Deck 7: Strategy and Strategic Management

Question 1

Which of the following is NOT a retrenchment strategy?

A) Diversification
B) Liquidation
C) Restructuring
D) Divestiture

Answer 1

A

Question 2

When a company expands in its existing markets,it is called growth through __________.

A) retrenchment
B) diversification
C) concentration
D) globalization

Answer 2

C

Question 3

Which of these is an example of a strategic question at the corporate level?

A) What should our next product be?
B) How will we price our newest product?
C) Should we set up more sales offices?
D) In what industries and markets should we compete?

Answer 3

D

Question 4

Both Coca-Cola and PepsiCo have pursued __________ by purchasing some of their major bottlers.

A) forward vertical integration
B) backward vertical integration
C) forward horizontal integration
D) backward horizontal integration

Question 5

A strategy that guides activities within a specific area such as engineering and marketing is called a(n)____________ strategy.

A) business
B) functional
C) corporate
D) employee

Question 6

When a company expands by entering new business areas,it is called growth through __________.

A) diversification
B) vertical integration
C) retrenchment
D) globalization

Question 7

A strategy for expanding an organization's business is called a __________ strategy.

A) big
B) multiple
C) retrenchment
D) growth

Question 8

In a large company,a strategy that sets the long-term direction for the entire company is called a __________ strategy.

A) corporate
B) senior level
C) functional
D) board

Question 9

ABC International is expanding by acquiring suppliers and distributors.This is called growth through

A) diversification.
B) vertical integration.
C) retrenchment.
D) globalization.

Question 10

A(n)______________ is a comprehensive action plan that identifies long-term direction for an organization.

A) competitive advantage
B) strategy
C) objective
D) idea

Question 11

The riskiest growth strategy is through __________.

A) vertical integration
B) unrelated diversification
C) related diversification
D) backward integration

Question 12

A strategy whose objective is to correct major problems in the business through radical changes to current operations is called a _________ strategy.

A) going out of business
B) growth
C) status quo
D) retrenchment

Question 13

All of the following are growth strategies EXCEPT:

A) concentration
B) diversification
C) vertical integration
D) restructuring

Question 14

What are the three levels of strategy used in organizations?

A) Personal, competitive, and corporate
B) Competitive, corporate, and legal
C) Corporate, business, and functional
D) Business, functional, and competitive

Question 15

A phrase or statement that focuses organizational energies on achieving a specific goal is called a(n)____________.

A) mission
B) vision
C) strategic intent
D) logo

Question 16

Operating in successful ways that are difficult to imitate is called a __________.

A) strategy
B) strategic intent
C) business plan
D) competitive advantage

Question 17

Microsoft promised to put a computer within an arm's reach of every consumer in the world.This could be considered a statement of __________.

A) strategic intent
B) strategy
C) competitive advantage
D) global positioning

Question 18

A strategy that identifies how a division or business unit will compete in its product or service domain is called a __________ strategy.

A) corporate
B) middle management
C) business
D) bottom level

Question 19

An example of a question asked at the business strategy level is:

A) How are we going to compete for customers in a competitive market?
B) What is our role in supporting engineering?
C) How many divisions should we have?
D) In what industries and markets should the corporation compete in?

Question 20

An example of a strategic question asked at the functional level is:

A) How does the engineering department support the business strategy?
B) What kind of product or service mix should we have?
C) How are we going to compete within this competitive industry?
D) In what industries and markets should the corporation compete in?

Question 21

The electronic version of the basic retail strategy of selling directly to customers is __________.

A) e-business
B) B2C
C) B2G
D) B2B

Question 22

The __________ statement defines the purpose of the organization and its reason for existence in society.

A) operating objectives
B) corporate strategy
C) mission
D) strategy

Question 23

A __________ strategy views the world as one market and adopts standard products and advertising for use worldwide.

A) multidomestic
B) globalization
C) diversification
D) transnational

Question 24

Strategic management consists of strategy __________ and __________.

A) action; implementation
B) implementation; direction
C) formulation; implementation
D) formulation; review

Question 25

When a company closes and sells its assets in order to pay its debts,it is called __________.

A) divestiture
B) liquidation
C) diversification
D) restructuring

Question 26

A __________ strategy customizes products and advertising to the culture of the local markets into which they are sold.

A) multidomestic
B) globalization
C) diversification
D) transnational

Question 27

Specific results that companies try to achieve such as net sales and profits are common results called __________.

A) operations
B) mission statements
C) strategic plans
D) operating objectives

Question 28

The web-based business model of __________ involves providing free listings from online merchants for directing potential customers to them.

A) advertising
B) brokerage
C) referral
D) subscription

Question 29

Which of these refers to the process of formulating and implementing strategies to accomplish long term goals and to maintain a competitive advantage?

A) Strategic controlling
B) Strategic management
C) Globalization
D) Vertical integration

Question 30

A special strength,which a company has,that gives it a competitive advantage is called a(n)__________.

A) unfair advantage
B) differential strategy
C) core competency
D) differential advantage

Question 31

Which of these strategies tries to operate without a strong national identity and seeks a balance between the efficiency of worldwide operations and responsiveness to local cultures?

A) Multidomestic
B) Globalization
C) Diversification
D) Transnational

Question 32

"S" in the SWOT analysis refers to:

A) Strengths
B) Standards
C) Social
D) Systems

Question 33

The retrenchment strategy that calls for selling off part of the organization is called __________.

A) liquidation
B) downsizing
C) diversification
D) divestiture

Question 34

Two companies join together in partnership to pursue an area of mutual interest.This is called a(n)__________.

A) acquisition
B) downsizing
C) strategic alliance
D) divestiture

Question 35

Garden Tools,Inc.(GTI)uses the internet to market their products and gain competitive advantage.GTI is employing a(n)__________ strategy.

A) communication
B) computer
C) e-business
D) electronic

Question 36

When a company reduces the size of its existing operations,it is called __________.

A) divestiture
B) liquidation
C) downsizing
D) diversification

Question 37

The SWOT element that focuses on outdated facilities and obsolete technologies in an organization is called __________.

A) threats
B) opportunities
C) weaknesses
D) strengths

Question 38

Which strategy uses information technology and the internet to link organizations vertically in supply chains?

A) B2C
B) B2S
C) B2G
D) B2B

Question 39

A __________ protects an insolvent firm from creditors during a period of reorganization to restore profitability.

A) divestiture
B) downsizing
C) backward integration
D) chapter 11 bankruptcy

Question 40

A company legally works with its rivals on projects of mutual benefit.This is called __________.

A) competition
B) collusion
C) co-opetition
D) restructuring

Question 41

A special strength that gives an organization a competitive advantage is called a core competency.

Question 42

According to Michael Porter,industry attractiveness is a function of which of these five forces?

A) Profitability, market share, workforce quality, innovativeness, and social responsibility
B) Cost efficiency, product quality, service quality, workforce quality, and innovativeness
C) Differentiation, cost leadership, focused differentiation, focused cost, and integration
D) Competitors, new entrants, suppliers, customers, and substitutes

Question 43

The process of strategic management focuses only on developing strategies.

Question 44

Just about any kind of partnership between two companies could be called a strategic alliance.

Question 45

Critical thinking is a "must have" for success in strategic management.

Question 46

The strategy of working with rivals on projects of mutual benefit is called crowdsourcing.

Question 47

When ABC Manufacturing focuses on offering products that are unique compared to competitors' products,they are focusing on a(n)_________ strategy.

A) integrated
B) cost leadership
C) differentiation
D) diversification

Question 48

From the BCG matrix,all of the following describe "question marks" EXCEPT:

A) Do not generate much profit
B) Low market shares, high market growth
C) High market shares, low market growth
D) Difficult for strategic decision making

Question 49

Business strategies should support business goals.

Question 50

If Toddler Toys (TT)has products that the Boston Consulting Group would identify as dogs,which of these would be the best strategy for TT?

A) High growth
B) Retrenchment
C) Low growth
D) No growth

Question 51

A functional strategy provides long-term direction for the total enterprise.

Question 52

A strategic position within an industry relying upon low cost for a market segment would be called a:

A) focused price leadership strategy.
B) focused differentiation strategy.
C) focused cost leadership strategy.
D) differentiation strategy.

Question 53

With the release of its iPad,Apple was the first to market an innovative product by linking design,technology,and customer appeal.As such,the iPad offers Apple a sustainable competitive advantage.

Question 54

The key to having a sustainable competitive advantage is to operate in a way that is difficult to imitate.

Question 55

The advantage of growth through concentration is that you are growing in an area that you know and,presumably,have expertise.

Question 56

A SWOT analysis includes a detailed examination of an organization's strengths and weaknesses.

Question 57

A mission statement includes specific goals that the organization wants to achieve.

Question 58

The web-based business model of infomediary brings buyers and sellers together for online business transactions and taking a percentage from the sales.

Question 59

A strategic leader must do all of the following EXCEPT:
E) Make sure all competing ideas receive attention and resources.
F) Implement and control organizational strategies.
G) Inspire people to engage in the process of continuous change. h) Create a sense of urgency.

Question 60

A retrenchment strategy could be a "going out of business" strategy.

Question 61

The international business strategy that adopts standard products and advertising to use worldwide is called a(n)__________ strategy.

Question 62

A(n)__________ is a comprehensive action plan that identifies long-term direction for an organization and guides resource utilization to accomplish its goals.

Question 63

When your company expands into new areas of business it is called ________.

Question 64

__________ entails cutting the size of your organization and reducing the workforce.

Question 65

Define the difference between a competitive advantage and a sustainable competitive advantage.

Question 66

"Cash cows" are the business units that have high market shares in high-growth markets in the BCG matrix.

Question 67

The ability to perceive situations,gather and interpret relevant information,and make decisions is called __________.

Question 68

__________ is strategic use of the Internet to engage customers and potential customers in providing opinions and suggestions on products and their designs.

Question 69

A(n)__________ strategy seeks the lowest costs of operations within a special market segment.

Question 70

Strategic leadership inspires people to implement organizational strategies.

Question 71

__________ is the capability to inspire people to successfully engage in a process of continuous change,performance enhancement,and implementation of the firm's goals.

Question 72

Porter's Model of Industry Attractiveness includes four competitive forces.

Question 73

Special strengths of an organization that give the organization a competitive advantage are called __________________.

Question 74

The makers of Coke and Pepsi follow a focused cost leadership strategy.

Question 75

A focused differentiation is when you compete on price with your competitors.

Question 76

The process of putting strategies into action is called strategic _____________.

Question 77

When a business owner sells off parts of their organization to refocus attention on core business areas it is called a _________.

Question 78

Operating objectives such as profits,cost efficiency,market share,product quality,a talented workforce,innovation,and social responsibility are often under scrutiny when,executives meet to discuss how well an organization is doing.

Question 79

Strategies that guide the activities of specific areas in implementing the organizational-level strategies are called ________ strategies.

Question 80

The shorter-term guides to action under the mission statement are called __________.