e.
potential new entrants.
41. Which of the following is NOT one of Porter’s competitive forces?
a.
Potential new entrants
b.
Bargaining power of suppliers
c.
Bargaining power of stockholders
d.
Bargaining power of customers
e.
Rivalry among competitors
42. Which of the following strategies involve an attempt to distinguish the firm’s products or services from
others in the industry?
a.
Cost leadership
b.
Differentiation
c.
Focus
d.
Internal growth
e.
Liquidation
43. Which strategy can be profitable for an organization when customers are loyal and willing to pay high
prices?
a.
Focus
b.
Globalization
c.
Overall cost leadership
d.
Differentiation
e.
Liquidation
44. The _____ strategy involves seeking efficient facilities, cutting costs and using tight cost controls to be
more efficient than competitors.
a.
cost leadership
b.
differentiation
c.
focus
d.
internal growth
e.
liquidation
45. The human resource department at Paula’s Powerwheels is implementing a number of functional level
strategies. These strategies include focusing on ways to retain and develop a stable work force and
ways to improve efficiency in the organization. These functional-level strategies are consistent with
which of the following strategies?
a.
Cost leadership
b.
Differentiation
c.
New product development
d.
New market development
e.
Divestiture
46. With a(n) _____ strategy, the organization concentrates on a specific regional market or buyer group.
a.
cost leadership
b.
differentiation
c.
focus
d.
internal growth
e.
liquidation
47. Mingles, Inc. concentrates its efforts on its target market of 18 to 25 year olds. It is using a(n) _____
strategy.
a.
focus
b.
differentiation
c.
cost leadership
d.
multidomestic
e.
universal strategy
48. General Products Inc. is a small clothing designer and manufacturer located in the United States. A
vast majority of the company’s revenues comes from U.S. sales, although about ten percent of the
company’s revenue come from sales to Canada. General Products Inc. can best be described as using
which global corporate strategy?
a.
Globalization strategy
b.
Multidomestic strategy
c.
Export strategy
d.
Transnational strategy
e.
Domestic strategy
49. FLY Industries is a global conglomerate company headquartered in the United States that does
business in over fifty countries. The company seeks to balance global efficiencies and local
responsiveness by hiring locally as well as from home. It can best be described as using which global
corporate strategy?
a.
Globalization strategy
b.
Multidomestic strategy
c.
Export strategy
d.
Transnational strategy
e.
Domestic strategy
50. If ABC International has standardized its product line throughout the world it is pursuing a:
a.
multidomestic strategy.
b.
retrenchment strategy.
c.
diversity strategy.
d.
globalization strategy.
e.
liquidation strategy.
51. The assumption that a single global market exists would lead to a:
a.
globalization strategy.
b.
multidomestic strategy.
c.
diversity strategy.
d.
domestic strategy.
e.
liquidation strategy.
52. Which of the following strategies would be appropriate when the need for both national
responsiveness and global integration is low?
a.
Globalization
b.
Multidomestic
c.
Export
d.
Transnational
e.
Import
53. _____ refers to the modification of product design and advertising strategies to suit the specific needs
of individual countries.
a.
Domestic strategy
b.
Global strategy
c.
Transnational strategy
d.
Multidomestic strategy
e.
Market design strategy
54. Which of the following refers to a strategy that combines global coordination to attain efficiency with
flexibility to meet specific needs in various countries?
a.
Domestic strategy
b.
Global strategy
c.
Transnational strategy
d.
Multidomestic strategy
e.
Region design strategy
55. Some people argue that _____ is the most difficult and most important part of strategic management.
a.
SWOT analysis
b.
strategic formation
c.
strategic execution
d.
strategic analysis
e.
strategy evaluation
56. Persuasion, motivation, and changes in cultures and values are examples of which of the dimensions
used to implement strategy?
a.
Leadership
b.
Structural design
c.
Human resources
d.
Information and control systems
e.
Compensation
57. Which of the following is NOT one of the tools used for putting strategy into action?
a.
Visible leadership
b.
Diversification
c.
Human Resources
d.
Communication
e.
Clear roles and accountability
58. People need to understand how their individual actions can contribute to achieving an organizational
strategy. This can be accomplished by delegating authority, creating teams, and defining roles. These
actions are part of which tool for putting strategy into action?
a.
Visible leadership
b.
Candid communication
c.
Human resources
d.
Clear roles and accountability
e.
Bargaining power of employees
59. The _____ function recruits selects, trains, transfers, promotes, and lays off employees to achieve
strategic goals.
a.
production
b.
leadership
c.
information and control systems
d.
structural design
e.
human resource
CASE
Scenario – Theresa Teutul
Theresa Teutul was an executive with Digital Industries, a leading manufacturer of color televisions.
She recognized that the color television market in the late 1970’s was facing significant challenges.
After two decades of highly successful development and marketing, the sales of color televisions had
slowed and replacing older color television sets largely created her market.
1. Using the logic of the BCG grid, Theresa should recognize that her strategic business unit was in
which quadrant?
a.
Star
b.
Cash Cow
c.
Question Mark
d.
Dog
e.
None of these
2. The strategy that the BCG matrix suggests that Theresa should take for this SBU is:
a.
invest and grow.
b.
liquidate while still profitable.
c.
ask her astrologer for advice.
d.
keep the SBU healthy and use its excess earnings to invest in other SBU’s.
e.
divestiture.
Scenario – SS.com
Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest
market share, recently announced that it has established an on-line stock investment and trading
subsidiary, SS.com, where investors can trade stocks at the lowest rates in the industry. The .com
subsidiary has less than one percent market share but it faces a very high business growth rate. In the
brokerage industry the competition is fierce and all players are cutting their on-line commission rates.
3. Swift Stock’s traditional brokerage business could be classified as a _____.
a.
cash cow
b.
dog
c.
star
d.
question mark
e.
stuck in the middle business
4. SS.com subsidiary for Swift Stocks can be classified as a _____.
a.
cash cow
b.
dog
c.
star
d.
question mark
e.
stuck in the middle business
5. If Swift Stock’s traditional brokerage business were to face a declining business growth, it may need to
be reclassified as a _____.
a.
cash cow
b.
dog
c.
star
d.
question mark
e.
dead business
6. Swift Stock is following which strategy, according to Porter, through the .com subsidiary?
a.
Stability
b.
Cost leadership
c.
Focus
d.
Differentiation
e.
Retrenchment
COMPLETION
1. _____ is the set of decisions and actions used to formulate and implement strategies that will provide a
competitively superior fit between the organization and its environment so as to achieve organizational
goals.
2. The plan of action that prescribes resource allocation and other activities for dealing with the
environment and helping the organization attain its goals is called a(n) _____.
3. A business activity that an organization does particularly well relative to its competition is known as
a(n) _____.
4. When organizational parts interact to produce a joint effect that is greater than the sum of the parts
acting alone, _____ occurs.
5. The question What business are we in? concerns the _____ strategy.
6. The question How do we compete? concerns _____ strategy.
7. The question How do we support the business-level competitive strategy? concerns _____ strategy.
8. _____ includes the planning and decision making that lead to the establishment of the firm’s goals and
the development of a specific strategic plan.
9. The use of managerial and organizational tools to direct resources toward accomplishing strategic
results is known as _____.
10. _____ is a type of corporate-level strategy that pertains to the organization’s mix of strategic business
units.
11. In the BCG matrix, the dog has _____ market share and _____ business growth rate.
12. In the BCG matrix, the star has a(n) _____ market share in a rapidly growing industry.
13. The acquisition of a business that is related to current product lines or that takes the corporation into
new areas is called _____.
14. The _____ strategy involves an attempt to distinguish the firm’s products or services from others in the
industry.
15. With a(n) _____ strategy, the organization aggressively seeks efficient facilities, pursues cost
reductions, and uses tight cost controls to produce products more efficiently than competitors.
16. With a(n) _____ strategy, the organization concentrates on a specific regional market or buyer group.
17. The standardization of product design and advertising strategies throughout the world is called _____.
18. When an organization chooses a(n) _____ strategy, it means that business decisions such as product
design are made on a country–by-country basis.
19. A(n) _____ strategy seeks to achieve both global integration and national responsiveness.
20. The ability to influence people to adopt the new behaviors needed for strategy implementation is called
_____.
21. It is argued that _____ is the most difficult and most important part of strategic management.
SHORT ANSWER
1. List the four components of a SWOT analysis.
2. List the three global corporate strategies.
ESSAY
1. In order for companies to remain competitive, their strategies must focus on three things. Describe
these three focuses.
2. Compare and contrast the three levels of strategy in an organization.
3. Differentiate between strategy formulation and strategy implementation.
4. Briefly describe the Boston Consulting Group matrix, including its dimensions, quadrants, and
strategic recommendations.
5. Briefly discuss Porter’s three competitive strategies.
6. Name and describe the three types of global strategies.
7. Briefly describe the tools for putting strategy into action.
ANS:
