Q&A Hero

Q: In most cases, at least 500 words are required to effectively state a mission statement.

Q: The percentage of persons age 65 or older exceeds 20 percent in Japan, Italy, and A) Germany. B) the United States. C) France. D) China. E) all of the above

Q: Which variable would be considered part of the "place" element of the marketing mix? A) Product line B) Service level C) Personal selling D) Sales territory E) Discounts and allowances

Q: One positive feature of QSPM is that it does not require intuitive judgments and educated assumptions.

Q: A limitation of financial ratios is the fact that they are based on accounting data.

Q: It is unusual for the claims and concerns of a company's stakeholders to vary or conflict.

Q: Firms should strive to engage in social activities that A) have economic benefits. B) have no economic benefits. C) are detrimental to economic growth. D) drain financial resources. E) garner goodwill only, not profits.

Q: Which variable would be considered part of the "product" element of the marketing mix? A) Advertising B) Packaging C) Payment terms D) Inventory levels and location E) Publicity

Q: A positive feature of QSPM is that sets of strategies can be examined sequentially or simultaneously.

Q: Financial ratio analysis really should not go beyond the actual calculation and interpretation of ratios.

Q: Excess specificity can stifle creativity in the formulation of an acceptable mission or purpose.

Q: According to Fortune magazine, which of the following was among the least admired companies for social responsibility in 2011? A) Statoil B) Ferrovial C) General Electric D) Walt Disney E) None of the above

Q: Matching which factors would allow factories to produce desirable levels without extra shifts, overtime, or subcontracting? A) markets and competitors B) competition and positioning C) customer behavior and positioning D) supply and demand E) segments and competitors

Q: Total attractiveness scores are defined as the sum of the attractiveness scores in a given column of the QSPM and are computed in the second step of the QSPM.

Q: The total assets turnover ratio is calculated by dividing sales by fixed assets.

Q: The relative attention an organization will devote to meeting the claims of various stakeholders is indicated in a good mission statement.

Q: Which of the following was among the most admired companies for social responsibility in 2011 according to Fortune magazine? A) Carlsberg B) Asahi Breweries C) Dillard's D) Walt Disney E) Kirin Holdings

Q: Perhaps the most dramatic new market segmentation strategy is the A) targeting of regional tastes. B) focusing on universal product. C) preference of international over domestic sales. D) treatment of industrial markets. E) none of the above

Q: Step 1 of a QSPM assigns weights to each key external and internal factor.

Q: Leverage ratios measure a firm's ability to meet maturing short-term obligations.

Q: Mission statements cannot be stated with too high a level of specificity.

Q: Social policy can best be defined as A) the responsibilities a firm has to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups. B) a document providing behavioral guidelines that cover daily activities and decisions within a firm. C) an SEC mandate to report any unethical behavior. D) the legal requirement to reveal how a firm's operations impact the natural environment. E) mandatory technical standards that result in an EMS.

Q: Why is market segmentation an important variable in the strategy-implementation process? A) Company strategies do not require increased sales through new markets and products. B) It allows a firm to operate with no resources. C) It directly affects marketing mix variables. D) It allows a firm to minimize per-unit profits and per-segment sales. E) All of the above

Q: To objectively evaluate feasible alternative strategies identified in Stage 2, the QSPM uses input information derived from Stage 1.

Q: Activity ratios measure how effectively a firm is using its resources.

Q: Stakeholders both affect and are affected by an organization's strategic decisions.

Q: According to the text, the first social responsibility of any business is to A) make enough profit to cover the costs of the future, because if this is not achieved then no other social responsibility can be met. B) avoid laying off employees so as to protect the employees' livelihood, even if that decision may force the firm to liquidate. C) engage in social activities that have no economic benefits, to avoid the appearance of a public relations gimmick. D) offer courses and training in environmental management. E) none of the above

Q: Which of the following variables are NOT directly affected by market segmentation? A) Product B) Place C) Process D) Promotion E) Price

Q: According to the Grand Strategy Matrix, Quadrant III organizations compete in rapid-growth industries and have weak competitive positions.

Q: S&P expects that more than 50 percent of S&P 500 firms will raise their dividend payout in 2011.

Q: Individuals who own stock in a corporation are considered stakeholders.

Q: According to a recent Wall Street Journal article, ________ percent of all firms sampled had no restrictions on boss-subordinate love affairs at work. A) 5 B) 13 C) 24 D) 39 E) 80

Q: Why is market segmentation an important variable in strategy implementation? A) It allows a small firm to compete successfully with a large firm. B) It allows a firm to operate with limited resources. C) Mass production, mass distribution, and mass advertising are not always required. D) Market segmentation decisions directly affect marketing mix variables. E) All of the above

Q: According to the Grand Strategy Matrix, when a Quadrant I firm is too heavily committed to a single product, then related diversification may reduce the risks associated with a narrow product line.

Q: The idea that paying dividends results in a higher stock price is a myth.

Q: Stakeholders of an organization include stockholders, customers and creditors, but not competitors.

Q: The U.S. Justice Department is ________ bribery. A) increasing its prosecutions of B) relaxing its opposition to and regulations against C) employing a "don't ask, don't tell" philosophy toward D) indifferent to E) accepting of different cultural attitudes toward

Q: Subdividing a market into distinct subsets of customers according to their needs and buying habits is known as A) market penetration. B) product diversification. C) market segregation. D) market segmentation. E) positioning.

Q: The Grand Strategy Matrix is based on two evaluative dimensions, market share and market growth.

Q: Dividend decisions concern issues such as the percentage of earnings paid to stockholders, the stability of dividends paid over time, and the repurchase or issuance of stock.

Q: A mission statement should be broad enough to reconcile differences among an organization's various stakeholders.

Q: Under the U.S. Dodd-Frank Act, employees are encouraged to report possible acts of bribery and are awarded ________ percent of any financial sanctions against companies. A) 5-10 B) 10-30 C) 25-30 D) 30-40 E) 40-60

Q: Which two variables rank as marketing's most important contributions to strategic management? A) Diversification and budgeting. B) Marketing penetration and competition. C) Competition and collaboration. D) Product development and market development. E) Market segmentation and product positioning.

Q: The IE Matrix can be divided into three major regions that have different strategy implications: grow and build, hold and maintain, and harvest or divest.

Q: Financial ratios are not applicable to nonprofit organizations.

Q: A mission statement is usually just a simple statement of specific details.

Q: Bribery involves A) bestowing a gift to influence the recipient's conduct. B) requiring employees to report any unethical violations they discover or see in the firm. C) prohibiting love affairs between bosses and their subordinates. D) encouraging firms to play a role in curing society of its ills. E) forcing companies to take responsibility for the impact their actions have on society.

Q: All of the following are examples of marketing decisions that may require policies EXCEPT A) to be a market leader or follower B) how to make advertisements more interactive to be more effective C) to offer a complete or limited warranty D) to use heavy, light, or no TV advertising E) to use exclusive dealerships or multiple channels of distribution

Q: On the x-axis of the IE Matrix, an internal factor evaluation score of 2.5 represents a weak internal position.

Q: According to James Van Horne the basic decision areas of finance are: the investment decision, the financing decision, and the dividend decision.

Q: When a company has been successful the question "What is our business?" becomes unnecessary.

Q: Firms can align ethical and strategic decision making by A) omitting ethical considerations from long-term planning. B) excluding ethical decision making from the performance appraisal process. C) discouraging whistle-blowing. D) monitoring departmental and corporate performance regarding ethical issues. E) all of the above

Q: What level of management is directly affected by strategy implementation? A) Plant managers B) Sales managers C) Project managers D) Division managers E) All of the above

Q: The BCG Matrix requires more information about the divisions than the IE Matrix.

Q: A cost/benefit analysis is an appraisal of the costs, benefits, and risks associated with marketing decisions.

Q: A mission statement promotes a sense of shared expectations among all levels and generations of employees.

Q: Ethics training programs should contain which of the following? A) Messages from the CEO or business owner emphasizing ethical business practices B) The development and discussion of codes of ethics C) Procedures for discussing unethical behavior D) Procedures for reporting unethical behavior E) All of the above

Q: What percent of strategies formulated are successfully implemented? A) Less than 10 percent B) About 30 percent C) Between 40 and 60 percent D) Approximately 66 percent E) More than 80 percent

Q: Both IE and BCG Matrices are called portfolio matrices.

Q: Marketing research is the systematic gathering, recording and analyzing, of data about problems relating to the marketing of goods and services.

Q: Mission statements provide managers with a unity of direction that transcends individual, parochial and transitory needs by promoting a sense of shared expectations among all levels and generations of employees.

Q: More and more firms believe that ethics training and an ethics culture A) are socially irresponsible. B) are admirable but damage a firm's competitive positioning. C) are costly and provide no practical benefit to the company. D) create strategic advantage. E) can tarnish the reputation of a firm.

Q: With information technology, in some cases it is possible to do away with the workplace by allowing employees to work at home or anywhere, anytime.

Q: Having no temporal qualities, the BCG Matrix is a snapshot of an organization at a given point in time.

Q: Distribution becomes especially important when a firm is striving to implement a product development or backward integration strategy.

Q: In multidivisional organizations, each division should develop a mission statement consistent with and supportive of the corporate mission.

Q: Responsibility for encouraging ethical decision making and ensuring ethical behavior in a firm lies with A) only a firm's strategists. B) only a firm's managers. C) only a firm's shareholders. D) both a firm's strategists and its managers. E) neither a firm's strategists nor its managers.

Q: Increased costs are a disadvantage of a good information system.

Q: The BCG Matrix does not reflect whether or not various divisions or their industries are growing over time.

Q: Most producers today sell their goods directly to consumers.

Q: According to Drucker, the most important time for a company to develop mission and vision statements is when the company is experiencing financial difficulty.

Q: ________ refers to policies that require employees to report any unethical violations they discover or see in the firm. A) Whistle-blowing B) Bribery C) Adultery D) Sustainability E) Stewardship

Q: The process of strategic management is facilitated immensely in firms that have an effective information system.

Q: Viewing every business as either a Star, Cash Cow, Dog, or Question Mark is an oversimplification.

Q: Five major stakeholders that affect pricing decisions are consumers, governments, suppliers, distributors, and competitors.

Q: Mission statements are sometimes difficult to derive because top management may disagree over company objectives.

Q: Which of the following is NOT a way that companies can help create an ethical culture in their organization? A) Outlining ethical expectations B) Giving examples of ethical situations that commonly occur in their businesses C) Providing code-of-conduct manuals D) Creating interactive exercises that pose hypothetical ethical dilemmas E) Discouraging whistle-blowing

Q: A current trend in R&D management involves the lifting of the veil of secrecy whereby firms, even major competitors, are joining forces to develop new products.

Q: The major benefit of the BCG Matrix is that it draws attention to the cash flow, investment characteristics, and needs of an organization's various divisions.

Q: Test marketing is used more frequently by industrial companies than consumer goods companies.