Question 1

An appropriate strategy when an organization has excess production capacity is market development.

Accepted Answer

A) True 
 B)False

Question 2

Liquidation is often appropriate when retrenchment and divestiture have failed.

Accepted Answer

A) True 
 B)False

Question 3

When a domestic company first begins to export to India, it is an example of

Accepted Answer

A)  horizontal integration. 
B)  backward integration. 
C)  forward integration. 
D)  concentric diversification. 
E)  market development. 
A)  horizontal integration. 
B)  backward integration. 
C)  forward integration. 
D)  concentric diversification. 
E)  market development.

Question 4

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 5

In a turbulent, high-velocity market, a lead-change strategy is best whenever the firm has the resources to pursue this approach.

Accepted Answer

A) True 
 B)False

Question 6

Most companies favor related diversification strategies in order to exploit common use of a well-known brand name.

Accepted Answer

A) True 
 B)False

Question 7

The nonprofit sector is America's largest employer.

Accepted Answer

A) True 
 B)False

Question 8

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 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

Since a combination strategy bears no risk, many organizations pursue a combination of two or more strategies simultaneously.

Accepted Answer

A) True 
 B)False

Question 12

Integration strategies are sometimes collectively referred to as which of the following categories of strategies?

Accepted Answer

A)  Horizontal integration 
B)  Diversification 
C)  Vertical integration 
D)  Stuck-in-the-middle 
E)  Hierarchical integration 
A)  Horizontal integration 
B)  Diversification 
C)  Vertical integration 
D)  Stuck-in-the-middle 
E)  Hierarchical integration

Question 13

Which strategy would be most appropriate when the distinctive competencies of two or more firms complement each other especially well?

Accepted Answer

A)  Conglomerate diversification 
B)  Divestiture 
C)  Joint venture 
D)  Retrenchment 
E)  Integration 
A)  Conglomerate diversification 
B)  Divestiture 
C)  Joint venture 
D)  Retrenchment 
E)  Integration

Question 14

If a firm's present suppliers are expensive and unreliable in meeting the firm's needs for parts, components, and/or raw materials, the firm should pursue a horizontal integration strategy.

Accepted Answer

A) True 
 B)False

Question 15

The Family Farmer Bankruptcy Act of 1986 created which type 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 16

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 17

Forward integration strategy is especially effective when the availability of quality distributors is so limited as to offer a competitive advantage to those firms that integrate forward.

Accepted Answer

A) True 
 B)False

Question 18

Long-term objectives are needed at which level(s)in an organization?

Accepted Answer

A)  Corporate 
B)  Divisional 
C)  Functional 
D)  All of the above 
E)  None of the above 
A)  Corporate 
B)  Divisional 
C)  Functional 
D)  All of the above 
E)  None of the above

Question 19

Although bankruptcy can be an effective type of retrenchment strategy, it does not allow firms to avoid major debt obligations and to void union contracts.

Accepted Answer

A) True 
 B)False

Question 20

Backward integration is effective in all of these cases EXCEPT

Accepted Answer

A)  when an organization competes in an industry that is growing rapidly. 
B)  when an organization has both capital and human resources to manage the new business of supplying its own raw materials. 
C)  when an organization needs to acquire a needed resource quickly. 
D)  when the advantages of stable prices are not important. 
E)  when present suppliers have high profit margins. 
A)  when an organization competes in an industry that is growing rapidly. 
B)  when an organization has both capital and human resources to manage the new business of supplying its own raw materials. 
C)  when an organization needs to acquire a needed resource quickly. 
D)  when the advantages of stable prices are not important. 
E)  when present suppliers have high profit margins.

An appropriate strategy when an organization has excess production capacity is market development.

Liquidation is often appropriate when retrenchment and divestiture have failed.

When a domestic company first begins to export to India, it is an example of

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

In a turbulent, high-velocity market, a lead-change strategy is best whenever the firm has the resources to pursue this approach.

Most companies favor related diversification strategies in order to exploit common use of a well-known brand name.

The nonprofit sector is America's largest employer.

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

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

All of the following situations are conducive to market development EXCEPT

Since a combination strategy bears no risk, many organizations pursue a combination of two or more strategies simultaneously.

Integration strategies are sometimes collectively referred to as which of the following categories of strategies?

Which strategy would be most appropriate when the distinctive competencies of two or more firms complement each other especially well?

If a firm's present suppliers are expensive and unreliable in meeting the firm's needs for parts, components, and/or raw materials, the firm should pursue a horizontal integration strategy.

The Family Farmer Bankruptcy Act of 1986 created which type of bankruptcy?

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

Forward integration strategy is especially effective when the availability of quality distributors is so limited as to offer a competitive advantage to those firms that integrate forward.

Long-term objectives are needed at which level(s)in an organization?

Although bankruptcy can be an effective type of retrenchment strategy, it does not allow firms to avoid major debt obligations and to void union contracts.

Backward integration is effective in all of these cases EXCEPT

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

An appropriate strategy when an organization has excess production capacity is market development.

Liquidation is often appropriate when retrenchment and divestiture have failed.

When a domestic company first begins to export to India, it is an example of

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

In a turbulent, high-velocity market, a lead-change strategy is best whenever the firm has the resources to pursue this approach.

Most companies favor related diversification strategies in order to exploit common use of a well-known brand name.

The nonprofit sector is America's largest employer.

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

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

All of the following situations are conducive to market development EXCEPT

Since a combination strategy bears no risk, many organizations pursue a combination of two or more strategies simultaneously.

Integration strategies are sometimes collectively referred to as which of the following categories of strategies?

Which strategy would be most appropriate when the distinctive competencies of two or more firms complement each other especially well?

If a firm's present suppliers are expensive and unreliable in meeting the firm's needs for parts, components, and/or raw materials, the firm should pursue a horizontal integration strategy.

The Family Farmer Bankruptcy Act of 1986 created which type of bankruptcy?

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

Forward integration strategy is especially effective when the availability of quality distributors is so limited as to offer a competitive advantage to those firms that integrate forward.

Long-term objectives are needed at which level(s)in an organization?

Although bankruptcy can be an effective type of retrenchment strategy, it does not allow firms to avoid major debt obligations and to void union contracts.

Backward integration is effective in all of these cases EXCEPT

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