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Exam 8: Strategy Formulation and Execution

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Question 51

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CASE Scenario - Theresa Teutul Theresa Teutul was an executive with Digital Industries, a leading manufacturer of color televisions. She recognized that the color television market in the late 1970's was facing significant challenges. After two decades of highly successful development and marketing, the sales of color televisions had slowed and replacing older color television sets largely created her market. -The strategy that the BCG matrix suggests that Theresa should take for this SBU is:

A) invest and grow.
B) liquidate while still profitable.
C) ask her astrologer for advice.
D) keep the SBU healthy and use its excess earnings to invest in other SBU's.
E) divestiture.

F) A) and B)
G) B) and D)

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Question 52

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The acquisition of a business that is related to current product lines or that takes the corporation into new areas is called _____.

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Question 53

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An SBU stands for Star Business Unit.

Strategic thinking is more important -profit businesses than for non-profit organizations.

Which of the following is NOT one of the tools used for putting strategy into action?

The "How do we compete?" question concerns functional-level strategy.

The _____ function recruits selects, trains, transfers, promotes, and lays off employees to achieve strategic goals.

A transnational strategy combines degrees of both global standardization and national responsiveness.

After Sunshine Systems merged with RTD Enterprises, company executives noticed that due to increased employee collaboration between the two units, costs were down and revenues increased within both areas. This is an example of what business phenomenon?

In the BCG matrix, the dog has _____ market share and _____ business growth rate.

With a(n) _____ strategy, the organization aggressively seeks efficient facilities, pursues cost reductions, and uses tight cost controls to produce products more efficiently than competitors.

When properly managed, _____ can create additional value with existing resources, providing a big boost to the bottom line.

Unrelated diversification occurs when an organization expands into a totally new line of business.

_____ is the set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals.

Core competence is the plan of action that prescribes resource allocation and other activities for dealing with the environment.

Janessa is the CEO of a privately-held software company. In defining corporate-level strategies, which of the following questions would she most likely be concerned with?

Which of the following pertains to the organization as a whole?

Which strategy can be profitable for an organization when customers are loyal and willing to pay high prices?

With a(n) _____ strategy, the organization concentrates on a specific regional market or buyer group.

Scenario - SS.com Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an on-line stock investment and trading subsidiary, SS.com, where investors can trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share but it faces a very high business growth rate. In the brokerage industry the competition is fierce and all players are cutting their on-line commission rates. -SS.com subsidiary for Swift Stocks can be classified as a _____.