Q&A Hero

Q: The ________ decision is the allocation and reallocation of capital and resources to projects, products, assets, and divisions of an organization. A) investment B) dividend C) financing D) restructuring E) benchmark

Q: An overly general mission statement that ________ could be dysfunctional. A) does not exclude any strategy alternatives B) encourages management creativity C) excludes all diversification D) endorses the consideration of feasible potential strategies E) allows for the generation and consideration of a range of alternative objectives

Q: Trade barriers are one of the unique and diverse risks that face multinational corporations.

Q: Explain the important issues involved in deciding whether to go public, i.e., a private firm considering becoming a public firm. Include cost estimates, advantages and disadvantages.

Q: Which analytical tool determines the relative attractiveness of various strategies based on the extent to which key external and internal critical success factors are capitalized upon or improved? A) BCG Matrix B) SPACE Matrix C) SWOT Matrix D) IE Matrix E) QSPM

Q: Which of the following is NOT a key question that can reveal internal strengths and weaknesses of the marketing department? A) Does the firm have an effective sales organization? B) Is our product quality good? C) Are markets segmented effectively? D) Are the firm's products and services priced appropriately? E) Does the firm have good liquidity?

Q: The potential for creative growth in an organization can be limited by A) an overemphasis on stakeholders. B) not enough emphasis on stakeholders. C) a mission statement that is too general. D) a mission statement that is too specific. E) a mission statement that is too dynamic.

Q: Geographic distance and cultural differences are two of the factors that can make communication between domestic headquarters and overseas operations difficult.

Q: Identify and describe three approaches for determining a business' worth.

Q: The top row of a QSPM consists of alternative strategies derived from all of the following EXCEPT A) Grand Strategy Matrix. B) BCG Matrix. C) SPACE Matrix. D) CPM Matrix E) IE Matrix.

Q: Distribution includes A) customer analysis. B) pricing. C) warehousing. D) advertising. E) test marketing.

Q: A good mission statement has A) an employee orientation. B) a customer orientation. C) a shareholder orientation. D) an environmental orientation. E) a profit orientation.

Q: More time and effort are required to identify and evaluate external trends and events in domestic corporations than in multinational ones.

Q: Explain how to perform a projected financial analysis.

Q: Which matrix is included in the decision stage of the strategy formulation framework? A) Internal Factor Evaluation Matrix B) Quantitative Strategic Planning Matrix C) Boston Consulting Group Matrix D) Grand Strategy Matrix E) Strategic Position and Action Evaluation Matrix

Q: The Robinson-Patman Act affects a company's A) pricing. B) product/service planning. C) customer analysis. D) marketing research. E) distribution.

Q: All stakeholders A) have claims and concerns about an organization, but these claims and concerns vary. B) have the same claims and concerns about an organization. C) have ownership rights in an organization. D) have the same voting rights in an organization. E) have environmental concerns as their top priority.

Q: While multinational corporations face almost limitless social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive opportunities and threats, the number and complexity of these factors do not dramatically increase with the number of products produced and the number of geographic areas served.

Q: Describe the considerations of EPS/EBIT analysis.

Q: According to the Grand Strategy Matrix, organizations in which quadrant have a strong competitive position but are in a slow-growth industry? A) I B) II C) III D) IV E) V

Q: What marketing function includes test marketing? A) Selling products/services B) Pricing C) Customer analysis D) Product/service planning E) Distribution

Q: Which group would be classified as stakeholders? A) Governments B) Creditors C) Suppliers D) Employees E) All of the above

Q: The social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive opportunities and threats that face a multinational corporation are almost limitless.

Q: Name five examples of finance/accounting decisions that may require policies.

Q: Although Quadrant ________ companies are growing, according to the Grand Strategy Matrix they are unable to compete effectively, and they need to determine why the firm's current approach is ineffective and how the company can best change to improve its competitiveness. A) I B) II C) III D) IV E) V

Q: One aspect of ads in a recession is that they A) take more direct aim at competitors. B) do not mention competitors. C) allude to competitors in a positive light. D) are less combative. E) none of the above

Q: All stakeholders' claims on an organization ________ pursued with equal emphasis. A) cannot be B) should always be C) are required to be D) must ideally be E) can usually be

Q: The strategic-management process is more complex for international firms due to more variables and relationships.

Q: What are the five steps required for effective product positioning? Give an example of a product-positioning matrix for an organization of your choice.

Q: For companies located in Quadrant III of the Grand Strategy Matrix, the first strategy recommended is A) extensive cost and asset reduction. B) asset expansion. C) employee expansion. D) immediate liquidation of assets. E) divestiture.

Q: Selling includes all of these marketing activities EXCEPT A) advertising B) dealer relations C) customer analysis D) publicity E) sales promotion

Q: Name five examples of marketing decisions that may require policies.

Q: What is the best time to develop a mission statement? A) Before a business is opened B) When the firm is successful C) When the firm is in financial trouble D) When the firm is in legal trouble E) When the firm encounters competition

Q: What analytical tool has four quadrants based on two dimensions: competitive position and market growth? A) Competitive Profile Matrix B) Internal-External Matrix C) SPACE Matrix D) Grand Strategy Matrix E) QSPM

Q: The strategic-management process is conceptually different for multinational firms than for purely domestic firms.

Q: What are the marketing mix component variables? Give some examples of each.

Q: Opportunity analysis is one of the basic functions of A) marketing. B) finance/accounting. C) computer information systems. D) production/operations. E) research and development.

Q: According to the Grand Strategy Matrix, which strategy is recommended for a firm with rapid market growth and a strong competitive position? A) Market penetration B) Unrelated diversification C) Joint venture D) Retrenchment E) Liquidation

Q: All of the following are basic functions of marketing EXCEPT A) value chain analysis B) customer analysis C) product and service planning D) pricing E) distribution

Q: Business Week reports that firms using mission statements have a ________ percent higher return on certain financial measures than those without such statements. A) 10 B) 15 C) 30 D) 45 E) 50

Q: When developing a mission statement, what is needed before people can focus on specific strategy formulation activities? A) Negotiation B) Compromise C) Eventual agreement D) A and B only E) All of the above

Q: Organizations that conduct business operations across national borders are called international firms or multinational corporations.

Q: It is an exaggeration to say that in an industry that is global, the riskiest possible posture is to remain a domestic competitor.

Q: Although there are many marketing variables that impact the success or failure of strategy-implementation efforts, two variables are central to the process. What are these variables? Discuss why they are so important.

Q: Firms located in which quadrant of the Grand Strategy Matrix are in an excellent strategic position? A) I B) II C) III D) IV E) V

Q: Information collection, retrieval, and storage can be used to create competitive advantages in ways such as A) cross-selling to customers. B) monitoring suppliers. C) keeping managers and employees informed. D) coordinating activities among divisions. E) all of the above

Q: ________ can reveal the demographic characteristics of an organization's customers. A) Customer profiling B) Test marketing C) Market development D) The vision statement E) Telemarketing

Q: Which of the following analytical tools consists of a nine-cell matrix? A) BCG Matrix B) Competitive Profile Matrix C) SPACE Matrix D) Grand Strategy Matrix E) Internal-External Matrix

Q: King and Cleland recommend that organizations carefully develop a written mission statement for all of the following reasons EXCEPT A) to provide a basis for allocating organizational resources B) to establish a general tone or organizational climate C) to ensure unanimity of purpose within the organization D) to ensure a command-and-control structure E) to facilitate the translation of objectives into a work structure involving the assignment of tasks to responsible elements within the organization

Q: All of the following are key questions that can reveal internal strengths and weaknesses in the management department EXCEPT A) Is the organization's structure appropriate? B) Are reward and control mechanisms effective? C) Are the organization's products positioned well against competing products? D) Does the firm use strategic-management concepts? E) Do managers delegate authority well?

Q: One of the dangers of remaining a local competitor is that more aggressive companies will use their global growth to capture economies of scale and learning.

Q: A study by Rarick and Vitton found that firms with a formalized mission statement have ________ the average return on shareholders' equity than those firms without a formalized mission statement. A) one-quarter B) half C) twice D) three times E) five times

Q: In today's global climate, many companies may find it difficult to survive by relying solely on domestic markets.

Q: The attitude of U.S. firms toward research and development is best described by which of the following? A) The veil of secrecy is being lifted, resulting in more collaboration. B) Firms are more cutthroat than ever and less cooperative with each other. C) Firms are less interested in working with universities. D) Firms are spending less in total research and development expenditures. E) Firms are less involved with research consortia than ever.

Q: All of the following are limitations of the BCG Matrix EXCEPT A) Viewing every business as a star, cash cow, dog or question mark can be an oversimplification. B) The Matrix requires at least three years worth of data. C) The Matrix does not reflect divisional or industry growth over time. D) The Matrix does not allow a company to be classified as somewhere in between two categories. E) Variables such as size of market and competitive advantages are not considered in the Matrix.

Q: The first step in the controlling function of management is to A) take corrective actions. B) restrict the number of breaks employees take. C) evaluate expense reports. D) establish performance standards. E) measure individual and organizational performance.

Q: According to Campbell and Yeung, what is/are most likely associated with behavior and the present? A) Mission B) Values C) Long-term objectives D) Vision E) Possibilities

Q: Mass communication and high technology have led to highly individualized and distinct patterns of consumption in diverse cultures worldwide.

Q: Forward integration would be an appropriate strategy for which of the following types of divisions in the BCG Matrix? A) Dogs B) Failures C) Question Marks D) Cat E) Star

Q: Which of the following is NOT a major approach to R&D? A) To be a pioneer B) To be an innovative imitator C) To be a low-cost producer by mass-producing products similar to but less expensive than products recently introduced D) To be a liquidator E) All of the above are major approaches to R&D.

Q: Staffing involves all of these activities EXCEPT A) recruiting B) transferring C) customer analysis D) managing union relations E) training and developing

Q: In the BCG Matrix, a division that has a low relative market share position and competes in a slow-growth industry is referred to as a A) Dog. B) Question Mark. C) Star. D) Cash Cow. E) Cowboy.

Q: After a draft mission statement has been developed, it is important to A) ask managers to read several articles about mission statements as background information. B) vote on the mission statement. C) ask managers to prepare a mission statement for the organization. D) ask managers to seek support for the mission statement from their subordinates. E) request modifications, additions, and deletions to the mission statement.

Q: Which function of management includes all of those activities undertaken to ensure actual operations conform to planned operations? A) Planning B) Organizing C) Motivating D) Staffing E) Controlling

Q: To see and appreciate the world from the perspective of others has become a matter of survival for business.

Q: What can be used to promote unbiased views and to manage the development of the mission statement more effectively? A) An internal group B) A committee of managers C) Command-and-control D) Surveys E) An outside facilitator

Q: If an initial stock issuance is at or under $1 million, what is the average total cost paid to lawyers, accountants and underwriters? A) 5 percent B) 10 percent C) 25 percent D) 50 percent E) 40 percent

Q: As long as the price and quality of a firm's products and services are competitive on a local basis, they have nothing to worry about.

Q: In the BCG Matrix, which strategy would be most appropriate for a division classified as a Dog? A) Market penetration B) Market development C) Product development D) Retrenchment E) Forward integration

Q: ________, perhaps the most important word in management, is a major component in motivation. A) Forecasting B) Organizational structure C) Recruiting D) Management development E) Communication

Q: R&D employees and managers perform all of the following tasks EXCEPT A) transferring complex technology B) altering products to particular tastes and specifications C) researching resource availability D) adapting processes to local markets E) adjusting process to local raw materials

Q: The process of developing a vision and mission statement often includes which of these as the first activity? A) Requesting that managers modify the current document B) Asking managers to read selected articles about mission statements C) Asking managers to prepare a mission statement for the organization D) Having a brainstorming session on whether the organization should have a mission statement E) Merging several mission statements into one document

Q: A conservative rule of thumb is to establish a business' worth as ________ the firm's current annual profit. A) twice B) three times C) five times D) ten times E) fifteen times

Q: In the BCG Matrix, a division with a high relative market share position in a low-growth industry can be described as a A) Star. B) Cash Cow. C) Question Mark. D) Dog. E) Failure.

Q: Which of the following is the process of influencing people to accomplish specific objectives? A) Staffing B) Motivating C) Planning D) Controlling E) Organizing

Q: In the process of developing a mission statement, it is important to involve A) as few managers as possible. B) as many managers as possible. C) upper-level management only. D) lower-level management only. E) the board of directors only.

Q: Discuss ISO 14000 and ISO 14001.

Q: In the context of a balance sheet, goodwill represents A) a premium paid over the book value of an acquisition. B) the value attached to a firm's reputation. C) the excess of assets over liabilities. D) the value associated with benefits from environmental programs. E) the excess of current assets over liabilities.

Q: In the BCG Matrix, when a division of an organization has a high relative market share and is in a fast-growing industry, it is called a A) Star. B) Cash Cow. C) Cat. D) Question Mark. E) Dog.

Q: Which function of management is concerned with span of control and chain of command? A) Planning B) Organizing C) Controlling D) Staffing E) Motivating