Chapter 13: Failure, consolidation and recovery strategies

If a business is blinkered, technology shy, and 'impoverished', what does this signal?
1. A weak strategic plan
2. A planning gap
3. A lack of innovation and vision
4. Weak strategic leadership
Altman (1968) devised which score, which predicts potential corporation failure?
1. The H-score
2. The F-score
3. The Z-score
4. The W-score
Divestment is what kind of strategy?
1. An asset-reduction strategy
2. A weakness-reduction strategy
3. A product-reduction strategy
4. A cost-reduction strategy
When a company is experiencing an economic recession, this is a good time to do what?
1. Reduce costs and assets
2. Refocus
3. Simplify
4. Invest
Turnaround strategies involve changes at what level of strategy?
1. Corporate
2. Functional
3. Competitive
4. All levels
Acquisitions often fail to deliver the successes that were predicted prior to acquisition. What is the main reason for this failure?
1. Premium price
2. Poor strategic leadership
3. Goodwill
4. Synergy
To turn the problems of the Burton Group around what strategy was applied?
1. Turnaround
2. Diversification and divestment
3. Liquidation
4. Acquisition
Sustained survival implies:
1. That a turnaround is achieved, but there is little further growth
2. That a turnaround is achieved, and there is potential for further growth
3. That a turnaround is achieved, and there is a clear opportunity to employ a new growth strategy
4. That a turnaround is achieved, and it is appropriate to diversify soon
Which of these is not an issue in selecting a business as a divestment candidate?
1. Current market position
2. Product life-cycle
3. Alternate uses for resources
4. The size of the business
Which of these is not noted, by Harrigan (1980), as an indicator of the appropriateness of a strategy during decline?
1. A focus on cost leadership
2. Ability to target market segments effectively
3. The nature of decline
4. Exit costs