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ry factor criterion considered, regardless of its importance, must receive some weighting. d. Assign the most important criterion a score, and then assign weights against that standard. Chapter 8 Strategic Management TRUE/FALSE QUESTIONS final step in the strategic management process is implementing the objectives. 2. A stability strategy is developed when management decides it will remain profitable by maintaining the status quo in a rapidly changing external environment. 3. If Burger King were to buy out Mom and Pop’s Burgers, Burger King would be growing by vertical consolidation. 4. The BCG matrix evaluates SBUs to identify which SBUs offer high potential and which drain anizational resources. 5. According to Porter’s petitive strategies framework, the cost leadership strategy would result in the best quality product at a justifiable cost. MULTIPLECHOICE QUESTIONS 6. In the first step of strategic management, identifying the current strategies and goals provide ___________. a. a foundation for planning b. measurable performance targets for employees c. a basis to determine if the goals need to be changed d. all of the above 7. ___________ strategy determines what businesses an anization should be in. a. Businesslevel b. Organizational c. Operationallevel d. Corporatelevel 8. When an anization attempts to bine with other anizations in different and disassociated industries, the strategy is known as a _____________ strategy. a. unrelated diversification b. horizontal integration c. vertical integration d. stability United Airlines merged with Northwest Airlines, this would be an example of what kind of grand growth strategy? a. horizontal integration b. acquisition c. expansion d. vertical integration 10. 67. Which of the four business groups in the corporate portfolio matrix has low growth and high market share? a. question marks b. dogs c. cash cows d. stars 11. Differentiation as a strategy requires a firm to ___________. a. aggressively search out efficiencies to maintain the lowest cost structure b. be unique in its product offering c. aim at a cost advantage in a niche market d. aim to be similar to its petition in all operations 12. Cost leadership as a strategy requires a firm to ____________. a. aggressively search out efficiencies to maintain the lowest cost structure b. be unique in its product offering c. aim at a cost advantage in a niche market d. aim to be similar to its petition in most operations 13. A focus strategy requires that a firm have ___________. a. sustained capital investment and access to capital b. strong marketing abilities c. strong basic research skills d. a reputation for quality or technological leadership 14. In Michael Porter’s five forces model of petition, _______________ is determined by the height of barriers to entry, such as economies of scale and brand loyalty. a. threat of substitutes b. threats of new entrants c. bargaining power of buyers d. bargaining power of suppliers 15. In Michael Porter’s five forces model of petition, _______________ is determined by the degree of supplier concentration and substitute inputs. a. threat of substitutes b. threat of new entrants c. bargaining power of buyers d. bargaining power of suppliers 16. In Michael Porter’s five forces model of petition, _______________ is determined by the industry growth rate, increasing or falling demand, and product differences. a. threat of substitutes b. threats of new entrants c. ba