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Môn: Quản trị chiến lược (MAG313)
Trường: Đại học ngân hàng Thành phố Hồ Chí Minh
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lOMoARcPSD| 36782889 A
A benefit of the increased disclosure requirements of the Sarbanes-Oxley Act has been more reliable corporate financial statements. Answer: TRUE
A budget is a statement of a corporation's programs in dollar terms. Which is NOT true of the budgetary function?
Only one budget is necessary to capture all programs.
A budget is a statement of a corporation's programs in terms of dollars. Answer: TRUE A
business strategy may include competitive or cooperative strategies. Answer: FALSE A
candidate for a fourth stage in corporate development is matrix structure.
A careless director or directors can be held personally liable for harm done to the corporation if they failed to act with due care.
A car's cruise control, known as a "bell and whistle" is an example of which of the eight dimensions of quality? => B) features
A checklist of questions, by area or issue that enables a systematic analysis to be made of various corporate functions and
activities is referred to as a(n) strategic audit
A code of conduct that regulates supplier conduct => C) is recommended if the company outsources manufacturing to a company in another country.
A code of ethics is important to clarify company expectations of employee conduct in various situations and to => B) make it
clear that the company expects its people to recognize the ethical dimensions in decision and actions.
A company may use which of the following trade promotions to "push" their products through the distribution system? =>brand advertising
A company or an industry whose product works well with a firm's product and without which the product would lose much
of its value is considered to be a(n) => A) complementor.
A company that operates in at least two different product-market areas in which one product is stable and the other one is
variable, reflects which strategic orientation? => C) analyzers
A company which enters into a spirited battle for market share by cutting prices and offering special deals would be an example
of which strategy to avoid? => arms race
A company which has invested so heavily in a particular strategy that it will not consider a change in this strategy even if it
is not successful, would be an example of which strategy to avoid? =>losing hand
A company which has previously found great success pioneering an extremely successful product that is presently trying
to turn another "long-shot" into a likely success would be an example of which strategy to avoid? => hit another home run
A company which keeps up by imitating a leading company's strategy while ignoring its own strengths and weaknesses is an
example of which strategy to avoid? =>follow the leader
A company which pioneers an innovation is called a(n)=> technological leader. =>A company which imitates the products of
competitors is referred to as a(n) A) technological follower.
A company with significant assets and activities in multiple countries is known as a(n) ________. => A) multinational corporation
A corporate strategy that cuts across divisional boundaries to build synergy across business
A corporation run by a team of managers with functional specializations and which successfully operates in one
industry is said to be a Stage II company.
A corporation's ability to exploit its resources is referred to as its A) business expertise. => B) capabilities.
A corporation's specific competitive role which is so well-suited to the firm's internal and external environment that other
corporations are NOT likely to challenge or dislodge it => A) propitious niche
A description of what the company is capable of becoming is referred to as strategic vision
A difference between basic financial planning and forecast-based planning is B) forecast-based planning incorporates
internal and external information.
A direct interlocking directorate occurs when two corporations have directors who also serve on the board of a third firm. Answer: FALSE
A firm's expansion into other geographic locations and/or increasing the range of products and services offered to current
markets is called =>horizontal growth.
A flexible manufacturing system is defined by the text as=> C) the grouping of parts into manufacturing families to produce
a wide variety of mass-produced items.
A forecasting technique using quantitative measures that attempt to discover causal or at least explanatory factors that link
two or more time series together is called => B) statistical modeling.
A formal program of gathering information on a company's competitors is referred to as => B) competitive intelligence. lOMoARcPSD| 36782889
A friend of yours was asked to evaluate the effect of an advertising campaign designed to get people to have their blood
pressure checked. After examining the records kept by the blood pressure units in the target area, your friend showed you the
following graph, where X indicates an observation. What comment will you make to your friend about the advertising
campaign? More observations are needed to determine whether the independent variable is having the intended effect.
A goal differs from an objective because it is open-ended
A graph showing time plotted against the dollar sales of a product as it moves from introduction through growth and maturity
to decline is called the => B) product life cycle.
A hierarchy of strategy emphasizes the need for the three levels of strategy to complement and support one another. Answer: TRUE
A highly developed international company with a deep involvement throughout the world, plus a worldwide perspective in its
management and decision making is called a(n) multinational corporation.
A highly involved board does all of the following EXCEPT manage the everyday operations of the organization
A large, multidivisional business has three levels in its hierarchy of strategy Corporate -- Business -- Functional A
lead director creates a balance of power when the CEO is also Chair of the Board.
A linked set of value-creating activities beginning with basic materials provided by suppliers and ending with distributors
getting the final product into the hands of the ultimate consumer is called a => A) value chain.
A method developed in the mid-1990s as an efficient means to quickly consolidate a fragmented industry can be referred to
as a(n) => B) strategic rollup.
A minority percentage of large corporations in the Americas and Europe may keep the firm's recently retired CEO on the
board after retirement since there is a greater likelihood of a conflict of interest and less objectivity. Answer: TRUE A
nation whose people want career stability, formal rules, and clear-cut measures of performance would score high on which of
Hofstede's cultural dimensions? => A) uncertainty avoidance
A new approach to evaluating alternatives under conditions of high environmental uncertainty that proposes it
pays to have a broad range of options open is the =>real options approach.
A non-quantitative approach to forecasting that requires simply the presence of people with some knowledge of the situation
to be predicted is called => D) brainstorming.
A popular financial strategy in which a company is acquired in a transaction financed largely by debt eventually paid off
with money generated from the acquired company's operations or by sale of its assets is => the leveraged buyout. A
problem with the utilitarian approach is => E) that it is difficult to recognize all the benefits and costs of any particular decision.
A program is A statement of the activities needed to accomplish a single-use plan
A recent trend in information systems strategy is=> practicing follow-the-sun management.
A relationship that illustrates the term complementor is => A) Microsoft and Intel.
A set of sequential steps or techniques that describe in detail how a particular task or job is to be done is referred to as a standard operating procedure
A staggered board has only a portion of the board stand for election each year.
A strategic decision is rare, consequential, and directive. Answer: TRUE
A strategy maximizes competitive advantage and minimizes competitive disadvantage. Answer: TRUE
A study of 30 firms revealed that outsourcing can lead to a ________ percent reduction in costs. => 9
A study of nearly 500 of the world's largest corporations indicated which of the following to be the most widely practiced
form of forecasting? => E) trend extrapolation
A sugar company that is worried that consumers may buy artificial sweetener instead of sugar is concerned about the => C)
threat of substitute products.
A survey of 93 Fortune 500 firms found ten major problems that over half of the group experienced when they attempted to
implement a strategic change. Which of the following is NOT one of the implementation problems?
Time allocated for implementation was adequate, but was used inappropriately.
A survey of directors of U.S. corporations found that the main reason individuals serve on a board is for the compensation. Answer: FALSE
A table which summarizes the key success factors within a particular industry is called a(n) => E) industry matrix. A tactic
is defined by the text as => A) a specific operating plan specifying how a strategy is to be implemented in terms of when
and where it is to be put into action.
A winemaker in California finds it difficult to duplicate a French winery's key resources of land and climate. This is an
example of => A) transferability. lOMoARcPSD| 36782889
According to ________ theory, ________ directors tend to identify with the corporation and its success. stewardship; inside
According to a 2011 National Business Ethics survey, what percent of respondents who
According to a 2011 survey by the Ethics Resource Center, which was not cited as one of the most common questionable
behaviors that employees engage in? => A) cutting corners on quality
According to a 2013 survey by the Ethics Resource Center, which of the following was cited as a significant positive trend?
=> A) The percentage of firms providing ethical training rose to an all-time high of 81%.
According to a study of downsizing in the automobile-related industry, which one of the following is NOT a problem
associated with inappropriate downsizing? => A) Produced long-term benefits.
According to a survey of 156 large corporations, in what percentage of the firms were strategies first proposed in business
units and then sent to headquarters for approval? 66%
According to Alfred Chandler A) high-tech industries are defined by "paths of learning." B) companies spring from an
individual entrepreneur's knowledge, which then evolves into organizational knowledge. C) once a corporation has built
its learning base to the point where it has become a core company in its industry, entrepreneurial start-ups are rarely able
to successfully enter. D) organizational knowledge can become a competitive advantage. E) All of the above
According to an American Management Association survey, the most heavily outsourced activities were =>general and administrative.
According to Archie Carroll, the responsibilities defined by government in laws for
According to Archie Carroll, the responsibilities that management of a business organization assumes which are purely
voluntary obligations are => E) discretionary responsibilities.
According to Archie Carroll, the responsibility that management of a business organization
According to Barney's VRIO framework, the firm's exploitation of a competency pertains to => D) organization.
According to Campbell, Goold, and Alexander in their parenting-fit matrix, when parent companies create more value than
any of their rivals would if they owned the same businesses, they have =>parenting advantage.
According to Cavanagh, using the ________ criterion, to determine if padding an expense account is ethical or not, one would
ask if it optimizes the satisfactions of all stakeholders. => B) utility
According to Chandler and others, which factors MUST be closely aligned or else face the consequences of poor
organizational performance? strategy, structure, and environment
According to Goold and Campbell, when combined units benefit from sharing knowledge or skills, the synergistic effect is known as shared know-how.
According to Goold and Campbell, when companies coordinate the flow of products or services of one unit with that of
another unit which can reduce inventory, the synergistic effect is known as economies of scale or scope. According to
Goold and Campbell, which of the following is NOT one of the forms that synergy can take? value chain creation
According to Henry Mintzberg, the three most typical approaches to strategic decision-making are entrepreneurial, adaptive, and planning.
According to Hofstede, which cultural dimension describes the extent to which a society accepts an unequal distribution of
power in organizations? => D) power distance
According to Hofstede, which cultural dimension describes the extent to which a society values individual freedom and
independence of action compared with a tight social framework and loyalty to the group? => C) individualism-collectivism
According to Hofstede, which cultural dimension describes the extent to which society is oriented toward money and things
or towards people? => B) masculinity-femininity
According to Hofstede, which cultural dimension describes the extent to which a society emphasizes the importance of hard
work, education, and persistence as well as the importance of thrift? => E) long-term orientation
According to Hofstede's cultural dimensions, which country scored the highest on individualism? => D) United States
According to Hofstede's cultural dimensions, which country scored lowest on power distance? => C) Germany
According to Hofstede's cultural dimensions, which country scored lowest on uncertainty avoidance? => D) United States
According to Kohlberg, the first level of moral development, characterized by concern for self, is called => D) preconventional.
According to Kohlberg, the second level of moral development, characterized by considerations of society's laws and norms,
is called => C) conventional.
According to Kohlberg, the third level of moral development, characterized by a person's
According to Kohlberg, what stage of moral development do the vast majority of people in the United States occupy? => B) conventional stage lOMoARcPSD| 36782889
According to Mintzberg, the entrepreneurial mode of strategy formulation is focused on opportunities seen by one person.
According to organizational learning theory, an organization uses knowledge to improve the fit between itself and its environment. Answer: TRUE
According to Porter, a business unit in a competitive marketplace with no generic competitive strategy is => C) stuck in the middle.
According to Porter, strategies to raise structural barriers include all of the following EXCEPT => C) decrease scale economies.
According to Porter, the competitive strategy that reflects the ability of the corporation or its business unit to design, produce,
and market a comparable product more efficiently than its competitors is called => E) lower cost.
According to Porter, the competitive strategy that reflects the ability to provide unique and superior value to the buyer in terms
of product quality, special features, or after-sale service is called => B) differentiation.
According to Porter, the corporation is most concerned with => A) the intensity of competition within its industry.
According to Porter, the term that applies to the breadth of a company's or business unit's target market is called => A) competitive scope.
According to Porter, to achieve a cost advantage by following the functional strategy of technological followership, a business
unit should =>avoid R&D costs through imitation.
According to Porter, to achieve a differentiation competitive strategy by following the
According to Porter's model, a low force can enable the company to earn greater profits and can be regarded as a(n) => B) opportunity.
According to Porter's model, a strong or high force is likely to reduce profits and can be regarded as a(n) => D) threat.
According to the BCG Growth Share Matrix, those products with low market share that do NOT have the potential to
bring in much cash are called => dogs.
According to the BCG Growth-Share Matrix, market leaders that typically are at the peak of their product life cycle and are
usually able to generate enough cash to maintain their high share of the market are called =>stars.
According to the BCG Growth-Share Matrix, the key to success is=> market share.
According to the job characteristics model, how might a manager redesign work to increase task variety and enable workers
to identify with what they are doing? combine tasks
According to the job characteristics model, how might a manager redesign work to give workers increased authority and
responsibility over their activities? vertically load the job
According to the job characteristics model, how might a manager redesign work to encourage workers to know
what performance is required and why? establish client relationships
According to the job characteristics model, how might a manager redesign work to provide workers information on how
they are performing? open feedback channels
According to the job characteristics model, how might a manager redesign work to make workers more responsible and
accountable for the performance of the job? form natural work units
According to the research, in turbulent environments, the best type of planning is top-down strategic planning According
to the text, 75% of a company's market value is derived from its=> intangible assets.
According to the text, a complete package for an executive working in another country costs => E) $300,000 to $1 million annually
According to the text, assessment centers have been able to accurately predict subsequent => B) job performance and career success
According to the text, most publicly owned large corporations today tend to have boards with what degree of involvement in
the strategic management process? nominal to active
According to the text, one of the primary responsibilities of top management in strategic management is providing executive leadership.
According to the text, one reason environmental uncertainty is a threat to strategic managers is because => D) it hampers their
ability to develop long-range plans.
According to the text, the primary task of the operations manager is to => B) develop and operate a system that will produce
the required number of products or services with a certain quality, at a given cost, within an allotted time.
According to the text, the process of replacing a key top manager is called => A) executive succession.
According to the text, the strength of each of the six driving forces of industry competition varies according to the => B) stage of industry evolution. lOMoARcPSD| 36782889
According to the text, unanimous agreement is not the best way to determine the merits of a proposed alternative strategy.
To avoid this consensus trap, which technique assigns a group or individual to identify potential pitfalls and problems
with a proposed alternative strategy in a formal presentation?=> A) devil's advocate
According to the text, unanimous agreement is NOT the best way to determine the merits of a proposed alternative
strategy. To avoid this consensus trap, which technique involves presenting two conflicting views (the thesis and the
antithesis) presented in a debate format?=> dialectical inquiry
According to the text, unique market opportunities that are available for only a particular time are called => D) strategic windows.
According to the text, what is the "key" to effective management of change in culture? => E) communication
According to the text, which of the following is not a typical standing committee of boards of directors? public relations committee
According to the text, which one of the following is not descriptive of a corporation's culture? => B) Corporate cultures are
only temporary and can be easily changed.
According to the text, which one of the following is NOT one of the dangers of using primarily foreign nationals to staff
managerial positions in subsidiaries? => D) Promotes anger and jealousy within the nationalistic host government. According
to the text, which one of the following is NOT one of the reasons why innovations seem to occur more often in small firms
rather than in large, established corporations? =>Small firms are completely ignorant of risk management. According to the
utilitarian approach, CEOs give priority to the stakeholders who have the most => C) power, legitimacy, and urgency.
According to the utilitarian approach, stakeholders who have a legal or moral claim on company resources have => B) legitimacy.
Action plans are important for several reasons. Which one of the following is NOT one of these reasons? => A) If the action
plan is implemented properly, it ensures that the strategy will be a success.
Adding a related or complementary product to a corporation's business units is called A) concentration.
=>concentric diversification.
adherence to an internal moral code, is called => A) principled.
Agency theory suggests that the majority of a board needs to be from outside the firm. Answer: TRUE Alfred
Chandler, known for his study of large American corporations, concluded that structure follows strategy. All of
the following are benefits for a company to raising its debt levels EXCEPT=> increase in shareholder value.
All of the following are changing structural characteristics found in the modern organization design
EXCEPT centralized top-down decision making. Answer: E
All of the following are changing structural characteristics typically found in the "old organization design"
EXCEPT cross-functional work teams. Answer: E
All of the following are considered primary stakeholders EXCEPT => B) governments.
All of the following are considered secondary stakeholders EXCEPT => B) suppliers.
All of the following are one of the four types of moral relativism EXCEPT => C) principled relativism.
All of the following are technological breakthroughs already having a significant impact on many industries EXCEPT => A) growing health consciousness.
All of the following are true of overconfident CEOs EXCEPT overconfident CEOs were less likely to make an acquisition
when they could avoid selling new stock to finance them.
All of the following are true of the dual chair/CEO position EXCEPT firms with a dual chair/CEO role have significantly better stock performance.
All of the following reasons provide rationale for unethical behavior EXCEPT => D) agreement among stakeholders and
business people that unethical behavior is acceptable.
All of the following reflect activities of a learning organization EXCEPT alienating competitors in the industry
All of the following reflect categories of organizational risk as a result of climate change EXCEPT sustainability risk. All
of the following reflect characteristics of a successful integration manager EXCEPT => D) an ability to hire like-minded people.
All of the following reflect criticisms of the SWOT analysis EXCEPT => C) provides a rational link to strategy implementation.
All of the following reflect survey findings of the reasons for which individuals serve on a board EXCEPT willing to always
agree with executive decisions.
Amazon.com, founded by Jeff Bezos and reflecting his vision, is an example of which mode of strategic decisionmaking? entrepreneurial lOMoARcPSD| 36782889
An acronym for the assessment of the external and internal environments of the business corporation in the process of strategy
formulation/strategic planning is => C) S.W.O.T.
An agency problem can occur when the desires and objectives of the owners and agents conflict
An attempt to explain that vertical integration is more efficient than contracting for goods and services in the marketplace
when the transaction costs of buying goods on the open market becomes too great has been proposed by =>transaction cost economics.
An automobile assembly line is an example of which approach to manufacturing? => A) continuous system
An example of an objective is "increased profitability," while an example of a goal is "to increase the firm's profitability in
2010 by 15% over 2009." Answer: FALSE
An example of the promotion variable of the marketing mix is => A) advertising.
An external block preventing a corporation from moving from one stage to another is unfavorable economic conditions.
An industry dominated by a few large firms, all of which struggle with product differentiation, is known as => B) consolidated.
An MNC uses which international strategy for entering a foreign market by simply shipping goods produced in the company's
home country to other countries for marketing to minimize risk and to experiment with a specific product? =>exporting
An MNC uses which international strategy for entering a foreign market by associating itself with a firm in the host country
or a government agency in that country to combine resources and expertise needed for the development of a new product
or technologies? =>joint ventures
An MNC uses which international strategy for entering a foreign market by purchasing another company already operating
in the area developing synergistic benefits gained from acquiring strong complementary product lines and a good
distribution network? =>acquisitions
An MNC uses which international strategy for entering a foreign market by combining the higher labor skills and technology
available in the developed countries with the lower cost labor available in the developing countries? =>production sharing
An organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new
knowledge and insights is a(n) learning organization
An organization which is composed of cells that can operate alone but that can interact with other cells to produce a more
potent and competent business mechanism is referred to as a(n) modular organization.
An overarching strategy that explicitly communicates the firm's ethical relationship with its stakeholders is => A) an enterprise strategy.
Approximately what percent of manufacturing companies have implemented some form of quality management practices. => A) 92
Archie Carroll's four responsibilities listed in order of priority are => C) economic, legal, ethical, and discretionary.
As a part of the strategic management process, evaluation and control is concerned with all of the following, EXCEPT
determining top management compensation
As an industry becomes hypercompetitive, firms initially respond by => D) competing on cost and quality.
As an industry matures while overcoming fragmentation and becomes dominated by a small number of large companies, it
tends to become a(n) => C) consolidated industry.
As compared to a firm with low financial leverage, a firm with a high amount of financial leverage in an expanding market
should have => C) higher earnings per share. Answer: C
As defined by the text, synergy is the concept =>that two firms can generate more profits together than separately. As
defined in this course, a policy is a broad guideline for making decisions that links the formulation of strategy with its implementation
As more industries become global, strategic management is becoming less important in positioning a company for longterm
competitive advantage Answer: FALSE
As opposed to rule-based countries, relationship-based countries tend to => D) be less transparent and have a higher degree of corruption.
As societal values evolve, it is likely that the ________ responsibilities of today may become the ________ responsibilities
to tomorrow. => C) discretionary; ethical
Avon is an example of a company that demonstrated having a diverse workforce=> A) can be a competitive advantage. B lOMoARcPSD| 36782889
Becky was hired to determine what types of recreational programs teenagers want and would use in the city of Edmonton,
Alberta. What type of study was Becky hired to conduct? needs assessment study Being socially responsible => B) has opened
doors in local communities. bending the rules to attain their objectives? => A) organizational performance required it
Benjamin is conducting a program evaluation of a new juvenile deterrence program for first-time offenders. Early indicators
delivered to the program coordinator, Captain Smith, are not good – they indicate that the program is having a negative effect
on offending. The Captain, upon hearing this, wants to prevent a negative evaluation and thus extremely limits Benjamin’s
access to data. What type of problem is this? administrative control
Blindly following orders reflects which type of moral relativism? => B) role relativism
Board members who are not employed by the corporation, but handle the legal or insurance needs of the firm and are thus not
true "outsiders," are what kind of directors? affiliated directors
Briefly describe the four basic elements of strategic management. Strategic management consists of four basic elements.
Environmental scanning is the monitoring, evaluating, and disseminating of information from the external and internal
environments to key people within the corporation. Strategy formulation is the development of long-range plans for
effective management of environmental opportunities and threats, in light of corporate strengths and weaknesses. Strategy
implementation is the process by which strategies and policies are put into action through the development of programs,
budgets, and procedures. Evaluation and control is the process in which corporate activities and performance results are
monitored so that actual performance can be compared with desired performance.
Business strategy focuses on => B) improving the competitive position of a corporation's products or services within the
industry or market segment served.
Business strategy is composed of => C) competitive and cooperative strategy
By 2012, 56% of the S&P 500 boards had split the role of chairperson and CEO. Answer: TRUE C
Canada, the United States, and Mexico are affiliated economically under which trade alliance? NAFTA
Catalyst-level boards of directors typically take leading roles in establishing and modifying the company mission, objectives, and strategy
Climate change has become a growing concern for businesses to include in their corporate strategies. Answer: TRUE
Codetermination is the inclusion of a corporation's employees on its board.
Codetermination has been used in Germany since the 1950s, but has not been used in the United States. Answer:
FALSE combinations of consumer paper products, they are said to be engaging in=> multipoint competition.
Companies with fairly broad product lines that focus on product innovations and market opportunities, reflect which strategic
orientation? => D) prospectors
Continuous improvement is an operations concept developed in=> Japan.
Contrast agency theory and stewardship theory. Answer: Agency theory states that problems arise in corporations
because the agents (top management) are not willing to bear responsibility for their decisions unless they own a substantial
amount of stock in the corporation. The theory suggests that a majority of a board needs to be from outside the firm so that
top management is prevented from acting selfishly to the detriment of the shareholders. Stewardship theory proposed that,
because of their long tenure with the corporation, insiders (senior executives) tend to identify with the corporation and its
success. Rather than use the firm for their own ends, these executives are thus most interested in guaranteeing the continued
life and success of the corporation.
Corporate parenting generates corporate strategy by focusing on =>the core competencies of the parent corporation and on
the value created from the relationshipbetween the parent and its units. Corporate strategy occurs at the business unit or product level. Answer: FALSE
Corporations that lack a consistent strategy-structure-culture relationship reflect which
Cultural backgrounds affect strategic choices. Korean executives emphasize ________ in their decisions; whereas U.S.
executives emphasize ________. =>Industry attractiveness, sales and market share; projected demand, discounted cash flow, and D
Define globalization and identify the role of strategic management in globalization. Globalization is the
internationalization of markets and corporations. It has changed the way that modern corporations do business. As more
industries become global, strategic management is becoming an increasingly important way to keep track of international
developments and position the company for long-term competitive advantage. Downsizing is often used to implement a(n)
________ strategy. => A) retrenchment lOMoARcPSD| 36782889
During Stage II of the organizational life cycle, the structure most likely to be implemented is functional management.
During Stage V of the organizational life cycle, the popular strategy is liquidation or bankruptcy. E
Economist Milton Friedman has argued that a business's only responsibility is to => A) maximize profits and stay within the rules of the game.
Employees who report illegal or unethical behavior on the part of others are known as => B) whistleblowers.
Environmental sustainability reflects business practices to reduce a firm's impact on the physical environment Answer: TRUE
Ethics is defined as => C) consensually accepted standards of behavior for an occupation, trade, or profession.
Executive leadership is the directing of activities toward the accomplishment of corporate objectives. Answer: TRUE
Executives with a particular mix of skills and experiences may be classified as an executive type and paired with => B) a specific corporate strategy
Explain the continuum of board involvement. Answer: The board of directors' continuum reflects the degree of
involvement (from high to low) in the strategic management process. Boards can range from phantom boards with no real
involvement to catalyst boards with a very high degree of involvement. Passive phantom or rubber stamp boards typically
never initiate or determine strategy unless a crisis occurs.
Explain the difference between a direct and indirect interlocking directorate. Answer: A direct interlocking directorate
occurs when two firms share a director or when an executive of one firm sits on the board of a second firm. An indirect
interlock occurs when two corporations have directors who also serve on the board of a third firm. F
FedEx stipulates specific employee behavior including how a driver dresses to how keys are held when approaching a
customer's door. This is an example of a procedure
FedEx's application of information technology to all its operations is an example of => C) core competencies.
Flexible manufacturing emphasizes => D) economies of scope over economies of scale.
For each $1 spent on training, Motorola estimates it receives ________ in productivity gains within three years. => D) $30
For many large corporations the typical strategic planning staff has just fewer than how many people?-->10
For the last 20 years, Marcia has been tracking the divorce and marriage rates in Canada. What type of research is Marcia conducting? monitoring study
Ford Motor Company's use of company resources to build its River Rouge Plant outside of Detroit so that iron ore could
enter into one end of the plant and a finished automobile could exit out of the other end is called =>A) vertical growth.
Former Enron Vice-President Sherron Watkins used the ________ analogy to explain why executives at Enron engaged
in unethical and illegal actions. => D) frogs in boiling water
From the perspective of the public, the primary job of the board of directors is to closely monitor the actions of management.
functional strategy of technological leadership a business unit should=> innovate in other activities to increase buyer value. G
General Electric led the transition from strategic planning to strategic management during the 1980s--> Answer: TRUE
Generally, the smaller the corporation, the less active is its board of directors. Answer: TRUE
Globalization is the internationalization of markets and corporations. Answer: TRUE
Growth through diversification out of an industry into an unrelated industry is called A) concentration.
=>conglomerate diversification.
Gwyneth, an advocate of sexual reform, knows (from research studies) that condoms can prevent sexually transmitted diseases
as well as pregnancy. She decides to educate first-year students at her university about the advantages of using condoms
through a short film depicting various characters. Some of the characters portray traditional mindsets (refusing to wear
condoms); some portray the more liberal mindsets (proponents of condoms); and some are transitional characters whose
attitudes move from traditional to more liberal with respect to condom use. Gwyneth plans on recording the rates of
pregnancy/STDs for the first-year students at her university before and after the educational short film. She also plans to
compare her results with those of first-year students at a different university with similar demographics who do not watch the
educational short film. What is the experimental design that Gwyneth chose to use? multiple time-series design has to produce
goods and services of value to society so that the firm may repay its creditors and stockholders is called => C) economic responsibilities.
Henry Mintzberg discovered that strategic formulation is a regular, continuous process. Answer: FALSE Hofstede's
work on national culture was extended to nine cultural dimensions by => B) Project GLOBE. lOMoARcPSD| 36782889
How does job rotation combat the adverse consequences of task specialization? By moving workers through several jobs,
thereby exposing them to increased variety.
Human resource departments have found that to reduce employee dissatisfaction and unionization efforts, they must => E)
consider the quality of work life in the design of jobs. I
IBM under CEO Louis Gerstner and his strategic decision to invest in services in 1993, is an example of which mode of
strategic decision-making? planning
If a company wishes to be a technological follower and also pursue a differentiation strategy, the appropriate R&D strategy
would be to => adapt the product or delivery system more closely to buyer needs by learning from the leader's experience.
If a company wishes to be a technological leader and also maintain a cost advantage, the appropriate R&D strategy would
be to => create low-cost ways of performing value activities.
If a planned strategy is not compatible with the company's current culture, and management is not willing to make major
organizational changes required to manage around the culture, what should the organization do? => A) Find a joint-venture
partner or contract with another company to carry out the strategy
If a planned strategy is NOT compatible with the current culture, but the culture can be easily modified to make it more
compatible with the new strategy, what should the organization do? => C) Move forward very carefully by introducing a set
of culture-changing activities.
If it is to be successful, Porter advises that a division possess strong marketing abilities, product engineering, a creative
flair, strong capability in basic research and a corporate reputation for quality or technological leadership, for which one
of the following generic competitive strategies? => B) differentiation
In a process called ______, the once-isolated specialists now work side-by-side and compare notes constantly in an effort to
design cost-effective products with features customers want => D) concurrent engineering
In a study that examined whether using mediation in divorces resulted in “fairer” settlements, what is the intervention? the use of mediation
In a survey of 50 corporations, which of the following was rated as a benefits of strategic management? clearer sense of vision for the firm
In a TOWS Matrix, SO Strategies => A) are generated by thinking of ways in which a company or business unit could use its
strengths to take advantage of opportunities.
In a TOWS Matrix, ST Strategies => D) consider a company's or unit's strengths as a way to avoid threats.
In a TOWS Matrix, WT Strategies => C) are basically defensive and primarily act to minimize weaknesses and avoid threats.
In addition to Porter's Five Forces, another force added in the text is => B) other stakeholders.
In Christensen's book, The Innovator's Dilemma, he explains that established market leaders are typically reluctant to move
in a timely manner to a new technology. This reluctance to switch technologies is because the resource allocation process
in most companies gives priority to those projects with the greatest likelihood of generating a => A) good return of investment.
In his book, Global Competitive Strategy, Spulber identified which of the following as a force pushing for
standardization local regulatory requirements
In implementing the Sarbanes-Oxley Act, the SEC required in 2003 that a company disclose if it has adopted a code of
ethics that applied to the CEO and the CFO.
In international dealings, green-field development is=>when a corporation chooses to build a facility from scratch allowing it
the freedom to design the plant, choose suppliers, and hire its work force.
In international dealings, turnkey operations are =>E) contracting for construction of operating facilities in exchange for a fee.
In many cases, ________ integration is more profitable than ________ integration.=> backward; forward
In order for a business to be sustainable, it must satisfy which of Carroll's responsibilities? => E) all of the above
In order to move more quickly through a product's development stage and have people from each discipline get involved
in projects early on, companies are using => B) cross-functional work teams. In support of whistle-blowers, the U.S. False
Claims Act gives whistle-blowers what
In the Boston Consulting Group's Growth-Share Matrix, the relative competitive position of a product, division, or corporation
is defined as => its market share divided by that of the largest other competitor.
In the development of a SFAS matrix, the first step is to => C) list the most important EFAS and IFAS items.
In the EFAS Table, the indicator of how well a particular company is responding to current and expected factors in its external
environment is characterized by the => C) total weighted score. lOMoARcPSD| 36782889
In the externally oriented planning phase, plans are developed by heavily involving the input of managers from lower levels Answer: FALSE
In the final phase of strategic management, strategic information is available to people throughout the organization. In
which strategy does management hope that another company will have the necessary resources and determination to return
the company to profitability? =>sell out
In which type of international industry do corporations tailor their products to the specific needs of consumers in a particular
country? => D) multidomestic industry
Individuals such as Phil Knight at Nike and Steve Jobs at Apple who energized their companies and provided change and
movement by providing a vision for that change are known as transformational leaders.
Industry analysis is primarily concerned with a corporation's => B) task environment.
Intel was able to gain a significant cost advantage over its competitors in the production and sale of microprocessors because
of => D) economies of scale.
Interlocking directorates are a useful method for gaining both inside information about an uncertain environment and
objective expertise about potential strategies and tactics. They are, however, increasingly frowned upon because of the
possibility of collusion. Answer: TRUE
Issues in affirmative action such as reverse discrimination are examples of conflicts between => C) distributive and compensatory justice.
It is advisable to have management from all levels participate in the strategy formulation proces to gain an insight as to
what work needs to be done and to gain cooperation in the implementation of the strategy.
Jake examined the impact of a new street lighting program on crime in seven neighbourhoods. He measured crime rates at
one-month intervals for six months before the new street lights were erected and for six months after. Which design did he use? time series
Jeff Bezos, CEO of Amazon.com, uses the S team (senior management) to engage in continuous strategic planning. Answer: TRUE
Joshua conducted a survey of domestic violence incidents in Canada, and then administered the survey again every two years
for a decade to see if things have improved for those involved. What type of research did Joshua conduct? a monitoring study K
Knowing a company is mindful of its impact on the environment seldom changes consumer buying habits. Answer: FALSE
Knowledge that can be easily articulated and communicated is known as A) tacit knowledge => B) explicit knowledge.
Knowledge that is not easily communicated because it is deeply rooted in employee experience or in a corporation's culture
is called => A) tacit knowledge.
Korn/Ferry International reported that amongst the 100 largest companies listed in 2011 ________ of boards of directors had
at least one female director 96% L
Law is defined as => A) formal codes that permit or forbid certain behaviors and may or may not enforce ethics or
Logical incrementalism is a useful decision-making mode when the environment is rapidly changing and when it is important
to build consensus. Answer: TRUE M
Management contracts are used in international dealings =>when an MNC has a large amount of management talent
available and chooses to use its personnel to assist a firm in a host country for a specified fee and period of time.
management to obey are => A) legal responsibilities.
Managers who want to improve ethical behavior should take actions such as => E) all of the above Many
companies have found that outsourcing logistics=> reduces costs and improves delivery time.
Melissa wanted to compare the provinces and territories on various aggregated statistics that reflect the social conditions in
those provinces and territories so that she could make regional comparisons. Which design should she use? social indicators design
Members of the European Union (EU) include all of the following EXCEPT Malaysia.
Milton Friedman's position on social responsibility => B) appears to be losing traction with business executives.
Mintzberg's entrepreneurial mode is sometimes referred to as "muddling through" since this decision- making mode tends to
be more reactive than proactive in the search for new opportunities. Answer: FALSE lOMoARcPSD| 36782889
Morality is defined as => B) a general rule of conduct of personal behavior, based on religious or philosophical grounds. morality.
More than ________ of outside directors surveyed said that they had been named as part of a lawsuit against the corporation. 40%
Most entrepreneurial ventures follow => B) focus strategies.
Motorola provides each employee with at least ________ hours of training per year. => E) 40 N
Nate did an evaluation research study on how after-school programs in schools affected the delinquency rates of tweens. As
part of his study, Nate examined the changes in availability of after-school programs outside of schools as well as changes in
enforcement of delinquency laws. Which term describes this analysis of factors outside his specific evaluation design?
measuring experimental contexts
Nominal participation reflects a board involved to a limited degree in the performance or review of selected key decisions,
indicators, or programs of management. An active board approves, questions, and makes final decisions on mission, strategy,
policies, and objectives. It also has active board committees and performs fiscal and management audits. The catalyst board
takes the leading role in establishing and modifying the mission, objectives, strategy, and policies. It also has a very active strategy committee. O
Objectives which are personal and subjective and are typified by an entrepreneurial spirit describe what stage of
corporate development? Stage I company observed corporate misconduct rated their cultures as weak? => A) 90 of
an => A) organization's ethical and discretionary responsibilities.
Of the six values measured by the Allport-Vernon-Lindzey Study of Values test, both U.S. and British executives
consistently score highest on ________ values and lowest on ________ values. => C) economic and political; social and religious
On the continuum of resource sustainability, where would streaming movies be placed? => D) fast-cycle resources
Once the best strategic alternative is selected, the broad guidelines for its implementation are then defined by=> policies.
One benefit of a U.S. company entering a joint venture with an international firm is that it=>reduces the risks of expropriation.
One company that has successfully found a propitious niche is => D) Frank J. Zamboni & Company.
One ground rule necessary for effective brainstorming is => B) propose ideas without mentally screening them.
One of the benefits of globalization is economies of scale.
One of the benefits of strategic management is a clearer sense of vision for the firm Answer: TRUE
One of the big common mistakes by corporations sending executives on global assignments is NOT => B) educating
executives about customs and values in other countries.
One of the most popular aids to developing corporate strategy in multi-business corporations views business units in terms of
the cash they generate is called=> portfolio analysis.
One research study of TQM successes and failures concluded that a key ingredient in TQM programs is => C) top management.
One tenet of the learning organization is to maintain stability. Answer: FALSE organization's
external environment is/are called => C) environmental uncertainty.
Orphagenix, a small biotech firm, avoids head-to-head competition with large pharmaceutical companies by developing
orphan drugs to target diseases that affect fewer than 200,000 people. This is an example of which of Porter's generic
strategies? => C) differentiation focus
Other software companies could not compete with Microsoft based on the hesitation of consumers to try a new software.
Which of Porter's forces does this reflect? => D) bargaining power of suppliers
Outside directors are defined as individuals on the board who are not employed by the board's corporation
Outside directors may be executives of other firms but are not employees of the board's corporation. Answer: TRUE
Over ________ of large companies use trend extrapolation for forecasting. => E) 70% P
Patagonia uses sustainability in pursuing which of Porter's generic strategies? => A) differentiation
percent intentionally misrepresented their economic performance primarily to influence stock
percentage of any damages recovered in cases where the government is defrauded? => B) 15-30%
Performance results are monitored at the strategy formulation phase of the strategic management process. Answer: FALSE lOMoARcPSD| 36782889
Population ecology is a theory that proposes organizations can and do adapt to change by imitating other successful organizations. Answer: FALSE
Population theory states that problems arise in corporations because the agents (top management) are not willing to bear
responsibility for their decisions unless they own a substantial amount of stock in the corporation. Answer: FALSE
Porter recommends that a division with tight cost control, frequent detailed control reports, a well structured organization,
and quantitatively-based incentives is required for which of the following generic competitive strategies?
=> C) overall cost leadership positioned in the same order as the parts are processed, this setup is known
as=> connected line batch flow. possessing a high market share in a highly attractive industrys => concentration.
Pregnant women planning to deliver their babies in hospital A were given a poison control test. After the delivery of their
babies, the new moms attended a two-hour training session on poison control. One week later, at their babies’ one-week
check-up exam, the new moms retook the poison control test. Located in the same city, pregnant women planning to deliver
their babies in hospital B were given a poison control test. One week later, at the babies’ one- week check-up exam, these
new moms retook the poison control test. What kind of design is being used? a nonequivalent control group price? => B) 20%
Producers of TV shows that depict violence often ignore the studies that indicate children who watch violence are more likely
to be aggressive, have fewer friends, and have poorer relationships with their parents than children who do NOT watch violent
shows. Which of the following is the most likely reason that producers of the violent TV shows ignore the implications?
because the findings conflict with the producers’ vested interests
Products that typically bring in far more money than is needed for maintenance of their market share are called => cash cows.
Professor Henley wants to compare the use of the legal system in different countries. Henley examines the number of arrests
per 1,000 population, the number of jury trials per 1,000 court cases, the number of lawyers per capita, and the number of
people incarcerated per 1,000 population. What type of evaluation is Professor Henley doing? social indicator research
Providing daycare centers to employees is an example of which of Archie Carroll's
Punctuated equilibrium describes organizations as evolving through relatively long periods of stability punctuated by
relatively short bursts of fundamental change. Answer: TRUE
Purchasing a product or service from an outside contractor that had been previously provided internally is called =>outsourcing. R
Refer to Exhibit 12.1. What is the experimental stimulus? the study skills class
Refer to Exhibit 12.1. What problem is illustrated? logistics
Refer to Exhibit 12.1. What type of design is being used? the nonequivalent control group design
Research comparing concentric with conglomerate diversification concludes that =>the relationship between relatedness
and performance is curvilinear.
Research done by Henry Mintzberg suggests that strategy formulation is typically an irregular and a discontinuous process.
Research indicates that a broad mission statement may be best in a turbulent environment. Answer: FALSE
Research of the planning practices of companies in the oil industry concludes that the real value of modern strategic planning
is more in the strategic thinking and organizational learning.
Research reveals that the likelihood of a firm engaging in illegal behavior or being sued declines with the addition of outsiders on the board.
Research suggests that boards of directors tend to look outside the firm for the next CEO under which following circumstance?
=> C) when the company is in trouble
Research suggests that strategic management evolves through four sequential phases in corporations. The first phase is basic financial planning.
resources?" => A) strategic group responsibilities? => E) discretionary
Roberto wanted to examine the impact of newly enacted seat belt laws. He did so by comparing the number of deaths due to
car crashes before and after the laws were implemented. He did this in multiple provinces and compared the changes in deaths
with provinces that did not implement seat belt laws in order to more clearly understand the impact of the new laws. Which
design did he use? multiple time-series design. ROI
Role relativism is based on the belief that => C) social roles carry with them certain obligations. lOMoARcPSD| 36782889
Rule-based governance => B) relies on publicly verifiable information. S
seniority, is an example of => D) distributive justice.
Sergio set up an evaluation study at a private high school to examine the impact of wearing uniforms on delinquent behaviour.
Midway through the study, various senior principals interfered with the assignment of students to the group that wore uniforms
and with data gathering for the measurement of delinquent behaviour. Which of the following did Sergio experience? administrative control
Shelley examined the impact of a special orientation session for first-year students on students’ retention in college. She
experienced many problems with getting students to arrive on campus before the term began, with getting students into
appropriate groups, and with getting the research instruments distributed and returned. Which of the following did Shelley
experience? logistical problems
Sixty-six percent of the outstanding stock in the largest U.S. and UK corporations is now owned by institutional investors
Society generally expects firms to work with employees and the company to plan for layoffs. This is an example of which of
Archie Carroll's responsibilities? => D) ethical
Society increasingly expects corporate boards to balance the economic goal of profitability with the social needs of society. Answer: TRUE
Some people claim that morality is relative to some personal, social, or cultural standard and that there is no method for
deciding whether one decision is better than another. This is called => E) moral relativism.
Stage III in the organizational life cycle is the maturity stage.
Stage V in the organizational life cycle is the death stage. Answer: E
Stewardship theory proposes insiders (senior leadership) tend to identify with the corporation and its success. Answer: TRUE
Strategic flexibility is the ability to shift from one dominant strategy to another. Answer: TRUE
Strategic goals can be accomplished through defining an action plan. Which one of the following is NOT one of the
components which make up an action plan? => D) where the action will be done
Strategic management is one decision that determines the short-term performance of a corporation Answer: FALSE
Strategic management is that set of managerial decisions and actions that determine the longrun performance of a
corporation. Which one of the following is NOT one of the basic elements of the strategic management process? statistical process control
Strategic managers must be concerned with human resource management because => C) the best strategies are meaningless
if employees do not have the skills to carry them out or if jobs cannot be designed to accommodate the available workers.
strategic orientation? => B) reactors
Strategic planning in a multidivisional corporation should be a formalized and sophisticated system Strategic
planning within a small organization may be informal and irregular.
Successful analyzer firms tend to be headed by CEOs with backgrounds in the areas of => C) marketing/sales.
Successful defender firms tend to be headed by CEOs with backgrounds in the areas of => B) accounting/finance,
manufacturing/production, and general management.
Successful prospector firms tend to be headed by CEOs with backgrounds in the areas of => A) research/engineering and general management
Succession planning for the board and top management team is one of the five responsibilities of the board of directors Answer: TRUE
Surveys of large U.S. and Canadian corporations found outsiders make up what percentage of total board membership? 80%
Sydney studied the impact of selling Girl Guide cookies on the troupes’ morale. She randomly assigned six troupes to sell the
cookies and six troupes to not sell the cookies. She measured troupe morale before it was time to sell cookies as well as a
month after. Which design did she use? classical experimental T
Target's efforts to offer brands from companies with ethical track records and community involvement help the retailer attract
socially concerned younger consumers. This is an example of => A) social capital.
The ________ boards typically never initiate or determine strategy unless a crisis occurs rubber stamp
The ________ has been measuring the state of ethics in organizations since 2007. => D) Ethics Resource Center
The ability for Nike to manufacture its own shoes and then build stores for distribution is an example of =>forward integration. lOMoARcPSD| 36782889
The ability of a corporation to shift from one dominant strategy to another is called strategic flexibility
The ability of an organization to reshape its environment is described by the strategic choice perspective
The ability of competitors to use duplicated resources and capabilities to imitate the other firm's success is called => E) replicability.
The approach to ethical behavior which proposes that actions and plans should be judged by their consequences, thus
producing the greatest benefit to society with the least harm or the lowest cost is called => C) utilitarian approach. The
approach to ethical behavior which proposes that human beings have certain fundamental rights that should be respected
in all decisions, thus avoiding interfering with the rights of others is called => A) individual rights approach. The approach
to ethical behavior, which proposes that decision makers be equitable, fair, and impartial in the distribution of costs and
benefits to individuals and groups is called => D) justice approach.
The average board member of a U.S. Fortune 500 firm serves on ________ board(s). 3
The average large, publicly held U.S. corporation has around 10 directors
The board of directors has an obligation to approve all decisions that might affect the longrun performance of the corporation. Answer: TRUE
The book Hypercompetition was written by => E) D'Aveni.
The breadth of an organization's culture or the extent to which units throughout an organization share a common culture is
also known as => C) cultural integration.
The business model used by HP in selling printers and printer cartridges is the => E) multi-component system/installed base model.
The business model used by IBM to make money not selling IBM products, but by selling its expertise to improve their
customers operations is the => C) customer solutions model.
The business model used by Spirit Airlines in offering a low-priced fare to the mass market is the => A) efficiency model.
The collective strength of the interaction of potential entrants, buyers, substitutes, suppliers, firm rivalry, and other
stakeholders determine => C) the ultimate profit potential in the industry measured in terms of long-run return on invested capital.
The combination of the degree of complexity and the degree of change existing in an
The combined chairperson/CEO position is being increasingly criticized because of the potential for conflict of interest. Answer: TRUE
The combining of tasks to give a worker more of the same type of duties to perform is known as job enlargement.
The concept of ________ was taken one step further in JITII, in which vendor sales representatives usually have desks
next to the purchasing company's factory floor, attend production status meetings, visit the R&D lab, and analyze the
purchasing company's sales forecasts. => sole sourcing
The concept of the lead director originated in the United Kingdom
The concept that advocates management's attempt to find a strategic fit between external opportunities and internal strengths
while working around external threats and internal weaknesses is called => E) situational analysis.
The concept that proposes private corporations have responsibilities to society that extend beyond making a profit is known
as => B) social responsibility.
The confidence levels of executive leaders may blind them to information that is contrary to a decided course of action; this
may help to understand why overconfident CEOs are more likely to conduct mergers and acquisitions. Answer: TRUE
The controversy surrounding external versus internal growth finds =>internal growth appears to be superior financially to external growth.
The corporate mission is best described by which one of the following? The purpose or reason for the corporation's existence
The corporation's task environment => B) includes those elements or groups within an organization's industry.
The currency used to integrate the monetary systems of the European Union (EU) is called the euro
The development of long-range plans for the effective management of environmental opportunities and threats in light of
corporate strengths and weaknesses is known as strategy formulation
The displacement of one technology by another, as shown by two S-shaped curves on a graph, is referred to as => D) technological discontinuity.
The Dow Jones Sustainability Index includes => C) environmental, economic, and social sustainability.
The emphasis of strategic management is on monitoring and evaluating external opportunities and threats in light of a
corporation's strengths and weaknesses. lOMoARcPSD| 36782889
The establishment of its own sales company with offices in other countries to eliminate the middlemen and to better control
marketing occurs in Stage of international development 2
The evaluation of alternative strategies and selection of the best alternative is referred to as A) alternative generation. =>strategic choice.
The existence of a performance gap should cause management to question their objectives, strategies, and policies.
The first company to manufacture and sell a new product or service is called a(n) => B) first mover.
The first step in constructing a corporate scenario is to =>use industry scenarios to develop a set of assumptions about the task environment.
The first step in stakeholder analysis is to => A) identify primary stakeholders.
The flow of products into and out of the manufacturing process is a factor when developing a(n) ________ strategy. => logistics
The focus strategies will likely predominate when many small and medium sized local companies compete for relatively small
shares of the total market in a(n) => B) fragmented industry.
The function of a nominating committee is to find outside board members for election by the stockholders.
The GE Business Screen has been criticized because =>it can get quite complicated and cumbersome.
The growth-share matrix of the Boston Consulting Group suggests that the excess cash being generated by "cash cows" should
be used to fund => "question marks."
The hiring of new people with new skills, firing of people with inappropriate or substandard skills, and/or training existing
employees to learn new skills are included the process of => B) staffing.
The integrated internationalization of markets and corporations is called globalization
The internal environment includes the variables of opportunities and threats. Answer: FALSE
The issues priority matrix used in environmental scanning is composed of two axis or dimensions which are labeled => C)
probability of occurrence and probable impact on the corporation.
The job characteristics model is a good example of job enrichment.
The key to outsourcing is to purchase from the outside only those activities that=> A) are not key to the company's distinctive competence.
The kind of strategic alliance in which a company forms a strong and close long-term relationship for mutual advantage with
a key supplier or distributor is the => C) value-chain partnership.
The kind of strategic alliance in which there is a partnership of similar companies in similar industries who pool their resources
to gain a benefit that is too expensive to develop alone is the => D) mutual service consortia
The last stage of a hypercompetitive industry is reached when the remaining large global competitors => E) work their way
to a situation of perfect competition in which no one has any advantage and profits are minimal.
The lowest degree of involvement for a board of directors is the catalyst level of interaction. Answer: FALSE The
majority of outside directors are active or retired CEOs and COOs of other corporations. Answer: TRUE The mix
in the workplace of people from different races, cultures, and backgrounds is referred to as => B) diversity.
The mode of strategic decision-making typical of most universities, many large hospitals, a large number of governmental
agencies, and a surprising number of large corporations is adaptive
The mode of strategy formulation used when top management has a reasonably clear idea of the corporation's mission and
objectives, but it chooses to develop a series of tentative or partial strategies instead of developing full-blown strategies is called logical incrementalism
The monitoring, evaluating, and disseminating of information from the external and internal environments to key people
within the corporation is referred to as environmental scanning
The more active professional boards are being replaced by the board as a rubber stamp of the CEO. Answer: FALSE
The most commonly used political strategies include which of the following?=>all of the above
The most logical growth strategy for a corporation having a strong competitive position
The most widely used forecasting technique used after trend extrapolation is => C) scenario-writing.
The movement of workers through several jobs to increase variety is referred to as job rotation.
The negative side of confident executive leaders is that their very confidence may lead to hubris, in which their confidence
blinds them to information that is contrary to a decided course of action. Answer: TRUE
The New York Stock Exchange (NYSE) requires corporations to have an audit committee composed entirely of independent, outside members.
The organization's corporate mission statement should set the organization apart from its competitors. lOMoARcPSD| 36782889
The part of an industry's value chain that is most important to a company and the point where its greatest expertise and
capabilities lie is called the company's => B) center of gravity.
The particular capabilities and resources a firm possesses and the superior way in which they are used is called => A) distinctive competencies.
The particular combination of product, place, promotion, and price is called => D) marketing mix.
The percentage of directors of small, publicly held U.S. corporations who are outsiders is approximately 20 - 40%. The
percentage of European and Japanese-based expatriate managers who fail to adjust to a host country's social and business
environment is => A) 6% or less.
The percentage of large U.S. corporations using nominating committees to identify potential new directors is approximately 97%
The percentage of U.S.-based expatriate managers who fail to adjust to a host country's social and business environment is => B) approximately 35%
The phenomenon that describes corporations as evolving through relatively long periods of stability punctuated by relatively
short bursts of fundamental change is known as punctuated equilibrium
The pricing, selling, and distributing of a product is referred to as a(n) ________ strategy.=> A) marketing The
primary activity of competitive intelligence is to => A) monitor competitors.
The PRIMARY task of the manager of information systems is to => D) design and manage the flow of information in a
corporation to improve productivity and decision-making.
The principle, which argues that wrongs should be compensated in proportion to the offense suffered is called => A) compensatory justice.
The principle, which proposes that punishment should be determined on a proportional basis to the "crime" is called => B) retributive justice.
The process by which strategies and policies are put into action through the development of programs, budgets, and procedures is strategy implementation
The process of taking a new technology from the laboratory to the marketplace is called => D) technology transfer.
The program which incorporates the statistical approach of Six Sigma with the lean manufacturing program
originally developed by Toyota is known as Lean Six Sigma.
The proposition that silicon chips double in complexity every 18 months is referred to as => B) Moore's Law. The
purchase of Carroll's Foods for its hog-growing facilities by Smithfield Foods, the world's largest pork processor,
is an example of =>backward integration.
The purchasing strategy in which the purchasing company orders a particular part from several vendors is => multiple sourcing.
The purchasing strategy in which two suppliers are the sole suppliers of different parts, but are also the backup suppliers for
each other's parts is=> E) parallel sourcing.
The purpose of vertical growth is to =>take over a function previously provided by a supplier or by a distributor.
The radical redesign of business processes to achieve major gains in cost, service, or time is called reengineering. The
rate at which others can duplicate a firm's underlying resources, capabilities, or core competencies is called => C) imitability.
The ratio of total debt to total assets is known as => D) financial leverage.
The regional trade association composed of Argentina, Brazil, Uruguay, and Paraguay is called Mercosur
The relationship among the board of directors, top management, and shareholders is referred to as corporate governance.
The requirements of a board of directors vary significantly by country and by state; however, there is a developing consensus
as to what the major responsibilities should be. Which of the following is not one of the responsibilities?
becoming directly involved in managerial decisions
The role of the board of directors in reviewing, evaluating, and shaping corporate strategy is likely to be less active in the future. Answer: FALSE
The role of the board of directors in the strategic management of the corporation is likely to be more active in the future.
The S in S.W.O.T. stands for strengths
The Sarbanes-Oxley Act was designed to protect shareholders from the excesses and failed oversight of firms.
The SEC requires that the audit, nominating, and compensation committees be staffed entirely by outside directors. Answer: TRUE
The second step in value chain analysis is to => B) examine the linkages within each product's value chain. lOMoARcPSD| 36782889
The speed limit on all Ontario highways is 100 km/h. Recent debates have focused on whether this speed limit should be
lowered to the previous limit of 80 km/h. Both critics and proponents of lowering the speed limit have looked at the number
of traffic fatalities on all major Ontario highways before and after the increase to 100 km/h. The examination of traffic fatalities
on various highways illustrates the use of which research design? the multiple time-series design
The speed with which other firms can understand the relationship of resources and capabilities supporting a successful firm's
strategy is called => D) transparency.
The stability strategy is appropriate for all of the following circumstances EXCEPT=> appropriate when the industry is in decline.
The strategic audit is an all-inclusive list of critical questions needed for a detailed strategic analysis of any business. Answer: FALSE
The Strategic Management Model presents the following process of strategy formulation Mission -- Objectives -- Strategies -- Policies
The strategy implementation tool used to determine what actions are going to be taken, by whom, during what time frame,
and with what expected results is called a(n) => B) action plan.
The strategy that deals with product and process innovation and improvement is known as a(n) ________ strategy. =>R & D
The strategy which takes place in two basic phases of contraction and consolidation is=> turnaround.
The sum total of the activities and choices required for the execution of a strategic plan is known as strategy implementation.
The task environment includes those elements or groups within an organization's industry
The technique recommended by the text to organize an analysis of external strategic factors is called => B) EFAS The
technique that illustrates how management can match the external opportunities and threats with its strengths and
weaknesses to yield four sets of strategic alternatives is called a (an) => D) TOWS Matrix.
The technique used to help strategic managers choose among alternative choices by defining the task environment, developing
a set of various forecasts, and using pro forma financial statements is called =>corporate scenarios.
The term "corporate governance" refers to the relationship among the board of directors, top management, and the
shareholders in determining the direction and performance of the corporation. Answer: TRUE
The term "social responsibility," according to Archie Carroll, can be viewed as a combination
The term used in strategic implementation that describes a statement of activities or steps needed to accomplish a single-use
plan and whose use is to make the strategy action-oriented is program.
The term used in strategic implementation that describes a system of sequential steps or techniques that describe in
detail how a particular task or job is to be done is procedures.
The text authors note that the essence of strategy is => A) opportunity divided by capacity.
The theory that proposes organizations can and do adapt to changing conditions by imitating other successful organizations is known as institution theory
The theory which states that problems arise in corporations because top management no longer is willing to bear the brunt of
their decisions unless they own a substantial amount of stock in the corporation is called agency theory
The time horizon involved with regard to basic financial planning is usually one year
The two factors that tend to determine whether an industry will be primarily multidomestic or primarily global are (1) the
pressure for coordination within the MNCs operating in that industry and (2): => A) the pressure for local responsiveness
on the part of individual country markets.
The two general types of cooperative strategies are => C) strategic alliances and collusion.
The type of marketing strategy in which a company captures a larger share of an existing market for current products
through market saturation or market penetration or develops new markets for current products is called =>A) market development.
The type of strategy used to influence a corporation's key stakeholders in order to increase their support of corporate activities is =>political strategy.
The type of strategy which achieves corporate and business unit objectives and strategies by maximizing resource productivity is functional
The type of strategy which describes a company's overall direction in terms of its general attitude toward growth and the
management of its various businesses and product lines is corporate
The type of strategy which emphasizes the improvement of the competitive position of a corporation's products or services in
a particular industry or market segment served by a business unit is business. lOMoARcPSD| 36782889
The U.S. Clayton Act and the Banking Act of 1933 prohibit interlocking directorates by U.S. companies competing in the same industry
The U.S. major home appliance industry, including the companies of Maytag, Whirlpool, General Electric, and Electrolux, is
an example of an industry => C) that was once fragmented, but now is consolidated.
The variables structure, culture, and resources pertain to the internal environment
The vast majority of inside directors are from all of the following EXCEPT lower-level operating employee There
are three distinct phases in the development of a matrix structure. Which is the first phase to occur usually when a
new product line is being introduced? temporary cross functional task forces
There are three distinct phases in the development of a matrix structure. Which phase occurs when both the functional and
product structures become permanent in a true dual-authority structure? mature matrix
Theresa studied the impact of a publicity campaign on the number of women who visited a women’s shelter in Amestown.
The goal of the publicity campaign was to increase usage of the centre. For comparison purposes, Theresa measured the
change in usage over the same time period in a women’s shelter in Brantville, a town of a similar size some distance away.
There was no publicity campaign in Brantville. What design did Theresa use? nonequivalent control group
Those critical strengths and weaknesses that are likely to determine if a firm will be able to take advantage of opportunities
while avoiding threats are called => C) internal strategic factors.
Those directors who fail to act with due care and allow the corporation to be harmed may be held personally liable. Answer: TRUE
Those variables that can affect significantly the overall competitive positions of companies within any particular industry are
known as => D) key success factors.
Three trends are evident in logistics: outsourcing, the use of the Internet, and => A) centralization.
Through market research, corporations are able to practice ______ with various products or services so that managers can
discover what niches to seek, which new types of products to develop, and how to ensure that a company's many products
do not directly compete with one another => C) market segmentation Timing tactics answer the question => D) when a
company implements a strategy.
To be effective, strategic management must be a formal process Answer: FALSE
To ensure employees are gaining the appropriate mix of experience to prepare employees for future responsibilities, many
corporations move people from one job to another utilizing the technique of => C) job rotation
To succeed in a hypercompetitive industry, companies must be willing to => D) cannibalize their own successful product lines.
Top-down planning that emphasizes formal strategy formulation and leaves the implementation issues to lower management
levels is known as externally-oriented planning.
Transformational leaders transform organizations from market leaders in one industry to market leadership in another. Answer: FALSE
Treating people in the same way who are similar on relevant dimensions such as job Trend
extrapolation is => B) the extension of present trends into the future. U
Under Stage III, when various units of the company optimize its sales and profits without regard to the overall corporation,
the organization may be experiencing a crisis of control.
Under what circumstances does a DIRECT interlocking directorate exist? occurs when two firms share a director or when
an executive of one firm sits on the board of a second firm
Under what circumstances does an INDIRECT interlocking directorate exist? when two corporations have directors who
serve on the board of a third firm units to improve the competitive position of one or more business units is called A) vertical strategy. =>horizontal strategy.
Using the Golden Rule and never treating another human being simply as a means but always as an end are the categorical
imperatives of => D) Immanuel Kant.
Usually, the strategic planning staff is charged with supporting only top management in the strategic planning process. Answer: FALSE
Wal-Mart, McDonald's and Alamo are all examples of companies following which of Porter's competitive strategies? => B) cost leadership lOMoARcPSD| 36782889
What are the benefits of strategic management? The three most highly rated benefits of strategic management are: 1.
clearer sense of strategic vision for the organization 2. sharper focus on what is strategically important 3. improved
understanding of a rapidly changing environment.
What are the four main activities of a learning organization? The four main activities of a learning organization are solving
problems systematically, experimenting with new approaches, learning from their own experiences and past history as well
as from the experiences of others, and transferring knowledge quickly and efficiently throughout the organization.
What are the key environmental trends that are judged to have a medium to high probability of occurrence and a medium to
high probability of impact on the corporation? => A) external strategic factors
What are the responsibilities of the board of directors? Answer: The five board of directors' responsibilities are 1.
Effective board leadership, including the processes, makeup and output of the board 2. Strategy of the organization 3. Risk
vs. initiative and the overall risk profile of the organization 4. Succession planning for the board and top management team 5. Sustainability
What are the responsibilities of top management? Answer: Top management responsibilities involve getting things
accomplished through and with others to meet the corporate objectives. Top management's job is multidimensional and
oriented toward the welfare of the total organization. Specific top management tasks vary from firm-tofirm and developed
from an analysis of the mission, objectives, strategies, and key activities of the corporation. Tasks are typically divided
among the members of the top management team. The CEO, with the support of the rest of the top management team, must
successfully handle two primary responsibilities crucial to the effective strategic management of the corporation: (1)
provide executive leadership and a strategic vision, and (2) manage the strategic planning process.
What are the two distinct attributes of corporate culture? => D) intensity and integration
What are the two generic competitive strategies that Porter promotes as the means for outperforming other corporations in a
particular industry? => E) lower cost and differentiation
What characterizes the planning mode of strategy formulation? It involves the systematic gathering of appropriate
information for situation analysis, the generation of feasible alternative strategies, and the rational selection of the most appropriate strategy.
What did a study of 173 firms over a 25-year period reveal about CEOs of successful corporations? => B) They tended to
have the same functional specialization as the former CEO.
What differentiates quasi-experimental designs from true experimental designs? lack of random assignment of subjects to an
experimental and a control group
What does "MBO" stand for? => E) Management By Objectives
What is a set of business units or firms that "pursue similar strategies with similar
What is a strategic decision and what are its three characteristics? A strategic decision deals with the long-run future of
an entire organization. There are three characteristics of a strategic decision: rare, consequential, and directive. Strategic
decisions are unusual and typically have no precedent to follow. They commit substantial resources and demand a great
deal of commitment from people at all levels. And they set precedents for lesser decisions and future actions throughout the organization.
What is a triggering event? List some possible examples. A triggering event is something that acts as a stimulus for a
change in strategy. Some possible triggering events are a new CEO, an external intervention, a threat of a change in
ownership, a performance gap, and a strategic inflection point. What is another name for evaluation research? program evaluation
What is one example of administrative control negatively affecting a program evaluation? A program director refuses access to important case files.
What is the activity that occurs in Stage I of international development? The company exports, but trade is minor and handled by an export department.
What is the activity that occurs in the last stage of international development? The company operates in a global industry
and establishes worldwide HR, R&D, and financing strategies.
What is the additional phase in the organizational life cycle that may occur sometime during the maturity or decline stages? revival phase Answer: E
What is the advantage of creating new measures for variables in evaluation research? New variables provide greater possible
relevance and validity to the study.
What is the attribute of corporate culture that is the degree to which members of a unit accept the norms, values, or other
culture content associated with the unit? => C) intensity
What is the goal of applied research? to have some real-world effect lOMoARcPSD| 36782889
What percent of boards now have truly independent chairs? approximately 30%
What percentage of public corporations have periodic board meetings devoted primarily to the review of overall strategy? 74%
What term refers to the study of individual tasks in an attempt to make them more relevant to the company and to the employee(s)? job design
What two elements are combined in social indicators research? evaluation research and the analysis of existing data When
a board of directors is involved to a limited degree in the performance or review of selected key decisions, indicators, or
programs of management, the degree of involvement is referred to as nominal participation
When a company deals with obtaining raw materials, parts, and supplies needed to perform the operations function, the
company is developing its ________ strategy. =>purchasing
When a company determines how and where a product or service is to be manufactured, the level of vertical integration in
the production process, the deployment of physical resources, and relationships with suppliers, the company is developing
its ________ strategy. =>operations
When a company determines that a competency provides a competitive advantage, Barney refers to this issue as => A) value.
When a company exchanges 100 shares of stock worth $10 each for 50 shares worth $20 each, they are using =>reverse stock split.
When a company following a differentiation strategy ensures that the higher price it charges for its higher quality is not priced
too far above the price of the competition, the company is using the process of => C) cost proximity.
When a company spends a large amount of money on trade promotion in order to gain or hold shelf space in retail outlets, a
company is using a ________ strategy. =>push
When a company takes apart a competitor's product in order to find out how it works, this process is known as => C) reverse engineering
When a company's core competencies are superior to those of competitors, these are known as => B) distinctive competencies.
When a firm internally makes 100% of its key supplies and completely controls its distributors, this is known as => full integration.
When Admiral was acquired by Maytag Corporation, the Admiral employees were willing to accept the dominance of
Maytag's strong quality-oriented culture. This demonstrates which approach to managing culture? => D) assimilation
When an organization is evaluating its strategic position, which is NOT one of the strategic questions that an organization
must ask itself? How can functional and operational areas be improved?
When AT&T acquired NCR Corporation, which management strategy was employed in terms of culture? => C) deculturation
When Bristol-Myers Squibb purchased 17% of ImClone's common stock to gain access to a new drug, it was using which
type of integration? =>E) quasi integration
When calculating a "deserved pay" for CEOs based upon earnings growth and shareholder return, financial research firm
Obermatt found that there is no correlation in the 100 S&P companies between CEO pay and company performance.
When components are standardized and each machine functions like a job shop but is
When considering acceptable alternative strategies, the most important criterion is the ability of the proposed strategy to deal
with =>the specific strategic factors developed in the S.W.O.T. analysis.
When crafted correctly, an effective policy accomplished all but which of the following? (It forces trade-offs between
competing resource demands; It tests the strategic soundness of a particular action; It grants employees freedom to
experiment within its constraints; It sets boundaries within which employee must operate while granting them freedom
to experiment within those constraints.) =>All of the above
When Dell Computer's customers use the Internet to design their own computers, this demonstrates which manufacturing
strategy? =>mass customization
When examining the corporate value chain of a particular product or service, which one of the following is not one of the
primary activities that usually occur? => C) auditing and accounting
When General Motors considers making its own automotive parts, Delphi Automotive Supply Company would be concerned
with the => B) bargaining power of buyers.
When Hewlett Packard searches for executive leadership, all of the following represent its broad competency of achieving
results EXCEPT => B) increasing stock price.
When Intel opened four small-scale research facilities adjacent to universities to promote the cross-pollination of ideas, they
were using which approach to R & D? =>open innovation
When Kimberly-Clark introduced Huggies disposable diapers against Procter & Gamble's market leading Pampers, they were
using the offensive tactic known as a(n) => B) frontal assault. lOMoARcPSD| 36782889
When lower cost and differentiation strategies have a narrow focus on a market niche they are simply called => C) cost focus and differentiation focus.
When P & G, Kimberly-Clark, and Scott Paper compete with each other in varying
When Renault purchased a controlling interest in Japan's Nissan Motor Company, which approach to managing culture was
employed? => A) integration
When scientists concentrate on quality control and the development of design specifications and improved production
equipment, it is referred to as => C) engineering R&D.
When Smith & Wesson puts its name on others' products, like men's cologne, it is using which marketing strategy?=>line extension
When strategic managers have a willingness to reject unfamiliar as well as negative information it is referred to as => D) strategic myopia.
When the drive of the entrepreneur is no longer enough to keep the Stage I company from floundering, this type of crisis
is called a crisis of leadership.
When the people managing diversified product lines in a functionally structured corporation need more decisionmaking
freedom than top management is willing to delegate to them, this type of crisis is called a crisis of autonomy.
When the pressure for coordination is strong and the pressure for local responsiveness is weak for multinational corporations
within a particular industry, the industry will tend to become => A) global.
When the pressure for local responsiveness is strong and the pressure for coordination is weak for multinational corporations
in an industry, the industry will tend to become global. => C) multidomestic.
When the return on investment for each division of a corporation is greater than what the return would be if each division
were an independent business, that corporation is said to have achieved synergy.
When the value chains of two separate products or services share activities, such as the same marketing channels, in order to
reduce costs, this is an example of => A) economies of scope.
When there are highly automated assembly lines making one mass-produced product using little human labor, this setup is
called =>A) dedicated transfer lines.
When Yamaha entered the market with a broader range of pianos, keyboards, and other musical instruments, it was using
which offensive tactic? => C) encirclement
Where a change could begin refers to which aspect of the matrix of change sequence of execution
Which approach to decision-making is most useful when the environment is changing rapidly and when it is important to
build consensus and develop needed resources before committing the entire corporation to a specific strategy? logical incrementalism
Which approach to ethical behavior can encourage selfish behavior when a person defines a personal need or want as a "right"? => B) individual rights
Which barrier to entry is demonstrated by Microsoft's MS-DOS operating system? => C) cost disadvantages independent of size
Which barrier to entry uses brand identification to force new entrants to spend heavily to overcome existing customer loyalty?
=> D) product differentiation
Which barrier to entry uses cost advantages associated with large size? => E) economies of scale
Which country pioneered the use of worker participation on corporate boards? Germany
Which defensive tactic is used by Coca Cola with their offering of unprofitable noncarbonated beverages to keep competitors
off store shelves? => D) raise structural barriers
Which defensive tactic was used by Southwest Airlines when deliberately keeping their prices low and constantly investing
in cost-reducing measures? => B) lower the inducement for attack
Which environment was generally perceived by business people to be a given until the 20th century? => B) the natural environment
Which external growth strategy involves two or more corporations joining in a stock exchange and from which only one
corporation survives? =>mergers
Which external growth strategy was demonstrated when Procter & Gamble completely absorbed Gillette? =>acquisitions
Which is NOT one of the competencies Hewlett Packard uses for identifying potential executives? => E) Manage around the external environment.
Which is the largest of the current US generations? => A) Baby Boomers lOMoARcPSD| 36782889
Which kind of corporate strategy deals with the firm's overall orientation toward growth? => directional strategy Which
kind of corporate strategy deals with the manner in which the firm coordinates activities and transfers resources and
cultivates capabilities among product lines and business units?=> parenting strategy
Which method of managing disparate cultures involves a relatively balanced give-and-take of cultural and managerial
practices between the merger partners, and no strong imposition of cultural change on either company? => C) integration
Which method of managing disparate cultures involves one organization's domination over another willing organization? => D) assimilation
Which method of managing disparate cultures is characterized by a separation of the two companies' cultures because of their
differences? => A) separation
Which method of managing disparate cultures is the most common and most destructive method of dealing with two different
cultures because one company imposes its demands at the expense of another company's culture? => B) deculturation
Which of Porter's competitive strategies concentrates on seeking differentiation in a particular buyer group, product line
segment, or geographic market? => C) differentiation focus
Which of Porter's competitive strategies recommends that a company emphasize a particular buyer group or geographic market
and attempts to seek a cost advantage in its targeted segment? => E) cost focus
Which of the following best describes a simple structure? => C) This is most appropriate for small, entrepreneurdominated
companies with one or two product lines that operate in a small niche market, with employees acting as jackof-all trades.
Which of the following companies was cited by the text as an example of a company which does its best to consider its
responsibilities to its primary and secondary stakeholders when making strategic decisions? => C) Johnson & Johnson
Which of the following describes a turnaround strategy? =>Emphasizes improving operational efficiency and is
appropriate when a corporation's problems are pervasive, but not yet critical.
Which of the following describes a typical functional structure? => A) Employees tend to be specialists in the business
functions important to that industry such as manufacturing, marketing, finance, and human resources.
Which of the following is a function of corporate culture? => C) It conveys a sense of identity for employees.
Which of the following is a research study in which evaluation is performed using a control group that is similar to the
experimental group, but is not selected at random or specifically matched? nonequivalent control group design d. posttestonly control group design
Which of the following is a scientifically reliable way to obtain more objective descriptions of a social issue and the program
needed to address that social issue? needs assessment
Which of the following is a trend in corporate governance? Boards are establishing mandatory retirement ages for board members.
Which of the following is an example of a corporate strategy? Diversify product line to appeal to more people Which
of the following is an example of a global industry? => C) tires
Which of the following is an example of a mission statement? Develop and sell quality appliances worldwide Which
of the following is an example of a policy? Pay highest salaries to keep high quality employees
Which of the following is an example of a program? Reduce final assembly time to three days by having suppliers build plan sections.
Which of the following is an example of an objective? Increase sales by 10% over last year
Which of the following is NOT a characteristic of strategic decisions as mentioned in the text? continuous
Which of the following is not a function of corporate culture? => D) keeps people guessing about what to do next
Which of the following is NOT a goal of financial strategies? =>Institute a new product development plan to generate profit potential.
Which of the following is NOT a guideline proposed for successful downsizing? => C) Make across-the-board cuts.
Which of the following is not a key characteristic of transformational executive leaders? The CEO energizes the board
to formulate strategy. E) The CEO articulates a strategic vision for the corporation.
Which of the following is NOT a major force in the societal environment? => B) labor forces
Which of the following is NOT a part of strategy implementation? performance evaluation
Which of the following is not a primary activity of the value chain? => D) purchasing
Which of the following is NOT a principle of reengineering identified by Hammer? determines internal as well as external customers
Which of the following is NOT a reason companies or business units may form a strategic alliance? => D) To set prices in
the industry. E) To learn new capabilities. lOMoARcPSD| 36782889
Which of the following is NOT a reason why the growth strategy is so seductive? =>A large and growing firm attracts more acquisition offers.
Which of the following is not a responsibility of a research and development manager? => D) taking the design and
operationalizing the plan into mass production
Which of the following is not a support activity of the value chain? => D) marketing and sales
Which of the following is not a task of the board of directors in strategic management? to implement
Which of the following is not a trend in corporate governance expected to continue? Boards are getting larger. Which of
the following is NOT an advantage of being a first mover? => E) First movers may be able to keep R & D costs low by
imitating the technological advances of others.
Which of the following is NOT an element of the organization's task environment? => D) technological developments Which
of the following is NOT an essential ingredient of TQM? => C) Action planning.
Which of the following is NOT an offensive tactic? => D) raising structural barriers E) encirclement
Which of the following is NOT considered a strategic alliance success factor? => B) Operate with short term time horizon.
Which of the following is NOT defined by GE as one of the variables forming industry attractiveness? =>market share
Which of the following is NOT descriptive of "threat of substitute products or services?" => C) Identifying substitutes is
relatively easy since they look similar.
Which of the following is NOT descriptive of a high level of bargaining powers of buyers? => E) A buyer earns high profits
and is very insensitive to costs and service differences.
Which of the following is NOT descriptive of a high level of bargaining power of suppliers? => A) Substitutes are readily available.
Which of the following is NOT descriptive of a network structure? The network structure typically is located in a large,
single building or areas with many work projects in operation on the site.
Which of the following is NOT descriptive of external environmental scanning? => vE) Used to identify strengths and weaknesses.
Which of the following is NOT descriptive of intense rivalry among firms? => E) product offerings that are highly differentiated
Which of the following is not descriptive of interlocking directorates? Interlocking directorates are more common in small, family-owned companies.
Which of the following is NOT descriptive of the "threat of new entrants?" => D) Does not impact industry attractiveness.
Which of the following is NOT descriptive of the matrix structure? Although employees often work on one or more product
units, they maintain only one direct supervisor.
Which of the following is NOT descriptive of the purpose of Management By Objectives (MBO)? => B) MBO operates
independently and requires very little supervision or administration.
Which of the following is NOT identified as a key driver for strategic fit between alliance partners? Partners must
independently achieve their goals.
Which of the following is NOT one of the advantages of portfolio analysis? =>It provides the basis for impartial
objectivity from which to make decisions.
Which of the following is NOT one of the eight dimensions of quality? => D) value
Which of the following is NOT one of the eight sociocultural trends mentioned in the text? => D) Increasing food consumption.
Which of the following is not one of the examples provided as an organizational benefit received from being socially
responsible? => D) They are guaranteed to maximize resource productivity and reduce the average payback period of investment.
Which of the following is not one of the four major issues researched by the S&P Corporate Governance Scoring System?
research and development initiatives
Which of the following is not one of the four methods to improve the corporation's quality of work life? => C) improve the
responsiveness of management D) introduce innovative reward systems
Which of the following is not one of the four question areas Barney proposes in his VRIO framework used to evaluate a firm's
key resources? => B) durability
Which of the following is NOT one of the general strategic types? => A) initiators
Which of the following is NOT one of the limitations of portfolio analysis? =>It relies too heavily on objective judgments.
Which of the following is NOT one of the limitations of the BCG Growth Share Matrix? =>There are too many aspects of
overall competitive position included. lOMoARcPSD| 36782889
Which of the following is NOT one of the major outsourcing errors that should be avoided? => micromanaging the outsourced activity to maintain control
Which of the following is NOT one of the questions that development of a competitive strategy should raise? => D) Should
we compete by garnering political support of influential leaders?
Which of the following is NOT one of the risks of a cost leadership strategy? => B) Achieving excessive success causing jealousy amongst competitors.
Which of the following is NOT one of the risks of the focus strategy? => D) The exit of focusers from the industry. Which
of the following is NOT one the four triggering events listed in the text that are the stimulus for a strategic change? annual strategic planning conference
Which of the following is NOT true of a Stage I corporation? Planning tends to be long range and progressive.
Which of the following is the most common reason given by surveyed executives for
Which of the following is true in regards to competitive intelligence? => E) all of the above
Which of the following is true of defensive tactics? => E) all of the above
Which of the following practices was not identified by Black and Gregersen in companies that do a good job of managing
foreign assignments? => C) They offer assignments to those who want to return home early to share their experiences. Which
of the following provides an example of a transformational leader? A) Phil Knight at Nike has energized his corporation and
commanded respect. B) Louis Gerstner proposed a new vision for IBM to change its business model from computer hardware
to services. C) Microsoft CEO, Steve Ballmer, crawled under tables to plug in PC monitors and diagnosed problems with an
operating system. D) Verizon Communications CEO Ivan Seidenberg showed his faith in his people by letting his key
managers handle important projects and represent the company in public forums. E) all of the above
Which of the following regions is the most globalized region of the world in terms of boards of directors with most companies
having one or more non-national directors? Europe
Which of the following statements is not true concerning a corporate reputation? => E) Research shows no positive
relationship between corporate reputation and financial performance.
Which of the following statements is not true concerning secondary stakeholders? => E) Secondary stakeholders have
sufficient bargaining power to directly affect the corporation's activities.
Which of the following statements is not true of a strategic inflection point? A new CEO is an example of a strategic inflection point.
Which of the following statements is not true regarding the board of directors? More than half of all publicly traded
companies in the United States are incorporated in New York, requiring that the corporation be managed in accordance with NY state laws.
Which of the following statements is true concerning clusters? => A) The desire to build or upgrade a core competency is one
reason why entrepreneurial and other fast-growing firms often tend to locate close to their competitors.
Which of the following statements is true concerning the career life cycle for top executives? => E) all of the above (A) During
the early years of executives' tenures, they tend to experiment extensively with product lines to learn about their business. B)
It is possible that a current CEO may not be appropriate to implement a new strategy. C) The harvest stage occurs when
executives' accumulated knowledge allows them to reduce experimentation and increase knowledge. D) There is an inverted
U-shaped relationship between top executive tenure and the firm financial performance.)
Which of the following strategies was being used when Allied Corporation and Signal Companies formed Allied Signal? =>mergers
Which of the following terms best describes a system in which items are normally processed sequentially, but the work and
sequence of the process vary? => E) intermittent system Answer: E
Which offensive tactic advocates attacking a part of the market where the competitor is weak? => A) flanking maneuver
Which offensive tactic have the microbreweries used against major brewers? => E) guerilla warfare
Which offensive tactic proposes an indirect approach against the established competitor such as changing the rules of the game? => B) bypass attack
Which offensive tactic utilizes a head-to-head approach with the firm's competitor by matching every category of competition
from price to promotion to distribution channel? => D) frontal assault
Which one of the following best describes a conglomerate structure? => E) This is appropriate for a large corporation with
many product lines in several unrelated industries.
Which one of the following best describes a divisional structure? => B) This is most appropriate for large corporations
with many product lines in several related industries, with employees acting as functional specialists attempting to gain
synergy among divisional activities. lOMoARcPSD| 36782889
Which one of the following directional strategies is most frequently used in corporations? A) stability => growth
Which one of the following is an example of a narrow scope in a mission? computers (vs office equipment)
Which one of the following is included in the firm's societal environment? economic forces
Which one of the following is included in the firm's task environment? stockholders
Which one of the following is NOT a characteristic of a firm that has chosen a captive company strategy? =>Probably most
appropriate for a company with a strong competitive position in a growing industry.
Which one of the following is not descriptive of the experience curve? => A) It is very useful because it is consistent for
all organizations within a particular industry. B) It is used to estimate the production cost of a product produced by newly
introduced techniques or processes.
Which one of the following is NOT one of Malekzadeh and Nahavardi's four general methods of managing disparate cultures? => E) segmentation
Which one of the following is NOT one of the activities and techniques typically used in an assessment center to evaluate a
person's suitability for advancement? => D) IQ tests
Which one of the following is not one of the arguments against social responsibility as used by economist Milton Friedman?
=> B) Businesses can actually do very little in terms of social responsibility.
Which one of the following is NOT one of the characteristics possessed by companies that have made successful major culture
changes? => B) If the vision is difficult, the CEO immediately terminates the goal.
Which one of the following is NOT one of the questions that management should raise in their attempt to assess the
importance to the corporation of stakeholders' concerns? =>A) Which stakeholder group should be represented on the board of directors?
Which one of the following is NOT part of the process of industry scenarios? => C) Generate at least 15 scenarios.
Which one of the following is NOT true of risk? =>Managers who own a significant amount of stock in their firms are less
likely to engage in risk-taking actions.
Which one of the following was NOT one of the cultural dimensions that Hofstede found which could explain the success or
failure of certain management practices? => E) cultural diversity
Which societal force includes demographic trends? => E) sociocultural forces
Which statement below is NOT true of strategy implementation? Strategy implementation should be kept separate and
distinct from that of strategic management.
Which strategic orientation is demonstrated by companies that have a limited product line and focuses on improving the
efficiency of their existing operations? => E) defenders
Which strategy did Circuit City use in 2008 when it converted its retail stores to cash?=> liquidation
Which strategy did Delta choose when it acquired Northwest Airlines to obtain access to Northwest's Asian markets? =>A
horizontal integration strategy.
Which strategy has been used successfully by Yum! Brands to establish KFC and Pizza Hut restaurants across the globe?
=> B) licensing arrangement
Which strategy involves giving up management of the firm to the courts in return for some settlement of the corporation's obligations? =>bankruptcy
Which strategy is developed to pull together the various activities and competencies of each department so that corporate and
business unit performance improves and resource productivity is maximized? =>E) functional strategy
Which strategy is most appropriate as a temporary strategy to enable a corporation to consolidate its resources after prolonged
rapid growth in an industry now facing an uncertain future?=>pause/proceed with caution strategy
Which strategy is most appropriate for a company in an industry in which the future is expected to continue as an extension
of the present? => no change strategy
Which strategy might be the most likely when management realizes that the current industry is unattractive and that the
firm lacks outstanding skills that it could easily transfer to related products or services in other industries?=> conglomerate diversification
Which strategy specifies the firm's overall direction in terms of its general orientation towardgrowth, the industries or
markets in which it competes, and the manner in which it coordinates activities and transfers resources among business units? => corporate
Which structure is described as a "non-structure" by its virtual elimination of in-house business functions? network structure
Which structure is often called a virtual organization? network structure
Which structure simultaneously combines functional and product forms at the same level of the organization? lOMoARcPSD| 36782889 matrix structure
Which tactic deals with where a company implements a strategy? => B) a market location tactic
Which theory proposes that once an organization is successfully established in a particular environmental niche, it is unable
to adapt to changing conditions? population ecology
Which type of chief executive officer who is highly knowledgeable in other industries and can manage diverse product lines
would be appropriate for a corporation following a diversification strategy? => D) analytical portfolio manager
Which type of chief executive officer with a conservative style, a production or engineering background, and experience with
controlling budgets, capital expenditures, inventories, and standardization procedures would be appropriate for a corporation
following a stability strategy? => E) cautious profit planner
Which type of chief executive officer with a great deal of experience in that particular industry would be appropriate for a
corporation following a concentration strategy emphasizing vertical or horizontal growth? => B) dynamic industry expert
Which type of international industry manufactures and sells the same products with only minor adjustments made for
individual countries around the world? => B) global industry
Which type of pricing attempts to hasten market development and offers the pioneer the opportunity to utilize the experience
curve to gain market share and dominate the industry?=> penetration pricing
Which type of pricing takes advantage of the demand curve while the product is still novel and competitors are few? =>skim pricing
Which type of research frequently uses existing statistics? social indicators research
Which type of structure enables a corporation to centralize decision making along product lines and to reduce costs? product-group structure
Which type of structure enables a corporation to decentralize decision making to the local subsidiaries? geographic-area structure
Which type of structure was used by American Cyanamid to introduce and manage a similar line of products throughout the
world? product-group structure
Which type of structure was used by Nestle to tailor products to regional differences and to achieve regional coordination? geographic-area structure
While 97% of large U.S. corporations now use nominating committees to identify potential directors, this practice is not as
common in Europe. Answer: TRUE
While there are litigation and physical risks to companies as a result of climate change, there is no risk currently identified to
the company on its overall reputation. Answer: FALSE
Who said that the social responsibility of business is a "fundamentally subversive doctrine" and that the one social
responsibility of business is "to use its resources and engage in activities designed to increase its profits so long as it stays
within the rules of the game..."? => E) Milton Friedman
Who typically implements strategy in large, multi-industry corporations? everyone in the organization
Why is the use of the combined Chair/CEO role being increasingly criticized? Answer: The use of the combined
Chair/CEO role is increasingly criticized because of the potential for conflict of interest. The CEO is supposed to
concentrate on strategy, planning, external relations, and responsibility to the board. The Chairman's responsibility is to
ensure that the board and its committees perform their functions as stated in the board's charter. Critics of having one
person in both roles ask how the board can properly oversee top management if the Chairman is also a part of top management.
Willie is conducting a study of how effective a midnight basketball program is in reducing inner-city juvenile crime. He
measures the number of crimes reported to the police before and after the basketball program is instituted, and then he
compares his findings to the crime rates in another city of similar size that does not have such a program. What is the
experimental stimulus of Willie’s research? the midnight basketball program With conglomerate diversification, the focus is
on =>financial considerations. Y
You are conducting a study of how effective a skateboarding park and program are in reducing inner-city juvenile crime. You
measure the number of crimes reported to the police before and after the park and program have been instituted, and you
compare your findings to the crime rates in another city of similar size that does not have such a park or program. What sort
of evaluation design are you using? nonequivalent control group