Question 1

The acquisition of a business that is related to current product lines or that takes the corporation into new areas is called _____.

Accepted Answer

The answer of The acquisition of a business that is...

Question 2

CASE
Scenario - Theresa Teutul
Theresa Teutul was an executive with Digital Industries, a leading manufacturer of color televisions. She recognized that the color television market in the late 1970's was facing significant challenges. After two decades of highly successful development and marketing, the sales of color televisions had slowed and replacing older color television sets largely created her market.
-The strategy that the BCG matrix suggests that Theresa should take for this SBU is:

Accepted Answer

A)  invest and grow. 
B)  liquidate while still profitable. 
C)  ask her astrologer for advice. 
D)  keep the SBU healthy and use its excess earnings to invest in other SBU's. 
E)  divestiture.

Question 3

Unrelated diversification occurs when an organization expands into a totally new line of business.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Strategic thinking is more important -profit businesses than for non-profit organizations.

Accepted Answer

A) True 
 B)False

Question 6

After Sunshine Systems merged with RTD Enterprises, company executives noticed that due to increased employee collaboration between the two units, costs were down and revenues increased within both areas. This is an example of what business phenomenon?

Accepted Answer

A)  Strategy execution 
B)  Portfolio strategy 
C)  Core competency 
D)  Synergy 
E)  Delivering value

Question 7

In the BCG matrix, the dog has _____ market share and _____ business growth rate.

Accepted Answer

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

Question 8

An SBU stands for Star Business Unit.

Accepted Answer

A) True 
 B)False

Question 9

The "How do we compete?" question concerns functional-level strategy.

Accepted Answer

A) True 
 B)False

Question 10

A transnational strategy combines degrees of both global standardization and national responsiveness.

Accepted Answer

A) True 
 B)False

Question 11

The _____ function recruits selects, trains, transfers, promotes, and lays off employees to achieve strategic goals.

Accepted Answer

A)  production 
B)  leadership 
C)  information and control systems 
D)  structural design 
E)  human resource

Question 12

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

Accepted Answer

A)  cost leadership 
B)  differentiation 
C)  focus 
D)  internal growth 
E)  liquidation

Question 13

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.
-SS.com subsidiary for Swift Stocks can be classified as a _____.

Accepted Answer

A)  cash cow 
B)  dog 
C)  star 
D)  question mark 
E)  stuck in the middle business

Question 14

With a(n) _____ strategy, the organization aggressively seeks efficient facilities, pursues cost reductions, and uses tight cost controls to produce products more efficiently than competitors.

Accepted Answer

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

Question 15

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 16

Core competence is the plan of action that prescribes resource allocation and other activities for dealing with the environment.

Accepted Answer

A) True 
 B)False

Question 17

_____ is 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.

Accepted Answer

The answer of _____ is the set of decisions and...

Question 18

When properly managed, _____ can create additional value with existing resources, providing a big boost to the bottom line.

Accepted Answer

A)  synergy 
B)  competitors 
C)  government contacts 
D)  command structure 
E)  cooperation among customers

Question 19

Which of the following pertains to the organization as a whole?

Accepted Answer

A)  Business-level strategy 
B)  Functional-level strategy 
C)  Corporate-level strategy 
D)  Operational-level strategy 
E)  Competitive-level strategy

Question 20

Which of the following is NOT one of the tools used for putting strategy into action?

Accepted Answer

A)  Visible leadership 
B)  Diversification 
C)  Human Resources 
D)  Communication 
E)  Clear roles and accountability

Exam 8: Strategy Formulation and Execution

The acquisition of a business that is related to current product lines or that takes the corporation into new areas is called _____.

Unrelated diversification occurs when an organization expands into a totally new line of business.

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?

Strategic thinking is more important -profit businesses than for non-profit organizations.

After Sunshine Systems merged with RTD Enterprises, company executives noticed that due to increased employee collaboration between the two units, costs were down and revenues increased within both areas. This is an example of what business phenomenon?

In the BCG matrix, the dog has _ market share and _ business growth rate.

An SBU stands for Star Business Unit.

The "How do we compete?" question concerns functional-level strategy.

A transnational strategy combines degrees of both global standardization and national responsiveness.

The _____ function recruits selects, trains, transfers, promotes, and lays off employees to achieve strategic goals.

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

With a(n) _____ strategy, the organization aggressively seeks efficient facilities, pursues cost reductions, and uses tight cost controls to produce products more efficiently than competitors.

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

Core competence is the plan of action that prescribes resource allocation and other activities for dealing with the environment.

_____ is 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.

When properly managed, _____ can create additional value with existing resources, providing a big boost to the bottom line.

Which of the following pertains to the organization as a whole?

Which of the following is NOT one of the tools used for putting strategy into action?