First Exam

Question 0

Business policy composed of?

Answer 0

Competitive and cooperative strategy

Question 1

Business policy focuses on?

Answer 1

Improving the competitive position of a corporation’s products and services within the industry or market segment served

Question 2

Which of the following is not one of the question that development of competitive strategy should raise?

Answer 2

Should we compete by garnering political support of influential leaders.

Question 3

When lower cost and differentiation strategies have a broad mass-market target, they are simply called.

Answer 3

Cost leadership differentiation

Question 4

The focus strategies will likely predominate when many small & medium sized local companied compete for relative small shares of the total market in a?

Answer 4

Fragmented industry

Question 5

As an industry matures while overcoming fragmentation

Answer 5

Consolidated industry

Question 6

As an industry becomes hyper-competitive, firms initially responded by:

Answer 6

Competition on cost and quality

Question 7

Which of the following is NOT an advantage of being first mover?

Answer 7

First mover may be able to keep R&D cost low by imitating the technological advances of others.

Question 8

Which offensive tactic utilizes a head to head approach with the firm competitor by matching every category of competition from price to promotion to distribution channel?

Answer 8

Frontal assault

Question 9

Which offensive tactic proposes an indirect approach against the established competitor such as changing the rules of the game?

Answer 9

Bypass attack

Question 10

Which offensive tactic usually occurs as an attacking company surrounds the competitor position in terms of products or markets or both?

Answer 10

Encirclement

Question 11

The two general types of cooperative strategies are?

Answer 11

Strategic alliances collusion.

Question 12

Which of the following is NOT a reason companies or business units may form a strategic alliance?

Answer 12

To build new facilities.

Question 13

An agreement in which a firm grants rights to another firm in another country or market to produce and sell a product is known as a _____?

Answer 13

Licensing arrangement

Question 14

The kind of tragic alliance in which a company forms a strong and close long-term relationship for mutual advantage with a key supplier or distributor is the?

Answer 14

Value-chain partnership

Question 15

Which external growth strategy occurs when a corporation is completely absorbed as an operating subsidiary or division of the acquiring firm?

Answer 15

Acquisitions.

Question 16

Which external growth strategy is a partnership of two or more corporations or business units to achieve mutually beneficial strategic objective?

Answer 16

Strategic alliances

Question 17

The most logical strategy for a corporation having a strong competitive position possessing a high market share in a highly attractive industry is.

Answer 17

Concentration

Question 18

The purpose of vertical growth is to _____?

Answer 18

Take over a function previously supplied by a former employer

Question 19

The theory that proposes that vertical integration is more efficient than contracting for goods and services in the marketplace when the transaction costs of buying goods on the open market becomes too great is known as……?

Answer 19

Transaction cost economics

Question 20

In many cases, _______ integration is more profitable than ________ integration.

Answer 20

Backward, forward.

Question 21

When a firm internally makes 100% of its key supplies and completely control its distribution, this is known as?

Answer 21

Full integration

Question 22

All of the following factors reflect transaction costs Except?

Answer 22

Selling a market agreement

Question 23

As defined by the text, synergy is the concept

Answer 23

That two firms can generate more profits together than separately.

Question 24

Adding a related or complementary product to a corporation's business units is called?

Answer 24

Concentric diversification

Question 25

Growth through diversification out of an industry into an unrelated industry is called?

Answer 25

Conglomerate diversification

Question 26

An MNC uses which international strategy for entering a foreign market by associating itself with a firm in the host country or a government agency in that country to combine resources and expertise needed for the development of a new product or technologies?

Answer 26

Joint ventures

Question 27

An MNC uses which international strategy for entering a foreign market by combining the higher labor skills and technology available in the developed countries with the lower cost labor available in the developing countries?

Answer 27

Production sharing

Question 28

In international dealings, turnkey operations are?

Answer 28

Typically contracts for construction of operating facilities in exchange for a fee.

Question 29

Which strategy is most appropriate as a temporary strategy to enable a corporation to consolidate its resources after prolonged rapid growth in an industry now facing an uncertain future?

Answer 29

Pause/proceed with caution strategy

Question 30

Which strategy is descriptive of a corporation in a mature industry facing a drop in its attractiveness, opting to decrease short term discretionary expenses to maintain profit as a certain level?

Answer 30

Profit strategy

Question 31

Which strategy is most appropriate for a corporation having a weak competitive position regardless of the industry attractiveness resulting in poor performance decreased sales and lost profits.

Answer 31

Retrenchment strategy

Question 32

What is a turnaround strategy?

Answer 32

Emphasized improving operational efficiency and is appropriate when the corporation problems are pervasive but not yet critical.

Question 33

The hope of which strategy is that another company will have the necessary resources and determination to return the company to profitability?

Answer 33

Sell out

Question 34

Which strategy involves giving up management of the firm to the court in return for some settlement of the corporation obligations?

Answer 34

Bankruptcy

Question 35

Products that typically bring in far more money than is needed for maintenance of their market share are called?

Answer 35

Cash cow

Question 36

Those products with low Market share that do not have potential to bring in much cash are called?

Answer 36

Dogs

Question 37

A corporate strategy that cuts across divisional boundaries to build synergy across business units to improve the competitive position of one or more business units is called?

Answer 37

Horizontal strategy

Question 38

Which of the following is an example of a marketing functional strategy?

Answer 38

To manipulate advertising expenditures to emphasize market "pull" over "push"

Question 39

The types of marketing in which a company captures a larger share of an existing products through market saturation or market penetration or develops new markets for current market is called?

Answer 39

Market development

Question 40

A popular financial strategy in which a company is acquired in a transaction financed largely by debt that eventually paid off with money generated from the acquired companies operation or by sale of its assets is?

Answer 40

The leverage buyout

Question 41

Leverage buyout are also referred to as?

Answer 41

Management buyout

Question 42

A common stock tied to one portion of a corporation business is known as?

Answer 42

Tracking stocks

Question 43

According to Porter, to achieve a differentiation competitive strategy by following the functional strategy of technological leadership a business unit should

Answer 43

Innovate in other activities to increase buyer value

Question 44

If the company wishes to be technological leader and also pursue a differentiation strategy the appropriate R&D strategy would be

Answer 44

Innovate in other activities to increase buyer value

Question 45

Continuous improvement is an operation concept Developed in?

Answer 45

Japan

Question 46

The manufacturing strategy which requires the people, processes, units and technology reconfigure themselves to give customers exactly what they want, when they want is called?

Answer 46

Mass customization

Question 47

The purchasing strategy in which purchasing company orders a particular part from several vendors is?

Answer 47

Multiple sourcing

Question 48

The concept of _______ was taken one step further in Fitjii in which vendor sales representatives usually have desks next to the purchasing company factory floor, attend production status meetings, visits the R&D lab and analyze the purchasing company sales forecasts.

Answer 48

Sole sourcing

Question 49

The flow of products into and out of manufacturing is a factor when developing a ________ strategy

Answer 49

Logistics

Question 50

It is advisable to have management from all levels participate in this strategy formulation process

Answer 50

To gain an insight as to what works need to be done and to gain cooperation in the implementation of the strategy

Question 51

The term used in strategic implementation that describes a statement of activities or steps needed to accomplish a single use plan and whose use is to make the strategy action oriented is

Answer 51

Program

Question 52

When the return on investment for each division of a corporation is greater than what the return would be if each division were an independent business, that corporation is said to have achieved

Answer 52

Synergy

Question 53

All of the following are changing structural characteristics of the old organizations EXCEPT?

Answer 53

Cross-functional work teams

Question 54

Which structure is often called a virtual organization?

Answer 54

Network structure

Question 55

Which of the following is not descriptive of a network structure?

Answer 55

The network structure typically is located in a large, single building or areas with many work projects in operation on the site

Question 56

An organization which is composed of cells that can operate alone but that can interact with other cells to product a more potent and competent business mechanism if referred to as a

Answer 56

Cellular organzation

Question 57

The radical redesign of business processes to achieve major gains in cost, service, or time is called?

Answer 57

Reengineering

Question 58

Which of the following is not a part of reengineering?

Answer 58

Determines internal as well as external customer

Question 59

Which component of the job characteristics model provides workers information on how they are performing?

Answer 59

Open feedbacks Channel

Question 60

Which type of chief executive officer would be appropriate for a corporation that cannot be saved and might be facing bankruptcy and needs to close the firm or liquidate its assets?

Answer 60

Professional liquidator

Question 61

How does Pestel theory differentiate fro the Swot theory when analyzing a company. Some of quantitative factors tend to be similar, name of the closet pairing.

Answer 61

Economic, opportunities

Question 62

The concept of continuous improvement is part of

Answer 62

Total quality management

Question 63

What does MBO Stand for?

Answer 63

Management by objectives

Question 64

Which method of managing disparate cultures is the most common and most destructive method of dealing with two different cultures because one company imposes its demands at the expense of another company's culture?

Answer 64

Deculturation