Between 2005 and 2011, Blue Drink Company increased its net profit from $5 million
to $25 million. It was able to do this by expanding its product line to include a wider
variety of drink flavors as well as introducing a low-calorie line. The $20 million
increase in net profit between 2005 and 2011 can be referred to as which of the
following?
A.Emergent strategy
B.Shareholder value
C.Profit growth
D.Profitability turnover
E.Risk capital
In a harvest strategy, a company
A.increases its investment in a business.
B.decreases its investment in a business.
C.enhances the assets it uses in a business.
D.expands the number of stores or properties.
E.all of these.
Cosmetics makers focus on the unique needs of customers of different ages. The
cosmetics makers recognize the importance of
A.shifting industry boundaries.
B.the threat of new entrants.
C.sectors.
D.market segments.
E.substitutes.
Which of the following support activities in the value chain refers to the companywide
context within which all the other value creation activities take place?
A.Human resources
B.Information systems
C.Company infrastructure
D.Materials management
E.Operations
Efficiency is
A.defined as the time it takes to produce a product.
B.defined as the cost of inputs required to produce a given output.
C.pursued only by cost leaders.
D.measured by looking at a product’s price.
E.lower when the output is high-quality.
How profitable a company is ultimately depends on
A.management’s evaluation of the utility of a product.
B.product utility created through advertising.
C.the value of the patents the company holds.
D.the image of the company’s products in the marketplace.
E.the value customers place on the company’s products.
Foreign subsidiaries play a major role in shaping the future direction of a company
pursuing a(n)
A.transnational strategy.
B.international strategy.
C.localization strategy.
D.joint venture.
E.global standardization strategy.
Quality can best be thought of as
A.product usefulness.
B.quality as reliability and quality as excellence.
C.product innovation.
D.a matter for a company’s managers to decide for themselves without external input.
E.a matter for the marketing function of a company to decide.
When companies find it hard to change their strategies and structures to adapt to
changing competitive conditions, they suffer from
A.inertia.
B.prior strategic commitments.
C.barriers to mobility.
D.lack of resources.
E.lack of capabilities.