Archive for June 2018

According to journalists' findings, what is a serious obstacle for many small business owners?

According to journalists' findings, what is a serious obstacle for many small business owners?




A) A lack of business ethics
B) An excess of employees and managerial staff
C) A lack of experience in networking
D) A lack of strategic-management knowledge
E) Having too many suppliers


Answer: D) A lack of strategic-management knowledge

Which of the following is NOT a reason joint ventures fail?

Which of the following is NOT a reason joint ventures fail?



A) Managers who must collaborate daily in operating the venture are not involved in forming or shaping the venture.
B) The venture may not be supported equally by both partners.
C) The venture may benefit the partnering companies but may not benefit the customers who then complain about poorer service or criticize the companies in other ways.
D) Stakeholders from both partners are equally satisfied.
E) The venture may begin to compete more with one of the partners than the other.



Answer: D) Stakeholders from both partners are equally satisfied.

All of the following are cooperative arrangements EXCEPT

All of the following are cooperative arrangements EXCEPT




A) R&D partnerships
B) joint-bidding consortia
C) cross-licensing agreements
D) cross-manufacturing agreements
E) marketing plans


Answer: E) marketing plans

Under which condition would a differentiation strategy be especially effective?

Under which condition would a differentiation strategy be especially effective?



A) when the target market niche is large, profitable and growing
B) when technological change is fast paced and competition revolves around rapidly evolving product features
C) when industry leaders do not consider the niche to be crucial to their own success
D) when the industry has many different niches and segments, thereby allowing a company to pick a competitively attractive niche suited to its own resources
E) when few, if any, other rivals are attempting to specialize in the same target segment Under which condition would a differentiation strategy be especially effective?


Answer:

A) when the target market niche is large, profitable and growing
B) when technological change is fast paced and competition revolves around rapidly evolving product features

Under which condition would a cost leadership strategy be especially effective?

Under which condition would a cost leadership strategy be especially effective?




A) when there are many ways to differentiate the product or service and many buyers perceive these differences as having value
B) when buyer needs and uses are diverse
C) when few rival firms are following a similar approach
D) when technological change is fast paced and competition revolves around rapidly evolving product features
E) when the products of rival sellers are essentially identical and supplies are readily available from any of several eager sellers


Answer: E) when the products of rival sellers are essentially identical and supplies are readily available from any of several eager sellers

Retrenchment would be an effective strategy when an organization

Retrenchment would be an effective strategy when an organization




A) has shrunk so quickly that major internal reorganization is needed.
B) is one of the stronger competitors in a given industry.
C) is plagued by inefficiency, low profitability, poor employee morale and pressure from stockholders to improve performance.
D) has decided to capitalize on opportunities, maximize threats, take advantage of strengths and overcome weaknesses.
E) does not have a clearly distinctive competence and has failed to meet its objectives and goals consistently over time.


Answer: C) is plagued by inefficiency, low profitability, poor employee morale and pressure from stakeholders to improve performance.

Bankruptcy

Bankruptcy





A) should never be used as a strategy.
B) should be used only when one is legally forced to do so.
C) can be an effective type of retrenchment strategy.
D) should only be used for large firms.
E) should only be used for small, private firms.


Answer: C) can be an effective type of retrenchment strategy.

What kind of strategy is retrenchment?

What kind of strategy is retrenchment?



A) A turnaround strategy
B) An expansion strategy
C) A diagonal strategy
D) An intensive strategy
E) An offensive strategy


Answer: A) A turnaround strategy

Many more firms have failed at ________ than have succeeded due to the immense challenge of managing businesses in many industries rather than in a single industry.

Many more firms have failed at ________ than have succeeded due to the immense challenge of managing businesses in many industries rather than in a single industry.




A) forward integration
B) related diversification
C) backward integration
D) unrelated diversification
E) horizontal integration


Answer: D) unrelated diversification

Which of the following is NOT a guideline for when an organization should use an unrelated diversification strategy?

Which of the following is NOT a guideline for when an organization should use an unrelated diversification strategy?




A) when revenues derived from an organization's current products or services would increase significantly by adding the new unrelated, products
B) when an organization's present channels of distribution can be used to market the new products to current customers
C) when the new products have countercyclical sales patterns compared to an organization's present products
D) when an organization competes in a highly competitive and/or a no-growth industry
E) when existing markets for an organization's present products are not yet saturated


Answer: E) when existing markets for an organization's present products are not yet saturated

Tyson Foods opening a manufacturing plan that makes diesel and jet fuel from chicken fat, beef tallow, and leftover food grease from the firm's meat-processing plants is an example of

Tyson Foods opening a manufacturing plan that makes diesel and jet fuel from chicken fat, beef tallow, and leftover food grease from the firm's meat-processing plants is an example of




A) backward integration.
B) divestiture.
C) retrenchment.
D) unrelated diversification.
E) forward integration.


Answer: D) unrelated diversification.

All of the following situations are conducive to market development EXCEPT

All of the following situations are conducive to market development EXCEPT




A) when new channels of distribution are expensive and unreliable
B) when an organization is very successful at what it does
C) when new untapped or unsaturated markets exist
D) when an organization has excess production capacity
E) when an organization's basic industry is becoming rapidly global in scope


Answer: A) when new channels of distribution are expensive and unreliable

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

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


Answer: 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

Backward integration is effective in all of these cases EXCEPT

Backward integration is effective in all of these cases EXCEPT




A) when an organization competes in an industry that is growing rapidly
B) when an organization has both capital and human resources to manage the new business of supplying its own raw materials
C) when an organization needs to acquire a needed resource quickly
D) when the advantages of stable prices are not important
E) when present suppliers have high profit margins


Answer: D) when the advantages of stable prices are not important

Hawaiian Airlines beginning to offer flights from Hawaii to Seoul, Korea, and Tokyo, Japan, rather than mostly flying to and from the U.S. mainland, is an example of which type of strategy?

Hawaiian Airlines beginning to offer flights from Hawaii to Seoul, Korea, and Tokyo, Japan, rather than mostly flying to and from the U.S. mainland, is an example of which type of strategy?




A) Forward integration
B) Backward integration
C) Horizontal integration
D) Market development
E) Product development


Answer: D) Market development

Starbucks reaching a deal with Green Mountain Coffee Roasters for that firm to sell packs of Starbucks Tazo-branded coffee and tea in their brewers is an example of which type of strategy?

Starbucks reaching a deal with Green Mountain Coffee Roasters for that firm to sell packs of Starbucks Tazo-branded coffee and tea in their brewers is an example of which type of strategy?




A) Forward integration
B) Backward integration
C) Horizontal integration
D) Related diversification
E) Unrelated diversification


Answer: A) Forward integration

Financial objectives involve all of the following EXCEPT

Financial objectives involve all of the following EXCEPT



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


Answer: B) larger market share

The IFE Matrix should be ________ in multidivisional firms.

The IFE Matrix should be ________ in multidivisional firms.



A) constructed for each division
B) all-inclusive
C) constructed only for the major divisions
D) developed before the EFE Matrix
E) revised monthly


Answer: A) constructed for each division

Which of the following is the first step in developing an IFE Matrix?

Which of the following is the first step in developing an IFE Matrix?




A) Determining the organization's structure
B) Summing the weighted scores for each variable
C) Identifying the organization's strengths and weaknesses
D) Identifying the organization's functions of business
E) Assigning a weight to each factor


Answer: C) Identifying the organization's strengths and weaknesses

The process whereby a firm determines the costs associated with organizational activities from purchasing raw materials to manufacturing products to marketing those products is called

The process whereby a firm determines the costs associated with organizational activities from purchasing raw materials to manufacturing products to marketing those products is called




A) the resource-based approach.
B) value chain analysis.
C) strategic cost analysis.
D) the internal factor evaluation matrix.
E) cost-benefit analysis.


Answer: B) value chain analysis.

______ is a commonly used approach to determine R&D budget allocations.

______ is a commonly used approach to determine R&D budget allocations.



A) Financing as many project proposals as possible
B) Using the percentage of sales method
C) Budgeting for R&D about what competitors spend
D) Deciding how many successful new products are needed
E) All of the above


Answer: E) All of the above

Which ratio would be considered an activity ratio?

Which ratio would be considered an activity ratio?



A) Debt-to-equity
B) Net profit margin
C) Average collection period
D) Earnings per share
E) Current ratio



Answer: C) Average collection period

Which of the following is NOT a key question that can reveal internal strengths and weaknesses of the marketing department?

Which of the following is NOT a key question that can reveal internal strengths and weaknesses of the marketing department?



A) Does the firm have an effective sales organization?
B) Is our product quality good?
C) Are markets segmented effectively?
D) Are the firm's products and services priced appropriately?
E) Does the firm have good liquidity?


Answer: E) Does the firm have good liquidity?

The Robinson-Patman Act affects a company's

The Robinson-Patman Act affects a company's




A) pricing.
B) product/service planning.
C) customer analysis.
D) marketing research.
E) distribution.


Answer: A) pricing.

What marketing function includes test marketing?

What marketing function includes test marketing?



A) Selling products/services
B) Pricing
C) Customer analysis
D) Product/service planning
E) Distribution


Answer: D) Product/service planning

All of the following are basic functions of marketing EXCEPT

All of the following are basic functions of marketing EXCEPT



A) value chain analysis
B) customer analysis
C) product and service planning
D) pricing
E) distribution


Answer: A) value chain analysis

Opportunity analysis is one of the basic functions of

Opportunity analysis is one of the basic functions of




A) marketing.
B) finance/accounting.
C) computer information systems.
D) production/operations.
E) research and development.



Answer: A) marketing.

All of the following are key questions that can reveal internal strengths and weaknesses in the management department EXCEPT

All of the following are key questions that can reveal internal strengths and weaknesses in the management department EXCEPT



A) Is the organization's structure appropriate?
B) Are reward and control mechanisms effective?
C) Are the organization's products positioned well against competing products?
D) Does the firm use strategic-management concepts?
E) Do managers delegate authority well?



Answer: C) Are the organization's products positioned well against competing products?

The first step in the controlling function of management is to

The first step in the controlling function of management is to



A) take corrective actions.
B) restrict the number of breaks employees take.
C) evaluate expense reports.
D) establish performance standards.
E) measure individual and organizational performance.


Answer: D) establish performance standards.

A pattern of behavior developed by an organization as it learns to cope with its problems of external adaptation and internal integration, and that has worked well enough to be considered valid and to be taught to new members as the correct way to perceive, think, and feel is called

A pattern of behavior developed by an organization as it learns to cope with its problems of external adaptation and internal integration, and that has worked well enough to be considered valid and to be taught to new members as the correct way to perceive, think, and feel is called



A) dysfunctional behavior.
B) groupthink.
C) behavior modification.
D) organizational culture.
E) internal audit effect.


Answer: D) organizational culture.

Who should perform an internal audit?

Who should perform an internal audit?



A) A private auditing firm
B) The organization's accounting department
C) Representative managers and employees from throughout the firm
D) A small team of top-level managers
E) The chief executive officer


Answer: C) Representative managers and employees from throughout the firm

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