Question 1

Which of the following describes a turnaround strategy?

Accepted Answer

A)   a form of divestment and is appropriate when corporate problems can be traced to the poor performance of an SBU or product line
B)   occurs when the corporation reduces the scope of some of its functional activities and becomes "captive" to another firm
C)   emphasizes improving operational efficiency and is appropriate when a corporation's problems are pervasive, but not yet critical
D)   occurs when a corporation liquidates all its assets
E)   involves adding different products or divisions to the corporation C

Question 2

Horizontal growth is achieved through internal development and not external means.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following is not one of the advantages of portfolio analysis?

Accepted Answer

A)   The graphic depiction facilitates communication.
B)   It provides the basis for impartial objectivity from which to make decisions.
C)   It encourages top management to evaluate each of the corporation's businesses individually.
D)   It raises the issue of cash flow availability for use in expansion and growth.
E)   It stimulates the use of externally oriented data to supplement management's judgment. B

Question 4

According to the BCG Growth-Share Matrix,products that typically bring in far more money than is needed for maintenance of their market share are called

Accepted Answer

A)   cash cows.
B)   lost leaders.
C)   dogs.
D)   question marks.
E)   stars.

Question 5

Backward integration is often more profitable than forward integration.

Accepted Answer

A) True 
 B)False

Question 6

Corporate parenting is the coordination of cash flow among units.

Accepted Answer

A) True 
 B)False

Question 7

The most logical growth strategy for a corporation with current product lines with real growth potential in a growing industry is

Accepted Answer

A)   concentration.
B)   conglomerate integration.
C)   concentric diversification.
D)   stability.
E)   retrenchment.

Question 8

Some companies have moved away from vertical growth strategies toward cooperative contractual relationships with suppliers and even with competitors.

Accepted Answer

A) True 
 B)False

Question 9

The ability for Nike to manufacture its own shoes and then build stores for distribution is an example of

Accepted Answer

A)   forward integration.
B)   horizontal integration.
C)   backward integration.
D)   transferred integration.
E)   mass integration.

Question 10

In many cases,________ integration is more profitable than ________ integration.

Accepted Answer

A)   forward; backward
B)   vertical; backward
C)   backward; vertical
D)   backward; forward
E)   mass; forward

Question 11

A long-term contract is considered vertical integration.

Accepted Answer

A) True 
 B)False

Question 12

Define corporate parenting.

Accepted Answer

The answer of Define corporate parenting....

Question 13

In the Boston Consulting Group's Growth-Share Matrix,the relative competitive position of a product or division is defined as

Accepted Answer

A)   its market share.
B)   its gross sales divided by its market share.
C)   its market share multiplied by that of its nearest competitor.
D)   its market share divided by that of the smallest other competitor.
E)   its market share divided by that of the largest other competitor.

Question 14

An attempt to explain that vertical integration is more efficient than contracting for goods and services in the marketplace when the transaction costs of buying goods on the open market becomes too great has been proposed by

Accepted Answer

A)   population theory.
B)   institution theory.
C)   freakonomics.
D)   transaction cost economics.
E)   transaction growth theory.

Question 15

Vertical integration is the degree to which a firm operates vertically in multiple locations on an industry's value chain from extracting raw materials to manufacturing to retailing.

Accepted Answer

A) True 
 B)False

Question 16

Vertical integration is always more efficient than the marketplace.

Accepted Answer

A) True 
 B)False

Question 17

According to the BCG Growth-Share Matrix,market leaders that typically are at the peak of their product life cycle and are usually able to generate enough cash to maintain their high share of the market are called

Accepted Answer

A)   cash cows.
B)   lost leaders.
C)   dogs.
D)   question marks.
E)   stars.

Question 18

According to the BCG Growth-Share Matrix,cash cows are market share leaders typically at the growth stage of their product life cycle and are usually able to generate enough cash to maintain their high share of the market.

Accepted Answer

A) True 
 B)False

Question 19

With taper integration,a firm internally makes 100% of its key supplies and completely controls its distributors.

Accepted Answer

A) True 
 B)False

Question 20

An example of a company that did not blindly follow the prescriptions of a portfolio model was

Accepted Answer

A)   Apple.
B)   Nike.
C)   General Mills.
D)   Dell.
E)   IBM.

Exam 7: Strategy Formulation: Corporate Strategy

Which of the following describes a turnaround strategy?

Horizontal growth is achieved through internal development and not external means.

Which of the following is not one of the advantages of portfolio analysis?

According to the BCG Growth-Share Matrix,products that typically bring in far more money than is needed for maintenance of their market share are called

Backward integration is often more profitable than forward integration.

Corporate parenting is the coordination of cash flow among units.

The most logical growth strategy for a corporation with current product lines with real growth potential in a growing industry is

Some companies have moved away from vertical growth strategies toward cooperative contractual relationships with suppliers and even with competitors.

The ability for Nike to manufacture its own shoes and then build stores for distribution is an example of

In many cases, integration is more profitable than integration.

A long-term contract is considered vertical integration.

Define corporate parenting.

In the Boston Consulting Group's Growth-Share Matrix,the relative competitive position of a product or division is defined as

An attempt to explain that vertical integration is more efficient than contracting for goods and services in the marketplace when the transaction costs of buying goods on the open market becomes too great has been proposed by

Vertical integration is the degree to which a firm operates vertically in multiple locations on an industry's value chain from extracting raw materials to manufacturing to retailing.

Vertical integration is always more efficient than the marketplace.

According to the BCG Growth-Share Matrix,market leaders that typically are at the peak of their product life cycle and are usually able to generate enough cash to maintain their high share of the market are called

According to the BCG Growth-Share Matrix,cash cows are market share leaders typically at the growth stage of their product life cycle and are usually able to generate enough cash to maintain their high share of the market.

With taper integration,a firm internally makes 100% of its key supplies and completely controls its distributors.

An example of a company that did not blindly follow the prescriptions of a portfolio model was