Exam 5: Strategies in Action

Strategists in governmental organizations operate with far more strategic autonomy than their counterparts in private firms.

A leveraged buyout occurs when a firm's management and other private investors use borrowed funds to buy out the firm's shareholders.

Strategic objectives include larger market share, quicker on-time delivery than rivals, shorter design-to-market times than rivals, lower costs than rivals, and wider geographic coverage than rivals.

The most effective differentiation bases are those that are hard or expensive for rivals to duplicate.

Chapter 7 bankruptcy is a liquidation procedure used only when a firm sees no hope of being able to operate successfully or to obtain necessary creditor agreement.

It is vital that strategists always consider all feasible alternatives that could benefit the firm.

Chapter 9 bankruptcy applies to municipalities.

The overall aim of the Balanced Scorecard is to balance financial objectives with strategic objectives.

Starbucks reaching a deal with Green Mountain Coffee Roasters for that firm to sell packs of Starbucks Tazo-branded coffee and tea in their brewers is an example of which type of strategy?

Define and give an example of three intensive strategies.

Franchising is an effective means of implementing forward integration.

A differentiation strategy can be especially attractive when the industry has many different niches and segments, thereby allowing a focuser to pick a competitively attractive niche suited to its own resources.

All of the following are cooperative arrangements EXCEPT

Liquidation is often appropriate when retrenchment and divestiture have failed.

Unrelated diversification may be an especially effective strategy when an organization's basic industry is experiencing increasing annual sales and profits.

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

The year 2010 saw a 13 percent increase in mergers and acquisitions in the U.S.

White knight is a term that refers to a firm that agrees to acquire another firm when the other firm is facing a hostile takeover by some company.

Which strategy seeks to increase market share for present products or services in present markets through greater marketing efforts?

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