When performing projected financial analysis, the balance sheet should be prepared
before the income statement.
A mission statement is a declaration of an organization’s financial status.
A cost/benefit analysis is an appraisal of the costs, benefits, and risks associated with
marketing decisions.
A dual bonus system based on both annual objectives and long-term objectives is
becoming common.
Stars, Question Marks, Cash Cows, and Dogs are the four quadrants exhibited by the
BCG Matrix.
Motor vehicle firms in the United States are vulnerable when the value of the dollar
falls against the yen and euro.
Holding a meeting at which conflicting parties present their views and work through
their differences is part of the defusion technique of managing conflict.
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
Which of these basic questions should a vision statement answer?
A) What is our business?
B) Who are our employees?
C) What are our challenges?
D) What do we want to become?
E) Who are our competitors?
Which strategies use a firm’s strengths to avoid or reduce the impact of external threats?
A) SO
B) WO
C) SW
D) ST
E) WT
What becomes a more attractive financing technique when cost of capital is high?
A) Stock issuance
B) Debt
C) Cost cutting
D) Borrowing
E) Staying privately owned
A benefit of using projected balance sheets and income statements is that
A) the impact of various implementation decisions can be forecasted.
B) money can be put aside to pay future income taxes.
C) insurance needs can be computed.
D) it is useful in analyzing past performance.
E) all of the above
Which state generates the greatest number of megawatts of wind power?
A) Texas
B) Iowa
C) California
D) Minnesota
E) New Jersey
A strong ________ heritage underlies the study of strategic management.
A) military
B) government
C) political
D) social
E) cultural
Which of the following is the first step in developing an IFE Matrix?
A) Determining the organization’s structure
B) Summing the weighted scores for each variable
C) Listing key internal strengths and weaknesses
D) Identifying the organization’s functions of business
E) Assigning a weight to each factor
________ management deals with inputs, transformations, and outputs that vary across
industries and markets.
A) Marketing
B) Financial
C) Research and development
D) Production and operations
E) Information systems
What quantitative criteria are commonly used to evaluate strategies? Give several
examples of these criteria.
Which of the following has largely refrained from protectionist measures?
A) the EU
B) the U.S.A.
C) India
D) Russia
E) All of the above
If total fixed costs are $10,000, variable costs per unit are $5, and the price per unit is
$15, what is the breakeven quantity?
A) 500
B) 667
C) 1,000
D) 2,000
E) 5,000
Which of the following is NOT a key attribute that serves as one of the evaluative
criteria for Fortune’s “America’s Most Admired Companies”?
A) People management
B) Innovativeness
C) Financial soundness
D) Amount of physical resources
E) Social responsibility
Identifying and evaluating key social, political, economic, technological and
competitive trends and events comprise
A) developing an effective mission statement.
B) conducting an internal audit.
C) performing an external audit.
D) formulating strategy.
E) implementing strategy.
In 2013, ________ of CEO compensation was directly associated with the performance
of the firm, rather than salary.
A) less than 10 percent
B) almost 25 percent
C) over 50 percent
D) exactly 75 percent
E) a full 100 percent
What type of strategies would you recommend when a firm’s SPACE Matrix directional
vector has the coordinates (-2, +3)?
A) Aggressive
B) Conservative
C) Competitive
D) Defensive
E) Integrative
Which of the following is NOT a way that companies can help create an ethical culture
in their organization?
A) Outlining ethical expectations
B) Giving examples of ethical situations that commonly occur in their businesses
C) Providing code-of-conduct manuals
D) Creating interactive exercises that pose hypothetical ethical dilemmas
E) Discouraging whistle-blowing
Which of the following is NOT a reason for the increasing difficulty of evaluating
strategies?
A) Product life cycles are longer.
B) Domestic and world economies are less stable.
C) Product development cycles are shorter.
D) Technological advancement is more rapid.
E) Change is occurring more frequently.
A business’ mission is the foundation for all of the following EXCEPT
A) priorities.
B) strategies.
C) plans.
D) employee wage rates.
E) work assignments.
During what stage of strategic management are a firm’s specific internal strengths and
weaknesses determined?
A) Formulation
B) Implementation
C) Evaluation
D) Feedback
E) Goal-setting
What are the five major types of external forces that should be examined as part of an
external audit? Give an example of each type of force.
Compare and contrast vision statements with mission statements.
Which stage in the strategic-management process is most difficult? Explain why.
What are the three commonly used strategies or approaches for implementing changes
in an organization? Give an advantage and/or disadvantage for each type of approach.
Discuss some ways in which management information systems can benefit a company.
Describe the positive features and limitations of QSPM.
Give five sets of coordinates of SPACE Matrix directional vectors that would suggest
conservative strategies to be most appropriate.
Discuss the importance of the implementation phase of strategic management.
Discuss PE firms and explain what a secondary buyout is.