Deck 6: Entrepreneurship and New Ventures

Question 1

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

A) diversification
B) vertical integration
C) retrenchment
D) globalization

Answer 1

A

Question 2

The ability to outperform rivals is called a __________.

A) strategy
B) strategic intent
C) business plan
D) competitive advantage

Answer 2

D

Question 3

A ____________ is a clear and lofty sense of why a business exists.

A) mission
B) vision
C) strategic intent
D) logo

Answer 3

A

Question 4

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

Question 5

A strategy for expanding an organization's current operations is called a __________.

A) restructuring strategy
B) stability strategy
C) retrenchment strategy
D) growth strategy

Question 6

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?"

Question 7

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

Question 8

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 in a competitive market?"
B) "What is our role in supporting engineering?"
C) "How many divisions should we have?"
D) "In what industries and markets should the corporation compete in?"

Question 9

Orange International is expanding by acquiring suppliers and distributors. This is called growth through __________.

A) diversification
B) vertical integration
C) retrenchment
D) globalization

Question 10

When a company expands in its existing markets, it is called growth through __________.

A) retrenchment
B) diversification
C) concentration
D) globalization

Question 11

The riskiest growth strategy is through __________.

A) vertical integration
B) unrelated diversification
C) related diversification
D) backward integration

Question 12

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

Question 13

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

Question 14

Operating in successful ways that are difficult to imitate results in __________.

A) a strategy
B) a strategic intent
C) the vertical integration of a company
D) a sustainable competitive advantage

Question 15

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?"

Question 16

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

A) business
B) functional
C) corporate
D) employee

Question 17

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

Question 18

All of the following are growth strategies EXCEPT:

A) concentration.
B) diversification.
C) vertical integration.
D) restructuring.

Question 19

A(n) ______________ is a comprehensive action plan that identifies long-term direction for an organization.

A) competitive advantage
B) strategy
C) objective
D) idea

Question 20

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

A) co-opetition
B) growth
C) status quo
D) retrenchment

Question 21

Which of the following strategies uses information technology and the Internet to link organizations vertically in supply chains?

A) B2C business strategies
B) P2P business strategies
C) B2G business strategies
D) B2B business strategies

Question 22

__________ is the strategy of working with rivals on projects of mutual benefit.

A) Competition
B) Collusion
C) Co-opetition
D) Restructuring

Question 23

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

A) Advertising model
B) Brokerage model
C) Community model
D) Freemium model

Question 24

Strategic management includes strategy __________ and strategy __________.

A) negotiation; implementation
B) implementation; direction
C) formulation; implementation
D) formulation; review

Question 25

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

A) Strategic controlling
B) Strategic management
C) Globalization
D) Sustainability

Question 26

The electronic version of the basic retail strategy of selling directly to customers is known as a __________.

A) C2B business strategy
B) B2C business strategy
C) B2G business strategy
D) B2B business strategy

Question 27

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

A) Multidomestic strategy
B) Globalization strategy
C) Diversification strategy
D) Transnational strategy

Question 28

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

Question 29

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

Question 30

A __________ strategy customizes products and advertising to the culture of the local markets into which they are sold.

A) multidomestic strategy
B) globalization strategy
C) diversification strategy
D) transnational strategy

Question 31

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

A) Co-opetition
B) Liquidation
C) Strategy implementation
D) Strategy formulation

Question 32

When an organization reduces the size of its existing operations, it is called __________.

A) divestiture
B) liquidation
C) downsizing
D) diversification

Question 33

__________ 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

Question 34

Which of the following is NOT a retrenchment strategy?

A) Diversification
B) Liquidation
C) Restructuring
D) Divestiture

Question 35

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.

Question 36

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

Question 37

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

A) Advertising model
B) Infomediary model
C) Referral model
D) Freemium model

Question 38

A __________ views the world as one market and uses standardized products and advertising worldwide.

A) multidomestic strategy
B) globalization strategy
C) diversification strategy
D) transnational strategy

Question 39

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

A) communication strategy
B) co-opetition strategy
C) e-business strategy
D) multidomestic strategy

Question 40

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

Question 41

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

Question 42

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

Question 43

In a SWOT analysis, outdated facilities and obsolete technologies will be considered as __________.

A) threats
B) opportunities
C) weaknesses
D) strengths

Question 44

Strategic leadership inspires people to implement organizational strategies.

Question 45

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

Question 46

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.

Question 47

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

Question 48

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

Question 49

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

A) Do not generate much profit
B) Low market shares, high-growth market
C) High market shares, low-growth market
D) Difficult for strategic decision making

Question 50

A strategic leader must do all of the following EXCEPT:

A) allow members to grow complacent after success.
B) implement and control organizational strategies.
C) inspire people to engage in the process of continuous change.
D) create a sense of urgency.

Question 51

A special strength of an organization that gives it a competitive advantage can be called a(n) __________.

A) unfair advantage
B) differential strategy
C) core competency
D) differential advantage

Question 52

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

Question 53

The process of strategic management focuses only on developing strategies.

Question 54

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

Question 55

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) High growth
B) Retrenchment
C) Low growth
D) No growth

Question 56

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

Question 57

A SWOT analysis includes a detailed examination of an organization's strengths and weaknesses.

Question 58

A __________ seeks the lowest costs of operations within a special market segment.

A) multidomestic strategy
B) focused differentiation strategy
C) focused cost leadership strategy
D) retrenchment strategy

Question 59

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

Question 60

"S" in the term SWOT analysis refers to:

A) strengths.
B) standards.
C) social.
D) systems.

Question 61

__________ is the capability to inspire people to successfully engage in a process of continuous change, performance enhancement, and implementation of a firm's goals.

Question 62

Special strengths of an organization that give the organization a competitive advantage are called __________________.

Question 63

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

Question 64

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

Question 65

__________ makes sure strategies are well implemented and that poor strategies are scrapped or changed.

Question 66

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

Question 67

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

Question 68

Distinguish between a competitive advantage and a sustainable competitive advantage.

Question 69

How does a differentiation strategy help in gaining competitive advantage?

Question 70

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

Question 71

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.

Question 72

Strategies that guide the activities of specific areas in implementing the organizational-level strategies are called ________ strategies.

Question 73

The process of putting strategies into action is called strategic _____________.

Question 74

__________ entails cutting the size of your organization and reducing the workforce.

Question 75

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

Question 76

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

Question 77

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

Question 78

What is restructuring?

Question 79

A(n) __________ is a comprehensive action plan that identifies long-term direction for an organization and guides resource utilization to accomplish its goals.

Question 80

When your company expands into new areas of business it is called ________.