 DI SURE ANG ANG ANSWER

ANSWER SANG MGA SOURCE (1); SOURCE (2)

1. Financial objectives involve all of the following except:

A.) larger market share
B) growth in revenues.
C) higher dividends.
D) greater return on investment.
E) a rising stock price.

2. Development of new products after competitors.

False

3. A management information system receives raw material from both the external
and internal evaluation of an organization
True

4. (Refer to Midterm 2 case) the EFE Matrix is 

2.69
1.0
2.92

5. (Refer to Midterm 2 case) IE Matrix, IFE Matrix is 2.50, EFE Matrix is 2.90, what will
be the strategy to be used
Harrest or direst
Hold and maintain
Grow & build

6. The financial activities represent the largest part of an organization’s human and
capital assets.
 FALSE

7. (Refer to Midterm 2 case) The total CPM for Merck is

37
20
3.16

8. Win-Dixie closing one-third of its stores and eliminating 22,000 jobs in an attempt to
emerge from bankruptcy would be an example of:
Retrenchment
divestiture.
backward integration.
liquidation.
forward integration.

9. Which strategy seeks to increase market share of present products or services in

present mar-kets through greater marketing efforts?
Market Penetration
forward integration
market development
backward integration
product development

10. Multiply each factor’s weight by its rating to determine a weighted score for each
variable.
True

11. What kind of strategy is retrenchment?

A turnaround or reorganization strategy
An expansion strategy
A conglomerate strategy
An intensive strategy
An offensive strategy
12. (Refer to Midterm 2 case)Under Grand Strategy Matrix if it falls in Quadrant I, what
strategy will you adopt? 
Market Development
Divestiture
Retrenchment

13. Which of the following is most likely not included in the functional level of a small
company?
Department managers
Finance managers
HR managers
Marketing managers

14. The functions of management are planning, organizing, motivating, staffing, and
controlling.
True

15. When a domestic company first begins to export to India, it is an example of

Market Development
horizontal integration.
backward integration.
forward integration.
concentric diversification.

16. Long-term objectives are needed at the ____________ of an organization.

corporate, divisional, and functional levels
Corporate
Divisional
Functional
Corporate and divisional levels, but not functional level
17. Which strategy would be effective when the new products have a counter cyclical
sales pattern compared to an organization's present products?
Forward Integration
Retrenchment
Horizontal diversification
Market penetration

18. Which strategy generally entails large research and development expenditures?
Product Development
Forward integration
Market penetration
Retrenchment

19. Which of the following is not an example of when an organization should use an
unrelated diversification strategy?
When the organization has a strong management team
When revenues derived from an organization’s current products or services would
increase significantly by adding the new unrelated, products.
When an organization’s present channels of distribution can be used to market the
new products to current customers.
When the new products have counter-cyclical sales patterns compared to an
organization’s present products.
When an organization competes in a highly competitive and/or a no-growth industry.

20. Integration strategies are sometimes collectively referred to as which of these

strategies?
Vertical integration
Horizontal integration
Diversification
Stuck-in-the-middle
Hierarchical integration
21. Which strategy would be effective when the new products have a counter cyclical
sales pattern compared to an organization's present products?
Managing by subjectives
Managing by extrapolation
Managing by crisis
Managing by Hope

A. Forward integration
B. Retrenchment
C. Horizontal diversification
D. Market penetration

22. Strategies are designed in part to improve on a firm’s weaknesses, turning them into
strengths, and maybe even into distinctive competencies.
True

23. Of the Five- Factors model of Competition, bargaining power of customers is the
most powerful.
FALSE
24. What refers to a strategy of seeking ownership of, or increased control over a firm's
competitors?
Horizontal integration
Forward integration
Conglomerate diversification
Backward integration
Concentric diversification

25. Two reasons for mergers and acquisitions are

to provide improved capacity utilization and to gain new technology.
to create seasonal trends in sales and to make better use of a new sales force
to reduce tax obligations and increase managerial staff
to increase managerial staff and to minimize economies of scale
26. Competitive Profile Matrix shows the critical success factors which include internal
and external issues of the competitors.
False

27. Adding new, unrelated products or services is called

Unrelated Diversification
related diversification
forward integration
backward integration

28. Which level of strategy is most likely not present in small firms?
Divisional
Company
Functional
Operational
Global

29. (Refer to Midterm 2 case) Using SPACE Matrix strategy, y-axis is

52
14
3.2

30. Budget Rent-a-Car opening car rental shops in Wal-Mart stores is an example of
which type  of strategy?
forward integration
backward integration
related diversification
horizontal integration

31. An example of _____________ strategy is establishing Web sites to sell products

directly to consumers
 forward integration
backward integration
product development
horizontal integration
conglomerate diversification

32. Internal resources come from three categories,(1)physical resources: plant,

equipment, location, technology, raw materials, machines; (2)  Human resources:
employees, training, experience, intelligence, knowledge, skills, abilities; (3) 
Organizational resources: firm structure, planning processes, information systems,
patents, trademarks, copyrights, databases.
True
33. (Refer to Midterm 2 case) IFE Matrix is
45
2.92
2.47

34. (Refer to Midterm 2 case) The Weighted score for Pfizer for organizational structure
is
0.10
0.05
2.05

35. Informing the buyers about sellers’ products, prices, and costs is a condition where
consumers gain bargaining power
True

36. Which of the following is not a guideline for pursuing liquidation?

When the stockholders of the firm can minimize their losses by selling the firm’s
assets
When divestiture has not been successful.
When an organization's only alternative is bankruptcy.
When the organization has successfully pursued retrenchment
37. Goodyear Tire & Rubber Co. selling its North American farm-tire business to Titan
International is an example of which type of strategy?
divestiture  
unrelated diversification
Retrenchment
related diversification
38. (Refer to Midterm 2 case) BCG Matrix, High relative market share in a high growth
industry
cash cow
Stars

39. Speeches at professional or shareholder meetings is an example of published

source of external information.
False

40. Which of these strategies is effective when the number of suppliers is small and the
number of competitors is large?
Horizontal diversification
Conglomerate diversification
Forward integration
Backward integration

41. All of the following situations are conducive to market penetration except
_________.
When the correlation between dollar sales and dollar marketing expenditures
has historically been low
when the usage rate of present customers could be increased significantly

42. (Refer to Midterm 2 case) QSPM total attractiveness score for “acquire a large
pharmaceutical company is
 .88
1.27
2.15

43. In which situation would horizontal integration be an especially effective strategy?

A.) When an organization can gain monopolistic characteristics in a particular
area or region without being challenged by the federal government for
"tending substantially" to reduce competition.
B) when an organization competes in a slowing industry
C) when decreased economies of scale provide major competitive advantages
D) when an organization has neither the capital nor human talent needed to
successfully manage an expanded organization
E) when competitors are succeeding due to managerial expertise or having
particular resources an organization possesses

44. A firm’s liquidity, leverage, working capital, profitability, asset utilization, cash flow,
and equity can eliminate some strategies as being feasible alternatives.
True

45. Product and service planning include activities such as test marketing; product and
brand positioning; devising warranties; packaging; determining product options,
product features, product style, and product quality; deleting old products; and
providing for customer service.
True
46. __________ is adding new, unrelated products or services for present customers.
Conglomerate diversification
Horizontal diversification
Product development
Concentric diversification

47. (Refer to Midterm 2 case) Financial Strength of 4.8 and Industry Strength of 5.2 is in
quadrant
 Defensive
Conservative
Aggressive

48. ______________ is eslling a division of an organization.

Divestiture
Joint venture
Concentric diversification
Liquidation
Horizontal integration

49. Intuitive judgments are required in developing an IFE Matrix, so the appearance of a
scientific approach should not be interpreted to mean this is an all-powerful
technique.
True