Test your basic knowledge |

Business Strategy

Subject : business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. These strategy requires that organizations focus on a particular buyer group - segment of the product line or geographical market within an industry. It is build around serving particular target to the exclusion of others.






2. 1 The rule is proposed 2 Public comment is invited 3 The final rule is issued






3. A value creating strategy that primary increases perceived value by increasing attractiveness of product






4. 1 Cost Leadership 2 Differentiation 3 Focus






5. The skills and abilities by which resources are deployed through an organization's activities and processes such as to achieve competitive advantage in ways that others cannot imitate or obtain.






6. 1 Work Specialization 2 Departmentalization 3 Chain of Command 4 Centralization and Decentralization 5 Formalization






7. 1 Interest Rates 2 Gross Domestic Product (GDP) 3 Consumer Price Index (CPI) 4 Disposable Income 5 Inflation






8. The central focus of the department is the provision of goods and services to the customer. Basically this department must ensure that the product/service is produced and delivered to the customer.






9. The organization relies on high energy and creativity. Attempts to develop products and services - decision may be made to use experiences staff so training is not an integral part of this phase. may meet or exceed the standard pay range to recruit






10. Acquisition of a company in a different industry - but which employs a similar value chain.






11. Ensure that organization's strategy and operations are consistent with each other






12. Refers to an intensive investigation of all factors surrounding a business decision to ensure that all risks are understood.






13. It is a systematic process of gathering and analyzing all relevant data about external opportunities (emerging marketplace - additional capabilities provided through new technology.) and threats (emerging competition - shifts in marketplaces. )






14. When a corporation enters a new business in a different industry from that in which it currently operates and does not expect to achieve any value chain synergies through the combination.






15. Identifies stakeholder expectations and power and helps in understanding political priorities.






16. Is concerned with the ways in which an organization exeeds its minimum obligations to stakeholders specified through regulation.






17. A process where a large group of shareholders vote in new members to the board of directors - with the result that the new board can make changes in the company's management.






18. A strategy by which an organization takes increased share of its existing markets with its existing product range.






19. Risk associated with a particular business.






20. A plant or service department is moved to another country. Although separated geographically - the off shored entity remains part of the organization - and workers are still employees of the organization.






21. A participative approach to planning in which there is involvement at all levels; plans are developed at the lower levels of an organisation and funnelled up through consecutive levels until they reach top management - advantage:People are responsibl






22. Views the world as its unit of analysis - Plants are built to provide local marketing advantages - recognizes the importance of being flexible at the country-level operations - more responsive to local needs






23. Risk associated with macro-economic forces.






24. Comparing a the firms operations with a direct competitor






25. It is a system of moral principles and values that establish appropriate conduct.






26. Detailed and plausible views of how the business environment of an organization might develop in the future based on key drivers for change about which there is a high level of uncertainty






27. High-yield debt that is rated below investment grade at the time of purchase. These bonds have a higher risk of default - but typically pay higher yields than better quality bonds in order to make them attractive to investors. Typically issued by bu






28. 1 Advances in technology 2 Technological skills 3 The digital divide 4 Process changes






29. Divestiture in which a corporation creates a new company out of one of its businesses. The new company has its own shares of stock and shareholders - and its own board of directors. Typically - shareholders of the corporation will receive newly iss






30. A merger or acquisition where there is some similarity of industry and/or value chain between the corporation and the company it seeks to acquire.






31. 1 Cost Benefit Analysis 2 Return On Investment 3 Breakeven Analysis 4 Financial Statement Analysis






32. Organization that follow this approach are not competing in an established market. They see themselves as a creating entirely new value. This strategy values innovation - creativity and rule breaking.






33. 1. talking to competitors - customers - and distributors 2. testing competitors products 3. view competitors exhibits at trade shows






34. Where an individual (such as a corporate officer) acts on behalf of someone else (such as a shareholder)






35. 1 Capacity 2 Standards 3 Scheduling 4 Inventory 5 Control






36. Private (nonpublic) corporations or partnerships that use their financial resources to engineer buyouts and acquisitions of other companies.






37. When a corporation can take synergistic advantage of relationships with suppliers and/or customers in making an acquisition.






38. The categories of activities within and around an organization which together create a product or service.






39. It is a process not just written project plan that helps an organization focus on how to succeed in the future - where the company is now? - where does the company want to go? - How will the company get there?






40. 1 Financial 2 Human 3 Physical 4 Technological






41. 1. a graph demonstrating the different positions a firm can adopt in creating value 2. compares value and differentiation (Y) versus high cost to low cost (x)






42. 1 Strategies are reviewed 2 Performance towards objective is measured 3 Corrective action is taken






43. The decisions made and the direction provided for managing multiple business units under a single corporate umbrella.






44. A strategy by which an organization peruses new product offerings and new markets.






45. Organizations within an industry with similar strategic characteristics - following similar strategies or competing on similar bases






46. Cut costs - add value - or increase prices






47. The benefits that develop through the extension and application of corporate resources to a newly acquired company.






48. A method of planning in which corporate hq develops and provides guidelines - disadvantages: the method of planning restricts initiative at lower level - shows insensitivity to local conditions - advantages: headquarters formulates a plan; this ensur






49. To achieve cost advantage - an organization has to be the low cost producer in its industry.The finished products of low cost producers are sold at prices that beat the competition. These industries depend on volume to provide profit and is less bra






50. Acquisition of another company upstream (supplier) or downstream (buyer) in the value chain of the same industry in which the corporation operates.