Question 1

The least complex global operation is

Accepted Answer

A) a joint venture. 
B) exporting. 
C) licensing. 
D) franchising.

Question 2

The plan for implementing a new strategy requires the development of new functional strategies.

Accepted Answer

A) True 
 B)False

Question 3

When only one central, guiding plan is put into operation to achieve an organizational goal, the organization is experiencing

Accepted Answer

A) accuracy. 
B) flexibility. 
C) unity. 
D) continuity.

Question 4

A formal, written guide to action for employees in an organization is known as a

Accepted Answer

A) policy. 
B) rule. 
C) standard operating procedure. 
D) rolling plan.

Question 5

A group of managers at Right Stuff, Ltd., analyzes both the internal strengths and weaknesses of their organization as well as the opportunities and threats of the external environment. Which of the following planning exercises does this indicate?

Accepted Answer

A) mission analysis 
B) SWOT analysis 
C) functional analysis 
D) divisional analysis

Question 6

Digicom Corp. attempts to gain a competitive advantage by driving down its production costs per unit below those of its competitors. Digicom is pursuing a(n)________ strategy.

Accepted Answer

A) focused differentiation 
B) low-cost 
C) related diversification 
D) unrelated diversification

Question 7

The plan of an organization that contains top management's decisions about the organization's mission, goals, strategy, and structure is an example of a ________-level plan.

Accepted Answer

A) corporate 
B) divisional 
C) functional 
D) business

Question 8

An intermediate-term plan has a time horizon between five and ten years.

Accepted Answer

A) True 
 B)False

Question 9

Business plans differ in the time horizons that they cover. Discuss the three major types of business plans in terms of their intended duration and explain why all three of these types of plans are important to a business.

Accepted Answer

The answer of Business plans differ in the time horizons...

Question 10

Give the four major reasons why planning is important.

Accepted Answer

The answer of Give the four major reasons why planning...

Question 11

Why is planning considered an important process for managers?

Accepted Answer

A) It gives a sense of direction and purpose. 
B) It ensures only top-level managers make decisions. 
C) It creates a time horizon for different planning levels. 
D) It identifies which markets to enter or avoid.

Question 12

Firestone Tire and Rubber Company purchases rubber plantations in Africa so that it will have a source of supply for its tire manufacturing plants in Akron, Ohio. This is an example of a ________ strategy.

Accepted Answer

A) forward vertical integration 
B) global 
C) diversification 
D) backward vertical integration

Question 13

The motorcycle company EasyRider, Inc., finds itself stuck in the middle. To make this situation profitable, EasyRider decides to

Accepted Answer

A) invest less in the production process, thereby lowering the quality of their motorcycles and lowering their price. 
B) lower the prices for the motorcycles despite the high production costs associated with each model. 
C) hone its production process to make it extremely efficient, thereby lowering production costs while maintaining high quality. 
D) invest more in the production process, thereby improving the quality of the motorcycles and increasing their price.

Question 14

PepsiCo purchased KFC so that it could replace Coke products with Pepsi products in KFC restaurants. This is an example of a ________ strategy.

Accepted Answer

A) horizontal integration 
B) vertical integration 
C) low-cost 
D) global

Question 15

What is the major advantage of a multidomestic strategy?

Accepted Answer

A) the ability to gain market share or charge higher prices for customized product offerings and marketing approaches to local conditions 
B) the significant cost savings associated with not having to customize products and marketing approaches to different national conditions 
C) the high-quality skills of foreign manufacturers and the specialized knowledge of foreign managers about the needs of local customers 
D) the reduced level of risk owing to the managers' full control over all aspects of their foreign subsidiary's operations

Question 16

A backward vertical integration occurs when a company expands into a new industry that

Accepted Answer

A) helps create a competitive advantage. 
B) produces inputs for the company's products. 
C) is not related to the current business in any way. 
D) uses or distributes the company's products.

Question 17

Discuss the different modes of international expansion. Give an example for each.

Accepted Answer

The answer of Discuss the different modes of international expansion....

Question 18

When an organization enters a new type of industry, which is not similar in any way to the current businesses of the organization, it is engaged in

Accepted Answer

A) concentration on a single business. 
B) unrelated diversification. 
C) international expansion. 
D) related diversification.

Question 19

A good plan specifies not only which goals and strategies an organization is committed to but is also accountable for putting the strategies into action to attain the goals.

Accepted Answer

A) True 
 B)False

Question 20

Managers should attempt to collect and use all available information in the organization's planning process. This emphasizes the ________ aspect of planning.

Accepted Answer

A) unity 
B) flexibility 
C) continuity 
D) accuracy

Exam 6: Planning, Strategy, and Competitive Advantage

The least complex global operation is

The plan for implementing a new strategy requires the development of new functional strategies.

When only one central, guiding plan is put into operation to achieve an organizational goal, the organization is experiencing

A formal, written guide to action for employees in an organization is known as a

A group of managers at Right Stuff, Ltd., analyzes both the internal strengths and weaknesses of their organization as well as the opportunities and threats of the external environment. Which of the following planning exercises does this indicate?

Digicom Corp. attempts to gain a competitive advantage by driving down its production costs per unit below those of its competitors. Digicom is pursuing a(n) ________ strategy.

The plan of an organization that contains top management's decisions about the organization's mission, goals, strategy, and structure is an example of a ________-level plan.

An intermediate-term plan has a time horizon between five and ten years.

Business plans differ in the time horizons that they cover. Discuss the three major types of business plans in terms of their intended duration and explain why all three of these types of plans are important to a business.

Give the four major reasons why planning is important.

Why is planning considered an important process for managers?

Firestone Tire and Rubber Company purchases rubber plantations in Africa so that it will have a source of supply for its tire manufacturing plants in Akron, Ohio. This is an example of a ________ strategy.

The motorcycle company EasyRider, Inc., finds itself stuck in the middle. To make this situation profitable, EasyRider decides to

PepsiCo purchased KFC so that it could replace Coke products with Pepsi products in KFC restaurants. This is an example of a ________ strategy.

What is the major advantage of a multidomestic strategy?

A backward vertical integration occurs when a company expands into a new industry that

Discuss the different modes of international expansion. Give an example for each.

When an organization enters a new type of industry, which is not similar in any way to the current businesses of the organization, it is engaged in

A good plan specifies not only which goals and strategies an organization is committed to but is also accountable for putting the strategies into action to attain the goals.

Managers should attempt to collect and use all available information in the organization's planning process. This emphasizes the ________ aspect of planning.