Deck 5: Strategies in Action
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Question
Unlock Deck
Sign up to unlock the cards in this deck!
Unlock Deck
Unlock Deck
1/131
Play
Full screen (f)
Deck 5: Strategies in Action
1
Strategic objectives include larger market share,quicker on-time delivery than rivals,quicker design-to-market times than rivals,lower costs than rivals,and wider geographic coverage than rivals.
True
2
Strategic objectives include those associated with growth in revenues,growth in earnings,higher dividends,larger profit margins and improved cash flow.
False
3
"If it ain't broke,don't fix it" refers to managing by crisis.
False
4
A strategy of seeking ownership or increased control of a firm's suppliers is backward integration.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
5
McDonalds currently owns more than 50 percent of its restaurants.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
6
Since a combination strategy bears no risk,many organizations pursue a combination of two or more strategies simultaneously.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
7
Market penetration,market development,and product development are intensive strategies.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
8
Divestiture is selling all of a company's assets,in parts,for their tangible worth.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
9
A growing trend is for franchisers to buy out their part of the business from their franchisees.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
10
The overall aim of the Balanced Scorecard is to balance financial objectives with strategic objectives.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
11
Objectives provide direction and allow for organizational synergy.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
12
Horizontal integration is seeking ownership or increased control over competitors.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
13
If a firm's present suppliers are expensive and unreliable in meeting the firm's needs for parts,components and/or raw materials,the firm should pursue a horizontal integration strategy.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
14
Long-term objectives represent the results expected from pursuing certain strategies.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
15
Horizontal integration is an appropriate strategy when the competitors of an organization are doing poorly.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
16
A chief executive officer is located in the divisional level of a large firm.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
17
Franchising is an effective means of implementing forward integration.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
18
Forward integration strategy is especially effective when the availability of quality distributors is so limited as to offer a competitive advantage to those firms that integrate forward.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
19
Gaining ownership or increased control over distributors or retailers is called forward integration strategy.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
20
When the correlation between dollar sales and dollar marketing expenditures has historically been low,market penetration is an appropriate strategy.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
21
Personal bankruptcy filings in the U.S.exceeded 1 million for the first time ever in 2008.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
22
Retrenchment and turnaround are the same strategy.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
23
Product development is an appropriate strategy when an organization has successful products that are in the maturity stage of the product life cycle.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
24
Unrelated diversification is an appropriate strategy when an organization's present channels of distribution can be used to market the new products to current customers.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
25
Chapter 9 bankruptcy applies to municipalities.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
26
Divestiture has become a popular strategy for firms to focus on their core business and become more diversified.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
27
An appropriate strategy when an organization has excess production capacity is market development.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
28
Most companies favor related diversification strategies in order to exploit common use of a well-known brand name.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
29
IBM's entrance into the water management business is an example of related diversification.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
30
Chapter 7 bankruptcy is a liquidation procedure used only when a firm sees no hope of being able to operate successfully or to obtain necessary creditor agreement.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
31
Chapter 13 bankruptcy is similar to Chapter 11,but available only to large corporations.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
32
Diversification strategies are becoming more popular as organizations are finding it easier to manage diverse business activities.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
33
Although bankruptcy can be an effective type of retrenchment strategy,it does not allow firms to avoid major debt obligations and to void union contracts.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
34
J.M.Smuckers Co.'s acquisition of Procter & Gamble's Folger's coffee business is an example of related diversification.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
35
Market development includes introducing present products into new geographic areas.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
36
Divestiture is the selling of all of a company's assets.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
37
There are four basic types of diversification: concentric,conglomerate,forward and backward.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
38
Unrelated diversification may be an especially effective strategy when an organization's basic industry is experiencing increasing annual sales and profits.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
39
Pepsi has 41 percent of the potato chip market in China.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
40
Product development is a strategy that seeks increased sales by improving or modifying present products or services.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
41
Divestiture would be an appropriate strategy when a need exists to introduce a new technology quickly.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
42
A low-cost focus strategy offers products or services to a small range of customers at the lowest price available on the market.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
43
Joint ventures tend to fail when managers who must collaborate daily in operating the venture are not involved in forming or shaping the venture.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
44
Differentiation guarantees competitive advantage.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
45
White knight is a term that refers to a firm that agrees to acquire another firm when the other firm is facing a hostile takeover by some company.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
46
When an acquisition or merger is not desired by both parties,it is called a takeover or hostile takeover.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
47
Liquidation is often appropriate when retrenchment and divestiture have failed.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
48
In a turbulent,high-velocity market,a lead-change strategy is best whenever the firm has the resources to pursue this approach.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
49
Cooperative arrangements and joint ventures between competitors are becoming increasingly popular.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
50
A cost leadership strategy can be especially effective when most buyers use the product in the same way.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
51
A low cost focus strategy can be especially attractive when the target market niche is small.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
52
Jiffy Lube International would be a good example of a firm seeking the best-value focus strategy.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
53
For all of 2008,global merger and acquisition volume increased 12 percent,putting it on par with the volume in 2005.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
54
The most effective differentiation bases are those that are hard or expensive for rivals to duplicate.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
55
A differentiation strategy can only be achieved with a large target market.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
56
For consumers who are price sensitive,cost leadership emphasizes producing standardized products at very low per-unit cost.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
57
A differentiation strategy can be especially attractive when the industry has many different niches and segments,thereby allowing a focuser to pick a competitively attractive niche suited to its own resources.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
58
A best-value strategy offers products or services to a wide range of customers at the best price-value available on the market.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
59
According to Porter,strategies allow organizations to gain competitive advantage from three different bases: cost leadership,differentiation and integration.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
60
An acquisition occurs when a large organization purchases a smaller one or vice versa.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
61
All sizes and types of organizations can utilize and benefit from strategic-management concepts and techniques.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
62
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.
A)Corporate/company
B) Functional
C) Divisional
D) Operational
E) All of the above are present in small firms.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
63
Public enterprises generally cannot diversify into unrelated businesses or merge with other firms.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
64
What principle is built on the idea that there is no general plan for which way to go and what to do?
A) Managing by crisis
B) Managing by extrapolation
C) Managing by objectives
D) Managing by hope
E) Managing by subjectives
A) Managing by crisis
B) Managing by extrapolation
C) Managing by objectives
D) Managing by hope
E) Managing by subjectives
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
65
Financial objectives involve all of the following except:
A) growth in revenues.
B) larger market share.
C) higher dividends.
D) greater return on investment.
E) a rising stock price.
A) growth in revenues.
B) larger market share.
C) higher dividends.
D) greater return on investment.
E) a rising stock price.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
66
What principle is based on the belief that the true measure of a really good strategist is the ability to solve problems?
A) Managing by crisis
B) Managing by objectives
C) Managing by extrapolation
D) Managing by exception
E) Managing by hope
A) Managing by crisis
B) Managing by objectives
C) Managing by extrapolation
D) Managing by exception
E) Managing by hope
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
67
Strategists in governmental organizations operate with far more strategic autonomy than their counterparts in private firms.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
68
Long-term objectives are needed at which level(s)in an organization?
A) Corporate
B) Divisional
C) Functional
D) All of the above
E) None of the above
A) Corporate
B) Divisional
C) Functional
D) All of the above
E) None of the above
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
69
All of the following are listed among the "softer" factors in the Balanced Scorecard except:
A) customer service.
B) employee morale.
C) product quality.
D) business ethics.
E) stockholder equity.
A) customer service.
B) employee morale.
C) product quality.
D) business ethics.
E) stockholder equity.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
70
While outsourcing manufacturing,tech support,and back-office work is quite common,it is still unheard of for companies to outsource any of their research and development activities.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
71
Burger King opening its first restaurant in Japan is an example of which type of strategy?
A) Forward integration
B) Backward integration
C) Horizontal integration
D) Market development
E) Product development
A) Forward integration
B) Backward integration
C) Horizontal integration
D) Market development
E) Product development
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
72
Companies are avoiding outsourcing more and more because it is more expensive than traditional methods and it does not allow a firm to concentrate on core competencies.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
73
First mover advantage refers to the benefits a firm may achieve by entering a new market or developing a new product or service prior to rival firms.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
74
Microsoft opening its own retail stores is an example of which type of strategy?
A) Forward integration
B) Backward integration
C) Horizontal integration
D) Related diversification
E) Unrelated diversification
A) Forward integration
B) Backward integration
C) Horizontal integration
D) Related diversification
E) Unrelated diversification
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
75
Research shows strategic management in small firms is more formal than in large firms,but large firms that engage in strategic management outperform those that do not.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
76
The nonprofit sector is America's largest employer.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
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
A) Related diversification
B) Unrelated diversification
C) Retrenchment
D) Divestiture
E) Liquidation
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
78
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
A) Horizontal integration
B) Diversification
C) Vertical integration
D) Stuck-in-the-middle
E) Hierarchical integration
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
79
A leveraged buyout occurs when a firm's management and other private investors use borrowed funds to buy out the firm's shareholders.
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck
80
Which of the following is most likely not included in the functional level of a small company?
A) Finance
B) Marketing
C) R&D
D) Department managers
E) Human resource managers
A) Finance
B) Marketing
C) R&D
D) Department managers
E) Human resource managers
Unlock Deck
Unlock for access to all 131 flashcards in this deck.
Unlock Deck
k this deck