Question 1

A study of 30 firms revealed that outsourcing can lead to a ________ percent reduction in costs.

Accepted Answer

A)  3 
B)  9 
C)  20 
D)  30 
E)  50 
A)  3 
B)  9 
C)  20 
D)  30 
E)  50

Question 2

If a company wishes to be a technological leader and also maintain a cost advantage, the appropriate R&D strategy would be to

Accepted Answer

A)  increase the cost of the product. 
B)  lower the cost of the product or value activities by learning from the leader's experience. 
C)  avoid R&D costs through imitation. 
D)  create low-cost ways of performing value activities. 
E)  innovate in other activities to increase buyer value. 
A)  increase the cost of the product. 
B)  lower the cost of the product or value activities by learning from the leader's experience. 
C)  avoid R&D costs through imitation. 
D)  create low-cost ways of performing value activities. 
E)  innovate in other activities to increase buyer value.

Question 3

All of the following are benefits for a company to raising its debt levels EXCEPT

Accepted Answer

A)  deterrent to takeover by other firms. 
B)  improvement in productivity. 
C)  improvement in cash flows. 
D)  force management to focus on core businesses. 
E)  improvement in strategic options. 
A)  deterrent to takeover by other firms. 
B)  improvement in productivity. 
C)  improvement in cash flows. 
D)  force management to focus on core businesses. 
E)  improvement in strategic options.

Question 4

Penetration pricing attempts to hasten market development and offers the pioneer the opportunity to use the experience curve to gain market share with a low price and dominate the industry.

Accepted Answer

A) True 
 B)False

Question 5

According to Porter, to achieve a cost advantage by following the functional strategy of technological followership, a business unit should

Accepted Answer

A)  pioneer the lowest-cost product design. 
B)  innovate in other activities to increase buyer value. 
C)  avoid R&D costs through imitation. 
D)  create low-cost ways of performing value activities. 
E)  be the first firm down the learning curve. 
A)  pioneer the lowest-cost product design. 
B)  innovate in other activities to increase buyer value. 
C)  avoid R&D costs through imitation. 
D)  create low-cost ways of performing value activities. 
E)  be the first firm down the learning curve.

Question 6

An example of the use of the leader R&D functional strategy to achieve a differentiation competitive advantage is Nike Inc.

Accepted Answer

A) True 
 B)False

Question 7

Church & Dwight uses the line extension strategy when they put the Arm & Hammer name on various new food products.

Accepted Answer

A) True 
 B)False

Question 8

The attractiveness of a strategic alternative is affected by its perceived compatibility with the key stakeholders in a corporation's task environment.

Accepted Answer

A) True 
 B)False

Question 9

A company which pioneers an innovation is called a

Accepted Answer

A)  technological follower. 
B)  technological opportunist. 
C)  technological leader. 
D)  technological manufacturer. 
E)  technological entrepreneur. 
A)  technological follower. 
B)  technological opportunist. 
C)  technological leader. 
D)  technological manufacturer. 
E)  technological entrepreneur.

Question 10

As it relates to operations, AMT stands for

Accepted Answer

A)  Automated Manufacturing Technology. 
B)  Advanced Manufacturing Technology. 
C)  Asymptotic Manufacturing Technology. 
D)  Advanced Monotone Technology. 
E)  Automated Manufacturing Technician. 
A)  Automated Manufacturing Technology. 
B)  Advanced Manufacturing Technology. 
C)  Asymptotic Manufacturing Technology. 
D)  Advanced Monotone Technology. 
E)  Automated Manufacturing Technician.

Question 11

To avoid the consensus trap, which technique assigns a group or individual to identify potential pitfalls and problems with a proposed alternative strategy in a formal presentation?

Accepted Answer

A)  devil's advocate 
B)  Sloan's judgment 
C)  sales presentation 
D)  dialectical inquiry 
E)  scenario construction 
A)  devil's advocate 
B)  Sloan's judgment 
C)  sales presentation 
D)  dialectical inquiry 
E)  scenario construction

Question 12

Purchasing a product or service from an outside contractor that had been previously provided internally is called

Accepted Answer

A)  vertical integration. 
B)  horizontal integration. 
C)  transaction costing. 
D)  outsourcing. 
E)  geographic integration. 
A)  vertical integration. 
B)  horizontal integration. 
C)  transaction costing. 
D)  outsourcing. 
E)  geographic integration.

Question 13

The automobile industry is currently experimenting with the strategy of mass customization in which pre-assembled sub-assemblies are delivered as they are needed to a company's assembly line workers.

Accepted Answer

A) True 
 B)False

Question 14

Corporate scenarios are pro forma balance sheets and income statements that forecast the effect each alternative strategy and its various programs will likely have on division and corporate return on investment.

Accepted Answer

A) True 
 B)False

Question 15

Research indicates that the use of work teams leads to decreased quality and productivity as well as lower employee satisfaction and commitment as a result of less accountability.

Accepted Answer

A) True 
 B)False

Question 16

What is outsourcing? What are the seven major outsourcing errors that should be avoided?

Accepted Answer

Outsourcing is purchasing from someone e

Question 17

There is mounting evidence that when an organization is facing a dynamic environment, the best strategic decisions are arrived at through consensus when everyone agrees on one alternative.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is NOT a goal of financial strategies?

Accepted Answer

A)  Examine the financial implication of corporate and business level strategic options and identify the best financial course of action. 
B)  Provide the corporation with the appropriate financial structure and funds to achieve its overall objectives. 
C)  Institute a new product development plan to generate profit gain market share. 
D)  Provide competitive advantage through a lower cost of funds and a flexible ability to raise capital to support a business strategy. 
E)  Attempt to maximize the financial value of the firm. 
A)  Examine the financial implication of corporate and business level strategic options and identify the best financial course of action. 
B)  Provide the corporation with the appropriate financial structure and funds to achieve its overall objectives. 
C)  Institute a new product development plan to generate profit gain market share. 
D)  Provide competitive advantage through a lower cost of funds and a flexible ability to raise capital to support a business strategy. 
E)  Attempt to maximize the financial value of the firm.

Question 19

The purchasing strategy in which two suppliers are the sole suppliers of different parts, but are also the backup suppliers for each other's parts is

Accepted Answer

A)  sole sourcing. 
B)  multiple sourcing. 
C)  just-in-time sourcing. 
D)  backup sourcing. 
E)  parallel sourcing. 
A)  sole sourcing. 
B)  multiple sourcing. 
C)  just-in-time sourcing. 
D)  backup sourcing. 
E)  parallel sourcing.

Question 20

What is a functional strategy?

Accepted Answer

Functional strategy is the approach a fu

A study of 30 firms revealed that outsourcing can lead to a ________ percent reduction in costs.

If a company wishes to be a technological leader and also maintain a cost advantage, the appropriate R&D strategy would be to

All of the following are benefits for a company to raising its debt levels EXCEPT

Penetration pricing attempts to hasten market development and offers the pioneer the opportunity to use the experience curve to gain market share with a low price and dominate the industry.

According to Porter, to achieve a cost advantage by following the functional strategy of technological followership, a business unit should

An example of the use of the leader R&D functional strategy to achieve a differentiation competitive advantage is Nike Inc.

Church & Dwight uses the line extension strategy when they put the Arm & Hammer name on various new food products.

The attractiveness of a strategic alternative is affected by its perceived compatibility with the key stakeholders in a corporation's task environment.

A company which pioneers an innovation is called a

As it relates to operations, AMT stands for

To avoid the consensus trap, which technique assigns a group or individual to identify potential pitfalls and problems with a proposed alternative strategy in a formal presentation?

Purchasing a product or service from an outside contractor that had been previously provided internally is called

The automobile industry is currently experimenting with the strategy of mass customization in which pre-assembled sub-assemblies are delivered as they are needed to a company's assembly line workers.

Corporate scenarios are pro forma balance sheets and income statements that forecast the effect each alternative strategy and its various programs will likely have on division and corporate return on investment.

Research indicates that the use of work teams leads to decreased quality and productivity as well as lower employee satisfaction and commitment as a result of less accountability.

What is outsourcing? What are the seven major outsourcing errors that should be avoided?

There is mounting evidence that when an organization is facing a dynamic environment, the best strategic decisions are arrived at through consensus when everyone agrees on one alternative.

Which of the following is NOT a goal of financial strategies?

The purchasing strategy in which two suppliers are the sole suppliers of different parts, but are also the backup suppliers for each other's parts is

What is a functional strategy?

Basic Concepts in Strategic Management

Corporate Governance

Ethics and Social Responsibility in Strategic Management

Environmental Scanning and Industry Analysis

Internal Scanning and Organizational Analysis

Strategy Formulation: Situation Analysis and Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Implementation: Organizing for Action

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters

Exam 8: Strategy Formulation: Functional Strategy and Strategic Choice

A study of 30 firms revealed that outsourcing can lead to a ________ percent reduction in costs.

If a company wishes to be a technological leader and also maintain a cost advantage, the appropriate R&D strategy would be to

All of the following are benefits for a company to raising its debt levels EXCEPT

Penetration pricing attempts to hasten market development and offers the pioneer the opportunity to use the experience curve to gain market share with a low price and dominate the industry.

According to Porter, to achieve a cost advantage by following the functional strategy of technological followership, a business unit should

An example of the use of the leader R&D functional strategy to achieve a differentiation competitive advantage is Nike Inc.

Church & Dwight uses the line extension strategy when they put the Arm & Hammer name on various new food products.

The attractiveness of a strategic alternative is affected by its perceived compatibility with the key stakeholders in a corporation's task environment.

A company which pioneers an innovation is called a

As it relates to operations, AMT stands for

To avoid the consensus trap, which technique assigns a group or individual to identify potential pitfalls and problems with a proposed alternative strategy in a formal presentation?

Purchasing a product or service from an outside contractor that had been previously provided internally is called

The automobile industry is currently experimenting with the strategy of mass customization in which pre-assembled sub-assemblies are delivered as they are needed to a company's assembly line workers.

Corporate scenarios are pro forma balance sheets and income statements that forecast the effect each alternative strategy and its various programs will likely have on division and corporate return on investment.

Research indicates that the use of work teams leads to decreased quality and productivity as well as lower employee satisfaction and commitment as a result of less accountability.

What is outsourcing? What are the seven major outsourcing errors that should be avoided?

There is mounting evidence that when an organization is facing a dynamic environment, the best strategic decisions are arrived at through consensus when everyone agrees on one alternative.

Which of the following is NOT a goal of financial strategies?

The purchasing strategy in which two suppliers are the sole suppliers of different parts, but are also the backup suppliers for each other's parts is

What is a functional strategy?

Basic Concepts in Strategic Management

Corporate Governance

Ethics and Social Responsibility in Strategic Management

Environmental Scanning and Industry Analysis

Internal Scanning and Organizational Analysis

Strategy Formulation: Situation Analysis and Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Implementation: Organizing for Action

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters