Review
Sheet for Business Strategy Exam 2
Chapters 6, 8-13 Thompson/Strickland
Your exam will include about 50 multiple choice
items selected from the following list of questions and 10-20 fill in the
blanks/short answer (as identified below). Notice some of the fill in the blank
will be a review from Exam 1. I will also provide you with the definitions of a
particular ratio and you will be asked to use a word bank and identify the
appropriate name of the ratio. Ration definitions can be found on page C6-C7 in
the text. You will not be tested on Chapter 7.
Chapter 6
While we did
not cover Chapter 6 in class, please be prepared for the following 3 questions.
1.
What are the four major reasons companies opt to expand into global markets
2. A company is considered
a(n) ____________ company if it competes in a few foreign markets; a company is
considered a(n) ______________ if it competes on most continents.
3. Countries where the
business risks are considerable, but the opportunities for growth are huge
are called what?
Chapter 9
1. Which one of the following is not one of the elements of crafting corporate strategy for a diversified company?
2. The conditions that make diversification attractive for a company include
3. An example of a post-diversification strategy to strengthen a companies position
4. Diversification acts to build shareholder value when
5. The three tests for judging the merits of a particular diversification move are
6. A company that wants to diversify into new industries can achieve diversification by what means
7.
A joint venture is an
attractive way to gain access to a new industry when
8.
Generally, internal entry
into a new business is more attractive than acquiring an existing firm in the
targeted industry when
9. One strategic fit-based approach to related diversification would be to
10. Which of the following best illustrates an economy of scope?
11. Which of the following best illustrates unrelated diversification?
12. One of the chief advantages of unrelated diversification is that it
13. Unrelated diversification has appeal when
14. Which of the following is normally not an alternative for improving the performance of a diversified company's business portfolio?
15. As a rule, all the industries represented in a diversified company’s business portfolio should be judged on such attractiveness factors as
16. Retrenchment strategies in diversified companies typically entail
17. Be able to choose the best example of related diversification.
18. What are the three ways to diversify?
Chapter
10
19. Be able to identify industry attractiveness factors used to assess a diversified company’s business portfolio
20. The chief purpose of measuring each industry’s attractiveness relative to the others is to
21. Know the steps to calculating quantitative attractiveness ratings for the industries represented in a diversified company’s business portfolio
22. Assessments of how a diversified company's subsidiaries compare in competitive strength should be based on such factors as
23. Using relative market share to assess a business’s competitive strength is analytically superior to simple percentage measures of market share because relative market share
24. A weighted competitive strength assessment is generally analytically superior to an un-weighted rating scale because
25. Whereas re-engineering seeks ___________; TQM seeks ____________.
26. The most important consideration in judging which diversified company’s businesses have the best growth and profit prospects include
27. Plotting a diversified company’s business units on a nine-cell industry attractiveness-business strength grid is a useful tool for
28. The industry attractiveness/business strength matrix can be described as
29. Determining the extent to which there are competitively valuable value chain match-ups among a diversified company’s business subsidiaries is an integral part of which kind of “test”
30. Differences between “cash-cow” business, a "cash hog" business and a "star" business
31. In which of the following cases does divesting some business units seem to be most relevant?
Chap
11
32. Which of the following is not one of the principal strategy-implementing tasks?
33. Irrespective of organization size and whether implementation involves sweeping or minor changes, the most important leadership trait in implementing strategy successfully is
34. From a strategy-implementing perspective, building a capable organization should aim at
35. Which of the following is not one of the traits of core competencies?
36. Centralizing authority for some activities at the corporate level in a diversified enterprise has merit when
37. While crafting strategy is primarily a market-driven activity, implementing strategy is primarily a _______________ driven activity revolving around the management of ___________ and business _____________.
38. Delegating greater authority to subordinate managers and employees has what effect
Chapter
12
39. From a strategy-implementing perspective, budget allocations should primarily be based on
40. Which one of the following is not a benefit of prescribing policies and operating procedures to aid management’s task of implementing strategy?
41. The big difference between reengineering and continuous improvement programs like TQM is that
42. Which of the following is not an example of a support system for assisting better strategy implementation and execution?
43. The management task of linking the reward system tightly to the needs of strategy involves
44. What is the most important aspect of developing a strategy-supportive reward structure?
45. Management's most powerful strategy-implementing tool is
46. Some caution needs to be exercised in using performance-based compensation systems because – (read entire section on performance-based compensation system for this answer).
Chapter 13
47.
Which one of the following is not a fundamental part of a company’s
culture
48.
Under which type of culture might there be receptively to change,
experimentation, and new strategies
49.
Once established, company culture can be perpetuated by
50.
In a strong culture company
51.
Which one is not a typical characteristic of low performance or unhealthy
company culture
52.
Which of the following is not one of the managerial actions typically
taken to build a more strategy-supportive corporate culture
53.
Generally, management actions and initiatives that tighten the
culture-strategy fit need to…
54.
In order to promote an organizational climate where champion innovators
can blossom and thrive, strategy managers need to
55.
The single most visible factor that determine successful culture-change
efforts is
Fill
in the Blanks/Short Answer
I
will provide you with the definitions for the 7 Profitability ratios and 3
Liquidity Ratios found on page c-6,7.
I will provide the definition; you provide the name of the ratio from a word
bank.
Be able to list, in sequence, the five basic tasks of strategic management.
Be able to list Porter’s Five-Forces Model of Competitive. (know Figure 3-3)
Be able to list and provide examples of Michael Porter’s Five Generic Competitive Strategies (know Figure 5-1)
Given data, be able to calculate and plot data an industry attractiveness-business strength matrix. (Ch 10)