Strategic Management - Study Mode
[#291] What is Kelloggs main challenge for the future:
Correct Answer
(A) To create new products for a market that is both growing and declining according to geography whilst generating enough cash to advertise and launch new products
Explanation
Solution: Kelloggs main challenge for the future is to create new products for a market that is both growing and declining according to geography whilst generating enough cash to advertise and launch new products.
[#292] A _______ strategy addresses organizational weaknesses, helps stabilize operations and revitalizes organizational resources and capabilities
Correct Answer
(D) retrenchment
Explanation
Solution: A retrenchment strategy addresses organizational weaknesses, helps stabilize operations and revitalizes organizational resources and capabilities. This strategy is often used in order to cut expenses with the goal of becoming a more financial stable business. Typically the strategy involves withdrawing from certain markets or the discontinuation of selling certain products or service in order to make a beneficial turnaround.
[#293] Which one of the following are considered to be synergistic benefits for LVMH?
Correct Answer
(D) Name association
Explanation
Solution: Name association are considered to be synergistic benefits for LVMH. LVMH has focussed on the core competencies of Product, Distribution and Communication that the customers are ready to pay the premium price. According to corporate level strategy, LVMH focuses on corporate value and culture to bring creative design and quality to the products.
[#294] An organization is said to have _______ when it has several different businesses that are independent and that formulate their own strategies
Correct Answer
(B) strategic business units
Explanation
Solution: An organization is said to have strategic business units when it has several different businesses that are independent and that formulate their own strategies. Strategic Business Unit (SBU) implies an independently managed division of a large company, having its own vision, mission and objectives, whose planning is done separately from other businesses of the company.
[#295] Which of the following is a force in the Porter's five forces model of industry attractiveness?
Correct Answer
(C) bargaining power of suppliers
Explanation
Solution: Bargaining power of suppliers is a force in the Porter's five forces model of industry attractiveness. The Bargaining Power of Suppliers, one of the forces in Porter's Five Forces Industry Analysis Framework, is the mirror image of the bargaining power of buyers and refers to the pressure that suppliers can put on companies by raising their prices, lowering their quality, or reducing the availability of their products.