Question 1

Equity financing is preferred for unrelated diversification while debt financing is preferred for related diversification.

Accepted Answer

A) True 
 B)False

Question 2

The pricing,selling,and distributing of a product is referred to as a(n)________ strategy.

Accepted Answer

A)  functional 
B)  marketing 
C)  operations 
D)  financial 
E)  human resource management

Question 3

An example of the use of the leader R&D functional strategy to achieve a differentiation competitive advantage is Nike Inc.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following reflects the impact of industry backgrounds on strategic choices?

Accepted Answer

A)  Executives from other industries tend to make riskier decisions. 
B)  Executives with strong ties within an industry tend to choose strategies commonly used in that industry. 
C)  Executives from other industries tend to downsize as a first choice. 
D)  Executives with strong ties within an industry tend to make riskier decisions. 
E)  Executives from other industries tend to emphasize ROI.

Question 5

To avoid the consensus trap,which technique involving presenting two conflicting views (the thesis and the antithesis)presented in a debate format can be traced back to Plato and Aristotle?

Accepted Answer

A)  devil's advocate 
B)  Sloan's judgment 
C)  sales presentation 
D)  dialectical inquiry 
E)  scenario construction

Question 6

According to a recent survey by Deloitte Consulting,the most popular outsourced activity was

Accepted Answer

A)  marketing. 
B)  sales. 
C)  finance. 
D)  R&D. 
E)  information technology.

Question 7

The automobile industry is currently experimenting with the strategy of mass customization in which pre-assembled sub-assemblies are delivered as they are needed to a company's assembly line workers.

Accepted Answer

A) True 
 B)False

Question 8

The first step in constructing a corporate scenario is to

Accepted Answer

A)  develop a common-sized financial statement. 
B)  construct detailed pro forma financial statements. 
C)  decide upon how much risk management is willing to accept. 
D)  analyze the societal environment. 
E)  use industry scenarios to develop a set of assumptions about the task environment.

Question 9

The reconfiguring of people,processes,units,and technology to give customers exactly what they want and when they want it is known as

Accepted Answer

A)  mass customization. 
B)  modular manufacturing. 
C)  a connected line batch flow. 
D)  open innovation. 
E)  a push marketing strategy.

Question 10

Leveraged buyouts are also sometimes referred to as

Accepted Answer

A)  leveraged bargains. 
B)  management buyouts. 
C)  management bargains. 
D)  coordinated buyouts. 
E)  debt buyouts.

Question 11

A corporation might have invested so much in a particular strategy that top management is unwilling to accept its failure.This is an example of which strategy to avoid?

Accepted Answer

A)  follow the leader 
B)  hit another home run 
C)  arms race 
D)  do everything 
E)  losing hand

Question 12

The real-options approach used by Chevron for bidding on petroleum reserves improves organizational performance.

Accepted Answer

A) True 
 B)False

Question 13

What are the strategies to avoid proposed by the authors?

Accepted Answer

The answer of What are the strategies to avoid proposed...

Question 14

Multi-national corporations use sophisticated intranets to allow employees to practice follow-the-sun management,in which project team members living in one country can pass their work to team members in another country in which the workday is just beginning.

Accepted Answer

A) True 
 B)False

Question 15

Using a market development strategy,a company can capture a larger share of an existing market for current products or develop new markets for current products.

Accepted Answer

A) True 
 B)False

Question 16

P&G decreed that the company would search outside their organization for new ideas.To achieve this,the company used

Accepted Answer

A)  technology scouts. 
B)  a technological follower strategy. 
C)  open sourcing. 
D)  outsourcing. 
E)  offshoring.

Question 17

A popular financial strategy in which a company is acquired in a transaction financed largely by debt and eventually paid with money generated from the acquired company's operations or by sale of its assets is

Accepted Answer

A)  illegal in most countries. 
B)  a good way to build a core competency. 
C)  an application of the capital asset pricing model. 
D)  the leveraged buyout. 
E)  an example of internal financing.

Question 18

According to Paul Nutt,a decision-making authority,what percent of decisions made by managers are failures?

Accepted Answer

A)  10% 
B)  25% 
C)  50% 
D)  75% 
E)  90%

Question 19

A company that has previously found great success pioneering an extremely successful product that is presently trying to turn another "long-shot" into a success would be an example of which strategy to avoid?

Accepted Answer

A)  follow the leader 
B)  hit another home run 
C)  arms race 
D)  do everything 
E)  losing hand

Question 20

A company which has invested so heavily in a particular strategy that it will not consider a change in this strategy even if it is not successful,would be an example of which strategy to avoid?

Accepted Answer

A)  follow the leader 
B)  hit another home run 
C)  arms race 
D)  do everything 
E)  losing hand

Exam 8: Strategy Formulation: Functional Strategy and Strategic Choice

Equity financing is preferred for unrelated diversification while debt financing is preferred for related diversification.

The pricing,selling,and distributing of a product is referred to as a(n) ________ strategy.

An example of the use of the leader R&D functional strategy to achieve a differentiation competitive advantage is Nike Inc.

Which of the following reflects the impact of industry backgrounds on strategic choices?

To avoid the consensus trap,which technique involving presenting two conflicting views (the thesis and the antithesis) presented in a debate format can be traced back to Plato and Aristotle?

According to a recent survey by Deloitte Consulting,the most popular outsourced activity was

The automobile industry is currently experimenting with the strategy of mass customization in which pre-assembled sub-assemblies are delivered as they are needed to a company's assembly line workers.

The first step in constructing a corporate scenario is to

The reconfiguring of people,processes,units,and technology to give customers exactly what they want and when they want it is known as

Leveraged buyouts are also sometimes referred to as

A corporation might have invested so much in a particular strategy that top management is unwilling to accept its failure.This is an example of which strategy to avoid?

The real-options approach used by Chevron for bidding on petroleum reserves improves organizational performance.

What are the strategies to avoid proposed by the authors?

Multi-national corporations use sophisticated intranets to allow employees to practice follow-the-sun management,in which project team members living in one country can pass their work to team members in another country in which the workday is just beginning.

Using a market development strategy,a company can capture a larger share of an existing market for current products or develop new markets for current products.

P&G decreed that the company would search outside their organization for new ideas.To achieve this,the company used

A popular financial strategy in which a company is acquired in a transaction financed largely by debt and eventually paid with money generated from the acquired company's operations or by sale of its assets is

According to Paul Nutt,a decision-making authority,what percent of decisions made by managers are failures?

A company that has previously found great success pioneering an extremely successful product that is presently trying to turn another "long-shot" into a success would be an example of which strategy to avoid?

A company which has invested so heavily in a particular strategy that it will not consider a change in this strategy even if it is not successful,would be an example of which strategy to avoid?