An organization’s present strategies, objectives and mission provide a basis for
generating and evaluating feasible alternative strategies, coupled with the external and
internal audit information.
Marketing research is the systematic gathering, recording and analyzing, of data about
problems relating to the marketing of goods and services.
The strategic-management process is more complex for international firms due to more
variables and relationships.
A limitation of financial budgets is that they can hide inefficiencies if based solely on
precedent rather than on periodic evaluation of circumstances and standards.
Hiring top executives from rival firms is a way companies obtain competitive
intelligence.
A divisional structure by product is most effective when
A) special emphasis needs to be placed on specific products.
B) an organization offers few products.
C) an organization’s products or services differ substantially.
D) special emphasis needs to be placed on specific services.
E) all of the above
What kind of strategy is retrenchment?
A) A turnaround strategy
B) An expansion strategy
C) A diagonal strategy
D) An intensive strategy
E) An offensive strategy
Where is the largest seaport, in terms of ship container traffic processed annually?
A) Hong Kong
B) Shanghai
C) Singapore
D) Los Angeles
E) New York
When a domestic company first begins to export to India, it is an example of
A) horizontal integration.
B) backward integration.
C) forward integration.
D) concentric diversification.
E) market development.
Financial ratios are used to compare a firm’s performance over different time periods, to
compare the firm’s performance to industry averages, and to compare a firm’s
performance with
A) overall business standards.
B) projected goals.
C) the performance of suppliers.
D) non-financial ratios.
E) the performance of competitors.
Corrective actions are almost always ________ except when external and internal
factors have not significantly changed and the firm is progressing satisfactorily toward
achieving stated objectives.
A) unnecessary
B) needed
C) undesirable
D) prohibitively expensive
E) futile
Who is referred to as the father of modern management?
A) Deming
B) Peters
C) Drucker
D) McGinnis
E) Smith
Which approach for managing and resolving conflict involves ignoring the problem in
hopes that the conflict will resolve itself?
A) Avoidance
B) Resistance
C) Compliance
D) Defusion
E) Confrontation
Under which condition would a differentiation strategy be especially effective?
A) when the target market niche is large, profitable and growing
B) when technological change is fast paced and competition revolves around rapidly
evolving product features
C) when industry leaders do not consider the niche to be crucial to their own success
D) when the industry has many different niches and segments, thereby allowing a
company to pick a competitively attractive niche suited to its own resources
E) when few, if any, other rivals are attempting to specialize in the same target segment
All of the following are key questions that can reveal internal strengths and weaknesses
in the management department EXCEPT
A) Is the organization’s structure appropriate?
B) Are reward and control mechanisms effective?
C) Are the organization’s products positioned well against competing products?
D) Does the firm use strategic-management concepts?
E) Do managers delegate authority well?
Organizations should take a(n) ________ approach in their industry.
A) adversarial rather than a collegial
B) collegial rather than an adversarial
C) reactive rather than a proactive
D) proactive rather than a reactive
E) cooperative rather than a competitive
Which of the following has largely refrained from protectionist measures?
A) the EU
B) the U.S.
C) India
D) Russia
E) All of the above
Special natural environment issues include all of the following EXCEPT
A) ozone depletion
B) destruction of animal habitats
C) pollution control
D) spreading computer viruses
E) developing biodegradable products and packages
The ________ decision is the allocation and reallocation of capital and resources to
projects, products, assets, and divisions of an organization.
A) investment
B) dividend
C) financing
D) restructuring
E) benchmark
A conservative rule of thumb is to establish a business’ worth as ________ the firm’s
current annual profit.
A) twice
B) three times
C) five times
D) ten times
E) fifteen times
________ recently cut its corporate tax rate by five percentage points, leaving
________ with the highest corporate tax rate among all the nations in the world.
A) The U.S.; Brazil
B) Brazil; Japan
C) Japan; Brazil
D) Brazil; the U.S.
E) Japan; the U.S.
What is NOT one of Michael Porter’s five competitive forces?
A) New entrants
B) Rivalry among existing firms
C) Bargaining power of unions
D) Bargaining power of suppliers
E) Bargaining power of buyers
Which stage of the strategy-formulation framework involves the Quantitative Strategic
Planning Matrix?
A) Stage 1
B) Stage 2
C) Stage 3
D) Stage 4
E) Stage 5
What is the most common type of financial budget?
A) Cash
B) Sales
C) Profits
D) Factory
E) Flexible