in forming or shaping the venture.

Accepted Answer

A) True 
 B)False

Question 7

Market development includes introducing present products into new geographic areas.

Accepted Answer

A) True 
 B)False

Question 8

A growing trend is for franchisers to buy out their part of the business from their franchisees.

Accepted Answer

A) True 
 B)False

Question 9

Objectives provide direction and allow for organizational synergy.

Accepted Answer

A) True 
 B)False

Question 10

Revlon closing its manufacturing plant in France and laying off 5 percent of its workforce 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 11

All of the following are cooperative arrangements EXCEPT

Accepted Answer

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

Question 12

Which strategy should an organization use when its products are currently in the declining stage of the product's life cycle?

Accepted Answer

A)  Divestiture 
B)  Related diversification 
C)  Backward integration 
D)  Unrelated diversification 
E)  Retrenchment 
A)  Divestiture 
B)  Related diversification 
C)  Backward integration 
D)  Unrelated diversification 
E)  Retrenchment

Question 13

When the PE firm Clayton, Dubilier & Rice bought David's Bridal from the PE firm Leonard Green & Partner LP this was an example of

Accepted Answer

A)  dividend recapitalization. 
B)  a joint venture. 
C)  a secondary buyout. 
D)  a leveraged buyout. 
E)  a merger. 
A)  dividend recapitalization. 
B)  a joint venture. 
C)  a secondary buyout. 
D)  a leveraged buyout. 
E)  a merger.

Question 14

Franchising is an effective means of implementing forward integration.

Accepted Answer

A) True 
 B)False

Question 15

Amazon installing "Amazon Lockers" in grocery, 7-Eleven, and drugstores that accept packages for later pickup, in order to combat issues with missing deliveries or having packages stolen, 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 16

Under which condition would a differentiation strategy be especially effective?

Accepted Answer

A)  when there are few ways to differentiate the product or service that buyers perceive as having value 
B)  when technological change is fast paced and competition revolves around rapidly evolving product features 
C)  when most buyers use the product in the same way 
D)  when many rival firms are following a similar differentiation approach 
E)  when the differentiation base is easy or inexpensive for rivals to duplicate 
A)  when there are few ways to differentiate the product or service that buyers perceive as having value 
B)  when technological change is fast paced and competition revolves around rapidly evolving product features 
C)  when most buyers use the product in the same way 
D)  when many rival firms are following a similar differentiation approach 
E)  when the differentiation base is easy or inexpensive for rivals to duplicate

Question 17

In which situation would horizontal integration be an especially effective strategy?

Accepted Answer

A)  when an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for "tending substantially" to reduce competition 
B)  when an organization competes in a slowing industry 
C)  when decreased economies of scale provide major competitive advantages 
D)  when an organization has neither the capital nor human talent needed to successfully manage an expanded organization 
E)  when competitors are succeeding due to managerial expertise or having particular resources an organization possesses 
A)  when an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for "tending substantially" to reduce competition 
B)  when an organization competes in a slowing industry 
C)  when decreased economies of scale provide major competitive advantages 
D)  when an organization has neither the capital nor human talent needed to successfully manage an expanded organization 
E)  when competitors are succeeding due to managerial expertise or having particular resources an organization possesses

Question 18

FedEx entering the computer repair business offering major corporations overnight computer repair is an example of

Accepted Answer

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

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

What are the characteristics of a firm that is successfully pursuing a cost leadership strategy?

Accepted Answer

A successful cost leadership strategy us

Product development is a strategy that seeks increased sales by improving or modifying present products or services.

According to Porter, strategies allow organizations to gain competitive advantage from three different bases: cost leadership, differentiation, and decentralization.

Discuss PE firms and explain what a secondary buyout is.

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

Which strategy is effective when new, but related, products could be offered at highly competitive prices?

Joint ventures tend to fail when managers who must collaborate daily in operating the venture are not involved in forming or shaping the venture.

Market development includes introducing present products into new geographic areas.

A growing trend is for franchisers to buy out their part of the business from their franchisees.

Objectives provide direction and allow for organizational synergy.

Revlon closing its manufacturing plant in France and laying off 5 percent of its workforce is an example of

All of the following are cooperative arrangements EXCEPT

Which strategy should an organization use when its products are currently in the declining stage of the product's life cycle?

When the PE firm Clayton, Dubilier & Rice bought David's Bridal from the PE firm Leonard Green & Partner LP this was an example of

Franchising is an effective means of implementing forward integration.

Amazon installing "Amazon Lockers" in grocery, 7-Eleven, and drugstores that accept packages for later pickup, in order to combat issues with missing deliveries or having packages stolen, is an example of which type of strategy?

Under which condition would a differentiation strategy be especially effective?

In which situation would horizontal integration be an especially effective strategy?

FedEx entering the computer repair business offering major corporations overnight computer repair is an example of

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

What are the characteristics of a firm that is successfully pursuing a cost leadership strategy?

The Nature of Strategic Management

The Business Vision and Mission

The External Assessment

The Internal Assessment

Strategy Analysis and Choice

Implementing Strategies: Management and Operations Issues

Implementing Strategies: Marketing, Finance/Accounting, R&D, and MIS Issues

Strategy Review, Evaluation, and Control

Business Ethics, Social Responsibility, and Environmental Sustainability

Global and International Issues

Filters

Exam 5: Strategies in Action

Product development is a strategy that seeks increased sales by improving or modifying present products or services.

According to Porter, strategies allow organizations to gain competitive advantage from three different bases: cost leadership, differentiation, and decentralization.

Discuss PE firms and explain what a secondary buyout is.

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

Which strategy is effective when new, but related, products could be offered at highly competitive prices?

Joint ventures tend to fail when managers who must collaborate daily in operating the venture are not involved in forming or shaping the venture.

Market development includes introducing present products into new geographic areas.

A growing trend is for franchisers to buy out their part of the business from their franchisees.

Objectives provide direction and allow for organizational synergy.

Revlon closing its manufacturing plant in France and laying off 5 percent of its workforce is an example of

All of the following are cooperative arrangements EXCEPT

Which strategy should an organization use when its products are currently in the declining stage of the product's life cycle?

When the PE firm Clayton, Dubilier & Rice bought David's Bridal from the PE firm Leonard Green & Partner LP this was an example of

Franchising is an effective means of implementing forward integration.

Amazon installing "Amazon Lockers" in grocery, 7-Eleven, and drugstores that accept packages for later pickup, in order to combat issues with missing deliveries or having packages stolen, is an example of which type of strategy?

Under which condition would a differentiation strategy be especially effective?

In which situation would horizontal integration be an especially effective strategy?

FedEx entering the computer repair business offering major corporations overnight computer repair is an example of

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

What are the characteristics of a firm that is successfully pursuing a cost leadership strategy?

The Nature of Strategic Management

The Business Vision and Mission

The External Assessment

The Internal Assessment

Strategy Analysis and Choice

Implementing Strategies: Management and Operations Issues

Implementing Strategies: Marketing, Finance/Accounting, R&D, and MIS Issues

Strategy Review, Evaluation, and Control

Business Ethics, Social Responsibility, and Environmental Sustainability

Global and International Issues

Filters