44) The owners of Everything Outdoors, a family-owned garden center in a rural community, are
concerned over the news that a large retailer with a garden center is building a new store on the
other side of town. According to a SWOT analysis, this new retailer is a(n) ________ to
Everything Outdoors.
A) strength
B) threat
C) weakness
D) opportunity
E) intelligence
45) In a SWOT analysis, organizational strengths are
A) external opportunities that a company can take advantage of.
B) environmental factors that the organization may exploit for competitive advantage.
C) MBO skills that should be emphasized.
D) skills and capabilities that give a company advantages in executing its strategies.
E) means that give a specific industry an advantage in a down economy.
46) Organizational opportunities in a SWOT analysis are
A) environmental factors that the organization may exploit for a competitive advantage.
B) weaknesses within the organizational hierarchy.
C) MBO skills and opportunities that should be emphasized.
D) skills and capabilities that give an industry advantages in executing its strategies.
E) problems that a specific industry needs to correct.
47) A forecast is a(n)
A) glimpse of what just happened.
B) execution of strategy and adjustments.
C) projection for the future.
D) analysis of the past.
E) plan for implementing strategic plans.
48) Contingency planning is also known as
A) organizational opportunities.
B) scenario goal-setting and plans.
C) a trend analysis.
D) scenario planning and scenario analysis.
E) strategic planning.
49) The basic assumption that the picture of the present can be projected into the future is the basis
of a
A) strategic goal.
B) business plan.
C) vision statement.
D) SWOT analysis.
E) trend analysis.
50) Sales this year at Stars and Stripes Consignment have been high, and based on several factors,
Stars and Stripes projects next year’s sales to also be good. However, even with a forecast of
continued strong sales, Starts and Stripes Consignment needs to develop a plan in case sales drop
unexpectedly. ________ is the type of planning for alternative future conditions.
A) Background planning
B) Trend analysis
C) A vision plan
D) Contingency planning
E) A managerial pact
51) ________ is the process by which a company compares its performance with that of
high-performing organizations.
A) Trend analysis
B) Synergy
C) Contingency planning
D) Forecasting
E) Benchmarking
52) Michael Porter proposed that business-level strategies originate with the primary competitive
forces in the firm’s environment; these forces are the
A) threats of new entrants and the bargaining power of buyers and suppliers.
B) threats of substitute products and the services and competitive rivalries.
C) threats of new entrants and substitute products or services, the bargaining power of suppliers
and buyers, and competitive rivalries.
D) threats of government paperwork and tax increases, the bargaining power of suppliers, and
competitive rivalries.
E) bargaining power of suppliers.
53) Chris and his family have developed a successful business selling a liquid spray fertilizer to
farmers. The fertilizer consists of rich, organic, composted material. Recently, Organic Seed, a
national seed company, has been marketing a powdered chemical fertilizer to its customers;
Organic’s fertilizer is less expensive than Chris’s product. Organic’s efforts are an example of the
________ in Porter’s model for industry analysis.
A) buyers’ negotiating influence
B) rivalry among competitors
C) threats of substitute products and services
D) power of the suppliers
E) threats of new ideas
54) Porter’s competitive strategies of cost leadership and differentiation focus on ________
markets, while the cost-focus and focused-differentiation strategies focus on ________ markets.
A) narrow; wide
B) specific; broad
C) growth; specific
D) diverse; narrow
E) wide; narrow
55) When organizations endeavor (1) to keep their costs (and hence the prices of their products or
services) below those of competitors and (2) to target a wide market, they are utilizing a ________
strategy.
A) focused-differentiation
B) differentiation
C) cost-leadership
D) reinventing
E) cost-focus
56) World Grocer sells high-quality products and grocery items that are unique to its highly
populated area; in addition, it offers delivery for customers who are unable to leave their home and
a number of regular workshops regarding healthy eating. By offering these types of products and
services, World Grocer is pursuing a ________ strategy.
A) cost-savings
B) cost-focus
C) value-focused
D) differentiation
E) focused-differentiation
57) Ski Safety sells emergency safety and rescue products to ski patrols and rescue workers at
prices that are below those of its competitors, which offer a larger line of more expensive products
and focus on broader markets. Ski Safety is pursuing a ________ strategy.
A) cost-focus
B) cost-leadership
C) differentiation
D) narrow
E) focused-differentiation
58) The Platinum Platform, in Dubuque, Iowa, sells high-quality, unique bedding that is a real
value to upscale homes in the area. No other company in its local area markets bedding of such
quality and value. By offering this type of product, The Platinum Platform is utilizing a ________
strategy.
A) cost-leadership strategy
B) focused-differentiation
C) cost-focus
D) uniquely focused
E) differentiation
59) Delux Technologies makes and sells only one product, a high-quality processor for mainframe
computers. Delux was recently approached by Imagination Station, a large computer
manufacturer, about purchasing their company. Imagination Station is engaging in
A) unrelated diversification.
B) focused-differentiation.
C) related diversification.
D) vertical integration.
E) differentiation.
60) Value Products is an organization that operates several companies that market food products,
restaurant equipment, and paper and plastic products, and it even has a division that counsels
restaurant owners, helping them launch new restaurants successfully. Value Products is pursuing a
________ strategy.
A) single-product
B) diversification
C) focused-differentiation strategy
D) differentiation
E) multiproduct
61) In 2003, Myspace launched a social networking website offering an interactive,
user-submitted network of friends, personal profiles, blogs, groups, photos, music, and videos.
Myspace was the largest social networking site in the world, from 2005 to 2009. Recently, it was
purchased by Specific Media, an online platform where music fans can interact with their favorite
entertainers, listen to music, watch videos, share and discover cool stuff and just connect. Which of
the following describes Specific Media’s strategy?
A) stability
B) diversification
C) growth
D) defensive
E) multiproduct
62) The BCG matrix is a means of evaluating strategic business units on the basis of their
A) business costs and share of the market.
B) differentiation and profitability.
C) business growth rates and share of the market.
D) BCG ratio.
E) product quality and profitability.
63) In the BCG matrix, ________ are organizations that have slow growth but high market share,
with income that often finances stars and question marks.
A) sleeping giants
B) dogs
C) cash cows
D) turtles
E) sleepers
64) In the BCG matrix, ________ are companies that have high growth and high market share, and
are definite keepers.
A) sleeping giants
B) stars
C) cash cows
D) turtles
E) sleepers
65) Global CEOs desire ________ even more than profit growth, stimulating innovation, customer
loyalty, and finding qualified employees.
A) an ethical workplace
B) organization diversity
C) an increased usage of MBO
D) happy employees
E) excellence in execution
66) Effective execution requires managers to build a foundation for execution within which three
core processes found in any business?
A) leading, planning, and recruiting
B) people, strategy, and operations
C) diversity, people, and profitability
D) people, planning, and leading
E) leading, synergy, and diversity
67) A company’s overall ability to execute is a function of effectively executing according to three
processes, but Bossidy and Charan believe that the ________ process is the most important.
A) operations
B) leading
C) people
D) planning
E) strategy
68) In order to avoid failure, organizations need to consider
A) the jobs of the future.
B) the path for people to follow.
C) who is going to get it done.
D) where an organization wants to go.
E) the how of execution.
69) Joelle wants to broaden her functional knowledge. Which of the following activities should she
engage in?
A) attending a business conference
B) reading a business article
C) writing a reflection journal
D) wearing a blue hat
E) studying the company’s annual report
70) In Dr. De Bono’s Six Thinking Hats, who wears the blue hat?
A) the person serving as the fact gatherer
B) the person discussing emotions
C) the person serving as the control function
D) the person exploring new ideas
E) the person playing devil’s advocate
71) Grandma’s Bakery wants to begin selling gluten-free products and vegan products. The
C-Suite executives have made the decision and are now wanting the change implemented. Whose
planning will move this from the decision level into production?
A) senior-level managers
B) functional managers
C) acquisition managers
D) small-business managers
E) strategic managers
72) Why is the feedback loop important?
A) It translates lower-level plans.
B) It determines the organization’s long-term goals for the next one to five years.
C) It looks at what is working and what could be different to maximize efficiency.
D) It monitors progress so that corrective action can take place.
E) It describe how the company contributes to the world.
73) Which of the following is NOT part VRIO?
A) value
B) rarity
C) imitability
D) organization
E) resource
74) In 2009 and 2010, Toyota had to recall millions of automobiles due to uncontrollable
acceleration. This recall forced upper-level management to rethink many things. For example,
Toyota had become too focused on profits. As a business coach, where would you recommend
Toyota begin?
A) Step 1: Establish the mission, vision, and values statements.
B) Step 2: Assess the current reality.
C) Step 3: Formulate the grand strategy.
D) Step 4: Implement the strategy.
E) Step 5: Maintain strategic control.
75) Many stores today have changed how customers shop. You can go online to buy your
groceries, have a store clerk pick them out for you and then either drive up and pick them up or
have them delivered. Besides groceries, you can do this with electronics, clothing, shoes, and even
pharmaceuticals. How would you describe this change in business practices?
A) strategic formulation
B) strategic implementation
C) strategic assessment
D) strategic culture
E) strategic neutrality