Chapter 5 - Strategies in Action

What is a major benefit of having clear objectives in an organization?

• Increases internal competition

• Reduces sales

• Provides direction

• Prevents company growth

Which of the following is a financial objective?

• Lower operating costs

• Wider geographic coverage

• Higher return on investment (ROI)

• Improved product quality

Which of the following is NOT a strategic objective?

• Lower costs

• Rising stock price

• Technological leadership

• New or improved products

What is the purpose of the Balanced Scorecard in strategic management?

• To increase company profit through price reduction

• To monitor only financial performance

• To align daily operations with strategic goals

• To expand product lines to unrelated industries

What does the 'Customer Perspectives' component in the Balanced Scorecard measure?

• Cash flow

• Product quality and customer satisfaction

• Employee performance

• Manufacturing time

Which component of the Balanced Scorecard focuses on employee knowledge and skills?

• Financial

• Internal Processes

• Customer Perspectives

• Learning and Growth

Forward integration refers to:

• Acquiring competitors

• Becoming your own distributor

• Purchasing your supplier

• Reducing product prices

Which of the following is an example of backward integration?

• Intel acquiring Dell

• Starbucks buying a coffee farm

• Pepsico acquiring Quaker Oats

• Apple launching a new iPhone

What strategy involves acquiring a competitor?

• Market penetration

• Horizontal integration

• Retrenchment

• Product development

Market penetration focuses on:

• Entering new markets

• Creating unrelated products

• Promoting existing products more aggressively

• Reducing the number of products