Question 1

The __________ strategy involves an attempt to distinguish the firm's products or services from others in the industry.

Accepted Answer

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

Question 2

A business activity that an organization does particularly well relative to its competition is known as a(n) _________________________.

Accepted Answer

The answer of A business activity that an organization does...

Question 3

CASE
Scenario - Darla Davidson
Darla Davidson 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.
-Which one of the following is not one of the competitive forces that Porter recommends that Darla should recognize?

Accepted Answer

A)  Potential new entrants 
B)  Bargaining power of buyers 
C)  Threat of substitute products 
D)  Bargaining power of suppliers 
E)  All of these are competitive forces.

Question 4

Gillette operates numerous strategic business units. Most of its __________ are in the personal care division.

Accepted Answer

A)  dogs 
B)  question marks 
C)  stars 
D)  cash cows 
E)  none of these

Question 5

Strategic decisions at the business level concern amount of advertising, direction and extent of R & D, product changes, new product development, equipment and facilities, and expansion or contraction of product lines.

Accepted Answer

A) True 
 B)False

Question 6

Scenario - QT.com
Faced with rapidly growing business, Quick Trade, Inc., a global brokerage company with the largest market share, recently announced that they have established an on-line stock investment and trading subsidiary, QT.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.
-Quick Trade 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 7

Which of these is true about the cash cow?

Accepted Answer

A)  It generates tremendous profits in a rapidly growing industry. 
B)  It has a small market share in a rapidly growing industry. 
C)  It has a small market share in a slow growth industry. 
D)  It has a large market share in a slow growth industry. 
E)  It is generally a dead business that should be divested.

Question 8

The plan of action that prescribes resource allocation and other activities for dealing with the environment and helping the organization attain its goals is called a(n) ____________________.

Accepted Answer

The answer of The plan of action that prescribes resource...

Question 9

With a multidomestic strategy, a company will achieve the globalization or standardization of marketing and production approaches.

Accepted Answer

A) True 
 B)False

Question 10

The interaction of Production and Sales working together to produce profit greater than the total of both working separately is an example of synergy.

Accepted Answer

A) True 
 B)False

Question 11

List Porter's competitive forces.

Accepted Answer

The answer of List Porter's competitive forces....

Question 12

CASE
Scenario - Darla Davidson
Darla Davidson 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 Darla 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 13

Structural design pertains to managers' responsibilities, their degree of authority, and the consolidation of facilities, departments, and divisions.

Accepted Answer

A) True 
 B)False

Question 14

As a way of implementing their differentiation strategy which emphasizes quality, 123 Corporation decided to switch from an assembly line manufacturing system to a system based on work teams. This is an example of which of the dimensions used for implementing strategy?

Accepted Answer

A)  Leadership 
B)  Structural design 
C)  Human resources 
D)  Information systems 
E)  Control systems

Question 15

Briefly discuss Porter's three competitive strategies.

Accepted Answer

The answer of Briefly discuss Porter's three competitive strategies....

Question 16

__________ 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 17

For General Electric, a strong financial base, combined with an excellent reputation with creditors and the equity market, is with a significant strength to include in its SWOT analysis.

Accepted Answer

A) True 
 B)False

Question 18

A(n) ____________________ strategy seeks to achieve both global integration and national responsiveness.

Accepted Answer

The answer of A(n) ____________________ strategy seeks to achieve both...

Question 19

A __________ is a business activity that an organization does especially well relative to its competition is known as

Accepted Answer

A)  strategy 
B)  synergy 
C)  cash cow 
D)  core competence 
E)  multidomestic

Question 20

____________________ strategies are when companies join with other organizations to promote innovation, expand markets, and pursue joint goals.

Accepted Answer

The answer of ____________________ strategies are when companies join with...

Exam 8: Strategy Formulation and Implementation

The __________ strategy involves an attempt to distinguish the firm's products or services from others in the industry.

A business activity that an organization does particularly well relative to its competition is known as a(n) _________________________.

Gillette operates numerous strategic business units. Most of its __________ are in the personal care division.

Strategic decisions at the business level concern amount of advertising, direction and extent of R & D, product changes, new product development, equipment and facilities, and expansion or contraction of product lines.

Which of these is true about the cash cow?

The plan of action that prescribes resource allocation and other activities for dealing with the environment and helping the organization attain its goals is called a(n) ____________________.

With a multidomestic strategy, a company will achieve the globalization or standardization of marketing and production approaches.

The interaction of Production and Sales working together to produce profit greater than the total of both working separately is an example of synergy.

List Porter's competitive forces.

Structural design pertains to managers' responsibilities, their degree of authority, and the consolidation of facilities, departments, and divisions.

As a way of implementing their differentiation strategy which emphasizes quality, 123 Corporation decided to switch from an assembly line manufacturing system to a system based on work teams. This is an example of which of the dimensions used for implementing strategy?

Briefly discuss Porter's three competitive strategies.

__________ pertains to the organization as a whole.

For General Electric, a strong financial base, combined with an excellent reputation with creditors and the equity market, is with a significant strength to include in its SWOT analysis.

A(n) ____________________ strategy seeks to achieve both global integration and national responsiveness.

A __________ is a business activity that an organization does especially well relative to its competition is known as

____________________ strategies are when companies join with other organizations to promote innovation, expand markets, and pursue joint goals.