Question 1

In general, business planning involves three distinct steps. Discuss these three steps.

Accepted Answer

The answer of In general, business planning involves three distinct...

Question 2

Managers at Dimensions, Inc., analyze the current situation of their organization and then develop plans to help their organization accomplish its mission and achieve its goals. This is known as ________.

Accepted Answer

A)  synergy planning 
B)  strategy formulation 
C)  functional planning 
D)  SWOT analysis

Question 3

An ongoing process in which managers build and refine previous plans and continually modify plans at all levels, corporate, business, and functional, so that they fit together into one broad framework, is known as ________.

Accepted Answer

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

Question 4

When managers pool or share their organization's resources and know-how with those of a foreign company, and the two organizations share the rewards or risks of starting a new venture in a foreign country, the two organizations are involved in ________.

Accepted Answer

A)  a joint venture 
B)  a strategic alliance 
C)  differentiation 
D)  licensing

Question 5

Managers can use four principal corporate-level strategies in order to help their organization to increase its sales and profits. Discuss any two of these strategies and explain the decisions that a manager would have to make in a business in order to design a program that used these two strategies.

Accepted Answer

The answer of Managers can use four principal corporate-level strategies...

Question 6

Unilever sells different products using a different marketing approach in England than it uses when marketing these products in the United States. This is an example of a ________ strategy.

Accepted Answer

A)  vertical integration 
B)  focused low-cost 
C)  global 
D)  multidomestic

Question 7

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 8

The least complex global operation is _______.

Accepted Answer

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

Question 9

Jespher, Inc., allows Hertonz, a foreign organization, to take charge of both manufacturing and distributing one or more of its products in Thailand in return for a negotiated fee. This is an example of ________.

Accepted Answer

A)  exporting 
B)  licensing 
C)  a strategic alliance 
D)  a joint venture

Question 10

An organization purchases one of its suppliers in order to obtain access to the raw materials it needs for its production. The organization is using a(n) _______ corporate-level strategy.

Accepted Answer

A)  international expansion 
B)  vertical integration 
C)  diversification 
D)  market development

Question 11

The organizational strategy that specifies the activities of managers at the departmental level of the organization is a _____________-level strategy.

Accepted Answer

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

Question 12

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 13

A group of managers at Power Explosives 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)  Diversification

Question 14

The Stonehedge Bayonet Company aims at a market of hunters, and they try to keep prices lower than competition. Stonehedge is pursuing a ________ strategy.

Accepted Answer

A)  low-cost 
B)  differentiation 
C)  focused low-cost 
D)  focused differentiation

Question 15

List the process of strategy implementation.

Accepted Answer

The answer of List the process of strategy implementation....

Question 16

Give the four major reasons why planning is important.

Accepted Answer

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

Question 17

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

Question 18

The industries and national markets an organization intends to compete in and the reasons why are specified in a company's _______-level strategy.

Accepted Answer

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

Question 19

Which of the following qualities of an effective plan allows for alterations if the situation changes?

Accepted Answer

A)  Continuity 
B)  Unity 
C)  Flexibility 
D)  Accuracy

Question 20

What is the plan of action for a business-level strategy based on SWOT analysis?

Accepted Answer

A)  To maximize an organization's ability to create value 
B)  To take advantage of favorable opportunities 
C)  To choose industries and countries to invest in 
D)  To improve task-specific activities within the organization

Exam 6: Planning, Strategy, and Competitive Advantage