Strategy And Strategic Management Ch7 Test Bank

Exploring Management, 7e (Schermerhorn)

Chapter 7 Strategy and Strategic Management

1) A(n) ________ is a comprehensive action plan for allocating resources to accomplish long-term organization goals.

A) competitive advantage

B) strategy

C) objective

D) idea

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

AACSB: Analytic

2) A ________ is a clear and lofty sense of why a business exists.

A) mission

B) vision

C) strategic intent

D) logo

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

AACSB: Analytic

3) Microsoft promised to put a computer 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

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

AACSB: Reflective Thinking

4) The ability to outperform rivals is called a ________.

A) strategy

B) strategic intent

C) business plan

D) competitive advantage

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

AACSB: Analytic

5) Operating in successful ways that are difficult for competitors to imitate results in ________.

A) a strategy

B) a strategic intent

C) the vertical integration of a company

D) a sustainable competitive advantage

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

AACSB: Analytic

6) What are the three levels of strategy used in organizations?

A) Personal, competitive, and corporate

B) Competitive, corporate, and legal

C) Corporate, business, and functional

D) Business, functional, and competitive

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

AACSB: Analytic

7) A strategy that sets the long-term direction for an organization as a whole is called a ________.

A) corporate strategy

B) financial strategy

C) functional strategy

D) business strategy

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

AACSB: Analytic

8) Which of these is an example of a strategic question at the corporate strategy level?

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?"

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

AACSB: Analytic

9) 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

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

AACSB: Analytic

10) A strategy that guides activities within a specific area of operations is called a(n) ________ strategy.

A) business

B) functional

C) corporate

D) employee

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

AACSB: Analytic

11) Which of the following is an example of a strategic question at the business strategy level?

A) "How are we going to compete for customers within this industry and in this market?"

B) "What is our role in supporting engineering?"

C) "How can we best utilize the marketing department to support implementation of the business strategy?"

D) "In what industries and markets should the corporation compete in?"

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

AACSB: Analytic

12) Which of the following is an example of a strategic question for a functional strategy?

A) "How can we best utilize the marketing department to support implementation of the business strategy?"

B) "What kind of product or service mix should we have?"

C) "How are we going to compete for customers within this this industry and in this market?"

D) "In what industries and markets should the corporation compete in?"

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

AACSB: Analytic

13) A strategy for expanding an organization's current operations is called a ________ strategy.

A) restructuring

B) stability

C) retrenchment

D) growth

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

AACSB: Analytic

14) All of the following are growth strategies EXCEPT ________.

A) concentration

B) diversification

C) vertical integration

D) restructuring

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

AACSB: Analytic

15) When a company expands in its existing markets, it is called growth through ________.

A) retrenchment

B) diversification

C) concentration

D) globalization

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

AACSB: Analytic

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

A) diversification

B) vertical integration

C) retrenchment

D) globalization

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

AACSB: Analytic

17) Orange International is expanding by acquiring suppliers and distributors. This is called growth through ________.

A) diversification

B) vertical integration

C) retrenchment

D) globalization

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

AACSB: Analytic

18) The riskiest growth strategy is through ________.

A) vertical integration

B) unrelated diversification

C) related diversification

D) backward integration

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

AACSB: Analytic

19) 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

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

AACSB: Analytic

20) A strategy with the objective of correcting performance difficulties in a business through radical changes to current operations is called a ________ strategy.

A) coopetition

B) growth

C) status quo

D) retrenchment

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

AACSB: Analytic

21) Which of the following is NOT a retrenchment strategy?

A) Diversification

B) Liquidation

C) Restructuring

D) Divestiture

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

AACSB: Analytic

22) 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

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

AACSB: Analytic

23) Which of the following statements is true about restructuring?

A) It occurs when a business closes and sells its assets to pay creditors.

B) It reduces the scale or mix of operations.

C) It is done by acquiring suppliers or distributors.

D) It involves expansion of an organization's current operations.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

AACSB: Analytic

24) When an organization reduces the size of its existing operations, it is called ________.

A) divestiture

B) liquidation

C) downsizing

D) diversification

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

AACSB: Analytic

25) The retrenchment strategy that involves selling off parts of an organization to refocus attention on core business areas is called ________.

A) liquidation

B) downsizing

C) diversification

D) divestiture

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

AACSB: Analytic

26) ________ 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

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

AACSB: Analytic

27) A ________ strategy views the world as one market and uses standardized products and advertising worldwide.

A) multidomestic

B) globalization

C) diversification

D) transnational

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Global strategies focus on international business initiatives.

AACSB: Analytic

28) A ________ strategy customizes products and advertising to fit local markets.

A) multidomestic

B) globalization

C) diversification

D) transnational

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Global strategies focus on international business initiatives.

AACSB: Analytic

29) Which of the following strategies integrates global operations without having a strong national identity?

A) Multidomestic

B) Globalization

C) Diversification

D) Transnational

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Global strategies focus on international business initiatives.

AACSB: Analytic

30) 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

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Cooperation strategies focus on alliances and partnerships.

AACSB: Analytic

31) ________ is the strategy of working with rivals on projects of mutual benefit.

A) Competition

B) Collusion

C) Coopetition

D) Restructuring

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Cooperation strategies focus on alliances and partnerships.

AACSB: Analytic

32) Garden Tools Inc. uses the Web to market their products and gain competitive advantage. Garden Tools is employing a(n) ________.

A) communication strategy

B) coopetition strategy

C) e-business strategy

D) multidomestic strategy

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

AACSB: Reflective Thinking

33) Which of the following web-based business models provides a meeting point sold by subscription or supported by advertising?

A) Merchant

B) Brokerage

C) Community

D) Freemium

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

AACSB: Analytic

34) Identify the web-based business model that provides a free service while collecting information on users and selling it to other businesses.

A) Brokerage

B) Infomediary

C) Referral

D) Freemium

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

AACSB: Analytic

35) The ________ model of web-based business involves providing free listings from online merchants for directing potential customers to them.

A) advertising

B) brokerage

C) referral

D) subscription

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

AACSB: Analytic

36) The electronic version of the basic retail strategy of selling directly to customers is known as a ________ business strategy.

A) C2B

B) B2C

C) B2G

D) B2B

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

AACSB: Analytic

37) Which of the following business strategies uses information technology and the Internet to link organizations together within supply chains?

A) B2C

B) P2P

C) B2G

D) B2B

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

AACSB: Analytic

38) Which of the following terms refers to the process of analyzing, formulating, and implementing strategies to accomplish long-term goals and maintain a competitive advantage?

A) Strategic controlling

B) Strategic management

C) Globalization

D) Sustainability

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: The strategic management process formulates and implements strategies.

AACSB: Analytic

39) Strategic management includes strategy ________.

A) negotiation, implementation, and analysis

B) implementation, direction, and negotiation

C) analysis, formulation, and implementation

D) formulation, review, and direction

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: The strategic management process formulates and implements strategies.

AACSB: Analytic

40) ________ is the process of crafting strategy to fit mission and strategic intent, objectives, and environmental conditions.

A) Coopetition

B) Liquidation

C) Strategy implementation

D) Strategy formulation

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: The strategic management process formulates and implements strategies.

AACSB: Analytic

41) "S" in the term SWOT analysis refers to ________.

A) strengths

B) standards

C) social

D) systems

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: SWOT analysis examines strengths, weaknesses, opportunities, and threats.

AACSB: Analytic

42) In a SWOT analysis, outdated facilities and obsolete technologies will be considered as ________.

A) threats

B) opportunities

C) weaknesses

D) strengths

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: SWOT analysis examines strengths, weaknesses, opportunities, and threats.

AACSB: Analytic

43) A special strength that gives an organization a competitive advantage can be called a(n) ________.

A) unfair advantage

B) differential strategy

C) core competency

D) differential advantage

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: SWOT analysis examines strengths, weaknesses, opportunities, and threats.

AACSB: Analytic

44) According to Michael Porter, industry attractiveness can be identified based on the five forces that include ________.

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

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Porter's five forces model identifies industry attractiveness.

AACSB: Analytic

45) When ABC Manufacturers focuses on offering products that are unique compared to its competitors' products, they are focusing on a(n) ________ strategy.

A) integrated

B) cost leadership

C) differentiation

D) diversification

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Porter's competitive strategies model identifies business or product strategies.

AACSB: Analytic

46) A ________ strategy seeks the lowest costs of operations within a special market segment.

A) multidomestic

B) focused differentiation

C) focused cost leadership

D) retrenchment

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Porter's competitive strategies model identifies business or product strategies.

AACSB: Analytic

47) Which of the following analyzes business opportunities according to market growth rate and market share?

A) SWOT analysis

B) BCG Matrix

C) GE Matrix

D) PEST analysis

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Portfolio planning examines strategies across multiple businesses or products.

AACSB: Analytic

48) Which of the following is NOT indicative of a question mark in the BCG matrix?

A) Do not generate much profit

B) Poor position

C) High market shares, low-growth market

D) Difficult for strategic decision making

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Portfolio planning examines strategies across multiple businesses or products.

AACSB: Analytic

49) If Toddler Toys Inc. has products that the Boston Consulting Group would identify as dogs, which of the following would be the best strategy for Toddler Toys?

A) Stability

B) Retrenchment

C) Growth

D) Diversification

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Portfolio planning examines strategies across multiple businesses or products.

AACSB: Reflective Thinking

50) A strategic leader must do all of the following EXCEPT ________.

A) encourage members to maintain the status-quo after success

B) implement and control organizational strategies

C) ensure everyone understands the strategy

D) create a sense of urgency

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Strategic leadership ensures strategy implementation and control.

AACSB: Analytic

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

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

AACSB: Analytic

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

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

AACSB: Analytic

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

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

AACSB: Analytic

54) The strategy of working with rivals on projects of mutual benefit is called crowdsourcing.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Cooperation strategies focus on alliances and partnerships.

AACSB: Analytic

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

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

AACSB: Analytic

56) The process of strategic management focuses only on developing strategies.

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: The strategic management process formulates and implements strategies.

AACSB: Analytic

57) A SWOT analysis includes a detailed examination of an organization's strengths, weaknesses, opportunities, and threats.

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: SWOT analysis examines strengths, weaknesses, opportunities, and threats.

AACSB: Analytic

58) A focused differentiation strategy is when you compete by selling products at lower prices than your competitors.

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Porter's competitive strategies model identifies business or product strategies.

AACSB: Analytic

59) Cash cows are the business units that have high market shares in high-growth markets in the BCG matrix.

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Portfolio planning examines strategies across multiple businesses or products.

AACSB: Analytic

60) Strategic leadership inspires people to implement organizational strategies.

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Strategic leadership ensures strategy implementation and control.

AACSB: Analytic

61) A(n) ________ is a comprehensive action plan for allocating resources to achieve long-term organization goals.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

AACSB: Analytic

62) ________ strategies guide the activities of specific areas to implement organizational-level strategies.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

AACSB: Analytic

63) When your company expands by entering related or new areas of business, it is called ________.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Growth strategies focus on expansion.

AACSB: Analytic

64) ________ entails cutting the size of your organization and reducing the workforce.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

AACSB: Analytic

65) When business owners sell off parts of their organization to refocus attention on core business areas, it is called a(n) ________.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

AACSB: Analytic

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

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Global strategies focus on international business initiatives.

AACSB: Analytic

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

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

AACSB: Analytic

68) The process of putting strategies into action is called strategic ________.

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: The strategic management process formulates and implements strategies.

AACSB: Analytic

69) Special strengths of an organization that give the organization a competitive advantage are called ________.

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: SWOT analysis examines strengths, weaknesses, opportunities, and threats.

AACSB: Analytic

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

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Porter's competitive strategies model identifies business or product strategies.

AACSB: Analytic

71) According to the BCG Matrix, ________ produce large profits and a strong cash flow, but with little upside potential.

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Portfolio planning examines strategies across multiple businesses or products.

AACSB: Analytic

72) ________ is the capability to inspire people to implement organizational strategies.

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Strategic leadership ensures strategy implementation and control.

AACSB: Analytic

73) ________ makes sure strategies are well implemented and that poor strategies are scrapped or tweaked.

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Strategic leadership ensures strategy implementation and control.

AACSB: Analytic

74) What is restructuring?

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

AACSB: Analytic

75) How does a differentiation strategy help in gaining competitive advantage?

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Porter's competitive strategies model identifies business or product strategies.

AACSB: Analytic

76) Distinguish between a competitive advantage and a sustainable competitive advantage.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

AACSB: Reflective Thinking

77) What is the difference between a globalization strategy and a transnational strategy?

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Global strategies focus on international business initiatives.

AACSB: Reflective Thinking

78) Define the three levels of strategy that can be identified in most large organizations? Mention their relationship to organizational structure, their purpose, and their strategic questions.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Organizations use corporate, business, and functional strategies.

AACSB: Analytic

79) Name the five forces identified by Porter's five forces model and describe their relation to an organization's internal and external environments.

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Porter's five forces model identifies industry attractiveness.

AACSB: Analytic

80) Discuss how the classifications of the Boston Consulting Group matrix relate to industry growth, market share, and business strategy.

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Portfolio planning examines strategies across multiple businesses or products.

AACSB: Analytic

81) The sharing economy is a ________ business strategy.

A) B2C

B) P2P

C) B2G

D) B2B

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

AACSB: Analytic

82) Suppose your business has a Facebook page. A division of the marketing department managers the page. They frequently post updates, respond to customers, and advertise flash sales on the website. Your business is engaged in a ________ strategy.

A) C2C

B) entrepreneurial

C) social media

D) B2B

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

AACSB: Analytic

83) A ________ strategy uses the Web to allow customers to provide opinions and suggestions on products and their designs.

A) social media

B) crowdsourcing

C) B2C

D) B2B

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

AACSB: Analytic

84) An organization's strategic intent is a clear and lofty sense of why it exists.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

AACSB: Analytic

85) A sustainable competitive advantage is a competitive advantage that lasts forever.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Strategy is a comprehensive plan for achieving competitive advantage.

AACSB: Analytic

86) A retrenchment strategy changes operations to correct weaknesses.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

AACSB: Analytic

87) Liquidation reduces the scale or mix of operations.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

AACSB: Analytic

88) Chapter 14 bankruptcy protects an insolvent firm from creditors during a period of reorganization to restore profitability.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

AACSB: Analytic

89) Divestiture involves selling off parts of the organization to refocus attention on core business areas.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Restructuring and divestiture strategies focus on consolidation.

AACSB: Analytic

90) A globalization strategy uses standardized products and advertising worldwide.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Global strategies focus on international business initiatives.

AACSB: Analytic

91) A multidomestic strategy integrates global operations without having a strong national identity.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Global strategies focus on international business initiatives.

AACSB: Analytic

92) An attractive market has few competitors, is easy to enter, has few substitute products, has high supplier power, and has low buyer power.

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Porter's five forces model identifies industry attractiveness.

AACSB: Analytic

93) An industry is attractive if it is hard for new competitors to enter the market.

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Porter's five forces model identifies industry attractiveness.

AACSB: Analytic

94) An industry is unattractive if supplier and buyer power are high.

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Porter's five forces model identifies industry attractiveness.

AACSB: Analytic

95) Strategic control makes sure strategies are well implemented and poor strategies are tweaked or scrapped.

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Strategic leadership ensures strategy implementation and control.

AACSB: Analytic

96) In a(n) ________, organizations join together in partnership to pursue an area of mutual interest.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Cooperation strategies focus on alliances and partnerships.

AACSB: Analytic

97) If your organization contracts to purchase specialized services from another organization, your organization is involved in a(n) ________ alliance.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Cooperation strategies focus on alliances and partnerships.

AACSB: Analytic

98) ________ alliances guarantee a smooth and timely flow of quality supplies among alliance partners.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Cooperation strategies focus on alliances and partnerships.

AACSB: Analytic

99) In a(n) ________ alliance, firms join together to accomplish product or services sales and distribution.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Cooperation strategies focus on alliances and partnerships.

AACSB: Analytic

100) ________ is the strategy of working with rivals on projects of mutual benefit.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: Cooperation strategies focus on alliances and partnerships.

AACSB: Analytic

101) ________ business strategies link persons needing services with those willing to provide them.

Learning Objective: 7.1: Explain the types of strategies used by organizations.

Section Reference: E-business strategies focus on using the Internet for business success.

AACSB: Analytic

102) A(n) ________ strategy offers products that are unique from those of the competition.

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Porter's competitive strategies model identifies business or product strategies.

AACSB: Analytic

103) According to the BCG Matrix, ________ have a high market share and a high market growth rate.

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Portfolio planning examines strategies across multiple businesses or products.

AACSB: Analytic

104) According to the BCG Matrix, ________ have a low market share and a low market growth rate.

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Portfolio planning examines strategies across multiple businesses or products.

AACSB: Analytic

105) According to the BCG Matrix, ________ have a poor position in a growing industry.

Learning Objective: 7.2: Describe how managers formulate and implement strategies.

Section Reference: Portfolio planning examines strategies across multiple businesses or products.

AACSB: Analytic

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