Chapter 8 management

1. In which of the following strategies does the organization aggressively seek efficient facilities, pursue cost reductions, and use tight cost controls to produce products more efficiently than competitors?

• Cost leadership

• Diversification

• Vertical integration

• Unrelated diversification

• Differentiation

The star has a

• Large market share in a rapidly growing industry

• Large market share in a slow-growth industry

• Moderate market share in a slow-growth industry

• Small market share in a rapidly growing industry

• Small share of a slow-growth market

The standardization of product design and advertising strategies throughout the world is called

• Globalization

• Expert strategy

• Multidomestic strategy

• Diversification

• Glocalization

Which of the following statements is true about the cash cow?

• It has a large market share in a slow-growth industry.

• It generates tremendous profits in a rapidly growing industry

• It has a small market share in a rapidly growing industry

• It is generally a dead business that should be divested

• It has a small market share in a slow-growth industry

The plan of action that prescribes resource allocation and other activities for dealing with the environment and helping the organization attain its goals is called

• a strategy.

• Synergy

• Corporate-level strategy

• Cost leadership

• Strategic management

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

• Diversification

• Differentiation

• A portfolio strategy

• Strategy execution

• SWOT analysis

Double Click, Inc., has a number of strategic business units. Its hand-held computer unit has a large market share in this rapidly growing industry. Its hand-held computer business would be classified as

• a star.

• A dog

• Stuck in the middle

• A question mark

• A cash cow

Classy Clay has extremely creative employees who, in the opinion of the organization, keep the company ahead of the competition. The creativity of these employees would be classified as a(n)

• internal strength.

• External opportunity

• External strength

• Neutral factor

• Internal weakness

1. Which of these strategies can be profitable for an organization when customers are loyal and willing to pay high prices?

• Differentiation

• Liquidation

• Overall cost leadership

• Focus

• Globalization

1. Where does the information about opportunities and threats come from?

• External information

• 1. A department-by-department study of the organizations 

• Financial ratios of the organization

• Employee grievances

• An analysis of the organization’s internal environment