Strategic Management and Page
Chapter 6 – Formulating Strategy
Multiple Choice Questions
1. The process by which a firm’s managers evaluate the future prospects of the firm and decide on appropriate strategies to achieve long-term objectives is called ____________. a. strategic planning (moderate, page 220)
2. The basic means by which a company competes—its choice of business in which to operate and the ways in which it differentiates itself from its competitors—is called its ____________. a. strategy (easy, page 220)
3. Europe is currently attracting much new investment capital because of ______________. a. the opening of new markets in Eastern Europe (difficult, page 221)
4. Which of the following is NOT a reactive reason that prompts a company to go overseas? a. to seek economies of scale (difficult, page 221)
5. ______________ and ______________ are two reactive reasons for a firm’s going international.
International competition; trade barriers (difficult, page 221)
6. The U.S. pharmaceutical maker SmithKline and Britain’s Beecham merged for what primary reason? a. to avoid regulations and restrictions on the home front (difficult, page 221)
7. ______________ and ______________ are two proactive reasons for a firm’s going international. a. Economies of scale; cost savings (difficult, page 222)
8. According to an executive of Philips from Holland, only with a global market can a company afford the large development costs necessary to keep up with ______________. a. advancing technology (difficult, page 222)
9. What is perhaps the most likely reason why McDonald’s has aggressively expanded internationally? a. to overcome limited expansion opportunities at home (moderate, page 222)
10. The first phase of the strategic management process starts with the company ______________. a. determining what its mission and overall objectives are (moderate, page 224)
11. All of the following
Multiple Choice Questions
1. The process by which a firm’s managers evaluate the future prospects of the firm and decide on appropriate strategies to achieve long-term objectives is called ____________. a. strategic planning (moderate, page 220)
2. The basic means by which a company competes—its choice of business in which to operate and the ways in which it differentiates itself from its competitors—is called its ____________. a. strategy (easy, page 220)
3. Europe is currently attracting much new investment capital because of ______________. a. the opening of new markets in Eastern Europe (difficult, page 221)
4. Which of the following is NOT a reactive reason that prompts a company to go overseas? a. to seek economies of scale (difficult, page 221)
5. ______________ and ______________ are two reactive reasons for a firm’s going international.
International competition; trade barriers (difficult, page 221)
6. The U.S. pharmaceutical maker SmithKline and Britain’s Beecham merged for what primary reason? a. to avoid regulations and restrictions on the home front (difficult, page 221)
7. ______________ and ______________ are two proactive reasons for a firm’s going international. a. Economies of scale; cost savings (difficult, page 222)
8. According to an executive of Philips from Holland, only with a global market can a company afford the large development costs necessary to keep up with ______________. a. advancing technology (difficult, page 222)
9. What is perhaps the most likely reason why McDonald’s has aggressively expanded internationally? a. to overcome limited expansion opportunities at home (moderate, page 222)
10. The first phase of the strategic management process starts with the company ______________. a. determining what its mission and overall objectives are (moderate, page 224)
11. All of the following