Deck 7: Strategy and Strategic Management: Insight and Hard Work Deliver Results

Question 1

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

Answer 1

A

Question 2

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

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

Answer 2

A

Question 3

Which of the following is NOT a growth strategy?

A) Concentration
B) Diversification
C) Vertical integration
D) Restructuring

Answer 3

D

Question 4

The levels of strategy used in organizations are corporate, business, and __________.*

A) personal
B) competitive
C) functional
D) legal

Question 5

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 6

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

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

Question 7

Coca-Cola promises to put a Coke 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 8

An example of a strategic question at the corporate level is:*

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?

Question 9

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 10

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

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

Question 11

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

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

Question 12

Which of the following is NOT a retrenchment strategy?*

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

Question 13

__________ is a phrase or statement that focuses organizational energies on achieving a specific goal.

A) Mission
B) Vision
C) Strategic intent
D) Logo

Question 14

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

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

Question 15

When a company expands by acquiring suppliers or distributors, it is called growth through ________.*

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

Question 16

The riskiest growth strategy is through __________.

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

Question 17

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 18

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 19

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 20

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

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

Question 21

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 22

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 23

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

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

Question 24

A __________ strategy uses information technology and the internet to link organizations vertically in supply chains.*

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

Question 25

Strategic management consists of strategy __________ and __________.

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

Question 26

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 27

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 28

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

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

Question 29

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 30

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

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

Question 31

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 32

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 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

Companies that use the internet to market their products and gain competitive advantage are employing a(n) __________ strategy.*

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

Question 35

A __________ strategy 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 36

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 37

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 38

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 39

The process of formulating and implementing strategies to accomplish long term goals and to maintain a competitive advantage is called __________.*

A) strategic controlling
B) strategic management
C) globalization
D) vertical integration

Question 40

Which of the following is NOT a part of a SWOT analysis?*

A) Strengths
B) Standards
C) Weaknesses
D) Opportunities

Question 41

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 42

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

Question 43

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

Question 44

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

Question 45

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

Question 46

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

Question 47

Business strategies should support business goals.

Question 48

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

Question 49

Co-opetition is the strategy of working with rivals on projects of mutual benefit.

Question 50

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

Question 51

Porter suggests that industry attractiveness is a function of five forces, including:*

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.
E) None of the above are Porter's list of forces.

Question 52

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

Question 53

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 54

What is the best strategy for products that the Boston Consulting Group would identify as dogs?*

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

Question 55

The process of strategic management focuses only on developing strategies.

Question 56

A strategy that focuses on offering products that are unique with respect to competitors' products is called a(n) _________ strategy.*

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

Question 57

The recommendation of the BCG matrix on question marks is retrenchment or __________.*

A) investing freely
B) investing for stability
C) targeting only the most promising question marks for growth
D) divesting

Question 58

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

Question 59

A strategic leader has to:*

A) avoid communication in order to minimize distractions.
B) dictate direction.
C) strive for ambiguity in order to avoid divisions in the group.
D) create a sense of urgency.

Question 60

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

Question 61

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

Question 62

Strategic __________ is the process of putting strategies into action.

Question 63

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

Question 64

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 65

In the BCG matrix, stars are the business units that have high market shares in high-growth markets.

Question 66

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

Question 67

If your strategy is to compete on price against your competitors, your strategy is one of focused differentiation.

Question 68

Expansion into areas of new business is called __________.

Question 69

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

Question 70

__________ refers to the ability to perceive situations, gather and interpret relevant information, and make decisions.

Question 71

__________ are special strengths of an organization and give the organization a competitive advantage.

Question 72

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

Question 73

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

Question 74

Strategic leadership inspires people to implement organizational strategies.

Question 75

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

Question 76

Porter's Model of Industry Attractiveness includes four forces.

Question 77

__________ strategies guide the activities of specific areas in implementing the organizational-level strategies.

Question 78

__________ 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 79

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

Question 80

__________ involves selling off parts of the organization to refocus attention on core business areas.