STRAMAN-PRELIM-Part2

During the growth stage of an industry life cycle, companies focus on:

• Reducing production

• Expanding as customers become familiar with products

• Retrenching from unprofitable markets

• Reducing workforce

The shakeout stage in the industry life cycle occurs when:

• Companies reach maturity

• Industry growth is no longer rapid enough to support all competitors

• Profits are maximized

• Market competition is eliminated

Companies often pursue global expansion during the:

• Introduction stage

• Growth stage

• Maturity stage

• Decline stage

Michael Porter's five forces model analyzes:

• The internal operations of firms

• The potential profitability of firms in an industry

• The marketing strategies of firms

• The organizational structure of businesses

Which of the following is NOT part of Porter’s five forces?

• Bargaining power of suppliers

• Technological advancements

• Threat of substitute products

• Intensity of rivalry among firms

What does Porter’s model focus on?

• Analyzing market share

• Determining a firm’s profitability

• Evaluating a company’s HR practices

• Monitoring financial growth

What is the focus of strategy formulation?

• Developing short-term operational plans

• Developing long-term strategies for success

• Allocating daily tasks

• Assigning employee roles

Strategy implementation refers to:

• Developing plans for success

• Taking actions to achieve formulated strategies

• Evaluating market performance

• Identifying competitors

Strategy evaluation involves:

• Continuously measuring performance and adjusting strategies

• Allocating financial resources

• Evaluating HR performance

• Increasing market share

A firm’s mission answers the question:

• What are our long-term objectives?

• What is our business?

• Who are our competitors?

• How do we increase market share?