Question 1

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 2

McDonalds currently owns more than 50 percent of its restaurants.

Accepted Answer

A) True 
 B)False

Question 3

Cooperative arrangements and joint ventures between competitors are becoming increasingly popular.

Accepted Answer

A) True 
 B)False

Question 4

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 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

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 7

Product development is an appropriate strategy when an organization has successful products that are in the maturity stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 8

When companies take over functional operations of other firms, such as human resources, information systems, payroll, accounting, or customer service, this is called

Accepted Answer

A)  marketing. 
B)  outsourcing. 
C)  licensing. 
D)  franchising. 
E)  divestiture. 
A)  marketing. 
B)  outsourcing. 
C)  licensing. 
D)  franchising. 
E)  divestiture.

Question 9

Retrenchment would be an effective strategy when an organization

Accepted Answer

A)  has shrunk so quickly that major internal reorganization is needed. 
B)  is one of the stronger competitors in a given industry. 
C)  is plagued by inefficiency, low profitability, poor employee morale and pressure from stockholders to improve performance. 
D)  has decided to capitalize on opportunities, maximize threats, take advantage of strengths and overcome weaknesses. 
E)  does not have a clearly distinctive competence and has failed to meet its objectives and goals consistently over time. 
A)  has shrunk so quickly that major internal reorganization is needed. 
B)  is one of the stronger competitors in a given industry. 
C)  is plagued by inefficiency, low profitability, poor employee morale and pressure from stockholders to improve performance. 
D)  has decided to capitalize on opportunities, maximize threats, take advantage of strengths and overcome weaknesses. 
E)  does not have a clearly distinctive competence and has failed to meet its objectives and goals consistently over time.

Question 10

Market penetration, market development, and product development are intensive strategies.

Accepted Answer

A) True 
 B)False

Question 11

What kind of strategy is retrenchment?

Accepted Answer

A)  A turnaround strategy 
B)  An expansion strategy 
C)  A diagonal strategy 
D)  An intensive strategy 
E)  An offensive strategy 
A)  A turnaround strategy 
B)  An expansion strategy 
C)  A diagonal strategy 
D)  An intensive strategy 
E)  An offensive strategy

Question 12

Companies are avoiding outsourcing more and more because it is more expensive than traditional methods and it does not allow a firm to concentrate on core competencies.

Accepted Answer

A) True 
 B)False

Question 13

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 14

List some guidelines for when related diversification would be a particularly good strategy to pursue.

Accepted Answer

Six guidelines for when related diversif

Question 15

List some guidelines for when forward integration would be a particularly good strategy to pursue.

Accepted Answer

Some guidelines for when forward integra

Question 16

Borders closing 200 of its 488 superstores and laying off 6,000 of its 19,500 employees 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 17

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 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

Which strategy generally entails large research and development expenditures?

Accepted Answer

A)  Market penetration 
B)  Retrenchment 
C)  Forward integration 
D)  Product development 
E)  Divestiture 
A)  Market penetration 
B)  Retrenchment 
C)  Forward integration 
D)  Product development 
E)  Divestiture

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

McDonalds currently owns more than 50 percent of its restaurants.

Cooperative arrangements and joint ventures between competitors are becoming increasingly popular.

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.

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

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

Product development is an appropriate strategy when an organization has successful products that are in the maturity stage of the product life cycle.

When companies take over functional operations of other firms, such as human resources, information systems, payroll, accounting, or customer service, this is called

Retrenchment would be an effective strategy when an organization

Market penetration, market development, and product development are intensive strategies.

What kind of strategy is retrenchment?

Companies are avoiding outsourcing more and more because it is more expensive than traditional methods and it does not allow a firm to concentrate on core competencies.

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

List some guidelines for when related diversification would be a particularly good strategy to pursue.

List some guidelines for when forward integration would be a particularly good strategy to pursue.

Borders closing 200 of its 488 superstores and laying off 6,000 of its 19,500 employees is an example of

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

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

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

Which strategy generally entails large research and development expenditures?

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, Financeaccounting, RD, and MIS Issues

Strategy Review, Evaluation, and Control

Business Ethicssocial Responsibilityenvironmental Sustainability

Globalinternational Issues

Filters

Exam 5: Strategies in Action

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

McDonalds currently owns more than 50 percent of its restaurants.

Cooperative arrangements and joint ventures between competitors are becoming increasingly popular.

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.

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

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

Product development is an appropriate strategy when an organization has successful products that are in the maturity stage of the product life cycle.

When companies take over functional operations of other firms, such as human resources, information systems, payroll, accounting, or customer service, this is called

Retrenchment would be an effective strategy when an organization

Market penetration, market development, and product development are intensive strategies.

What kind of strategy is retrenchment?

Companies are avoiding outsourcing more and more because it is more expensive than traditional methods and it does not allow a firm to concentrate on core competencies.

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

List some guidelines for when related diversification would be a particularly good strategy to pursue.

List some guidelines for when forward integration would be a particularly good strategy to pursue.

Borders closing 200 of its 488 superstores and laying off 6,000 of its 19,500 employees is an example of

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

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

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

Which strategy generally entails large research and development expenditures?

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, Financeaccounting, RD, and MIS Issues

Strategy Review, Evaluation, and Control

Business Ethicssocial Responsibilityenvironmental Sustainability

Globalinternational Issues

Filters