The ISO 14000 family of standards concerns the extent to which a firm minimizes
harmful effects on the environment caused by its activities and continually monitors and
improves its own environmental performance.
Divestiture would be an appropriate strategy when a need exists to introduce a new
technology quickly.
In Europe, romantic relationships at work are frowned upon, and most firms have
policies prohibiting the practice.
The accounting switch from GAAP to IFRS in the U.S. is going to cost businesses
millions of dollars in fees and upgraded software systems and training.
The final stage in strategic management is strategy implementation.
The nonprofit sector is America’s largest employer.
One of the fundamental strategy evaluation activities is reviewing external and internal
factors that are the basis for current strategies.
The critical success factors in a Competitive Profile Matrix and EFE Matrix include
both internal and external issues.
Successful strategists minimize their own political exposure on issues that are highly
controversial and in circumstances where opposition from major power centers is likely.
Strategy-evaluation activities must be meaningful, that is, they should specifically relate
to a firm’s objectives.
When the rational type change strategy is successful, strategy implementation can be
relatively easy.
Wild guesses should never be part of the planning process.
Cultural products include values, beliefs, stories, and language.
What is the best time to develop a mission statement?
A) When a firm is in decline
B) When the firm is successful
C) When the firm is in financial trouble
D) When the firm is in legal trouble
E) When the firm encounters competition
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?
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.
Opportunity analysis is one of the basic functions of
A) marketing.
B) finance/accounting.
C) computer information systems.
D) production/operations.
E) research and development.
Ethics training programs should contain which of the following?
A) Messages from the CEO or business owner emphasizing ethical business practices
B) The development and discussion of codes of ethics
C) Procedures for discussing unethical behavior
D) Procedures for reporting unethical behavior
E) All of the above
Firms should strive to engage in social activities that
A) have economic benefits.
B) have no economic benefits.
C) are detrimental to economic growth.
D) drain financial resources.
E) garner goodwill only, not profits.
More and more firms believe that ethics training and an ethics culture
A) are socially irresponsible.
B) are admirable but damage a firm’s competitive positioning.
C) are costly and provide no practical benefit to the company.
D) create strategic advantage.
E) can tarnish the reputation of a firm.
Metaphors are
A) several rites connected together.
B) shorthand of words used to capture a vision or to reinforce old or new values.
C) narratives based on true events.
D) fictional stories.
E) any objects, acts, events, qualities, or relations used to convey meaning.
FedEx entering the computer repair business offering major corporations overnight
computer repair is an example of
A) backward integration.
B) divestiture.
C) retrenchment.
D) unrelated diversification.
E) forward integration.
Which item is included in net worth?
A) Retained earnings
B) Common stock
C) Additional paid-in-capital
D) All of the above are included in net worth.
E) None of the above are included in net worth.
A document that discloses to shareholders information about a firm’s labor practices,
product sourcing, energy efficiency, environmental impact, and business ethics
practices is known as
A) a code of ethics.
B) a sustainability report.
C) an EMS.
D) ISO 14000.
E) green terminology.
Already the European Union and 113 nations including Australia, Mexico, and Canada
have ________ IFRS rules.
A) adopted and then abandoned the use of
B) been prohibited from adopting
C) spoken out publicly against the adoption of
D) revised the standard version of the
E) adopted or soon plan to use
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
In a CPM, the ratings and total weighted scores for rival firms can be compared to the
sample firm.
List five steps that comprise an effective framework for conducting an EFE Matrix.
Explain the details involved in performing any one of the steps.
Define and discuss the differences between vision and mission statements.
Four basic approaches exist to determine R&D budget allocations. What are these
approaches? Which one would you recommend for a pharmaceutical company? Why?
Discuss some things firms can do to diminish the risk of doing business internationally.
Identify the reasons dividends are sometimes paid out even when funds could be better
reinvested in the business or when the firm has to tap outside sources to pay the
dividends.
Discuss what needs to be completed, besides the calculation and interpretation of ratios,
to complete an effective financial ratio analysis.
Discuss how technology has affected the role of the chief marketing officer (CMO).