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Q:
What is the range for a firm's total weighted score in an External Factor Evaluation Matrix?
A) 0 to 5
B) 0 to 4
C) 1 to 5
D) 1 to 4
E) 0 to 10
Q:
Which of the following statements is NOT true?
A) Open-mindedness is an important guideline for effective strategic management.
B) Strategic management must become a self-perpetuating bureaucratic mechanism.
C) No organization has unlimited resources.
D) Strategic decisions require trade-offs.
E) Strategic management must be a self-reflective learning process.
Q:
Monitoring departmental and corporate performance regarding ethical issues can cause firms to misalign ethical and strategic decision making.
Q:
Discuss how work life/home life balance is being addressed by organizations.
Q:
Which strategy would be effective when the stockholders of a firm can minimize their losses by selling the organization's assets?
A) Integration
B) Differentiation
C) Diversification
D) Cost leadership
E) Liquidation
Q:
What is the first step in designing an EFE Matrix?
A) Identifying key external factors in the industry
B) Summing the weighted score for each competitor
C) Calculating the sales of each competitor
D) Drawing the horizontal and vertical lines for the matrix
E) Determining four competitors
Q:
Which of the following is NOT a pitfall an organization should avoid in strategic planning?
A) Failing to communicate the plan to employees
B) Involving all managers rather than delegating planning to a "planner"
C) Top managers not actively supporting the strategic planning process
D) Doing strategic planning only to satisfy accreditation or regulatory requirements
E) Failing to create a collaborative climate supportive of change
Q:
Integrating ethical decision making into the performance appraisal process is one way that firms can align ethical and strategic decision making.
Q:
Explain the nature and role of ESOPs in strategic management.
Q:
Selling all of a company's assets, in parts, for their tangible worth is called
A) joint venture.
B) divestiture.
C) concentric diversification.
D) liquidation.
E) unrelated integration.
Q:
A total weighted score of _______ in an EFE Matrix indicates that the firm's strategies are NOT capitalizing on opportunities or avoiding external threats.
A) 0.0
B) 1.0
C) 2.5
D) 3.3
E) 4.0
Q:
All of these are pitfalls an organization should avoid in strategic planning EXCEPT
A) using plans as a standard for measuring performance.
B) using strategic planning to gain control over decisions and resources.
C) failing to involve key employees in all phases of planning.
D) too hastily moving from mission development to strategy formulation.
E) being so formal in planning that flexibility and creativity are stifled.
Q:
History has proven that the lower the trust and confidence of people in the ethics of an institution or society, the greater its economic strength.
Q:
What are the three commonly used strategies or approaches for implementing changes in an organization? Give an advantage and/or disadvantage for each type of approach.
Q:
Which strategy should be implemented when a division is responsible for an organization's overall poor performance?
A) Backward integration
B) Divestiture
C) Forward integration
D) Cost leadership
E) Related diversification
Q:
Standard and Poor's Industry Surveys include all of the following sections EXCEPT
A) Historic Environment
B) Industry Trends
C) How to Analyze a Company
D) Glossary of Industry Information
E) Comparative Company Financial Analysis
Q:
Which of the following is NOT a reason given for poor or no strategic planning in an organization?
A) Waste of time
B) Being content with success
C) Firefighting
D) Poor reward structures
E) Trust of management
Q:
More and more firms believe that ethics training and an ethics culture create strategic advantage.
Q:
Discuss the do's and don'ts in developing organizational charts.
Q:
Which term refers to selling a division of an organization?
A) Joint venture
B) Divestiture
C) Concentric diversification
D) Liquidation
E) Horizontal integration
Q:
Which of the following is not a published source of external strategic information?
A) periodicals
B) television programs
C) journals
D) reports
E) directories
Q:
According to Greenley, strategic management offers all of these benefits EXCEPT
A) it provides an objective view of management problems.
B) it creates a framework for internal communication among personnel.
C) it encourages a favorable attitude toward change.
D) it maximizes the effects of adverse conditions and changes.
E) it gives a degree of discipline and formality to the management of a business.
Q:
Primary responsibility for ensuring ethical behavior rests with middle- and low-level managers, since they are in a position to influence many employees.
Q:
Compare and contrast restructuring and reengineering.
Q:
Retrenchment would be an effective strategy when an organization
A) has shrunk so quickly that major internal reorganization is needed.
B) is one of the stronger competitors in a given industry.
C) is plagued by inefficiency, low profitability, poor employee morale and pressure from stockholders to improve performance.
D) has decided to capitalize on opportunities, maximize threats, take advantage of strengths and overcome weaknesses.
E) does not have a clearly distinctive competence and has failed to meet its objectives and goals consistently over time.
Q:
Unpublished sources of external strategic information include all of the following EXCEPT
A) abstracts
B) customer surveys
C) market research
D) speeches at professional and shareholders' meetings
E) conversations with stakeholders
Q:
According to research, organizations using strategic management are ________ than those that do not.
A) more profitable
B) more complex
C) less profitable
D) less successful
E) less complex
Q:
Most firms warn managers and employees that reporting an ethical violation by others, also known as whistle-blowing, could cause them to be discharged.
Q:
There are four basic ways a divisionally structured firm could be organized. What are these four ways? Give an example of each.
Q:
The form of bankruptcy in which all the organization's assets are sold in parts for their tangible worth is
Answer: A
Learning Outcome: Define corporate strategy and identify its key elements
Q:
Without assumptions, planning would be
A) impossible.
B) easier.
C) difficult.
D) inexpensive.
E) intuitive.
Q:
Annually, ________ businesses in the U.S. fail.
A) exactly 100
B) less than 1,000
C) about 10,000
D) more than 100,000
E) almost 10 million
Q:
Whistle-blowing refers to policies that require employees to report any unethical violations they discover or see in the firm.
Q:
What are the advantages and disadvantages of a divisional organizational structure?
Q:
The Family Farmer Bankruptcy Act of 1986 created which type of bankruptcy?
Answer: D
Q:
What are educated assumptions about future trends and events called?
A) Wild guesses
B) Forecasts
C) Facts
D) Statistics
E) Premonitions
Q:
How do line managers become "owners" of the strategy?
A) By attending top manager meetings
B) By executing plans formulated by other people
C) By involvement in the strategic-management process
D) By becoming a shareholder of the firm
E) By buying off top managers
Q:
Periodic ethics workshops can help sensitize people to workplace circumstances in which ethics issues may arise.
Q:
There are three major approaches for managing and resolving conflict in an organization. Define these three approaches and give an example of each.
Q:
Answer: C
Learning Outcome: Define corporate strategy and identify its key elements
Q:
The Internet has made it _______ for firms to gather, assimilate, and evaluate information.
A) easier
B) harder
C) more expensive
D) less clear-cut
E) more time-consuming
Q:
The act of strengthening employees' sense of effectiveness by encouraging and rewarding them for participating in decision-making and exercising initiative and imagination is referred to as
A) authoritarianism.
B) proaction.
C) empowerment.
D) transformation.
E) delegation.
Q:
Having a code of ethics ensures ethical business behavior.
Q:
Name at least ten issues that may require a management policy.
Q:
Bankruptcy
A) should never be used as a strategy.
B) should be used only when one is legally forced to do so.
C) can be an effective type of retrenchment strategy.
D) should only be used for large firms.
E) should only be used for small, private firms.
Q:
What level of bargaining power do consumers have when the products being purchased are standard or undifferentiated?
A) Marginal
B) Low
C) High
D) Negative
E) Negligible
Q:
Strategic management enables an organization to ________, instead of just responding to threats in its business environment.
A) be proactive
B) be immune to threats
C) avoid responsibility for shaping its future
D) relinquish control over its destiny
E) be reactive
Q:
A new wave of ethics issues has accentuated the need for strategists to develop a clear code of business ethics.
Q:
List four major reasons annual objectives are essential for strategy implementation.
Q:
What kind of strategy is retrenchment?
A) A turnaround strategy
B) An expansion strategy
C) A diagonal strategy
D) An intensive strategy
E) An offensive strategy
Q:
If suppliers are unreliable or too costly, which of these strategies may be appropriate?
A) Horizontal integration
B) Backward integration
C) Market penetration
D) Forward integration
E) Concentric diversification
Q:
Which of the following is part of the strategic management model?
A) Measure and evaluate performance
B) Develop mission and vision statements
C) Establish long-term objectives
D) Implement strategies
E) All of the above
Q:
Moving jobs overseas is not considered to be an unethical business practice.
Q:
What are five differences between strategy formulation and strategy implementation?
Q:
Borders closing 200 of its 488 superstores and laying off 6,000 of its 19,500 employees is an example of
A) divestiture.
B) backward integration.
C) liquidation.
D) retrenchment.
E) forward integration.
Q:
Whenever new firms can easily enter a particular industry, the intensity of competitiveness among firms tends to
A) stay the same.
B) increase.
C) decrease.
D) neutralize.
E) fluctuate.
Q:
The strategic-management process
A) occurs once a year.
B) is a semiannual process.
C) is a continuous process.
D) applies mostly to companies with sales greater than $100 million.
E) applies mostly to small businesses.
Q:
Dumping banned or flawed products in foreign markets is considered to be an unethical business practice.
Q:
Which company estimates wellness programs have cumulatively saved the company $250 million on health care costs in the past decade?
A) Ford Motor Company
B) Johnson & Johnson
C) Coca-Cola
D) TJX
E) Boeing
Q:
Many more firms have failed at ________ than have succeeded due to the immense challenge of managing businesses in many industries rather than in a single industry.
A) forward integration
B) related diversification
C) backward integration
D) unrelated diversification
E) horizontal integration
Q:
According to Porter, what is usually the most powerful of the five competitive forces?
A) Potential development of substitute products
B) Bargaining power of suppliers
C) Bargaining power of consumers
D) Rivalry among competing firms
E) Potential entry of new competitors
Q:
What are guides to decision making?
A) Laws
B) Rules
C) Policies
D) Objectives
E) Goals
Q:
Some of the largest payouts for class-action legal fraud suits ever were against Enron ($7.16 billion) and WorldCom ($6.16 billion).
Q:
For what reason did Boeing fire CEO Harry Stonecipher?
A) Poor company performance
B) Enforcing discriminatory hiring practices
C) Having an extramarital affair
D) Stealing from the company
E) Exorbitant use of company planes
Q:
Which of the following is NOT a guideline for when an organization should use an unrelated diversification strategy?
A) when revenues derived from an organization's current products or services would increase significantly by adding the new unrelated, products
B) when an organization's present channels of distribution can be used to market the new products to current customers
C) when the new products have countercyclical sales patterns compared to an organization's present products
D) when an organization competes in a highly competitive and/or a no-growth industry
E) when existing markets for an organization's present products are not yet saturated
Q:
What is NOT one of Michael Porter's five competitive forces?
A) New entrants
B) Rivalry among existing firms
C) Bargaining power of unions
D) Bargaining power of suppliers
E) Bargaining power of buyers
Q:
In which phase of strategic management are long-term objectives especially important?
A) Formulation
B) Control
C) Evaluation
D) Implementation
E) Management
Q:
CEOs and business owners delegate the responsibility for ensuring that high ethical principles are espoused and practiced in an organization.
Q:
In 2012, how many Fortune 500 have women CEOs ?
A) Two
B) Five
C) Twelve
D) Eighteen
E) Twenty-four
Q:
Tyson Foods opening a manufacturing plan that makes diesel and jet fuel from chicken fat, beef tallow, and leftover food grease from the firm's meat-processing plants is an example of
A) backward integration.
B) divestiture.
C) retrenchment.
D) unrelated diversification.
E) forward integration.
Q:
Intensity of competition ________ in lower-return industries.
A) is lowest
B) is nonexistent
C) is highest
D) is not important
E) fluctuates
Q:
Annual objectives are especially important in strategy
A) reduction.
B) formulation.
C) implementation.
D) evaluation.
E) policy.
Q:
A rising tide of consciousness about the importance of business ethics is sweeping the United States and the rest of the world.
Q:
Approximately how many people in the United States are now part of two-career families?
A) 2 million
B) 8 million
C) 21 million
D) 60 million
E) 85 million
Q:
Which strategy should an organization use if it competes in a no-growth or a slow-growth industry?
A) Divestiture
B) Related diversification
C) Backward integration
D) Unrelated diversification
E) Retrenchment
Q:
Market commonality can be defined as
A) the number and significance of markets that a firm competes in with rivals.
B) the number and significance of points in common a firm has with its rivals.
C) the extent to which the type of a firm's internal resources are comparable to a rival.
D) the extent to which the amount of a firm's internal resources are comparable to a rival.
E) none of the above
Q:
Long-term objectives should be all of the following EXCEPT
A) measurable.
B) continually changing.
C) reasonable.
D) challenging.
E) consistent.
Q:
Business ethics can be defined as principles of conduct within organizations that guide decision making and behavior.
Q:
A concern in matching managers with strategy is that jobs have relatively ________ responsibilities, while people are ________ in their personal development.
A) static; dynamic
B) dynamic; static
C) quick; slow
D) exciting; dull
E) dull; exciting
Q:
Which strategy is effective when new, but related, products could be offered at highly competitive prices?
A) Forward integration
B) Related diversification
C) Backward integration
D) Conglomerate diversification
E) Unrelated diversification