Exam
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question
.
1) Under the phase of strategic management, strategic information is available to
A) people throughout the organization.
B) operational personnel.
C) middle management.
D) the top-management responsible for decision-making.
E) none of the above
2) The corporate mission is best described b
y
which one of the following?
A) A statement of corporate objectives.
B) The philosoph
y
of the founder.
C) A description of top-management’s responsibilities.
D) The purpose or reason for the corporation’s existence.
E) A description of the activities carried out b
y
the organization.
3) Which one of the following is an example of a narrow scope?
A) computers (vs office equipment)
B) transportation (vs railroads)
C) health care (vs hospitals)
D) real estate (vs apartments)
E) telecommunications (vs television)
4) Which of the following is an example of a mission?
A) Increase sales b
y
10% over last
y
ear.
B) Diversif
y
product line to appeal to more people.
C) Divide a sales region into a group of sales districts.
D) Develop and sell qualit
y
appliances worldwide.
E) Pa
y
highest salaries to keep high qualit
y
emplo
y
ees.
5) For man
y
large corporations the t
y
pical strategic planning staff has just fewer than how man
y
people?
A) 5 B) 7 C) 10 D) 3 E) 15
6) The New York Stock Exchange (NYSE) requires corporations to have
A) a majorit
of the board be outsiders.
B) at least two outside directors providing stockholder representation.
C) cumulative voting.
D) an audit committee composed entirel
y
of independent, outside members.
E) at least one emplo
y
ee director as a representative on the board.
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7) Under what circumstances does an INDIRECT interlocking directorate exist?
A) occurs when one or more individuals on one board also serves on a board of a second firm
B) present when all board members are also emplo
y
ed b
y
the corporation
C) occurs when two corporations have directors who serve on the board of a third firm
D) when both management and the board establish corporate strategic management
E) the inclusion of a corporation’s emplo
y
ees on its board
8) According to the text, the majorit
y
of outside directors are members of all BUT ONE of the following groups:
A) stockbrokers.
B) active or retired CEOs.
C) former government officials.
D)
b
ankers.
E) professors.
9) When the pressure for coordination is strong and the pressure for local responsiveness is weak for
multinational corporations within a particular industry, the industry will be
A) consolidated.
B) global.
C) multidomestic.
D) risk
y
.
E) indigenous.
10) Which barrier to entr
y
uses cost advantages NOT easil
y
imitated b
y
new entrants such as patents on
proprietary product knowledge or government subsidies?
A) economies of scale
B) switching costs
C) cost disadvantages independent of size
D) capital requirements
E) government polic
y
11) An industr
y
dominated b
y
a few large firms, all of which struggle with product differentiation, is known as
A) worldwide.
B) multidomestic.
C) indigenous.
D) global.
E) consolidated.
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12) According to the text, which one of the following is NOT descriptive of a corporation’s culture?
A) Corporate culture norms are created which define acceptable behavior from top-management to operative
employee.
B) Corporate cultures are onl
y
temporar
y
and can be easil
y
changed.
C) A collection of beliefs, expectations, and values learned and shared b
y
corporation’s members and
transmitted from one generation of employees to another.
D) Cultures have a powerful influence on the behavior of managers and can strongl
y
affect a corporation’s
ability to shift its strategic direction.
E) M
y
ths and rituals often emerge over time to explain wh
y
a certain aspect of the culture is important.
13) In order to move through a product’s development stage, companies like Motorola and Chr
y
sler are using
A) task forces.
B) concurrent engineering.
C) cross-functional work teams.
D) advisor
y
committees.
E) continuous engineering.
14) The approach to internal scanning and organizational anal
y
sis which examines the nature and extent of the
synergies that do or do not exist between the internal activities of a corporation is called
A) 7-S framework.