On the x-axis of the IE Matrix, an internal factor evaluation score of 2.5 represents a
weak internal position.
More time and effort are required to identify and evaluate external trends and events in
domestic corporations than in multinational ones.
Viewing every business as either a Star, Cash Cow, Dog, or Question Mark is an
oversimplification.
A firm should pursue defensive strategies if the coordinates of a SPACE directional
vector are (+2, +3).
The BCG Matrix does not reflect whether or not various divisions or their industries are
growing over time.
A conservative rule of thumb for measuring the value of a firm is to establish a
business’ worth to be 10 times the firm’s most current annual profit.
Foreign revenue as a percentage of total company revenues is approaching 20 percent
for Colgate-Palmolive.
Long-term objectives represent the results expected from pursuing certain strategies.
The purpose of matching key factors is to generate feasible alternative strategies.
A financial budget is a document that details how funds will be obtained and spent for a
specified period of time.
With the matrix structure it is common for functional resources to be duplicated.
Punctuality is generally revered in all cultures of the world.
Which group generally softens up executives with praise before they criticize?
A) Americans
B) Italians
C) Germans
D) French
E) All of the above
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.
What term is defined as “a systematic process of objectively obtaining and evaluating
evidence regarding assertions about economic actions and events to ascertain the degree
of correspondence between these assertions and established criteria, and
communicating the results to interested users?”
A) Auditing
B) Innovation
C) R&D
D) Strategic Management
E) Accounting
In South Korea, activities involve concern for ________, or harmony based on respect
of hierarchical relationships, including obedience to authority.
A) guanxi
B) inhwa
C) feng shui
D) nemaswashio
E) wa
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.
Why do changes in company strategy often require changes in the way an organization
is structured?
A) Structure dictates how goals and objectives will be established.
B) Structure dictates how resources will be allocated.
C) Structure should be designed to facilitate the strategic pursuit of a firm.
D) All of the above
E) None of the above
Conflict in an organization is
A) always bad.
B) always good.
C) not always bad.
D) a sign of bankruptcy.
E) completely avoidable.
Hawaii, California, and ________ already have no majority race or ethnic group.
A) New York
B) New Jersey
C) New Hampshire
D) New Mexico
E) all of the above
Increased education and diversity of the workforce at all levels are reasons why
A) the top-down approach is preferred.
B) the bottom-up approach is untenable.
C) only top executives have the experience and acumen to make strategy decisions.
D) middle- and lower-level managers, and even nonmanagers, should be involved in the
strategic planning process.
E) the horizontal approach is the most pragmatic choice.
Which strategy would be most appropriate when the distinctive competencies of two or
more firms complement each other especially well?
A) Conglomerate diversification
B) Divestiture
C) Joint venture
D) Retrenchment
E) Integration