DMC COLLEGE FOUNDATION

Sta. Filomena, Dipolog City

2nd Semester 2016 - 2017

SCHOOL OF BUSINESS AND ACCOUNTANCY

HIGHER EDUCATION DEPARTMENT Business Policy and Strategy

FINAL EXAMINATION (Special Class) Earl Russell S. Paulican

NAME: ___________________________________________ SCORE: _______________________

COURSE/YEAR: ______________________________ DATE : _____________________

Commit to the Lord whatever you do, and your plans will succeed
Proverbs 16:3

Test I. IDENTIFICATION. FILL IN THE BLANKS WITH THE CORRECT ANSWERS. (2 Points Each)
1. These strategies are adopted by an organization when it attempts at an incremental
improvement of its functional performance by marginally changing one or more of its
business in terms of their respective customer groups, customer functions, and alternative
technologies-either singly or collectively.
2. These strategies are followed when an organization aims at a contraction of its activities
through substantial reduction or the elimination of the sope of one or more of its
businesses in terms of their respective customer groups, customer function or alternative
technologies-either singly or jointly in order to improve its overall performance.
3. These strategies are followed when an organization adopts a mixture of stability,
expansion, and retrenchment, either at the same time in its different businesses or at
different times in the same business with the aim of improving its performance.
4. Under what strategy in which the firm tries to achieve growth through existing products in
existing markets.
5. This strategy tries to achieve growth through existing products in new markets.
6. A strategy in which the growth objective is ought to be achieved by adding new products
or services to the existing product or service line.
7. A type of growth strategy wherein new products or services are added which are
complementary to the existing product or service line.
8. Also known as upstream development and is involve in addition of activities to ensure
the supply of a firms present inputs.
9. A type of diversification strategy which involves the entry of a firm into the business of
finishing, distributing, or selling of some of its present outputs.
10. The development of long-range plans for the effective management of environmental
opportunities and threats, in light of corporate strengths and weaknesses.
11. Consists of variables (Strengths and Weaknesses) that are within the organization itself and
are not usually within the short-run control of top management.
12. Consists of variables that are outside the organization and not typically within the
short-run control of top management.
13. A retrenchment strategy which is considered the most extreme and unattractive which
involves closing down a firm and selling its assets.
14. One which provides guidance for major actions for the purpose of meeting long-term
objectives. These provide a basic direction for strategic action in line with major corporate
objectives of a company.
15. The process by which corporate planners monitor the economic, governmental, supplier,
technological and market setting to determine the oppoortinities for and threats to their
enterprise.
16. This approach consists of identifying, the series of activities, which are undertaken by the
firm and are strategically relevant for meeting customer demand and in respect of which
the firm may potentially have an edge over its competitors.
17. An example of of a takeover whereby the intending companies will voluntarily go into
liquidation form a new company that will take over agreed assets and liabilities of bot at an
agreed purchase consideration.
18. A quasi form of merger which involves the acquisition of either the total or the majority of
firms share capital or stock by a company.
19. It is a case where one company acquires another companys total or controlling interest.
20. Also called cutback, a strategy which involves in the sale or liquidation of portion of

Prepared by: Earl Russell S. Paulican , REB GOD Bless

 business, or a major division. It is usually a part of rehabilitation or restructuring plan and is
adopted when turnaround has been attempted but has proved to be unsuccessful.

Test II. Enumeration. Enumerate and briefly define/discuss each (2 points each)

i. Steps in VCA (VALUE-CHAIN APPROACH)

1.

2.

3.

4.

ii. Reasons for Mergers

1.

2.

3.

4.

5.

iii. Major Strategy Options (4)

1.

2.

3.

4.

III. Essay ( 10 points) (7=substance, 3=structure)

Why is it necessary for entrepreneurs to analyze the business environment.

-Success is a Choice, not a Destiny-

_keep on dreaming_
Prepared by: Earl Russell S. Paulican , REB GOD Bless