Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
42. In a SWOT analysis, outdated facilities and obsolete technologies will be considered as
__________.
a) threats
b) opportunities
c) weaknesses
d) strengths
43. 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
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
44. 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.
45. 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
46. 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
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
47. 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
48. 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
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
49. 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
50. 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.
True/False
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
51. The key to having a sustainable competitive advantage is to operate in a way that is difficult
to imitate.
52. A functional strategy provides long-term direction for the total enterprise.
53. The advantage of growth through concentration is that you are growing in an area that you
know and, presumably, have expertise.
54. The strategy of working with rivals on projects of mutual benefit is called crowdsourcing.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
55. The infomediary model of web-based business brings buyers and sellers together for online
business transactions and takes a percentage from the sales.
56. The process of strategic management focuses only on developing strategies.
57. A SWOT analysis includes a detailed examination of an organization’s strengths and
weaknesses.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
58. A focused differentiation strategy is when you compete by selling products at lower prices
than your competitors.
59. Cash cows are the business units that have high market shares in high-growth markets in the
BCG matrix.
60. Strategic leadership inspires people to implement organizational strategies.
Fill-in
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
61. A(n) __________ is a comprehensive action plan that identifies long-term direction for an
organization and guides resource utilization to accomplish its goals.
62. Strategies that guide the activities of specific areas in implementing the organizational-level
strategies are called ________ strategies.
63. When your company expands into new areas of business it is called ________.
64. __________ entails cutting the size of your organization and reducing the workforce.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
65. When business owners sell off parts of their organization to refocus attention on core
business areas it is called a(n) _________.
66. The international business strategy that adopts standard products and advertising to use
worldwide is called a(n) __________ strategy.
67. __________ is the strategic use of the Internet to engage customers and potential customers
in providing opinions and suggestions on products and their designs.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
68. The process of putting strategies into action is called strategic _____________.
69. Special strengths of an organization that give the organization a competitive advantage are
called __________________.
70. A(n) __________ strategy seeks the lowest costs of operations within a special market
segment.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
71. According to the BCG Matrix, __________ produce large profits and a strong cash flow, but
with little upside potential.
72. __________ is the capability to inspire people to successfully engage in a process of
continuous change, performance enhancement, and implementation of a firm’s goals.
73. __________ makes sure strategies are well implemented and that poor strategies are scrapped
or changed.
Essay
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
74. What is restructuring?
75. How does a differentiation strategy help in gaining competitive advantage?
76. Distinguish between a competitive advantage and a sustainable competitive advantage.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
77. What is the difference between a globalization strategy and a transnational strategy?
78. 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.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
79. Name the five forces identified by Porter’s five forces model and describe their relation to an
organization’s internal and external environments.
80. Discuss how the classifications of the Boston Consulting Group matrix relate to industry
growth, market share, and business strategy.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank