EXAM 7
If Mr. Carol wanted to introduce high-performance work practices in his organization, which of the following practices would he adopt?

A. Centralized decision making

B. Fixed job assignments

C. Limited communication

D. Self-managed work teams

The two main support processes in an organization are:

A. production systems and marketing systems.

B. procurement systems and HR systems.

C. financial accounting systems and HR systems.

D. information systems and financial accounting systems.

Which of the following is a possible production-operations management strategy?

A. Selective specialization

B. Inventory management systems

C. User positioning

D. Market logistics
The marketing mix is commonly known as the

A. 4Ps

B. 5Ps

C. 7Ss

D. 4Ss

The role of top-level decision makers in the strategic management process is to:

A. establish the overall operational goals.

B. develop the overall goal that the organization hopes to achieve.

C. establish functional strategies.

D. supervise line managers.

Francesca has had a higher than desirable level of server turnover in her restaurant. She decided that she needs to pay better attention to which strategies?

A. Marketing

B. Human resources

C. Information

D. Financial-accounting

Which of the following is included under the product functional strategies?

A. Supervision

B. Management

C. Marketing

D. Leadership

The ________ strategy is one in which an organization continually innovates by finding and exploiting new product and market opportunities.

A. prospector

B. defender

C. analyzer

D. reactor

Product design strategies typically involve an organization’s ________ functional area.

A. finance

B. R&D

C. accounting

D. HR
Which of the following is NOT a way to segment specialized market niches?

A. Price consciousness

B. Geographical

C. Type of customer

D. Product line segment

Which are the two biggest factors in marketing?

A. Competitors and pricing

B. Product and competitors

C. Customers and competitors

D. Pricing and customers
When a company builds a profitable business by “stealing” ideas from other successful peers, it is following a(n) ________ strategy.

A. prospector

B. defender

C. analyzer

D. reactor

Which of the following is NOT a possible dimension for identifying strategic groups?

A. Units sold

B. Price

C. Quality

D. Geographic scope

________ is when organizations battle or vie for some desired object or outcome.

A. Competition

B. Strategy

C. Goal

D. Objective
One of the two strategic decisions most associated with the organization’s information system is:

A. optimum equity mix.

B. creating an approved vendor list.

C. selecting the correct marketing mix.

D. the choice of system technology.

An organization’s ________ strategies reflect its commitment to and treatment of its employees.

A. procurement

B. corporate

C. HR

D. competitive

Which of the following is NOT one of Miles and Snow’s adaptive strategies?

A. Defender

B. Prospector

C. Cost leader

D. Analyzer
Designing which of the following systems involves making sure we have the information we need, when the information is needed, and in the form needed?

A. Marketing

B. Human resources

C. Information

D. Financial-accounting

When an organization hasn’t developed a low cost or a differentiation competitive advantage, it is said to be

A. stuck-in-the-middle.

B. using an integrated strategy.

C. using a strategy of best cost.

D. pursuing a niche-based competitive advantage.

The ________ strategy is one in which an organization continually innovates by finding and exploiting new product and market opportunities.

A. prospector

B. defender

C. analyzer

D. reactor
A company like PepsiCo, with a number of business units such as snack foods, beverages, and prepared foods, is referred to as a:

A. single-business organization.

B. multiple-business organization.

C. multiple-line organization.

D. multiple-function organization.

The ________ strategy is one in which the organization maintains its current size and current level of business operations.

A. stability

B. concentration

C. diversification

D. backward integration

Mr. Wilson, a successful importer of Italian furniture, is considering combining operations by exchanging stock with a competitor, Italian Delights, to create a new store, Supremo Italiano. Which of the following growth strategies is Mr. Wilson following here?

A. Merger

B. Acquisition

C. Hostile takeover

D. Internal development
Cash flows from cash cows should be used to support:

A. question marks.

B. stars.

C. dogs.

D. question marks and stars.

Mr. Wilson is thinking about concentrating on his primary line of business, Italian furniture, and looking for ways to meet its growth goals by expanding its core business. Which of the below strategies is Mr. Wilson following here?

A. International

B. Vertical integration

C. Diversification

D. Concentration
Efficiency is:

A. the organization’s ability to complete or reach goals.

B. a specific measure, typically used in the production-operations-manufacturing area, of how many inputs it took to produce outputs.

C. the ability of the organization to minimize the use of resources in achieving organizational goals.

D. the search for the best practices from other leading organizations.

Which of the following is a type of strategic partnering?

A. Licensing

B. Exporting

C. Joint venture

D. Direct investment

________ are usually “friendly.”

A. Mergers

B. Acquisitions

C. Takeovers

D. Buyouts
A long-term contract is usually an agreement between:

A. two organizations in the same industry.

B. an organization and its suppliers.

C. two organizations in unrelated industries.

D. a domestic and international organization.

One of the major disadvantages of the McKinsey matrix is that of:

A. simplicity.

B. uniqueness.

C. subjectivity.

D. All of the answer choices are correct.

The _______ strategy establishes the overall direction that the organization hopes to go.

A. business

B. functional

C. corporate

D. competitive

A legal transaction in which two or more organizations combine operations through an exchange of stock is called a(n):

A. acquisition.

B. merger.

C. takeover.

D. repurchase.

Diversifying into a completely different industry from the organization’s current operations is referred to as:

A. concentric diversification.

B. vertical diversification.

C. conglomerate diversification.

D. horizontal diversification.

The types of renewal strategies include:

A. retrenchment strategy.

B. turnaround strategy.

C. diversification strategy.

D. retrenchment and turnaround strategies.

A paper manufacturer purchasing a forest of trees is an example of:

A. forward vertical integration.

B. backward vertical integration.

C. product/market exploitation.

D. product development.

Coca-Cola is a ________ organization and PepsiCo is an example of a ________ organization.

A. multiple-business; single-business

B. single-business; multiple-business

C. multiple-business; multiple-business

D. All of the answer choices are correct.

A concentration strategy:

A. does not enable an organization to become very good at what it does.

B. cannot cause the organization to become vulnerable to industry and other external environmental shifts.

C. allows the firm to diversify into new industries.

D. is a growth strategy in which the organization concentrates on its primary line of business and looks for ways to meet its growth objectives through expanding its activities or operations in its core business.

One of the risks associated with a horizontal integration strategy is:

A. a potential violation of antitrust laws.

B. exponential growth.

C. increased market exposure.

D. increase in sales.

Related diversification is ________ unrelated diversification.

A. less effective than

B. more effective than

C. just as effective as

D. less profitable than
Starting a business from the ground up is referred to as:

A. product development.

B. market development.

C. strategic development.

D. internal development.

EXAM 8
A small business is NOT characterized by:

A. being independently owned.

B. having fewer than 100 employees.

C. engaging in innovative practices.

D. having little impact on its industry.

Chuck Hanson encourages his employees to come with new ideas and ways to do business to replace existing practices. This process is called:

A. destructive creativity.

B. innovation.

C. creative destruction.

D. applied creativity.

All of the following organizations are examples of social service NFPs except:

A. Junior League.

B. American Red Cross.

C. Mothers Against Drunk Drivers.

D. Academy of Management.

Small businesses and entrepreneurial ventures are the driving force of change in the process of:

A. market positioning.

B. strategic positioning.

C. creative destruction.

D. competitor interrelationships.

An example of a cause-related NFP is:

A. Camp Fire.

B. the University of Minnesota.

C. Save the Whales.

D. Bill and Melinda Gates Foundation.
The strategy that has the primary intent to enhance the image of the supporting company is known as:

A. cause-related marketing.

B. not-for-profit marketing alliances.

C. licensing.

D. direct investment.

All of the following are part of the strategic management process for small businesses except:

A. strategy analysis.

B. strategy formation.

C. strategy evaluation.

D. strategy implementation.

Small businesses employ over ________ of all private workers.

A. 90 percent

B. 25 percent

C. 50 percent

D. 75 percent

Which of these is NOT a characteristic of entrepreneurial ventures?

A. Little impact on industry

B. Innovative practices

C. Pursue opportunities

D. Have growth and profitability as main goals

The not-for-profit marketing alliance is an extension of:

A. mergers and acquisitions.

B. divestment.

C. cause-related marketing.

D. licensing.
Small businesses are independent businesses that have fewer than ________ employees.

A. 100

B. 200

C. 300

D. 500

The competitive strategy choices for small businesses and entrepreneurial ventures are:

A. often limited to focus strategies.

B. often limited to a low-cost strategy.

C. often limited to a differentiated strategy.

D. limited because of technological advances.

Both public sector and not-for-profit organizations must develop a ________ to ensure their continued existence.

A. competitive advantage

B. strong management pool

C. lobbying group

D. link with companies

A strategic advantage of entrepreneurial ventures/small businesses over large businesses is:

A. economics of scale.

B. flexibility.

C. marketing options.

D. distribution.

Small businesses account for ________ percent of the private sector output.

A. 10

B. 20

C. 25

D. 50

A strategic practice in which for-profit businesses link up with a social cause that fits in well with the company’s product or service is referred to as:

A. licensing.

B. franchising.

C. cause-related marketing.

D. strategic piggybacking.

Examples of measurement of a church’s strategic performance include all of the following except:

A. member contributions.

B. percentage increase or decrease of members.

C. number of members.

D. All of the answer choices are correct.
To evaluate strategy, there must be a connection between the evaluation and the ________ of the not-for-profit organization.

A. revenues

B. goals

C. objectives (moderate)

D. goals and objectives

Charles Hanson just opened Chuck’s Bikes and Trikes, a motorcycle repair facility. Charles has 25 employees even though the repair facility is located in a small rural town. Chuck’s Bikes and Trikes is an example of:

A. an entrepreneurial venture.

B. a small business.

C. an innovative business.

D. All of the answer choices are correct.

Research on community arts organizations has indicated that Porter’s strategies of ________ are utilized.

A. cost leadership, innovation, and focus

B. differentiation and focus

C. innovation and focus

D. cost leadership, differentiation, and focus