GMS 200 Class 8 (Chapter 10) Practice Test M/C

Flashcards mode only. For learn/test use flashcards only and only answer with definition.

1. The most appropriate first question to ask in strategic planning is .
   a) “Where do we want to be in the future?”
   b) “How well are we currently doing?”
   c) “How can we get where we want to be?”
   d) “Why aren’t we doing better?

a) “Where do we want to be in the future?”

2. The ability of a firm to consistently outperform its rivals is called .
   a) vertical integration
   b) competitive advantage
   c) incrementalism
   d) strategic intent

b) competitive advantage

3. In a complex conglomerate such as General Electric that owns a large number of different businesses, a(n) level strategy sets strategic direction for a strategic business unit.
   a) institutional
   b) corporate
   c) business
   d) functional

c) business

4. The is a predominant value system for an organization as a whole.
   a) strategy
   b) core competency
   c) mission
   d) corporate culture

d) corporate culture

5. Cost efficiency and product quality are two examples of objectives of organizations.
   a) official
   b) operating
   c) informal
   d) institutional

b) operating

6. An organization that is downsizing by laying off workers to reduce costs is implementing a strategy.
   a) growth
   b) cost differentiation
   c) restructuring
   d) vertical integration

c) restructuring

7. When Canadian Tire acquired the Forzani Group, owner of Sport Chek and other sporting goods chains, the firm’s strategy was growth by .
   a) related diversification
   b) concentration
   c) vertical integration
   d) cooperation

a) related diversification

8. In Porter’s five forces framework, having increases industry attractiveness.
   a) many rivals
   b) many substitute products
   c) low bargaining power of suppliers
   d) few barriers to entry

c) low bargaining power of suppliers

9. A in the BCG Matrix would have a high market share in a low-growth market, and the correct grand or master strategy is .
   a) Dog, growth
   b) Cash Cow, stability
   c) Question Mark, stability
   d) Star, retrenchment

b) Cash Cow, stability

10. Strategic alliances that link together airlines in code-sharing and joint marketing agreements are examples of how businesses can use strategies.
    a) divestiture
    b) growth
    c) cooperation
    d) backward integration

c) cooperation

11. The two questions asked by Porter to identify competitive strategies for a business or product line are: 1—What is the market scope? 2—What is the ?
    a) market share
    b) source of competitive advantage
    c) core competency
    d) industry attractiveness

a) market share

12. According to Porter’s model of competitive strategies, a firm that wants to compete with its rivals in a broad market by selling a very low-priced product would need to successfully implement a strategy.
    a) retrenchment
    b) differentiation
    c) cost leadership
    d) diversification

c) cost leadership

13. When Coke and Pepsi spend millions on ads trying to convince customers that their products are unique, they are pursuing a strategy.
    a) transnational
    b) concentration
    c) diversification
    d) differentiation

d) differentiation

14. The role of the board of directors as an oversight body that holds top executives accountable for the success of business strategies is called .
    a) strategic leadership
    b) corporate governance
    c) logical incrementalism
    d) strategic opportunism

b) corporate governance

15. An example of a process failure in strategic planning is .
    a) lack of participation
    b) weak mission statement
    c) bad core values
    d) insufficient financial resources

a) lack of participation