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a.
Strategy formulation
b.
Strategy coordination
c.
Strategy execution
d.
Strategy control
e.
Strategy planning
66. Which of the following refers to the planning and decision making that lead to the establishment of the organization's
goals and of a specific strategic plan?
a.
Strategy formulation
b.
Strategy implementation
c.
Strategy coordination
d.
Strategy control
e.
SWOT
67. Fred has been assigned to conduct a SWOT analysis for his organization, Acme, Inc. As part of this assignment, Fred
will:
a.
conduct an external wage survey.
b.
search for the strengths, weaknesses, opportunities, and threats that impact his firm.
c.
choose a grand strategy for his firm.
d.
do a cost/benefit analysis.
e.
develop a mission.
68. Techniques used to monitor external environments include:
a.
hiring scanning organizations.
b.
hiring the competitive intelligence professionals.
c.
government reports.
d.
professional journals.
e.
all of these.
69. Classy Clay has extremely creative employees who, in the opinion of the organization, keep the company ahead of the
competition. The creativity of these employees would be classified as a(n) _____.
a.
internal weakness
b.
external opportunity
c.
external strength
d.
internal strength
e.
neutral factor
70. Paramount, Inc. is particularly concerned about pending legislation in Congress that would further regulate their
organization. This legislation would be classified as a(n) _____.
a.
external opportunity
b.
internal strength
c.
external threat
d.
external weakness
e.
congressional chaos
71. Sherri has been asked to participate on a cross-functional task force that is charged with performing an audit checklist
for her advertising firm. The task force will analyze organizational strengths and weaknesses as they apply to the firm.
Sherri’s task is to analyze management quality, staff quality, degree of centralization, and organizational charts. This level
of analysis pertains to which area of the audit?
a.
Management and organization
b.
Marketing
c.
Human resources
d.
Research and development
e.
Production
72. Where does the information about opportunities and threats comes from?
a.
An analysis of the organization's internal environment
b.
A department by department study of the organization
c.
Scanning the external environments
d.
Employee grievances
e.
Financial ratios of the organization
73. What type of organizational unit has a unique business mission, product line, competitors, and markets relative to
other units in the same corporation?
a.
Product unit
b.
Functional unit
c.
Strategic business unit
d.
Operational unit
e.
Business consulting group unit
74. How business units and product lines fit together in a logical way is the essence of:
a.
business-level strategy.
b.
portfolio strategy.
c.
competitive strategy.
d.
financial strategy.
e.
functional strategy.
75. Gatekeep Utilities is a subsidiary of GW Enterprises. Gatekeep has a mission and product line that is unique from
GW. Gatekeep’s competitors are also very different from those of its parent, and the subsidiary markets to a very different
group of customers. As such, Gatekeep can be described as a(n) _____.
a.
product unit
b.
functional unit
c.
operational unit
d.
strategic business unit
e.
boston consulting group unit
76. The BCG matrix organizes along which of the following dimensions?
a.
Market share and profit
b.
Sales and market share
c.
Business growth rate and market share
d.
Business growth rate and profit
e.
Sales and profits
77. Double Click, Inc. has a number of strategic business units. Their hand-held computer unit has a large market share in
this rapidly growing industry. Their hand-held computer business would be classified as:
a.
a dog.
b.
a star.
c.
a question mark.
d.
a cash cow.
e.
stuck in the middle.
78. Which of these is true about the cash cow?
a.
It generates tremendous profits in a rapidly growing industry.
b.
It has a small market share in a rapidly growing industry.
c.
It has a small market share in a slow growth industry.
d.
It has a large market share in a slow growth industry.
e.
It is generally a dead business that should be divested.
79. The star has a:
a.
large market share in a rapidly growing industry.
b.
large market share in a slow growth industry.
c.
small market share in a rapidly growing industry.
d.
small share of a slow growth market.
e.
moderate market share in a slow growth industry.
80. Which of the following portfolio categories is made up of poor performers who command only a small share of a slow
growth market?
a.
Star
b.
Cash cow
c.
Question mark
d.
Dog
e.
Cat
81. The question mark has a:
a.
large market share in a rapidly growing industry.
b.
large market share in a slow growth industry.
c.
small market share in a rapidly growing industry.
d.
small share of a slow growth market.
e.
moderate market share in a slow growth industry.
82. Which of these is true about the dog division?
a.
It has a large market share in a rapidly growing industry.
b.
It has a large market share in a slow growth industry.
c.
It has a small market share in a rapidly growing industry.
d.
It has a small share of a slow growth market.
e.
It has a moderate market share in a rapidly growing industry.
83. Gillette operates numerous strategic business units. Most of its units in the personal care division have low market
share but high business growth. These units are classified as _____.
a.
dogs
b.
question marks
c.
stars
d.
cash cows
e.
none of these
84. According to the BCG Matrix, which of the following exists in a mature, slow-growth industry, but is a dominant
business in the industry, with a large market share?
a.
Question mark
b.
Asterisk
c.
Dog
d.
Star
e.
Cash cow
85. When an organization expands into a totally new line of business, it is implementing a strategy of:
a.
Related diversification
b.
Unrelated diversification
c.
Cross-functional diversification
d.
Product line diversification
e.
Industry diversification
86. Semway, a regional bank, recently announced that it would soon begin offering financial planning services. This is an
example of which of these?
a.
Related diversification
b.
Unrelated diversification
c.
Cross-functional diversification
d.
Product line diversification
e.
Industry diversification
87. The purpose of _____ is to expand the firm’s business operations to produce new kinds of valuable products and
services?
a.
retrenchment
b.
diversification
c.
liquidation
d.
cash cow
e.
internal growth
88. Which of the following strategies refers to moving into a new business that is related to the company's existing
business activities?
a.
Horizontal integration
b.
Vertical integration
c.
Unrelated diversification
d.
Related diversification
e.
Strategic partnership
89. All of the following are Porter's competitive forces except:
a.
differentiation.
b.
bargaining power of buyers.
c.
bargaining power of suppliers.
d.
threat of substitute products.
e.
potential new entrants.
90. Which of the following is NOT one of Porter's competitive forces?
a.
Potential new entrants
b.
Bargaining power of suppliers
c.
Bargaining power of stockholders
d.
Bargaining power of customers
e.
Rivalry among competitors
91. Which of the following strategies involve an attempt to distinguish the firm's products or services from others in the
industry?
a.
Cost leadership
b.
Differentiation
c.
Focus
d.
Internal growth
e.
Liquidation
92. Which strategy can be profitable for an organization when customers are loyal and willing to pay high prices?
a.
Focus
b.
Globalization
c.
Overall cost leadership
d.
Differentiation
e.
Liquidation
93. The _____ strategy involves seeking efficient facilities, cutting costs and using tight cost controls to be more efficient
than competitors.
a.
cost leadership
b.
differentiation
c.
focus
d.
internal growth
e.
liquidation
94. The human resource department at Paula's Powerwheels is implementing a number of functional level strategies.
These strategies include focusing on ways to retain and develop a stable work force and ways to improve efficiency in the
organization. These functional-level strategies are consistent with which of the following strategies?
a.
Cost leadership
b.
Differentiation
c.
New product development
d.
New market development
e.
Divestiture
95. With a(n) _____ strategy, the organization concentrates on a specific regional market or buyer group.
a.
cost leadership
b.
differentiation
c.
focus
d.
internal growth
e.
liquidation
96. Mingles, Inc. concentrates its efforts on its target market of 18 to 25 year olds. It is using a(n) _____ strategy.
a.
focus
b.
differentiation
c.
cost leadership
d.
multidomestic
e.
universal strategy
97. General Products Inc. is a small clothing designer and manufacturer located in the United States. A vast majority of
the company’s revenues comes from U.S. sales, although about ten percent of the company’s revenue come from sales to
Canada. General Products Inc. can best be described as using which global corporate strategy?
a.
Globalization strategy
b.
Multidomestic strategy
c.
Export strategy
d.
Transnational strategy
e.
Domestic strategy
98. FLY Industries is a global conglomerate company headquartered in the United States that does business in over fifty
countries. The company seeks to balance global efficiencies and local responsiveness by hiring locally as well as from
home. It can best be described as using which global corporate strategy?
a.
Globalization strategy
b.
Multidomestic strategy
c.
Export strategy
d.
Transnational strategy
e.
Domestic strategy
99. If ABC International has standardized its product line throughout the world it is pursuing a:
a.
multidomestic strategy.
b.
retrenchment strategy.
c.
diversity strategy.
d.
globalization strategy.
e.
liquidation strategy.
100. The assumption that a single global market exists would lead to a:
a.
globalization strategy.
b.
multidomestic strategy.
c.
diversity strategy.
d.
domestic strategy.
e.
liquidation strategy.
101. Which of the following strategies would be appropriate when the need for both national responsiveness and global
integration is low?
a.
Globalization
b.
Multidomestic
c.
Export
d.
Transnational
e.
Import
102. _____ refers to the modification of product design and advertising strategies to suit the specific needs of individual
countries.
a.
Domestic strategy
b.
Global strategy
c.
Transnational strategy
d.
Multidomestic strategy
e.
Market design strategy
103. Which of the following refers to a strategy that combines global coordination to attain efficiency with flexibility to
meet specific needs in various countries?
a.
Domestic strategy
b.
Global strategy
c.
Transnational strategy
d.
Multidomestic strategy
e.
Region design strategy
104. Some people argue that _____ is the most difficult and most important part of strategic management.
a.
SWOT analysis
b.
strategic formation
c.
strategic execution
d.
strategic analysis
e.
strategy evaluation
105. Persuasion, motivation, and changes in cultures and values are examples of which of the dimensions used to
implement strategy?
a.
Leadership
b.
Structural design
c.
Human resources
d.
Information and control systems
e.
Compensation
106. Which of the following is NOT one of the tools used for putting strategy into action?
a.
Visible leadership
b.
Diversification
c.
Human Resources
d.
Communication
e.
Clear roles and accountability
