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1 | |
A broad statement of the organization's purpose, products, and customer base that differentiates the organization from its competitors is known as: |
| | A) | a functional-level plan. |
| | B) | a mission statement. |
| | C) | a SWOT analysis. |
| | D) | a focused low-cost strategy. |
| | E) | a focused differentiation strategy. |
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2 | |
Which is not a step in the planning process? |
| | A) | Determining a mission and goals |
| | B) | Formulating strategy |
| | C) | Appraisal and assessment |
| | D) | Implementing strategy |
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3 | |
Another name for the departmental level of the organization is the __________ level of the organization. |
| | A) | functional |
| | B) | divisional |
| | C) | business |
| | D) | corporate |
| | E) | first-line |
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4 | |
What level decides the organizational mission? |
| | A) | Division |
| | B) | Corporate |
| | C) | Functional |
| | D) | Departmental |
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5 | |
Corporate-level strategy utilizes what time frame for planning?
I. Short-term
II. Intermediate-term
III. Long-term |
| | A) | II and III |
| | B) | I and III |
| | C) | III only |
| | D) | I and II |
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6 | |
This is a plan that indicates how a division intends to compete against its rivals in an industry: |
| | A) | Division-level strategy |
| | B) | Business-level strategy |
| | C) | Corporate-level strategy |
| | D) | Functional-level strategy |
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7 | |
Which time period is a correct representation?
I. Short-term is 1 to 3 years
II. Intermediate-term is 3 to 5 years
III. Long-term is 5 or more years |
| | A) | I, II, and III |
| | B) | I and II |
| | C) | II and III |
| | D) | III only |
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8 | |
A good plan does not do which of these: |
| | A) | Builds commitment for the goals |
| | B) | Gives direction and purpose |
| | C) | Eliminates the different functions and divisions of an organization |
| | D) | Makes managers accountable for their goals |
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9 | |
Scenario planning is also known as ______ planning. |
| | A) | Time |
| | B) | Contingency |
| | C) | Strategic |
| | D) | Diversification |
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10 | |
Performance gains that result when individuals coordinate their action is called: |
| | A) | Coordinated strategy |
| | B) | Focused diversification |
| | C) | Synergy |
| | D) | Entropy |
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11 | |
In the determination of an organization's mission, the first step managers should take is ______________. |
| | A) | Identify customers |
| | B) | Establish major goals |
| | C) | Define the business |
| | D) | Forecast the future |
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12 | |
The best goals are those that are all of the following EXCEPT: |
| | A) | time limited |
| | B) | ambiguous |
| | C) | realistic |
| | D) | ambitious |
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13 | |
Managers at ABC, Inc. analyze the current situation of their organization and then develop plans to help their organization to accomplish its mission and achieve its goals. This is known as: |
| | A) | synergy planning. |
| | B) | strategy formulation. |
| | C) | functional planning. |
| | D) | SWOT analysis. |
| | E) | diversification. |
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14 | |
In the "five forces model," the type of competitive activity that exists between organizations is known as: |
| | A) | the potential for entry into the industry. |
| | B) | the threat of substitute products. |
| | C) | the power of customers. |
| | D) | the level of rivalry. |
| | E) | the power of suppliers. |
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15 | |
In which step of SWOT analysis would "slower market growth" be most likely to arise? |
| | A) | S |
| | B) | W |
| | C) | O |
| | D) | T |
| | E) | Either S or W |
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16 | |
DEF, Inc. purchases one of its suppliers, GHI Company, in order to obtain access to the raw materials that DEF needs for its production. DEF also decides to sell DEF's products through GHI's own retail outlets. The former is known as __________ while the latter is known as __________. |
| | A) | forward vertical integration; backward vertical integration |
| | B) | backward vertical integration; forward vertical integration |
| | C) | forward vertical integration; forward vertical integration |
| | D) | backward vertical integration; backward vertical integration |
| | E) | none of the above |
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17 | |
An organization attempts to gain a competitive advantage by aiming its efforts at driving down its production costs per unit below those of its competitors. This is known as which type of strategy? |
| | A) | Focused differentiation strategy |
| | B) | Low-cost strategy |
| | C) | Related diversification strategy |
| | D) | Unrelated diversification strategy |
| | E) | Concentration on a single business strategy |
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18 | |
When Procter & Gamble uses the same distribution system to deliver its oral care products and its hair care products to drugstore chains, this is an example of: |
| | A) | synergy. |
| | B) | a focused-differentiation strategy. |
| | C) | a diversification strategy. |
| | D) | an unrelated diversification strategy. |
| | E) | a differentiation strategy. |
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19 | |
_____ integration is a strategy that allows an organization to create value by producing its own inputs or distributing and selling its own outputs. |
| | A) | Horizontal |
| | B) | Vertical |
| | C) | Linear |
| | D) | Diagonal |
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20 | |
________ strategy distinguishes an organization's products from its competitors products in areas such as quality and design. |
| | A) | Low-cost |
| | B) | Focused low-cost |
| | C) | Differentiation |
| | D) | Focused differentiation |
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21 | |
This strategy serves only one segment of the overall market and tries to be the most differentiated organization serving the segment: |
| | A) | Focused differentiation |
| | B) | Low-cost differentiation |
| | C) | Multidomestic |
| | D) | Focused global |
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22 | |
Strategy implementation may include all of the following EXCEPT: |
| | A) | Allocating responsibility to the appropriate individuals or groups. |
| | B) | Allocating appropriate resources to the responsible individuals or groups |
| | C) | Establishing a timetable with precise, measurable goals. |
| | D) | Developing a specific mission statement for the organization |
| | E) | Drafting detailed implementation plans. |
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