58) In the BCG matrix, a ________ has a low anticipated growth rate and a low market share.
A) question mark
B) cash cow
C) dog
D) star
59) In the BCG matrix, a ________ enjoys a high anticipated growth rate and a high market
share.
A) question mark
B) star
C) cash cow
D) dog
60) ________ should be sold off or liquidated as they have low market share and low growth
potential.
A) Cash cows
B) Stars
C) Question marks
D) Dogs
61) Managers should “milk” cash cows for as much as they can, limit any new investment in
them, and use the large amounts of cash generated to invest in ________ and ________.
A) dogs; stars
B) cash cows; dogs
C) stars; question marks
D) question marks; dogs
62) Heavy investment in ________ will help take advantage of the market’s growth and help
maintain high market share.
A) cash cows
B) stars
C) question marks
D) dogs
63) Corporate strategies determine what business a company is in or wants to be in, and what it
wants to do with those businesses.
64) Diversification is an example of a corporate retrenchment strategy.
65) If Burger King were to buy out Mom and Pop’s Burgers, Burger King would be growing by
vertical integration.
66) A trucking company that grows by purchasing a chain of gasoline stations is engaged in
horizontal integration.
67) A stability strategy is an organizational strategy in which an organization maintains the status
quo.
68) A retrenchment strategy is a short-run renewal strategy that helps an organization stabilize
operations, revitalize organizational resources and capabilities, and prepare to compete once
again.
69) A turnaround strategy is a type of renewal strategy used when an organization is in serious
trouble.
70) The BCG matrix evaluates an organization’s various businesses to identify which ones offer
high potential and which ones drain organizational resources.
71) Stars, one of the four business groups in the BCG matrix, are characterized by low growth
and high market share.
72) List and discuss the three levels of strategy that a large organization must develop.
73) List and discuss the different types of corporate strategies.
74) Discuss the methods by which an organization grows. Give relevant examples.
75) Discuss the corporate portfolio matrix and the Boston Consulting Group (BCG) matrix.
76) In an organization, the single independent businesses which formulate their own competitive
strategies are known as ________.
A) strategic growth units
B) strategic business units
C) strategic profit units
D) service units
77) Bixler Corporation boasts that it has the fewest warranty claims in its industry. We can infer
from this that ________.
A) Bixler’s quality is a competitive advantage
B) Bixler has an ineffective TQM program
C) Bixler has employed design thinking in the development of its products
D) Bixler is using social media to promote its products
78) Kiva Systems, manufacturer of robots used in flexible automation systems, demonstrates the
power of ________ by “teaching” its robots to dispose of used cardboard and to assist in gift
wrapping for e-commerce warehouse fulfillment.
A) design thinking
B) inventory management
C) strategic flexibility
D) e-business strategies
79) When used to connect with customers or to connect employees with co-workers in other
locations, social media ________.
A) provide a means for customers to order products online
B) create distractions that can keep employees from being productive
C) provide information for competitors that give them a competitive advantage
D) can create a competitive advantage
80) Which of the following is a competitive force under the five forces model?
A) past rivalry with competitors
B) bargaining power of distributors
C) vertical integration
D) threat of new entrants
81) When the price of beef skyrockets, consumers switch to pork and chicken. This
demonstrates ________.
A) the threat of new entrants
B) the threat of substitutes
C) the bargaining power of buyers
D) the bargaining power of suppliers
82) A cost leadership strategy requires a firm to ________.
A) maintain the lowest cost structure
B) maintain the lowest prices to its customers
C) aim at a cost advantage in a niche market
D) match its competition’s prices
83) A company that competes by offering unique products that are widely valued by customers is
following a ________.
A) leadership strategy
B) differentiation strategy
C) focus strategy
D) functional strategy
84) Which of the following strategies involves a cost advantage or a differentiation advantage in
a narrow segment?
A) niche strategy
B) focus strategy
C) functional strategy
D) leadership strategy
85) Ferrari sells very expensive, stylish, high-quality cars to very wealthy people. Ferrari
follows a ________ strategy.
A) niche
B) focus
C) differentiation
D) quality
86) A firm that is “stuck in the middle” cannot develop ________.
A) a cost or differentiation advantage
B) a functional strategy
C) a leadership strategy
D) a competitive advantage
87) Functional-level strategy directly supports the ________.
A) corporate strategy
B) competitive strategy
C) operating strategy
D) concentration strategy
88) Within an organization, the single independent businesses that formulate their own
competitive strategies are known as strategic business units.
89) A company that competes by offering unique products that are widely valued by customers is
following a differentiation strategy.
90) Discuss the concept of competitive advantage and explain how quality is a competitive
advantage.
91) Discuss the five forces model and the various competitive strategies that an organization may
use.
92) Discuss how social media can create a competitive advantage.
93) ________ is the ability to anticipate, envision, maintain flexibility, think strategically, and
work with others in the organization to initiate changes that will create a viable and valuable
future for the organization.
A) Strategic leadership
B) Strategic management
C) Strategic competence
D) Strategic flexibility
94) How can an organization develop strategic flexibility?
A) It should commit resources only after thorough planning.
B) It should ignore mistakes.
C) It should depend on tried and tested perspectives from senior employees.
D) It should have multiple alternatives when making strategic decisions.
95) ________ is the ability to recognize major external changes, to quickly commit resources,
and to recognize when a strategic decision is not working.
A) Strategic apprenticeship
B) Strategic flexibility
C) Strategic leadership
D) Strategic management
96) How can a cost leader use e-business to reduce costs?
A) It could automate purchasing and payment systems so that customers have detailed status
reports.
B) It could provide rapid online responses to service requests.
C) It could use Internet-based knowledge systems to shorten customer response times.
D) It could use Web-based inventory control systems that reduce storage costs.
97) An Internet-based knowledge management system that shortens customer response times
would be an e-business technique that contributes to the competitive advantage of a ________.
A) cost leader
B) differentiator
C) focuser
D) brick
98) Who targets a narrow market segment with customized products?
A) a differentiator
B) a niche marketer
C) a focuser
D) a first mover
99) A ________ firm uses both online and traditional stand-alone locations.
A) first mover
B) clicks-and-bricks
C) focuser
D) brick-and-mortar
100) An organization that initially brings a product innovation to the market is known as the
________.
A) first mover
B) free rider
C) cash cow
D) question mark
101) Which of the following is an advantage of being a first mover?
A) certainty over the direction of technology and market
B) low development costs
C) no financial or strategic risks
D) opportunity to begin building customer relationships
102) What is a strategic disadvantage of being a first mover?
A) least opportunity to build customer loyalty
B) risk of competitors imitating innovations
C) no cost and learning benefit
D) no control over resources
103) Managers using the strategic management process always achieve positive outcomes.
104) Discuss how managers can formulate e-business strategies that contribute to the
development of a sustainable competitive advantage in today’s environment.
105) Explain the term “first mover” and then list some of the advantages and disadvantages of
being a first mover in the market.