Question 1

Give an example of a technological leader.

Accepted Answer

Answers will vary.Examples should includ...

Question 2

To avoid the consensus trap,which technique assigns a group or individual to identify potential pitfalls and problems with a proposed alternative strategy in a formal presentation?

Accepted Answer

A)   devil's advocate
B)   Sloan's judgment
C)   sales presentation
D)   dialectical inquiry
E)   scenario constructionF) B) and C)
G) A) and B)

Question 3

What is a corporate scenario? What are the three steps in their construction?

Accepted Answer

Corporate scenarios are pro forma balanc...

Question 4

A strategy's compatibility with the corporate culture has little likelihood of impacting its success.

Accepted Answer

A) True 
 B)False

Question 5

When a company deals with obtaining raw materials,parts,and supplies needed to perform the operations function,the company is developing its ________ strategy.

Accepted Answer

A)   operations
B)   purchasing
C)   R&D
D)   financial
E)   human resource managementF) C) and D)
G) None of the above

Question 6

Corporate scenarios are pro forma balance sheets and income statements that forecast the effect each alternative strategy and its various programs will likely have on division and corporate return on investment.

Accepted Answer

A) True 
 B)False

Question 7

When the Kellogg Company changed to a push strategy,they spent more money on consumer advertising designed to build brand awareness so that shoppers will ask for the products.

Accepted Answer

A) True 
 B)False

Question 8

In a leveraged buyout,the acquired company,in effect,pays for its own acquisition.

Accepted Answer

A) True 
 B)False

Question 9

Fujitsu demonstrated a follow-the-leader strategy when it imitated IBM's strategy focused on mainframes in 1990.

Accepted Answer

A) True 
 B)False

Question 10

A recent trend in information systems strategy used by multi-national corporations is

Accepted Answer

A)   computerizing accounting.
B)   automating customer service.
C)   practicing follow-the-sun management.
D)   replacing Fortran with Cobol in order to boost productivity.
E)   replacing mainframe computers with robots.F) A) and B)
G) None of the above

Question 11

W.Edwards Deming,a well-known management consultant,strongly recommended sole sourcing as the only manageable way to obtain high supplier quality.

Accepted Answer

A) True 
 B)False

Question 12

The use of the Internet to market goods directly to the customer allows a company to use dynamic pricing.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not true of risk?

Accepted Answer

A)   It includes the length of time the asset will be unavailable for other uses.
B)   It includes the probability that the strategy will be effective.
C)   Managers who own a significant amount of stock in their firms are less likely to engage in risk-taking actions.
D)   It includes the amount of assets the corporation must allocate to that strategy.
E)   The greater the assets involved, the more likely top management is to demand a high probability of success.F) B) and D)
G) C) and D)

Question 14

Distinguish between a market development and a product development strategy.

Accepted Answer

Using a market development strategy,a co...

Question 15

Church & Dwight uses the line extension strategy when they put the Arm & Hammer name on various new food products.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not one of the major outsourcing errors that should be avoided?

Accepted Answer

A)   failure to keep core activities in-house
B)   selecting the wrong vendor
C)   writing a poor contract
D)   micromanaging the outsourced activity to maintain control
E)   overlooking personnel issuesF) C) and D)
G) B) and C)

Question 17

Penetration pricing attempts to hasten market development and offers the pioneer the opportunity to use the experience curve to gain market share with a low price and dominate the industry.

Accepted Answer

A) True 
 B)False

Question 18

The orientation of the functional strategy is dictated by its parent business unit's strategy.

Accepted Answer

A) True 
 B)False

Question 19

The key to outsourcing is to purchase from the outside only those activities that

Accepted Answer

A)   are not key to the company's distinctive competence.
B)   are very expensive.
C)   provide the company competitive advantage.
D)   are provided by an important supplier.
E)   are not very expensive.F) A) and D)
G) None of the above

Question 20

Risk in strategic management is only the probability that the strategy will be effective.

Accepted Answer

A) True 
 B)False

Exam 8: Strategy Formulation: Functional Strategy and Strategic Choice

When the Kellogg Company changed to a push strategy,they spent more money on consumer advertising designed to build brand awareness so that shoppers will ask for the products.

Correct AnswerverifiedShow Answer

In a leveraged buyout,the acquired company,in effect,pays for its own acquisition.

Correct AnswerverifiedShow Answer

Distinguish between a market development and a product development strategy.

Correct AnswerverifiedUsing a market development strategy,a co...View AnswerShow Answer

The use of the Internet to market goods directly to the customer allows a company to use dynamic pricing.

Correct AnswerverifiedShow Answer

To avoid the consensus trap,which technique assigns a group or individual to identify potential pitfalls and problems with a proposed alternative strategy in a formal presentation?

Correct AnswerverifiedShow Answer

When a company deals with obtaining raw materials,parts,and supplies needed to perform the operations function,the company is developing its ________ strategy.

Correct AnswerverifiedShow Answer

Give an example of a technological leader.

Correct AnswerverifiedAnswers will vary.Examples should includ...View AnswerShow Answer

The key to outsourcing is to purchase from the outside only those activities that

Correct AnswerverifiedShow Answer

Fujitsu demonstrated a follow-the-leader strategy when it imitated IBM's strategy focused on mainframes in 1990.

Correct AnswerverifiedShow Answer

Corporate scenarios are pro forma balance sheets and income statements that forecast the effect each alternative strategy and its various programs will likely have on division and corporate return on investment.

Correct AnswerverifiedShow Answer

Which of the following is not true of risk?

Correct AnswerverifiedShow Answer

W.Edwards Deming,a well-known management consultant,strongly recommended sole sourcing as the only manageable way to obtain high supplier quality.

Correct AnswerverifiedShow Answer

The orientation of the functional strategy is dictated by its parent business unit's strategy.

Correct AnswerverifiedShow Answer

Risk in strategic management is only the probability that the strategy will be effective.

Correct AnswerverifiedShow Answer

What is a corporate scenario? What are the three steps in their construction?

Correct AnswerverifiedCorporate scenarios are pro forma balanc...View AnswerShow Answer

A strategy's compatibility with the corporate culture has little likelihood of impacting its success.

Correct AnswerverifiedShow Answer

Church & Dwight uses the line extension strategy when they put the Arm & Hammer name on various new food products.

Correct AnswerverifiedShow Answer

Penetration pricing attempts to hasten market development and offers the pioneer the opportunity to use the experience curve to gain market share with a low price and dominate the industry.

Correct AnswerverifiedShow Answer

A recent trend in information systems strategy used by multi-national corporations is

Correct AnswerverifiedShow Answer

Which of the following is not one of the major outsourcing errors that should be avoided?

Correct AnswerverifiedShow Answer

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Using a market development strategy,a co...
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Correct Answer
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Answers will vary.Examples should includ...
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Corporate scenarios are pro forma balanc...
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Correct Answer
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