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. Comparing operations in totally unrelated industries






2. A process where a company is bought primarily using debt. Typically engineered by management of the company - or by private equity firms.






3. 1. choose a viable position on efficiency frontier 2. configure its internal ops to support the chosen position 3.ensure firm has the right orginizational structure in place to execute its strategy






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






5. When a corporation can take synergistic advantage of administrative and support activities of the value chain in making an acquisition.






6. 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






7. 1 Introduction 2 Growth 3 Maturity 4 Decline






8. 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






9. Economic - legal resp. - ethical - and discretionary






10. Comparing similar functional firms in your industry






11. It is simple and effective process for collecting information on the organization's current state. It answers four basic question.






12. 1 Charts and graphs 2 Measures of central tendency 3 Measures of variation 4 Measures of association






13. Comparing 1 operation in the firm with another






14. Engaging in those activities that ensure effective operation - including leadership and motivation pf employee action towards goals. eg : Scheduling and conducting interview.






15. Sell more in existing markets - or enter new markets






16. It is a vivid - guiding image of the organization's desired future. It is the ultimate picture of what leadership envisions for the organization.






17. 1. multinational 2. global 3. transnational






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






19. It uses data already gathered by others and reported in various sources.






20. A company in which 70-95% of revenue comes from a single business






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






22. Cost savings accomplished by operating combined companies more efficiently.






23. 1 Strategies are reviewed 2 Performance towards objective is measured 3 Corrective action is taken






24. 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.






25. 1 Population 2 Sample 3 Normal Distribution






26. It specifies what activities the organization intends to pursue and what course of management has charted for the future. It provides general outline of how the organization will achieve the vision. It includes who the company is - what the company






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






28. 1 Interest Rates 2 Gross Domestic Product (GDP) 3 Consumer Price Index (CPI) 4 Disposable Income 5 Inflation






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






30. 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






31. 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.






32. 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.






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






34. New ideas should not be dismissed simply because they originated at a grassroots level. Business innovations developed under these circumstances will create new objectives or modify existing ones and create an overlay of new direction compared to wha






35. It refers to relocation of processes or functions from a home country to another country and it appeals to organization for cost saving.






36. 1 Strategy Formulation 2 Strategy Development 3 Strategy Implementation 4 Strategy Evaluation






37. They represent milestones that must be achieved in order to reach the long term objectives. They are usually within 6 months to a year.






38. 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






39. These objectives are generally achieved within 3 to 5 years. Establishing these objectives provides direction - synergy and aids in establishing guidelines for evaluation.






40. They are often based on industry best practice.






41. Serve the purpose similar to short term objectives but are completed in 1 to 3 years.






42. 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.






43. Internal Benchmarks establish levels of current performance of a particular tasks - such as cost per hire.






44. 1 Attitudes towards career 2 Immigration 3 Occupational and industry skills 4 Recruitment 5 Unions 6 Unemployment 7 Turnover 8 Relocation






45. primary activities and support activities






46. When a corporation reduces its level of diversification and strategically refocuses on core businesses where the synergies of scope - economizing - and leverage are more evident and more easily realized.






47. Often accompanied by backlogs and scheduling problems while the organization adjusts to increase demands. Policies - procedures and rules should begin to be formalized as organization needs increased structure during this phase to operate effectively






48. Cut costs - add value - or increase prices






49. Independent & entrepreneurial - adopts a more flexible approach to their international operations - More sensitive & responsive to local environment






50. 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