The difference between political risks and economic risks is that:
A. political risks stem from instability or weakness in national governments, while
economic risks stem from the stability of a country’s monetary system, and its economic
and regulatory policies.
B. political risks stem from stability in foreign business, while economic risks stem
from an excess of property right protections.
C. political risks stem from hostility to foreign currencies, while economic risks stem
from the instability of the monetary system.
D. political risks stem from exchange rate fluctuations, while economic risks stem from
hostility to foreign business.
E. political risks stem from the stability of a country’s monetary system, while
economic risks stem from instability in national business.
Whether supplier-seller relationships in an industry represent a strong or weak source of
competitive pressure is a function of:
A. whether the profits of suppliers are relatively high or low.
B. the average number of suppliers that each seller/industry member purchases from.
C. how aggressively rival industry members are trying to differentiate their products.
D. whether demand for supplier products is high and they are in short supply.
E. whether the prices of the items being furnished by the suppliers are rising or falling.
Six Sigma’s DMADV process of define, measure, analyze, design, and verify is a
particularly good vehicle for:
A. improving performance when there are small variations in how well an activity is
performed. If there are wide variations, then the Six Sigma DMVSI process has to be
used.
B. achieving 100 percent control over how a task is performed and eliminating 100
percent of the variability in how a task is performed.
C. improving performance when there are wide variations in how well an activity is
performed.
D. developing new processes or products at Six Sigma quality levels.
E. improving customer satisfaction, whereas Six Sigma improves manufacturing
processes.
A company’s mission statement does
A. identify the company’s services and products.
B. specify the buyer’s needs that the company seeks to satisfy.
C. identify the customer or market that the company intends to serve.
D. give the company its own identity.
E. explain “where we are headed.”
Masterful strategies come from:
A. successful managerial efforts to develop a sound strategic vision.
B. doing a very thorough job of strategic planning.
C. involving as many company personnel as possible in the strategy-making process.
D. crafting a strategy that mimics the best parts of the strategies of the industry leaders.
E. doing things differently from competitors where it counts rather than running with
the herd.
The extent to which firms are meeting objectives suggests they:
A. are likely to prosper in the future.
B. are likely to continue their present strategy with only minor fine-tuning.
C. are virtually certain to make fresh strategic moves.
D. recognize ‘status quo” as the best course of action to adopt.
E. realize refocusing will ensure competitive gains.
The payoff of doing a thorough SWOT analysis is:
A. identifying whether the company’s value chain is cost-effective vis–vis the value
chains of rivals.
B. helping strategy-makers benchmark the company’s resource strengths against
industry key success factors.
C. enabling a company to assess its overall competitive position relative to its key
rivals.
D. revealing whether a company’s market share, measures of profitability, and sales
compare favorably or unfavorably vis–vis key competitors.
E. assisting strategy-makers in crafting a strategy that is well-matched to the company’s
resources and capabilities, its market opportunities, and the external threats to its future
well-being.
Which one of the following is NOT an appropriate step management can take to change
a problem culture?
A. Identifying which aspects of the present culture are supportive of good strategy
execution and which ones are not
B. Specifying what new actions, behaviors, and work practices should be prominent in
the “new” culture
C. Appointing a team of key managers and employees to design a plan for cultural
change and then lead the internal effort to change the culture
D. Talking openly about the problems of the present culture and how new behaviors
will improve performance
E. Employing visible, forceful actions-both substantive and symbolic-to ingrain a new
set of behaviors, practices and cultural norms
Companies racing for global market leadership:
A. generally have to consider establishing competitive positions in the markets of
emerging countries.
B. are well-advised to avoid all the risks and problems of competing in emerging
country markets.
C. seldom have the resource capabilities it takes to be effective in competing in
emerging country markets and usually are at a strong competitive disadvantage to the
domestic market leaders.
D. can usually be expected to earn sizable profits quickly in emerging country markets.
E. usually encounter very low barriers in entering the markets of emerging countries.
The idea behind benchmarking and best practices is to:
A. identify which companies are the best performers of a strategically relevant activity
and then copy their methods exactly.
B. search the world for a company that performs a strategically relevant task or value
chain activity at the lowest possible cost and then use business process reengineering
techniques to try to meet or beat the costs of the world’s low-cost performer of that
activity.
C. perform each activity in the industry value chain according to standard industry
practice and then regularly benchmark the company’s performance to see if it is actually
achieving the industry standard.
D. identify companies that are the best performers of an activity and then “adapt” their
practices to fit the company’s own specific circumstances and operating requirements.
E. determine whether a company has a “world-class” value chain.