Question 1

The question mark exists in a new, rapidly growing industry but has only a small market share, according to the BCG Matrix.

Accepted Answer

A) True 
 B)False  True

Question 2

For successful execution, alignment of everyone in the organization must occur.

Accepted Answer

A) True 
 B)False  True

Question 3

Decisions regarding the proper amount of advertising for a particular good or service are related to:

Accepted Answer

A)   corporate-level strategies.
B)   functional-level strategies.
C)   tactical-level strategies.
D)   business-level strategies.
E)   retrenchment strategies. D

Question 4

Differentiation, cost leadership, and focus are three of Porter's competitive strategies.

Accepted Answer

A) True 
 B)False

Question 5

Janessa is the CEO of a privately-held software company. In defining corporate-level strategies, which of the following questions would she most likely be concerned with?

Accepted Answer

A)   How do we compete?
B)   What business are we in?
C)   How does marketing support the business?
D)   How can we maximize profits?
E)   How can we make manufacturing processes more efficient?

Question 6

The set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals is known as:

Accepted Answer

A)   strategy formulation.
B)   strategic planning.
C)   strategic management.
D)   strategy implementation.
E)   strategy evaluation.

Question 7

How business units and product lines fit together in a logical way is the essence of:

Accepted Answer

A)   business-level strategy.
B)   portfolio strategy.
C)   competitive strategy.
D)   financial strategy.
E)   functional strategy.

Question 8

_____ refers to the use of managerial tools to direct resources toward the achievement of strategic goals.

Accepted Answer

A)   Strategy formulation
B)   Strategy coordination
C)   Strategy execution
D)   Strategy control
E)   Strategy planning

Question 9

Which strategy can be profitable for an organization when customers are loyal and willing to pay high prices?

Accepted Answer

A)   Focus
B)   Globalization
C)   Overall cost leadership
D)   Differentiation
E)   Liquidation

Question 10

Scenario - SS.com
 Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an on-line stock investment and trading subsidiary, SS.com, where investors can trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share but it faces a very high business growth rate. In the brokerage industry the competition is fierce and all players are cutting their on-line commission rates.
-Swift Stock is following which strategy, according to Porter, through the .com subsidiary?

Accepted Answer

A)   Stability
B)   Cost leadership
C)   Focus
D)   Differentiation
E)   Retrenchment

Question 11

Scenario - SS.com
 Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an on-line stock investment and trading subsidiary, SS.com, where investors can trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share but it faces a very high business growth rate. In the brokerage industry the competition is fierce and all players are cutting their on-line commission rates.
-If Swift Stock's traditional brokerage business were to face a declining business growth, it may need to be reclassified as a _____.

Accepted Answer

A)   cash cow
B)   dog
C)   star
D)   question mark
E)   dead business

Question 12

_____ can be defined as the combination of benefits received and costs paid by the customer.

Accepted Answer

A)   Organizational benefits
B)   Value
C)   Cost-benefit diversity
D)   Synergy
E)   Core competence

Question 13

What type of organizational unit has a unique business mission, product line, competitors, and markets relative to other units in the same corporation?

Accepted Answer

A)   Product unit
B)   Functional unit
C)   Strategic business unit
D)   Operational unit
E)   Business consulting group unit

Question 14

A corporate-level strategy is concerned with the question:

Accepted Answer

A)   what business are we in?
B)   how do we compete?
C)   how do we support our chosen strategy?
D)   where do we market our products?
E)   should we promote from within?

Question 15

The world-wide standardization of product design and advertising refers to globalization.

Accepted Answer

A) True 
 B)False

Question 16

The question How do we compete? concerns _____ strategy.

Accepted Answer

The answer of The question How do we compete? concerns...

Question 17

With a(n) _____ strategy, the organization concentrates on a specific regional market or buyer group.

Accepted Answer

The answer of With a(n) _____ strategy, the organization concentrates...

Question 18

According to the BCG Matrix, which of the following exists in a mature, slow-growth industry, but is a dominant business in the industry, with a large market share?

Accepted Answer

A)   Question mark
B)   Asterisk
C)   Dog
D)   Star
E)   Cash cow

Question 19

Gatekeep Utilities is a subsidiary of GW Enterprises. Gatekeep has a mission and product line that is unique from GW. Gatekeep's competitors are also very different from those of its parent, and the subsidiary markets to a very different group of customers. As such, Gatekeep can be described as a(n) _____.

Accepted Answer

A)   product unit
B)   functional unit
C)   operational unit
D)   strategic business unit
E)   boston consulting group unit

Question 20

In the BCG matrix, the star has a(n) _____ market share in a rapidly growing industry.

Accepted Answer

The answer of In the BCG matrix, the star has...

Exam 8: Strategy Formulation and Execution