1) Which of the following nonfinancial resources is crucial to the success of a new business?

A) Horse traders

B) Transaction fees

C) Cheerleaders

D) Top management teams

E) Bootleggers

Scenario D: A global cosmetics company called Eden Beauty is considering its corporate strategy. Several

members of its board of directors believe they have the "perfect" strategy for the company. Dan believes that the best option is for Eden Beauty to stay on its current track of offering only organic cosmetics to customers who like organic products. Marta wants the company to expand by purchasing the manufacturing plants that produce the Eden Beauty products. Another director, Hector, wants to build the company by adding related products, such as skin care and perfume, to be sold alongside its current products. Finally, the original owner of the company, Keiko, wants to expand the company by doing something completely new, such as building restaurants or perhaps starting an entertainment park.

2) Which of the following corporate strategies is Hector advocating?

A) Concentration

B) Vertical integration

C) Conglomerate diversification

D) Differentiation

E) Concentric diversification

3) Which of the following steps in the formal planning process helps managers know if their plan is working?

A) Implementation

B) Monitor and control

C) Situational analysis

D) Goal and plan evaluation

E) Alternative goals and plans

4) In a SWOT analysis, an example of an organization's strength would be

A) imitable resources.

B) skilled management.

C) geographical expansion.

D) new technology.

E) new entrants.