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Q:
(p. 274) Corporate strategists found the growth-share matrix's singular axes
A. Limiting in their ability to reflect the complexity of a business's situation
B. A good way to simplify the complexity of a business's situation
C. A good reflection of the simplistic nature of most corporate-level decisions
D. To difficult to manipulate
Q:
(p. 274) How many strategic approaches are suggested by the Industry Attractiveness-Business Strength matrix?
A. 2
B. 4
C. 3
D. 5
Q:
(p. 274) The Industry Attractiveness-Business Strength matrix has ____ cells, while the BCG matrix has ___ cells.
A. 6,4
B. 4,6
C. 9,4
D. 4,9
Q:
(p. 274) The _________ matrix was developed by McKinsey & Company at General Electric.
A. Industry awareness
B. Growth-share
C. Industry attractiveness-business strength
D. Strategic environments
Q:
(p. 273) As per the BCG matrix, which of these should be selectively divested?
A. Cash cows
B. Stars
C. Question marks
D. Dogs
Q:
(p. 273) _______ are businesses whose high growth rate gives them considerable appeal, but whose low market share makes their profit potential uncertain.
A. Dogs
B. Stars
C. Question marks
D. Cash cows
Q:
(p. 273) Crabtree Soup has been facing intense competition and suffering low profit margins for a year now. The market for their specialty soups has matured and the firm is being managed for short-term cash flow to supplement SwissCo's corporate-level resource needs. Which type of firm is Crabtree Soup as per the BCG Growth-Share matrix?
A. Star
B. Dog
C. Cash cow
D. Question mark
Q:
(p. 273) Low market share businesses in low market growth industries are called:
A. Stars
B. Cash cows
C. Dogs
D. Question marks
Q:
(p. 273) As per the BCG matrix, which of these businesses should be divested or liquidated?
A. Cash cows
B. Guzzlers
C. Dogs
D. Stars
Q:
(p. 273) As per the BCG matrix, which of these are cash guzzlers because of their uncertain profit potential?
A. Cash cows
B. Stars
C. Question marks
D. Dogs
Q:
(p. 273) In the BCG matrix, which of these are managed for short-term cash flow?
A. Cash cows
B. Question marks
C. Dogs
D. Stars
Q:
(p. 273) Cash cows are yesterdays
A. Problem children
B. Question marks
C. Stars
D. Dogs
Q:
(p. 273) In the BCG matrix, which of these businesses often generate cash in excess of their needs?
A. Stars
B. Question marks
C. Cash cows
D. Dogs
Q:
(p. 273) ________ is the current foundation of corporate portfoliosthey sustain corporate overhead, dividends and provide debt capacity.
A. Cash cows
B. Dogs
C. Stars
D. Question marks
Q:
(p. 273) When using the BCG growth-share matrix, the dividing point for the growth rate of an industry in constant dollars is typically:
A. The market's growth rate
B. The consumer price index
C. The growth rate of the gross domestic product (GDP)
D. The growth rate of the gross national product (GNP)
Q:
(p. 273) Zeon Plus Company requires substantial investment to maintain and expand their dominant position in the growing electronic zeonites market. In fact, this investment is often in excess of the funds that the firm can generate internally. However, Zeon Plus does have a very large market share. What type of company is this, according to the BCG growth-share matrix?
A. Cash cow
B. Dog
C. Question mark
D. Star
Q:
(p. 273) For the ABC Company, the Theta business is in a low market share position in a slow growing market. As per the BCG matrix, Theta is a
A. Cash cow
B. Question mark
C. Dog
D. Star
Q:
(p. 273) For the ABC Company, the Delta business has a low market share position in a fast growing market. As per the BCG matrix, Delta is a
A. Cash cow
B. Star
C. Question mark
D. Dog
Q:
(p. 273) For the ABC Company, the Alpha business is in a dominant market share position in a mature market. As per the BCG matrix, Alpha is a
A. Star
B. Question mark
C. Cash cow
D. Dog
Q:
(p. 273) Businesses with high market share in low-growth industries are called:
A. Stars
B. Cash cows
C. Question marks
D. Dogs
Q:
(p. 273) For the ABC Company, the Omega business is in a dominant market share position in a fast growing market. As per the BCG matrix, Omega is a
A. Cash cow
B. Question mark
C. Star
D. Dog
Q:
(p. 273) In the BCG growth-share matrix, the ________ are businesses in rapidly growing markets with large market shares.
A. Cash cows
B. Question marks
C. Stars
D. Dogs
Q:
(p. 273) __________ provides a basis for comparing the relative strengths of the businesses in the firms portfolio in terms of their positions in their respective markets.
A. Relative competitive position
B. Relative market share
C. Market growth rate
D. Growth-share rate
Q:
(p. 273) __________ usually is expressed as market share of a business divided by the market share of its largest competitor.
A. Relative competitive position
B. Relative market share
C. Market growth rate
D. Growth-share rate
Q:
(p. 272) The ______ serves as an indicator of the relative attractiveness of the markets served by each business in the firms portfolio of businesses.
A. Market share
B. Market projection
C. Market growth rate
D. Relative competitive position
Q:
(p. 272) The ________ is the projected rate of sales growth for the market being served by a particular business.
A. Market share
B. Market projection
C. Market growth rate
D. Relative competitive position
Q:
(p. 272) ________ attempt to help managers "balance" the flow of cash resources among their various businesses while also identifying the overall strategic purpose within the group of businesses.
A. Growth techniques
B. Market share techniques
C. Portfolio techniques
D. Environment techniques
Q:
(p. 272) What was the key challenge as companies jumped on the diversification bandwagon?
A. Making the business profitable
B. Finding businesses to buy
C. Managing the resource needs of diverse businesses
D. Financing acquisitions
Q:
(p. 272) Which of the following firms pioneered the portfolio approach to strategic analysis and choice?
A. Bain Consulting
B. Boston Consulting Group
C. Booz Allen Hamilton
D. McKinsey & Company
Q:
(p. 272) Which of the following is NOT a reason for the emergence of multi-business companies?
A. Companies can enter businesses with greater growth potential
B. Companies can enter businesses with different cyclical considerations
C. Companies can diversify inherent risks
D. Companies can slow their internal growth
Q:
(p. 272) In the past ________ years, we have seen a virtual explosion in the extent to which single-business companies seek to acquire other businesses to grow and diversify.
A. 5
B. 50
C. 30
D. 100
Q:
(p. 272) The _______ approach was one of the early approaches for charting strategy and allocating resources in multi-business companies. It was particularly popular in the 1960s and 1970s.
A. Case
B. Matrix-management
C. Portfolio
D. Patching
Q:
(p. 258) Slow growth or a decline in demand for an industry could be caused by
A. technological substitution
B. strong branding
C. significant differentiation
D. Integration
Q:
(p. 257) Business strategies in maturing industries should avoid all of these pitfalls EXCEPT which one?
A. Avoid sacrificing market share too quickly
B. Make a clear choice among three generic strategies and avoid the middle-ground approach
C. Avoid waiting too long to respond to price reductions
D. Avoid horizontal integration to acquire rival firms
Q:
(p. 257) Business strategies require all of these features EXCEPT which one for success in mature industries?
A. Harvest the business
B. Emphasis on cost reduction
C. Product line pruning
D. Horizontal integration
Q:
(p. 257) For success in mature industries, business strategies require which of these features?
A. Ability to rapidly improve product qualities and performance features
B. Ability to differentiate the firm's products from competitors entering the market
C. Emphasis on process innovation that permits low-cost product design, manufacturing methods and distribution synergy
D. Gradually harvest the business
Q:
(p. 257) As an industry evolves, its rate of growth eventually
A. declines
B. stabilizes
C. increases
D. plateaus
Q:
(p. 257) Strategies used by firms competing in markets where the growth rate of that market from year to year had reached or is close to zero are called ________ industry strategies.
A. Mature
B. Growth
C. Emerging
D. Declining
Q:
(p. 256) Business strategies require all of these EXCEPT which feature for success in growing industries?
A. Establish strong brand recognition
B. Scale up to meet increasing demand
C. Differentiate the firm's products
D. Horizontal integration
Q:
(p. 256) For success in growth industries, business strategies require which of these features?
A. Ability to rapidly improve product qualities and performance features
B. Ability to differentiate the firm's products from competitors entering the market
C. Emphasis on process innovation that permits low-cost product design, manufacturing methods and distribution synergy
D. Gradually harvest the business
Q:
(p. 256) Business strategies require all of these EXCEPT which feature for success in emerging industry setting?
A. Shape the industry's structure
B. Rapidly improve product quality
C. Strong product design skills
D. Forecast future competitors
Q:
(p. 256) For success in emerging industry setting, business strategies require which of these features?
A. Ability to rapidly improve product qualities and performance features
B. Ability to differentiate the firm's products from competitors entering the market
C. Emphasis on process innovation that permits low-cost product design, manufacturing methods and distribution synergy
D. Gradually harvest the business
Q:
(p. 255) Which key functional area and which strategy focus are critical at the decline stage of the industry evolution?
A. Engineering; market penetration
B. Sales; consumer loyalty and market share
C. Production; successor products
D. Finance; maximum investment recovery
Q:
(p. 255) Which key functional area and which strategy focus are critical at the maturity stage of industry evolution?
A. Production; successor products
B. Engineering; market penetration
C. Sales; consumer loyalty and market share
D. Finance; maximum investment recovery
Q:
(p. 255) Which key functional area and which strategy focus are critical at the growth stage of industry evolution?
A. Production; successor products
B. Engineering; market penetration
C. Sales; consumer loyalty and market share
D. Finance; maximum investment recovery
Q:
(p. 255) Which key functional area is critical at the introduction stage of industry evolution and which strategy should be focused on?
A. Production; successor products
B. Engineering; market penetration
C. Sales; consumer loyalty and market share
D. Finance; maximum investment recovery
Q:
(p. 255) Ability to reduce costs, develop variants and differentiate products represent the maturity stage of industry evolution capabilities which functional area?
A. Engineering and R&D
B. Marketing
C. Production operations
D. Personnel
Q:
(p. 255) Skill in quality and new feature development; ability to start developing successor product represent engineering and R&D capabilities at which stage of the industry evolution?
A. Decline
B. Introduction
C. Growth
D. Maturity
Q:
(p. 255) Which of these personnel capabilities match the maturity stage of the industry evolution?
A. Capacity to reduce and relocate personnel
B. Ability to cost effectively, reduce workforce, increase efficiency
C. Flexibility in staffing and training new management
D. Existence of an ability to add skilled personnel; motivated and loyal workforce
Q:
(p. 255) Existence of an ability to add skilled personnel motivated and loyal workforce represent personnel capabilities at which stage of the industry evolution?
A. Maturity
B. Decline
C. Introduction
D. Growth
Q:
(p. 254) Ability to reuse or liquidate unneeded equipment; advantage in cost facilities; control system accuracy; and streamlined management control represent decline stage of industry evolution for which functional area?
A. Marketing
B. Production operations
C. Finance
D. Engineering and R&D
Q:
(p. 254) Resources to support high net cash overflow and initial losses and ability to use leverage effectively represent finance area's capability at which stage of industry evolution?
A. Growth
B. Introduction
C. Decline
D. Maturity
Q:
(p. 254) Ability to expand capacity effectively, limit number of designs and develop standards represents the introduction stage of industry evolution for which function?
A. Production operations
B. Marketing
C. Finance
D. R & D
Q:
(p. 254) Which of these represent marketing capabilities at the decline state of industry evolution?
A. Skills in aggressively promoting products to new markets and holding existing markets and pricing flexibility
B. Ability to establish brand recognition, find niche, reduce price, solidity strong distribution relations and develop new channels
C. Cost effective means of efficient access to selected channels and markets and strong customer loyalty or dependence
D. Resources/skills to create widespread awareness and find acceptance from customers; advantageous access to distribution
Q:
(p. 254) Which of these represent marketing capabilities at the growth stage of industry evolution?
A. Skills in aggressively promoting products to new markets and holding existing markets and pricing flexibility
B. Ability to establish brand recognition, find niche, reduce price, solidity strong distribution relations and develop new channels
C. Cost effective means of efficient access to selected channels and markets and strong customer loyalty or dependence
D. Resources/skills to create widespread awareness and find acceptance from customers; advantageous access to distribution
Q:
(p. 254) Production operations' capabilities to improve product and reduce costs and ability to share or reduce capacity is associated with which of the strategies of industry growth?
A. Growth
B. Decline
C. Introduction
D. Maturity
Q:
(p. 254) Which of these is NOT a stage of industry evolution?
A. Decline
B. Growth
C. Merge
D. Introduction
Q:
(p. 255) The absence of rules in emerging industries presents both a _____ and a(n) _____
A. risk, opportunity
B. strength, weakness
C. problem, risk
D. strength, risk
Q:
(p. 255) From the standpoint of strategy formulation, the essential characteristics of an emerging industry is that
A. There are no "rules of the game"
B. It is highly regulated industry
C. The industry lifecycle essentially jumps from introduction directly to decline
D. There are way too many entry barriers
Q:
(p. 255) Business strategies in emerging industries must be concerned with which of the following characteristics?
A. Proprietary technology in the pioneering firms with moderate to high amounts of competitive uncertainty
B. Low initial costs with hefty cost increases through time
C. Many entry barriers
D. Easy to obtain raw materials
Q:
(p. 255) An industry that has growing sales across all the companies in the industry based on growing demand for the relatively new products, technologies and/or services made available by the firms participating in this industry is called a(n) _______ industry.
A. Mature
B. Emerging
C. Focus
D. Low-cost
Q:
(p. 252) When a firm competes in a geographically defined specific area, it is using a(n) _______ strategy.
A. market focus
B. Cost
C. Differentiation
D. Integration
Q:
(p. 252) The extent to which a business concentrates on a narrowly defined market, it is called a(n) __________ strategy.
A. Integration
B. Market focus
C. Formula facility
D. Tightly managed decentralization
Q:
(p. 251) The use of preapproved online suppliers into production is a feature of which strategy?
A. Speed-based
B. Cost
C. Differentiation
D. Integration
Q:
(p. 251) Speed-based competitive advantage can be created around all of these activities EXCEPT:
A. Customer responsiveness
B. Product development cycles
C. Information sharing and technology
D. Brand loyalty
Q:
(p. 251) Organizational requirements to support and sustain rapid response activities include which of these?
A. Strong delegation to operating personnel
B. Subjective measurements and incentives
C. Amenities to attract highly skilled labor and creative people
D. Frequent, detained control reports
Q:
(p. 251) All of the following are skills or resources that foster rapid response (speed) EXCEPT:
A. Process engineering skills
B. Excellent inbound and outbound logistics
C. High level of automation
D. Creative talent and flair
Q:
(p. 249) Speed-based strategies are a form of
A. differentiation
B. cost leadership
C. market focus
D. Integration
Q:
(p. 249) Business strategies built around functional capabilities and activities that allow the company to meet customer needs more rapidly than its main competitors are referred to as __________ strategies.
A. Speed-based
B. Cost
C. Differentiation
D. Integration
Q:
(p. 248) A key risk associated with a differentiation strategy is:
The cost difference between low cost competitors & the differentiated business is too high
C. Obsessive cost cutting can shrink other competitive advantages
D. Cost differences often decline over time
Q:
(p. 247) Organizational requirements to support and sustain differentiation activities include which of these?
A. Frequent, detailed control reports
B. Structured organization and responsibilities
C. Tradition of closeness to key customers
D. Incentives based on meeting strict, quantitative targets
Q:
(p. 247) Common resources, skills and organizational requirements to support a "differentiation" generic strategy include all but:
A. Strong marketing abilities
B. Product engineering
C. Strong coordination among R&D, product development and marketing
D. Low-cost distribution system
Q:
(p. 247) Skills and resources that foster differentiation are:
A. Product engineering skills
B. Sustained capital investment and access to capital
C. Minimal investment in product engineering and basic research
D. Products designed for ease of delivery
Q:
(p. 247) Skills and resources that foster differentiation are:
A. Strong marketing skills
B. Sustained capital investment and access to capital
C. Minimal investment in product engineering and basic research
D. Products designed for ease of delivery
Q:
(p. 247) Which of the following is NOT a skill or a resource that fosters differentiation?
A. Process engineering skills
B. Strong cooperation for channels
C. Product engineering
D. Creative talent and flair
Q:
(p. 246) Rivalry is ____ when a business successfully differentiates itself.
A. increased
B. reduced
C. strengthened
D. confronted
Q:
(p. 246) __________ requires that the business have substantial advantages that allow it to provide buyers with something uniquely valuable to them.
A. Cost strategy
B. Integration
C. Differentiation
D. Speed-based strategy
Q:
(p. 245) Cost differences often ____ over time.
A. increase
B. decline
C. strengthen
D. have no effect on
Q:
(p. 245) Low-cost advantages should ______ the attractiveness of substitute products.
A. increase
B. lessen
C. strengthen
D. have no effect on
Q:
(p. 244) Truly low-cost advantages ______ price competition.
A. increase
B. lessen
C. strengthen
D. have no effect on