Question:* Which of the following is a Visit Cost of benchmarking?
Answer: • (All of these)
Question:* What is an example of a growth strategy a firm may pursue?
Answer: • International expansion
Question:* Which of the following is a potential detriment to concentration strategies?
Answer: • A firm may lose its competitive advantage by expanding into unknown markets and developing unfamiliar products.
Question:* What does it mean to integrate horizontally?
Answer: • A corporation collaborates with its competition
Question:* Allocating capital throughout a diverse portfolio allows corporations to achieve what objective?
Answer: • Corporate synergy
Question:* What method of operation the production of standardized products that can be produced prior to receiving customer orders?
Answer: • make-to-stock operations
Question:* Can a business strategy be interchangeable with a corporate strategy?
Answer: • No. A corporate strategy has to focus globally, while business strategy focuses on individual units.
Question:* Which of the following is a economic value trait?
Answer: • GNP
Question:* What BCG Matrix strategy calls for reducing investment in a product to maximize profits and produce positive cash flows?
Answer: • Harvest strategy
Question:* Which of the following is generally considered the first step to implementing results-driven change?
Answer: • Setting measurable short-term goals to improve performance
Question:* Why is performing a gap analysis helpful in the change process?
Answer: • Because it forces an organization to identify both its current and desired state of being.
Question:* What are the three varieties of Vertical Integration?
Answer: • Backward, Forward, Balanced
Question:* What is corporate governance framework?
Answer: • Corporate governance framework defines the rules and practices necessary for ethical compliance.
Question:* How should a corporation structure itself in order to maximize its abilities to execute a strategy?
Answer: • A corporation should be decentralized and flexible
Question:* Which of the following statements best describes corporate strategy?
Answer: • How a company creates value across different businesses.
Question:* According to Michael Porter's five forces, what is the impact of increased buyer power?
Answer: • Reduced business profitability as buyers exert downward pressure on prices.
Question:* According to the product life cycle, which stage do products occupy if they are characterized by slowing growth and lower profits caused by increased competition?
Answer: • Maturity
Question:* What activity must come first in the performance management process?
Answer: • Specifying the relevant aspects of performance.
Question:* Which of the following is an example of a retrenchment strategy?
Answer: • Delta airlines reducing flights to several areas of the United States.
Question:* In 2013, Office Max and Office Depot completed a merger that allowed them to increase operating efficiencies. What is this type of merger known as?
Answer: • horizontal merger
Question:* Which of the following is not considered a corporate growth strategy?
Answer: • Analytical expansion
Question:* What benefit would diversification pose for a company such as BP?
Answer: • It allows a secondary profit channel in the case its main product becomes undesirable
Question:* What major disadvantage can a firm encounter with related diversification?
Answer: • Difficulty in managing different, but related businesses
Question:* Vertical integration provides what benefit to a firm?
Answer: • Reduced purchasing and selling costs
Question:* What are two methods of implementing growth strategies?
Answer: • Mergers and acquisitions
Question:* Which of the following is not a step to the performance management cycle?
Answer: • establishing incentives
Question:* What is financing derived from the sale of common stock or from retained earnings?
Answer: • equity financing
Question:* What is total quality management (TQM)?
Answer: • A management approach focused on customer focus, continuous improvement, and teamwork.
Question:* Which of the following positioning strategies requires an organization to produce a specialized product or service that is targeted towards a small segment of customers?
Answer: • focus strategy
Question:* In 2014, Google announced that it was selling Motorola Mobility to Lenovo for roughly $2.91 billion. What is this an example of?
Answer: • divestiture
Question:* Which of the following is a potential detriment that vertical integration causes?
Answer: • Increase in centralization and a reduction in flexibility
Question:* What legal issue could potentially arise as a result of horizontal integration strategies?
Answer: • Antitrust violations
Question:* What are products that occupy the low market share and low growth quadrant of the BCG Matrix called?
Answer: • Dogs
Question:* True or False? Operational Management focuses on the responses of external market issues.
Answer: • False
Question:* Why are products identified as 'question marks' in the BCG Matrix challenging for management?
Answer: • They could develop into 'stars', but they can also turn into 'dogs'.
Question:* What is the difference between earnings per share and diluted earnings per share?
Answer: • Diluted earnings per share includes outstanding common stock and all convertible securities.
Question:* What is the purpose of the poison pill?
Answer: • To prevent a hostile takeover.
Question:* What is the main difference between corporate and business strategy?
Answer: • Business strategy focuses on individual business units, while corporate strategy focuses on the overall direction a corporation must take
Question:* Why would a corporation choose to focus on related diversification?
Answer: • Related diversification allows a company to diversify and share facilities and resources to reduce costs
Question:* Developed by Kurt Lewin, the force field analysis helps managers identify the forces that encourage and prevent change in their organizations. According to the force field analysis, how should managers implement change?
Answer: • By increasing or holding constant driving forces and decreasing restraining forces.
Question:* Which of the following is NOT an example of a corporate social responsibility activity?
Answer: • Increasing short-term profitability by extending the life cycle of equipment past the recommended period.
Question:* What growth strategy is implemented with the combination of equity and significant amounts of debt, while utilizing the target's assets to pay off said debt?
Answer: • A leveraged buyout
Question:* Which of the following best categorizes individuals or groups who have an interest in the actions of an organizations?
Answer: • Stakeholders
Question:* What is the term used to describe a statement that oulines what a company does and its reason for existing?
Answer: • Mission statement
Question:* What is the process where one company purchases another and absorbs it into its existing operations?
Answer: • acquisition
Question:* Of the following, which is a potential course of action in the event of a catastrophic failure in growth strategies?
Answer: • Corporate restructuring
Question:* Performance benchmarking let's a firm:
Answer: • assess its competitive position compared to target/peer firms.
Question:* What is the term used to describe a broad vision that outlines where a company wants to go?
Answer: • Stategic plan
Question:* How can corporations use executive compensation to focus management decision making on goals that are important to shareholders?
Answer: • Include a stock option grant provision.
Question:* Which of the following costs of inventory production is associated with storing products until they are to used or sold?
Answer: • holding cost
Question:* True or False? Corporate strategy deals with industries the firm seeks to compete in.
Answer: • True
Question:* Concentration strategy is when a corporation does what?
Answer: • Focuses on its primary line of business
Question:* What role does corporate governance framework play in corporate strategy?
Answer: • Corporate governance framework ensures that corporate strategies are pursued ethically
Question:* When diversifying, what must be kept in tact to maintain the survival of the firm?
Answer: • A companies sustainable competitive advantage
Question:* Why would a firm use diversification as a strategy?
Answer: • Diversification offers a company the opportunity to expand beyond its core business
Question:* Which of the following best describes the stakeholder approach to social responsibility?
Answer: • Organizations should consider the interests of all parties who have the potential of being affected by a decision.
Question:* What company-wide message is delivered to describe a corporation's reason to exist?
Answer: • Mission Statement
Question:* What is organizational stability?
Answer: • Organizational stability is when a firm maintains its current size
Question:* Which of the following is a business function of the value chain?
Answer: • (All of these)
Question:* What is an example of a long-term consideration of a strategic corporation?
Answer: • Future market entry, and mergers and acquisitions
Question:* What is an example of a benefit gained from corporate governance framework?
Answer: • Ethical operations and good relationships with stakeholders ensure that all interested parties work towards a collective strategy
Question:* An acquisition is the outright purchase of another company. What is a merger?
Answer: • A merger is a legal transaction that takes place when two or more organizations unite through an exchange of stock.
Question:* True or False? The Business Process Improvement system is an approach to help a company achieve efficient results.
Answer: • True
Question:* True or False? Benchmarking is comparing a firm's business metrics to the industry's bests.
Answer: • True
Question:* Which one of the following are Porter's generic strategies
Answer: • (All of these)
Question:* What is a characteristic of a firm that is ideal for diversification?
Answer: • A firm that has the excess resources and capabilities to expand profitability
Question:* What is inventory turnover?
Answer: • The number of times annually that a company sells its average inventory.
Question:* When growth is vertical, what does this mean for a corporation?
Answer: • It means that the corporation has expanded beyond primary business
Question:* Which of the following is not considered to be a level of strategy in an organization?
Answer: • functional strategy
Question:* There are two major types of diversification. What are they?
Answer: • Related and unrelated
Question:* Which error in decision-making typically results when managers have already devoted significant resources to a project but have yet to see financial results?
Answer: • escalation of commitment
Question:* What kind of outlook would make organizational stability a prudent action?
Answer: • An uncertain future
Question:* Which of the following is true regarding the impact of diversification on an organization's performance?
Answer: • An organization's performance generally decreases as it shifts from a related diversification strategy to an unrelated diversification strategy.
Question:* With the inherent risk involved, why would a company choose unrelated diversification as a strategy?
Answer: • A firm targeted for acquisition has undervalued assets, or is in financial distress
Question:* The Heptalysis Analysis is an early stage business/venture analysis using how many categories?
Answer: • 7
Question:* What does the L stand for in the PESTLE Analysis?
Answer: • Legal
Question:* A firm replacing suppliers is vertically integrating ________________.
Answer: • Upstream
Question:* Which of the following is not a component to managing performance through management by objectives (MBO)?
Answer: • Agreeing on rewards that are likely to increase employee motivation.
Question:* True or False? NACIS is a measurement of diversification.
Answer: • True
Question:* Which of the following is part of John Kay's value chain concept?
Answer: • Innovation
Question:* Which of the following is not a major perspective of the balanced scorecard?
Answer: • employee performance indicators
Question:* What is an example of horizontal integration?
Answer: • Walmart buying the excess of an overproduced competitor product and selling it as a Great Value brand
Question:* What is the term for a strategy where a business seeks to establish a long-term competitive advantage by improving value chain activities that substantially lower costs?
Answer: • low-cost strategy
Question:* As a consequence of majority accounting scandals in the early 2000's, U.S. corporations have been forced to modify their existing governance structure. Which of the following represents the most significant change to the governance structure of U.S. corporations?
Answer: • The increased role of the corporate internal auditor.
Question:* Which of the following barriers to change can be overcome by involving affects parties in the change process as closely as possible?
Answer: • fear of loss
Question:* When a firm engages in unrelated diversification, what kind of market are they expanding into?
Answer: • A market without a strategic fit or theme
Question:* What type of strategy attempts to answer the question: "How should we compete against a particular organization?"
Answer: • firm level strategy
Question:* What does the M stand for in the MOST Business Analysis?
Answer: • Mission
Question:* Which of the following is not a social factor of the PEST analysis?
Answer: • Economic growth
Question:* Speed-based strategies focus on allowing the business to meet customer needs more quickly than competitors. Which of the following is an important activity to implementing a speed-based strategy?
Answer: • Decreasing product development cycles.
Question:* Of the following, which would benefit most from corporate strategy?
Answer: • Kraft General Foods
Question:* When a firm engages in product-market exploration strategies, how is its focus shifting?
Answer: • The firm is focusing primarily on its current products and their current markets
Question:* How many steps are there in the business process improvement analysis?
Answer: • 6
Question:* What duration should a firm undertake to achieve organizational stability?
Answer: • A very limited duration.
Question:* What are the two traits of corporate strategy?
Answer: • Diversification and Vertical Integration
Question:* What is a competitive advantage?
Answer: • Something that allows an organization to achieve profitability that is greater than the industry average.
No comments:
Post a Comment