3rd Strategic Management quiz

In diversification strategies, the unrelated diversification means that businesses are said to be related when their value chains possess competitively valuable cross-business strategic fits.

• true

• False

Most companies favor __________ diversification strategies to capitalize on synergies.

• related

• unrelated

• related and unrelated

Retrenchment, divestiture, and liquidation are the three ________ strategies.

a)      

b)     

c)      

d)     

• Integrative.

• Defensive.

• Intensive.

• Diversification.

_______________ occurs when an organization regroups through cost and asset reduction to reverse declining sales and profits.

• retrenchment

• divestiture

• liquidation

The __________ is sometimes called a turnaround or reorganizational strategy.

• Retrenchment

• divestiture

• liquidation

In defensive strategies, selling a division or part of an organization is called ___________.

• Retrenchment

• Divestiture

• Liquidation

When an organization has pursued a retrenchment strategy and failed to accomplish the needed Improvements; the liquidation strategy is the most appropriate to be followed.

• True

• False

__________ is selling all of a company’s assets, in parts, for their tangible worth.

• Retrenchment

• Divestiture

• Liquidation

Porter’s Generic strategies are ___________, _________, and __________.

• Retrenchment, divestiture, liquidation.

• Forward, backward, horizontal integration.

• Cost leadership, differentiation, focus.

In Porter’s Generic strategies, the ____________ strategy is best fit for consumers who are price-sensitive.

• Differentiation.

• Horizontal integration.

• Focus.

• Cost leadership