JIT significantly increases the costs of implementing strategies.
After decades of debate and struggle, firms have finally definitively determined the
appropriate social policies.
External audits attempt to identify key variables that offer actionable responses.
Orphan drugs offer pharmaceutical companies no economic incentive for profitable
development and distribution.
More Americans are moving than staying in place.
According to James Van Horne the basic decision areas of finance are: the investment
decision, the financing decision, and the dividend decision.
A Competitive Profile Matrix allows strategists to summarize and evaluate economic,
social, cultural, demographic, environmental, political, governmental, legal,
technological, and competitive information.
According to Campbell and Yeung, the process of developing a mission statement
should create an “emotional bond” and ‘sense of mission” between the organization and
its employees.
Test marketing is used more frequently by industrial companies than consumer goods
companies.
Dividend decisions concern issues such as the percentage of earnings paid to
stockholders, the stability of dividends paid over time, and the repurchase or issuance of
stock.
Running a competitive intelligence program requires lots of people, computers, and
other resources.
A best-value strategy offers products or services to a wide range of customers at the
best price-value available on the market.
One R&D strategy is to be an innovative imitator of successful products.
In an EFE Matrix, opportunities often receive higher weights than threats, but threats
too can receive high weights if they are especially severe or threatening.
According to Porter, which strategy offers products or services to a niche group of
customers at the lowest price available on the market?
A) Cost Leadership – Low Cost
B) Cost Leadership – Best Value
C) Focus – Low Cost
D) Focus – Best Value
E) Differentiation
When developing an organizational chart, you should
A) recommend dual titles for executives.
B) use the title “president” for the top person.
C) make sure that the chief financial officer is not at the same level as the chief
operating officer.
D) have division presidents report to a chief operating officer.
E) have the controller or treasurer report directly to the president.
Life-directing attitudes that serve as behavioral guidelines are called
A) values.
B) rites.
C) beliefs.
D) metaphors.
E) legends.
Sustainability refers to the extent that an organization’s operations and actions _______
the natural environment.
A) protect
B) mend
C) preserve
D) reflect good stewardship of
E) All of the above
Which of these strategies is effective when the number of suppliers is small and the
number of competitors is large?
A) Conglomerate diversification
B) Forward integration
C) Concentric diversification
D) Backward integration
E) Horizontal diversification
In the BCG Matrix, which element represents the industry growth rate in sales,
measured in percentage terms?
A) x-axis
B) y-axis
C) first quadrant
D) second quadrant
E) third quadrant
The responsibilities of a director of competitive analysis include all of the following
EXCEPT
A) researching special issues
B) disseminating information on a timely basis
C) recognizing what information is important and who needs to know
D) conducting corporate espionage
E) analyzing data
_______ are the individuals primarily responsible for ensuring that high ethical
principles are espoused and practiced in an organization.
A) Non-management employees
B) Mid-level managers
C) Shareholders
D) Strategists such as CEOs and business owners
E) Governmental regulatory bodies
In the BCG Matrix, how would a division with a low relative market share position in a
high growth industry be described?
A) Question Mark
B) Cash Cow
C) Star
D) Stuck-in-the-middle
E) Dog
The times-interest-earned ratio would be classified as a(n)
A) activity ratio.
B) leverage ratio.
C) profitability ratio.
D) liquidity ratio.
E) growth ratio.
Controls need to be ________ rather than ________.
A) action-oriented; information-oriented
B) cultural; political
C) qualitative; quantitative
D) measurable; timely
E) universal; diverse
What is the best time to develop a mission statement?
A) Before a business is opened
B) When the firm is successful
C) When the firm is in financial trouble
D) When the firm is in legal trouble
E) When the firm encounters competition
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.
What action involves reconfiguring or redesigning work, jobs, and processes for the
purpose of improving costs, quality, service, and speed?
A) Restructuring
B) Downsizing
C) Reengineering
D) Delayering
E) Benchmarking
What effect do trends in the dollar’s value have on companies in different industries and
in different locations?
A) Significant and equal
B) Marginal and equal
C) Significant and unequal
D) Insignificant and unequal
E) No significant impact
Which of these is true about strategy implementation?
A) It is positioning forces before the action.
B) It focuses on effectiveness.
C) It is primarily an operational process.
D) It is primarily an intellectual process.
E) It requires intuitive skills.
Organizations that conduct business operations across national borders are called
A) protectionists.
B) national firms.
C) multinational corporations.
D) domestic companies.
E) all of the above