Strategic Management 3rd Edition Rothaermel Test Bank

MultipleChoiceQuestions

1. TheChiefExecutiveOfficer(CEO)ofYahoo,MarissaMayer,maintainsthatifacompanybuildsthe bestproductpossible,profitswillcome.Identifythephrasethatrepresentsthenewvisionshe developedforYahoo.

A.toachievehumansustainabilitywhilehavingfundoingit

B.toprovideahigh-qualityproductthathasenvironmentalsustainability

C.toappealtothewholepersonatworkandathome

D.tomaketheworld'sdailyhabitsmoreinspiringandentertaining

2.TheChiefExecutiveOfficer(CEO)ofYahoo,MarissaMayer,establishedamissionbybuildingon hervision.Consideringthis,howdidMayerimplementthemissionofYahoo?

A.bymakingtheuserexperienceofthemobileInterneteasyandfun

B.byconvincingemployeestoworkwithapurpose

C.bymakingthemobileInternetanefficienttoolforresearchers

D.byconvincingemployeestomaketheproductmoreaccessible

3.Thefirststepinthestrategicmanagementprocessisto

A.defineafirm'svision,mission,andvalues.

B.understandthestrategiesofthecompetitors.

C.puttheguidingpoliciesofafirmintopractice.

D.developfunctionalandbusiness-levelstrategies.

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Chapter02 StrategicLeadership:ManagingtheStrategyProcess

Strategic Management 3rd Edition Rothaermel Test Bank Full Download: http://testbanktip.com/download/strategic-management-3rd-edition-rothaermel-test-bank/ Download all pages and all chapters at: TestBankTip.com

4.Strategicleadershippertainstotheuseofpowerandinfluenceby_____todirecttheactivitiesof otherswhenpursuinganorganization'sgoals.

A.productionworkers

B.lower-levelmanagers

C.externalstakeholders

D.corporateexecutives

5.FreeWinds,Inc.isacompanythatmanufacturesavarietyofgeneratorsthatrunonwindpower. Thecompanywantstoensurethatwindtechnologyreplacesallformsofexhaustibleenergy sourcesinthenearfuture.WhichofthefollowingstatementswillmakeanaccuratevisionforFree Winds?

A.Wemakeproductsthatrunonwindenergy.

B.Allnationsaroundtheglobeshouldhaveaccesstoasustainableenergysource.

C.Thecompanyaimstomakeworkingfunandpleasurableforitsemployees.

D.Weprovideenergy-efficientsourcesandservicesbyinvestinginresearchandinnovation.

6.TrueHelpisanonprofitorganizationthatworkstowardrehabilitatingthehomeless.Thecredoof theorganizationis"helpushelpyou."ForanorganizationlikeTrueHelp,whichofthefollowing statementswouldmakeanappropriatemission?

A.Helpushelpyoufindahome.

B.Oneday,everyoneinthisnationwillhaveahometoprotectthemselves.

C.Wehelpthehomelessgainandsustainfinancialindependencebyprovidingemployment opportunities.

D.Ourmissionistoturnthisnot-for-profitorganizationintoafor-profitorganizationsothatthe stakeholdersarebenefited.

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7.Strategiccommitmentsareactionsthatare

A.inexpensive.

B.long-termoriented.

C.easytoreverse.

D.easytoimitate.

8.Visionarycompaniesareabletooutperformtheircompetitorsbecause

A.theirvisionstatementsaremoreproduct-oriented.

B.theyprovidemoreaspirationalvisions.

C.theirvisionsareexclusivelyfinancial.

D.theyisolateinternalstakeholdersindefiningtheirvisions.

A.backuptheirvisionswithstrategiccommitmentsthatarecostlyanddifficulttoreverse.

B.increasetheirstrategicflexibilitybydevelopingproduct-orientedvisionstatements.

C.isolatetopmanagersfromtheorganizationalvalues.

D.pursuevisionsthatareexclusivelyfinancialandnotaspirational.

A.TheCEOdecideswhotheproductmanagerswillbeforacompany.

B.TheCEOdefinesthemainproblemsfacingacompany.

C.Strategicleadersdesignamethodtoformulateandimplementstrategy.

D.Strategicleadersfocusoncreatingavisionthatreflectsthecompany'sstrategy.

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9.Tobeeffective,firmsneedto 10.Whatisthestrategicmanagementprocess?

11.Whatisstrategicleadership?

A.theabilitytodelegateauthoritytocreateaneffectivestrategicmanagementprocess

B.theexecutives'useofpowerandinfluencetodirecttheactivitiesofotherswhenpursuingan organization'sgoals

C.theabilitytoinspiremanagersandotheremployeestocreatethebestproductpossible

D.theexecutives'useofpowerandinfluencetoinspireworkerstotakeresponsibilityforthefinal product

12.Strategiccommitmentsareactionsthatare

A.inexpensive,long-termoriented,anddifficulttoreverse.

B.inexpensive,short-termoriented,andeasytoreverse.

C.costly,long-termoriented,anddifficulttoreverse.

D.costly,short-termoriented,andeasytoreverse.

13.Whichofthefollowingexamplesreflectsthestrongestvision?

A.AtFuentesElectronics,manyemployeesgetpaidwellbutdonotfeeltheirworkisimportant.

B.AtFuentesElectronics,allemployeesaremotivatedtomakethebestmicrowaveovensonthe market.

C.AtFuentesElectronics,mostemployeeswanttocreateabettermicrowaveoventhantheir closestcompetitor.

D.AtFuentesElectronics,someemployeesdonotunderstandthemaingoalofthecompany.

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14.Whichofthefollowingsummarizesthedifferencebetweenafirm'svisionandmission?

A.Avisionstateswhatafirmwantstoaccomplish;amissionstateshowafirmplanstoaccomplish thisvision.

B.Avisionstatestheethicalvaluesofafirm;amissionstatesthemonetarygoalsofafirm.

C.Avisionstateshowmuchafirmwantstoearn;amissionstateshowtheseearningswillbe accomplished.

D.Avisionstatesthemanagementvaluesofafirm;amissionstatesthevaluesoftheother workers.

15.Whichofthefollowingisanexampleofaproduct-orientedvisionstatement?

A.Andrea,Ltd.wantstoadapttheirpictureframestothechangingdemandsofconsumers.

B.Andrea,Ltd.wantstoalwayssatisfytheconsumerswhopurchasepictureframes.

C.Andrea,Ltd.wantstoprovidethebestbenefitsforemployeesinthepicture-frameindustry.

D.Andrea,Ltd.wantstobethebestmanufacturerofpictureframesintheindustry.

16.Acustomer-orientedvisionstatementfocusesemployeestothinkabouthowbestto

A.makeaproducteasiertouse.

B.increasetheirefficiencyforconsumers.

C.improveapopularproduct.

D.solveaproblemforaconsumer.

17.Whyisitbetterforfirmstokeeptheirvisionstatementscustomer-orientedratherthanproductoriented?

A.Customer-orientedvisionstendtohaveamoreshort-rangeviewofchangingenvironments.

B.Customer-orientedvisionstendtohaveamoremyopicviewofchangingenvironments.

C.Customer-orientedvisionstendtobemoreflexiblewhenadaptingtochangingenvironments.

D.Customer-orientedvisionstendtobemorestablewhendealingwithchangingenvironments.

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18.Customer-orientedvisionsdo not

A.leaveopenthemeanstoofhowtomeetaneed.

B.defineabusinessaccordingtosolutions.

C.definehowacustomerneedwillbemet.

D.providecompanieswithacompetitiveadvantage.

19.Whichofthefollowingstatementsaboutproduct-orientedvisionsistrue?

A.Theytendtoforcemanagerstotakeamyopicviewofthelandscape.

B.Theyallowcompaniestoeffectivelyadapttochangingenvironments.

C.Theydefineabusinessintermsofprovidingsolutionstocustomers.

D.Theyallowfirmstotakeaneed-basedapproachtotheirgoals.

20.HandyPro,Inc.isacompanythatmanufactureselectrictoolslikedrills,screwdrivers,andsaws. Whichofthefollowingbestillustratesaproduct-orientedvisionforHandyPro?

A.tomakepeople'slivessimpleandeasy

B.toalloweveryonetohavetheluxuryofelectrictooltechnology

C.tohelppeoplesavetimeandenergyspentusingmanualtools

D.tobethepioneeringmanufacturerofelectrictools

21.Whichofthefollowingstatementsistrueofcustomer-orientedvisions?

A.Customer-orientedvisionsidentifyhowacustomerneedwillbemet.

B.Customer-orientedvisionstatementsarenotthesameaslisteningtoyourcustomer.

C.Customer-orientedvisionsreduceacompany'sabilitytoadapttoachangingenvironment.

D.Customer-orientedvisionsdefineabusinessintermsofgoodsorservicesprovided.

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22.Whichofthefollowingisacustomer-orientedvision?

A.tobethemostprogressiveinsurancecompany

B.tobethebestautomobilecompanyintheworld

C.toenablepeoplethroughouttheglobetoidentifytheircapabilities

D.tomanufactureinnovativeproductsthroughcontinuouslearning

23.PioneerPharmaInc.andGHMedicinesCorp.aretwocompetingfirmsinthepharmaceutical industry.WhilePioneerPharmaInc.'svisionis"tobeapreeminentdrugmanufacturerinthe industry,"GHMedicinesCorp.'svisionis"tomakegoodhealtharealityforeveryonearoundthe world."Whichofthefollowingisanimplicationofthesedifferentvisions?

A.GHMedicines'visionismoreproduct-orientedthanthevisionofPioneerPharma.

B.PioneerPharmaismorelikelytohaveapositiverelationshipbetweenitsvisionandfirm performancethanGHMedicines.

C.PioneerPharma'svisionismorelong-termandfuturisticthanGHMedicines'vision.

D.GHMedicineswillbemoreflexiblethanPioneerPharmawhenadaptingtochanging environments.

24.Apositiverelationshipbetweenvisionstatementsandfirmperformanceismorelikelytoexist when A.visionsareproduct-oriented.

B.internalstakeholdersareisolatedfromdefiningandrevisingthevisions.

C.organizationalstructuresarealignedwiththefirm'svisionstatement.

D.visionstatementsareequivalenttolisteningtothecustomers.

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25.Whichofthefollowingisanexampleofanorganizationalvalue?

A.BurtellOil,Inc.increasestheinspectionofpipelinesabovethelegalrequirementtopreventoil spills.

B.BurtellOil,Inc.lowersgaspricestogainanadvantageovertheirclosestcompetitor.

C.BurtellOil,Inc.financesresearchforfindingoildepositswithintheUnitedStates.

D.BurtellOil,Inc.launchesanadcampaignthatpromotesthecompanyasbeingenvironmentally friendly.

26.Howdostrongethicalvaluesbenefitafirm?

A.Theylaythegroundworkforaquickincreaseofprofitsandshort-termsuccess.

B.Theyserveastheguardrailsputinplacetokeepthecompanyontrackwhenpursuingits mission.

C.Theyprovidestrongpublicrelations,whichcaneitherbenefitorhindercompetitiveadvantage.

D.Theyemphasizebenefitingemployeesbysignificantlyincreasingprofit.

27.ThemanagementofWongIndustriesshowedacommitmentto______byincreasingthesalaryof manyfemaleemployeestomeetitsgoalofhavingequalpayforwomenandmenwhoperform comparablework.

A.scenarioplanning

B.upper-echelonstheory

C.product-orientedvision

D.organizationalvalues

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28._____arebestdescribedastheethicalstandardsandnormsthatgovernthebehaviorofindividuals withinafirm.

A.Jobdescriptions

B.Customsduties

C.Correctivecontrols

D.Organizationalvalues

29.Organizationalvaluesarethe_____thatgovernthebehaviorofindividualswithinafirmor organization.

A.economicmeasures

B.ethicalstandardsandnorms

C.politicalprinciplesandpolicies

D.socialbeliefsandactions

30.Whendoemployeesfailtoadopttheorganizationalvaluesofafirm?

A.whentheinternalstakeholdersofthefirmareinvolvedindesigningthevalues

B.whenthetopmanagersinthefirmaremerelypayinglipservicetothefirm'sstatedvalues

C.whenthestrategicleadersinthefirmpropagateandexhibitthesamevalues

D.whentheorganizationalstructure,suchasitsstrategicdecisionmaking,isalignedwithitsvalues

31.Organizationalvalueshelpindividualsmakechoicesthatare

A.legalbutunethical.

B.bothillegalandeffective.

C.bothethicalandeffectiveinadvancingacompany'sgoals.

D.ethicalbutineffectiveinachievinglong-termsuccess.

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32.Executiveswhosevisionandactionsenabletheirorganizationstoachievecompetitiveadvantage demonstrate

A.top-downstrategicplanning.

B.functionalstrategy.

C.strategicleadership.

D.dominantstrategicplanning.

33.TheCEOofJulietComputerswasthechildofparentswhohaddifficultymakingenoughmoneyto supporttheirfamily.Asaresult,heandhissiblingsdidnothaveaccesstomanyadvantagesthat childrenfromwealthierfamilieshad.ThisCEO,therefore,emphasizedmakingaffordable computersthatcouldbeboughtbylow-incomehouseholds.Whichofthefollowingdoesthis exampledemonstrate?

A.dominantstrategicplanning

B.Level-5leadershippyramid

C.upper-echelonstheory

D.scenarioplanning

34.WhichofthefollowingisanaccuratedescriptionofaLevel1manager?

A.anindividualwhoworkseffectivelywithotherstoachievesynergiesandteamobjectives

B.ahighlycapableindividualwhomakesproductivecontributionsthroughmotivation,talent, knowledge,andskills

C.anindividualwho"doesthingsright,"isaneffectiveteamplayer,andorganizesresources effectivelytoachievepredeterminedgoals

D.anindividualwhoisaneffectivestrategicleaderthatbuildsenduringgreatnessintothe organizationsheorsheleads

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35.AstheCEOofaconglomerate,JuanaMarkexhibitedherstrongcommitmenttowardthe company'scorevaluethatcustomers'well-beingismoreimportantthanprofitwhenshedecided toliquidatethecompany'stobaccosubsidiary.Thetobaccobrandsoldbyhercompanywasa majorrevenueearnerinlesser-developednations.However,Juanabelievedthathercompanyhad toberesponsibletowardsociety.Inthisscenario,Juanahasdemonstrated

A.strategicleadership.

B.intrapreneurship

C.Machiavellianism.

D.individualism.

36.ThepharmaceuticalcompanyMerck'snewdrugVioxxwasablockbuster,generatingrevenuesof $2.5billionayearby2002andgrowingfast.Whenallegationsbegantoappearinthemedical community,MerckannouncedthevoluntarywithdrawalofVioxxfromthemarket.Inthisexample, Merckprovidesanexampleofwhatcanhappenifacompanydeviatesfromits

A.voluntaryresponsibilities.

B.realizedstrategy.

C.corevalues.

D.strategicdecisions.

37.The_____isaconceptualframeworkthatviewsorganizationaloutcomesstrategicchoicesand performancelevelsasreflectionsofthevaluesofthemembersofthetopmanagementteam, whointerpretsituationsthroughthelensoftheiruniqueperspectives.

A.two-factortheory

B.expectancytheory

C.upper-echelonstheory

D.valueorientationtheory

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38.Accordingtotheupper-echelonstheory,theorganizationaloutcomesofacompanyprimarily reflectthevaluesofthe

A.productionworkersinthecompany.

B.CEOofthecompany.

C.housekeepingstaffinthecompany.

D.externalstakeholdersofthecompany.

39.AccordingtotheLevel-5leadershippyramid,amanagerinLevel1typically

A.makesproductivecontributionsthroughmotivation,talent,knowledge,andskills.

B.workseffectivelywithotherstoachievesynergiesandteamobjectives.

C.presentscompellingvisionandmissiontoguidegroupstowardsuperiorperformance

D.buildsenduringgreatnessintotheorganizationsheorsheleads.

40.Jorgeispartofasalesteam.Heeffectivelycoordinateshistaskswithothersintheteamand willinglycontributestotheireffortsinachievingtheteam'sobjectives.Thus,Jorgeisin_____ofthe Level-5leadershippyramid.

41.AccordingtotheLevel-5leadershippyramid,amanageratLevel3hasacquiredtheabilityto

A.organizeresourceseffectivelytoaccomplishpredeterminedgoals.

B.buildenduringgreatnessintotheorganizationsheorsheleads.

C.identifythevisionandthemissionofthecompany.

D.justifyunethicalactivitiesaslegalandethical.

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A.Level5 B.Level4 C.Level3 D.Level2

42.Jasonisamanager.Hiscolleaguesandsubordinateslookuptohimasamanwhoalwaysdoesthe rightthings.Alongwithotherskills,hisabilitytoeffectivelyorganizeanddeployresourceslikeman power,material,andmoneyhasbeenappreciatedbyhisseniors.AccordingtotheLevel-5 leadershippyramid,whichofthefollowinglevelswouldbetheimmediatenextstepforJason?

43.TrunghasbeenanemployeewithPureEnergyInc.for15years.Hestartedwithanentry-leveljob, andtodayheisamanagerofanentiredivision.Overtheyears,Trunghasacquiredareputation fordoingtherightthingsinthecompany.Hence,asanefficientleader,heiscapableofeffectively communicatingandmotivatinghissubordinatestoworktowardthecompany'svisionandmission.

AccordingtotheLevel-5leadershippyramid,whichisthehighestlevelofleadershipTrunghas reachedsofar?

44.AccordingtotheLevel-5leadershippyramid,amanagerturnsintoanexecutivewhoiscapableof buildinglastinggreatnessintotheorganizationthroughacombinationofwillpowerandhumility whenheorshereaches

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A.Level2 B.Level3 C.Level4 D.Level5

A.Level5 B.Level4 C.Level3 D.Level2

A.Level5. B.Level3. C.Level2. D.Level1.

45.Duringanassessmentofemployeesandleadersinacompany,EthanBrownewascategorizedasa Level5managerintheLevel-5leadershippyramid.Whichofthefollowingcanbeinferredfrom thisinformation?

A.Ethaniscurrentlyateamleadinthecompany.

B.Ethanshowsnosignsofbeingagoodleader.

C.Ethanisatopmanagementexecutiveinthecompany.

D.Ethanhasjuststartedhiscareerasamemberofateaminthecompany.

46.WhichofthefollowingmanagersintheLevel-5leadershippyramidaremostcapableofleading theirorganizationsintogreatsuccessbyguidingtheorganizationstowardbuildingasustainable competitiveadvantage?

47.WhichofthefollowingbestdescribesaLevel5managerintheLevel-5leadershippyramid?

A.ConnieisanemployeewhojuststartedhercareeratDKInc.;shehasalreadybeenappreciated forherknowledgeandskillsinthenewcompany.

B.DmitriisanemployeeatInfiniteCircleInc.;hehashelpedhisteamachievetheirtargetsby contributingtotheteam'sefforts.

C.LuigiispartofthemarketingteamatRTCorp.;hehasbeengiventhechargeofmanaginga teamofthree,sohewillbepromotedtoamanager'spositionnextmonth.

D.AsokaistheCEOofGreenMachinesInc.;hehashelpedhiscompanyingainingandsustaining acompetitiveadvantagethroughethicaldecisionmaking.

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A.Level1 B.Level2 C.Level3 D.Level5

48.Whichofthefollowingsummarizesthedifferencebetweencorporatestrategyandbusiness strategy?

A.Corporatestrategydealswithhowtocompete;businessstrategydealswithwheretocompete.

B.Corporatestrategydealswithwhentocompete;businessstrategydealswithhowtocompete.

C.Corporatestrategydealswithhowtocompete;businessstrategydealswithwhentocompete.

D.Corporatestrategydealswithwheretocompete;businessstrategydealswithhowtocompete.

49.ThemanagementteamatClearSolutions,Inc.decidedtobuildabranchofficeinMemphis, Tennessee.Whichofthefollowingtermscorrectlydescribesthisaction?

A.strategyformulation

B.strategyimplementation

C.executionofstrategy

D.businessstrategy

50.CorporateexecutivesatLikeReal,Inc.decidetocompeteintheremotemodelairplaneindustryby makingthelargestmodelplanesavailable.Bydoingthis,theycompletedpartoftheir

A.implementationstrategy.

B.corporatestrategy.

C.functionalstrategy.

D.businessstrategy.

51.TheCEOofSam'sClub,RosalindBrewer,reportstoWalmart'sCEO,C.DouglasMcMillon,whoas corporateexecutiveoverseesWalmart'sentireoperations.Sam'sClub,therefore,isa_____of Walmart.

A.corporatepartner

B.strategicbusinessunit

C.branchoffice

D.housebrandmanufacturer

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52.Asapartofstrategyformulation,corporatestrategyconcernsquestionsrelatingto

A.whyweshouldcompete.

B.howtocompete.

C.wheretocompete.

D.howtoimplementthebusinessstrategy.

53.TheCEOofTrueWestProductsInc.(TWP)isacompanythatsellsawiderangeofproducts.Ithas decidedtoenterthemarketsofemergingnationslikeChinaandBrazil.Thismeansthatthecars, consumerelectronics,andservicessuchashotelsincludedundertheTWPbannerwouldbemade availableinthesenations.Whichofthefollowingstrategiesdoesthisscenariobestillustrate?

A.corporatestrategy

B.functionalstrategy

C.businessstrategy

D.divisionalstrategy

54.Asapartofstrategyformulation,afirm'sfunctionalstrategyprimarilyconcernsquestionsrelating to

A.wheretocompete.

B.whentocompete.

C.howtoimplementbusinessstrategy.

D.howtoentertargetmarkets.

55.Inalargecompany,whoismostresponsiblefordevisingthecorporatestrategy?

A.theCEOofthecompany

B.thelower-levelemployeesinthecompany

C.theheadoftheproductiondepartmentinthecompany

D.thehumanresourcemanagerinthecompany

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56.Whichofthefollowingstatementsistrueofcorporatestrategy?

A.Theobjectiveofcorporate-levelstrategyistoensurethatthesumofthevaluesofindividual businessunitsisgreaterthantheoverallcorporatevalue.

B.Acorporatestrategymustbeabletocreatesynergiesacrossbusinessunitsthatarequite different.

C.Formulatingacorporatestrategyinvolvesgeneralmanagersansweringquestionsrelatingto howtocompeteinordertoachievesuperiorperformance.

D.Decidingwhethertoadoptadifferentiationoracost-leadershipstrategyispartofformulating thecorporatestrategy.

57.BauerInc.isacompanythatmanufacturesplastics,fertilizers,tractors,andheadphonesundera singlebrand.ThetopmanagementatBauerhasdecidedtoenterthemedicalequipmentindustry basedonitsassessmentoftheprofitpotentialinthatindustry.Whichofthefollowingstrategies doesthisbestillustrate?

A.corporatestrategy

B.businessstrategy

C.functionalstrategy

D.divisionalstrategy

58.DuetopoliticalinstabilityinthecountryofUnitedMapa,thestrategicleadersattheheadquarters ofFTSuppliesInc.havedecidedtodivestthecompany'sbusinessfromtheforeignmarketin UnitedMapa.ThisdecisionwouldbeapplicabletoallthebusinessunitsofFTSuppliesInc. operatinginUnitedMapa.Thus,thisisa

A.businessstrategy.

B.divisionalstrategy.

C.functionalstrategy.

D.corporatestrategy.

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59.A(n)_____isbestdescribedasastand-alonedivisionofalargerconglomerate,withitsownprofitand-lossresponsibility.

A.corporation

B.strategicbusinessunit

C.affiliatecompany

D.functionaldepartment

60.Whichofthefollowingbestillustratesastrategicbusinessunit(SBU)?

A.Thehumanresourcedepartmentofalargecompanythatisresponsibleforhiringemployees forallitsdivisionalbranches

B.Theconsumerelectronicsdivisionofalargecompanythatalsomanufacturesautomobiles, apparel,andprocessedfood

C.Theproductdevelopmentteamattheheadquartersofafast-foodchain

D.Themarketsegmentwhichcanbecategorizedbetweentheincomelevels$10,000and$25,000

61.Acompany'sstrategicbusinessunit

A.doesnotneedtoadopttheoverallcorporatestrategy.

B.isresponsibleforitsownprofitandloss.

C.isadivisionsolelycreatedtodesignstrategiesduringturbulenttimes.

D.decideswhichindustriesandmarketstocompeteinforanentireconglomerate.

62.Whoamongthefollowingisresponsibleformakingbusinessstrategiesinalargeconglomerate?

A.theboardofdirectorsattheheadquarters

B.theshareholderofthecompany

C.thelower-levelemployeesinthecompany

D.thegeneralmanagersofindividualbusinessunits

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63.BlueBillionInc.isalargecompanythatsellsavarietyofproductssuchascosmetics,jewelry, frozenfoods,navigationelectronics,andairplanes.Apartfromthis,thecompanyalsohasastrong presenceintheserviceindustrythroughitschainofdancestudios,casinos,andnightclubs.Eachof itsproductdivisionsoperatesasanindividualbusinessandisresponsibleforitsownprofitsand losses.Thus,theseproductdivisionsunderBlueBillioncanbereferredtoas

A.limitedliabilitycompanies.

B.functionaldepartments.

C.strategicbusinessunits.

D.corporations.

64.Whichofthefollowingstrategiesbestillustratesagenericbusinessstrategy?

A.Acost-cuttingstrategythatcorporateexecutivesintheheadquarterswantallbusinessunitsofa largeconglomeratetoimplement

B.Astrategytousemonetaryincentivestomotivateemployeesworkingonaproject

C.Adecisiontocomputerizeafirm'sdatabaseinordertoimprovecustomerservice

D.Adecisiontonichemarketthejewelrysoldbyacompanywhiletheappareldivisionunderthe samecompanysellsitsproductsthroughmassmarketing

65.Whichofthefollowingfunctionsdothegeneralmanagersinstrategicbusinessunitsprimarily perform?

A.designgenericbusinessstrategiesbasedonguidelinesreceivedfromcorporateheadquarters

B.setoverarchingstrategicobjectivestounifytheentireconglomerateunderonemission

C.takeresponsibilityfordecisionsandactionswithinasinglefunctionalarea

D.allocatescarceresourcesamongdifferentbusinessdivisions

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66.T&RAutosInc.isalargeconglomeratethatoperatesin12differentcountries.Thecorporate executivesattheheadquartershavedecidedthatthecompany'sobjectiveforthenexttwoyears willbetoincreaseitscustomerequity.Basedonthisguidelinereceivedfromthetopmanagement team,theproductleaderofthehomeappliancesdivisionhasdecidedtoadoptacost-leadership strategyinallhis12units.Thus,thedecisionmadebytheproductleaderbestillustratesa_______ strategy.

67.TheregionalheadforCreativeDesignInc.inBorataniahasdecidedtosellthecompany'sproducts directlythroughcompany-ownedstoresbecausethedistributionsysteminthemarketisprimitive. Insixothermarkets,however,thecompanywillcontinuetooperatethroughafranchisesystem. Thus,thisdecisionmadebytheregionalheadatBorataniawillbeconsideredasa_____strategy.

68.WhiteLeoAutosmanufacturesandmarketsfourdifferentcars:LeoSport,LeoPrestige,LeoSpark, andLeoEase.Thesefourproductvariantsareoperatedasindividualbusinessunits.Whilethe productleadersofLeoSport,LeoPrestige,andLeoSparkhaveadoptedadifferentiationstrategy toattractthenichemarket:theproductleaderofLeoEasefollowsacost-leadershipstrategyto suitthemassmarket.ThisdecisionoftheproductleaderofLeoEasecanbeideallycategorizedas a_____strategy.

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A.corporate B.functional C.grand D.business

A.corporate B.tactical C.functional D.business

A.corporate B.functional C.business D.tactical Strategic Management 3rd Edition Rothaermel Test Bank Full Download: http://testbanktip.com/download/strategic-management-3rd-edition-rothaermel-test-bank/ Download all pages and all chapters at: TestBankTip.com

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