One of the factors that distinguishes organizations in the nonprofit sector from for-profit
businesses is the lack of concern for strategic management.
To foster the development of the matrix-in-the-mind concept and promote cooperation,
companies are increasingly making use of the integrating capabilities of information
technology (IT).
McDonald’s created the first national chain of fast-food restaurants in a previously
fragmented industry. This is called consolidation.
For any company, building new competencies in the functions that sustain its
differentiation means neglecting its cost structure.
According to Rose Marie Bravo of Burberry, creative ideas may come from a number
of sources, but not from the accounting department, for good reasons.
All focus strategies entail serving a specific market segment using a differentiation
approach.
A transnational strategy makes the most sense when there are strong pressures for cost
reductions and when demand for local responsiveness is minimal.
The early adopters refers to the customers who purchase a new technology or product
only when it is clear it will be around for a long time.
The law of economies of scale suggests that unit costs continue to fall indefinitely as
output volume increases.
Which of the following trends has led to the fragmentation of many consumer markets?
A.Self-managing teams
B.Project management
C.TQM
D.Customization
E.Increased response time
Consumer demand for products of an embryonic industry is
A.high and ready to explode.
B.frequently limited at first.
C.nonexistent because consumers lack product information.
D.tentative for the first two years.
E.insatiable.
A telecommunications firm is working on the next generation of switching equipment
that allows calls to be digitally transmitted from sender to receiver. If the new product
will be sold to existing customers, the firm is pursuing a strategy of
A.product development.
B.market penetration.
C.product proliferation.
D.market signaling.
E.market development
Aaron planned to cut prices at his bicycle shop, but when a competing shop began to
offer free repairs, Aaron decided to copy them. Aaron’s new strategy (offer free repairs)
is an example of a(n)
A.mistake.
B.emergent strategy.
C.deliberate strategy.
D.intended strategy.
E.unrealized strategy.
General organizational competencies refer to competencies
A.existing in individual business units.
B.existing in individual functional units.
C.existing in the industry in which a company operates.
D.that can be procured in the marketplace.
E.that transcend individual functions or business units.
Restructuring is
A.a rethinking and redesign of a firm’s business processes.
B.a radical readjustment of the organization’s staffing and hierarchy.
C.a philosophy that states that mistakes, defects, and poor-quality materials are not
acceptable and should be eliminated.
D.the shift that firms make from a functional to a more complex structure as the firm
grows in complexity and size.
E.employed when a firm needs help in improving its functional strategies.
Which of the following strategies results in the highest bureaucratic costs?
A.Localization
B.International
C.Global standardization
D.Transnational
E.Unrelated diversification
Which of the following seems to be a major determinant of a new venture’s success?
A.Large-scale entry into the target industry designed to build market share, even when
such entry involves significant short-term losses
B.Cautious small-scale entry into the target industry so that the company can assess the
probable outcome of the venture without losing too much money
C.A low level of integration between the marketing and the research and development
functions of the venturing company
D.Supporting many new venture projects in the hope that one will succeed
E.Killing the new venture if it does not show a profit after the end of the third year
Which of the following is not one of the principles commonly found in companies that
have successfully embraced the TQM philosophy?
A.Building an organizational commitment to quality
B.Finding ways to measure quality
C.Giving more time for supervisors to work with employees
D.Training new employees
E.Creating a separate quality department within the firm
Companies like Swedish furniture retailer Ikea can be described as a cost leaders. Ikea
established networks of linked merchandising outlets that are interconnected by IT and
function as one large company. Which of the following strategies for consolidating a
fragmented industry does Ikea pursue?
A.Chaining
B.Franchising
C.Horizontal merger
D.Niche strategy
E.Divestment strategy
In the early 1900s, when the automobile was first manufactured, the automobile
industry would have been considered a(n)
A.mature industry.
B.industry stakeout.
C.embryonic industry.
D.growth industry.
E.declining industry.
Strong leadership from top management is
A.a support activity.
B.needed to attain economies of scale.
C.needed to build brand loyalty.
D.part of the human resources value chain activity.
E.a primary activity in the value chain.