MGT603 Solved MCQs from Book by David (chap 5b) Show
79. When a domestic company first begins
to export to India, it is an example of 80. Which strategy generally entails large research and development expenditures? 81. All of the following
situations are conducive to market development except: Which strategy is appropriate when an organization competes in an industry
characterized by rapid technological developments? Diversification Strategies 83. Adding new, unrelated products or services for present customers is called 84. Which strategy should an organization use if it competes in a no-growth or a slow-growth industry. 85. Which of the following is not an example of when an organization should use an unrelated diversification strategy? 86. Adding new, unrelated products or services is called Defensive Strategies 87. Win-Dixie closing one-third of its stores and eliminating 22,000 jobs in an attempt to emerge from bankruptcy would be an example
of: 88. What kind of strategy is retrenchment? 89. Bankruptcy 90. Which chapter of the bankruptcy code applies to municipalities? 91. The Family Farmer Bankruptcy Act of
1986 created 92. Retrenchment would be an effective strategy when an organization 93. What term refers to selling a division of an organization. 94.
Which strategy should be implemented when a division is responsible for an organization’s overall poor performance? 95. Selling all of a company’s assets in parts for their tangible worth is called 96. Which strategy would be effective when the stockholders of a firm can minimize their losses by selling the organization’s assets. Michael Porter’s Five Generic Strategies 97. Under which strategy would you offer products or services to a wide range of customers at the lowest
price available on the market? 98. According to Porter, which strategy offers products or services to a small range of customers at the lowest price available on the market? 99. Under which condition would a cost
leadership strategy be especially effective? 100. Under which condition would a differentiation strategy be especially effective? Means for Achieving Strategies 101. What occurs when two or more companies form a temporary partnership or consortium for the purpose of capitalizing on some opportunity. 102. All of the following are cooperative arrangements except: 103. Which of the following is not a reason joint ventures fail? 104. Which strategy would be most
appropriate when the distinctive competencies of two or more firms complement each other especially well? Merger/Acquisition 105. When two organizations of about equal size unite to form one enterprise, which of these occurs? 106. Mergers and acquisitions are created for all of the following reasons except to 107. When companies take over functional operations of other firms, such as human resources,
information systems, payroll, accounting, or customer service, this is called Strategic Management in Small Firms 108. According to journalists’ findings, what is a serious obstacle for many small business owners. 109. Define and give an example of three integrative strategies. 110. List some guidelines for when forward integration would be a particularly good strategy to pursue. 111. Define and give an
example of three intensive strategies. 112. List some guidelines for when market
development would be a particularly good strategy to pursue. 113. Define and give an example of the two diversification strategies. 114. List some guidelines for when related diversification would be a particularly good strategy to pursue. 115. Define and give examples of joint venture, retrenchment, divestiture and liquidation. 116. Compare and contrast the five types of bankruptcy: Chapters 7, 9, 11, 12 and 13. 117. Discuss Michael Porter’s five generic strategies. 118. What are the characteristics of a firm that is successfully pursuing a cost leadership strategy? 119. Discuss four common problems that cause joint ventures to fail. 120. Name at least six reasons for performing mergers or
acquisitions. Which strategy would be most appropriate when the distinctive competencies of two or more firms?The correct option is: C) Joint venture
They aim at leveraging through their distinct competencies and strengths, creating synergies through resources, strategies, and expertise. This helps the businesses to take advantage of the strengths that they would not be able to develop on their own.
What is strategy distinctive competence?Distinctive competence refers to a superior characteristic, strength, or quality that distinguishes a company from its competitors. This distinctive quality can be just about anything—innovation, a skill, design, technology, name recognition, marketing, workforce, customer satisfaction, or even being first to market.
Which strategy is appropriate when an organization competes in an industry?The correct answer is B) Product development. Reason: The suitable strategy when a business firm competes in an industry related to advanced and quick technological developments is product development.
Is a popular strategy that occurs when two or more companies form a temporary partnership?Joint venture is a popular strategy that occurs when two or more companies form a temporary partnership or consortium for the purpose of capitalizing on some opportunity. Often, the two or more sponsoring firms form a separate organization and have shared equity ownership in the new entity.
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