Schermerhorn & Bachrach / Exploring Management, 56th Edition Test Bank
Copyright © 20168 John Wiley & Sons, Inc. TB 76 – 17
Level: Easy
Learning Objective 2: Understand how managers formulate and implement strategies.
Section Reference: SWOT analysis examines strengths, weaknesses, opportunities, and threats.
AACSB: Analytic
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 In a SWOT analysis, outdated facilities and obsolete technologies will be considered as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
Copyright © 20168 John Wiley & Sons, Inc. TB 76 – 19
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
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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.
Copyright © 20168 John Wiley & Sons, Inc. TB 76 – 25
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.
Copyright © 20168 John Wiley & Sons, Inc. TB 76 – 26
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.
Copyright © 20168 John Wiley & Sons, Inc. TB 76 – 31