a. broad differentiation strategyb. low-cost provider strategy
c. focused strategy based on lower costd. focused strategy based on differentiation
ANSWER: b
42. McNiven Construction Ltd. is influenced by a variety of elements from the internal environment. On the other hand, which of the following appears to be derived from the external environment of the company?
a. safety regulationsb. employment policies
c. safety practicesd. competencies of employees
ANSWER: a
43. What is it called when an organization develops objectives, plans, and courses of action concerning how it will operate to gain competitive advantage?
a. goal settingb. competitive scope
c. strategyd. organizational planning
ANSWER: c
44. Due of the unpredictability of future events, many strategic planners formulate their plans so they can respond to changes in the environment. How would you describe this strategic planning process?
a. a cyclical processb. a reactive process
c. a dynamic processd. a perceived process
ANSWER: c
45. What type of strategies focus on the overall strategy of the organization and all of its businesses?
a. corporate strategiesb. intended strategies
c. management strategiesd. business strategies
ANSWER: a
46. What type of strategy focuses on the action plans and competitive scopes for a single line of business?
a. leadership strategyb. business strategy
c. emergent strategyd. corporate strategy
ANSWER: b
47. As McDonald’s sales and profits declined, the company decided to focus on a core item: coffee. What restructuring strategy was being adopted?
a. divestitureb. liquidation
c. stabilityd. turnaround
ANSWER: d
48. What type of strategies are concerned with the question, What business should we be in?
a. intended strategiesb. management strategies
c. corporate strategiesd. business strategies
ANSWER: c
49. What type of strategies are concerned with the question, How should we compete?
a. competitive strategiesb. emergent strategies
c. corporate strategiesd. business strategies
ANSWER: d
50. WestJet tries to demonstrate to the public that its customer service is better than other Canadian airlines because WestJet has have low prices and more caring and innovative services. How would you define this strategy?
a. corporate strategyb. business strategy
c. divestiture strategyd. management strategy
ANSWER: b
51. Shoreline Docks, a small West Coast dock construction company, is influenced by a variety of elements from their its environment. Which of the following appears to be derived from the company’s internal environment?
a. legislationb. economy
c. safety practicesd. technology
ANSWER: c
52. What type of corporate objective usually defines the targets for the social conduct of business?
a. hardb. focused
c. sociald. soft
ANSWER: c
Tentree Apparel
Tentree Apparel is a Canadian company devoted to producing all its clothing responsibly and locally. The company wants to “become the most environmentally progressive company on the planet.” It uses 100 percent eco-friendly resources such as sustainably grown organic cotton and unprocessed hemp to create premium-priced contemporary sports clothing. Tentree Apparel provides a unique and superior value to its buyers in terms of product quality and features as well as an additional environmental bonus. For every piece of clothing a customer purchases, Tentree Apparel plants ten trees. The company aims “to plant 1 billion trees by 2013.” The company’s owners adopted a social enterprise model of business with the aim to inspire and build a new group of consumers to tackle environmental challenges through reforestation efforts.
53. What are the broad guidelines to action, which establish the parameters and rules in an organization?
a. plansb. policies
c. objectivesd. procedures
ANSWER: b