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Chapter 07 - Long-Term Objectives and Strategies
Chapter 07
Long-Term Objectives and Strategies
Multiple Choice Questions
1. (p. 191) Objectives should be suited to the broad aims of the organization which are expressed
in the statement of the company:
2. (p. 191) The function of objectives is:
3. (p. 191) Which of the following are intended to provide benchmarks for the evaluation of the
company's progress in achieving its aim?
4. (p. 191) Grand strategies provide a comprehensive general approach to guide the
organization's:
5. (p. 191-192) Which of the following is NOT a commonly pursued long-term objective as
described in the text?
6. (p. 191-192) To achieve long-term prosperity, strategic planners commonly establish objectives
in which of the following?
7. (p. 192) To achieve long-term prosperity, strategic managers commonly establish long-term
objectives in seven areas. Which of the following describes one of these areas?
8. (p. 192) Competitive position as a measure of corporate success is typically measured as:
9. (p. 192) Larger firms often establish an objective by which to gauge their comparative ability
for growth and profitability. This is often stated in terms of:
10. (p. 192) Establishing objectives for minority training is an example of which type of long-
term objective?
11. (p. 192) Safety programs, employee stock option plans and worker representation on
management committees are all commonly directed toward achieving which type of long-term
objectives?
12. (p. 193) Which of the following does NOT describe a good objective?
13. (p. 193) Flexibility is usually increased at the expense of:
14. (p. 193) Which of the following is NOT a fundamental criterion for a long-term objective?
15. (p. 193) Which of the following qualities of an objective improves its chances of being
attained?
16. (p. 194) "To achieve our vision, how will we sustain our ability to change and improve?" is
part of which perspective in the Balanced Scorecard?
17. (p. 194) Which one of the following is NOT a perspective found in the Balanced Scorecard?
18. (p. 195) Which of the following is a generic strategy developed by Michael Porter?
19. (p. 195) A properly constructed Balanced Scorecard is balanced between:
20. (p. 195) Striving to create and market unique products for varied customer groups is called:
21. (p. 196) Intense supervision of labor is a commonly required skill for which one of Michael
Porter generic strategies?
22. (p. 198) Which of the following is NOT a value discipline?
23. (p. 202) Which of the grand strategies is typically lowest in risk?
24. (p. 201) Firms that focus on a specific product and market combination are utilizing a
_______ strategy.
25. (p. 200) Grand strategies are designed to accomplish which of the following?
26. (p. 200) Grand strategies are often called:
27. (p. 201) 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:
28. (p. 202) Under stable conditions, concentrated growth is characterized as:
29. (p. 202) Under changing conditions, concentrated growth is characterized as:
30. (p. 202) Typical risks facing the firm that follow a concentrated growth strategy include:
31. (p. 204) Marketing present products, often with only cosmetic modification, to customers in
related market areas describes:
32. (p. 205) Concentration encompasses increasing present customer rate of usage. This
includes:
33. (p. 205) Specific options under the concentration grand strategy include which of the
following?
34. (p. 204) The grand strategy commonly ranked second in low risk and cost is:
35. (p. 205) Market development encompasses attracting other market segments. This includes:
36. (p. 205) Specific approaches to the grand strategy of market development include which of
the following?
37. (p. 205) Attracting competitors' customers encompasses:
38. (p. 205) Methods to develop new product features include:
39. (p. 204) _______ strategy allows firms to leverage some of their traditional strengths by
identifying new uses of existing products and by finding new demographic or psycho graphic
markets.
40. (p. 206) A "new and improved" product describes:
41. (p. 206) Improving the way a detergent smells is an example of:
42. (p. 207) Creating a new-product life cycle is the underlying philosophy of a grand strategy
of:
43. (p. 207) Few innovative ideas prove to be profitable because of:
44. (p. 207) The acquisition of one or more businesses operating at the same stage of the
production-marketing chain is an example of:
45. (p.207) 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:
46. (p. 210) If a textile producer acquires a shirt manufacturer, this is called:
47. (p. 207) If Cola Creations acquires Seltzer Spirit Co., this merger would describe what type
of strategy?
48. (p. 207) The grand strategy that provides access to new markets for a company while at the
same time eliminating competitors is termed:
49. (p. 210) If a shirt manufacturer acquires a textile manufacturer, this strategy is called:
50. (p. 212) Motivations of acquiring firms include:
51. (p.210) 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:
