Exam 5: Strategies in Action

There are annually more than 10,000 mergers in the United States that total more than

What kind of strategy is retrenchment?

Differentiation guarantees competitive advantage.

What occurs when two or more companies form a temporary partnership or consortium for the purpose of capitalizing on some opportunity?

Discuss four common problems that cause joint ventures to fail.

When the correlation between dollar sales and dollar marketing expenditures has historically been low, market penetration is an appropriate strategy.

For consumers who are price-sensitive, cost leadership emphasizes producing standardized products at a very low per-unit cost.

Divestiture has become a popular strategy for firms to focus on their core business and become more diversified.

Which strategy would be effective when the stockholders of a firm can minimize their losses by selling the organization's assets?

Diversification strategies are becoming more popular as organizations are finding it easier to manage diverse business activities.

Selling a division or part of an organization is called divestiture.

First mover 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.

A low-cost focus strategy offers products or services to a small range of customers at the lowest price available on the market.

According to journalists' findings, what is a serious obstacle for many small business owners?

Retrenchment and turnaround are the same strategy.

Horizontal integration is seeking ownership or increased control over competitors.

Research shows strategic management in small firms is more formal than in large firms.

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

The number of hostile takeovers is on the rise.

Divestiture would be an appropriate strategy when a need exists to introduce a new technology quickly.