53) When the finance department has a goal of a 3 percent increase in return on investment in
three years, what type of goal is the organization setting?
A) A long-term goal
B) A tactical goal
C) A short-term goal
D) An intermediate goal
E) An organizational goal
54) What does e-partnering involve?
A) Buying shares of small companies that provide technology unavailable to the purchasing
company
B) Buying shares of small companies that are similar to the purchasing firm
C) Linking up to the inventory records of another company
D) Sharing a Web server with another company
E) Advertising another company on the purchasing company’s Web site
55) Which kind of strategy takes place at the level of the product line and focuses on a firm’s
competitive position?
A) Functional
B) Business
C) Local
D) Fundamental
E) Environmental
56) What strategic management activity do company managers undertake so they can later
measure success or failure at every organizational level?
A) Planning tactics
B) Setting goals
C) Devising strategies
D) Auditing skills
E) Publicizing promotions
57) What of the following indicates an organization’s reason for being?
A) Strategy
B) Tactic
C) Mission
D) Diversity
E) Profitability
58) Which of the following BEST describes a mission?
A) An objective that a business hopes and plans to achieve
B) A broad set of organizational plans for implementing decisions made for achieving
organizational goals
C) The shared experiences, stories, beliefs, and norms that characterize an organization
D) An organization’s statement of how it will achieve its purpose in the environment in which it
conducts business
E) An organization’s competitive standing in the marketplace
59) Which of the following BEST describes a business strategy?
A) A strategy for determining the firm’s overall attitude toward growth and the way it will
manage its businesses or product lines
B) A strategy at the business unit or product line level that focuses on improving a firm’s
competitive position
C) A strategy by which managers in specific areas decide how best to achieve corporate goals
through productivity
D) A strategy that assists first line managers in making day-to-day decisions about motivating
employees
E) A strategy that integrates an organization’s marketing goals into a cohesive whole by focusing
on the ideal product mix to achieve maximum profit potential
60) A three year goal is considered to be what?
A) Long-term
B) Intermediate
C) Short-term
D) Objective
E) Problematic
61) Which of the following BEST describes functional strategy?
A) A strategy for determining the firm’s overall attitude toward growth and the way it will
manage its businesses or product lines
B) A strategy at the business-unit or product-line level that focuses on improving a firm’s
competitive position
C) A strategy by which managers in specific areas decide how best to achieve corporate goals
through productivity
D) A strategy that assists first line managers in making day-to-day decisions about motivating
employees
E) A strategy that integrates an organization’s marketing goals into a cohesive whole by focusing
on the ideal product mix to achieve maximum profit potential
62) Increasing sales by 4 percent in the next eight months is an example of what kind of goal?
A) Tactical
B) Strategic
C) Short-term
D) Intermediate
E) Long-term
63) The marketing manager wants to increase regional sales by 2 percent each quarter over the
next year. This is an example of what kind of goal?
A) Long-term
B) Intermediate
C) Short-term
D) Strategic
E) Tactical
64) Which of the following is the BEST example of unrelated diversification?
A) Ford Motor Company merging with General Motors
B) Northwest Airlines merging with Procter & Gamble
C) McDonald’s merging with Burger King
D) Tootsie Roll merging with Hershey
E) Bath and Body Works merging with The Body Store
65) Which variable of SWOT analysis identifies changing consumer tastes, hostile takeover
offers, and new government regulations?
A) Threats
B) Opportunities
C) Strategies
D) Internal factors
E) Weaknesses
66) When conducting a SWOT analysis of an organization, which question can help management
brainstorm for the strengths section of the analysis?
A) What external changes present interesting possibilities?
B) What aspect of the organization’s vision can be altered?
C) What necessary skills do the organization’s employees currently lack?
D) What does the organization offer that makes it stand out from other organizations?
E) What external economic forces can affect the organization’s bottom line?
67) When conducting a SWOT analysis of an organization, which question can help management
brainstorm for the weaknesses section of the analysis?
A) What external changes present interesting possibilities?
B) What aspect of the organization’s vision can be altered?
C) What necessary skills do the organization’s employees currently lack?
D) What does the organization offer that makes it stand out from other organizations?
E) What external economic forces can affect the organization’s bottom line?
68) When conducting a SWOT analysis of an organization, which question can help management
brainstorm for the opportunities section of the analysis?
A) What external changes present interesting possibilities?
B) What aspect of the organization’s vision can be altered?
C) What necessary skills do the organization’s employees currently lack?
D) What does the organization offer that makes it stand out from other organizations?
E) What external economic forces can affect the organization’s bottom line?
69) When conducting a SWOT analysis of an organization, which question can help management
brainstorm for the threats section of the analysis?
A) What external changes present interesting possibilities?
B) What aspect of the organization’s vision can be altered?
C) What necessary skills do the organization’s employees currently lack?
D) What does the organization offer that makes it stand out from other organizations?
E) What external economic forces can affect the organization’s bottom line?
70) Which of the following would be classified as opportunities for an organization?
A) Government regulation of the organization’s services
B) Highly unionized workers in the organization’s industry
C) New competitors
D) Stronger demand for the organization’s services
E) Economy fluctuations
71) What type of analysis focuses on external factors?
A) Organizational analysis
B) Governmental analysis
C) Environmental analysis
D) Functional analysis
E) Financial analysis
72) Which of the following is NOT considered an organizational strength?
A) Strong market position
B) Dedicated work force
C) Changing consumer tastes
D) Technical expertise
E) Recognized customer relation management
73) In which step of the strategy formulation process would a SWOT analysis take place?
A) Matching the organization and its environment
B) Analyzing the organization and the environment
C) Developing tactical and operations plans
D) Setting strategic goals
E) Contingency planning and crisis management
74) Which of the following is the last step in the strategy formulation process and requires
comparing threats and opportunities against strengths and weaknesses?
A) Organizational analysis
B) Matching the organization and its environment
C) Analyzing the organization and the environment
D) Setting strategic goals and mission statements
E) Conducting an analysis using SWOT techniques
75) Business strategy focuses on improving the company’s competitive position.
76) The starting point in effective management is setting goals.
77) Goal setting helps managers assess performance.
78) Long-term goals are derived directly from a firm’s mission statement.
79) Doubling the number of merchants participating in a sales program over the next 10 years is
an example of a long-term goal.
80) Increasing sales by 4 percent in the next six months would be an example of an intermediate
goal.
81) When an organization analyzes its internal strengths and weaknesses, it is conducting an
organizational analysis.
82) A firm first sets its strategies and then focuses attention on goals to accomplish them.
83) Strategy has a wider scope than planning.
84) An organization retrenches by increasing its investment in a particular area.
85) SWOT analysis is usually conducted before strategic goals have been established.
86) What is a mission statement?
87) What is the difference between a goal and a strategy?
88) What is SWOT analysis?
89) Discuss the four main purposes of organizational goal setting.
90) Discuss the three broad levels of strategy that organizations may implement.
91) Differentiate among strategic, tactical, and operational plans.
92) What element of management is being utilized when using computer forecasts to determine
possible outcomes of an intended change?
A) Strategy formulation
B) Goal setting
C) Crisis management
D) Contingency planning
E) Related diversification
93) How can organizations best deal with emergencies requiring immediate response?
A) Contingency plans
B) Operational plans
C) Crisis management plans
D) Tactical plans
E) Cultural flexibility plans
94) Contingency planning seeks to identify how a company will respond to change.
95) Effective crisis management involves having a contingency plan for emergencies.
96) Which element of an organization is defined by shared experiences, stories, beliefs, and
norms?
A) Its human resources
B) Its product philosophy
C) Its corporate culture
D) Its mission statement
E) Its organizational structure
97) Which of the following is TRUE about corporate culture?
A) It can direct employees’ efforts toward goals.
B) It is usually determined by outside forces.
C) It cannot be changed.
D) It is easy to change.
E) It rarely affects newcomers in an organization.
98) When a company attempts to change its culture, what must take place to give the new culture
solid shape within the firm?
A) The firm must set up new systems for appraising and compensating employees who enforce
the new values.
B) A highly responsive strategy must be determined.
C) There must be a period devoted to conflict and resistance.
D) There must be renewed focus on the activities of the competitors and customers.
E) There must be a thorough SWOT analysis to determine if the change is necessary.
99) How does a new employee learn acceptable behaviors within the organization?
A) Quality standards
B) Crisis management strategies
C) Contingency plans
D) Operational plans
E) Cultural norms
100) Corporate culture is largely a result of state and local laws and regulations.
101) A strong corporate culture directs employees’ efforts and helps everyone work toward the
same goals.
102) It is not possible to change an organization’s corporate culture.
103) Corporate culture influences management’s philosophy, style, and behavior.
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104) Define the term corporate culture.
105) What are the purposes of having a strong corporate culture?