Question 1

One of the risks associated with a horizontal integration strategy is

Accepted Answer

A)  a potential violation of antitrust laws. 
B)  exponential growth. 
C)  increased market exposure. 
D)  increase in sales. 
E)  None of the answer choices is correct. 
A)  a potential violation of antitrust laws. 
B)  exponential growth. 
C)  increased market exposure. 
D)  increase in sales. 
E)  None of the answer choices is correct. A

Question 2

Developing different uses for a product is an example of a ________ concentration option.

Accepted Answer

A)  product-market diversification. 
B)  market development 
C)  product-market exploitation 
D)  product development 
E)  None of the answer choices is correct. 
A)  product-market diversification. 
B)  market development 
C)  product-market exploitation 
D)  product development 
E)  None of the answer choices is correct. C

Question 3

Corporate strategies are concerned with the broad and long-term questions of what business(es)the organization is in or wants to be in and what it wants to do with those businesses.

Accepted Answer

A) True 
 B)False  True

Question 4

Cash flows from cash cows should be used to support

Accepted Answer

A)  question marks. 
B)  stars. 
C)  dogs. 
D)  question marks and stars. 
E)  question marks and dogs. 
A)  question marks. 
B)  stars. 
C)  dogs. 
D)  question marks and stars. 
E)  question marks and dogs.

Question 5

Examples of portfolio analyses include

Accepted Answer

A)  the BCG matrix. 
B)  the McKinsey-GE stoplight matrix. 
C)  the product-market evolution matrix. 
D)  All of the answer choices are correct. 
E)  None of the answer choices is correct. 
A)  the BCG matrix. 
B)  the McKinsey-GE stoplight matrix. 
C)  the product-market evolution matrix. 
D)  All of the answer choices are correct. 
E)  None of the answer choices is correct.

Question 6

The types of renewal strategies include

Accepted Answer

A)  retrenchment strategy. 
B)  turnaround strategy. 
C)  diversification strategy. 
D)  retrenchment and turnaround strategies. 
E)  None of the answer choices is correct. 
A)  retrenchment strategy. 
B)  turnaround strategy. 
C)  diversification strategy. 
D)  retrenchment and turnaround strategies. 
E)  None of the answer choices is correct.

Question 7

Mr. Wilson is considering combining operations by exchanging stock with a competitor, Italian Delights, to create a new store, Supremo Italiano. Which of the following growth strategies is Mr. Wilson following here?

Accepted Answer

A)  Merger 
B)  Acquisition 
C)  Hostile takeover 
D)  Internal development 
E)  Joint ventures 
A)  Merger 
B)  Acquisition 
C)  Hostile takeover 
D)  Internal development 
E)  Joint ventures

Question 8

How are mergers different from acquisitions?

Accepted Answer

A merger is a legal transaction in which

Question 9

The vertical integration strategy involves expanding the organization's operations through combining with other organizations in the same industry doing the same things.

Accepted Answer

A) True 
 B)False

Question 10

A paper manufacturer purchasing a forest of trees is an example of

Accepted Answer

A)  forward vertical integration. 
B)  backward vertical integration. 
C)  product/market exploitation. 
D)  product development. 
E)  a defensive company. 
A)  forward vertical integration. 
B)  backward vertical integration. 
C)  product/market exploitation. 
D)  product development. 
E)  a defensive company.

Question 11

A merger is a legal transaction in which two or more organizations combine operations through an exchange of stock, but only one organization entity will actually remain.

Accepted Answer

A) True 
 B)False

Question 12

Related diversification is ________ unrelated diversification.

Accepted Answer

A)  less effective than 
B)  more effective than 
C)  just as effective as 
D)  less profitable than 
E)  None of the answer choices is correct. 
A)  less effective than 
B)  more effective than 
C)  just as effective as 
D)  less profitable than 
E)  None of the answer choices is correct.

Question 13

A diversification strategy is a growth strategy in which an organization expands its operations by moving into a different industry.

Accepted Answer

A) True 
 B)False

Question 14

Factors of industry attractiveness include

Accepted Answer

A)  industry profitability. 
B)  number of competitors. 
C)  ethical standards. 
D)  technological stability of the market. 
E)  All of the answer choices are correct. 
A)  industry profitability. 
B)  number of competitors. 
C)  ethical standards. 
D)  technological stability of the market. 
E)  All of the answer choices are correct.

Question 15

A long-term contract is usually an agreement between

Accepted Answer

A)  two organizations in the same industry. 
B)  an organization and its suppliers. 
C)  two organizations in unrelated industries. 
D)  a domestic and international organization. 
E)  None of the answer choices is correct. 
A)  two organizations in the same industry. 
B)  an organization and its suppliers. 
C)  two organizations in unrelated industries. 
D)  a domestic and international organization. 
E)  None of the answer choices is correct.

Question 16

The ________ strategy is one in which the organization maintains its current size and current level of business operations.

Accepted Answer

A)  stability 
B)  concentration 
C)  diversification 
D)  backward integration 
E)  forward integration 
A)  stability 
B)  concentration 
C)  diversification 
D)  backward integration 
E)  forward integration

Question 17

A more dramatic response to a failing organization may be

Accepted Answer

A)  a joint venture strategy. 
B)  a turnaround strategy. 
C)  a vertical integration strategy. 
D)  a long-term contract. 
E)  None of the answer choices is correct. 
A)  a joint venture strategy. 
B)  a turnaround strategy. 
C)  a vertical integration strategy. 
D)  a long-term contract. 
E)  None of the answer choices is correct.

Question 18

The main drawback of the BCG and McKinsey-GE Spotlight matrices is the subjectivity of the analysis.

Accepted Answer

A) True 
 B)False

Question 19

One of the major disadvantages of the McKinsey matrix is that of

Accepted Answer

A)  simplicity. 
B)  uniqueness. 
C)  subjectivity. 
D)  All of the answer choices are correct. 
E)  None of the answer choices is correct. 
A)  simplicity. 
B)  uniqueness. 
C)  subjectivity. 
D)  All of the answer choices are correct. 
E)  None of the answer choices is correct.

Question 20

Both the product-market evolution and McKinsey matrices have the disadvantage of

Accepted Answer

A)  simplicity. 
B)  complexity. 
C)  individuality. 
D)  subjectivity. 
E)  None of the answer choices is correct. 
A)  simplicity. 
B)  complexity. 
C)  individuality. 
D)  subjectivity. 
E)  None of the answer choices is correct.

One of the risks associated with a horizontal integration strategy is

Developing different uses for a product is an example of a ________ concentration option.

Corporate strategies are concerned with the broad and long-term questions of what business(es)the organization is in or wants to be in and what it wants to do with those businesses.

Cash flows from cash cows should be used to support

Examples of portfolio analyses include

The types of renewal strategies include

Mr. Wilson is considering combining operations by exchanging stock with a competitor, Italian Delights, to create a new store, Supremo Italiano. Which of the following growth strategies is Mr. Wilson following here?

How are mergers different from acquisitions?

The vertical integration strategy involves expanding the organization's operations through combining with other organizations in the same industry doing the same things.

A paper manufacturer purchasing a forest of trees is an example of

A merger is a legal transaction in which two or more organizations combine operations through an exchange of stock, but only one organization entity will actually remain.

Related diversification is ________ unrelated diversification.

A diversification strategy is a growth strategy in which an organization expands its operations by moving into a different industry.

Factors of industry attractiveness include

A long-term contract is usually an agreement between

The ________ strategy is one in which the organization maintains its current size and current level of business operations.

A more dramatic response to a failing organization may be

The main drawback of the BCG and McKinsey-GE Spotlight matrices is the subjectivity of the analysis.

One of the major disadvantages of the McKinsey matrix is that of

Both the product-market evolution and McKinsey matrices have the disadvantage of

Introducing the Concepts

The Context of Managing Strategically

Assessing Opportunities and Threats: Doing an External Analysis

Assessing Strengths and Weaknesses: Doing an Internal Analysis

Functional and Competitive Strategies

International Strategies

Module Special Topics in Strategy

Filters

Exam 6: Corporate Strategies

One of the risks associated with a horizontal integration strategy is

Developing different uses for a product is an example of a ________ concentration option.

Corporate strategies are concerned with the broad and long-term questions of what business(es)the organization is in or wants to be in and what it wants to do with those businesses.

Cash flows from cash cows should be used to support

Examples of portfolio analyses include

The types of renewal strategies include

Mr. Wilson is considering combining operations by exchanging stock with a competitor, Italian Delights, to create a new store, Supremo Italiano. Which of the following growth strategies is Mr. Wilson following here?

How are mergers different from acquisitions?

The vertical integration strategy involves expanding the organization's operations through combining with other organizations in the same industry doing the same things.

A paper manufacturer purchasing a forest of trees is an example of

A merger is a legal transaction in which two or more organizations combine operations through an exchange of stock, but only one organization entity will actually remain.

Related diversification is ________ unrelated diversification.

A diversification strategy is a growth strategy in which an organization expands its operations by moving into a different industry.

Factors of industry attractiveness include

A long-term contract is usually an agreement between

The ________ strategy is one in which the organization maintains its current size and current level of business operations.

A more dramatic response to a failing organization may be

The main drawback of the BCG and McKinsey-GE Spotlight matrices is the subjectivity of the analysis.

One of the major disadvantages of the McKinsey matrix is that of

Both the product-market evolution and McKinsey matrices have the disadvantage of

Introducing the Concepts

The Context of Managing Strategically

Assessing Opportunities and Threats: Doing an External Analysis

Assessing Strengths and Weaknesses: Doing an Internal Analysis

Functional and Competitive Strategies

International Strategies

Module Special Topics in Strategy

Filters