Question 1

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

Question 2

Financial objectives involve all of the following EXCEPT

Accepted Answer

A)  growth in revenues 
B)  larger market share 
C)  higher dividends 
D)  greater return on investment 
E)  a rising stock price 
A)  growth in revenues 
B)  larger market share 
C)  higher dividends 
D)  greater return on investment 
E)  a rising stock price

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Under which strategy would you offer products or services to a wide range of customers at the lowest price available on the market?

Accepted Answer

A)  Cost Leadership - Low Cost 
B)  Cost Leadership - Best Value 
C)  Focus - Low Cost 
D)  Focus - Best Value 
E)  Differentiation 
A)  Cost Leadership - Low Cost 
B)  Cost Leadership - Best Value 
C)  Focus - Low Cost 
D)  Focus - Best Value 
E)  Differentiation

Question 5

Market development includes introducing present products into new geographic areas.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is most likely NOT included in the functional level of a small company?

Accepted Answer

A)  Finance 
B)  Marketing 
C)  R&D 
D)  Department managers 
E)  Human resource managers 
A)  Finance 
B)  Marketing 
C)  R&D 
D)  Department managers 
E)  Human resource managers

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

There were only 106 public U.S. companies filing bankruptcy in 2010, less than half the 211 public firms that filed the prior year.

Accepted Answer

A) True 
 B)False

Question 9

Which strategy should an organization use if it competes in a no-growth or a slow-growth industry?

Accepted Answer

A)  Divestiture 
B)  Related diversification 
C)  Backward integration 
D)  Unrelated diversification 
E)  Retrenchment 
A)  Divestiture 
B)  Related diversification 
C)  Backward integration 
D)  Unrelated diversification 
E)  Retrenchment

Question 10

In which situation would horizontal integration be an especially effective strategy?

Accepted Answer

A)  when an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for "tending substantially" to reduce competition 
B)  when an organization competes in a slowing industry 
C)  when decreased economies of scale provide major competitive advantages 
D)  when an organization has neither the capital nor human talent needed to successfully manage an expanded organization 
E)  when competitors are succeeding due to managerial expertise or having particular resources an organization possesses 
A)  when an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for "tending substantially" to reduce competition 
B)  when an organization competes in a slowing industry 
C)  when decreased economies of scale provide major competitive advantages 
D)  when an organization has neither the capital nor human talent needed to successfully manage an expanded organization 
E)  when competitors are succeeding due to managerial expertise or having particular resources an organization possesses

Question 11

Divestiture is selling all of a company's assets, in parts, for their tangible worth.

Accepted Answer

A) True 
 B)False

Backward integration is effective in all of these cases EXCEPT

Financial objectives involve all of the following EXCEPT

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

Under which strategy would you offer products or services to a wide range of customers at the lowest price available on the market?

Market development includes introducing present products into new geographic areas.

Which of the following is most likely NOT included in the functional level of a small company?

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

There were only 106 public U.S. companies filing bankruptcy in 2010, less than half the 211 public firms that filed the prior year.

Which strategy should an organization use if it competes in a no-growth or a slow-growth industry?

In which situation would horizontal integration be an especially effective strategy?

Divestiture is selling all of a company's assets, in parts, for their tangible worth.

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

Backward integration is effective in all of these cases EXCEPT

Financial objectives involve all of the following EXCEPT

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

Under which strategy would you offer products or services to a wide range of customers at the lowest price available on the market?

Market development includes introducing present products into new geographic areas.

Which of the following is most likely NOT included in the functional level of a small company?

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

There were only 106 public U.S. companies filing bankruptcy in 2010, less than half the 211 public firms that filed the prior year.

Which strategy should an organization use if it competes in a no-growth or a slow-growth industry?

In which situation would horizontal integration be an especially effective strategy?

Divestiture is selling all of a company's assets, in parts, for their tangible worth.

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