e.
sales rapidly decline.
48. During the maturity stage of the product life cycle,:
a.
most companies start hiring more employees.
b.
managers need to focus their efforts on “getting product the out the door” without sacrificing quality.
c.
the sales volume is the highest.
d.
more competitors enter the industry.
e.
the overall demand growth for a product begins to slow down.
the product begins to decline.
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49. In the maturity stage of the product life cycle,:
a.
the demand is extremely high.
b.
product sales rapidly increase.
c.
compeition is at its peak.
d.
managers need to focus their efforts on “getting the product out the door” without sacrificing quality.
e.
the number of new firms producing the product begins to decline.
differentiate an organization’s product from competitors’ products.
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50. During the decline stage of the product life cycle:
a.
demand peaks.
b.
new competitors enter the industry.
c.
sales drop.
d.
managers need to focus their efforts on “getting the product out the door” without sacrificing quality.
e.
managers must increase production costs.
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51. Which of the following strategies can help companies survive during the decline stage of the product life cycle?
a.
Increasing production costs
b.
Manufacturing the products frequently and in smaller quantities
c.
Avoiding differentiation strategies
d.
Developing new products or services
e.
Focusing on strategies to slow the entry of competitors
products or services may do well during this stage.
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52. Which of the following strategies can help companies during the maturity stage of a product life cycle?
a.
Manufacturing products in small quantities intermittently than in bulk
b.
Drastically increasing product prices
c.
Focusing on keeping costs low
d.
Sacrificing the quality of products
e.
Focusing more on strategies to slow the entry of competitors
53. Strategies to slow the entry of competitors are important if an organization is entering an industry during the _____
stage of the product life cycle.
a.
b.
c.
d.
e.
a
advantage; thus, strategies to slow the entry of competitors are important.
Moderate
p.76
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54. Which of the following strategies will help companies succeed during the growth stage of a product cycle?
a.
Increasing overhead costs
b.
Focusing on developing new products or services
c.
Sacrificing product quality
d.
Focusing on creating product differentiation
c
Moderate
p.76
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e.
Increasing product prices significantly
55. During the growth stage of a product life cycle, companies should focus on:
a.
creating product differentiation.
b.
increasing overhead costs.
c.
sacrificing product quality.
d.
using anti-competitive strategies.
e.
divesting.
a
Moderate
p.76
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56. During the maturity stage of a product life cycle:
a.
demand is maximum.
b.
companies must sacrifice product quality.
c.
sales are the highest.
d.
demand comes to a halt.
e.
product differentiation concerns are still important.
e
Moderate
p.76
Moderate
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57. _____ describes the number of different businesses that an organization is engaged in and the extent to which these
businesses are related to one another.
a.
Entropy
b.
Diversification
c.
Divestiture
d.
Competency
e.
Economy of scale
another.
Easy
p.77
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58. An organization that pursues a single-product strategy:
a.
clusters relayed products in a single strategic business unit.
b.
manufactures a range of products that are related to each other in some way.
c.
uses a single marketing strategy for all its products.
d.
operates in a single geographic market.
e.
creates a separate business unit for each product it sells.
service and sells it in a single geographic market.
Moderate
p.77
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59. Virtually all larger businesses in the United States use a(n) _____ strategy.
a.
related-diversification
b.
single-product
c.
divestiture
d.
unrelated diversification
e.
single-service
60. Aries Inc. manufactures dairy products and detergents.This is an example of _____ diversification.
a.
horizontal
b.
unrelated
c.
single-product
d.
concentric
e.
related
Challenging
p.78
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61. _____ techniques are methods that diversified organizations use to determine in which businesses to engage and how
to manage these businesses to maximize corporate performance.
a.
Divestiture
b.
Portfolio management
c.
Process gain
d.
Deskilling
e.
Entropy
a
Easy
p.77
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62. In a Boston Consulting Group (BCG) matrix, _____ are businesses that have only a small share of a quickly growing
market.
a.
stars
b.
question marks
c.
entropies
d.
dogs
e.
cash cows
Easy
p.81
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63. In a BCG matrix, _____ are businesses that have a very small share of a market that is not expected to grow.
a.
question marks
b.
cows
c.
stars
d.
dogs
e.
rate busters
Dogs are businesses that have a very small share of a market that is not expected to grow.
Comprehension
p.81
MGMT.GRIF.16. 3-5 – LO: 3-5
Easy
p.79
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64. In the context of the BCG matrix, _____ are businesses that have the largest share of a rapidly growing market.
a.
question marks
b.
stars
c.
cows
d.
dogs
e.
entropies
Easy
p.81
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65. In a BCG matrix, _____ are businesses that have a large share of a market that is not expected to grow substantially.
a.
stars
b.
cash cows
c.
entropies
d.
question marks
e.
dogs
Easy
p.81
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66. The _____ is a portfolio management technique that considers industry attractiveness and competitive position rather
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than focusing solely on market growth and market share.
a.
Black-Litterman model
b.
modern portfolio theory
c.
growth-share matrix
d.
BCG matrix
e.
GE Business Screen
67. In the GE Business Screen portfolio management technique, businesses that have good competitive position in an
attractive industry are known as:
a.
losers.
b.
winners.
c.
profit producers.
d.
question marks.
e.
cash cows.
b
1
Easy
p.82
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68. In the GE Business Screen matrix, which of the following is a determinant of industry attractiveness?
a.
Market share
b.
Market size
c.
Product quality
d.
Operating costs
e.
Service network
b
1
Easy
p.82
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69. In the GE Business Screen matrix, which of the following determines the competitive position of the company?
a.
Market size
b.
Market growth
c.
Price competitiveness
d.
Capital requirements
e.
Competitive intensity
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70. In the context of the GE Business Screen, a determinant of an organization’s competitive position is:
a.
capital requirements.
b.
market growth.
c.
government policies.
d.
market size.
e.
product quality.
MGMT.GRIF.16. 3-5 – LO: 3-5
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71. Pursuing a strategy of _____ reduces an organization’s dependence on any one of its business activities and thus
reduces economic risk.
a.
single-product
b.
single-service
c.
divestiture
d.
related diversification
e.
trade restraint
Moderate
p.77
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72. Firms that implement a strategy of _____ operate multiple businesses that are not logically associated with one
another.
a.
single-business unit
b.
unrelated diversification
c.
entropy
d.
nondiversification
e.
synergy
Easy
p.78
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73. In the context of the GE Business Screen, a determinant of industry attractiveness would be:
a.
capital requirements.
b.
product quality.
c.
service network.
d.
price competitiveness.
e.
market share.
74. Which of the following is a determinant of an organization’s competitive position in the context of the GE Business
Screen?
a.
Government policies
b.
Market size
c.
Technological know–how
d.
Capital requirements
e.
Market growth
and operating costs.
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75. In the context of the GE Business Screen matrix, _____ is a determinant of the competitive position of a company.
a.
intensity of competition
b.
government policies
c.
market size
d.
market growth
e.
market share
size, capital requirements, and competitive intensity.
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