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Mixed Quiz
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1

Strategic analysis and choice is less complicated for corporate-level managers because they must create a strategy to guide a company that contains numerous businesses.
A)True
B)False
2

Value can be built when a company can leverage its core rigidities to other products and markets.
A)True
B)False
3

"Conglomerate" businesses are those that rely on the same or similar capabilities to be successful and attain competitive advantage in their respective product markets.
A)True
B)False
4

According to BCG growth-share matrix, question marks are yesterday's stars and the current foundation of corporate portfolios.
A)True
B)False
5

In comparison to the BCG growth-share matrix, the industry attractiveness-business strength matrix has a much narrower focus.
A)True
B)False
6

Opportunities to build value via diversification, integration, or joint venture strategies are usually found in
A)market-related activities
B)operating-related activities
C)management activities
D)all of the above
7

"Unrelated" diversification is also known as
A)concentric diversification
B)conglomerate diversification
C)strategic diversification
D)organizational diversification
8

The two factors used by the BCG growth share matrix are market growth rate and
A)industry attractiveness
B)business strength
C)relative competitive position
D)stage of market life cycle
9

According to the BCG growth-share matrix, _________ provide the cash to pay corporate overhead and dividends and provide debt capacity.
A)stars
B)cash cows
C)question marks
D)dogs
10

According to the BCG growth-share matrix, selective divestment is the option for
A)stars
B)cash cows
C)question marks
D)dogs
11

Which of the following is NOT a strategic approach suggested by the industry attractiveness-business strength matrix?
A)Invest to grow
B)Invest selectively and manage for earnings
C)Harvest or divest for resources
D)Push
12

"Sources of advantage" and "size of advantage" are the two factors used in the __________ matrix.
A)BCG growth-share matrix
B)Industry attractiveness-business strength matrix
C)Life cycle-competitive strength matrix
D)BCG's strategic environments matrix
13

According to the BCG strategic environments matrix, _______ businesses have few sources of advantage.
A)stalemate
B)fragmented
C)specialization
D)question mark
14

According to the BCG strategic environments matrix, ________ businesses have many sources of advantage.
A)stalemate
B)volume
C)fragmented
D)question mark
15

A key problem with the portfolio matrix was that it did not address how value was being created
A)within business units
B)across business units
C)outside business units
D)all of the above
16

The portfolio approach portrayed the notion that firms need to be self-sufficient in
A)people
B)ideas
C)capital
D)products
17

The relationship between market share and profitability is called
A)the life cycle effect
B)the core competence effect
C)the experience curve effect
D)the strategic effect
18

Splitting businesses is a strategy recommended by which approach?
A)Parenting
B)Patching
C)Core competency
D)Diversification
19

Which one of the following provides a parenting opportunity?
A)Splitting
B)Exiting
C)Business definition
D)Transferring
20

The focus of the patching approach is on key processes and
A)management
B)simple rules
C)cost leadership
D)differentiation





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