Question 1

Companies often choose a _____ strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth.

Accepted Answer

A stability strategy is most appropriate when a company's external environment is relatively stable and predictable. It involves maintaining the status quo and focusing on improving efficiency and profitability. This strategy may also be adopted after a period of rapid growth, when the company needs to consolidate its gains and stabilize its operations.

Question 2

Companies can achieve growth mainly by _____.

Accepted Answer

Companies can achieve growth by growing internally through direct expansion or creating new businesses rather than shrinking their scope, removing cash cows or maintaining only dogs in their portfolio. Increasing the number of question marks and dogs in their portfolio may not necessarily lead to growth.

Question 3

_____ are companies that have a small share of a slow-growing market.

Accepted Answer

Dogs are companies that have a small share of a slow-growing market. They have low market share and low growth potential, so they are not profitable for the company and often require resources to maintain their operations.

Question 4

When Klonorox Corporation, a manufacturer of bleach and bleach-based cleaning products, acquired Masterssauce brand steak sauce; it was an example of _____.

Accepted Answer

The acquisition of Masterssauce brand steak sauce by Klonorox Corporation, a bleach and bleach-based cleaning products manufacturer, is an example of unrelated diversification. The two product lines are not related in any way, indicating that Klonorox is diversifying into a new and unrelated market.

Question 5

Companies that are following a _____ strategy would be most likely to try to improve the way in which they sell the same goods or services to the same customers.

Accepted Answer

Companies that are following a stability strategy aim to maintain the status quo and focus on improving efficiency and effectiveness of their current operations. Therefore, they would be most likely to improve the way in which they sell the same goods or services to the same customers, rather than introducing new products or expanding into new markets.

Question 6

A _____ is a company with a large share of a slow growing market.

Accepted Answer

A cash cow is a business unit that has a large market share in a mature, slow-growing industry. It generates significant cash flow that is often used to support other business units or invest in new opportunities.

Question 7

The purpose of a _____ strategy is to turn around very poor company performance by shrinking the size or scope of the business.

Accepted Answer

The purpose of a retrenchment strategy is to turn around very poor company performance by shrinking the size or scope of the business.

Question 8

In an attempt to stop declining profitability, Chimos Inc., a chemical company, removed petrochemical products from its production and concentrated on specialty chemicals, a less capital-intensive, less cyclical business. What type of a grand strategy was Chimos Inc. using?

Accepted Answer

Chimos Inc. is using a retrenchment strategy, which involves cutting back or completely removing certain products, services, or markets from their operations to improve profitability. In this case, they removed petrochemical products and focused on specialty chemicals, which is less capital-intensive and less cyclical. This indicates a strategic shift towards a narrower focus and a more streamlined business model in order to regain profitability.

Question 9

The research on diversification in portfolio management indicates that the best approach is probably _____.

Accepted Answer

Research suggests that related diversification, where a company expands into related markets or industries, can provide the most benefits for portfolio management. This approach allows for sharing of resources, knowledge, and capabilities across related businesses, leading to potential cost savings and synergies. Unrelated diversification or divestitures may not provide the same level of benefits and can be more difficult to manage. Repositioning may not necessarily relate to diversification in portfolio management.

Question 10

_____ consists of the strategic actions that a company takes to return to a growth strategy.

Accepted Answer

The answer of _____ consists of the strategic actions that...

Question 11

AlphaWheels Inc. sell a range high-end bikes. Two-thirds of its profits come from the sale of these bikes. The bikes have a large share of a fast- growing market. According to the BCG matrix, the range of high-end bikes would be classified as a(n) _____.

Accepted Answer

The range of high-end bikes would be classified as a star in the BCG matrix because it has a large share of a fast-growing market and contributes significantly to the profits of AlphaWheels Inc.

Question 12

The purpose of a _____ strategy is to increase profits, revenues, market sh are, or the number of places (stores, offices, locations) in which the company does business.

Accepted Answer

A growth strategy is focused on increasing profits, revenues, market share, or the number of locations in which the company operates. This can be achieved through various means such as expanding into new markets, launching new products or services, acquiring other companies, or increasing marketing efforts. The other options, such as divestment, retrenchment, niche, and recovery strategies, are focused on different goals such as selling off non-core assets, cutting costs, focusing on a small segment of the market, or turning around a struggling business.

Question 13

In the context of BCG matrix, ​_____ are companies that have a large share of a fast-growing market.

Accepted Answer

Stars are companies that have a large share of a fast-growing market, making them a good investment for future growth potential. They require high investment to maintain their position, but have the potential to become cash cows in the future.

Question 14

Significant cost reductions, layoffs of employees, closing of poorly performing stores, offices, or manufacturing plants, or closing or selling entire lines of products or services would be characteristic of a _____ strategy.

Accepted Answer

The answer of Significant cost reductions, layoffs of employees, closing...

Question 15

The _____ is a portfolio strategy that managers use to categorize their corporation's businesses by growth rate and relative market share. This strategy helps them to decide how to invest corporate funds.

Accepted Answer

The BCG matrix (Boston Consulting Group matrix) is a portfolio strategy that categorizes a corporation's businesses based on their growth rate and relative market share. This matrix helps managers decide how to allocate corporate funds by identifying which businesses require more investment, which ones can sustain themselves, and which ones may need to be divested.

Question 16

Wisher Technologies became a large software development company through a merger with Ringus Tech., a growing software solutions firm. Since both the companies had similar core capabilities, this would be classified as an example of _____.

Accepted Answer

The merger of two companies with similar core capabilities is an example of related diversification, which means expanding a company's business activities into areas that are similar to its current operations.

Question 17

A(n) _____ strategy is a broad corporate-level strategic plan used to achieve strategic goals and guide the strategic alternatives that managers of individual businesses or subunits may use.

Accepted Answer

A grand strategy is a broad framework used by a company to achieve its strategic objectives. It provides direction to the different businesses or subunits within the company and guides their decision-making processes. Other options such as regulation, utilitarian, or distributive strategies are more specific and may not have the same level of overarching direction as a grand strategy. The industry strategy may be a valid option, but it is still more specific to a particular industry rather than the overall corporate-level strategy.

Question 18

​_____ are companies that have a small share of a fast-growing market.

Accepted Answer

The answer of ​_____ are companies that have a small...

Question 19

In an attempt to stop declining profitability, Quint Cement Co., a construction material manufacturer, stopped manufacturing other kinds of cement products and concentrated on special anti corrosion cement. If Quint Cement Co. is successful in making the needed changes, it will more than likely implement a _____ strategy.

Accepted Answer

Quint Cement Co. is attempting to improve profitability by focusing on a specific product line, which is a recovery strategy.

Question 20

Samantha's, a chain of coffeehouses, also markets a line of compilation CDs and other non-coffee items. The making and marketing of the CDs and other non-coffee products would be an example of _____.

Accepted Answer

Diversification refers to a business strategy of entering into a new market or industry in which the business doesn't currently operate. In this case, Samantha's coffeehouses diversifying into the production and selling of non-coffee items such as compilation CDs is an example of unrelated diversification, as it is not directly related to the coffee industry.

Quiz 6: Organizational Strategy

Companies often choose a _____ strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth.

Companies can achieve growth mainly by _____.

_____ are companies that have a small share of a slow-growing market.

When Klonorox Corporation, a manufacturer of bleach and bleach-based cleaning products, acquired Masterssauce brand steak sauce; it was an example of _____.

Companies that are following a _____ strategy would be most likely to try to improve the way in which they sell the same goods or services to the same customers.

A _____ is a company with a large share of a slow growing market.

The purpose of a _____ strategy is to turn around very poor company performance by shrinking the size or scope of the business.

In an attempt to stop declining profitability, Chimos Inc., a chemical company, removed petrochemical products from its production and concentrated on specialty chemicals, a less capital-intensive, less cyclical business. What type of a grand strategy was Chimos Inc. using?

The research on diversification in portfolio management indicates that the best approach is probably _____.

_____ consists of the strategic actions that a company takes to return to a growth strategy.

AlphaWheels Inc. sell a range high-end bikes. Two-thirds of its profits come from the sale of these bikes. The bikes have a large share of a fast- growing market. According to the BCG matrix, the range of high-end bikes would be classified as a(n) _____.

The purpose of a _____ strategy is to increase profits, revenues, market sh are, or the number of places (stores, offices, locations) in which the company does business.

In the context of BCG matrix, _____ are companies that have a large share of a fast-growing market.

Significant cost reductions, layoffs of employees, closing of poorly performing stores, offices, or manufacturing plants, or closing or selling entire lines of products or services would be characteristic of a _____ strategy.

The _____ is a portfolio strategy that managers use to categorize their corporation's businesses by growth rate and relative market share. This strategy helps them to decide how to invest corporate funds.

Wisher Technologies became a large software development company through a merger with Ringus Tech., a growing software solutions firm. Since both the companies had similar core capabilities, this would be classified as an example of _____.

A(n) _____ strategy is a broad corporate-level strategic plan used to achieve strategic goals and guide the strategic alternatives that managers of individual businesses or subunits may use.

_____ are companies that have a small share of a fast-growing market.

Samantha's, a chain of coffeehouses, also markets a line of compilation CDs and other non-coffee items. The making and marketing of the CDs and other non-coffee products would be an example of _____.

Quiz 6: Organizational Strategy

Companies often choose a _____ strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth.

Companies can achieve growth mainly by _____.

_____ are companies that have a small share of a slow-growing market.

When Klonorox Corporation, a manufacturer of bleach and bleach-based cleaning products, acquired Masterssauce brand steak sauce; it was an example of _____.

Companies that are following a _____ strategy would be most likely to try to improve the way in which they sell the same goods or services to the same customers.

A _____ is a company with a large share of a slow growing market.

The purpose of a _____ strategy is to turn around very poor company performance by shrinking the size or scope of the business.

In an attempt to stop declining profitability, Chimos Inc., a chemical company, removed petrochemical products from its production and concentrated on specialty chemicals, a less capital-intensive, less cyclical business. What type of a grand strategy was Chimos Inc. using?

The research on diversification in portfolio management indicates that the best approach is probably _____.

_____ consists of the strategic actions that a company takes to return to a growth strategy.

AlphaWheels Inc. sell a range high-end bikes. Two-thirds of its profits come from the sale of these bikes. The bikes have a large share of a fast- growing market. According to the BCG matrix, the range of high-end bikes would be classified as a(n) _____.

The purpose of a _____ strategy is to increase profits, revenues, market sh are, or the number of places (stores, offices, locations) in which the company does business.

In the context of BCG matrix, ​_____ are companies that have a large share of a fast-growing market.

Significant cost reductions, layoffs of employees, closing of poorly performing stores, offices, or manufacturing plants, or closing or selling entire lines of products or services would be characteristic of a _____ strategy.

The _____ is a portfolio strategy that managers use to categorize their corporation's businesses by growth rate and relative market share. This strategy helps them to decide how to invest corporate funds.

Wisher Technologies became a large software development company through a merger with Ringus Tech., a growing software solutions firm. Since both the companies had similar core capabilities, this would be classified as an example of _____.

A(n) _____ strategy is a broad corporate-level strategic plan used to achieve strategic goals and guide the strategic alternatives that managers of individual businesses or subunits may use.

​_____ are companies that have a small share of a fast-growing market.

Samantha's, a chain of coffeehouses, also markets a line of compilation CDs and other non-coffee items. The making and marketing of the CDs and other non-coffee products would be an example of _____.

In the context of BCG matrix, _____ are companies that have a large share of a fast-growing market.

_____ are companies that have a small share of a fast-growing market.