1) _____ growth does not rely on outside intervention.
A.
Organic
B.
Acquisitive
C.
Horizontal
D.
Vertical
E.
Diversified
2) The average product life cycle in the computer software industry is _____.
A.
1dash–2
years
B.
3dash–5
years
C.
2dash–3
years
D.
6dash–8
months
E.
14dash–16
months
3) Which of the following is NOT an advantage of internal growth strategies?
A. Provides maximum control.
B.
Encourages internal entrepreneurship.
C.
Adds to industry capacity.
D.
Preserves organizational cultur
E.
Incremental, even-paced growth
4)
Which of the following is NOT a disadvantage of internal growth strategies?
A.
Need to develop new resources
B.
Adds to industry capacity.
C.
Investment in a failed internal effort can be difficult to recoup.
D.
Slow form of growth
E.
Incremental,
evendash–paced
growth
5) Which of the following is NOT a top reason why new products fail?
A.
The costs of developing the product line were too high.
B. The product was no different than the competition’s.
C.
The product was poorly designed.
D.
The potential market was underestimated.
E.
Customers saw the product as too expensive.
6) Which of the following is NOT a key to effective new product and
service development?
A.
Focus on a broad target market.
B.
Develop products that add value.
C.
Get quality and pricing right.
D.
Find a need and fill it.
E.
Conduct ongoing feasibility analysis.
7) The Starbucks Card makes it more convenient for customers to purchase
the company’s products. Starbucks is using a(n) ___ strategy.
A.
market penetration
B.
brand extension
C.
inorganic growth
D. new product development
E.
product line extension
8) To free up factory space to increase production of its basic product, a firm that
used to package its products internally decides to use the services of an outside
packer. The company has ____ packaging.
A.
diversified away from
B.
eliminated
C.
licensed
D.
outsourced
E.
franchised
9) A(n) ____ strategy involves making additional versions of a product so that it
will appeal to different clientele or making related products to sell to the same
clientele.
A.
geographic expansion
B.
market penetration
C.
outsourcing
D.
product line extension
E.
new product development 10) _____ expansion is the most common type of expansion in retail settings.
A.
Geographic
B.
Market penetration
C.
Product line
D.
New product development
E.
Inorganic
11) Which of the following is a key to successful geographic expansion?
A.
Perform successfully in the initial location.
B.
Grow inorganically.
C.
Establish the legitimacy of the business concept in the home location.
D.
Isolate the expansion location.
E.
Outsource all non-essential work
12) What is the approximate value of the United States’s share of the total global
purchasing power?
A.
10 percent
B. 30 percent
C.
70 percent
D.
40 percent
E.
60 percent
13) Another name for international new ventures is ______.
A.
born globals
B.
multinationals
C.
globals
D.
pioneers
E.
evangelists
14) Which of the following is NOT an issue in evaluating a firm’s overall suitability
for growth through international markets?
A.
Depth of international experience
B.
Foreign currency risk
C.
Depth of management commitment
D.
Compatibility with the firm’s shareholders’ interests E.
Distribution issues
15) _____ is the process of producing a product at home and shipping it to a
foreign market.
A.
Importing
B.
Franchising
C.
Exporting
D.
Licensing
E.
Turnkey project
16) The primary disadvantage of ____ is quality control.
A.
licensing
B.
exporting
C.
franchising
D.
joint venture
E.
wholly owned subsidiary
17) A ____ agreement is an arrangement whereby a firm with the proprietary
rights to a product grants permission to another firm to manufacture that product
for specified royalties or other payments. A.
turnkey project
B.
joint venture
C.
licensing
D.
franchising
E.
wholly owned subsidiary
18) Which of the following is usually a one-time activity?
A.
Turnkey project
B.
Joint venture
C.
Wholly owned subsidiary
D.
Licensing
E.
Franchising
19) Which foreign market entry strategy gives a firm total control over its
foreign operations?
A.
Wholly owned subsidiary
B.
Turnkey project C.
Joint venture
D.
Licensing
E.
Franchising
20) Which of the following is NOT a rule of thumb for selling products in
foreign markets?
A.
Always use emails in replying to foreign inquiries.
B.
Keep promises.
C.
All correspondence should be personally signed.
D.
Answer requests promptly and clearly.
E.
Be polite, courteous, friendly, and respectful.
21) _____, acquisitions, strategic alliances, joint ventures, licensing, and
franchising are examples of external growth strategies.
A.
Product development
B.
Mergers
C.
Organic growth
D.
Market penetration E.
Product line extension
22) A(n) ____ is the outright purchase of one firm by another.
A.
merger
B.
turnkey project
C.
acquisition
D.
joint venture
E.
strategic alliance
23) Which of the following is NOT a disadvantage of emphasizing external
growth strategies?
A.
Clash of corporate cultures
B.
Incompatibility of top management
C.
Reducing competition
D.
Increased business complexity
E.
Antitrust implications
24) Which of the following is NOT an advantage of emphasizing external
growth strategies?
A. Increased business complexity
B.
Economies of scale
C.
Obtaining access to technical expertise
D.
Diversification of business risk
E.
Reducing competition
25) A(n) _____ is a partnership between two or more firms to achieve a specific
goal.
A.
acquisition
B.
franchise
C.
turnkey project
D.
strategic alliance
E.
license
