Question 1

The preferred strategy for Stars is growth because they

Accepted Answer

A)   produce large profits and a strong cash flow, but have little upside potential.
B)   may not generate much profit at the moment, but have upside potential.
C)   produce large profits and a strong cash flow for only a short span of time and must be nurtured.
D)   are not only high performers in the present, but they offer similar potential for the future.
E)   produce little if any profit, and must be supported so that they perform better.

Question 2

Organizations pursuing a focused differentiation strategy seek a competitive advantage by concentrating on one special market segment and trying to be the lowest cost provider in that segment.

Accepted Answer

A) True 
 B)False

Question 3

A(n)  ___ tries to customize products and their advertising as much as possible to fit the local needs of different countries or regions.

Accepted Answer

A)   globalization strategy
B)   domestic strategy
C)   multidomestic strategy
D)   transnational strategy
E)   crosscultural strategy

Question 4

Businesses pursuing a ___ seek a competitive advantage by directing the organization's resources and attention toward minimizing costs to operate more efficiently than the competition.

Accepted Answer

A)   differentiation strategy
B)   cost leadership strategy
C)   focused differentiation strategy
D)   focused cost reduction strategy
E)   emergent strategy

Question 5

Enigma Breweries, a distillery company, bought Suave Clothing, a premium men's fashion boutique chain. By entering a different business area, Enigma Breweries plans to grow and expand its business and profits. Which type of growth strategy has Enigma Breweries adopted?

Accepted Answer

A)   growth through concentration
B)   growth through diversification
C)   market development strategy
D)   market penetration strategy
E)   product development strategy B

Question 6

A globalization strategy reflects a(n)  ___ that assumes everyone everywhere wants the same thing that one has developed and sold successfully at home.

Accepted Answer

A)   region centered view
B)   ethnocentric view
C)   polycentric view
D)   geocentric view
E)   concentric view

Question 7

Which of the following is true about oligopoly?

Accepted Answer

A)   There are several direct competitors.
B)   It ensures that there is no competition for resources.
C)   There are only a few competitors.
D)   It is seen most often in the fast foods industry.
E)   There are many substitute products.

Question 8

Strategy analysis is ___.

Accepted Answer

A)   the process used to analyze the organization, existing strategies and changes in the organizational environment, and the organization's competitive position and strategies
B)   the method by which strategies guide resource allocation
C)   the same as goal development
D)   also called corporate-level strategy
E)   a form of functional strategy

Question 9

The strategy of working with rivals on projects of mutual benefit is referred to as ___.

Accepted Answer

A)   downsizing
B)   turnaround
C)   divestiture
D)   vertical integration
E)   co-opetition

Question 10

Organizations pursuing a cost leadership strategy seek a competitive advantage by directing the organization's resources and attention toward minimizing costs to operate more efficiently than the competition.

Accepted Answer

A) True 
 B)False  True

Question 11

Why is corporate governance essential in an organization?

Accepted Answer

A)   to downsize the workforce so as to earn less cost of production
B)   to ensure that the strategic management is successful
C)   to criticize and condone the status quo
D)   to be compliant and uncritical in endorsing all management decisions
E)   to avoid rigorous oversight and accountability

Question 12

Businesses pursuing a ___ seek a competitive advantage by directing the organization's resources and attention toward distinguishing its products from those of the competition.

Accepted Answer

A)   differentiation strategy
B)   cost leadership strategy
C)   focused diversification strategy
D)   focused cost leadership strategy
E)   emergent strategy

Question 13

The preferred strategy for Dogs is retrenchment because

Accepted Answer

A)   they produce large profits and a strong cash flow, and the upside potential is there.
B)   they may not generate much profit at the moment, but the upside potential is there.
C)   the markets offer great growth opportunity given that they are new to the market.
D)   they are not only high performers in the present, but they offer similar potential for the future.
E)   they produce little if any profit, and they have low potential for future improvement.

Question 14

Functional strategy addresses the question: "How are we going to compete for customers within this industry and market?"

Accepted Answer

A) True 
 B)False

Question 15

The transnational strategy focuses on working with rivals on projects of mutual benefit.

Accepted Answer

A) True 
 B)False

Question 16

Corporate strategy focuses on the strategic question: "In what industries and markets should we compete?"

Accepted Answer

A) True 
 B)False

Question 17

Healthy Home Inc. is a newly established organization which manufactures home appliances. The company is in the process of selecting the locations for its production facilities and an appropriate manufacturing technology. This information indicates that the company is developing its ___ strategy.

Accepted Answer

A)   contingency
B)   competitive
C)   business-level
D)   marketing
E)   tactical

Question 18

Which of the following statements accurately describe the benefits associated with strong core values?

Accepted Answer

A)   Strong core values give character to an organization.
B)   Strong core values back up the mission statement.
C)   Strong core values help guide members' behaviour in meaningful and consistent ways.
D)   a and b
E)   a, b, and c

Question 19

In conducting a SWOT analysis, a company's opportunities should be assessed in terms of new competitors, possible resource shortages, changing market tastes, substitute products, and new regulations.

Accepted Answer

A) True 
 B)False

Question 20

The financial statement of Labyrinth Inc., a heavy-metal industry, for the year 2013, showed a loss in revenue. The main cause was the entry of new competitors in the market, with advanced skill and expertise. The company decided to conduct an internal assessment of the organization through a SWOT analysis. What was the possible deduction arrived at by the company through its internal analysis?

Accepted Answer

A)   weak management
B)   strong economy
C)   shortage of resources
D)   obsolete technologies
E)   weak market rivals D

Exam 10: Strategy and Strategic Management

The preferred strategy for Stars is growth because they

Correct Answer
verified

Organizations pursuing a focused differentiation strategy seek a competitive advantage by concentrating on one special market segment and trying to be the lowest cost provider in that segment.

Correct Answer
verified

A(n) ___ tries to customize products and their advertising as much as possible to fit the local needs of different countries or regions.

Correct Answer
verified

Businesses pursuing a ___ seek a competitive advantage by directing the organization's resources and attention toward minimizing costs to operate more efficiently than the competition.

Correct Answer
verified

Enigma Breweries, a distillery company, bought Suave Clothing, a premium men's fashion boutique chain. By entering a different business area, Enigma Breweries plans to grow and expand its business and profits. Which type of growth strategy has Enigma Breweries adopted?

Correct Answer
verified
B

A globalization strategy reflects a(n) ___ that assumes everyone everywhere wants the same thing that one has developed and sold successfully at home.

Correct Answer
verified

Which of the following is true about oligopoly?

Correct Answer
verified

Strategy analysis is ___.

Correct Answer
verified

The strategy of working with rivals on projects of mutual benefit is referred to as ___.

Correct Answer
verified

Organizations pursuing a cost leadership strategy seek a competitive advantage by directing the organization's resources and attention toward minimizing costs to operate more efficiently than the competition.

Correct Answer
verified
True

Why is corporate governance essential in an organization?

Correct Answer
verified

Businesses pursuing a ___ seek a competitive advantage by directing the organization's resources and attention toward distinguishing its products from those of the competition.

Correct Answer
verified

The preferred strategy for Dogs is retrenchment because

Correct Answer
verified

Functional strategy addresses the question: "How are we going to compete for customers within this industry and market?"

Correct Answer
verified

The transnational strategy focuses on working with rivals on projects of mutual benefit.

Correct Answer
verified

Corporate strategy focuses on the strategic question: "In what industries and markets should we compete?"

Correct Answer
verified

Healthy Home Inc. is a newly established organization which manufactures home appliances. The company is in the process of selecting the locations for its production facilities and an appropriate manufacturing technology. This information indicates that the company is developing its ___ strategy.

Correct Answer
verified

Which of the following statements accurately describe the benefits associated with strong core values?

Correct Answer
verified

In conducting a SWOT analysis, a company's opportunities should be assessed in terms of new competitors, possible resource shortages, changing market tastes, substitute products, and new regulations.

Correct Answer
verified

Correct Answer
verified
D

Exam 10: Strategy and Strategic Management

The preferred strategy for Stars is growth because they

Correct AnswerverifiedShow Answer

Organizations pursuing a focused differentiation strategy seek a competitive advantage by concentrating on one special market segment and trying to be the lowest cost provider in that segment.

Correct AnswerverifiedShow Answer

A(n) ___ tries to customize products and their advertising as much as possible to fit the local needs of different countries or regions.

Correct AnswerverifiedShow Answer

Businesses pursuing a ___ seek a competitive advantage by directing the organization's resources and attention toward minimizing costs to operate more efficiently than the competition.

Correct AnswerverifiedShow Answer

Enigma Breweries, a distillery company, bought Suave Clothing, a premium men's fashion boutique chain. By entering a different business area, Enigma Breweries plans to grow and expand its business and profits. Which type of growth strategy has Enigma Breweries adopted?

Correct AnswerverifiedB

A globalization strategy reflects a(n) ___ that assumes everyone everywhere wants the same thing that one has developed and sold successfully at home.

Correct AnswerverifiedShow Answer

Which of the following is true about oligopoly?

Correct AnswerverifiedShow Answer

Strategy analysis is ___.

Correct AnswerverifiedShow Answer

The strategy of working with rivals on projects of mutual benefit is referred to as ___.

Correct AnswerverifiedShow Answer

Organizations pursuing a cost leadership strategy seek a competitive advantage by directing the organization's resources and attention toward minimizing costs to operate more efficiently than the competition.

Correct AnswerverifiedTrue

Why is corporate governance essential in an organization?

Correct AnswerverifiedShow Answer

Businesses pursuing a ___ seek a competitive advantage by directing the organization's resources and attention toward distinguishing its products from those of the competition.

Correct AnswerverifiedShow Answer

The preferred strategy for Dogs is retrenchment because

Correct AnswerverifiedShow Answer

Functional strategy addresses the question: "How are we going to compete for customers within this industry and market?"

Correct AnswerverifiedShow Answer

The transnational strategy focuses on working with rivals on projects of mutual benefit.

Correct AnswerverifiedShow Answer

Corporate strategy focuses on the strategic question: "In what industries and markets should we compete?"

Correct AnswerverifiedShow Answer

Healthy Home Inc. is a newly established organization which manufactures home appliances. The company is in the process of selecting the locations for its production facilities and an appropriate manufacturing technology. This information indicates that the company is developing its ___ strategy.

Correct AnswerverifiedShow Answer

Which of the following statements accurately describe the benefits associated with strong core values?

Correct AnswerverifiedShow Answer

In conducting a SWOT analysis, a company's opportunities should be assessed in terms of new competitors, possible resource shortages, changing market tastes, substitute products, and new regulations.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedD

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D