Q&A Hero

Q: If an organization chooses to have both a mission and a vision, the mission statement should be established first.

Q: Alternative-energy firms are struggling to find new customers, since the federal stimulus package failed to include adding alternative-energy infrastructure.

Q: The most common type of financial budget is the capital budget.

Q: When completing the matching stage of the strategy-formulation framework, the SWOT Matrix needs to be completed before the SPACE Matrix.

Q: While interesting, organizational culture does not significantly affect business decisions.

Q: When developing a vision statement, input should be received from as many managers as possible.

Q: Firms can continue to get away with placing "green" terminology on their products and labels because there are still no legal or generally accepted definitions of terms like "organic," "green," "safe," or "earth-friendly."

Q: Limiting an organization's expenditures is the primary purpose of financial budgets.

Q: Good intuitive judgment is always needed to determine appropriate weights and ratings in the input stage matrices.

Q: Established companies are coming to realize that their next generation of potential customers spends more time online than watching TV.

Q: The mission statement should be short preferably one sentence.

Q: Some ways in which firm's are working to be more environmentally responsible include using solar power and selling organic and environmentally friendly products.

Q: A financial budget is a document that details how funds will be obtained and spent for a specified period of time.

Q: The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix, the Strategic Position and Action Evaluation (SPACE) Matrix, the Boston Consulting Group (BCG) Matrix, the Internal-External (IE) Matrix, and the Grand Strategy Matrix are included in stage two of the strategy-formulation framework.

Q: At Google the culture is very rigid, while in contrast the culture at Proctor & Gamble is very informal.

Q: The foundation for development of a comprehensive mission statement is provided by a clear vision.

Q: Employee wellness cannot be a part of sustainability.

Q: The Sarbanes-Oxley Act of 2002 has eliminated the problem of firms inflating their financial projections, so stakeholders need not worry about the financial projections of different companies.

Q: Stage 2 in the strategy-formulation framework involves the Quantitative Strategic Planning Matrix.

Q: An organization's culture compares to an individual's personality in the sense that no two organizations have the same culture and no two individuals have the same personality.

Q: Although it is important for companies to have a clearly defined mission statement, research has shown that less than 50% of all companies have used a mission statement in the previous five years.

Q: Sustainability reports reveal how a firm's operations impact the natural environment.

Q: The cash account is used as the plug figure in projected balance sheets.

Q: The first stage of the strategy-formulation framework is the input stage, and it is directly followed by the decision stage.

Q: The RBV theory asserts that it is advantageous for a firm to pursue a strategy that is not currently being implemented by any competing firm.

Q: Vision and mission statements can often be found in the front of annual reports.

Q: California is the nation's second-largest producer of solar energy.

Q: The percentage-of-sales method should be used for projecting the cost of goods sold and the expense items in the income statements.

Q: It is vital that strategists always consider all feasible alternatives that could benefit the firm.

Q: Resources that are common are never considered valuable.

Q: New Jersey's goal is to obtain 3 percent of its electricity from the sun and 12 percent from offshore wind by 2020.

Q: When performing projected financial analysis, the balance sheet should be prepared before the income statement.

Q: Alternative strategies don't come out of the blue; they are derived from the firm's vision, mission, and objectives.

Q: Linkages between a firm's culture and strategies often determine success.

Q: What are some external opportunities and threats that face many firms?

Q: While it is socially responsible to be a good steward of the natural environment, doing so will not enable a firm to gain competitive advantage.

Q: A projected financial analysis can be used to forecast the impact of various implementation decisions.

Q: An organization's present strategies, objectives and mission provide a basis for generating and evaluating feasible alternative strategies, coupled with the external and internal audit information.

Q: For a resource to be valuable, it must be either rare, hard to imitate, or not easily sustainable.

Q: Compare and contrast business and military strategy.

Q: Companies such as Wal-Mart are now monitoring not only the prices its vendors offer for products, but also how those products are made in terms of environmental practices.

Q: In times of depressed stock prices, stock issuances often prove to be the most suitable alternative for obtaining capital.

Q: A ritual is a standardized, detailed set of techniques and behaviors used to manage anxieties.

Q: Discuss the value of integrating intuition and analysis.

Q: Unlike the U.S., Japan has no law against discrimination based on age.

Q: When additional stock is issued to finance implementation of strategy, ownership and control of the enterprise are strengthened.

Q: Name at least six reasons for performing mergers or acquisitions.

Q: Metaphors are handed-down narratives of some wonderful event that are based on history but have been embellished with fictional detail.

Q: Discuss the importance of the implementation phase of strategic management.

Q: Japan is providing incentives for its elderly to work until ages 65 - 75.

Q: A reason for concern over the dilution of company stock is a possible hostile takeover.

Q: Discuss four common problems that cause joint ventures to fail.

Q: Cultural products include values, beliefs, stories, and language.

Q: What are the pitfalls in strategic planning that management in an organization should watch out for or avoid? Identify any five pitfalls.

Q: Like the United States, Japan is eager to rely on large-scale immigration to bolster its workforce.

Q: An EPS/EBIT chart can be constructed to determine the break-even point, where one financing alternative becomes more attractive than another.

Q: What are the characteristics of a firm that is successfully pursuing a cost leadership strategy?

Q: The subtle, elusive and largely unconscious forces that shape the workplace are captured by the organizational culture.

Q: Give at least seven reasons why some firms do no strategic planning.

Q: The percentage of persons age 65 or older will reach 20 percent in the United States in 2018.

Q: Additional capital is often required for successful strategy implementation.

Q: Discuss Michael Porter's five generic strategies.

Q: The basic premise of the research-based view is that the mix, type, amount, and nature of a firm's internal resources should be considered first and foremost in devising strategies that can lead to sustainable competitive advantage.

Q: List 10 major benefits of strategic management, as stated by Greenley.

Q: The percentage of persons age 65 or older exceeds 20 percent in Japan, Italy, and Germany.

Q: In low earning periods, too much debt in the capital structure of an organization can endanger stockholders' returns and jeopardize company survival.

Q: Compare and contrast the five types of bankruptcy: Chapters 7, 9, 11, 12 and 13.

Q: Proponents of the resource-based view argue that external factors are more important than internal factors for a firm in achieving and sustaining competitive advantage.

Q: Discuss some forces that influence the formality of strategic-management systems.

Q: Orphan drugs offer pharmaceutical companies no economic incentive for profitable development and distribution.

Q: Besides net profit from operations and the sale of assets, two basic sources of funds for an ongoing enterprise are debt and equity.

Q: List some guidelines for when related diversification would be a particularly good strategy to pursue.

Q: An internal audit task force of managers could be charged with determining a specific number (usually 10 to 20) of the most important strengths and weaknesses.

Q: Define and discuss the differences between vision and mission statements.

Q: Firms should strive to engage in social activities that have no economic benefits, to avoid their being viewed as public relations ploys.

Q: Return on assets is the most widely used technique for determining whether debt, stock, or a combination of debt and stock is the best alternative for raising capital to implement strategies.

Q: Define and give examples of the two diversification strategies.

Q: The process of performing an internal audit, compared to the external audit, provides more opportunity for participants to understand how their jobs, departments and divisions fit into the whole organization.

Q: Define what strategists are. Describe what they do in an organization.

Q: In 2011, Fortune magazine cited Kirin Holdings, Carlsberg, and Asahi Breweries as the three least admired companies from a social responsibility perspective.