FQZ: LESSON 1

• It is gaining ownership or increased control over distributors or retailers. - Forward Integration
• Include things such as a larger market share, quicker on-time delivery than rivals, shorter design-to-market times than rivals, lower costs than rivals, higher product quality than rivals, wider geographic coverage than rivals, achieving technological leadership, consistently getting new or improved products to market ahead of rivals, and so on. - Strategic Objectives
• Represent the results expected from pursuing certain strategies. - Long-term Objectives
• It is seeking ownership or increased control of suppliers of the firm. - Backward Integration
• The idea is to keep on doing about the same things in the same ways because things are going well. - Managing by Extrapolation
• Is actually a form of reacting rather than acting and of letting events dictate the what and when of management decisions. - Managing by Crisis
• It is seeking ownership or increased control over competitors. - Horizontal Integration
• Represent the actions to be taken to accomplish long-term objectives. - Strategies
• Include those associated with growth in revenues, growth in earnings, higher dividends, larger profit margins, greater return on investment, higher earnings per share, a rising stock price, improved cash flow, and so on. - Financial Objectives
• It refers to seeking increased sales by improving present products or services or developing new ones. - Product Development
• Related Diversification refers to adding new, unrelated products or services. - False
• The overall aim of the Balanced Scorecard is to unbalance shareholder objectives with customer and operational objectives. - False
• In the Functional Level 75% based on long-term objectives and 25% based on annual objectives - False
• The time frame for objectives and strategies should be consistent, usually from two to five years. - True
• Managing by Crisis is based on the fact that the future is laden with great uncertainty and that if we try and do not succeed, then we hope our second (or third) attempt will succeed. - False
• Managing by Hope is based on the belief that the true measure of a really good strategist is the ability to solve problems. - False
• In the Division Level 50% based on longterm objectives and 50% based on annual objectives. - True
• A primary reason for pursuing forward, backward and horizontal integration strategies is to gain low-cost or bestvalue cost leadership benefits. - True
• Without long-term objectives, an organization would drift aimlessly toward some unknown end. - True
• Strategies should be quantitative, measurable, realistic, understandable, challenging, hierarchical, obtainable, and congruent among organizational units. - False
• Related Diversification refers to adding new but related products or services. - True
• Market Development refers to seeking increased market share for present products or services in present markets through greater marketing efforts. - False
• Objectives serve as standards by which individuals, groups, departments, divisions, and entire organizations can be evaluated. - True
• Retrenchment refers to regrouping through cost and asset reduction to reverse declining sales and profit. - True
• Divestiture refers to selling all assets of a company, in parts, for their tangible worth. - False
• Each strategy should also be associated with a timeline. - False
• Objectives provide a basis for consistent decision-making by managers whose values and attitudes differ. - True
• Product Development refers to introducing present products or services into new geographic area. - False
• . Managing by Subjectives is built on the idea that there is no general plan for which way to go and what to do; just do the best you can to accomplish what you think should be done. - True
• Businesses are said to be unrelated when their value chains possess competitively valuable cross-business strategic fits. - False
• Balanced Scorecard is a strategy evaluation and control technique. - True
• Liquidation refers to selling a division or part of an organization. - False
• Businesses are said to be unrelated when their value chains are so dissimilar that no competitively valuable crossbusiness relationships exist. - True
• Two types of objectives are especially common in organizations: financial and long-term objectives. - False
• In the Corporate Level 75% based on long term objectives and 25% based on annual objectives. - True