Question 1

AOL eliminated fees to some subscribers to try to attract more users.AOL was using a(n)____ strategy.
A) analyzer
B) star
C) reactor
D) prospector
E) defender

Accepted Answer

The answer of AOL eliminated fees to some subscribers to...

Question 2

Which of these is concerned with the changes in the sales volume of a product during its existence?
A) Portfolio approach
B) Product life cycle approach
C) Environmental SWOT analysis
D) Miles and Snow model
E) Maslow's hierarchy

Accepted Answer

The Product life cycle approach is concerned with the changes in the sales volume of a product during its existence, as it looks at how a product progresses through its introduction, growth, maturity and decline stages. The other options are not specifically related to changes in sales volume over time.

Question 3

Turner Broadcasting was looking for a source of movies to show on its various cable television stations.When Turner purchased a movie studio with its vault of old movies,it was an example of a(n)____ diversification strategy.
A) related
B) integrated
C) unrelated
D) functional
E) institutional

Accepted Answer

Turner Broadcasting's purchase of a movie studio to obtain a source of movies for its cable stations is an example of related diversification, as it involves expanding into a business that is connected to its existing operations in the media and entertainment industry.

Question 4

Reckitt & Colman,Inc.manufactures Spray 'n Wash laundry stain remover,Resolve fabric refresher,and Woolite fabric wash.This is an example of ____ diversification.
A) related
B) integrated
C) unrelated
D) consumer
E) product

Accepted Answer

The diversification is related because all of the products are related to laundry and fabric care.

Question 5

For years,the Tabasco Company used a(n)____ strategy and manufactured only its famous hot sauce.
A) defender
B) single-product
C) aggregation
D) forward integration
E) backward integration

Accepted Answer

A single-product strategy is one where a company focuses on producing and selling only one product or product line. The Tabasco Company is known for producing and selling only their famous hot sauce, making it a clear example of a single-product strategy.

Question 6

Reality shows became prevalent on television after CBS introduced the first Survivor series.That type of television show is now in the maturity stage of its product life cycle.This means
A) product differentiation concerns are still important.
B) the number of companies producing reality television shows is declining rapidly.
C) more firms are producing more reality shows and are finding it easy to sell the concepts and the filmed shows to the networks.
D) production companies find themselves left with shows that the networks do not want unless they differentiate their product.
E) None of these choices

Accepted Answer

In the maturity stage of the product life cycle, product differentiation concerns are still important as companies try to maintain their market share in a saturated market.

Question 7

An organization implementing a prospector strategy needs to
A) create new opportunity.
B) remain flexible.
C) respond quickly.
D) decentralize decision making.
E) All of these choices

Accepted Answer

A prospector strategy involves exploring new opportunities and being flexible and responsive to changes in the market. Decentralization of decision-making is also important to enable quick decision-making and innovation. Therefore, all of these choices are essential for an organization implementing a prospector strategy.

Question 8

The product life cycle
A) shows how sales volume changes over time for products.
B) can help managers recognize that strategies need to evolve over time.
C) begins when a new product or technology is first introduced.
D) generally consists of four stages.
E) All of these choices

Accepted Answer

The product life cycle shows how sales volume changes over time for products and can help managers recognize that strategies need to evolve over time. It begins when a new product or technology is first introduced and generally consists of four stages. Therefore, all of the choices are correct.

Question 9

Wounded Warrior Project spends a lot of money telling the stories of wounded veterans.There are many nonprofits helping veterans,but WWP is the most well known with celebrity involvement and advertising.WWP is using a ____ strategy.
A) differentiation
B) cost leadership
C) reactor
D) defender
E) guerrilla

Accepted Answer

WWP is using a differentiation strategy by focusing on telling the stories of wounded veterans and creating a unique image through celebrity involvement and advertising. This sets them apart from other nonprofits helping veterans and makes them the most well known.

Question 10

Clorox Corporation owns Kingsford charcoal,Matchlight charcoal lighter,Prime Choice steak sauce,and a restaurant chain.This is an example of ____ diversification.
A) related
B) integrated
C) unrelated
D) consumer
E) product

Accepted Answer

The different industries/products owned by Clorox Corporation do not have any relation or connection to each other. This is an example of unrelated diversification.

Question 11

The ____ strategy is the most conservative approach in the Miles and Snow classifications of business strategies.
A) analyzer
B) star
C) prospector
D) reactor
E) defender

Accepted Answer

The defender strategy is the most conservative approach where the company focuses on protecting its existing market share by avoiding risks and maintaining a stable product or service line. It emphasizes cost control, efficiency, and reduction of overhead. Therefore, E is the correct choice.

Question 12

The founders of Major League Soccer thought their task was to build what they affectionately called a 'soccer nation' in America.When the U.S.women's team won the World Cup in 2015,the finals viewership was larger than that of the final World Series game,final NBA game and final Stanley Cup game.Women are not part of MLS;however,soccer in the U.S.A.is at the ______ stage of the product life cycle?
A) Introduction
B) Growth
C) Maturity
D) Decline
E) Extinct

Accepted Answer

The fact that soccer viewership is growing and that there is a desire to build a "soccer nation" indicates that soccer in the U.S.A. is in the growth stage of the product life cycle.

Question 13

____ is a useful framework for managers to use as they plot business strategy over time.
A) The BCG matrix
B) The GE screen
C) Porter's competitive strategies model
D) The Miles and Snow model of business strategy
E) The product life cycle

Accepted Answer

The product life cycle is a framework that helps managers understand the stages a product goes through from introduction to decline, allowing them to strategize accordingly over time.

Question 14

____ strategies in the Miles and Snow model represent a middle-of-the-road approach to business strategy.
A) Analyzer
B) Defender
C) Cash cow
D) Prospector
E) Star

Accepted Answer

The Miles and Snow model categorizes organizations into four strategic types: Defenders, Prospectors, Analyzers, and Reactors. The Analyzer strategy represents a middle-of-the-road approach, where companies balance the need for stability and flexibility. They follow established procedures and processes, but also adapt to changes in the market and keep an eye on emerging opportunities. Defenders focus on maintaining stable operations and minimizing risk, whereas Prospectors seek out new opportunities and take risks to grow their business. The other options, Cash cow and Star, are part of the Boston Consulting Group (BCG) Matrix, which classifies a company's portfolio of products into four categories based on market growth rate and relative market share.

Question 15

Kmart has struggled for years competing with Wal-Mart and Target.It tried celebrity labels,but that did not help.It cannot lower prices as low as Wal-Mart,because it does not have the distribution expertise.This is an example of a(n)____ strategy.
A) prospector
B) defender
C) reactor
D) rescuer
E) analyzer

Accepted Answer

Kmart's inability to effectively compete with Wal-Mart and Target, despite attempts such as introducing celebrity labels and facing challenges in lowering prices due to distribution inefficiencies, exemplifies a reactor strategy. This strategy is characterized by a lack of a consistent approach and reactive measures to competitive pressures, rather than proactive market positioning or innovation.

Question 16

Mrs.Fields was the first high quality,high priced cookie.Its success attracted competition.Mrs.Field's slowed growth to focus on making current operations more profitable.This is an example of a ____ strategy.
A) differentiation
B) cost leadership
C) reactor
D) prospector
E) defender

Accepted Answer

Mrs. Fields' decision to slow growth and focus on making current operations more profitable signifies a defender strategy. The defender strategy involves focusing on the current market and products while maintaining a strong defense against competition. This is evident from Mrs. Fields' decision to defend its position in the high-quality, high-priced cookie market by making its current operations more profitable rather than expanding into new markets or introducing new products.

Question 17

The aircraft engine division of General Electric,which competes with Pratt & Whitney,has its own mission and a strategy that often differs considerably from other parts of the corporation.What is a division such as this called?
A) An independent business
B) A strategic business unit
C) An entrepreneurship
D) A functional department
E) A competitive unit

Accepted Answer

A division such as this is called a strategic business unit, which is a distinct part of a larger corporation that operates as an independent business with its own mission, strategy, and competitors.

Question 18

Which of the following is NOT an example of a basis of relatedness for implementing related diversification?
A) Similar technology
B) Similar human resources
C) Common brand name and reputation
D) Common customers
E) Common distribution and marketing skills

Accepted Answer

Similar human resources is not an example of a basis of relatedness for implementing related diversification. The other options (similar technology, common brand name and reputation, common customers, and common distribution and marketing skills) all represent potential areas where a company could leverage its existing strengths and capabilities to pursue related diversification opportunities.

Question 19

____ strategy refers to a mid-range strategy that attempts to move into new market areas at a deliberate and carefully planned pace.
A) Analyzer
B) Prospector
C) Targeted
D) Defender
E) Differentiation

Accepted Answer

The analyzer strategy is characterized by a moderate level of risk-taking behavior and a focus on expanding into new market areas at a deliberate and carefully planned pace. This strategy combines elements of both the defender and the prospector strategies, with a focus on maintaining a strong core business while exploring new opportunities for growth. The targeted strategy focuses on narrowly defined markets, while differentiation strategy emphasizes differentiation from competitors.

Question 20

______ is(are)used to promote products or services and the overall public image of the organization.
A) ​Accounting
B) ​Finance
C) ​Marketing and sales
D) ​Culture
E) ​Manufacturing and production

Accepted Answer

Marketing and sales are specifically designed to promote products or services and to create a positive public image for the organization. Accounting and finance deal with financial records and operations, culture refers to values and beliefs, and manufacturing and production are related to creating and delivering the product.

Quiz 7: Managing Strategy and Strategic Planning

AOL eliminated fees to some subscribers to try to attract more users.AOL was using a(n) ____ strategy.

Which of these is concerned with the changes in the sales volume of a product during its existence?

Turner Broadcasting was looking for a source of movies to show on its various cable television stations.When Turner purchased a movie studio with its vault of old movies,it was an example of a(n) ____ diversification strategy.

Reckitt & Colman,Inc.manufactures Spray 'n Wash laundry stain remover,Resolve fabric refresher,and Woolite fabric wash.This is an example of ____ diversification.

For years,the Tabasco Company used a(n) ____ strategy and manufactured only its famous hot sauce.

Reality shows became prevalent on television after CBS introduced the first Survivor series.That type of television show is now in the maturity stage of its product life cycle.This means

An organization implementing a prospector strategy needs to

The product life cycle

Wounded Warrior Project spends a lot of money telling the stories of wounded veterans.There are many nonprofits helping veterans,but WWP is the most well known with celebrity involvement and advertising.WWP is using a ____ strategy.

Clorox Corporation owns Kingsford charcoal,Matchlight charcoal lighter,Prime Choice steak sauce,and a restaurant chain.This is an example of ____ diversification.

The ____ strategy is the most conservative approach in the Miles and Snow classifications of business strategies.

____ is a useful framework for managers to use as they plot business strategy over time.

____ strategies in the Miles and Snow model represent a middle-of-the-road approach to business strategy.

Kmart has struggled for years competing with Wal-Mart and Target.It tried celebrity labels,but that did not help.It cannot lower prices as low as Wal-Mart,because it does not have the distribution expertise.This is an example of a(n) ____ strategy.

Mrs.Fields was the first high quality,high priced cookie.Its success attracted competition.Mrs.Field's slowed growth to focus on making current operations more profitable.This is an example of a ____ strategy.

The aircraft engine division of General Electric,which competes with Pratt & Whitney,has its own mission and a strategy that often differs considerably from other parts of the corporation.What is a division such as this called?

Which of the following is NOT an example of a basis of relatedness for implementing related diversification?

____ strategy refers to a mid-range strategy that attempts to move into new market areas at a deliberate and carefully planned pace.

______ is(are) used to promote products or services and the overall public image of the organization.