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

When companies take over functional operations of other firms, such as human resources, information systems, payroll, accounting, or customer service, this is called

When companies take over functional operations of other firms, such as human resources, information systems, payroll, accounting, or customer service, this is called

A) marketing.
B) outsourcing.
C) licensing.
D) franchising.
E) divestiture.


Answer: B) outsourcing.

Which strategy would be most appropriate when the distinctive competencies of two or more firms complement each other especially well?

Which strategy would be most appropriate when the distinctive competencies of two or more firms complement each other especially well?

A) Conglomerate diversification
B) Divestiture
C) Joint venture
D) Retrenchment
E) Integration


Answer: C) Joint venture

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

According to Porter, which strategy offers products or services to a niche group of customers at the lowest price available on the market?

According to Porter, which strategy offers products or services to a niche group of customers at the lowest price available on the market?

A) Cost Leadership - Low Cost
B) Cost Leadership - Best Value
C) Focus - Low Cost
D) Focus - Best Value
E) Differentiation


Answer: C) Focus - Low Cost

Under which strategy would you offer products or services to a wide range of customers at the lowest price available on the market?

Under which strategy would you offer products or services to a wide range of customers at the lowest price available on the market?

A) Cost Leadership - Low Cost
B) Cost Leadership - Best Value
C) Focus - Low Cost
D) Focus - Best Value
E) Differentiation


Answer: B) Cost Leadership - Best Value

Which strategy would be effective when the stockholders of a firm can minimize their losses by selling the organization's assets?

Which strategy would be effective when the stockholders of a firm can minimize their losses by selling the organization's assets?

A) Integration
B) Differentiation
C) Diversification
D) Cost leadership
E) Liquidation


Answer: E) Liquidation

Selling all of a company's assets, in parts, for their tangible worth is called

Selling all of a company's assets, in parts, for their tangible worth is called

A) joint venture.
B) divestiture.
C) concentric diversification.
D) liquidation.
E) unrelated integration.


Answer: D) liquidation

Which strategy should be implemented when a division is responsible for an organization's overall poor performance?

Which strategy should be implemented when a division is responsible for an organization's overall poor performance?

A) Backward integration
B) Divestiture
C) Forward integration
D) Cost leadership
E) Related diversification


Answer: B) Divestiture

Which term refers to selling a division of an organization?

Which term refers to selling a division of an organization?

A) Joint venture
B) Divestiture
C) Concentric diversification
D) Liquidation
E) Horizontal integration


Answer: B) Divestiture

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

Borders closing 200 of its 488 superstores and laying off 6,000 of its 19,500 employees is an example of

Borders closing 200 of its 488 superstores and laying off 6,000 of its 19,500 employees is an example of

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


Answer: D) retrenchment.

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.