Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
11 Cards in this Set
- Front
- Back
|
Conglomeration is defined as: a. the act of growing through unrelated diversification, essentially by acquiring companies in different industries. b. the process in which one product of a company eats into the profits of another product of the same company. c. the pricing technique where certain unpopular products of a company are priced lower than normal in order to increase their sale. d. the strategy in which a company acquires other companies that deal with similar products or market segments. |
A |
|
|
According to the economist Milton Friedman, the goal of a business is to: a. satisfy all its stakeholders. b. generate job opportunities. c. make profits. d. serve the society. |
C |
|
|
Ryan is the manager of Home Repairs Inc., a company that provides a wide range of repair and maintenance services. He claims that Home Repairs is the only company that sends over technicians to a client's place for repair work within an hour of the client's call to the company. His company offers its services at very affordable prices. Home Repairs distinguishes itself from other companies by providing discounts for people who sign up for memberships. This scenario describes the company's ________ . a. objectives b. vision c. core competencies d. mission statement |
C |
|
|
The mission of a firm provides: a. an outline of what a firm hopes to achieve in a short period of time. b. a description of the activities that a firm performs for its customers. c. information of what a firm wants to achieve and how it plans to accomplish that. d. a series of quantifiable milestones with which a firm can assess its progress. |
B
|
|
|
Which of the following is true of the emergent aspects of strategy development? a. The line managers of an organization are usually at the forefront of change in an industry. b. The emergent aspects of strategy development are less important than its planned aspects. c. The emergent aspects of strategy development signify flexibility in an organization. d. They are formulated by a top-down process in the organization. |
C
|
|
|
Pro-Go is a company that manufactures travel gear. It specializes in selling products such as backpacks, tents, and sleeping bags. Pro-Go recently finalized a contract with a supplier who agreed to supply product material at very low prices. This brought down production costs and enabled Pro-Go to sell its equipment at reasonable prices. As a result, profits of Pro-Go rose by 20%. In this case, the procurement of material at low prices: a. conferred a long-term competitive advantage on Pro-Go. b. was an effective strategy. c. was a step that competitors of Pro-Go would find difficult to imitate. d. increased the company's operational effectiveness. |
D |
|
|
Which of the following statements is true of a business-level strategy? a. It involves the development of strategic alliances and partnerships with other firms. b. It essentially defines the portfolio of the various businesses that a company is involved in. c. It determines how a company will compete in a given business and succeed at it. d. It creates value through the coordination and configuration of multimarket activities. |
C |
|
|
A(n) ________ strategy attempts to provide a standardized product to all markets without taking into consideration the local tastes and responsiveness of the regions in which the product is being sold. a. global b. international c. transnational d. multinational |
A |
|
|
Which of the following is an advantage of exporting strategies? a. Exports are free from the impact of tariff legislation. b. They facilitate a firm to expand to global markets in an inexpensive way. c. Exporters retain complete control over the sales of their products in an international market. d. Exports are not generally affected by the political and economic instability of foreign markets. |
B
|
|
|
A contractual arrangement whereby a firm allows another firm to use its technology without permitting the use of a common brand name is known as: a. a joint venture. b. franchising. c. licensing. d. an alliance |
C |
|
|
In a(n) ________ , partners come together by contract and engage jointly in activities that benefit each another without creating a new entity. a. alliance b. acquisition c. subsidiary d. joint venture |
A |
