Devry BUSN412 Week 5 Quiz

BUSN 412 Week 5 Quiz

1. Question :

In consideration that the “traditional” approach to strategic control is sequential, the following is not one of the steps in the sequence.

Strategies are formulated and top management sets goals.

Action plans are submitted by lower level managers.

Performance is measured against the predetermined goal.

Strategies are implemented.

2. Question :

The primary drawback of “traditional” strategic control systems is:

They are only appropriate when the environment is stable and simple.

Goals and objectives cannot be measured with a high level of certainty.

They lead to complacency.

They lack the flexibility needed to adjust to changes in the environment.

3. Question :

The following is true for businesses facing complex and turbulent business environments:

Complacency about predetermined milestones can prevent adaptability

Detailed plans are needed to maintain order

Goals and objectives that are uncertain prevent opportunism

Traditional strategic controls are usually inappropriate

4. Question :

Contemporary approaches to strategic control rely primarily on:

Feedback controls

Single-loop learning

Double-loop learning

Comparative learning

5. Question :

Our text states that informational control systems ask:

Is the organization “doing the right things”?

Is the organization “doing things right”?

Are rules and regulations being followed as information is processed?

Is the organization’s environment a necessary and sufficient condition for success?

6. Question

All of the following are examples of strategic actions a firm might take except:

Acquiring competitors to reduce competition

Expanding into neglected markets

Changing product packaging

Tying-up raw material sources

7. Question :

The best example of a tactical action that a company might use in response to a competitive attack is to:

Acquire the competitor

Target the rival’s markets

Expand into new geographical areas

Offer price discounts and rebates

8. Question :

The following is not a factor that affects how a competitor will respond to a competitive attack:

The degree of market power and reputation of the company that initiated the attack

The resources which are available for a firm to respond

How dependent the competitor is on that industry or particular market segment

The stock market reaction to the initial competitive attack

9. Question

A situation where a company has a high concentration of its business in a particular industry’s market can be referred to as:

Market dependence

Resource similarity

Actor’s reputation

Competitor’s resources

10. Question

The following argument is an example of ________________: A firm is considering a large price cut on its leading product as a way to gain market share. One executive strongly disagrees with the price cut and states, “We are in the same marketplace as our rivals, and we do not have any competitive advantages in our cost structure. If we cut prices, our competitors will likely do the same. The end result is that we will all make less money.”

a hardball strategy whereby competitive actions are not undertaken without a clear advantage

a weakness strategy that leads a company into constant decline

a strategy of forbearance

a strategy of co-opetition

11. Question :

What is the role of opportunity recognition in the new venture development process?