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Business Development
Q:
(p. 222) The type of strategy typically accomplished either by cost reduction and/or asset reduction is known as:
A. Market development
B. Innovation
C. Liquidation
D. Turnaround
Q:
(p. 222) According to researchers, the grand strategies of retrenchment/turnaround are most often accomplished in extreme circumstances through which of the following?
A. Cost reductions
B. Asset reductions
C. Changes in top management
D. Diversification
Q:
(p. 221) Concentric diversification may be undertaken as a grand strategy because the acquiring firm wishes to:
A. Acquire an investment opportunity
B. Sell off unneeded assets quickly
C. Balance or fill out its product line
D. Trim its product line
Q:
(p. 220) The motivations of acquiring firms using diversification strategy include:
A. Steadying the growth rate of the firm
B. Decreasing productivity
C. Increasing stock value of the firm
D. Gaining shareholders
Q:
(p. 220) A spin-off usually indicates:
A. Integration
B. Diversification
C. Joint venture
D. Retrenchment
Q:
(p. 219) With this type of grand strategy, the new businesses selected possess a high degree of compatibility with the current business:
A. Conglomerate diversification
B. Concentric diversification
C. Joint venture
D. Divestiture
Q:
(p. 219) When diversification involves additions of a business related to the firm in terms of technology, markets or products, it involves:
A. Concentrated growth
B. Horizontal integration
C. Concentric diversification
D. Vertical diversification
Q:
(p. 219) If a firm plans to acquire a business because it represents the most promising investment opportunity available, the grand strategy is:
A. Conglomerate diversification
B. Joint venture
C. Concentric diversification
D. Liquidation
Q:
(p. 219) Conglomerate diversification is concerned primarily with:
A. Stock appreciation
B. Product development
C. Market synergy
D. Financial returns
Q:
(p. 219) When the principal or sole consideration of the acquiring firm is the profit pattern of the venture, the grand strategy is usually one of:
A. Innovation
B. Horizontal integration
C. Concentric diversification
D. Conglomerate diversification
Q:
(p. 217) If a shirt manufacturer acquired a chain of men's clothing outlets, this would be an example of:
A. Forward acquisition
B. Backward acquisition
C. Horizontal acquisition D. Conglomerate diversification
Q:
(p. 217) If a donut corporation acquires a flour company, this strategy would be called:
A. Vertical acquisition B. Diversification
C. Conglomeration
D. Joint venture
Q:
(p. 217) The grand strategy involving the acquisition of businesses that supply the firm with inputs such as raw materials is termed:
A. Forward concentric diversification
B. Sequential horizontal integration
C. Backward vertical acquisition
D. Retrenchment
Q:
(p.217) The grand strategy involving the acquisition of businesses that serve as a customer for the firm's outputs, such as warehouses for finished products is called:
A. Backward concentric diversification
B. Pooled horizontal integration
C. Forward vertical acquisition
D. Sequential horizontal integration
Q:
(p. 219) Motivations of acquiring firms include:
A. Decreased stock price
B. Increased market share
C. Different debt/equity ratio
D. Decreased P/E ratio
Q:
(p. 217) If a shirt manufacturer acquires a textile manufacturer, this strategy is called:
A. Backward vertical integration
B. Diversification
C. Joint venture
D. Horizontal acquisition
Q:
(p. 214) The grand strategy that provides access to new markets for a company while at the same time eliminating competitors is termed:
A. Concentric diversification
B. Horizontal acquisition
C. Vertical acquisition
D. Conglomerate diversification
Q:
(p. 215) If Cola Creations acquires Seltzer Spirit Co., this merger would describe what type of strategy?
A. Joint venture
B. Horizontal acquisition
C. Vertical acquisition
D. Divestiture
Q:
(p. 217) If a textile producer acquires a shirt manufacturer, this is called:
A. Vertical horizontal acquisition
B. Backward horizontal acquisition
C. Backward vertical acquisition
D. Forward vertical acquisition
Q:
(p.214) When the long-term strategy of a firm is based on growth through the acquisition of one or more similar businesses operating at the same stage of the production-marketing chain, this is called:
A. Vertical integration
B. Conglomeration
C. Horizontal acquisition
D. Liquidation
Q:
(p. 214) The acquisition of one or more businesses operating at the same stage of the production-marketing chain is an example of:
A. Market development
B. Product development
C. Innovation
D. Horizontal acquisition
Q:
(p. 214) Few innovative ideas prove to be profitable because of:
A. Low development costs
B. Low pre-marketing costs
C. High research costs
D. High post-marketing costs
Q:
(p. 213) Creating a new-product life cycle is the underlying philosophy of a grand strategy of:
A. Product development
B. Innovation
C. Horizontal integration
D. Market development
Q:
(p. 211) Improving the way a detergent smells is an example of:
A. Market expansion
B. Product development
C. Product innovation
D. Product extinction
Q:
(p. 211) A "new and improved" product describes:
A. Diversification
B. Concentrated growth
C. Product development
D. Market development
Q:
(p. 209) _______ strategy allows firms to leverage some of their traditional strengths by identifying new uses of existing products and by finding new demographic or psychographic markets.
A. Innovation
B. Product development
C. Market development
D. Horizontal integration
Q:
(p. 210) Methods to develop new product features include:
A. Inverse
B. Modify
C. Review
D. Retreat
Q:
(p. 210) Attracting competitors' customers encompasses:
A. Decreasing promotional efforts
B. Establishing sharper brand similarities
C. Initiating price cuts
D. Increasing purchase size
Q:
(p. 209) Specific approaches to the grand strategy of market development include which of the following?
A. Entering additional channels of distribution
B. Attracting competitors' customers
C. Reducing prices
D. Attracting current non-users
Q:
(p. 210) Market development encompasses attracting other market segments. This includes:
A. Increasing promotional effort
B. Including trial use
C. Advertising in other media
D. Opening more branches in the same city
Q:
(p. 209) The grand strategy commonly ranked second in low risk and cost is:
A. Market development
B. Vertical integration
C. Joint venture
D. Concentrated growth
Q:
(p. 210) Specific options under the concentration grand strategy include which of the following?
A. Opening additional geographic markets
B. Increasing present customer's rate of usage
C. Developing new products
D. Selling to a differentiated customer
Q:
(p. 210) Concentration encompasses increasing present customer rate of usage. This includes:
A. Increasing size of purchase
B. Pricing up or down
C. Developing quality variations
D. Marketing in new channels
Q:
(p. 209) Marketing present products, often with only cosmetic modification, to customers in related market areas describes:
A. Diversification
B. Concentrated growth
C. Product development
D. Market development
Q:
(p. 207) Typical risks facing the firm that follow a concentrated growth strategy include:
A. Riskier in stable conditions
B. Extra funds required
C. Faltering markets
D. Defining a broad market correctly
Q:
(p. 207) Under changing conditions, concentrated growth is characterized as:
A. Higher risk
B. Lower risk
C. Decreasing resource needs
D. Lowering revenues
Q:
(p. 207) Under stable conditions, concentrated growth is characterized as:
A. Higher risk
B. Lower risk
C. Increasing resource needs
D. Increasing costs
Q:
(p. 206) The grand strategy in which the firm directs its resources to the profitable growth of a single product, in a single market and with a single technology is termed:
A. Product development
B. Market development
C. Concentrated growth
D. Vertical integration
Q:
(p. 205) Grand strategies are often called:
A. Corporate strategies
B. Coordinate strategies
C. Master strategies
D. Directed action
Q:
(p. 205) Grand strategies are designed to accomplish which of the following?
A. Short-term objectives
B. Long-term goals
C. Short-term goals
D. Long-term objectives
Q:
(p. 206) Firms that focus on a specific product and market combination are utilizing a _______ strategy.
A. Concentrated growth
B. Turnaround
C. Innovation
D. Product development
Q:
(p. 207) Which of the grand strategies is typically lowest in risk?
A. Horizontal integration
B. Concentrated growth
C. Market development
D. Divestiture
Q:
(p. 202) Which of the following is NOT a value discipline?
A. Operational excellence
B. Cost leadership
C. Customer intimacy
D. Product leadership
Q:
(p. 201) Intense supervision of labor is a commonly required skill for which one of Michael Porter generic strategies?
A. Differentiation
B. Market development
C. Product development
D. Low cost leadership
Q:
(p. 200) Striving to create and market unique products for varied customer groups is called:
A. Cost leadership
B. Differentiation
C. Focus
D. Concentrated growth
Q:
(p. 199) A properly constructed Balanced Scorecard is balanced between:
A. Short and long-term measures
B. Stakeholder financial measures
C. Organizational and stakeholder performance perspectives
D. Pricing and packaging of the firm's products
Q:
(p. 200) Which of the following is a generic strategy developed by Michael Porter?
A. Market development
B. Differentiation
C. Liquidation
D. Innovation
Q:
(p. 200) Which one of the following is NOT a perspective found in the Balanced Scorecard?
A. Stakeholder performance
B. Financial performance
C. Customer knowledge
D. Learning and growth
Q:
(p. 200) "To achieve our vision, how will we sustain our ability to change and improve?" is part of which perspective in the Balanced Scorecard?
A. Financial
B. Customer
C. Learning and growth
D. Internal business process
Q:
(p. 197) Which of the following qualities of an objective improves its chances of being attained?
A. Timeliness
B. Flexibility
C. Cost efficiency
D. Ground breaking
Q:
(p. 197) Which of the following is NOT a fundamental criterion for a long-term objective?
A. Acceptable
B. Sustainable
C. Measurable
D. Suitable
Q:
(p. 197) Flexibility is usually increased at the expense of:
A. Reliability
B. Timeliness
C. Specificity
D. Mobility
Q:
(p. 197) Which of the following does NOT describe a good objective?
A. Flexible
B. Acceptable
C. Marketable
D. Achievable
Q:
(p. 197) Safety programs, employee stock option plans and worker representation on management committees are all commonly directed toward achieving which type of long-term objectives?
A. Employee relations
B. Public responsibility
C. Employee development
D. Competitive position
Q:
(p. 197) Establishing objectives for minority training is an example of which type of long-term objective?
A. Competitive position
B. Employee development
C. Social responsibility
D. Productivity
Q:
(p. 197) Larger firms often establish an objective by which to gauge their comparative ability for growth and profitability. This is often stated in terms of:
A. Competitive product line
B. Competitive position
C. Product innovation
D. Competitive edge
Q:
(p. 197) Competitive position as a measure of corporate success is typically measured as:
A. The input-output relationship of the company
B. The earnings per share of the company
C. The company's relative dominance in the marketplace
D. The firm's stock value
Q:
(p. 197) To achieve long-term prosperity, strategic managers commonly establish long-term objectives in seven areas. Which of the following describes one of these areas?
A. Technological leadership
B. Technological innovation
C. Social change
D. Marketing
Q:
(p. 196-197) To achieve long-term prosperity, strategic planners commonly establish objectives in which of the following?
A. Profitability, employee relations and social responsibility
B. Acceptability
C. Flexibility
D. Joint ventures only
Q:
(p. 196-197) Which of the following is NOT a commonly pursued long-term objective as described in the text?
A. Profitability
B. Social responsibility
C. Efficiency
D. Productivity
Q:
(p. 196) Grand strategies provide a comprehensive general approach to guide the organization's:
A. Major actions designed to accomplish long-term objectives
B. Major actions designed to accomplish short-term objectives
C. Operational actions designed to accomplish short-term objectives
D. Operational actions designed to accomplish intermediate term objectives
Q:
(p. 196) Which of the following are intended to provide benchmarks for the evaluation of the company's progress in achieving its aim?
A. Mission
B. Long-term objectives
C. Grand strategies
D. Business policies
Q:
(p. 196) The function of objectives is:
A. To provide a specific statement of the desires of the firm
B. To deal with profitability, growth and survival without specific targets or time frames
C. To provide specific benchmarks for evaluating the company's progress in achieving its aims
D. To enhance stock market optimism
Q:
(p. 196) Objectives should be suited to the broad aims of the organization which are expressed in the statement of the company:
A. Profile
B. Mission
C. Philosophy
D. Goals
Q:
(p. 153) A good fit maximizes a firms _________ and minimizes its ________.
A. strengths and weaknesses; opportunities and threats
B. strengths and opportunities; weaknesses and threats
C. strengths and threats; weaknesses and opportunities
D. strengths and opportunities; opportunities and threats
Q:
(p. 153) What have strategists sought in frameworks besides SWOT for conducting internal analysis?
A. They have sought to get less detail from other frameworks
B. They have sought that the frameworks be more comprehensive
C. They have sought a less generic framework
D. They have sought to better account for internal factors in light of external factors
Q:
(p. 153) SWOT analysis's value and continued use is found in its:
A. Complexity
B. Difficulty
C. Simplicity
D. Short-sighted nature
Q:
(p. 152) The tendency to accept the status quo and disregard signals that change is needed is called:
A. Management myopia
B. Environmental awareness
C. Management long-sightedness
D. Subjective management
Q:
Describe the principal profitability ratios and indicate what each measures.
Q:
What do activity ratios measure? What are the key activity ratios?
Q:
What does the term leverage mean? What are the important leverage ratios?
Q:
Describe what liquidity ratios measure? What are the important liquidity ratios?
Q:
What is the product life cycle? What are its different stages?
Q:
How can a firm compare itself with success factors in the industry?
Q:
What is the purpose of benchmarking? How else can a firm evaluate itself against its industry?
Q:
If a firm wants to chart its progress internally, what method of comparison is appropriate? Describe how this works.
Q:
What is three circles analysis?
Q:
How can the resource-based view be used in internal analysis?
Q:
What are isolating mechanisms? What role do they play in the resource-based view?
Q:
What are the problems created by using activity-based cost accounting?