Jabra has been running a commercial real estate business for nearly thirty years. As he approaches retirement, he is content to simply lease the commercial space he currently has, rather than make new deals to develop additional properties. Jabra is using which grand strategy?

A. Stability

B. Retrenchment

C. Inducement

D. Defensive

E. Growth

Answer: A. stability

Rocky Mountain Ski and Snowboard is a small shop that provides ski equipment for Rocky Mountain skiers. It has decided to increase advertising in the Denver Post and the Vail Voice as well as sponsor one of the mountain competitions. It is following which strategy?

A. Inducement

B. Defensive

C. Growth

D. Stability

E. Enhancement

Answer: C. growth

American Auto Parts recently acquired two smaller auto parts companies in the Southwest to gain a national presence. American Auto Parts is pursuing a(n) ______ strategy.

A. escalation

B. growth

C. stability

D. merger

E. defensive

Answer: B. growth

Techno Tools is selling off land, buildings and some of its product inventory. This is a variation of which of these grand strategies?

A. Right-size

B. Growth

C. Stability

D. Defensive

E. Reorganization

Answer: D. defensive

Which of the following is NOT a stage in the strategic-management process?

A. Conduct a trend analysis

B. Maintain strategic control

C. Establish the grand strategy

D. Establish the mission and vision

E. Carry out the strategic plans

Answer: A. conduct a trend analysis

Zach manages a small bike repair store. In order to determine if strategic planning will be likely to help his business, Zach should primarily assess

A. how many competitors he has.

B. foot traffic by his location.

C. his profitability in the prior six months.

D. industry trends.

E. how much he intends to grow in the next five years.

Answer: A. how many competitors he has

According to the text, a small firm is likely to benefit significantly from strategic planning

A. regardless of the nature of its industry or market.

B. when it is in a very competitive industry.

C. when it is in a very new industry.

D. when it is in a very stable industry.

E. when it has a very small market.

Answer: B. when it is in a very competitive industry