10. _______are terms that describe diversification strategies a. Concentric diversification b. conglomerate diversification c. vertical diversification
d. horizontal diversification .
11. Adding new, unrelated products or services is called a. horizontal diversification. b. concentric diversification. c. backward integration. d. conglomerate diversification. 12. An airline eliminating service at 10 major cities to financially survive is an example of______ a. divestiture. b. backward integration. c. liquidation.
d. retrenchment 13. When a division is responsible for an organization’s overall poor performance, _________
strategy should be implemented. a. backward integration b. divestiture c. forward integration d. cost leadership e. concentric diversification
14.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. horizontal integration
15.Defensive strategies includes_________
a. retrenchment b. divestiture. c. diversification. d. liquidation. 16. __________ is effective when the stockholders of a firm can minimize their losses by selling
the organization’s assets. a. Integration b. Differentiation c. Diversification d. Liquidation
17.Ways to pursue Differentiation successfully: ________
a. creating products which are superior to competitors b. building superior distribution channels
c. offering superior after sales service d. creating a strong brand name through design, innovation, advertising, and so on 18. Mergers and acquisitions are created for all of the following reasons except to ________ a. gain new technology. b. reduce tax obligations. c. gain economies of scale. d. increase its number of employees 19.Comprehensive Strategy-Formulation Framework includes: ________
a. the Input Stage b. the Matching Stage. c. the Decision Stage. d. the output Stage.
20.Which of the following are tools in the matching stage________
a. SWOT Matrix b. SPACE Matrix c. BCG Matrix d. IE Matrix e. CPM
21.Improving internal weaknesses by taking advantage of external opportunities is ________strategies
a. WO b. ST c. SO d. WT
22.Two External Dimensions in SPACE matrix are ________
a. Environmental Stability (ES) b. Industry Strength (IS) c. Financial Strength (FS)
d. Competitive Advantage (CA)
23.If a financially strong firm that has achieved major competitive advantages in a growing and stable industry, the firm’s directional vector should be located in the ________quadrant of SPACE matrix a. aggressive b. conservative c. defensive d. competitive
24. A division with a high relative market share position in a low-growth industry can be
described as a________ a. star. b. cash cow. c. question mark. d. dog.
25. When a division of an organization has a high relative market share and is in a fast-growing
industry, it is called a________
a. star. b. cash cow. c. question mark. d. dog
26 Which of these is not an attractive strategy for a cash cow division? ________
a. intensive strategy. b. harvest
c. divestiture d. retrenchment
27.If a firm locates in Cells I, II, or IV in IE Matrix, the firm should pursue __________strategy
a. Grow and build. b. Hold and maintain
c. Harvest or divest d. No above all
Chapter7-8
1. __________ is included in the decision stage of the strategy formulation framework. a. Internal Factor Evaluation Matrix (IFE) b. Quantitative Strategic Planning Matrix (QSPM) c. BCG Business Portfolio Matrix d. Grand Strategy Matrix e. SPACE Matrix
2.Annual Objectives should state __________
a. Quantity b. Quality c. Cost d. Time e. Be Verifiable 3. Three basic activities of strategic evaluation, review & control __________ a. analyzing industry environment
b. Examine the underlying bases of a firm’s strategy c. Compare expected to actual results d. Identify corrective actions to ensure that performance conforms to plans e. analyzing financial ratios
4. Three steps in evaluation framework __________
a. Review underlying bases b. Allocate resources
c. Measure firm performance d. Take corrective actions 5.Balanced Scorecard evaluate strategies from 4 perspectives: __________
a. Financial performance b. Customer knowledge
c. Internal business processes d. Learning & growth e. Macro-economic situation 6. Three ways to manage conflict__________
a. Avoidance b. Diffusion c. Competition d. Coordination e. Confrontation 7. In the process of implementing strategy, change raises anxiety and fear, concerning __________
a. Economic loss b. Inconvenience c. Uncertainty d Break in status-quo e. improving working condition
8. In the process of implementing strategy, change strategies include__________
a. Force Change Strategy b. Educative Change Strategy c. integration strategy d diversification strategy
e. Rational or Self-Interest Change Strategy
True/False
(T)Strategy formulation, implementation and evaluation activities occur at three hierarchical levels in a large diversified organization: corporate, divisional and functional
(T)In order for a firm to achieve sustained competitive advantage, a firm must continually adapt to changes in external trends and events and effectively formulate, implement, and evaluate strategies that capitalize upon those factors.
Chapter 1-2
1.(T) By exploring, learning and piecing together a consistent pattern of behaviour over time, an organization may arrive at the same position as if it had planned everything in detail 2. (T) A clear vision provides the foundation for developing a comprehensive mission statement
3. (F) Mission means “What do we want to become?”
4. (T) Clear vision & mission are needed before alternative strategies can be formulated and
implemented
5. (F) Participation from diverse managers is not important in developing the mission. 6. (T) The vision statement should be short, preferably(更适宜) one sentence
7. (F)If an organization chooses to have both a mission and a vision, the mission statement should be established first, as mission identifies where we are and vision would indicate where we want to go Chapter 3
1. (F)External Audit is to develop an exhaustive list of every possible factor that could influence the business is the aim of external audit.
2. (F)Tourism-oriented firms in the United States are hampered(受妨碍) when the value of the dollar falls
3. (T) The Internet is changing the very nature of many industries by altering product life cycles and changing the historical trade-off between production standardization and flexibility 4. (T)New firms sometimes enter industries with higher-quality products, lower prices and substantial marketing resources, even though there are numerous barriers to entry.
5.(T)The impact of natural events upon business activity can be very powerful and difficult to predict or avoid
6. (T)Both a Competitive Profile Matrix and an EFE Matrix have the same meaning in the weights, ratings and total weighted scores.
7. (T) The critical success factors in a Competitive Profile Matrix are often the same as those in an EFE Matrix.
Chapter 4
1. (T) The process of performing an internal audit, compared to the external audit, provides more opportunity for participants to understand how their jobs, departments and divisions fit into the whole organization.
2. (T) The value chain is composed of value-adding activities and margin
3. (T) Value Chain Analysis can enable a firm to better identify its own strengths and weaknesses especially as compared to competitors’ Value Chain Analyses 4.(T) Firm infrastructure can be a powerful source of CA
5. (T) The value chain is not a collection of independent activities but a system of
interdependent activities.
6. (T)Internal Factor Evaluation Matrix is a summary step when conducting an internal strategic-management audit
7. (T)In competitive terms, value is the amount buyers are willing to pay for what a firm provides them
8(F)The value chain is a collection of independent activities
9. (T)The learning curve describes the relationship between a firm’s cumulative output and amount of inputs needed to produce a unit of output 10.(T)100% learning rate means no learning at all 11. (F)In industry, S typically ranges from 40% to 100%
12.(F)The learning effect can lead to very large reductions in cost and it depends on the size of the individual firm
13.(T)The rate of learning depends on factors such as the quality of management and the potential of the process and products Chapter 5-6