lOMoARcPSD|47206521 lOMoARcPSD|47206521 — ..... 1 A ..... 2 B ..... 7 C ..... 8 D ..... 8 E......8 F......9 G......10 H......10 I......10 J......13 L......13 M......13 O......14 P......14 R......15 S......15 T......16 U......20 W......20 XXX......33 lOMoARcPSD|47206521
many project proposals as possible; Using a
percentage-of-sales method; Budgeting for R&D about what —
1. ________ advantages refer to the benefits a firm may
achieve by entering a new market or developing a new
product or service prior to rival firms. ⇒ FIRST MOVER
2. ________ are quantitative criteria commonly used to
evaluate strategies. ⇒ FINANCIAL RATIOS.
3. ________ can reveal the demographic characteristics of
an organization's customers. ⇒ CUSTOMER PROFILING.
4. ________ exemplifies the complexity of relationships
among the functional areas of business. ⇒ FINANCIAL RATIO ANALYSIS.
5. ________ includes the set of shared values, beliefs,
attitudes, customs, norms, rites, rituals, personalities,
heroes, and heroines that describe a firm. ⇒ CULTURE.
6. ________ is a commonly used approach to determine R&D
budget allocations. ⇒ ALL OF THE ABOVE (Financing as
9. ________ is the unique way an organization does
business. ⇒ CULTURE.
10. ________ management deals with inputs,
transformations, and outputs that vary across industries
and markets. ⇒ PRODUCTION AND OPERATIONS.
11. ________ plans can be defined as alternative plans that
competitors spend; Deciding how many successful new products
can be put into effect if certain key events DO NOT
are needed and working backward to estimate)
occur as expected. ⇒ CONTINGENCY.
7. ________ is NOT a basic mission of a competitive intelligence
12. ________ ties all business functions together and
program. ⇒ Identifying industry executives who could be hired
provides the basis for all managerial decisions. ⇒ by the firm INFORMATION.
8. ________ is NOT a strategy-implementation activity. ⇒
TAKING CORRECTIVE ACTIONS 1 lOMoARcPSD|47206521
13. _______ organizations require more elaborate and
individual's or organization's ability and capacity to
detailed strategy-evaluation systems than ________ ones,
adapt? ⇒ FUTURE SHOCK.
because it is more difficult to coordinate efforts among
19. According to Campbell and Yeung, what is/are most
different divisions and functional areas. ⇒ LARGE;
likely associated with behavior and the present? ⇒ SMALL. MISSION
20. According to Drucker, a business' mission is the A
foundation for all of the following EXCEPT ⇒ employee wage rates
14. A ________ integration strategy is used by firms to gain
control or ownership of suppliers. ⇒ BACKWARD
21. According to Drucker, what is the best time to ask "What
do we want to become?" and "What is our business?"?
15. A ________ strategy aims to target a new market where
competition is NOT yet present. ⇒ BLUE OCEAN
⇒ When the firm is successful
16. A(n) ________ with expertise in developing vision and
22. According to Drucker, which question is synonymous
mission statements and with unbiased views, can at times
with asking "What is our mission?"? ⇒ What is our
manage the process more effectively than an internal business?
group or committee of managers. ⇒ OUTSIDE
23. According to I/O theorists, which of the following FACILITATOR
contributes LEAST to firm's performance? ⇒ INTERNAL RESOURCES
17. A benefit of using projected balance sheets and income
statements is that ⇒ an organization can compute
24. According to McGinnis, a mission statement should be
projected financial ratios under various scenarios.
all of the following EXCEPT ⇒ it should be broad
18. According to author Alvin Toffler, what occurs when the
enough to include all ventures.
nature, types, and speed of changes overpower an 2 lOMoARcPSD|47206521
25. According to Porter, what is usually the most powerful of
military operations, of maneuvering forces into the most
the five competitive forces? ⇒ Rivalry among competing
advantageous position prior to actual engagement with firms
the enemy." ⇒ STRATEGY
26. According to Porter, which strategy offers products or
32. A change strategy that attempts to convince people that
services to a niche group of customers at the lowest price
the change is to their personal advantage is ⇒
available on the market? ⇒ FOCUS - LOW COST RATIONAL.
27. According to researchers, all of the following encourage
33. A concern in matching managers with strategy is
individuals to accept change EXCEPT ⇒ being
that jobs have relatively ________ responsibilities,
overpowered by the nature, types, and speed of changes.
while people are ________ in their personal
28. According to the comprehensive strategic-management
development ⇒ STATIC; DYNAMIC.
model, which step immediately follows the establishment
34. A conservative rule of thumb is to establish a business's
of long-term objectives? ⇒ Generating, evaluating, and
worth as annual profit. the firm's current ⇒ FIVE selecting strategies TIMES.
29. According to the Grand Strategy Matrix, organizations
35. A divisional structure by geographic area is most
in which quadrant have a strong competitive position but
appropriate when ⇒ organizations have similar
are in a slow-growth industry? ⇒ IV
branch facilities located in widely dispersed areas.
30. According to the Grand Strategy Matrix, which strategy
36. A divisional structure by product is most effective when
is recommended for a firm with rapid market growth
⇒ ALL OF THE ABOVE (Special emphasis needs to be
and a strong competitive position? ⇒ MARKET
placed on specific products; An organization offers few PENETRATION.
products; An organization's products or services differ
31. According to Webster's New World Dictionary, ________
substantially; special emphasis needs to be placed on
is "the science of planning and directing large-scale specific services). 3 lOMoARcPSD|47206521
37. A firm's strengths that CANNOT be easily matched or
44. All of the following are cooperative arrangements
imitated by competitors are called ⇒ DISTINCTIVE
EXCEPT ⇒ MARKETING PLANS. COMPETENCIES.
45. All of the following are examples of marketing decisions
38. A firm uses information technology to reconfigure work,
that may require policies EXCEPT ⇒ TO BE A
jobs, and processes. As a result, cost, quality, service, and
MARKET LEADER OR FOLLOWER.
speed are improved. What has the firm engaged in? ⇒
46. All of the following are limitations of the Boston REENGINEERING.
Consulting Group (BCG) Matrix EXCEPT ⇒ THE
39. After a draft mission statement has been developed, it is
MATRIX REQUIRES AT LEAST THREE YEARS
important to ⇒ request modifications, additions, and WORTH OF DATA. deletions.
47. All of the following are mentioned as places where vision
40. After completing an EPS/EBIT analysis, what conclusions
and mission statements can often be found EXCEPT ⇒
would you make if the debt line is above the stock line SEC REPORTS.
throughout the range of EBIT on the graph? ⇒
48. All of the following are political, governmental, and legal
DEBT APPEARS TO BE THE BEST FINANCING
variables that can represent key opportunities or threats ALTERNATIVE.
to organizations EXCEPT ⇒ population changes by race,
41. A good mission statement has ⇒ A CUSTOMER
age, sex, and level of affluence. ORIENTATION.
49. All of the following are principles of good organizational
42. All of the following are basic activities of management
governance, as established by BusinessWeek , EXCEPT
EXCEPT ⇒ CONSOLIDATING.
⇒ AT LEAST THREE DIRECTORS ARE CURRENT OR
43. All of the following are basic functions of marketing
FORMER COMPANY EXECUTIVES.
EXCEPT ⇒ VALUE CHAIN ANALYSIS. 4 lOMoARcPSD|47206521
50. All of the following are reasons strategy evaluation is more
56. All of these are Richard Rumelt's criteria to evaluate a
difficult today EXCEPT ⇒ the increasing time span for
strategy EXCEPT ⇒ DISTINCTIVENESS.
which planning can be done with any degree of certainty.
57. All stakeholders' claims on an organization ________
51. All of the following are reasons to be completely open as
pursued with equal emphasis. ⇒ CANNOT BE
opposed to secretive with the strategy process EXCEPT
58. All stakeholders ⇒ have claims and concerns about an
⇒ openness limits rival firms from imitating or
organization, but these claims and concerns vary.
duplicating the firm's strategies.
59. Already the European Union and 113 nations including
52. All of the following situations are conducive to market
Australia, Mexico, and Canada have ________ IFRS
development EXCEPT ⇒ when new channels of
rules. ⇒ ADOPTED OR SOON PLAN TO USE.
distribution are expensive and unreliable.
60. Although a firm positioned in Quadrant ________ of the
53. All of the following statements regarding the recent trend
Grand Strategy Matrix is in a growing industry, it is
in Japan of switching from seniority-based pay to
unable to compete effectively and needs to determine
performance-based approaches are true EXCEPT ⇒
why the firm's current approach is ineffective and how to
THE SWITCH IS BOOSTING EMPLOYEE MORALE.
best change to improve competitiveness. ⇒ II
54. All of the following utility statements are relevant in
61. An absence of conflict can signal ________ within an
developing a mission statement EXCEPT ⇒ Do not offer
organization ⇒ INDIFFERENCE AND APATHY.
me ideas, emotions, ambience, feelings, and benefits.
62. An effective information management system ________ Offer me things.
information in such a way that it answers important
55. All of these are pitfalls an organization should avoid in
operating and strategic questions. ⇒ ALL OF THE
strategic planning EXCEPT ⇒ using plans as a standard
ABOVE (collects; codes; stores; synthesizes)
for measuring performance.
63. An effective means of implementing forward integration
is through ⇒ FRANCHISING. 5 lOMoARcPSD|47206521
64. An effective mission statement does all of the following
72. An overly general mission statement that ________ could
EXCEPT ⇒ it is static in orientation.
be dysfunctional. ⇒ does not exclude any strategy
65. An effective mission statement should do all of the alternatives
following EXCEPT ⇒ include monetary amounts,
73. Any object, act, event, quality, or relation used to convey
numbers, percentages and ratios
meaning is known as a ⇒ SYMBOL.
66. An effective way to gain commitment and achieve desired
74. Anything that a firm does especially well compared to
results is to ⇒ SHIFT FROM SPECIFIC TO GENERAL
rival firms is referred to as ⇒ COMPETITIVE ISSUES AND CONCERNS. ADVANTAGE.
67. An important activity in ________ is taking corrective
75. A pasta manufacturer's purchase of some pet food
action. ⇒ STRATEGY EVALUATION
brands is an example of ⇒ UNRELATED
68. Annually, ________ businesses in the United States fail. DIVERSIFICATION. ⇒ MORE THAN 100,000
76. A pattern of behavior developed by an organization as it
69. An organization's present strategies, objectives, vision,
learns to cope with its problems of external adaptation
and mission, coupled with the external and internal audit
and internal integration, and that has worked well
information, provide a basis for ⇒ evaluating structural
enough to be considered valid and to be taught to new
strategies, but not generating those strategies.
members as the correct way to perceive, think, and feel is
70. An organization's vision statement ⇒ answers the
called ⇒ ORGANIZATIONAL CULTURE.
question: "What do we want to become?"
77. A resource is valuable if it is rare, hard to imitate, or ⇒
71. An organization should take a(n) ________ approach in
NOT EASILY SUBSTITUTABLE.
its industry. ⇒ proactive rather than a reactive
78. A revised ________ should focus on changes in the
organization's management, marketing, finance and
accounting, production and operations, research and 6 lOMoARcPSD|47206521
development (R&D), and management information B
systems (MIS) strengths and weaknesses. ⇒ IFE
86. Backward integration is effective in all of these cases MATRIX.
EXCEPT ⇒ when the advantages of stable prices are not
79. A revised ________ should indicate how effective a firm's particularly important.
strategies have been in response to key opportunities and
87. Bankruptcy ⇒ can be an effective type of retrenchment
threats. ⇒ EFE MATRIX. strategy.
80. As indicated in the strategic-management model, a clear
88. Because of the success of the iPad and the iPhone, Apple
________ is needed before alternative strategies can be
has tremendous brand recognition. Brand recognition is
formulated and implemented. ⇒ mission statement
one of Apple's ⇒ STRENGTHS
81. A standardized set of behaviors used to manage anxieties
89. Both business and military organizations must ________
is called a ⇒ RITUAL.
and ________ to be successful. ⇒ ADAPT TO CHANGE;
82. A strong ________ heritage underlies the study of CONSTANTLY IMPROVE
strategic management. ⇒ MILITARY
90. Both the Internal-External (IE) and Boston Consulting
83. A systematic and ethical process for gathering and
Group (BCG) Matrices are called ________ matrices. ⇒
analyzing information about the competition's activities PORTFOLIO.
and general trends to further a business' own goals is
91. Business or military success is ⇒ the product of both
called ⇒ COMPETITIVE INTELLIGENCE
attention to changing external and internal conditions
84. A total weighted score of ________ in an External Factor
and the insightful adaptations to those conditions.
Evaluation (EFE) Matrix indicates that an organization
is responding in an outstanding way to existing
opportunities and threats in its industry. ⇒ 4.0
85. A weak dollar means ⇒ higher exports and lower imports. 7 lOMoARcPSD|47206521 C
99. Corrective actions are almost always ________ except
when external and internal factors have NOT
92. Changes in which of the following can significantly affect
firms? ⇒ ALL OF THE ABOVE (Patent laws; Antitrust
significantly changed and the firm is progressing
legislation; Tax rates; Lobbying activities)
satisfactorily toward achieving stated objectives. ⇒ NEEDED.
93. Collecting and evaluating information on competitors is
essential for successful ⇒ STRATEGY FORMULATION. 100.
Corrective actions are expected to ⇒ strengthen an
organization's competitive position in its industry.
94. Company websites that sell products they produce 101.
Corrective action should do all of the following
directly to consumers are examples of which type of
EXCEPT ⇒ AVOID EXTERNAL OPPORTUNITIES.
strategy? ⇒ FORWARD INTEGRATION
95. Competition in virtually all industries is ⇒ INTENSE. D
96. Competitive advantage normally is the result of
superiority in resources, skills, or ⇒ POSITION. 102.
Distribution includes ⇒ WAREHOUSING.
97. Considerable time and effort should be devoted to 103.
During what stage of strategic management is a firm's
assuring objectives are well conceived because they
specific internal strengths and weaknesses determined?
represent the basis for ⇒ ALL OF THE ABOVE ⇒ FORMULATION
(Monitoring progress toward long-term objectives;
Establishing divisional priorities; Allocating resources; E Evaluating managers). 104.
Effective and carefully planned mission statements ⇒
98. Controls need to be ________ rather than ________. ⇒
require infrequent major changes, but are always subject
action-oriented; information-oriented. to revision. 8 lOMoARcPSD|47206521 105.
Effective mission statements can vary in ⇒ ALL OF 111.
Firms located in which quadrant of the Grand
THE ABOVE (length, content, format, specificity.)
Strategy Matrix are in an excellent strategic position? ⇒ 106.
Establishing objectives is a ⇒ DECENTRALIZED I ACTIVITY. 112.
For companies located in Quadrant III of the Grand 107.
Explain the concept of matching in the strategy
Strategy Matrix, the first strategy recommended is ⇒
formulation framework. ⇒ Stage 2 of the strategy-
EXTENSIVE COST AND ASSET REDUCTION.
formulation analytical framework is called the matching 113.
Formal statements of organizational philosophy,
stage. It focuses on generating feasible alternative
charters, creeds, materials used for recruitment and
strategies by aligning key external and internal factors.
selection, and socialization help an organization ⇒ LINK 108.
External audits attempt to identify key variables that CULTURE TO STRATEGY.
offer ________ responses. ⇒ ACTIONABLE 114.
For many firms a key decision with great bearing on
Research and Development (R&D) spending is whether F
to be a "first mover" or a ⇒ “LATE FOLLOWER” 109.
Financial objectives involve all of the following 115.
For upper-level executives, ________ is the major
EXCEPT ⇒ LARGER MARKET SHARE.
variable used for compensation incentives ⇒ STOCK 110.
Financial ratios are used to compare a firm's PRICE.
performance over different time periods, to compare the 116.
Forward integration and backward integration are
firm's performance to industry averages, and to compare
sometimes collectively referred to as ⇒ VERTICAL
a firm's performance with A) overall business standards. INTEGRATION.
⇒ THE PERFORMANCE OF COMPETITORS. 117.
Forward integration would be an appropriate
strategy for which of the following types of divisions in
the Boston Consulting Group (BCG) Matrix? ⇒ STAR. 9 lOMoARcPSD|47206521 118.
Four basic approaches exist to determine R&D budget 122.
How do line managers become "owners" of the
allocations. What are these approaches? ⇒ The four
strategy? ⇒ By involvement in the strategic-management
commonly-used approaches to determining R&D budget process
allocations are: 1) financing as many project proposals as 123.
How many cells are in a SWOT Matrix? ⇒ NINE.
possible; 2) using a percentage-of-sales method; 124.
How should financial budgets be thought of? ⇒ As a
3) budgeting about the same amount competitors spend
method for obtaining the most productive and profitable
for R&D; and 4) deciding how many successful new
use of an organization's resources.
products are needed and working backward to estimate I
the required R&D investment. 125.
If a firm incurs a loss during a particular year, or if G
the firm had positive net income but paid out dividends 119.
Generally, external opportunities and threats are ⇒
more than the net income, its retained earnings for that
uncontrollable by a single organization.
year will most likely be ⇒ A NEGATIVE NUMBER. 120.
Good mission statements identify the ________ of a 126.
If a merger or acquisition is NOT desired by both
firm's products to its customers. ⇒ UTILITY
parties, it is called a ________ ⇒ HOSTILE TAKEOVER. 127.
If an initial stock issuance is at or under $1 million, H
what is the average total cost paid to lawyers,
accountants and underwriters? ⇒ 25%. 121.
Hawaii, California, and ________ already have no
majority race or ethnic group. ⇒ NEW MEXICO 128.
If Gap opens five stores for the first time in China, this
is an example of which type of strategy? ⇒ MARKET DEVELOPMENT 10 lOMoARcPSD|47206521 129.
If success for one organizational department means
periods; 2) Comparing the firm's performance to that of
failure for another department, then strategies may be ⇒
competitors'; and 3) Comparing the firm's performance INCONSISTENT. to industry averages. 130.
If suppliers are unreliable or too costly, which of 136.
Information collection, retrieval, and storage can be
these strategies may be appropriate? ⇒ BACKWARD
used to create competitive advantages in ways such as ⇒ INTEGRATION
ALL OF THE ABOVE (cross-selling to customers; 131.
If you discover during the course of strategy
monitoring suppliers; keeping managers and employees
evaluation that major changes have occurred in the
informed; coordinating activities among divisions).
firm's internal strategic position, you should ⇒ TAKE 137.
In general, what happens to American goods in CORRECTIVE ACTIONS.
overseas markets when there is a strong dollar? ⇒ They 132.
In 2013, ________ of CEO compensation was are more expensive.
directly associated with the performance of the firm, 138.
In most industries, the major costs of producing a
rather than salary ⇒ OVER 50%.
product or service are incurred within A) marketing. ⇒ 133.
Increased education and diversity of the workforce at OPERATIONS.
all levels are reasons why ⇒ middle-level and lower-level 139.
In order to appeal to diverse stakeholders, an
managers, and even non-managers, should be involved in
effective mission statement should be ⇒
the strategic planning process. RECONCILIATORY. 134.
In developing a mission statement, arousing emotion 140.
In preparing projected statements, to project cost of ⇒ IS IMPORTANT.
goods sold and the expense items in the income 135.
In evaluating strategies, what three critical
statement, which of these methods is recommended? ⇒
comparisons are made using financial ratios? ⇒ 1)
PERCENTAGE-OF-SALES METHOD.
Comparing the firm's performance over different time 11 lOMoARcPSD|47206521 141.
In projected financial statements, what is used as a 149.
In the BCG Matrix, a division with a high relative
plug figure? ⇒ THE CASH ACCOUNT.
market share position in a low-growth industry can be 142.
In recent times, ________ perhaps has instituted the
described as a ⇒ CASH COW.
most protectionist measures by raising tariffs on most 150.
In the BCG Matrix, when a division of an
imports and subsidizing its own exports. ⇒ RUSSIA
organization has a high relative market share andis in a 143.
In recent times, which of the following has largely
fast-growing industry, it is called a ⇒ STAR.
refrained from protectionist measures? ⇒ THE UNITED 151.
In the Boston Consulting Group (BCG) Matrix, how STATES
would a division with a low relative market share 144.
In recent years, the speedy flow of information
position in a high growth industry be described? ⇒
through technology has ⇒ created a borderless world QUESTION MARK.
with global competitors, customers, and citizens. 152.
In the Boston Consulting Group (BCG) Matrix, 145.
In Rumelt's work, the final broad test of strategy is its
which element represents the industry growth rate in ⇒ FEASIBILITY.
sales, measured in percentage terms? ⇒ Y - axis. 146.
Intensity of competition ________ in lower-return 153.
In the Boston Consulting Group (BCG) Matrix,
industries. ⇒ IS HIGHEST
which strategy would be most appropriate for a division 147.
Internal ________ are controllable activities in an
classified as a Dog? ⇒ RETRENCHMENT.
organization that are performed especially well. ⇒ 154.
In the context of a balance sheet, goodwill represents STRENGTHS
⇒ a premium paid over the book value of an acquisition. 148.
International financial reporting standards (IFRS) 155.
In the low earnings period, too much in the capital
comprise approximately ________ pages. ⇒ 5,000.
structure of an organization can endanger stockholders'
return and jeopardize company survival ⇒ DEBT. 12 lOMoARcPSD|47206521 156.
In the process of developing a mission statement, it is L
important to involve ⇒ as many managers as possible. 163.
Life-directing attitudes that serve as behavioral 157.
In the SPACE analysis, what does a (+6, +3) strategy
guidelines are called ⇒ VALUES.
profile portray? ⇒ A STRONG INDUSTRY POSITION. 164.
Long-term objectives are needed at which level(s) in an 158.
In which phase of strategic management are annual
organization? ⇒ FUNCTIONAL, DIVISIONAL, AND
objectives especially important? ⇒ IMPLEMENTATION CORPORATE 159.
In which phase of strategic management are long- 165.
Long-term objectives should be all of the following
term objectives especially important? ⇒
EXCEPT ⇒ CONTINUALLY CHANGING FORMULATION 166.
Looking for a vacant niche helps a company 160.
In which situation would horizontal integration be an
determine ⇒ THE BEST PLACE TO POSITION A
especially effective strategy? ⇒ When an organization can PRODUCT.
gain monopolistic characteristics in a particular area or
region without being challenged by the federal government M
for "tending substantially" to reduce competition 161.
It is predicted that the United States will have no 167.
Many economists say the current rash of trade
racial or ethnic majorities by the year ⇒ 2075.
constraints will make it ________ for global economic growth. ⇒ HARDER J 168.
Matching of which factors would allow factories to
produce desirable levels without extra shifts, overtime or 162.
Just-in-time describes ⇒ DELIVERING MATERIALS
subcontracting? ⇒ SUPPLY AND DEMAND.
JUST AS THEY ARE NEEDED. 169.
Mergers and acquisitions are created for all of the
following reasons EXCEPT to ⇒ shift company profits to 13 lOMoARcPSD|47206521
the United States from countries with low corporate tax 177.
Multidimensional scaling is used to determine ⇒ rates. PRODUCT POSITIONING. 170.
Metaphors are ⇒ shorthand of words used to capture O
a vision or to reinforce old or new values. 171.
Military strategy is based on an assumption of 178.
One difference between a Competitive Profile Matrix
________, whereas business strategy is based on an
(CPM) and an External Factor Evaluation (EFE) is that
assumption of ________. ⇒ CONFLICT; COMPETITION
⇒ CPM includes both internal and external issues. 172.
Modern organizational realities demand that 179.
Organizational resources include all of the following
employees demonstrate greater ⇒ ALL OF THE
EXCEPT ⇒ EMPLOYEE TRAINING.
ABOVE (flexibility; innovation; creativity; initiative) 180.
Organizations using strategic management are 173.
More than ________ businesses in the United States
generally ________ than those that DO NOT. ⇒ MORE
fail annually. ⇒ 100,000 PROFITABLE 174.
Most organizations can afford to pursue ________
corporate-level strategies at any given time ⇒ ONLY A P FEW. 181.
Particular challenges or decisions that face all 175.
Most quantitative criteria are geared to ________
strategists today include ⇒ ALL OF THE ABOVE
objectives rather than to ________ objectives. ⇒
(deciding whether the process should be more an art or a ANNUAL; LONG-TERM.
science; deciding whether strategies should be visible or 176.
Most strategy literature advocates that strategic
hidden from stakeholders.; deciding whether the process
management is ⇒ MORE OF A SCIENCE THAN AN
should be more top-down or bottom-up in their firms.) ART. 14 lOMoARcPSD|47206521 182.
Perhaps the most dramatic new market segmentation 188.
Retained earnings is obtained by subtracting ⇒ any
strategy is the ⇒ TARGETING OF REGIONAL TASTES.
dividends to be paid for that year from net income. 183.
Pricing is one of the basic functions of ⇒ 189.
Retrenchment would be an effective strategy when an MARKETING.
organization ⇒ is plagued by inefficiency, low 184.
Projected financial analysis is an important strategy-
profitability, poor employee morale, and pressure from
implementation technique because ⇒ it allows an
stockholders to improve performance.
organization to examine the expected results of various actions and approaches. S 190.
Selling includes all of these marketing activities R
EXCEPT ⇒ CUSTOMER ANALYSIS. 185.
R&D employees and managers perform all of the 191.
Sometimes ________ is used to refer to strategic
following tasks EXCEPT ⇒ RESEARCHING
formulation, implementation and evaluation, with RESOURCE AVAILABILITY.
________ referring only to strategic formulation. ⇒ 186.
Research suggests that which of the following is one of
strategic management; strategic planning
the best ways to overcome individuals' resistance to 192.
Specific results an organization seeks to achieve in
change in strategy evaluation? ⇒ PARTICIPATION.
pursuing its basic mission are ⇒ OBJECTIVES 187.
Resistance to change can manifest itself through ⇒ 193.
Staffing involves all of these activities EXCEPT ⇒
ALL OF THE ABOVE (absenteeism; sabotaging ANALYZING CUSTOMERS.
production machines; filing unfounded grievances; 194.
Strategic management enables an organization to
unwillingness to cooperate).
________, instead of just responding to threats in its
business environment. ⇒ BE PROACTIVE 15 lOMoARcPSD|47206521 195.
Strategic management focuses on integrating 202.
Success today ⇒ IS NO GUARANTEE OF SUCCESS
functional areas to achieve organizational success. Which TOMORROW.
of the following is NOT one of the functional areas that is 203.
Superior strategy formulation and implementation
the focus of strategic management? ⇒
________ an opponent's superiority in numbers and ORGANIZATIONAL BEHAVIOR
resources. ⇒ CAN OVERCOME 196.
Strategic management offers all of the following
benefits EXCEPT ⇒ increased resistance to change. T 197.
Strategy analysis and choice largely involves making 204.
Terms such as objectives, mission, strengths, and
________ decisions based on ________information ⇒
weaknesses were first formulated to address problems ⇒ SUBJECTIVE; OBJECTIVE. ON THE BATTLEFIELD. 198.
Strategy-evaluation activities should ideally be 205.
The ________ decision is the allocation and
performed ⇒ ON A CONTINUOUS BASIS.
reallocation of capital and resources to projects, 199.
Strategy evaluation is necessary because ⇒ internal
products, assets, and divisions of an organization. ⇒
and external factors are constantly changing. INVESTMENT. 200.
Subdividing a market into distinct subsets of 206.
The act of oversight and direction for an organization
customers according to their needs and the way they buy
is referred to as ⇒ GOVERNANCE.
and use a product or service is known as ⇒ MARKET 207.
The attitude of U.S. firms toward research and SEGMENTATION.
development is best described by which of the following? 201.
Successful strategists minimize their own political
⇒ The veil of secrecy is being lifted, resulting in more
exposure on issues that are ________and in collaboration.
circumstances where opposition from major power
centers is likely ⇒ HIGHLY CONTROVERSIAL. 16 lOMoARcPSD|47206521 208.
The Boston Consulting Group (BCG) Matrix is
mission statement? "We believe our first responsibility is
designed specifically to enhance which typeof firm's
to the doctors, nurses, patients, mothers, and all others
efforts to formulate strategies? ⇒ COMPANIES WITH
who use our products and services." ⇒ CUSTOMERS MORE THAN ONE DIVISION. 216.
The form of bankruptcy in which all the 209.
The critical success factors in a Competitive Profile
organization's assets are sold in parts for their tangible
Matrix and EFE Matrix include ⇒ both internal and
worth is ⇒ CHAPTER 7 external issues. 217.
The Fortune 50 includes all of the following EXCEPT 210.
The critiqued mission statements of PepsiCo and
⇒ THE LARGEST HOSPITALS.
Royal Caribbean; both lacked the following 218.
The general public is especially interested in
component(s). ⇒ CUSTOMER
________, whereas stockholders are more interested in 211.
The fact that Apple has no manufacturing facilities of
________. ⇒ social responsibility; profitability
its own ⇒ has enabled it to remain financially lean. 219.
The goal of strategic management is to ⇒ achieve and 212.
The Family Farmer Bankruptcy Act of 1986 created
maintain competitive advantage.
which of the major types of bankruptcy? ⇒ CHAPTER 220.
The historical trend of people moving from ________ 12
has dramatically slowed. ⇒ the Northeast to the Sunbelt 213.
The Financial Accounting Standard Board (FASB) 221.
The historical trend of people moving from ________
Rule 142 deals with ⇒ GOODWILL
has dramatically slowed. ⇒ the Northeast to the Sunbelt 214.
The first step in performing projected financial analysis 222.
The ideal length of a vision statement is ⇒ ONE
is to ⇒ PREPARE THE PROJECTED INCOME SENTENCE. STATEMENT. 223.
The IFE Matrix should be ________ in 215.
The following excerpt from a mission statement
multidivisional firms. ⇒ Constructed for each
illustrates which of the nine essential components of a autonomous division. 17 lOMoARcPSD|47206521 224.
The Industrial Organization (I/O) approach to
activity? ⇒ Asking managers to read selected articles
competitive advantage advocates that external factors are
about vision and mission statements
________ internal factors in a firm achieving competitive 231.
The process of performing an external audit needs to
advantage. ⇒ more important than
include ⇒ as many managers and employees as possible. 225.
The initial step to implementing value chain analysis 232.
The process of performing an external audit should
is ⇒ dividing a firm's operations into specific activities or
involve ⇒ as many managers and employees as possible. business processes. 233.
The process whereby a firm determines the costs 226.
The initial step to implementing value chain analysis
associated with organizational activities from purchasing
is ⇒ dividing a firm's operations into specific activities or
raw materials to manufacturing products to marketing business processes.
those products is called ⇒ VALUE CHAIN ANALYSIS. 227.
The investor relations pages of a company website 234.
The process whereby a firm determines the costs
________ information about a firm. ⇒ is a good place to
associated with organizational activities from purchasing start to find
raw materials to manufacturing products to marketing 228.
The match an organization makes between its
those products is called ⇒ VALUE CHAIN ANALYSIS.
internal resources and skills and the opportunities and 235.
The purpose of a mission statement is to declare all of
risks created by its external factors can be defined as ⇒
these EXCEPT ⇒ an annual financial plan. STRATEGY. 236.
The recommended length of an effective mission 229.
The potential for creative growth in an organization can
statement is ________ words. ⇒ LESS THAN 150.
be limited by ⇒ a mission statement that is too specific. 237.
There is a dramatic shift in mass retailing to ⇒ 230.
The process of developing a vision and mission
operating stores with less square footage.
statement often includes which of these as the first 238.
The Robinson-Patman Act affects a company's ⇒ PRICING. 18