Bstrat

final review

______ is the way management coordinates activities, transfers resources, and
cultivates capabilities among product lines and business units.
a. Corporate strategy
b. Directional Strategy
c. Parenting Strategy
d. Portfolio analysis

Parenting Strategy

Examines the financial implications of corporate and business-level strategic
options and identifies the best financial course of action.
a. Financial Strategy
b. Skim pricing
c. Leveraged buyout
d. Brand extension

Financial Strategy

What is the planned elimination of positions or jobs?
a. Job rotation
b. Downsizing
c. Performance appraisal
d. Assessment centers

Downsizing

Sum of the activities that an organization takes in order to compete in markets
outside of its home country
a. Global Strategy
b. Licensing
c. Franchising
d. Exporting

Global Strategy

This is one of the phases of strategic management
a. Advance control
b. Externally Oriented Strategic Planning
c. Output control
d. Behavior controls

Externally Oriented Strategic Planning

Which method primarily evaluates employees for promotion potential and advanced
positions within an organization?
A. Performance Appraisal
B. Employee Satisfaction surveys
C. Assessment Centers
D. Job Rotation
E. Job Enrichment

performance appraisals

_____ encompasses the process of leasing and coaching individuals to utilize their
abilities and skills effectively to achieve organizational objectives.
A. Performance evaluation
B. Strategic planning
C. Implementation
D. Leadership development
E. Scheduling

leadership development

What term describes the process characterized by a balanced exchange of cultural and
managerial practices between merging companies, without imposing significant cultural
change on either
party?
A. Assimilation
B. Adaption
C. Homogenization
D. Integration
E. Adaptation

Integration

___ emphasis participative decision-making and shared goal setting, with performance
assessment centered around the achievement of stated objectives?
A. Total Quality Management (TQM)
B. Management by Objectives (MBO)
C. Situational Leadership Theory (SLT)
D. Management by Exception (MBE)
E. Global Quality Management (GQM)

Management By Objectives MBO

What outlines the specific actions to be taken, by whom, within a designated time frame,
and with expected results.
A. Action Plan
B. Strategic Plan
C. Mission statement
D. Vision Statement
E. Long Term Planning

Action Plan

Measure variables that influence future profitability
A. Productive Inventory
B. General cost of production
C. Customer satisfaction only in service activities
D. Cost per the last units produced
E. Steering controls

Productive inventory or steering controls

Establishes how to document the company’s impact on the
environment
A. ISO 14500
B. ISO 4001
C. ISO 9002
D. ISO 14000
E. None

ISO 14000

Assigns indirect and direct costs to individual product lines based on
value-added activities
going into that product
A. Activity-based costing
B. Movement-based costing
C. Accurate costing based on a program
D. A and B
E. None

Activity Based Costing

When return on investment is greater than what the return would be

A. Pooled ability
B. Synergy
C. Shared value
D. Scaling economics
E. Coordination effectively

Synergy

This maxim is taught in the slides:
A. Structure follows strategy
B. Strategy follows structure
C. Strategy is second and structure is first
D. Structure always defines strategy
E. None

Structure follows strategy

This is the last version of the relationship between strategy and
structure:
A. Sometimes, strategy will follow structure, it is situational
B. Strategy will follow structure always
C. Structure follow strategy in international companies
D. Structure follow strategy in national companies
E. None

Sometimes, strategy will follow structure, it is situational

What is return on equity (ROE)?
a.) Net income divided by expenses
b.) Net income divided by total equity
c.) Net income divided by revenue
d.) Net income divided by assets
e.) Net income divided by revenue and assets

Net income divided by total equity

What is leveraged buyout?
a.) The company raises prices on its products
b.) The company issues out more stocks to raise money
c.) The company is bought out with mostly borrowed money
d.) The company cuts costs by firing employees
e.) The company lowers prices on its products

The company is bought out with mostly borrowed money

What is needed to successfully integrate acquisitions?
a.) Only hiring external consultations
b.) Limited cross functional collaboration
c.) Deep company knowledge and flexibility
d.) Time management
e.) None of the above

Deep company knowledge and flexibility

What is a network re-structure?
a.) Having a strict reporting structure
b.) Operating from single headquarters location
c.) Manufacturing assets and products in-house
d.) Eliminating internal business functions
e.) a and d

eliminating internal business functions

What is Turnkey operation?
a.) Outsourcing manufacturing to lower-cost countries
b.) Building and transferring operating facilities for a fee
c.) Exporting products to international markets
d.) Managing another company’s operation temporarily
e.) None of the above

Building and transferring operating facilities for a fee

Advertising to “extract” products through the distribution channels.
A. Get-up-and-go policy
B. Withdraw strategy
C. Push plan
D. Skim pricing
E. None

Push Plan

Determines how and where a product or service is to be manufactured, the level of
vertical integration in the production process, the deployment of physical
resources, and relationships with suppliers
A. Operations strategy
B. Manufacturing efficiency
C. Vertical integration
D. Effective process
E. None

Operations strategy

In a leveraged buyout
A. company is acquired in a transaction financed obtained from a third party
B. largely obtained by efficient deal
C. investor’s shares are split in half for the same total amount of money
D. A and B
E. None

company is acquired in a transaction financed obtained from a third party

Deals with product and process innovation and improvement

A. Research in marketing
B. R and D
C. A and B
D. All
E. None

R and D

This is one of the Marketing strategies
A. Product development strategy
B. Services development strategy
C. A strategy to develop old products for new markets
D. A strategy to fit any company
E. None

Product development strategy

_________ offers the opportunity to “skim the cream” from the top of the demand
curve with a high price
A. Novel competitor
B. Penetration strategy
C. Pioneer tactic
D. Deals with product and process innovation and improvement
E. None

Pioneer tactic

______ strategy deals with the flow of products into and out of the
manufacturing process
A. Logistics
B. Outsourcing of services
C. International
D. All
E. None

Logistics

______ is the process of finding a strategic fit between external opportunities
and internal strengths
while working around external and internal weaknesses.
A. Business gift
B. Tactic fit
C. Scheme strength

D. A and B
E. E. None

None

Criticisms of the Swot analysis
A. Virtually everything that is an opportunity is also a threat.
B. Adding layers of effort does not improve the validity of the list
C. A and B
D. Adding layers of effort does not improve the validity of the list
E. All

A & B virtually everything that is an opportunity is also a threat & Adding layers of effort does not improve the validity of the list

______ strategy refers to the manner in which management coordinates activities,
transfers resources, and cultivates capabilities among product lines and business units.
A. Directional
B. Corporate
C. Parenting
D. Growth
E. Contraction

Parenting

__ strategies are used when the firm has a weak competitive position in some or all its
product lines from poor performance
A. Contraction
B. Retrenchment
C. Turnaround
D. Consolidation
E. Both A and B

Both A & B Contraction & Retrenchment

Sale of a division with low growth potential
A. Divestment
B. Liquidation
C. Bankruptcy
D. Sell-out

E. None

Divestment

What is a merger?
A. Purchase of another company
B. assuming a function previously provided by a supplier.
C. assuming a function previously provided by a distributor.
D. a transaction involving two or more corporations in which both companies exchange stock to
create one new corporation.
E. the degree to which a firm operates vertically.

a transaction involving two or more corporations in which both companies exchange stock to create one new corporation.

_____ integration occurs when a firm internally produces less than half of its own
requirements and buys the rest from outside suppliers
A. Taper
B. Full
C. Horizontal
D. Vertical
E. Quasi

Taper