Most traditional retailers have tried in vain to use their online sales to boost in-store
sales.
Wild guesses should never be part of the planning process.
Keeping informed about the number and the nature of competitors is easier when doing
business internationally.
Trade barriers are one of the unique and diverse risks that face multinational
corporations.
Undesirable conduct such as distorting the records can be a result of overemphasis on
achieving objectives.
Benchmarking is an analytical tool used to determine whether a firm’s value chain
activities are competitive compared to rivals.
In terms of number of employees, restructuring usually involves increasing the size of
the firm.
Management by intuition can be defined as operating from the
“I’ve-already-made-up-my-mind-don’t-bother- me-with-the-facts mode.”
Chapter 9 bankruptcy applies to municipalities.
Low-performing firms typically underestimate their competitor’s strengths and
overestimate their own firm’s strengths.
Strategists are usually found in higher levels of management and have considerable
authority for decision-making in the firm.
The mission statement should be short € preferably one sentence.
The test of an effective evaluation system is its complexity.
Union Pacific’s mission statement focuses on transportation rather than on railroads
because good mission statements identify the utility of a firm’s products to its
customers.
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.
What percent of the world’s population lives in the United States?
A) 5
B) 10
C) 15
D) 85
E) 95
U.S. managers in Japan have to be careful about ________, whereby Japanese workers
expect supervisors to alert them privately of changes rather than informing them in a
meeting.
A) feng shui
B) nemaswashio
C) wa
D) guanxi
E) inhwa
Under the U.S. Dodd-Frank Act, employees are encouraged to report possible acts of
bribery and are awarded ________ percent of any financial sanctions against
companies.
A) 5-10
B) 10-30
C) 25-30
D) 30-40
E) 40-60
In most industries, the major costs of producing a product or service are incurred within
A) marketing.
B) management.
C) research and development.
D) operations.
E) management information systems.
What term is used to describe specific guidelines, methods, procedures, rules, forms
and administrative practices established to support and encourage work toward stated
goals?
A) Long-term objectives
B) Policies
C) Annual objectives
D) Strategies
E) Values
Which of the following variables are NOT directly affected by market segmentation?
A) Product
B) Place
C) Process
D) Promotion
E) Price
In projected financial statements, what is used as a plug figure?
A) Retained earnings
B) Fixed assets
C) The cash account
D) Long-term liabilities
E) Stockholders’ equity
The three all-encompassing internal resource categories used in the Resource-Based
View are physical resources, human resources, and
A) financial resources.
B) shareholder resources.
C) organizational resources.
D) non-renewable resources.
E) technological resources.
All of the following are guidelines for effective strategic planning EXCEPT
A) it should be simple and nonroutine.
B) it should be a learning process for all managers and employees.
C) it should be a paper process more than a people process.
D) it should not disregard qualitative information.
E) it should not be a formal system for control.
What marketing function includes test marketing?
A) Selling products/services
B) Pricing
C) Customer analysis
D) Product/service planning
E) Distribution
PepsiCo is the largest food-and-beverage firm in Russia.
A benefit of using projected balance sheets and income statements is that
A) an organization can compute projected financial ratios under various scenarios.
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
The general public is especially interested in ________, whereas stockholders are more
interested in ________.
A) environmental concerns; social responsibility
B) social responsibility; the treatment of employees
C) the treatment of employees; environmental concerns
D) profitability; social responsibility
E) social responsibility; profitability
The valuation of a firm’s worth
A) is an exact science.
B) requires both qualitative and quantitative skills.
C) is based solely on financial facts.
D) is known only to the firm’s accountants.
E) is static.
Define cultural products, and give six examples of them.
Which stage in the strategic-management process is most difficult? Explain why.
Define what strategists are. Describe what they do in an organization.
Define and give an example of three intensive strategies.
List the two major characteristics of an effective mission statement.