problem 1: Retrenchment means ________ a company’s operations.

a) Realigning
b) Consolidating
c) A strategic expansion of
d) Reinventing

problem 2: Companies that follow a stability strategy acquire more stable companies in the same and in different kinds of businesses.

a) True
b) False

problem 3: Which of the following is not a typical aspect of a retrenchment in a cellular telephone company?

a) Laying off employees in the Chennai factory.
b) Closing the Omaha customer service center.
c) Reopening poorly performing stores.
d) Switching to cheaper suppliers.

problem 4: The hallmark of the BCG matrix is that “cash cows” be used for what purpose vis-à-vis the whole portfolio:

a) Divested so that the income can be used for the “cash stars”.
b) Reinvested in the up-and-coming companies that show the greatest promise.
c) Acquire more BCG portfolios.
d) Diverted to the “cash dogs” in order to retrench them.

problem 5: If a company grows externally, rather than organically as described in this case, it would ________ that it did not ________ itself.

a) Acquire a company that manufactured a product/produce.
b) Hire executives with an expertise/have in-house.
c) Acquire a company that had a technology/want to create.
d) All of these.

problem 6: A growth strategy can take two forms: A company can grow ________ in the same or a different business. Or it can grow ________, expanding what it does or creating a new business from scratch.

a) Exponentially/reductively.
b) Internally/externally.
c) Larger/smaller.
d) Externally/internally.

problem 7: If Disney were to sell off a Web search engine service to Microsoft and a fast-food restaurant chain that it had acquired in the past, it would be following a(n) ________ strategy.

a) Overgrowth.
b) Stability.
c) Retrenchment/recovery.
d) Grand.

problem 8: In following its retrenchment/recovery strategy, which of the following would be in the spirit of the “Disney way” that the company took?

a) Re-releasing Sleeping Beauty
b) Laying off Winnie the Pooh
c) A television sequel for Toy Story franchise
d) Acquiring Marvel Comics

problem 9: When a CEO asks, “What business or businesses are we in or should we be in?” This is simply a rhetorical problem that addresses her overall organizational strategy.

a) True
b) False

problem 10: Bob Iger’s retrenchment strategy entailed ________ of hundreds of Disney executives.

a) Buying out.
b) Laying off.
c) Consolidating the offices.
d) All of these.