Strategic Management and Planning Techniques Quiz Review

A(n) _____ strategy determines the direction the organization will take in making directional decisions.

• business

• organizational

• operational

• corporate

A(n) _____ strategy addresses organizational weaknesses, helps stabilize operations, and revitalizes organizational resources and capabilities.

• unrelated diversification

• horizontal integration

• vertical integration

• retrenchment

Colleen’s great-grandfather passed away and she inherited $10 million. Subsequently, she decides to start her own business as an interior decorator. Colleen is successful after the first three years, and she is approached by a competitor who is nearing retirement age. The competitor is interested in transferring her clients to Colleen. For Colleen, this would be a(n) _____ strategy.

• unrelated diversification

• horizontal integration

• vertical integration

• retrenchment

Greg inherited $500,000 from a family friend who passed away last year. He had been thinking about opening a retail store that sells video games. Greg finds a business opportunity with a supplier that sells travel cases for video gaming systems. They decide to merge together. This would be a(n) example of a _____ strategy.

• unrelated diversification

• horizontal integration

• vertical integration

• related diversification

A cola company decided to become its own distributor so the company would have sole control of the way its products reached different markets. This is an example of

• backward horizontal integration.

• forward horizontal integration.

• backward vertical integration.

• forward vertical integration.

If Southeast Airlines were to merge with Northeast Airlines, what kind of growth strategy would this exemplify?

• horizontal integration

• acquisition

• expansion

• vertical integration

A stability strategy is particularly appropriate when

• an organization is facing rapid growth.

• an organization is in a state of slow growth.

• an organization is not meeting its goals.

• an organization's performance is declining.

magine you are the owner of a small local peanut butter company. You have many competitors in the peanut butter market but your products are unique because you offer chocolate, hazelnut, and cinnamon raisin peanut butter flavors. Thinking about your competitive strategy, what should be your main focus?

• keeping a competitive edge by marketing your unique peanut butter flavors

• how to grow the company by adding new flavors each month

• social responsibility

• sending out free samples to gain new customers

Patrick majored in entrepreneurship and computer science in college. After graduation, he decided to start his own business as an e-business entrepreneur, founding an online B2B reverse auction company called CompuSave. After hiring several employees, Patrick requires that each person in this company be involved in studying trends involving new technology, competitors, and customers. These employees are involved in

• external analysis.

• internal environment.

• strategic management.

• strategic flexibility.

Which of the following statements would represent the BCG matrix cash cow?

• a company that has a high growth rate and high market share

• a company that has a high growth rate and a low market share

• a company that has a low growth rate and a low market share

• a company that has a low growth rate and a high market share