Question 1

A ________ strategy is when an organization expands the number of markets served or the products offered.

Accepted Answer

A)  growth 
B)  renewal 
C)  stability 
D)  retrenchment

Question 2

In ________ integration, the organization gains control of its outputs by becoming its own distributor.

Accepted Answer

A)  diversified 
B)  concentrated 
C)  backward vertical 
D)  forward vertical

Question 3

Exceptional or unique organizational resources are known as core capabilities.

Accepted Answer

A) True 
 B)False

Question 4

Top-level managers are responsible for ________ strategies.

Accepted Answer

A)  tactical 
B)  corporate 
C)  competitive 
D)  functional

Question 5

A firm that is '"stuck in the middle'" cannot develop ________.

Accepted Answer

A)  a cost or differentiation advantage 
B)  a functional strategy 
C)  a leadership strategy 
D)  a competitive advantage

Question 6

Activities that an organization does well or resources that it has available are called capabilities.

Accepted Answer

A) True 
 B)False

Question 7

The combined external and internal analyses are called ________.

Accepted Answer

A)  competitor analysis 
B)  industry analysis 
C)  market analysis 
D)  SWOT analysis

Question 8

An organization that is diversifying its product line is exhibiting what type of corporate strategy?

Accepted Answer

A)  turnaround strategy 
B)  retrenchment strategy 
C)  growth strategy 
D)  diversification strategy

Question 9

When a company combines with firms in different and dissimilar industries, it indulges in ________.

Accepted Answer

A)  unrelated diversification 
B)  horizontal integration 
C)  vertical integration 
D)  focused diversification

Question 10

Newmark RV is performing an internal analysis. Which of the following would be considered a resource?

Accepted Answer

A)  a patent for a special design feature 
B)  a method of production not used by competitors 
C)  strongly positive reviews from existing customers 
D)  membership in RVIA, the industry association

Question 11

When a firm integrates backward, it becomes its own distributor.

Accepted Answer

A) True 
 B)False

Question 12

Managers perform an external analysis so that they know about ________.

Accepted Answer

A)  the firm's basic beliefs and ethical priorities 
B)  what the competition is doing 
C)  what vendors want 
D)  their organization's core competencies

Question 13

A bank estimates the capabilities of its customer service employees prior to implementing a new training program designed to change their method of providing customer service. The bank is ________.

Accepted Answer

A)  conducting an external analysis 
B)  formulating its competitive strategies 
C)  performing an internal analysis 
D)  performing an employee audit

Question 14

When conducting a SWOT analysis, threats are activities the organization doesn't do well or resources it needs but doesn't possess.

Accepted Answer

A) True 
 B)False

Question 15

When Stratasys began making 3D printers in 1988, the future of this new invention was unknown but expected to grow. Stratasys was one of a handful of producers of these printers. According to the BCG matrix, Stratasys was a ________.

Accepted Answer

A)  cash cow 
B)  question mark 
C)  dog 
D)  star

Question 16

A ________ describes the rationale of how a company is going to make money.

Accepted Answer

A)  mission statement 
B)  business model 
C)  SWOT analysis 
D)  core competency

Question 17

Emily's Bakery's customers have asked her to open a second location in a neighboring town offering the same menu as the original location. If Emily decides to do this, she will be following a ________ strategy.

Accepted Answer

A)  focus 
B)  differentiation 
C)  concentration 
D)  diversification

Question 18

A strategy defines how a company is going to make money.

Accepted Answer

A) True 
 B)False

Question 19

Diversification is an example of a corporate retrenchment strategy.

Accepted Answer

A) True 
 B)False

Question 20

During the Great Recession, Malcolm's Racing Bikes lost a considerable amount of its business because customers could no longer afford the expensive models in his shop. He was very near bankruptcy. Malcolm began carrying a line of less expensive bikes to appeal to recreational bicyclists and families and also opened a repair service. Malcolm used a ________ strategy.

Accepted Answer

A)  retrenchment 
B)  diversification 
C)  turnaround 
D)  reorganization

Exam 9: Strategic Planning

A ________ strategy is when an organization expands the number of markets served or the products offered.

In ________ integration, the organization gains control of its outputs by becoming its own distributor.

Exceptional or unique organizational resources are known as core capabilities.

Top-level managers are responsible for ________ strategies.

A firm that is '"stuck in the middle'" cannot develop ________.

Activities that an organization does well or resources that it has available are called capabilities.

The combined external and internal analyses are called ________.

An organization that is diversifying its product line is exhibiting what type of corporate strategy?

When a company combines with firms in different and dissimilar industries, it indulges in ________.

Newmark RV is performing an internal analysis. Which of the following would be considered a resource?

When a firm integrates backward, it becomes its own distributor.

Managers perform an external analysis so that they know about ________.

A bank estimates the capabilities of its customer service employees prior to implementing a new training program designed to change their method of providing customer service. The bank is ________.

When conducting a SWOT analysis, threats are activities the organization doesn't do well or resources it needs but doesn't possess.

When Stratasys began making 3D printers in 1988, the future of this new invention was unknown but expected to grow. Stratasys was one of a handful of producers of these printers. According to the BCG matrix, Stratasys was a ________.

A ________ describes the rationale of how a company is going to make money.

Emily's Bakery's customers have asked her to open a second location in a neighboring town offering the same menu as the original location. If Emily decides to do this, she will be following a ________ strategy.

A strategy defines how a company is going to make money.

Diversification is an example of a corporate retrenchment strategy.