Management 12th Edition by Daft – Chapter 8 Review   a.

 Operational
1. Which of the following is a business activity that an   b.  Corporate
organization does especially well relative to its competition?   c.  National
  a. Strategy   d.  Business
  b. Synergy   e. Functional
  c.  Cash cow
  d.  Core competence 8. When Philip-Morris, the tobacco giant, bought Kraft, Inc., it
  e. Multidomestic was pursuing a _____.
  a. corporate-level strategy
2. The condition that exists when the organization's parts   b.  business-level strategy
interact to produce a joint effect that is greater than the sum   c.  functional-level strategy
of the parts acting alone is known as:   d.  multidomestic strategy
  a. core competence.   e. retrenchment strategy
  b.  synergy.
  c.  value creation. 9. Which of the following pertains to the organization as a
  d. business-level strategy. whole?
  e. multidomestic strategy.   a. Business-level strategy
  b.  Functional-level strategy
3. When properly managed, _____ can create additional   c. Corporate-level strategy
value with existing resources, providing a big boost to the   d.  Operational-level strategy
bottom line.   e. Competitive-level strategy
  a. synergy
  b.  competitors 10. Sears' decision to sell off much of its financial services
  c.  government contacts division is an example of a:
  d.  command structure   a. corporate-level strategy.
  e. cooperation among customers   b.  business-level strategy.
  c.  functional-level strategy.
4. _____ can be defined as the combination of benefits   d.  growth strategy.
received and costs paid by the customer.   e. stability strategy.
  a. Organizational benefits
  b.  Value 11. A corporate-level strategy is concerned with the question:
  c.  Cost-benefit diversity   a. what business are we in?
  d. Synergy   b.  how do we compete?
  e. Core competence   c.  how do we support our chosen strategy?
  d.  where do we market our products?
5. After Sunshine Systems merged with RTD Enterprises,   e. should we promote from within?
company executives noticed that due to increased employee
collaboration between the two units, costs were down and 12. When Coca-Cola introduced Surge, a new citrus soft-drink,
revenues increased within both areas. This is an example of what type of strategy was being pursued?
what business phenomenon?   a. Functional-level strategy
  a. Strategy execution   b.  Multi-domestic strategy
  b. Portfolio strategy   c.  Corporate-level strategy
  c.  Core competency   d.  Retrenchment strategy
  d.  Synergy   e. Business-level strategy
  e. Delivering value
13. Ford's decision to completely redesign its Ford Taurus can
6. When AT&T decided to buy Media One, a cable company, it be classified as a:
was pursuing a(n) _____ strategy.   a. corporate level strategy.
  a. functional-level: how do we support the business-   b.  business level strategy.
level strategy? (finance, R&D, manufacturing, marketing)   c.  functional level strategy.
  b. internal growth   d. retrenchment strategy.
  c.  multi-domestic   e. stability strategy.
  d.  corporate-level: what business are we in?
  e. business-level: how do we compete? (media unit, 14. Janessa is the CEO of a privately-held software company.
consumer products unit, biotechnology unit) In defining corporate-level strategies, which of the following
questions would she most likely be concerned with?
7. _____ level strategy pertains to the major functional   a. How do we compete?
departments within the business unit.   b.  What business are we in?
  c.  How does marketing support the business?
  d. How can we maximize profits?
  e. How can we make manufacturing processes more
efficient?
15. Decisions regarding the proper amount of advertising for
a particular good or service are related to:
  a. corporate-level strategies.
  b. functional-level strategies.
  c.  tactical-level strategies.
  d.  business-level strategies.
  e. retrenchment strategies.
16. Which of these questions is central to a functional-level
strategy?
  a. What business are we in?
  b.  How do we compete?
  c. How do we support our chosen strategy?
  d.  What business do we buy?
  e. Where to market our products?
17. Which of the following lists the strategic management
process in proper order?
  a. Formulate strategy; Evaluate strategy; Perform SWOT
analysis; Define new mission/goals; Execute strategy; Control
strategy.
  b. Perform SWOT analysis; Evaluate current
mission/goals; Formulate strategy; Execute strategy; Define
new mission/goals.
  c.  Evaluate current mission/goals; Define new
mission/goals; Formulate strategy; Execute strategy; Perform
SWOT analysis .
  d.  Evaluate current mission/goals; Perform SWOT
analysis; Define new mission/goals; Formulate strategy;
Execute strategy.
  e. Define new mission/goals; Execute strategy;
Formulate strategy; Evaluate new mission/goals; Perform
SWOT analysis.
18. _____ refers to the use of managerial tools to direct
resources toward the achievement of strategic goals.
  a. Strategy formulation
  b.  Strategy coordination
  c. Strategy execution
  d.  Strategy control
  e. Strategy planning
19. Which of the following refers to the planning and decision
making that lead to the establishment of the organization's
goals and of a specific strategic plan?
  a. Strategy formulation
  b.  Strategy implementation
  c.  Strategy coordination
  d.  Strategy control
  e. SWOT
20. Fred has been assigned to conduct a SWOT analysis for his
organization, Acme, Inc. As part of this assignment, Fred will:
  a. conduct an external wage survey.
  b.  search for the strengths, weaknesses,
opportunities, and threats that impact his firm.
  c.  choose a grand strategy for his firm.
  d. do a cost/benefit analysis.
  e. develop a mission.
21. Techniques used to monitor external environments
include:
  a. hiring scanning organizations.
  b.  hiring the competitive intelligence professionals.
  c.  government reports.
  d.  professional journals.
  e. all of these.
22. Classy Clay has extremely creative employees who, in the
opinion of the organization, keep the company ahead of the
competition. The creativity of these employees would be
classified as a(n) _____.
  a. internal weakness
  b. external opportunity
  c.  external strength
  d.  internal strength
  e. neutral factor
23. Paramount, Inc. is particularly concerned about pending
legislation in Congress that would further regulate their
organization. This legislation would be classified as a(n)
_____.
  a. external opportunity
  b.  internal strength
  c. external threat
  d.  external weakness
  e. congressional chaos
24. Sherri has been asked to participate on a cross-functional
task force that is charged with performing an audit checklist
for her advertising firm. The task force will analyze
organizational strengths and weaknesses as they apply to the
firm. Sherri’s task is to analyze management quality, staff
quality, degree of centralization, and organizational charts.
This level of analysis pertains to which area of the audit?
  a. Management and organization
  b.  Marketing
  c.  Human resources
  d.  Research and development
  e. Production
25. Where does the information about opportunities and
threats comes from?
  a. An analysis of the organization's internal environment
  b.  A department by department study of the
organization
  c. Scanning the external environments
  d.  Employee grievances
  e. Financial ratios of the organization
26. What type of organizational unit has a unique business
mission, product line, competitors, and markets relative to
other units in the same corporation?
  a. Product unit   e. moderate market share in a slow growth industry.
  b.  Functional unit
  c. Strategic business unit 33. Which of the following portfolio categories is made up of
  d.  Operational unit poor performers who command only a small share of a slow
  e. Business consulting group unit growth market?
  a. Star
27. How business units and product lines fit together in a   b. Cash cow
logical way is the essence of:   c.  Question mark
  a. business-level strategy.   d.  Dog
  b.  portfolio strategy.   e. Cat
  c.  competitive strategy.
  d. financial strategy. 34. The question mark has a:
  e. functional strategy.   a. large market share in a rapidly growing industry.
  b.  large market share in a slow growth industry.
28. Gatekeep Utilities is a subsidiary of GW Enterprises.   c. small market share in a rapidly growing industry.
Gatekeep has a mission and product line that is unique from   d.  small share of a slow growth market.
GW. Gatekeep’s competitors are also very different from   e. moderate market share in a slow growth industry.
those of its parent, and the subsidiary markets to a very
different group of customers. As such, Gatekeep can be 35. Which of these is true about the dog division?
described as a(n) _____.   a. It has a large market share in a rapidly growing
  a. product unit industry.
  b. functional unit   b. It has a large market share in a slow growth industry.
  c.  operational unit   c.  It has a small market share in a rapidly growing
  d.  strategic business unit industry.
  e. boston consulting group unit   d.  It has a small share of a slow growth market.
  e. It has a moderate market share in a rapidly growing
29. The BCG matrix organizes along which of the following industry.
dimensions?
  a. Market share and profit 36. Gillette operates numerous strategic business units. Most
  b.  Sales and market share of its units in the personal care division have low market
  c. Business growth rate and market share share but high business growth. These units are classified as
  d.  Business growth rate and profit _____.
  e. Sales and profits   a. dogs
  b.  question marks
30. Double Click, Inc. has a number of strategic business units.   c.  stars
Their hand-held computer unit has a large market share in   d. cash cows
this rapidly growing industry. Their hand-held computer   e. none of these
business would be classified as:
  a. a dog. 37. According to the BCG Matrix, which of the following exists
  b.  a star. in a mature, slow-growth industry, but is a dominant business
  c.  a question mark. in the industry, with a large market share?
  d. a cash cow.   a. Question mark
  e. stuck in the middle.   b.  Asterisk
  c.  Dog
31. Which of these is true about the cash cow?   d.  Star
  a. It generates tremendous profits in a rapidly growing   e. Cash cow
industry.
  b. It has a small market share in a rapidly growing 38. When an organization expands into a totally new line of
industry. business, it is implementing a strategy of:
  c.  It has a small market share in a slow growth industry.   a. Related diversification
  d.  It has a large market share in a slow growth   b.  Unrelated diversification
industry.   c.  Cross-functional diversification
  e. It is generally a dead business that should be divested.   d. Product line diversification
  e. Industry diversification
32. The star has a:
  a. large market share in a rapidly growing industry. 39. Semway, a regional bank, recently announced that it
  b.  large market share in a slow growth industry. would soon begin offering financial planning services. This is
  c.  small market share in a rapidly growing industry. an example of which of these?
  d.  small share of a slow growth market.   a. Related diversification
  b.  Unrelated diversification   a. cost leadership
  c.  Cross-functional diversification   b.  differentiation
  d.  Product line diversification   c.  focus
  e. Industry diversification   d.  internal growth
  e. liquidation
40. The purpose of _____ is to expand the firm’s business
operations to produce new kinds of valuable products and 47. The human resource department at Paula's Powerwheels
services? is implementing a number of functional level strategies.
  a. retrenchment These strategies include focusing on ways to retain and
  b.  diversification develop a stable work force and ways to improve efficiency in
  c.  liquidation the organization. These functional-level strategies are
  d. cash cow consistent with which of the following strategies?
  e. internal growth   a. Cost leadership
  b.  Differentiation
41. Which of the following strategies refers to moving into a   c.  New product development
new business that is related to the company's existing   d.  New market development
business activities?   e. Divestiture
  a. Horizontal integration
  b. Vertical integration: expands into businesses that 48. With a(n) _____ strategy, the organization concentrates
supply to the business or are distributors on a specific regional market or buyer group.
  c.  Unrelated diversification   a. cost leadership
  d.  Related diversification   b.  differentiation
  e. Strategic partnership   c. focus
  d.  internal growth
42. All of the following are Porter's competitive forces except:   e. liquidation
  a. differentiation.
  b.  bargaining power of buyers. 49. Mingles, Inc. concentrates its efforts on its target market
  c.  bargaining power of suppliers. of 18 to 25 year olds. It is using a(n) _____ strategy.
  d.  threat of substitute products.   a. focus
  e. potential new entrants.   b.  differentiation
  c.  cost leadership
43. Which of the following is NOT one of Porter's competitive   d.  multidomestic
forces?   e. universal strategy
  a. Potential new entrants
  b.  Bargaining power of suppliers 50. General Products Inc. is a small clothing designer and
  c. Bargaining power of stockholders manufacturer located in the United States. A vast majority of
  d.  Bargaining power of customers the company’s revenues comes from U.S. sales, although
  e. Rivalry among competitors about ten percent of the company’s revenue come from sales
to Canada. General Products Inc. can best be described as
44. Which of the following strategies involve an attempt to using which global corporate strategy?
distinguish the firm's products or services from others in the   a. Globalization strategy: think global act global
industry?   b.  Multidomestic strategy: think local act local
  a. Cost leadership   c. Export strategy: domestically focused
  b.  Differentiation   d.  Transnational strategy: think global act local
  c.  Focus   e. Domestic strategy
  d. Internal growth
  e. Liquidation 51. FLY Industries is a global conglomerate company
headquartered in the United States that does business in over
45. Which strategy can be profitable for an organization when fifty countries. The company seeks to balance global
customers are loyal and willing to pay high prices? efficiencies and local responsiveness by hiring locally as well
  a. Focus as from home. It can best be described as using which global
  b. Globalization corporate strategy?
  c.  Overall cost leadership   a. Globalization strategy
  d.  Differentiation   b. Multidomestic strategy
  e. Liquidation   c.  Export strategy
  d.  Transnational strategy
46. The _____ strategy involves seeking efficient facilities,   e. Domestic strategy
cutting costs and using tight cost controls to be more efficient
than competitors.
52. If ABC International has standardized its product line   b.  Structural design
throughout the world it is pursuing a:   c.  Human resources
  a. multidomestic strategy.   d.  Information and control systems
  b. retrenchment strategy.   e. Compensation
  c.  diversity strategy.
  d.  globalization strategy. 59. Which of the following is NOT one of the tools used for
  e. liquidation strategy. putting strategy into action?
  a. Visible leadership
53. The assumption that a single global market exists would   b.  Diversification
lead to a:   c.  Human Resources
  a. globalization strategy.   d. Communication
  b.  multidomestic strategy.   e. Clear roles and accountability
  c.  diversity strategy.
  d.  domestic strategy. 60. People need to understand how their individual actions
  e. liquidation strategy. can contribute to achieving an organizational strategy. This
can be accomplished by delegating authority, creating teams,
54. Which of the following strategies would be appropriate and defining roles. These actions are part of which tool for
when the need for both national responsiveness and global putting strategy into action?
integration is low?   a. Visible leadership
  a. Globalization   b. Candid communication
  b.  Multidomestic   c.  Human resources
  c. Export: exports a few domestically produced   d.  Clear roles and accountability
products to selected countries   e. Bargaining power of employees
  d.  Transnational
  e. Import 61. The _____ function recruits selects, trains, transfers,
promotes, and lays off employees to achieve strategic goals.
55. _____ refers to the modification of product design and   a. production
advertising strategies to suit the specific needs of individual   b.  leadership
countries.   c.  information and control systems
  a. Domestic strategy   d.  structural design
  b. Global strategy   e. human resource
  c.  Transnational strategy
  d.  Multidomestic strategy: handle markets
independently for each countrise
  e. Market design strategy

56. 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: seek global efficiencies and
local responsiveness
  d.  Multidomestic strategy
  e. Region design strategy

57. 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

58. Persuasion, motivation, and changes in cultures and

values are examples of which of the dimensions used to
implement strategy?
  a. Leadership: motivate ppl, shape culture and values,
model desired behaviors