Question 1

There are three types of diversification strategies: single-product strategy,related diversification,and unrelated diversification.

Accepted Answer

A) True 
 B)False

Question 2

The function of accounting and finance in a business that is implementing a differentiation strategy is to control the flow of funds without discouraging the creativity needed to constantly develop new products and services to meet customer needs.

Accepted Answer

A) True 
 B)False

Question 3

GE noticed that financial institutions had large profit margins.When GE entered the industry,its SBU was

Accepted Answer

A) a question mark. 
B) a winner. 
C) a loser. 
D) an average business. 
E) a profit producer. 
A) a question mark. 
B) a winner. 
C) a loser. 
D) an average business. 
E) a profit producer.

Question 4

____________________ is a skill or capability held by numerous competing firms.

Accepted Answer

The answer of ____________________ is a skill or capability held...

Question 5

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

Accepted Answer

A) Similar technology 
B) Similar human resources 
C) Common brand name and reputation 
D) Common customers 
E) Common distribution and marketing skills 
A) Similar technology 
B) Similar human resources 
C) Common brand name and reputation 
D) Common customers 
E) Common distribution and marketing skills

Question 6

The key to implementing business strategies is integrating different functions.

Accepted Answer

A) True 
 B)False

Question 7

Emergent strategies are ineffective and should be avoided.

Accepted Answer

A) True 
 B)False

Question 8

Write a SWOT analysis of Apple.

Accepted Answer

SWOT Analysis of Apple:

Strengths:
1. S

Question 9

Extra funds should be channeled to the ____,which is a product with a high share of a fast-growing market.

Accepted Answer

A) star 
B) cash cow 
C) rising star 
D) defender 
E) question mark 
A) star 
B) cash cow 
C) rising star 
D) defender 
E) question mark

Question 10

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

Accepted Answer

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 
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

Question 11

Which of the following is NOT one of the strategy types listed in the Miles and Snow typology?

Accepted Answer

A) Prospector 
B) Defender 
C) Reactor 
D) Rescuer 
E) Analyzer 
A) Prospector 
B) Defender 
C) Reactor 
D) Rescuer 
E) Analyzer

Question 12

The GE business screen is an expansion of the ideas from

Accepted Answer

A) the product life cycle approach. 
B) the Miles and Snow typology of business strategy. 
C) the generic strategy approach. 
D) Porter's competitive strategies. 
E) the BCG matrix. 
A) the product life cycle approach. 
B) the Miles and Snow typology of business strategy. 
C) the generic strategy approach. 
D) Porter's competitive strategies. 
E) the BCG matrix.

Question 13

Yahoo! has a business strategy that creates revenue by selling ads.Yahoo! uses a(n)____ strategy.

Accepted Answer

A) valid 
B) deliberate 
C) reliable 
D) emergent 
E) synergistic 
A) valid 
B) deliberate 
C) reliable 
D) emergent 
E) synergistic

Question 14

United Continental Holdings includes Continental Airlines,United Airline,Chelsea Food Services,and United Cruises,because it was thought that they can accomplish more joined together than they can operating as separate units.Which advantage of related diversification does this best represent?

Accepted Answer

A) Reducing overhead 
B) Creating a distinctive competence 
C) Innovation 
D) Synergy 
E) Reducing business dependence 
A) Reducing overhead 
B) Creating a distinctive competence 
C) Innovation 
D) Synergy 
E) Reducing business dependence

Question 15

Mercedes-Benz sells high quality automobiles at high prices.It uses a(n)____ strategy.

Accepted Answer

A) prospecting 
B) emergent 
C) differentiation 
D) cost leadership 
E) guerrilla 
A) prospecting 
B) emergent 
C) differentiation 
D) cost leadership 
E) guerrilla

Question 16

Organizational ____________________ are areas that increase the difficulty of an organization's performing at a high level.

Accepted Answer

The answer of Organizational ____________________ are areas that increase the...

Question 17

Mont Blanc pens sell for hundreds of dollars.Mont Blanc uses a(n)____ strategy.

Accepted Answer

A) guerrilla 
B) overall cost leadership 
C) focus 
D) differentiation 
E) defender 
A) guerrilla 
B) overall cost leadership 
C) focus 
D) differentiation 
E) defender

Question 18

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?

Accepted Answer

A) An independent business 
B) A strategic business unit 
C) An entrepreneurship 
D) A functional department 
E) A competitive unit 
A) An independent business 
B) A strategic business unit 
C) An entrepreneurship 
D) A functional department 
E) A competitive unit

Question 19

The concept of product life cycle can be used to choose which strategy is appropriate for a given product at a particular point in time.

Accepted Answer

A) True 
 B)False

Question 20

St.Luke's Hospital started offering deeply discounted computerized tomography (CT)scans for smokers worried about lung cancer.St.Luke's willingness to change the price is an example of change in

Accepted Answer

A) alignment. 
B) synergy. 
C) scope. 
D) resource deployment. 
E) entropy. 
A) alignment. 
B) synergy. 
C) scope. 
D) resource deployment. 
E) entropy.

Exam 8: Managing Strategy and Strategic Planning

There are three types of diversification strategies: single-product strategy,related diversification,and unrelated diversification.

The function of accounting and finance in a business that is implementing a differentiation strategy is to control the flow of funds without discouraging the creativity needed to constantly develop new products and services to meet customer needs.

GE noticed that financial institutions had large profit margins.When GE entered the industry,its SBU was

____________________ is a skill or capability held by numerous competing firms.

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

The key to implementing business strategies is integrating different functions.

Emergent strategies are ineffective and should be avoided.

Write a SWOT analysis of Apple.

Extra funds should be channeled to the ____,which is a product with a high share of a fast-growing market.

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

Which of the following is NOT one of the strategy types listed in the Miles and Snow typology?

The GE business screen is an expansion of the ideas from

Yahoo! has a business strategy that creates revenue by selling ads.Yahoo! uses a(n)____ strategy.

United Continental Holdings includes Continental Airlines,United Airline,Chelsea Food Services,and United Cruises,because it was thought that they can accomplish more joined together than they can operating as separate units.Which advantage of related diversification does this best represent?

Mercedes-Benz sells high quality automobiles at high prices.It uses a(n)____ strategy.

Organizational ____________________ are areas that increase the difficulty of an organization's performing at a high level.

Mont Blanc pens sell for hundreds of dollars.Mont Blanc uses a(n)____ 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?

The concept of product life cycle can be used to choose which strategy is appropriate for a given product at a particular point in time.

St.Luke's Hospital started offering deeply discounted computerized tomography (CT)scans for smokers worried about lung cancer.St.Luke's willingness to change the price is an example of change in

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