BMGT Exam 2 UPDATED ACTUAL Exam
Questions and CORRECT Answers
Which is the best first question to ask when starting the strategic management process? -
CORRECT ANSWER - What is our mission?
The ability of a firm to consistently outperform its rivals is called _______. - CORRECT
ANSWER - competitive advantage
General Electric is a complex conglomerate that owns both NBC Universal and GE Healthcare,
firms operating in very different industries. The strategies pursued for each of these units wihtin
GE would best be called _________ level strategies. - CORRECT ANSWER - business
An organization that is downsizing by cutting staff to reduce costs can be described as pursing a
________ strategy. - CORRECT ANSWER - retrenchment
When you buy music downloads online, the firm selling them to you is engaging in which type
of e-business strategy? - CORRECT ANSWER - B2C
A _________ in the BCG Matrix would have a high market share in a low-growth market. -
CORRECT ANSWER - cash cow
In porter's five forces model, which of the following conditions is most favorable from the
standpoint of industry attractiveness? - CORRECT ANSWER - low bargaining power of
suppliers
If Google's top management were to annouce that the firm was going to buy Federal Express,
this would indicate a strategy of _________. - CORRECT ANSWER - diversification
The alliances that link together firms in supply chain management relationships are examples of
how businesses try to use _______ strategies. - CORRECT ANSWER - cooperation
, Amoung the global strategies that international businesses might persue the ___________
strategy is the one that most tries to tailor products to fit the local needs and cultures in different
countries. - CORRECT ANSWER - multidomestic
When Coke and Pepsi spend millions on ads trying to convince customers that their products are
unique, they are pursing a ________ strategy. - CORRECT ANSWER - differentiation
When using Porter's model of competitive strategies, a firm that wants to compete with its rivals
in a broad market by selling a very low-priced product would need to successfully implement a
_________ strategy. - CORRECT ANSWER - cost leadership
Restructuring by downsizing operations and reducing staff is a form of _________ strategy? -
CORRECT ANSWER - retrenchment
According to Porter's five forces model, ________ is a good indicator that an industry is
unattractive from a competitive standpoint. - CORRECT ANSWER - few customers
Which is an example of a cooperative strategy? - CORRECT ANSWER - strategic alliance
The main purpose of organizing as a management function is to ___________. - CORRECT
ANSWER - arrange people and resources to accomplish work
An organization chart is most useful for ________. - CORRECT ANSWER - showing
designated supervisory relationships
Rumors and resistance to change are potential disadvantages often associated with __________.
- CORRECT ANSWER - informal structures
Questions and CORRECT Answers
Which is the best first question to ask when starting the strategic management process? -
CORRECT ANSWER - What is our mission?
The ability of a firm to consistently outperform its rivals is called _______. - CORRECT
ANSWER - competitive advantage
General Electric is a complex conglomerate that owns both NBC Universal and GE Healthcare,
firms operating in very different industries. The strategies pursued for each of these units wihtin
GE would best be called _________ level strategies. - CORRECT ANSWER - business
An organization that is downsizing by cutting staff to reduce costs can be described as pursing a
________ strategy. - CORRECT ANSWER - retrenchment
When you buy music downloads online, the firm selling them to you is engaging in which type
of e-business strategy? - CORRECT ANSWER - B2C
A _________ in the BCG Matrix would have a high market share in a low-growth market. -
CORRECT ANSWER - cash cow
In porter's five forces model, which of the following conditions is most favorable from the
standpoint of industry attractiveness? - CORRECT ANSWER - low bargaining power of
suppliers
If Google's top management were to annouce that the firm was going to buy Federal Express,
this would indicate a strategy of _________. - CORRECT ANSWER - diversification
The alliances that link together firms in supply chain management relationships are examples of
how businesses try to use _______ strategies. - CORRECT ANSWER - cooperation
, Amoung the global strategies that international businesses might persue the ___________
strategy is the one that most tries to tailor products to fit the local needs and cultures in different
countries. - CORRECT ANSWER - multidomestic
When Coke and Pepsi spend millions on ads trying to convince customers that their products are
unique, they are pursing a ________ strategy. - CORRECT ANSWER - differentiation
When using Porter's model of competitive strategies, a firm that wants to compete with its rivals
in a broad market by selling a very low-priced product would need to successfully implement a
_________ strategy. - CORRECT ANSWER - cost leadership
Restructuring by downsizing operations and reducing staff is a form of _________ strategy? -
CORRECT ANSWER - retrenchment
According to Porter's five forces model, ________ is a good indicator that an industry is
unattractive from a competitive standpoint. - CORRECT ANSWER - few customers
Which is an example of a cooperative strategy? - CORRECT ANSWER - strategic alliance
The main purpose of organizing as a management function is to ___________. - CORRECT
ANSWER - arrange people and resources to accomplish work
An organization chart is most useful for ________. - CORRECT ANSWER - showing
designated supervisory relationships
Rumors and resistance to change are potential disadvantages often associated with __________.
- CORRECT ANSWER - informal structures
