Joint ventures and partnerships between domestic and foreign firms are becoming the
exception rather than the rule.
The process of strategic management is facilitated immensely in firms that have an
effective information system.
Divestiture is selling all of a company’s assets, in parts, for their tangible worth.
When developing a vision statement, input should be received from as many managers
as possible.
The focus of restructuring is changing the way work is actually carried out.
Besides net profit from operations and the sale of assets, two basic sources of funds for
an ongoing enterprise are debt and equity.
Which variable would be considered part of the “product” element of the marketing
mix?
A) Advertising
B) Packaging
C) Payment terms
D) Inventory levels and location
E) Publicity
Which strategy should be implemented when a division is responsible for an
organization’s overall poor performance?
A) Backward integration
B) Divestiture
C) Forward integration
D) Cost leadership
E) Related diversification
What can be defined as the art and science of formulating, implementing and evaluating
cross-functional decisions that enable an organization to achieve its objectives?
A) Strategy formulation
B) Strategy evaluation
C) Strategy implementation
D) Strategic management
E) Strategic leading
Workplace romance
A) is defined as unwelcome sexual advances, requests for sexual favors, and other
verbal or physical conduct of a sexual nature.
B) is defined as illegal by the Equal Employment Opportunity Commission.
C) should be strictly forbidden by organizations.
D) simply happens so organizations should determine how to best manage the
phenomena.
E) is an intimate relationship between two employees, one of whom is not consenting.
All of the following statements are true EXCEPT
A) ISO is the world’s largest developer of sustainability standards.
B) ISO standards are widely accepted all over the world.
C) ISO has legal authority to enforce its regulations’ implementation.
D) ISO standards are voluntary.
E) ISO itself does not regulate or legislate.
Quantitative criteria commonly used to evaluate strategies are
A) cash budgets.
B) Balanced Scorecards.
C) Capital Asset Pricing Models.
D) financial ratios.
E) present value analyses.
The average level of union membership across the whole of the European Union,
weighted by the numbers employed in the different member states, is ________ percent
compared to about ________ percent in the USA.
A) 11; 23
B) 15; 44
C) 23; 11
D) 51; 26
E) 70; 30
________ can enable firms to learn the technology, culture, and business practices of
other people and to make contacts with potential customers, suppliers, creditors, and
distributors in foreign countries.
A) Economies of scale
B) Joint ventures
C) Low-cost production facilities
D) Reduced tariffs
E) Domestic operations
Multidimensional scaling is used to determine
A) the size of a new building.
B) the size of a new department.
C) the amount of high-tech equipment a firm needs.
D) perceptual mapping.
E) market segmentation.
Exactly 70 percent of the world’s population lives outside of the USA.
Why is market segmentation an important variable in strategy implementation?
A) It allows a small firm to compete successfully with a large firm.
B) It allows a firm to operate with limited resources.
C) Mass production, mass distribution, and mass advertising are not always required.
D) Market segmentation decisions directly affect marketing mix variables.
E) All of the above
According to I/O theorists, which of the following contributes LEAST to firm’s
performance?
A) Economies of scale
B) Barriers to market entry
C) Product differentiation
D) Internal resources
E)
Changes in which of the following can significantly affect firms?
A) Patent laws
B) Antitrust legislation
C) Tax rates
D) Lobbying activities
E) All of the above
A particularly important twenty-first-century challenge facing all strategists today is
A) deciding whether the process should be more an art or a science.
B) deciding whether strategies should be visible or hidden from stakeholders.
C) deciding whether the process should be more top-down or bottom-up in their firm.
D) all of the above
E) none of the above
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
Joint ventures and partnerships between domestic and foreign firms are
A) falling out of favor.
B) increasingly difficult to engineer.
C) the exception rather than the rule.
D) extremely commonplace.
E) subject to too many regulations to be feasible.
Information collection, retrieval, and storage can be used to create competitive
advantages in ways such as
A) cross-selling to customers.
B) monitoring suppliers.
C) keeping managers and employees informed.
D) coordinating activities among divisions.
E) all of the above
Name at least six reasons for performing mergers or acquisitions.
List some guidelines for when market development would be a particularly good
strategy to pursue.
Discuss guidelines used to determine whether a firm should conduct R&D internally or
externally.
Discuss the process of performing an external audit.
Explain the concept of protectionism.
Discuss a code of business ethics and its role in an organization.
Discuss four common problems that cause joint ventures to fail.