Question 1

Colleen is successful after the first 3 years, and she is approached by a competitor who is nearing retirement age.The competitor is interested in selling his business to Colleen.For Colleen, this would be a(n) ________ strategy.

Accepted Answer

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

Question 2

How can an organization develop strategic flexibility?

Accepted Answer

A)  It should commit resources only after thorough planning. 
B)  It should monitor and evaluate its past strategies. 
C)  It should depend on tried and tested perspectives from senior employees. 
D)  It should have multiple alternatives when making strategic decisions.

Question 3

Ariel is considering forgoing the retail side of his business entirely.Instead, he will redirect his resources toward reselling hardware and software and providing systems integration services to the Latin American governmental and industrial sectors.Such a move would be most representative of which one of the following strategies?

Accepted Answer

A)  cost leadership 
B)  leadership 
C)  focus 
D)  functional

Question 4

A retrenchment strategy is a short-run renewal strategy that helps an organization stabilize operations, revitalize organizational resources and capabilities, and prepare to compete once again.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Casey majored in marketing and really enjoyed studying market research as a subject.Through research on the Internet and in the university library, she discovers that this industry appears to have significant positive external trends.She interprets this as a(n) ________.

Accepted Answer

A)  weakness 
B)  threat 
C)  strength 
D)  opportunity

Question 7

Because of the good profits and a fear of growing too fast, you decide to keep Taco Rocket in the same business and do not change the menu.You hope to retain the same market share and return-on-investment record.This is considered a ________ strategy.

Accepted Answer

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

Question 8

A SWOT analysis includes an analysis of an organization's environmental opportunities and threats.

Accepted Answer

A) True 
 B)False

Question 9

What are the three main types of corporate strategies?

Accepted Answer

A)  stability, focus, and turnaround 
B)  growth, stability, and renewal 
C)  growth, cost leadership, and differentiation 
D)  stability, differentiation, and focus

Question 10

Your oldest holding, Taco Rocket, has not grown much in recent years, but due to low debt, it generates a huge amount of cash.According to BCG, Taco Rocket would be considered a ________.

Accepted Answer

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

Question 11

When an organization continues serving the same clients by offering the same product or service, maintaining market share, and sustaining the organization's current business operations, it is following a ________ strategy.

Accepted Answer

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

Question 12

A cost leadership strategy requires a firm to ________.

Accepted Answer

A)  maintain the lowest cost structure 
B)  be unique in its product offering 
C)  aim at a cost advantage in a niche market 
D)  match its competition in terms of costs

Question 13

In an organization, the single independent businesses which formulate their own competitive strategies are known as ________.

Accepted Answer

A)  strategic growth units 
B)  strategic business units 
C)  focus units 
D)  service units

Question 14

________ are positive trends in the external environment.

Accepted Answer

A)  Strengths 
B)  Threats 
C)  Weaknesses 
D)  Opportunities

Question 15

Kiva Systems, manufacturer of robots used in flexible automation systems, demonstrates the power of ________ by "teaching" its robots to dispose of used cardboard and to assist in gift wrapping for e-commerce warehouse fulfillment.

Accepted Answer

A)  design thinking 
B)  competitive advantage 
C)  strategic flexibility 
D)  e-business strategies

Question 16

With all the changes occurring in the computer reseller market, you advise him to stay with his present course until the market calms down.You are recommending that Ariel use a ________ strategy.

Accepted Answer

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

Question 17

List and discuss the different types of corporate strategies.

Accepted Answer

The answer of List and discuss the different types of...

Question 18

After completing an external analysis, Patrick will become aware of the ________ of the company.

Accepted Answer

A)  threats and weaknesses 
B)  strengths and weaknesses 
C)  opportunities and threats 
D)  strengths and opportunities

Question 19

In ________, the organization becomes its own supplier so it can control its inputs.

Accepted Answer

A)  concentrated integration 
B)  backward vertical integration 
C)  forward vertical integration 
D)  horizontal integration

Question 20

Noting the growing popularity of South-East Asian food, you decide to open a new outlet called Rice Rocket.Which of the following, if true, could prove to be a threat to this plan?

Accepted Answer

A)  You don't have the necessary expertise; you will have to recruit chefs and staff familiar with Asian food preparation. 
B)  A competitor, Pan Asia, has a similar product lineup and first mover advantage in the market. 
C)  Rice Rocket will necessitate a complete overhaul of your existing supply process. 
D)  A survey indicates that the Taco Rocket brand name evokes trust and consumer loyalty.

Exam 9: Strategic Management

Colleen is successful after the first 3 years, and she is approached by a competitor who is nearing retirement age.The competitor is interested in selling his business to Colleen.For Colleen, this would be a(n) ________ strategy.

How can an organization develop strategic flexibility?

A retrenchment strategy is a short-run renewal strategy that helps an organization stabilize operations, revitalize organizational resources and capabilities, and prepare to compete once again.

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

Casey majored in marketing and really enjoyed studying market research as a subject.Through research on the Internet and in the university library, she discovers that this industry appears to have significant positive external trends.She interprets this as a(n) ________.

Because of the good profits and a fear of growing too fast, you decide to keep Taco Rocket in the same business and do not change the menu.You hope to retain the same market share and return-on-investment record.This is considered a ________ strategy.

A SWOT analysis includes an analysis of an organization's environmental opportunities and threats.

What are the three main types of corporate strategies?

Your oldest holding, Taco Rocket, has not grown much in recent years, but due to low debt, it generates a huge amount of cash.According to BCG, Taco Rocket would be considered a ________.

When an organization continues serving the same clients by offering the same product or service, maintaining market share, and sustaining the organization's current business operations, it is following a ________ strategy.

A cost leadership strategy requires a firm to ________.

In an organization, the single independent businesses which formulate their own competitive strategies are known as ________.

________ are positive trends in the external environment.

Kiva Systems, manufacturer of robots used in flexible automation systems, demonstrates the power of ________ by "teaching" its robots to dispose of used cardboard and to assist in gift wrapping for e-commerce warehouse fulfillment.

With all the changes occurring in the computer reseller market, you advise him to stay with his present course until the market calms down.You are recommending that Ariel use a ________ strategy.

List and discuss the different types of corporate strategies.

After completing an external analysis, Patrick will become aware of the ________ of the company.

In ________, the organization becomes its own supplier so it can control its inputs.

Noting the growing popularity of South-East Asian food, you decide to open a new outlet called Rice Rocket.Which of the following, if true, could prove to be a threat to this plan?