Question 1

Strategic objectives include larger market share,quicker on-time delivery than rivals,quicker design-to-market times than rivals,lower costs than rivals,and wider geographic coverage than rivals.

Accepted Answer

This statement lists examples of strategic objectives that firms may have in order to gain a competitive advantage over their rivals. These objectives all relate to different aspects of the business, such as market share, supply chain efficiency, design processes, cost management, and geographic reach. By achieving these objectives, firms can improve their overall performance and increase their chances of success in the marketplace.

Question 2

Strategic objectives include those associated with growth in revenues,growth in earnings,higher dividends,larger profit margins and improved cash flow.

Accepted Answer

False

Question 3

"If it ain't broke,don't fix it" refers to managing by crisis.

Accepted Answer

"If it ain't broke, don't fix it" means that if something is working well, there is no need to change or improve it. It is not necessarily referring to managing by crisis.

Question 4

A strategy of seeking ownership or increased control of a firm's suppliers is backward integration.

Accepted Answer

Backward integration is a strategy where a company seeks ownership or increased control over its suppliers. This allows the company to have better control over the supply chain, reduce costs, and improve efficiency.

Question 5

McDonalds currently owns more than 50 percent of its restaurants.

Accepted Answer

According to McDonald's 2019 annual report, as of December 31, 2019, approximately 93% of their restaurants were owned and operated by independent franchisees, and only about 7% were company-owned.

Question 6

Since a combination strategy bears no risk,many organizations pursue a combination of two or more strategies simultaneously.

Accepted Answer

While a combination strategy may try to mitigate risk, it does not completely eliminate it. Pursuing multiple strategies at the same time can still result in failure or unintended consequences.

Question 7

Market penetration,market development,and product development are intensive strategies.

Accepted Answer

Market penetration, market development, and product development are all intensive strategies that aim to increase sales and market share by focusing on existing products or markets.

Question 8

Divestiture is selling all of a company's assets,in parts,for their tangible worth.

Accepted Answer

The answer of Divestiture is selling all of a company's...

Question 9

A growing trend is for franchisers to buy out their part of the business from their franchisees.

Accepted Answer

It is not a growing trend for franchisers to buy out their part of the business from their franchisees. In fact, it is more common for franchisers to sell additional franchises to new owners or expand their brand through other means.

Question 10

The overall aim of the Balanced Scorecard is to balance financial objectives with strategic objectives.

Accepted Answer

The answer of The overall aim of the Balanced Scorecard...

Question 11

Objectives provide direction and allow for organizational synergy.

Accepted Answer

Objectives clarify the organization's goals and help employees understand what they are working toward. They also provide alignment and coordination across different departments and individuals, allowing for synergy in achieving the organization's overall mission.

Question 12

Horizontal integration is seeking ownership or increased control over competitors.

Accepted Answer

Horizontal integration involves acquiring or controlling other businesses that operate at the same level of the supply chain, in order to eliminate competition and increase market power.

Question 13

If a firm's present suppliers are expensive and unreliable in meeting the firm's needs for parts,components and/or raw materials,the firm should pursue a horizontal integration strategy.

Accepted Answer

Pursuing a horizontal integration strategy involves acquiring or merging with other companies in the same industry to increase market share and competitiveness. It does not directly address the issue of expensive and unreliable suppliers. The firm should instead consider alternative sourcing options or working on supplier relationship management to improve the current situation.

Question 14

Long-term objectives represent the results expected from pursuing certain strategies.

Accepted Answer

Long-term objectives are the expected results from pursuing certain strategies over an extended period of time.

Question 15

Horizontal integration is an appropriate strategy when the competitors of an organization are doing poorly.

Accepted Answer

Horizontal integration is an appropriate strategy when an organization wants to expand its market size or gain a competitive advantage. It involves acquiring or merging with companies that are in the same industry and at the same level of production. It is not dependent on the poor performance of competitors.

Question 16

A chief executive officer is located in the divisional level of a large firm.

Accepted Answer

The answer of A chief executive officer is located in...

Question 17

Franchising is an effective means of implementing forward integration.

Accepted Answer

Franchising allows a company to expand its business by granting franchisees the right to use the company's name, products, and services in exchange for fees and royalties. This allows the company to integrate forward into new markets, increase its distribution channels, and generate revenue from franchise fees and royalties.

Question 18

Forward integration strategy is especially effective when the availability of quality distributors is so limited as to offer a competitive advantage to those firms that integrate forward.

Accepted Answer

When quality distributors are limited, integrating forward allows a firm to have more control over the distribution process and can offer a competitive advantage.

Question 19

Gaining ownership or increased control over distributors or retailers is called forward integration strategy.

Accepted Answer

Forward integration involves a company expanding its control over the distribution of its products by acquiring or gaining ownership of distributors or retailers.

Question 20

When the correlation between dollar sales and dollar marketing expenditures has historically been low,market penetration is an appropriate strategy.

Accepted Answer

The answer of When the correlation between dollar sales and...

Quiz 5: Strategies in Action