Fundamentals of Human Resource Management, 4e (Dessler)
Chapter 3 Human Resource Strategy and Analysis
1) What is the first step in the strategic management process?
A) performing internal audits
B) defining the current business
C) translating the mission into strategic goals
D) implementing a long-term strategy
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Concept
2) During the strategic planning process, environmental scanning worksheets are used for
________.
A) providing employees with job performance data
B) gathering information about economic trends
C) formulating a mission and vision statement
D) assessing the implementation of a strategy
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Concept
3) A ________ statement indicates the firm’s intended direction and evokes emotional feelings in
organization members.
A) performance
B) strategic
C) mission
D) vision
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Concept
1
4) Vision statements focus on the ________.
A) past
B) present
C) future
D) impossible
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Concept
5) A ________ lays out what a business strives to be while a ________ lays out what it should be
now.
A) mission; vision
B) vision; mission
C) goal; strategy
D) CEO; CFO
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Concept
2
6) A team of managers has been assigned the task of developing and implementing a strategic
plan using the strategic management process. The team has already defined the current business
and mission. What should the team most likely do next?
A) write a new mission statement
B) perform a SWOT analysis
C) evaluate the firm’s vision
D) assess the firm’s performance
AACSB: Application of knowledge
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Application
7) Holt Tractor Company needs a new strategic plan as a result of losing market share to other
farm equipment companies. A management team at the firm is following the steps of the strategic
management process. So far, the team has performed external and internal audits. What is the
next step in the strategic management process?
A) evaluating the firm’s performance
B) defining the business and its mission
C) formulating a new mission statement
D) developing a competitive strategy
AACSB: Application of knowledge
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Application
3
8) Which of the following is a simple guide used to compile relevant information about
economic, competitive, and political trends that may affect a firm?
A) organization chart
B) workforce requirement matrix
C) external resource system table
D) environmental scanning worksheet
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Concept
9) The sales director at WebMD is developing goals regarding sales revenue targets and the
number of new medical-related content providers that the firm needs to maintain a competitive
advantage. In which step of the strategic management process is the sales director most likely
involved?
A) performing external and internal audits
B) defining the business and its mission
C) translating a mission into strategic goals
D) evaluating strategic decisions
AACSB: Analytical Thinking
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Application
4
10) Last year, General Motors began a strategy to improve product quality and customer
satisfaction. Recent reports show that GM’s product recalls for the first half of the year are higher
than for the entire previous year. GM explains that the figures support the corporate commitment
to quality and satisfaction. In which step of the strategic management process is GM currently
focusing?
A) defining the business and its mission
B) translating the mission into strategic goals
C) formulating a strategy
D) evaluating performance
AACSB: Analytical Thinking
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Application
11) Which of the following summarizes a company’s main tasks at the present time?
A) mission statement
B) strategic plan
C) code of ethics
D) vision statement
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Concept
5
12) The ________ of the California Energy Commission indicates that the organization assesses
and acts through public and private partnerships to improve energy systems that promote a strong
economy and a healthy environment.
A) mission statement
B) strategic plan
C) code of ethics
D) vision statement
AACSB: Application of knowledge
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Application
13) The primary tool used by managers who are performing external and internal audits as part
of the strategic management process is the ________.
A) BCG matrix
B) QSPM matrix
C) SWOT analysis
D) EPS/EBIT analysis
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Concept
14) A company’s ________ strategy identifies the portfolio of businesses that comprise the
company and the ways in which these businesses relate to each other.
A) functional
B) business unit
C) corporate-level
D) competitive
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Concept
6
15) What does a company’s corporate-level strategy identify?
A) the company’s long-term competitive position in the marketplace
B) the portfolio of businesses that comprise the company
C) the possibility of becoming a low-cost leader
D) the sources of uniqueness in the industry
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Concept
16) Which type of strategy identifies how to build and strengthen a firm’s long-term competitive
position in the marketplace?
A) functional
B) business-level
C) corporate-level
D) vertical integration
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Concept
17) What does a company’s business-level strategy identify?
A) how to build and strengthen the business’s long-term competitive position in the marketplace
B) the portfolio of businesses that comprise the company
C) the basic courses of action that each department will pursue in order to help the business
attain its competitive goals
D) what characteristics make the firm unique in the industry
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Concept
7
18) A company’s ________ strategy identifies the basic courses of action that each department
will pursue in order to help the business attain its competitive goals.
A) functional
B) business-level
C) corporate-level
D) competitive
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Concept
19) What does a company’s functional-level strategy identify?
A) how to build and strengthen the business’s long-term competitive position in the marketplace
B) the portfolio of businesses that comprise the company
C) the basic courses of action that each department will pursue in order to help the business
attain its competitive goals
D) how the company can become a low-cost leader
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Concept
20) A diversification corporate strategy implies that a firm will ________.
A) become an industry’s low-cost leader
B) expand by adding new product lines
C) save money by producing its own raw materials
D) reduce the company’s size to increase market share
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Concept
8
21) Marriott Hotels is considering the acquisition of a furniture-making business. What type of
strategy is Marriott most likely pursuing?
A) consolidation
B) diversification
C) concentration
D) geographic expansion
AACSB: Analytical Thinking
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Application
22) Harley-Davidson sells a line of boots, helmets, and leather jackets indicating that the firm is
most likely pursuing which of the following strategies?
A) consolidation
B) diversification
C) geographic expansion
D) horizontal integration
AACSB: Analytical Thinking
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Application
9
23) Winchester Rugs operates a website called www.buyrugsdirect.com, so Winchester Rugs is
most likely implementing a strategy of ________.
A) consolidation
B) geographic expansion
C) vertical integration
D) horizontal concentration
AACSB: Analytical Thinking
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Application
24) A firm that expands by producing its own raw materials or acquiring a retail outlet to sell its
own products is most likely using a strategy of ________.
A) consolidation
B) geographic expansion
C) vertical integration
D) regional diversification
Chapter: 3
LO: 3.1: Explain with examples each of the steps in the strategic management process.
Skill: Concept
10