Segmentation often reveals that large, random fluctuations in demand actually consist
of several small, predictable, and manageable patterns.
In practice, critical technology decisions are too often delegated to lower organizational
levels or are made without an understanding of their strategic implications.
Many people consider it unethical for a firm to be socially irresponsible.
The acquisition of human-resources software and consulting services company Kenexa
by IBM is an example of related diversification.
For consumers who are price-sensitive, cost leadership emphasizes producing
standardized products at a very low per-unit cost.
By occasionally monitoring external events, companies should be able to identify when
change is required.
With a divisional structure, it is possible that competition between divisions may
become so intense that it leads to improved sharing of ideas and resources for the
common good of the firm.
Viewing every business as either a Star, Cash Cow, Dog, or Question Mark is an
oversimplification.
The trend in the U.S. is toward larger boards, with an average of 18 members being the
norm.
The basic premise of the research-based view is that the mix, type, amount, and nature
of a firm’s internal resources should be considered first and foremost in devising
strategies that can lead to sustainable competitive advantage.
Managers must be very formal in strategic planning because formality fosters flexibility
and creativity.
Corrective action should do all of the following EXCEPT
A) capitalize upon internal strengths.
B) avoid external opportunities.
C) avoid external threats.
D) improve internal weaknesses.
E) strengthen an organization’s competitive position.
Perhaps the most dramatic new market segmentation strategy is the
A) targeting of regional tastes.
B) focusing on universal product.
C) preference of international over domestic sales.
D) treatment of industrial markets.
E) none of the above
Which word or phrase would most be best to use in written objective statements?
A) Maximize
B) Minimize
C) 10% increase
D) Adequate
E) As soon as possible
Which of the following is a potential advantage of conducting international operations?
A) Competitors in foreign markets may not exist, or competition may be less intense
than in domestic markets.
B) Dealing with two or more monetary systems can complicate international business
operations.
C) Differing language, culture, and value systems can make communication difficult.
D) Gaining an understanding of regional organizations is difficult but is often required
in doing business internationally.
E) All of the above
Policies
A) let both employees and managers know what is expected of them.
B) provide a basis for management control.
C) allow coordination across organizational units.
D) reduce the amount of time managers spend making decisions.
E) all of the above
What percent of the world’s population lives outside the United States?
A) 55
B) 65
C) 75
D) 85
E) 95
All of these are pitfalls an organization should avoid in strategic planning EXCEPT
A) using plans as a standard for measuring performance.
B) using strategic planning to gain control over decisions and resources.
C) failing to involve key employees in all phases of planning.
D) too hastily moving from mission development to strategy formulation.
E) being so formal in planning that flexibility and creativity are stifled.
According to researchers, all of the following encourage individuals to accept change
EXCEPT
A) having a cognitive understanding of the changes.
B) having a sense of control over the situation.
C) having an awareness that necessary actions are going to be taken to implement
change.
D) participating in strategy-evaluation activities.
E) being overpowered by the nature, types, and speed of changes.
What category of ratios includes return on total assets and return on stockholders’
equity?
A) Leverage
B) Activity
C) Profitability
D) Growth
E) Liquidity
Which function of management is concerned with span of control and chain of
command?
A) Planning
B) Organizing
C) Controlling
D) Staffing
E) Motivating
All of the following are reasons strategy evaluation is more difficult today EXCEPT
A) a dramatic increase in the environment’s complexity.
B) the increasing number of variables.
C) the increase in the number of both domestic and world events affecting
organizations.
D) the increasing time span for which planning can be done with any degree of
certainty.
E) the rapid rate of obsolescence of even the best plans.
Business analytics
A) is retrospective rather than predictive.
B) enables a firm to learn from experience and to make current and future decisions
based on prior information.
C) uses mathematical models that enhance decision making at only the topmost levels
of management.
D) can enable a company to benefit from measuring risk, but it cannot enable the
company to manage risk.
E) as an industry is experiencing a decline in revenue.
The Wall Street Journal article “America Gone Wild”
A) reports an astonishing resurgence in wildlife populations in the USA.
B) cites that deer-vehicle crashes in the USA cost $1.5 billion a year.
C) describes damage done to U.S. infrastructure by the resurgence in wildlife.
D) reveals that the total annual cost of wildlife damage in the USA exceeds $28 billion.
E) All of the above
The strategic-management process for multinational firms is ________ for purely
domestic firms, and the process is ________ for international firms.
A) conceptually the same as; more simple
B) conceptually the same as; more complex
C) conceptually different than; more simple
D) conceptually different than; more complex
E) conceptually the same; less important
According to the U.S. Bureau of Labor Statistics, which of the following is TRUE?
A) The percent of wage and salary workers who were members of a union in the USA
increased from 2010 to 2011.
B) Workers in education, training and library occupations had the highest unionization
rate.
C) Black workers were less likely to be union members than were white, Asian, or
Hispanic workers.
D) Private sector workers had a union membership rate more than five times higher that
of public-sector workers.
E) Among states, North Carolina had the highest union membership rate.
Name five examples of marketing decisions that may require policies.
King and Cleland recommend that organizations carefully develop a written mission
statement for four reasons. List and describe them.
What are the three particular challenges that strategists face today?
Identify and describe three approaches for determining a business’ worth.
Discuss at least five potential advantages to initiating, continuing, and/or expanding
international operations.
List five reasons why preserving the environment should be a permanent part of doing
business.
Define cultural products, and give six examples of them.