Which strategy is appropriate when an organization competes in an industry characterized by rapid technological developments quizlet?

75) Which level of strategy is most likely not present in small firms? A) Corporate/company B) Functional C) Divisional D) Operational E) All of the above are present in small firms.

77) Cadbury PLC selling its Australian drinks business to Asahi Breweries Ltd. of Japan is an example of which type of strategy? A) Related diversification B) Unrelated diversification C) Retrenchment D) Divestiture E) Liquidation

80) Integration strategies are sometimes collectively referred to as which of the following categories of strategies? A) Horizontal integration B) Diversification C) Vertical integration D) Stuck-in-the-middle E) Hierarchical integration

83) Which of these strategies is effective when the number of suppliers is small and the number of competitors is large? A) Conglomerate diversification B) Forward integration C) Concentric diversification D) Backward integration E) Horizontal diversification

) Backward integration is effective in all of these except A) when an organization competes in an industry that is growing rapidly. B) when an organization has both capital and human resources to manage the new business of supplying its own raw materials. C) when an organization needs to acquire a needed resource quickly. D) when the advantage of stable prices are not important. E) when present suppliers have high profit margins.

85) What refers to a strategy of seeking ownership of, or increased control over a firm's competitors? A) Forward integration B) Conglomerate diversification C) Backward integration D) Horizontal integration E) Concentric diversification

86) In which situation would horizontal integration be an especially effective strategy? A) When an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for "tending substantially" to reduce competition. B) When an organization competes in a slowing industry. C) When decreased economies of scale provide major competitive advantages. D) When an organization has neither the capital nor human talent needed to successfully manage an expanded organization. E) When competitors are succeeding due to managerial expertise or having particular resources an organization possesses.

87) Which strategy seeks to increase market share of present products or services in present markets through greater marketing efforts? A) Market penetration B) Forward integration C) Market development D) Backward integration E) Product development

90) All of the following situations are conducive to market development except: A) when an organization competes in a high-growth industry. B) when an organization is very successful at what it does. C) when new untapped or unsaturated markets exist. D) when an organization has excess production capacity. E) when an organization's basic industry is becoming rapidly global in scope.

91) Which strategy is appropriate when an organization competes in an industry characterized by rapid technological developments? A) Retrenchment B) Product development C) Backward integration D) Liquidation E) Market penetration

93) Which strategy should an organization use if it competes in a no-growth or a slow-growth industry? A) Divestiture B) Related diversification C) Backward integration D) Unrelated diversification E) Retrenchment

95) Which of the following is not an example of when an organization should use an unrelated diversification strategy? A) When revenues derived from an organization's current products or services would increase significantly by adding the new unrelated, products. B) When an organization's present channels of distribution can be used to market the new products to current customers. C) When the new products have counter-cyclical sales patterns compared to an organization's present products. D) When an organization competes in a highly competitive and/or a no-growth industry. E) When existing markets for an organization's present products are not yet saturated.

97) Smithfield Foods laying off 1,800 employees, closing 6 of its 40 plants, and cutting production by 10 percent in 2009 in efforts to stop the liquidity drain on the firm is an example of A) divestiture. B) backward integration. C) liquidation. D) retrenchment. E) forward integration.

98) What kind of strategy is retrenchment? A) A turnaround or reorganization strategy B) An expansion strategy C) A conglomerate strategy D) An intensive strategy E) An offensive strategy

100) Which chapter of the bankruptcy code applies to municipalities? A) Chapter 7 B) Chapter 8 C) Chapter 9 D) Chapter 12 E) Chapter 13

101) The Family Farmer Bankruptcy Act of 1986 created which type of bankruptcy? A) Chapter 7 B) Chapter 8 C) Chapter 9 D) Chapter 12 E) Chapter 13

102) The form of bankruptcy in which all the organization's assets are sold in parts for their tangible worth is A) Chapter 7. B) Chapter 8. C) Chapter 9. D) Chapter 11. E) Chapter 13.

103) Retrenchment would be an effective strategy when an organization A) has shrunk so quickly that major internal reorganization is needed. B) is one of the stronger competitors in a given industry. C) is plagued by inefficiency, low profitability, poor employee morale and pressure from stockholders to improve performance. D) has decided to capitalize on opportunities, maximize threats, take advantage of strengths and overcome weaknesses. E) does not have a clearly distinctive competence and has failed to meet its objectives and goals consistently over time.

105) Which strategy should be implemented when a division is responsible for an organization's overall poor performance? A) Backward integration B) Divestiture C) Forward integration D) Cost leadership E) Related diversification

108) Under which strategy would you offer products or services to a wide range of customers at the lowest price available on the market? A) Cost Leadership – Low Cost B) Cost Leadership – Best Value C) Focus – Low Cost D) Focus – Best Value E) Differentiation Term

109) According to Porter, which strategy offers products or services to a niche group of customers at the lowest price available on the market? A) Cost Leadership – Low Cost B) Cost Leadership – Best Value C) Focus – Low Cost D) Focus – Best Value E) Differentiation

111) Under which condition would a differentiation strategy be especially effective? A) When the target market niche is large, profitable and growing. B) When technological change is fast paced and competition revolves around rapidly evolving product features. C) When industry leaders do not consider the niche to be crucial to their own success. D) When the industry has many different niches and segments, thereby allowing a company to pick a competitively attractive niche suited to its own resources. E) When few, if any, other rivals are attempting to specialize in the same target segment.

117) Mergers and acquisitions are created for all of the following reasons except to: A) gain new technology. B) reduce tax obligations. C) gain economies of scale. D) smooth out seasonal trends in sales. E) increase the number of employees.

70) The two internal dimensions represented on the axes of the SPACE Matrix are A) stability position and industry position. B) industry position and internationalization. C) internationalization and competitive position. D) competitive position and financial position. E) financial position and stability position. Answer: D

71) What are the two external dimensions of the SPACE Matrix? A) Stability position and industry position B) Stability position and competitive position C) Industry position and competitive position D) Competitive position and financial position E) Financial position and industry position

72) The two positive-rated dimensions on the SPACE Matrix are A) FP and CP. B) CP and SP. C) FP and IP. D) IP and SP. E) FP and SP.

77) How would a division with a low relative market share position in a high growth industry be described? A) Question Mark B) Cash Cow C) Star D) Stuck-in-the-middle E) Dog

79) A division with a high relative market share position in a low-growth industry can be described as a A) Star. B) Cash Cow. C) Question Mark. D) Dog. E) Failure.

82) A division that has a low relative market share position and competes in a slow-growth industry is referred to as a A) Dog. B) Question Mark. C) Star. D) Cash Cow. E) Cowboy.

84) Which of the following analytical tools consists of a nine-cell matrix? A) Matching Matrix B) Competitive Profile Matrix C) SPACE Matrix D) Grand Strategy Matrix E) Internal-External Matrix

85) What analytical tool has four quadrants based on two dimensions: competitive position and market growth? A) Competitive Profile Matrix B) Internal-External Matrix C) SPACE Matrix D) Grand Strategy Matrix E) QSPM

87) According to the Grand Strategy Matrix, which strategy is recommended for a firm with rapid market growth and a strong competitive position? A) Market penetration B) Unrelated diversification C) Joint venture D) Retrenchment E) Liquidation

8) For companies located in Quadrant III of the Grand Strategy Matrix, the first strategy recommended is A) extensive cost and asset reduction. B) asset expansion. C) employee expansion. D) immediate liquidation of assets. E) divestiture.

89) Although Quadrant ________ companies are growing, according to the Grand Strategy Matrix they are unable to compete effectively, and they need to determine why the firm's current approach is ineffective and how the company can best change to improve its competitiveness. A) I B) II C) III D) IV E) V

90) According to the Grand Strategy Matrix, organizations in which quadrant have a strong competitive position but are in a slow-growth industry? A) I B) II C) III D) IV E) V

91) Which matrix is included in the decision stage of the strategy formulation framework? A) Internal Factor Evaluation Matrix B) Quantitative Strategic Planning Matrix C) Boston Consulting Group Matrix D) Grand Strategy Matrix E) Strategic Position and Action Evaluation Matrix Answer: B

92) The top row of a QSPM consists of alternative strategies derived from all of the following except: A) Grand Strategy Matrix. B) BCG Matrix. C) SPACE Matrix. D) CPM Matrix E) IE Matrix.

94) Which of the following is the first step in developing a QSPM? A) Compute the Total Attractiveness Scores. B) Examine the Stage 2 matrices and identify alternative strategies the organization should consider implementing. C) Assign weights to each key external and internal factor. D) Determine the Attractiveness Scores. E) Make a list of the firm's key external opportunities/threats and internal strengths/weaknesses in the left column of the QSPM.

97) Which of these is a limitation of QSPM? A) Only a few strategies can be evaluated simultaneously. B) It is prohibitively expensive. C) It requires intuitive judgments and educated guesses are required. D) Sets of strategies must be examined in reverse order. E) It requires equal participation from the entire organization.

103) All of the following are principles of good organizational governance, as established by Business Week, except: A) no directors do business with the company or accept consulting or legal fees from the firm. B) the audit, compensation and nominating committees are made up solely of outside directors. C) each director owns a large equity stake in the company, excluding stock options. D) at least two directors are current or former company executives. E) the CEO is not also the Chairperson of the Board.

58) Strategy formulation A) is managing forces during the action. B) requires coordination among a few individuals. C) is primarily an operational process. D) requires special motivation and leadership skills. E) all of the above

68) _______ is/are not a major factor that commonly prohibits effective resource allocation. A) Underprotection of resources B) Organizational politics C) Vague strategy targets D) A reluctance to take risks E) A lack of sufficient knowledge

78) Medium-sized firms are more likely to use which type of structure? A) Divisional B) Matrix C) SBU D) Functional E) Centralized

79) What is not one of the basic ways a divisional structure can be organized? A) By geographic area B) By product or service C) By customer D) By process E) By cost

80) A divisional structure by product is most effective when A) special emphasis needs to be placed on specific products. B) an organization offers few products. C) an organization's products or services differ substantially. D) special emphasis needs to be placed on specific services. E) all of the above

82) A divisional structure by geographic area is most appropriate when A) organizations have similar branch facilities located in widely dispersed areas. B) an organization offers only a limited number of products or services. C) consumption patterns for its products and/or services are the same worldwide. D) the company's customers in different geographic locations have similar needs and characteristics . E) the firm serves one geographic area.

86) When developing an organizational chart, you should A) recommend dual titles for executives. B) use the title "president" for the top person. C) make sure that the chief financial officer is not at the same level as the chief operating officer. D) have division presidents report to a chief operating officer. E) have the controller or treasurer report directly to the president.

94) All of the following statements regarding the recent trend in Japan of switching from seniority-based pay to performance-based approaches are true except: A) the switch is an effort to cut costs. B) the switch is boosting employee morale. C) the switch is an effort to increase productivity. D) the switch opposes the traditional training of Japanese employees to cooperate rather than compete. E) the switch goes against decades of encouraging workers to work in groups instead of individually.

107) A concern in matching managers with strategy is that jobs have relatively ________ responsibilities, while people are ________ in their development. A) static; dynamic B) dynamic; static C) quick; slow D) exciting; dull E) dull; exciting

108) Approximately how many people in the United States are now part of two-career families? A) 2 million B) 8 million C) 21 million D) 60 million E) 85 million

60) Why is market segmentation an important variable in the strategy-implementation process? A) Company strategies do not require increased sales through new markets and products. B) It allows a firm to operate with no resources. C) It directly affects marketing mix variables. D) It allows a firm to minimize per-unit profits and per-segment sales. E) All of the above

66) Which is not a required step in product positioning? A) Select key criteria that effectively differentiate products or services in the industry B) Serve two segments with the same strategy C) Plot major competitors' products or services in the resultant matrix D) Identify areas in the positioning map where the company's products or services could be most competitive in the given target market E) Develop a marketing plan to position the company's products and services appropriately

68) Multidimensional scaling is used to determine A) the size of a new building. B) the size of a new department. C) the amount of high-tech equipment a firm needs. D) product positioning. E) market segmentation.

69) Which of the following is true about two different market segments? A) They can usually be served with the same marketing strategy. B) They usually require different marketing strategies. C) They are always in different geographic locations. D) They are usually interchangeable. E) All of the above

70) Which of these is not a rule of thumb when using product positioning as a strategy-implementation tool? A) "The best opportunity might be an unserved segment." B) "Look for the hole or vacant niche." C) "Try to serve more than one segment with the same strategy." D) "Don't position yourself in the middle of the map." E) All of these are valid rules of thumb.

73) Which of the following is not true regarding stock issuances? A) They are always better than debt for raising capital. B) Their effect on stock price is a concern. C) They can leave a company vulnerable to a hostile takeover. D) Dilution of ownership is a special concern. E) All of the above statements are true.

77) What is a drawback of using only equity to raise capital? A) The cost B) Fluctuations in the stock market C) Dilution of the control of the company D) That it will cause EPS to roller coaster E) That it doesn't raise as much capital as debt financing

78) A benefit of using projected balance sheets and income statements is that A) an organization can compute projected financial ratios under various scenarios. B) money can be put aside to pay future income taxes. C) insurance needs can be computed. D) it is useful in analyzing past performance. E) All of the above

79) Projected financial analysis is an important strategy-implementation technique because A) it is an exact measurement of financial costs in the future. B) it is an exact measurement of future company profits. C) it allows an organization to examine the expected results of various actions and approaches. D) insurance needs can be computed. E) None of the above

80) What is a central strategy-implementation technique that allows an organization to examine the expected results of various actions and approaches? A) EPS/EBIT B) Financial budgeting C) TOWS analysis D) Projected financial statement analysis E) External analysis

) In preparing projected statements, to project cost of goods sold and the expense items in the income statement, which of these methods is recommended? A) Determining the net worth method B) What a firm earns method C) Percentage-of-sales method D) Price-earnings ratio method E) Outstanding shares method

83) Which element in the projected income statement cannot be forecasted using the percentage-of-sales method? A) Cost of goods sold B) Selling expense C) Administrative expense D) Interest expense E) All of these items can be forecasted using the percentage-of-sales method.

85) In projected financial statements, what is used as a plug figure? A) Retained earnings B) Fixed assets C) The cash account D) Long-term liabilities E) Stockholders' equity

90) How should financial budgets be thought of? A) As a tool for limiting expenditures. B) As a method for obtaining the most productive and profitable use of an organization's resources. C) As a method for rationing the profits from the past year. D) As a method for determining who should receive the largest pay raise. E) As a tool for forecasting future profits.

91) What is a limitation of using financial budgets? A) They can be so detailed that they are cumbersome and expensive. B) They can become a substitute for objectives. C) They can hide inefficiencies if done only on precedent. D) They are sometimes used as instruments of tyranny. E) All of the above

92) Which of the following is not an accepted for determining a business's worth? A) What the firm owns. B) What the firm earns. C) What the firm's return on investment has been. D) What the firm will bring in the market. E) All of the above are accepted.

93) Which item is not included in net worth? A) Fixed assets B) Common stock C) Additional paid-in-capital D) Retained earnings E) All of these are included in net worth

94) Which method of determining a firm's net worth divides the market price of the firm's stock by the annual earnings per share, and multiplies this number by the firm's average net income for the past five years? A) Debt/equity method B) Current ratio method C) Price-earnings ratio method D) Long-term asset method E) Outstanding shares method

96) The Financial Accounting Standard Board (FASB) Rule 142 deals with A) illegal inflation of financial projections. B) hacking issues in MIS. C) goodwill. D) how firms conduct R&D. E) improving marketing policies.

97) In the context of a balance sheet, goodwill represents A) a premium paid over the book value of an acquisition. B) the value attached to a firm's reputation. C) the excess of assets over liabilities. D) the value associated with benefits from environmental programs. E) the excess of current assets over liabilities.

98) A conservative rule of thumb is to establish a business's worth as ________ the firm's current annual profit. A) twice B) three times C) five times D) ten times E) fifteen times

99) If an initial stock issuance is at or under $1 million, what is the average total cost paid to lawyers, accountants and underwriters? A) 5 percent B) 10 percent C) 25 percent D) 5 percent E) 40 percent

100) R&D employees and managers perform all of the following tasks except: A) transferring complex technology. B) altering products to particular tastes and specifications. C) researching resource availability. D) adapting processes to local markets. E) adjusting process to local raw materials.

102) The attitude of U.S. firms toward research and development is best described by which of the following? A) The veil of secrecy is being lifted, resulting in more collaboration. B) Firms are more cutthroat than ever and less cooperative with each other. C) Firms are less interested in working with universities. D) Firms are spending less in total research and development expenditures. E) Firms are less involved with research consortia than ever.

103) Information collection, retrieval, and storage can be used to create competitive advantages in ways such as A) cross-selling to customers. B) monitoring suppliers. C) keeping managers and employees informed. D) coordinating activities among divisions. E) All of the above

Which strategy is appropriate when an organization competes in an industry characterized by rapid technology development?

Which strategy should an organization use if it competes in a no growth or a slow growth industry?

Which strategy would be most appropriate when the distinctive competencies?

Which the best strategy should an organization use when its products are currently in the declining stage of the product's life cycle?