U.S. firms are not being challenged in the computer industry.
At Google the culture is very rigid, while in contrast the culture at Proctor & Gamble is
very informal.
Although bankruptcy can be an effective type of retrenchment strategy, it does not
allow firms to avoid major debt obligations and to void union contracts.
Industry analysis is also referred to as external strategic management audit.
American firms that seem insulated from foreign competition today may be vulnerable
tomorrow.
Shifts in the nature and location of production systems, especially to China and India,
are reducing the response time to changing market conditions.
Laser eye surgery would be considered a substitute product for eyeglasses and contact
lenses.
The aim of an external audit is to develop an exhaustive list of every possible factor that
could influence the business.
Crises and firefighting in an organization give managers the extra time needed to plan
ahead.
Which basic question should the vision statement answer?
A) What is our business?
B) How can we improve ourselves?
C) What do we want to become?
D) Who are our stakeholders?
E) How can we increase profitability?
With regard to the visible or hidden issue, most executives agree that
A) the SEC should regulate whether or not companies make their strategic information
visible.
B) some strategic information should remain confidential to top managers.
C) a company has gone too far when it takes steps to ensure that strategic information is
not disseminated beyond “the inner circle.”
D) the potential benefit of improved employee and stakeholder motivation and input is
not worth the risk of rival firms easily knowing and exploiting a firm’s strategies.
E) keeping strategies secret from employees and stakeholder will likely improve
communication, understanding, and commitment.
According to Greenley, strategic management offers all of the following benefits
EXCEPT
A) increased discipline.
B) enhanced communication.
C) increased synergy.
D) increased resistance to change.
E) more effective allocation of time and resources.
Which of the following is NOT an accepted approach for determining a business’
worth?
A) Determining what the firm owns
B) Determining what the firm earns
C) Determining what the firm’s return on investment has been
D) Determining what the firm will bring in the market
E) All of the above are accepted approaches.
According to the text, the first social responsibility of any business is to
A) make enough profit to cover the costs of the future, because if this is not achieved
then no other social responsibility can be met.
B) avoid laying off employees so as to protect the employees’ livelihood, even if that
decision may force the firm to liquidate.
C) engage in social activities that have no economic benefits, to avoid the appearance of
a public relations gimmick.
D) offer courses and training in environmental management.
E) None of the above
The historical trend of people moving from ________ has dramatically slowed.
A) the Northeast to the Sunbelt
B) the West to the Midwest
C) the Northeast to the Midwest
D) the Sunbelt to the West
E) the West to the Northeast
What category of ratios measures how effectively a firm can maintain its economic
position in the growth of the economy and industry?
A) Profitability
B) Liquidity
C) Leverage
D) Activity
E) Growth
Firms located in which quadrant of the Grand Strategy Matrix are in an excellent
strategic position?
A) I
B) II
C) III
D) IV
E) V
When the PE firm Clayton, Dubilier & Rice bought David’s Bridal from the PE firm
Leonard Green & Partner LP this was an example of
A) dividend recapitalization.
B) a joint venture.
C) a secondary buyout.
D) a leveraged buyout.
E) a merger.
Which strategy would be effective when the stockholders of a firm can minimize their
losses by selling the organization’s assets?
A) Integration
B) Differentiation
C) Diversification
D) Cost leadership
E) Liquidation
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
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
What percent of strategies formulated are successfully implemented?
A) Less than 10 percent
B) About 30 percent
C) Between 40 and 60 percent
D) Approximately 66 percent
E) More than 80 percent
Who is referred to as “the father of modern management”?
A) Cleland
B) Campbell
C) Drucker
D) McGinnis
E) Yeung
The Family Farmer Bankruptcy Act of 1986 created which type of bankruptcy?
A) Chapter 7
B) Chapter 8
C) Chapter 9
D) Chapter 12
E) Chapter 13
Discuss how business ethics, social responsibility, and sustainability are interrelated.
What four basic steps comprise the controlling function of management?
Compare and contrast strategic planning with strategic management.
Discuss how work life/home life balance is being addressed by organizations.
What are some of the reasons for and against the U.S. adopting international financial
reporting standards (IFRS).
Although there are many marketing variables that impact the success or failure of
strategy-implementation efforts, two variables are central to the process. What are these
variables? Discuss why they are so important.
Discuss the I/O approach in relation to competitive advantage.