1. When does horizontal integration occur?
a) When a firm acquires or merges with a major competitor
b) When a firm acquires or merges with a an unrelated business
c) When a firm acquires or merges with a distributor
d) When a firm acquires or merges with a supplier firm
2. Divestment is what kind of strategy?
a) An asset-reduction strategy
b) A weakness-reduction strategy
c) A product-reduction strategy
d) A cost-reduction strategy
3. Sustained survival implies
a) that a turnaround is achieved but there is little further growth
b) that a turnaround is achieved and there is potential for further growth
c) that a turnaround is achieved and there is a clear opportunity to employ a new growth strategy
d) that a turnaround is achieved and it is appropriate to diversify soon
4. In which of the following scenarios is a joint venture likely to be more attractive than acquisition?
a) Horizontal integration
b) Vertical integration
c) New market entry
d) Larger resource pool
5. McDonalds is deciding whether to expand into manufacturing kitchen equipment in China. At what level is this decision likely to be made?
a) Business
b) Corporate
c) Functional
d) International
6. Which type of trend can be exemplified by the increasing numbers of two income households in a society?
a) Solid
b) Economic
c) Cultural
d) Technological
7. The primary benefit brought from restructuring is:
a) employee involvement
b) cost reduction
c) increased morale
d) increased number and organizational hierarchy
8. Technological advancements can create which of the following advantage besides many other existing powerful advantages for the businesses?
a) Economic
b) Social
c) Environmental
d) Competitive
9. Which strategies aim at improving internal weakness by taking advantage of external opportunities?
a) SO
b) WO
c) SW
d) ST
10. the sketch of the BCG matrix, what is the label of the horizontal axis?
a) Industry growth rate
b) Market share
c) Market growth rate
d) Business strength