Q&A Hero

Q: The responsibilities of a director of competitive analysis include all of the following EXCEPT A) researching special issues B) disseminating information on a timely basis C) recognizing what information is important and who needs to know D) conducting corporate espionage E) analyzing data

Q: What are the means by which long-term objectives will be achieved? A) Strategies B) Strengths C) Weaknesses D) Policies E) Opportunities

Q: Bad ethics can derail all but the best strategic plans.

Q: Just-in-time describes A) implementing strategies just before bankruptcy. B) delivering materials just as they are needed. C) a scheduling method for meetings. D) a personnel planning method. E) a process for improving quality.

Q: Which strategy is appropriate when an organization competes in an industry characterized by rapid technological developments? A) Retrenchment B) Product development C) Backward integration D) Liquidation E) Market penetration

Q: Which statement about business intelligence is accurate? A) Intelligence gathering is an unethical business practice. B) Running an intelligence program requires many people. C) Running an intelligence program requires many computers and other resources. D) Collecting intelligence about competitors violates antitrust laws. E) Business intelligence is not equal to espionage.

Q: Internal ________ are activities in an organization that are performed especially well. A) opportunities B) incompetencies C) strengths D) objectives E) factors

Q: According to a study by the Institute of Business Ethics, companies that do not display ethical conduct consistently outperform companies that show a clear commitment to ethical conduct.

Q: Aspects of an existing culture that are antagonistic to a proposed strategy should be A) preserved. B) emphasized. C) built upon. D) changed. E) celebrated.

Q: All of the following situations are conducive to market development EXCEPT A) when new channels of distribution are expensive and unreliable B) when an organization is very successful at what it does C) when new untapped or unsaturated markets exist D) when an organization has excess production capacity E) when an organization's basic industry is becoming rapidly global in scope

Q: ________ is not a basic mission of a competitive intelligence program. A) Providing a general understanding of an industry B) Providing a general understanding of a company's competitors C) Identifying industry executives who could be hired by the firm D) Identifying areas in which competitors are vulnerable and assessing the impact strategic actions would have on competitors E) Identifying potential moves a competitor might make that would endanger a firm's position in the market

Q: Specific results an organization seeks to achieve in pursuing its basic mission are A) strategies. B) rules. C) objectives. D) policies. E) tenets.

Q: Good ethics is not a prerequisite for good strategic management.

Q: All of the following are ways and means for altering an organization's culture EXCEPT A) recruitment B) restructuring of an organization's design C) role modeling D) retrenchment E) mentoring

Q: Which strategy generally entails large research and development expenditures? A) Market penetration B) Retrenchment C) Forward integration D) Product development E) Divestiture

Q: A systematic and ethical process for gathering and analyzing information about the competition's activities and general trends to further a business' own goals is called A) unethical business practice. B) artificial intelligence. C) competitive intelligence. D) industrial espionage. E) competitive advantage.

Q: Usually, external opportunities and threats are A) uncontrollable by a single organization. B) controlled by governments. C) not as important as internal strengths and weaknesses. D) key functions in strategy implementation. E) key functions in strategy exploitation.

Q: Sustainability refers to the extent that an organization's operations and actions protect, mend, and preserve rather than harm or destroy the natural environment.

Q: Which of the following statements is true? A) The pay of the CEO of a Japanese company is about half the pay of the CEO of an American company. B) The CEO of a Japanese company earns more than the CEO of a European company. C) In Japan, individual excellence is emphasized over harmony among managers. D) Seniority rather than performance has been the key factor in determining pay in Japan. E) All of the above

Q: When a domestic company first begins to export to India, it is an example of A) horizontal integration. B) backward integration. C) forward integration. D) concentric diversification. E) market development.

Q: Which of the following is NOT a characteristic that describes the most competitive companies in America? A) Divestiture is essential to growth. B) People make a difference. C) Innovate or evaporate. D) There is no substitute for quality and no greater threat than failing to be cost-competitive on a global basis. E) Whether it's broke or not, fix it.

Q: An organization's vision statement A) is a constant reminder to its employees of why the organization exists. B) broadly charts the future direction of an organization. C) addresses the basic question: "What is our business?" D) answers the question: "What do we want to become?" E) none of the above

Q: Social responsibility refers to actions an organization takes that are legally required to protect or enhance the well-being of living things.

Q: Changing a strategy to fit an existing culture A) is usually less effective than changing a firm's culture to fit a new strategy. B) is usually more effective than changing a firm's culture to fit a new strategy. C) is just as effective as changing a firm's culture to fit a new strategy. D) is always the best option. E) none of the above

Q: Which strategy seeks to increase market share for present products or services in present markets through greater marketing efforts? A) Market penetration B) Forward integration C) Market development D) Backward integration E) Product development

Q: Competition in virtually all industries is ________. A) nonexistent B) intense C) never cutthroat D) easily avoidable E) insignificant

Q: What are enduring statements of purpose that distinguish one business from other similar firms? A) Policies B) Mission statements C) Objectives D) Rules E) Employee conduct guidelines

Q: Many people consider it unethical for a firm to be socially irresponsible.

Q: Formal statements of organizational philosophy, charters, creeds, materials used for recruitment and selection, and socialization help an organization A) abide by SEC laws. B) link culture to strategy. C) set guidelines for firing. D) increase profits. E) manage conflicts between stakeholders.

Q: In which situation would horizontal integration be an especially effective strategy? A) when an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for "tending substantially" to reduce competition B) when an organization competes in a slowing industry C) when decreased economies of scale provide major competitive advantages D) when an organization has neither the capital nor human talent needed to successfully manage an expanded organization E) when competitors are succeeding due to managerial expertise or having particular resources an organization possesses

Q: Collecting and evaluating information on competitors is essential for successful A) internal analysis. B) strategy evaluation. C) strategy formulation. D) strategy implementation. E) strategy management.

Q: The first step in strategic planning is generally A) developing a vision statement. B) establishing goals and objectives. C) making a profit. D) developing a mission statement. E) determining opportunities and threats.

Q: Which of the following is in keeping with the current view of organizational change? A) Organizational change is a project. B) Organizational change is a continuous process. C) Organizational change is an event. D) Organizational change involves unfreezing behavior, changing the behavior, and then refreezing the new behavior. E) All of the above

Q: What refers to a strategy of seeking ownership of, or increased control over a firm's competitors? A) Forward integration B) Conglomerate diversification C) Backward integration D) Horizontal integration E) Concentric diversification

Q: Which of the following sectors of the economy would be most impacted by technological developments? A) Forestry B) Aeronautics C) Textiles D) Metals E) Paper

Q: Which individuals are most responsible for the success and failure of an organization? A) Strategists B) Financial planners C) Personnel directors D) Stakeholders E) Human resource managers

Q: Discuss the three particular challenges that strategists face today.

Q: A change strategy that attempts to convince people that the change is to their personal advantage is A) defusion. B) force. C) educative. D) rational. E) compromise.

Q: Backward integration is effective in all of these cases EXCEPT A) when an organization competes in an industry that is growing rapidly B) when an organization has both capital and human resources to manage the new business of supplying its own raw materials C) when an organization needs to acquire a needed resource quickly D) when the advantages of stable prices are not important E) when present suppliers have high profit margins

Q: Not all sectors of the economy are equally affected by technological developments; the ________ industry is much more volatile than the ________ industry. A) textile; communications B) pharmaceutical; forestry C) metals; electronics D) forestry; communications E) textile; pharmaceutical

Q: The one factor that has most significantly impacted the nature and core of buying and selling in nearly all industries has been A) the Internet. B) political borders. C) corporate greed. D) customer and employee focus. E) the government.

Q: What are some of the reasons for and against the U.S. adopting international financial reporting standards (IFRS).

Q: Resistance to change can manifest itself through A) absenteeism. B) sabotaging production machines. C) filing unfounded grievances. D) unwillingness to cooperate. E) all of the above

Q: Which of these strategies is effective when the number of suppliers is small and the number of competitors is large? A) Conglomerate diversification B) Forward integration C) Concentric diversification D) Backward integration E) Horizontal diversification

Q: All of the following are political, governmental, and legal variables that can represent key opportunities or threats to organizations EXCEPT A) special tariffs B) environmental protection laws C) world oil, currency, and labor markets D) legislation on equal employment E) population changes by race, age, sex, and level of affluence

Q: There is a dramatic shift in mass retailing to A) "trading up" and taking customers from more exclusive stores. B) selling only the most expensive merchandise. C) opening dramatically larger supercenters. D) operating stores with less square footage. E) cutting back on their online presence.

Q: Discuss some contingency plans commonly established by firms.

Q: What change strategy involves giving orders and enforcing those orders? A) Self-interest B) Educative C) Force D) Rational E) Defusion

Q: Today McDonald's owns about _______ percent of its 32,800 restaurants. A) 20 B) 30 C) 40 D) 50 E) 60

Q: Which of the following has largely refrained from protectionist measures? A) the EU B) the U.S. C) India D) Russia E) All of the above

Q: The Internet has transferred power from ________ to ________. A) businesses, individuals B) governments, businesses C) individuals, businesses D) businesses, governments E) individuals, governments

Q: Describe the seven-step process of effective contingency planning in strategy evaluation.

Q: Which of these is NOT one of the tests used to determine whether a performance-pay plan will benefit an organization? A) Does the plan capture attention? B) Do employees understand the plan? C) Is the plan improving communications? D) Does the plan pay out when it should? E) Does the plan reduce management layers?

Q: Websites that sell products directly to consumers are examples of which type of strategy? A) Backward integration B) Product development C) Forward integration D) Horizontal integration E) Conglomerate diversification

Q: ________ perhaps has instituted the most protectionist measures in recent months by raising tariffs on most imports and subsidizing its own exports. A) Russia B) The United States C) The EU D) India E) Switzerland

Q: ________ allows firms to sell products, advertise, purchase supplies, bypass intermediaries, track inventory, and eliminate paperwork. A) Social networking B) E-commerce C) Blogging D) Video sites E) None of the above

Q: Identify some characteristics of an effective evaluation system.

Q: What pay strategy requires employees or departments to establish performance targets, which, if exceeded, result in bonuses for all members? A) Profit sharing B) Bonus system C) Salary D) Gain sharing E) Hourly wage system

Q: Integration strategies are sometimes collectively referred to as which of the following categories of strategies? A) Horizontal integration B) Diversification C) Vertical integration D) Stuck-in-the-middle E) Hierarchical integration

Q: Many economists say the current rash of trade constraints will make it ________ for global economic growth to recover from the global recession. A) easier B) impossible C) harder D) more likely E) less difficult

Q: The fact that Apple has no manufacturing facilities of its own A) has caused it to build up massive debt on its balance sheet. B) has enabled it to remain financially lean with virtually no long-term debt. C) has been problematic for Apple in terms of debt. D) illustrates that having more fixed assets than rival firms can provide major competitive advantages in a global recession. E) means that it is in the same position as Sony.

Q: Discuss the different perspectives and concerns of the Balanced Scorecard.

Q: All of the following statements regarding the recent trend in Japan of switching from seniority-based pay to performance-based approaches are true EXCEPT A) The switch is an effort to cut costs. B) The switch is boosting employee morale. C) The switch is an effort to increase productivity. D) The switch opposes the traditional training of Japanese employees to cooperate rather than compete. E) The switch goes against decades of encouraging workers to work in groups instead of individually.

Q: Which of the following is most likely NOT included in the functional level of a small company? A) Finance B) Marketing C) R&D D) Department managers E) Human resource managers

Q: Changes in which of the following can significantly affect firms? A) Patent laws B) Antitrust legislation C) Tax rates D) Lobbying activities E) All of the above

Q: At the start of 2011 Myspace's customer base was ________ million, while Facebook's base at the same time numbered ________ million. A) 80/100 B) 100/80 C) 80/500 D) 350/500 E) 500/350

Q: What are the most commonly used quantitative criteria to evaluate strategies? Give several examples of these criteria.

Q: Which pay strategy is NOT a form of incentive compensation? A) Bonus system B) Hourly wage C) Gain sharing D) Profit sharing E) All of the above are forms of incentive compensation.

Q: Hawaiian Airlines beginning to offer flights from Hawaii to Seoul, Korea, and Tokyo, Japan, rather than mostly flying to and from the U.S. mainland, is an example of which type of strategy? A) Forward integration B) Backward integration C) Horizontal integration D) Market development E) Product development

Q: When an industry relies heavily on government contracts, which forecasts can be the most important part of an external audit? A) Economic B) Political C) Technological D) Competitive E) Multinational

Q: Anything that a firm does especially well compared to rival firms is referred to as A) competitive advantage. B) comparative disadvantage. C) opportunity cost. D) unsustainable advantage. E) an external opportunity.

Q: Describe each of the activities that comprise strategy evaluation.

Q: A firm uses information technology to break down functional barriers and create a work system based on business processes, products, or outputs rather than on functions or inputs in A) restructuring. B) benchmarking. C) reengineering. D) rightsizing. E) delayering.

Q: Marriott selling its timeshare business is an example of which type of strategy? A) Related diversification B) Unrelated diversification C) Retrenchment D) Divestiture E) Liquidation

Q: Japan's elderly population ratio is _______ percent. A) 13 B) 17 C) 19 D) 22 E) 65

Q: ________ and ________ are external forces transforming business and society today. A) Online social networking; strategy B) Online social networking; high energy prices C) Strategy; high energy prices D) Corporate culture; stakeholders E) Stakeholders; strategy

Q: Compare and contrast two of Rumelt's four criteria for evaluating strategies.

Q: What action involves reconfiguring or redesigning work, jobs, and processes for the purpose of improving costs, quality, service, and speed? A) Restructuring B) Downsizing C) Reengineering D) Delayering E) Benchmarking

Q: Starbucks reaching a deal with Green Mountain Coffee Roasters for that firm to sell packs of Starbucks Tazo-branded coffee and tea in their brewers is an example of which type of strategy? A) Forward integration B) Backward integration C) Horizontal integration D) Related diversification E) Unrelated diversification

Q: Americans were on the move in a population shift to _______, but the recession and housing bust nationwide has slowed migration throughout the United States. A) the Frostbelt B) the South and West C) the Northeast and Midwest D) the Midwest and South E) Canada