Q&A Hero

Q: Your roommate wants to learn about organization charts. You can tell her that an organization chart can tell you all of the following about an organization EXCEPT its: a) division of work. b) formal structure. c) reporting relationships. d) control mechanisms.

Q: A chart that describes a company's formal structure is called a(n): a) PERT chart. b) employee chart. c) organization chart. d) Pareto chart.

Q: Organization charts provide all of the following EXCEPT: a) a clear division of work. b) diagrams of reporting relationships among employees. c) job titles of employees. d) unofficial relationships among employees.

Q: The __________ allocates jobs to different people and groups. a) organization chart b) division of labor c) shadow organization d) informal structure

Q: A(n) __________ graphically describes the arrangement of work positions within an organization. a) informal structure b) PERT chart c) organization chart d) business strategy

Q: An organizational structure consists of all the following EXCEPT: a) a system of tasks. b) reporting relationships. c) a management mission. d) communication linkages.

Q: Which of the following management functions entails the process of arranging people and resources to work toward a common goal? a) Controlling b) Leading c) Planning d) Organizing

Q: Discuss how the classifications of the Boston Consulting Group matrix relate to industry growth, market share, and business strategy.

Q: Name the five forces identified by Porter's five forces model and describe their relation to an organization's internal and external environments.

Q: Define the three levels of strategy that can be identified in most large organizations? Mention their relationship to organizational structure, their purpose, and their strategic questions.

Q: What is the difference between a globalization strategy and a transnational strategy?

Q: Distinguish between a competitive advantage and a sustainable competitive advantage.

Q: How does a differentiation strategy help in gaining competitive advantage?

Q: What is restructuring?

Q: __________ makes sure strategies are well implemented and that poor strategies are scrapped or changed.

Q: __________ is the capability to inspire people to successfully engage in a process of continuous change, performance enhancement, and implementation of a firm's goals.

Q: According to the BCG Matrix, __________ produce large profits and a strong cash flow, but with little upside potential.

Q: A(n) __________ strategy seeks the lowest costs of operations within a special market segment.

Q: Special strengths of an organization that give the organization a competitive advantage are called __________________.

Q: The process of putting strategies into action is called strategic _____________.

Q: __________ is the strategic use of the Internet to engage customers and potential customers in providing opinions and suggestions on products and their designs.

Q: The international business strategy that adopts standard products and advertising to use worldwide is called a(n) __________ strategy.

Q: When business owners sell off parts of their organization to refocus attention on core business areas it is called a(n) _________.

Q: __________ entails cutting the size of your organization and reducing the workforce.

Q: When your company expands into new areas of business it is called ________.

Q: Strategies that guide the activities of specific areas in implementing the organizational-level strategies are called ________ strategies.

Q: A(n) __________ is a comprehensive action plan that identifies long-term direction for an organization and guides resource utilization to accomplish its goals.

Q: Strategic leadership inspires people to implement organizational strategies.

Q: Cash cows are the business units that have high market shares in high-growth markets in the BCG matrix.

Q: A focused differentiation strategy is when you compete by selling products at lower prices than your competitors.

Q: A SWOT analysis includes a detailed examination of an organization's strengths and weaknesses.

Q: The process of strategic management focuses only on developing strategies.

Q: The infomediary model of web-based business brings buyers and sellers together for online business transactions and takes a percentage from the sales.

Q: The strategy of working with rivals on projects of mutual benefit is called crowdsourcing.

Q: The advantage of growth through concentration is that you are growing in an area that you know and, presumably, have expertise.

Q: A functional strategy provides long-term direction for the total enterprise.

Q: The key to having a sustainable competitive advantage is to operate in a way that is difficult to imitate.

Q: A strategic leader must do all of the following EXCEPT: a) allow members to grow complacent after success. b) implement and control organizational strategies. c) inspire people to engage in the process of continuous change. d) create a sense of urgency.

Q: If Toddler Toys Inc. has products that the Boston Consulting Group would identify as dogs, which of the following would be the best strategy for Toddler Toys? a) High growth b) Retrenchment c) Low growth d) No growth

Q: Which of the following is NOT indicative of a question mark in the BCG matrix? a) Do not generate much profit b) Low market shares, high-growth market c) High market shares, low-growth market d) Difficult for strategic decision making

Q: Which of the following analyzes business opportunities according to market growth rate and market share? a) SWOT analysis b) BCG Matrix c) GE Matrix d) PEST analysis

Q: A __________ seeks the lowest costs of operations within a special market segment. a) multidomestic strategy b) focused differentiation strategy c) focused cost leadership strategy d) retrenchment strategy

Q: When ABC Manufacturers focuses on offering products that are unique compared to its competitors' products, they are focusing on a(n) _________ strategy. a) integrated b) cost leadership c) differentiation d) diversification

Q: According to Michael Porter, industry attractiveness can be identified based on the five forces that include: a) profitability, market share, workforce quality, innovativeness, and social responsibility. b) cost efficiency, product quality, service quality, workforce quality, and innovativeness. c) differentiation, cost leadership, focused differentiation, focused cost, and integration. d) competitors, new entrants, suppliers, customers, and substitutes.

Q: A special strength of an organization that gives it a competitive advantage can be called a(n) __________. a) unfair advantage b) differential strategy c) core competency d) differential advantage

Q: In a SWOT analysis, outdated facilities and obsolete technologies will be considered as __________. a) threats b) opportunities c) weaknesses d) strengths

Q: "S" in the term SWOT analysis refers to: a) strengths. b) standards. c) social. d) systems.

Q: __________ is the process of crafting strategy to fit mission and strategic intent, objectives, and environmental conditions. a) Co-opetition b) Liquidation c) Strategy implementation d) Strategy formulation

Q: Strategic management includes strategy __________ and strategy __________. a) negotiation; implementation b) implementation; direction c) formulation; implementation d) formulation; review

Q: Which of the following terms refers to the process of formulating and implementing strategies to accomplish long-term goals and maintain a competitive advantage? a) Strategic controlling b) Strategic management c) Globalization d) Sustainability

Q: Which of the following strategies uses information technology and the Internet to link organizations vertically in supply chains? a) B2C business strategies b) P2P business strategies c) B2G business strategies d) B2B business strategies

Q: The electronic version of the basic retail strategy of selling directly to customers is known as a __________. a) C2B business strategy b) B2C business strategy c) B2G business strategy d) B2B business strategy

Q: The __________ model of web-based business involves providing free listings from online merchants for directing potential customers to them. a) advertising b) brokerage c) referral d) subscription

Q: Identify the web-based business model that provides a free service while collecting information on users and selling it to other businesses. a) Advertising model b) Infomediary model c) Referral model d) Freemium model

Q: Which of the following web-based business models provides a meeting point sold by subscription or supported by advertising? a) Advertising model b) Brokerage model c) Community model d) Freemium model

Q: Garden Tools Inc. uses the Internet to market their products and gain competitive advantage. Garden Tools is employing a(n) __________. a) communication strategy b) co-opetition strategy c) e-business strategy d) multidomestic strategy

Q: __________ is the strategy of working with rivals on projects of mutual benefit. a) Competition b) Collusion c) Co-opetition d) Restructuring

Q: Two companies join together in partnership to pursue an area of mutual interest. This is called a(n) __________. a) acquisition b) downsizing c) strategic alliance d) divestiture

Q: Which of the following strategies integrates global operations without having a strong national identity? a) Multidomestic strategy b) Globalization strategy c) Diversification strategy d) Transnational strategy

Q: A __________ strategy customizes products and advertising to the culture of the local markets into which they are sold. a) multidomestic strategy b) globalization strategy c) diversification strategy d) transnational strategy

Q: A __________ views the world as one market and uses standardized products and advertising worldwide. a) multidomestic strategy b) globalization strategy c) diversification strategy d) transnational strategy

Q: __________ protects an insolvent firm from creditors during a period of reorganization to restore profitability. a) Divestiture b) Downsizing c) Backward integration d) Chapter 11 bankruptcy

Q: The retrenchment strategy that involves selling off parts of an organization to refocus attention on core business areas is called __________. a) liquidation b) downsizing c) diversification d) divestiture

Q: When an organization reduces the size of its existing operations, it is called __________. a) divestiture b) liquidation c) downsizing d) diversification

Q: Which of the following statements is true about restructuring? a) It occurs when a business closes and sells its assets to pay creditors. b) It reduces the scale or mix of operations. c) It is done by acquiring suppliers or distributors. d) It involves expansion of an organization's current operations.

Q: When a company closes and sells its assets in order to pay its debts, it is called __________. a) divestiture b) liquidation c) diversification d) restructuring

Q: Which of the following is NOT a retrenchment strategy? a) Diversification b) Liquidation c) Restructuring d) Divestiture

Q: A strategy with the objective of correcting performance difficulties in a business through radical changes to current operations is called a _________ strategy. a) co-opetition b) growth c) status quo d) retrenchment

Q: Both Coca-Cola and PepsiCo have pursued __________ by purchasing some of their major bottlers. a) forward vertical integration b) backward vertical integration c) forward horizontal integration d) backward horizontal integration

Q: The riskiest growth strategy is through __________. a) vertical integration b) unrelated diversification c) related diversification d) backward integration

Q: Orange International is expanding by acquiring suppliers and distributors. This is called growth through __________. a) diversification b) vertical integration c) retrenchment d) globalization

Q: When a company expands by entering new business areas, it is called growth through __________. a) diversification b) vertical integration c) retrenchment d) globalization

Q: When a company expands in its existing markets, it is called growth through __________. a) retrenchment b) diversification c) concentration d) globalization

Q: All of the following are growth strategies EXCEPT: a) concentration. b) diversification. c) vertical integration. d) restructuring.

Q: A strategy for expanding an organization's current operations is called a __________. a) restructuring strategy b) stability strategy c) retrenchment strategy d) growth strategy

Q: Which of the following is an example of a strategic question for a functional strategy? a) "How can we best utilize the marketing department to support implementation of the business strategy?" b) "What kind of product or service mix should we have?" c) "How are we going to compete for customers within this this industry and in this market?" d) "In what industries and markets should the corporation compete in?"

Q: Which of the following is an example of a strategic question at the business strategy level? a) "How are we going to compete for customers in a competitive market?" b) "What is our role in supporting engineering?" c) "How many divisions should we have?" d) "In what industries and markets should the corporation compete in?"

Q: A strategy that guides activities within a specific area of operations is called a(n) ____________ strategy. a) business b) functional c) corporate d) employee

Q: A strategy that identifies how a division or business unit will compete in its product or service domain is called a __________ strategy. a) corporate b) middle-management c) business d) bottom-level

Q: Which of these is an example of a strategic question at the corporate strategy level? a) "What should our next product be?" b) "How will we price our newest product?" c) "Should we set up more sales offices?" d) "In what industries and markets should we compete?"