True or False Quiz on Business Strategy

The four components for a successful acquisition are target identification and screening, bidding strategy, integration, and learning from the experience.

Customer needs are desires, wants, or cravings satisfied by means of the characteristics of a product.

Horizontal integration is the process of acquiring or merging with industry competitors in an effort to achieve the competitive advantages that come with large size or scale.

Organizational design is the process through which managers select the combination of organizational structure and control systems that they believe will enable the company to create and sustain a competitive advantage.

Companies that pursue an international strategy focus on increasing profitability by reaping the cost reductions that come from economies of scale and location economies.

Typically firms have a substantial ability to control trends in its general environment if it is able to correctly predict them.

Highlands Coffee Company has decided to enter the coffee machine manufacturing business for a six-month trial run. They are likely to have higher unit costs of manufacturing than the other established competitors in this industry.

Integrating mechanisms help coordination take place among people, functions, and divisions throughout the hierarchy of authority.

Mass customization is an example of a combination strategy because it provides unique products to customers and lower costs to the firm.

The corporate level of management occupies the apex of decision making within the organization.