1)Long-term objectives are needed at which level(s) in an organization?
A) Functional
B) Divisional
C) Corporate
D) all of these
E) none of these
2) Financial objectives involve all of the following except
A) larger market share.
B) greater return on investment.
C) higher dividends.
D) a rising stock price.
E) growth in revenues.
3) All of the following are important factors in the Balanced Scorecard except
A) product quality.
B) business ethics.
C) stockholder equity.
D) customer service.
E) employee morale.
4) Which level of strategy is most likely not present in small firms?
A) Divisional
B) Operational
C) Functional
D) Corporate/company
E) All of these are present in small firms
5) Southwest Airlines selling tickets through Galileo is an example of which type of strategy?
A) Forward integration
B) Horizontal integration
C) Related diversification
D) Unrelated diversification
E) Backward integration
6) Which of these strategies is effective when the number of suppliers is small and the number of
competitors is large?
A) Backward integration
B) Concentric diversification
C) Horizontal diversification
D) Forward integration
E) Conglomerate diversification
7) What refers to a strategy of seeking ownership of or increased control over a firm's competitors?
A) Forward integration
B) Horizontal integration
C) Concentric diversification
D) Conglomerate diversification
E) Backward integration
8) Which strategy seeks to increase market share of present products or services in present mar-
kets through greater marketing efforts?
A) Market development
B) Forward integration
C) Backward integration
D) Product development
E) Market penetration
9) All of the following situations are conducive to market development except
A) when an organization competes in a high-growth industry.
B) when an organization is very successful at what it does.
C) when an organization's basic industry is becoming rapidly global in scope.
D) when an organization has excess production capacity.
E) when new untapped or unsaturated markets exist.
10) Adding new, unrelated products or services for present customers is called
A) forward integration.
B) backward integration.
C) unrelated diversification.
D) conglomerate diversification.
E) related diversification.
11) Bankruptcy
A) can be an effective type of retrenchment strategy.
B) should only be used for large firms.
C) should never be used as a strategy.
D) should be used only when one is legally forced to do so.
E) should only be used for small, private firms.
12) Which chapter of the bankruptcy code applies to municipalities?
A) Chapter 13
B) Chapter 8
C) Chapter 9
D) Chapter 7
E) Chapter 12
13) According to Porter, which strategy offers products or services to a small range of customers at
the lowest price available on the market?
A) Low-cost focus
B) Low-cost
C) Best-value focus
D) Best-value
E) Differentiation
14 )Mergers and acquisitions are created for all of the following reasons except to
A) gain new technology.
B) smooth out seasonal trends in sales.
C) gain economies of scale.
D) reduce tax obligations.
E) increase its number of employees.
15) What was the largest acquisition completed in 2007?
A) Porsche acquiring Volkswagon
B) AT&T acquiring BellSouth Corp
C) CVS acquiring Caremark Rx
D) Johnson & Johnson acquiring Pjizen Consumer Healthcare
E) Linde acquiring BOC Group
16) According to journalists' findings, what is a serious obstacle for many small business owners?
A) A lack of experience in networking
B) An excess of employees and managerial staff
C) A lack of business ethics
D) A lack of strategic-management knowledge
E) Having too many suppliers
17) The match an organization makes between its internal resources and skills and the opportuni-
ties and risks created by its external factors can be defined as
A) strategy.
B) an opportunity.
C) concept formulation.
D) SWOT.
E) input.
18) Which section of the SWOT Matrix involves matching internal strengths with external opportunities?
A) The WT cell
B) The SW cell
C) The SO cell
D) The ST cell
E) The WO cell
19) What are two external dimensions of the SPACE Matrix?
A) Industry strength and competitive advantage
B) Financial strength and industry strength
C) Competitive advantage and financial strength
D) Environmental stability and competitive advantage
E) Environmental stability and industry strength
20) In the SPACE analysis, what does a (+6, +3) strategy profile portray?
A) A weak industry
B) A weak financial position
C) A stable environment
D) An unstable environment
E) A strong industry
21) For what type of company is the BCG Matrix ideal for analyzing?
A) Companies with annual sales of less than $1 million
B) Companies with annual sales greater than $1 million
C) All companies
D) Companies with more than one division
E) Large companies
22) In the BCG Matrix, which element represents the industry growth rate in sales, measured in
percentage terms?
A) Third quadrant
B) x-axis
C) First quadrant
D) y-axis
E) Second quadrant
23) Which strategy would be most appropriate for a company classified as a Dog?
A) Forward integration
B) Retrenchment
C) Market penetration
D) Market development
E) Product development
24) Although Quadrant ________ companies are growing, according to the Grand Strategy Matrix, they are unable to compete effectively, and they need to determine why the firm's current approach is ineffective and how the company can best change to improve its competitiveness.
A) III
B) II
C) I
D) IV
E) V
25) The act of oversight and direction for an organization is referred to as
A) governance.
B) organizational direction.
C) centralized control.
D) corporate lawmaking.
E) establishing norms.
A) Functional
B) Divisional
C) Corporate
D) all of these
E) none of these
2) Financial objectives involve all of the following except
A) larger market share.
B) greater return on investment.
C) higher dividends.
D) a rising stock price.
E) growth in revenues.
3) All of the following are important factors in the Balanced Scorecard except
A) product quality.
B) business ethics.
C) stockholder equity.
D) customer service.
E) employee morale.
4) Which level of strategy is most likely not present in small firms?
A) Divisional
B) Operational
C) Functional
D) Corporate/company
E) All of these are present in small firms
5) Southwest Airlines selling tickets through Galileo is an example of which type of strategy?
A) Forward integration
B) Horizontal integration
C) Related diversification
D) Unrelated diversification
E) Backward integration
6) Which of these strategies is effective when the number of suppliers is small and the number of
competitors is large?
A) Backward integration
B) Concentric diversification
C) Horizontal diversification
D) Forward integration
E) Conglomerate diversification
7) What refers to a strategy of seeking ownership of or increased control over a firm's competitors?
A) Forward integration
B) Horizontal integration
C) Concentric diversification
D) Conglomerate diversification
E) Backward integration
8) Which strategy seeks to increase market share of present products or services in present mar-
kets through greater marketing efforts?
A) Market development
B) Forward integration
C) Backward integration
D) Product development
E) Market penetration
9) All of the following situations are conducive to market development except
A) when an organization competes in a high-growth industry.
B) when an organization is very successful at what it does.
C) when an organization's basic industry is becoming rapidly global in scope.
D) when an organization has excess production capacity.
E) when new untapped or unsaturated markets exist.
10) Adding new, unrelated products or services for present customers is called
A) forward integration.
B) backward integration.
C) unrelated diversification.
D) conglomerate diversification.
E) related diversification.
11) Bankruptcy
A) can be an effective type of retrenchment strategy.
B) should only be used for large firms.
C) should never be used as a strategy.
D) should be used only when one is legally forced to do so.
E) should only be used for small, private firms.
12) Which chapter of the bankruptcy code applies to municipalities?
A) Chapter 13
B) Chapter 8
C) Chapter 9
D) Chapter 7
E) Chapter 12
13) According to Porter, which strategy offers products or services to a small range of customers at
the lowest price available on the market?
A) Low-cost focus
B) Low-cost
C) Best-value focus
D) Best-value
E) Differentiation
14 )Mergers and acquisitions are created for all of the following reasons except to
A) gain new technology.
B) smooth out seasonal trends in sales.
C) gain economies of scale.
D) reduce tax obligations.
E) increase its number of employees.
15) What was the largest acquisition completed in 2007?
A) Porsche acquiring Volkswagon
B) AT&T acquiring BellSouth Corp
C) CVS acquiring Caremark Rx
D) Johnson & Johnson acquiring Pjizen Consumer Healthcare
E) Linde acquiring BOC Group
16) According to journalists' findings, what is a serious obstacle for many small business owners?
A) A lack of experience in networking
B) An excess of employees and managerial staff
C) A lack of business ethics
D) A lack of strategic-management knowledge
E) Having too many suppliers
17) The match an organization makes between its internal resources and skills and the opportuni-
ties and risks created by its external factors can be defined as
A) strategy.
B) an opportunity.
C) concept formulation.
D) SWOT.
E) input.
18) Which section of the SWOT Matrix involves matching internal strengths with external opportunities?
A) The WT cell
B) The SW cell
C) The SO cell
D) The ST cell
E) The WO cell
19) What are two external dimensions of the SPACE Matrix?
A) Industry strength and competitive advantage
B) Financial strength and industry strength
C) Competitive advantage and financial strength
D) Environmental stability and competitive advantage
E) Environmental stability and industry strength
20) In the SPACE analysis, what does a (+6, +3) strategy profile portray?
A) A weak industry
B) A weak financial position
C) A stable environment
D) An unstable environment
E) A strong industry
21) For what type of company is the BCG Matrix ideal for analyzing?
A) Companies with annual sales of less than $1 million
B) Companies with annual sales greater than $1 million
C) All companies
D) Companies with more than one division
E) Large companies
22) In the BCG Matrix, which element represents the industry growth rate in sales, measured in
percentage terms?
A) Third quadrant
B) x-axis
C) First quadrant
D) y-axis
E) Second quadrant
23) Which strategy would be most appropriate for a company classified as a Dog?
A) Forward integration
B) Retrenchment
C) Market penetration
D) Market development
E) Product development
24) Although Quadrant ________ companies are growing, according to the Grand Strategy Matrix, they are unable to compete effectively, and they need to determine why the firm's current approach is ineffective and how the company can best change to improve its competitiveness.
A) III
B) II
C) I
D) IV
E) V
25) The act of oversight and direction for an organization is referred to as
A) governance.
B) organizational direction.
C) centralized control.
D) corporate lawmaking.
E) establishing norms.
