Q&A Hero

Q: Which of the following strategies is designed to increase the scale or scope of a corporation's operations? A) differentiation strategy B) growth strategy C) stability strategy D) retrenchment strategy

Q: A growth strategy is designed to ________. A) guard against organizational change B) increase the scale or scope of a corporation's operations C) support the stability strategies of an organization D) support the retrenchment strategies of an organization

Q: Companies involved in more than one line of business must first formulate a ________ strategy. A) business-level B) department-level C) corporate-level D) global-level

Q: Explain the different ways in which products can be differentiated, providing an example of each.

Q: Explain how a global strategy complements a corporate growth strategy.

Q: Briefly describe the three generic business-level strategies, providing an example of each.

Q: Briefly describe the strategy formulation process of international organizations.

Q: Centralized decision making is beneficial when fast-changing national business environments put a premium on local responsiveness.

Q: A focus strategy works best with mass-marketed products aimed at price-sensitive buyers.

Q: A differentiation strategy is often implemented when a company wants to exploit economies of scale to have the lowest cost structure.

Q: A negative aspect of a low-cost leadership strategy is low customer loyalty.

Q: A low-cost leadership strategy typically requires a company to have a large market share.

Q: The purpose of a combination strategy is to mix growth, retrenchment, and stability strategies across a corporation's business units.

Q: The closing of factories with unused capacity is an example of a stability strategy.

Q: A joint venture is an example of a retrenchment strategy of an organization.

Q: A growth strategy is designed to increase the scale or scope of a corporation's operations.

Q: A global strategy does not allow a company to modify its products except for the most superficial features.

Q: The main benefit of a global strategy is that it allows companies to monitor buyer preferences closely in each local market.

Q: A multinational strategy is best suited to industries in which price competitiveness is a key success factor.

Q: A multinational strategy entails having a separate strategy for each nation in which a company markets its products.

Q: A multinational strategy is most appropriate for companies that do not have foreign direct investments but rather export their products to foreign markets.

Q: Free-market economies tend to levy high taxes on business profits whereas socialist economic systems normally levy lighter taxes.

Q: The closing of TeleToys' Australian men's clothing line can best be described as a(n) ________ strategy. A) organic growth B) stability C) retrenchment D) global

Q: TeleToys recently opened eighteen new toy stores in Brazil. This move can best be described as a ________ strategy. A) growth B) stability C) retrenchment D) differentiation

Q: The strategy that Beanstalk would most likely want to follow is called a ________ strategy.A) multinationalB) retrenchmentC) globalD) stability

Q: Which of the following is a support activity that creates value for Beanstalk's customers? A) production B) marketing and sales C) customer service D) technology development

Q: Which of the following is a primary activity that creates value for Beanstalk's customers? A) firm infrastructure B) procurement C) human resource management D) inbound logistics

Q: A(n) ________ strategy deals with the primary and supports activities in an organization that create value for customers.A) business-levelB) department-levelC) corporate-levelD) international

Q: A ________ strategy often means designing products and promotions aimed at consumers who are either dissatisfied with existing choices or who want something distinctive. A) global B) stability C) low-cost leadership D) focus

Q: A ________ strategy is one in which a company emphasizes on serving the needs of a narrowly defined market segment by being the low-cost leader, differentiating its product, or both. A) global B) focus C) stability D) retrenchment

Q: Which of the following is a characteristic based on which products are typically differentiated? A) brand loyalty B) brand equity C) product design D) product cost

Q: Which of the following business-level strategies should a company follow in order to charge a higher price for its products and enjoy greater customer loyalty? A) differentiation strategy B) stability strategy C) mass customization strategy D) retrenchment strategy

Q: A ________ strategy is one in which a company designs its products to be perceived by buyers as unique throughout its industry. A) differentiation B) stability C) low-cost leadership D) retrenchment

Q: Decreasing levels of customer loyalty to an organization's products is a major disadvantage of the ________ strategy. A) blue ocean B) stability C) low-cost leadership D) growth

Q: A business-level strategy in which a company exploits economies of scale is called a ________. A) differentiation strategy B) stability strategy C) low-cost leadership strategy D) retrenchment strategy

Q: Which of the following strategies works best for an organization that practices mass production and mass-marketing? A) differentiation strategy B) focus strategy C) low-cost leadership strategy D) retrenchment strategy

Q: Which of the following strategies is designed to guard an organization against change? A) stability strategy B) growth strategy C) retrenchment strategy D) differentiation strategy

Q: A company that is selling unprofitable business units is most likely following a ________ strategy. A) growth B) retrenchment C) stability D) combined

Q: A company that is closing factories with unused capacity and laying-off workers is most likely following a ________ strategy. A) growth B) retrenchment C) stability D) combined

Q: A retrenchment strategy is designed to ________. A) encourage growth through joint ventures B) reduce the scale or scope of a corporation's operations C) focus exclusively on internally generated growth D) guard against organizational change

Q: A strategy designed to reduce the scale or scope of a corporation's business is called a ________ strategy. A) growth B) differentiation C) retrenchment D) stability

Q: Organic growth refers to an organization's corporate strategy that relies on growth ________. A) through mergers and acquisitions B) based on strategic alliances C) generated internally D) achieved from joint ventures

Q: The main benefit of a global strategy is that it allows a company to ________. A) closely monitor buyer preferences in each local market B) save costs due to product and marketing standardization C) customize its products and services D) respond effectively to emerging buyer preferences

Q: A ________ strategy can create cost savings due to product and marketing standardization. A) retrenchment B) multidomestic C) blue ocean D) global

Q: Global products are most commonly seen in industries where there is ________. A) little convergence of buyer preference across national borders B) low pressure to contain costs C) high demand for customized products D) significant price competition

Q: Companies that typically design promotional campaigns and advertising strategies at their headquarters are most likely to follow a ________ strategy. A) retrenchment B) global C) blue ocean D) multidomestic

Q: Companies that produce entire inventories of products or components in one or very few optimal locations are most likely to follow a ________ strategy. A) retrenchment B) global C) blue ocean D) multinational

Q: Offering the same products using the same marketing strategy in all national markets of an organization is referred to as a ________ strategy. A) global B) retrenchment C) multinational D) blue ocean

Q: A ________ strategy typically increases the cost structure for international companies and forces them to charge higher prices to recover such costs. A) retrenchment B) global C) multidomestic D) blue ocean

Q: Which of the following is considered as a support activity in an organization? A) inbound logistics B) marketing and sales C) procurement D) customer service

Q: According to value-chain analysis, inbound and outbound logistics are considered as ________. A) tertiary activities B) primary activities C) support activities D) core competencies

Q: Which of the following is considered as a primary activity in an organization? A) infrastructure B) marketing and sales C) procurement D) human resource management

Q: ________ is the process of dividing a company's activities into primary and support activities and identifying those that create value for customers. A) Fundamental analysis B) Technical analysis C) Structural analysis D) Value-chain analysis

Q: Which of the following is a special ability of a company that competitors find extremely difficult to equal? A) comparative advantage B) absolute advantage C) core competency D) economy of scale

Q: Explain the differences between a mission statement and a business-level strategy.

Q: Differentiate between primary and support activities that create value for a company's customers. How can managers determine whether an activity enhances customer value?

Q: The scope of a corporation's operations refers to the size of its operations.

Q: Support activities assist companies in performing their primary activities.

Q: Customer service is an example of a support activity in the value chain of an organization.

Q: Technology development is an example of a primary activity in the value chain of an organization.

Q: Core competencies are developed by organizations over long periods of time.

Q: Core competencies of organizations are the special skills of certain employees that give a company an edge over other organizations.

Q: Objectives of individual business units in an organization exclusively contain numerical targets of performance.

Q: Objectives at the highest level in a company are always stated in the most specific terms.

Q: All parties ranging from suppliers and employers to consumers who are affected by a company's activities are called its stockholders.

Q: Strategy is the set of planned actions that managers take to help a company meet its objectives.

Q: Which of the following should managers at Beanstalk conduct to identify and distinguish between the primary and support activities in the organization? A) fundamental analysis B) structural analysis C) value chain analysis D) technical analysis

Q: The main drawback of a multinational strategy is that it does not allow a company to ________.A) exploit scale economies in product development or marketingB) closely monitor buyer preferences in each local marketC) modify its products except for the most superficial featuresD) respond quickly and effectively to emerging buyer preferences

Q: The main benefit of a multidomestic strategy is that it ________. A) exploits scale economies in product development and marketing B) is cost-saving due to product and marketing standardization C) takes advantage of location economies D) responds quickly and effectively to emerging buyer preferences

Q: Which of the following strategies is appropriate for companies in industries where buyer preferences do not converge across national borders? A) retrenchment strategy B) global strategy C) multidomestic strategy D) mass customization strategy

Q: Companies often establish largely independent, self-contained units in each of its national markets to implement a ________ strategy. A) retrenchment B) global C) multinational D) blue ocean

Q: Adapting products and their marketing strategies in each of the national markets of a company to suit local preferences is called a ________ strategy. A) multinational B) blue ocean C) global D) retrenchment

Q: Which of the following statements is true of the environmental forces that affect strategy formulation? A) Socialist economic systems normally levy light taxes on business profits. B) Countries that excessively spend on R&D tend to have lower levels of prosperity. C) Approval of the host government is almost always necessary for making direct investments. D) Free-market economies tend to levy high taxes on business profits.

Q: The objectives at the ________ of an organization are typically more precise and contain numerical targets of performance. A) department-level B) business-level C) global-level D) corporate-level

Q: Which of the following statements is true of objectives? A) Objectives of individual business units in a company tend to be stated in the most general terms. B) Objectives become more precise at the level of individual departments. C) Objectives at the highest level in an organization tend to be more specific. D) Objectives at the highest level in an organization are more concrete as they contain numerical targets.

Q: Which of the following is the first stage of the strategy-formulation process? A) identification of value-creating activities B) formulation of strategies C) identification of company mission and goals D) identification of core competency

Q: Which of the following refers to a written statement of why a company exists and what it plans to accomplish? A) memorandum of association B) mission statement C) vision statement D) articles of association

Q: A ________ is a set of planned actions taken by managers to help a company meet its objectives. A) mission statement B) vision C) strategy D) core competency

Q: ________ is the process of identifying and selecting an organization's objectives and deciding how the organization will achieve those objectives. A) Stratification B) Planning C) Economic transition D) Value chain analysis

Q: The ________ called for large-scale reduction of the debt owed by poorer nations, the exchange of old loans for new low-interest loans, and the making of debt instruments that would be tradable on world financial markets. A) Brady Plan B) Louvre Accord C) Bretton Woods Agreement D) Smithsonian Agreement