86. When the iPhone 5 was anticipated for release, the iPhone 4 was expected to drop in price from $250 to $50.
The four was at which stage of the product life cycle?
87. The product life cycle
88. ____ is a useful framework for managers to use as they plot business strategy over time.
89. Which of these is concerned with the changes in the sales volume of a product during its existence?
90. Reality shows became prevalent on television after CBS introduced the first Survivor series. That type of
television show is now in the maturity stage of its product life cycle. This means
91. When implementing a differentiation strategy it is important to have
92. Warsteiner beer has the slogan “Life is too short, to drink cheap beer.” This slogan supports a ____
strategy.
93. An organization implementing a prospector strategy needs to
94. Mrs. Fields was the first high quality, high priced cookie. Its success attracted competition. Mrs. Field’s
slowed growth to focus on making current operations more profitable. This is an example of a ____ strategy.
95. The aircraft engine division of General Electric, which competes with Pratt & Whitney, has its own mission
and a strategy that often differs considerably from other parts of the corporation. What is a division such as this
called?
96. For years, the Tabasco Company used a(n) ____ strategy and manufactured only its famous hot sauce.
97. When Turner Broadcasting purchased a movie studio with its vault of old movies, it was an example of a(n)
____ diversification strategy. Turner was able to get a source for movies to show on its various cable television
stations.
98. Reckitt & Colman, Inc. manufactures Spray ‘n Wash laundry stain remover, Resolve fabric refresher, and
Woolite fabric wash. This is an example of ____ diversification.
99. Clorox Corporation owns Kingsford charcoal, Matchlight charcoal lighter, Prime Choice steak sauce, and a
restaurant chain. This is an example of ____ diversification.
100. Which of the following is NOT an example of a basis of relatedness for implementing related
diversification?
101. United Continental Holdings includes Continental Airlines, United Airline, Chelsea Food Services, and
United Cruises, because it was thought that they can accomplish more joined together than they can operating as
separate units. Which advantage of related diversification does this best represent?
102. Kraft Food Inc offered to buy Cadbury, a confection and beverage company. Which advantage of related
diversification could result from the merging of these two businesses?
103. ____ exists when the economic value together is greater than the value of the parts.
104. An example of ____ would be when credit card and mortgage divisions of banks often get their customers
from the bank’s commercial loan customers.
105. Which of the following is NOT an advantage inherent in related diversification?
106. One action that an organization may take with respect to an SBU classified as a dog is to sell it. It seems
odd that one organization would want to buy another’s dog. Which of the following might explain such a
purchase?
107. Ford once supplied every part to its automobiles, except the rubber (it even tried to grow the trees, to no
avail). This is an example of
108. Franke, a Swiss manufacturer of sink and facet systems, sold accessories through retail stores and then
added Internet sales. Franke used
109. ____ are corporate-level strategies for becoming a diversified firm.
110. Forms of diversification include
111. Porsche Automobil Holding and Volkswagen own each other’s stock. They plan to integrate the companies
in 2011. This diversification strategy is ____.
112. Using the Boston Consulting Group matrix, SBUs are classified on the basis of
113. ____ is the proportion of the market controlled by the product.
114. Extra funds should be channeled to the ____, which is a product with a high share of a fast-growing
market.
115. Companies should invest carefully and monitor closely a ____, which is a product that has a small share of
a growing market.
116. Apple has a large share of the growing tablet market. Apple is an example of a
117. Hewlett Packard has a large share of the slowly growing PC market. This is an example of a
118. Philip Morris markets Marlboro cigarettes, the number-one selling cigarette brand in the world. Outside the
United States, Marlboro generates huge profits that Philip Morris uses to support other less successful SBUs.
According to the BCG matrix, Marlboro is an example of a
119. Adolph Coors Company heavily developed Zima brand beer that was targeted to Generation Xers, but
Zima gained only a small share of a rapidly growing market. According to the BCG matrix, Zima is an example
of a
120. The production company that provided the television show Who Wants to Marry My Dad? to be shown on
night-time television to compete in a market begun by Joe Millionaire had to cut cash flow when the demand
for the show did not live up to expectations. According to the BCG matrix, the TV show Who Wants to Marry
My Dad? was an example of a
121. Facebook has high market share and high market growth rate, which would make it a ____.
122. Assuming an SBU retained its share of the market, how would it be classified if it were a star and its
market subsequently became a low-growth market?
123. One characteristic of an SBU classified as a star is
124. GE noticed that financial institutions had large profit margins. When GE entered the industry, its SBU was
125. The GE business screen is an expansion of the ideas from
126. MNCs can exploit advantages over domestic businesses. Which of the following in NOT an advantage?
127. Which of the following is NOT an international business strategy?
128. ____________________ strategies are those that promote a superior alignment between the organization
and its environment and the achievement of strategic goals.
129. Hershey Foods has essentially restricted its ____________________ to the confectionery business, with a
few related activities in other food-processing areas.
130. A(n) ____________________ is something the organization does exceptionally well.
131. Phillip Morris uses profits from operations outside the U.S. to invest in new businesses. This is an example
of ____________________.
132. The business-level strategy is more focused than the ____________________ strategy.
133. The ____________________-level strategy is the overall strategy that helps define the mix of industries
and markets that are of interest to the firm.
134. Strategy implementation is the methods by which strategies are ____________________.
135. A(n) ____________________ strategy is a plan chosen and implemented to support specific goals.
136. The starting point in formulating strategy is usually ____________________ analysis.
137. Organizational ____________________ are skills and capabilities that enable an organization to conceive
of and implement its strategies.
138. ____________________ is the practice of duplicating another organization’s distinctive competence and
thereby implementing a valuable strategy.
139. ____________________ is a skill or capability held by numerous competing firms.
140. Organizational ____________________ are areas that increase the difficulty of an organization’s
performing at a high level.
141. HealthTex aims its advertising at mothers with children under the age of five. This generic strategy is
called a(n) ____________________ strategy.
142. ____________________ is a strategy in which an organization attempts to gain a competitive advantage
by reducing its costs below the costs of competing firms.
143. According to the Miles and Snow typology, organizations need to implement a(n) ____________________
strategy to encourage creativity and flexibility.
144. According to the Miles and Snow typology, the ____________________ strategy take a mid-range
approach and attempts to move into new market areas at a deliberate and carefully planned pace.
145. In the Miles and Snow typology, the ____________________ strategy has no consistent strategic
approach.
146. The ____________________ is a useful framework for recognizing that strategies need to evolve over
time.
147. Pampered Chef sells kitchen supplies through direct home sales. They are applying the generic strategy
known as ____________________.
148. The ____________________ of a firm implementing a differentiation strategy must also emphasize
creativity, innovation, and response to customer needs
149. Proper emphasis in accounting and finance is pivotal to a(n) ____________________ strategy.
150. ____________________ are businesses in a large organization that are grouped based on market or
industry.
151. Virtually all large businesses in the United States use ____________________.
152. ____________________ usually does not lead to high performance.
153. The Trump Organization operates real estate, casinos, The Miss USA pageant and Celebrity Apprentice
television show. It has ____________________ diversification.
154. Some firms ____________________ by developing their own new products and services within the
boundaries of their traditional business operations.
155. A company that stops buying supplies (either manufactured goods or raw materials) from other companies
and begins to provide its own supplies has diversified through ____________________ vertical integration.
156. A(n) ____________________ is the purchase of one firm by another firm that is considerably larger.
157. ____________________ are methods that diversified organizations use to determine which businesses to
engage in and how to manage these businesses to maximize corporate performance.
158. In the BCG matrix, businesses are classified on the basis of the ____________________ they hold and the
growth rate of that market.
159. According to the BCG matrix, ____________________ are businesses whose products have a high share
of a growing market.
160. According to the BCG matrix, ____________________ are businesses that have a high share of a stable
market.
161. Developing a(n) ____________________ strategy is far more complex than developing a domestic one.
162. International firms can capture ____________________ by locating their facilities anywhere in the world
that yields them the lowest production or distribution costs or that best improves the quality of service they offer
their customers.
163. ____________________ is an international strategy in which the company uses the core competency it
developed at home as its main competitive weapon in the foreign markets that it enters.
164. Match the following. You may use a response once, more than once, or not at all.
2. Miles and Snow prospector most closely resembles the
3. Miles and Snow defender most closely resembles the
4. Miles and Snow analyzer most closely resembles the
165. Describe the components of strategy.
166. What is the difference between business-level strategy and corporate-level strategy?
167. What are the differences between strategy formulation and strategy implementation?
168. Write a SWOT analysis of Apple.
169. Briefly describe each of Porter’s competitive (generic) strategies, and give an original example of how a
firm might use each strategy.
170. How will organizational culture affect business strategy implementation?
171. In reality, how do companies using unrelated diversification strategies perform? Why?
172. Briefly describe business portfolio analysis using the GE Business Screen.
173. What are the similarities and differences between international and domestic strategic planning?