Question 1

The question How do we compete? concerns _____ strategy.

Accepted Answer

The answer of The question How do we compete? concerns...

Question 2

Scenario - SS.com
Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an on-line stock investment and trading subsidiary, SS.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.
-SS.com subsidiary for Swift Stocks can be classified as a _____.
A) cash cow
B) dog
C) star
D) question mark
E) stuck in the middle business

Accepted Answer

The SS.com subsidiary for Swift Stocks can be classified as a question mark, also known as a "problem child" in the BCG growth-share matrix. This is because the subsidiary has less than one percent market share and is facing fierce competition in the industry. However, it also has a high business growth rate, indicating that it has potential for future success.

Question 3

CASE
Scenario - Theresa Teutul
Theresa Teutul 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 Theresa should take for this SBU is:
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.

Accepted Answer

The answer of CASE
Scenario - Theresa Teutul
Theresa Teutul was an...

Question 4

The question What business are we in? concerns the _____ strategy.

Accepted Answer

The answer of The question What business are we in?...

Question 5

Scenario - SS.com
Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an on-line stock investment and trading subsidiary, SS.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.
-Swift Stock's traditional brokerage business could be classified as a _____.
A) cash cow
B) dog
C) star
D) question mark
E) stuck in the middle business

Accepted Answer

The answer of Scenario - SS.com
Faced with rapidly growing business,...

Question 6

Scenario - SS.com
Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an on-line stock investment and trading subsidiary, SS.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.
-If Swift Stock's traditional brokerage business were to face a declining business growth, it may need to be reclassified as a _____.
A) cash cow
B) dog
C) star
D) question mark
E) dead business

Accepted Answer

According to the product portfolio matrix, a cash cow is a product or business unit that has a high market share in a low-growth market. If Swift Stock's traditional brokerage business were to face a declining business growth, it would still have a high market share in the brokerage industry but would be operating in a low-growth market, making it a cash cow.

Question 7

In the BCG matrix, the star has a(n) _____ market share in a rapidly growing industry.

Accepted Answer

The answer of In the BCG matrix, the star has...

Question 8

The question How do we support the business-level competitive strategy? concerns _____ strategy.

Accepted Answer

The answer of The question How do we support the...

Question 9

The _____ function recruits selects, trains, transfers, promotes, and lays off employees to achieve strategic goals.
A) production
B) leadership
C) information and control systems
D) structural design
E) human resource

Accepted Answer

The function described in the question is the role of human resource management.

Question 10

When organizational parts interact to produce a joint effect that is greater than the sum of the parts acting alone, _____ occurs.

Accepted Answer

The answer of When organizational parts interact to produce a...

Question 11

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 12

_____ is the set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals.

Accepted Answer

The answer of _____ is the set of decisions and...

Question 13

_____ is a type of corporate-level strategy that pertains to the organization's mix of strategic business units.

Accepted Answer

The answer of _____ is a type of corporate-level strategy...

Question 14

Scenario - SS.com
Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an on-line stock investment and trading subsidiary, SS.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.
-Swift Stock is following which strategy, according to Porter, through the .com subsidiary?
A) Stability
B) Cost leadership
C) Focus
D) Differentiation
E) Retrenchment

Accepted Answer

Swift Stocks, Inc. is following the cost leadership strategy, as it aims to offer the lowest rates in the industry through its online subsidiary SS.com. This is evident from the statement "where investors can trade stocks at the lowest rates in the industry."

Question 15

People need to understand how their individual actions can contribute to achieving an organizational strategy. This can be accomplished by delegating authority, creating teams, and defining roles. These actions are part of which tool for putting strategy into action?
A) Visible leadership
B) Candid communication
C) Human resources
D) Clear roles and accountability
E) Bargaining power of employees

Accepted Answer

Clear roles and accountability are essential tools for putting strategy into action, as they help individuals understand how their individual actions contribute to achieving organizational goals. Delegating authority, creating teams, and defining roles all fall under this tool. While visible leadership, candid communication, and human resources can all be important in implementing strategy, they do not directly address the issue of how individual actions contribute to achieving organizational goals. Bargaining power of employees is not relevant to this question.

Question 16

_____ includes the planning and decision making that lead to the establishment of the firm's goals and the development of a specific strategic plan.

Accepted Answer

The answer of _____ includes the planning and decision making...

Question 17

The use of managerial and organizational tools to direct resources toward accomplishing strategic results is known as _____.

Accepted Answer

The answer of The use of managerial and organizational tools...

Question 18

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 19

In the BCG matrix, the dog has _____ market share and _____ business growth rate.

Accepted Answer

The answer of In the BCG matrix, the dog has...

Question 20

CASE
Scenario - Theresa Teutul
Theresa Teutul 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.
-Using the logic of the BCG grid, Theresa should recognize that her strategic business unit was in which quadrant?
A) Star
B) Cash Cow
C) Question Mark
D) Dog
E) None of these

Accepted Answer

The BCG grid categorizes strategic business units into four quadrants based on market growth rate and market share. Cash cows are high market share products in a low growth market, which aligns with the description of the color television market facing challenges after two decades of highly successful development and marketing. The other options do not fit the scenario provided.

Quiz 8: Strategy Formulation and Execution