Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A)  Retrenchment 
B)  A joint venture 
C)  Liquidation 
D)  Forward integration 
E)  Divestiture 
A)  Retrenchment 
B)  A joint venture 
C)  Liquidation 
D)  Forward integration 
E)  Divestiture

Question 4

What kind of strategy is retrenchment?

Accepted Answer

A)  A turnaround or reorganization strategy 
B)  An expansion strategy 
C)  A conglomerate strategy 
D)  An intensive strategy 
E)  An offensive strategy 
A)  A turnaround or reorganization strategy 
B)  An expansion strategy 
C)  A conglomerate strategy 
D)  An intensive strategy 
E)  An offensive strategy

Question 5

Under which condition would a cost leadership strategy be especially effective?

Accepted Answer

A)  When there are many ways to differentiate the product or service and many buyers perceive these differences as having value. 
B)  When buyer needs and uses are diverse. 
C)  When few rival firms are following a similar approach 
D)  When technological change is fast paced and competition revolves around rapidly evolving product features. 
E)  When the products of rival sellers are essentially identical and supplies are readily available from any of several eager sellers. 
A)  When there are many ways to differentiate the product or service and many buyers perceive these differences as having value. 
B)  When buyer needs and uses are diverse. 
C)  When few rival firms are following a similar approach 
D)  When technological change is fast paced and competition revolves around rapidly evolving product features. 
E)  When the products of rival sellers are essentially identical and supplies are readily available from any of several eager sellers.

Question 6

Unrelated diversification is an appropriate strategy when an organization's present channels of distribution can be used to market the new products to current customers.

Accepted Answer

A) True 
 B)False

Question 7

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 8

What refers to a strategy of seeking ownership of,or increased control over a firm's competitors?

Accepted Answer

A)  Forward integration 
B)  Conglomerate diversification 
C)  Backward integration 
D)  Horizontal integration 
E)  Concentric diversification 
A)  Forward integration 
B)  Conglomerate diversification 
C)  Backward integration 
D)  Horizontal integration 
E)  Concentric diversification

Question 9

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 10

Objectives provide direction and allow for organizational synergy.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

A differentiation strategy can only be achieved with a large target market.

Accepted Answer

A) True 
 B)False

Question 14

A cost leadership strategy can be especially effective when most buyers use the product in the same way.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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)  LBO 
E)  Divestiture 
A)  Hostile takeover 
B)  Merger 
C)  Acquisition 
D)  LBO 
E)  Divestiture

Question 17

Qualcomm Inc.'s recent expansion beyond cell phones into desktop hardware 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 18

Backward integration is effective in all of these 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 advantage 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 advantage of stable prices are not important. 
E)  when present suppliers have high profit margins.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Which of these strategies is effective when the number of suppliers is small and the number of competitors is large?

Accepted Answer

A)  Conglomerate diversification 
B)  Forward integration 
C)  Concentric diversification 
D)  Backward integration 
E)  Horizontal diversification 
A)  Conglomerate diversification 
B)  Forward integration 
C)  Concentric diversification 
D)  Backward integration 
E)  Horizontal diversification

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

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

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

What kind of strategy is retrenchment?

Under which condition would a cost leadership strategy be especially effective?

Unrelated diversification is an appropriate strategy when an organization's present channels of distribution can be used to market the new products to current customers.

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

What refers to a strategy of seeking ownership of,or increased control over a firm's competitors?

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

Objectives provide direction and allow for organizational synergy.

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

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

A differentiation strategy can only be achieved with a large target market.

A cost leadership strategy can be especially effective when most buyers use the product in the same way.

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

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

Qualcomm Inc.'s recent expansion beyond cell phones into desktop hardware is an example of

Backward integration is effective in all of these except

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

Which of these strategies is effective when the number of suppliers is small and the number of competitors is large?

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/Environmental Sustainability

Global/International Issues

Filters

Exam 5: Strategies in Action

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

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

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

What kind of strategy is retrenchment?

Under which condition would a cost leadership strategy be especially effective?

Unrelated diversification is an appropriate strategy when an organization's present channels of distribution can be used to market the new products to current customers.

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

What refers to a strategy of seeking ownership of,or increased control over a firm's competitors?

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

Objectives provide direction and allow for organizational synergy.

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

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

A differentiation strategy can only be achieved with a large target market.

A cost leadership strategy can be especially effective when most buyers use the product in the same way.

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

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

Qualcomm Inc.'s recent expansion beyond cell phones into desktop hardware is an example of

Backward integration is effective in all of these except

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

Which of these strategies is effective when the number of suppliers is small and the number of competitors is large?

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/Environmental Sustainability

Global/International Issues

Filters