Question 1

An SBU with a large market share of a low-growth market is a ________.
A)star
B)dog
C)cash cow
D)question mark
E)low-cost leader

Accepted Answer

A large market share in a low-growth market indicates that the SBU is likely generating significant cash flow, making it a cash cow. Dogs have a small market share in a low-growth market, stars have a large market share in a high-growth market, and question marks have a small market share in a high-growth market. Low-cost leader is not relevant to the given scenario.

Question 2

Which level of the organization's environment exists inside the organization and normally has immediate and specific implications for managing the organization?
A)the general environment
B)the internal environment
C)the operating environment
D)the external environment
E)the political environment

Accepted Answer

The internal environment is the level of the organization's environment that exists inside the organization and has immediate and specific implications for managing the organization. This includes factors such as the organization's culture, structure, and resources.

Question 3

Which of the following is true about a star SBU?
A)Star SBUs may barely support themselves; in some cases,they actually drain off cash resources generated by other SBUs.
B)Star SBUs provide the organization with large amounts of cash because their market is not growing significantly.
C)An SBU that is a star has a small share of a high-growth market.
D)An SBU that is a star has a high share of a high-growth market and typically needs large amounts of cash to support rapid and significant growth.
E)Because the market of star SBUs is not growing significantly,the cash is generally used to meet the financial demands of the organization in other areas.

Accepted Answer

An SBU that is a star has a high share of a high-growth market and typically needs large amounts of cash to support rapid and significant growth.

Question 4

An SBU of FlexiTech Inc.manufactures CD drives.Although it has a large share in the market and the product makes significant profits for the company,market growth potential is limited.Under which quadrant of the BCG Growth-Share Matrix does the CD manufacturing unit fall?
A)dog
B)question-mark
C)star
D)cash cow
E)low-cost leader

Accepted Answer

The CD manufacturing unit falls under the cash cow quadrant of the BCG Growth-Share Matrix because it has a large share in the market and makes significant profits for the company. However, the market growth potential is limited. Cash cows are products or business units that generate high profits but have low growth potential.

Question 5

An SBU with a small market share of a high-growth market is a ________.
A)star
B)dog
C)cash cow
D)question mark
E)low-cost leader

Accepted Answer

An SBU with a small market share of a high-growth market is a question mark, also known as a "problem child." These SBUs require strategic decisions to determine whether to invest more to grow market share, maintain the market share, or phase out the business.

Question 6

GenEx Group manufactures a variety of products for different markets.One of its SBUs,GenEx Textiles,is one of its leading revenue generators.GenEx Textiles is the leading player in the market for textiles.However,the parent company has realized that growth prospects in the textile industry is limited.The company has already exploited the market to the fullest and sustained growth in the future is unlikely.In fact,a substantial amount of the revenue generated from this textile business is used to fund other SBUs of the parent company.GenEx Textiles is an example of a ________ for the GenEx Group.
A)star
B)dog
C)cash cow
D)question mark
E)cost-leader

Accepted Answer

GenEx Textiles is a leading revenue generator for the GenEx Group, indicating that it is a cash cow. However, the parent company has realized that growth prospects in the textile industry are limited, meaning that the product has reached its maturity stage.

Question 7

Which of the following statements accurately reflects the relationship between the mission and the objectives?
A)The mission statement reflects and flows naturally from the objectives.
B)The objectives reflect and flow naturally from the mission.
C)There is no direct relationship between the mission and the objectives.
D)The mission statement stands alone and has no influence on the objectives.
E)The mission and the objectives influence each other.

Accepted Answer

The mission statement is a broader statement of the purpose and values of the organization, while objectives are specific, measurable targets to achieve that mission. Therefore, the objectives should reflect and flow naturally from the mission.

Question 8

Which of the following strategy formulation tools outlines the primary forces that determine competitiveness within an industry and illustrates how those forces are related?
A)Porter's Model for Industry Analysis
B)the BCG Growth-Share Matrix
C)SWOT analysis
D)the GE Multifactor Portfolio Matrix
E)the Delphi technique

Accepted Answer

The answer of Which of the following strategy formulation tools...

Question 9

Which of the following is true about the GE Multifactor Portfolio Matrix?
A)Businesses falling in the cells that form a diagonal from lower left to upper right in the matrix are strong businesses that should be invested in regularly.
B)Businesses in the cells below and to the right of the diagonal are medium-strength businesses that should be invested in only selectively.
C)The GE Multifactor Portfolio Matrix does not consider factors such as various types of risk associated with product development.
D)In the matrix,businesses above and to the left of the diagonal are the weakest and serious candidates for divesture.
E)This tool helps managers develop organizational strategy that is based primarily on market attractiveness and business strengths.

Accepted Answer

The GE Multifactor Portfolio Matrix helps managers develop organizational strategy based primarily on market attractiveness and business strengths. Choices A, B, and D are incorrect because they do not accurately reflect the diagonal in the matrix or the strength of businesses in the different cells. Choice C is incorrect because the GE Multifactor Portfolio Matrix does consider factors such as risks associated with product development.

Question 10

Which of the following strategy formulation tools was specifically developed to expand on the BCG Growth-Share Matrix?
A)Porter's Model for Industry Analysis
B)the critical questions analysis
C)SWOT analysis
D)the GE Multifactor Portfolio Matrix
E)environmental analysis

Accepted Answer

The GE Multifactor Portfolio Matrix was specifically developed to expand on the BCG Growth-Share Matrix. It takes into account additional dimensions beyond market growth rate and relative market share, such as industry attractiveness and competitive strength. Porter's Model for Industry Analysis, the critical questions analysis, SWOT analysis, and environmental analysis are all separate strategy formulation tools that are not necessarily related to the BCG Growth-Share Matrix.

Question 11

An SBU with a relatively small market share of a low-growth market is a ________.
A)star
B)dog
C)cash cow
D)question mark
E)low-cost leader

Accepted Answer

According to the BCG matrix, an SBU with a relatively small market share of a low-growth market is a dog. Dogs have low market share and operate in a low-growth market, making it difficult for them to generate significant profits. Therefore, the best choice is B, dog.

Question 12

Kreme Industries has an SBU Kreme Makeups,Inc.,that offers a wide variety of makeup products and accessories for women.Although market growth rate is high,the SBU's current market share is low and it needs substantial investment.The parent company is trying to decide if Kreme Makeups has long-term sustainability before investing any more cash in it.In the context of the BCG matrix,this SBU of Kreme Industries would be classified as a ________.
A)question mark
B)cash cow
C)dog
D)star
E)low-cost leader

Accepted Answer

Kreme Makeups has high market growth rate but low market share, indicating that it is a question mark in the BCG matrix. This means that the SBU has potential for growth but requires significant investment to increase its market share and potentially become a star or cash cow in the future. The parent company is currently unsure about the long-term sustainability of this SBU, which is consistent with the characteristics of a question mark.

Question 13

The answer to which of the following critical questions indicates whether the organization is progressing satisfactorily or not?
A)What are the purposes and objectives of the organization?
B)Where is the organization presently going?
C)In what kind of environment does the organization now exist?
D)What can be done to better achieve organizational goals in the future?
E)What does our SWOT analysis show?

Accepted Answer

The question "Where is the organization presently going?" helps to determine whether the organization is progressing satisfactorily or not. If the organization is moving towards its goals and objectives, then it is progressing satisfactorily. If not, then there may be issues that need to be addressed.

Question 14

With the GE Multifactor Portfolio Matrix,the businesses falling in the cells that form a diagonal from lower left to upper right are ________.
A)the strongest and the ones the company should invest in and help grow
B)the strongest and the ones the company should sell
C)medium-strength and should be invested in only selectively
D)the lowest in strength and serious candidates for divestiture
E)the lowest in strength and serious candidates for retrenchment

Accepted Answer

The GE Multifactor Portfolio Matrix evaluates business units on two dimensions: industry attractiveness and competitive strength. Businesses that fall in the diagonal from lower left to upper right are considered of medium strength. They are in a position where selective investment is advised, focusing on those with potential for growth or improvement in their competitive position.

Question 15

The Razzmatazz Group of companies plans to launch a new flavor of crackers that is distinct and unusual.Which of the following strategies is the company following to become more competitive?
A)stability
B)cost leadership
C)divestiture
D)focus
E)differentiation

Accepted Answer

The Razzmatazz Group of companies is following differentiation strategy by launching a new flavor of crackers that is distinct and unusual. This will make them stand out from competitors and attract customers who are looking for something new and unique.

Question 16

________ is the process of determining appropriate courses of action for achieving organizational objectives and thereby accomplishing organizational purpose.
A)Establishment of organizational direction
B)Strategy implementation
C)Strategy control
D)Strategy formulation
E)Environmental analysis

Accepted Answer

Strategy formulation is the process of determining appropriate courses of action for achieving organizational objectives and thereby accomplishing organizational purpose. It involves analyzing the organization's current situation, setting goals and objectives, and identifying strategies to achieve those objectives.

Question 17

The document that is written by management and describes and explains what the purpose for which the organization exists is the ________.
A)mission statement
B)strategic plan
C)operating plan
D)annual budget
E)vision statement

Accepted Answer

A mission statement is a concise statement that outlines the purpose and goals of an organization. It is typically written by management and serves as a guiding principle for decision-making and strategy development.

Question 18

Which strategy is an organization following when it focuses on making an organization more competitive by developing a product or products that customers perceive as being different from products offered by competitors?
A)cost leadership
B)differentiation
C)focus
D)stability
E)divestiture

Accepted Answer

The organization is following a differentiation strategy. This involves developing products that are perceived as unique or different from those offered by competitors, which in turn can give the organization a competitive advantage.

Question 19

Which of the following is true about a cash cow?
A)Cash cows can barely support themselves; in some cases,they actually drain off cash resources generated by other SBUs.
B)An SBU that is a cash cow has a small share of a high-growth market.
C)An SBU that is a cash cow has a large share of a market that is growing only slightly.
D)An SBU that is a cash cow has a high share of a high-growth market and typically needs large amounts of cash to support rapid and significant growth.
E)Cash cows generate large amounts of cash for the organization and are usually segments in which management can make additional investments and earn attractive returns.

Accepted Answer

A cash cow is an SBU with a large market share in a market that is not growing significantly, hence it generates consistent cash flow for the organization. It does not require significant investments in promotional activities or R&D to maintain its market share. It is a stable and profitable segment for the organization.

Question 20

________ is the purpose for which - and the reason why - an organization exists.
A)Organizational objective
B)Organizational strategy
C)Organizational mission
D)Organizational policy
E)Organizational rule

Accepted Answer

Organizational mission is the purpose for which - and the reason why- an organization exists. It defines the organization's primary objectives and guides decision-making and strategic planning.

Quiz 9: Strategic Planning: Strategies, Tactics, and Competitive Dynamics

An SBU with a large market share of a low-growth market is a ________.

Which level of the organization's environment exists inside the organization and normally has immediate and specific implications for managing the organization?

Which of the following is true about a star SBU?

An SBU of FlexiTech Inc.manufactures CD drives.Although it has a large share in the market and the product makes significant profits for the company,market growth potential is limited.Under which quadrant of the BCG Growth-Share Matrix does the CD manufacturing unit fall?

An SBU with a small market share of a high-growth market is a ________.

Which of the following statements accurately reflects the relationship between the mission and the objectives?

Which of the following strategy formulation tools outlines the primary forces that determine competitiveness within an industry and illustrates how those forces are related?

Which of the following is true about the GE Multifactor Portfolio Matrix?

Which of the following strategy formulation tools was specifically developed to expand on the BCG Growth-Share Matrix?

An SBU with a relatively small market share of a low-growth market is a ________.

The answer to which of the following critical questions indicates whether the organization is progressing satisfactorily or not?

With the GE Multifactor Portfolio Matrix,the businesses falling in the cells that form a diagonal from lower left to upper right are ________.

The Razzmatazz Group of companies plans to launch a new flavor of crackers that is distinct and unusual.Which of the following strategies is the company following to become more competitive?

________ is the process of determining appropriate courses of action for achieving organizational objectives and thereby accomplishing organizational purpose.

The document that is written by management and describes and explains what the purpose for which the organization exists is the ________.

Which strategy is an organization following when it focuses on making an organization more competitive by developing a product or products that customers perceive as being different from products offered by competitors?

Which of the following is true about a cash cow?

________ is the purpose for which - and the reason why - an organization exists.