In the economists’ “perfectly competitive” industry jockeying for position is unbridled
and entry to the industry is
A. Very easy
B. Prohibited by regulations
C. Moderated due to national security concerns
D. Very hard
All businesses exist in a(n) _____ system.
A. open
B. closed
C. insular
D. protected
A firm with a strategic goal of reducing executive turnover would use _________ to
provide an incentive for longer executive tenure.
A. Cash
B. Stock options
C. Golden parachutes
D. Golden handcuffs
Which of the following considerations is critical at the examination stage of the value
chain analysis?
A. All primary activities differentiate the firm
B. The managers’ choice of activities to be examined influences the mission statement
of the firm
C. The nature of value chains and the relative importance of the activities within them
are standard across industries
D. The relative importance of value activities can vary by a company’s position in a
broader value system that includes the value chains of its upstream suppliers and
downstream customers or partners
Freedom to participate in collective bargaining is a typical claim of which stakeholder
group?
A. Stockholders
B. Creditors
C. Employees
D. Society
Which kind of bankruptcy provides time and protection to the debtor firm?
A. Chapter 5 bankruptcy
B. Chapter 7 bankruptcy
C. Chapter 11 bankruptcy
D. Chapter 12 bankruptcy
Leaders galvanize commitment to embrace change through clarifying strategic intent,
building an organization, and
A. by strategic planning
B. developing a mission
C. developing a Vision
D. shaping organizational culture
Which key functional area is critical at the introduction stage of industry evolution and
which strategy should be focused on?
A. Production; successor products
B. Engineering; market penetration
C. Sales; consumer loyalty and market share
D. Finance; maximum investment recovery
A global firm competing in a global industry must:
A. Be responsive to global conditions only
B. Be responsive to both global and local conditions
C. Be responsive to local conditions only
D. Compete in multi-domestic industry also
Highly profitable buyers are usually:
A. Less price sensitive
B. More price sensitive
C. Very quantity oriented
D. Not very quantity oriented
A chaebol:
A. Is like a keiretsu except financed through government banking groups
B. Is run by the owners
C. Is financed through stock or bond sources
D. Is found in Viet Nam
The learning curve effect is an example of which barrier to entry?
A. Cost disadvantages independent of size
B. Product differentiation
C. Economies of scale
D. Government policy
The type of strategy typically accomplished either by cost reduction and/or asset
reduction is known as:
A. Market development
B. Innovation
C. Liquidation
D. Turnaround
Creating a new-product life cycle is the underlying philosophy of a grand strategy of:
A. Product development
B. Innovation
C. Horizontal integration
D. Market development
________ is generally obtained from a commercial bank to pay for property, equipment
and maybe provide working capital.
A. Equity financing
B. Debt financing
C. Bond financing
D. Stock financing
__________ are clever at devising schemes or programs to push a product or service,
but aimed more at a quick payoff than a profitable, business building endeavor for the
longer term.
A. Administrators
B. Promoters
C. Inventors
D. Entrepreneurs
Which of these represent a key characteristic of eco-efficient corporations?
A. Eco-efficient firms are reactive
B. Eco-efficiency is added on
C. Flexibility is imperative for eco-efficient strategy implementation
D. Eco-efficiency is insular
To achieve long-term prosperity, strategic managers commonly establish long-term
objectives in seven areas. Which of the following describes one of these areas?
A. Technological leadership
B. Technological innovation
C. Social change
D. Marketing
A result of analyzing the operating environment is developing a ____ with respect to
geographic, demographic, psychographic and buyer-behavior factors.
A. Market share analysis
B. Customer profile
C. Competitive edge
D. Consumer/surveys
A Japanese keiretsu:
A. Involves no more than 10 firms
B. Is joined around a trading company or bank
C. Does not minimize risks of competition
D. Is a licensing agreement
In a multi-business firm, ______ -level executives determine the businesses in which
the firm should be involved.
A. Business
B. Functional
C. Corporate
D. Operative
Which of the following does NOT describe a good objective?
A. Flexible
B. Acceptable
C. Marketable
D. Achievable
_______ is an important structural decision and resultant separate activities need to be
coordinated and integrated back together as a whole so the business functions
effectively.
A. Diversification
B. Broadening
C. “Preferencing”
D. Differentiation
The temporary nature of the product-team structure’s teams results in:
A. Lower coordination costs
B. More management levels above the team
C. Increased bureaucracy with decision-making
D. Higher coordination costs
The two dimensions in the BCG’s Strategic Environments matrix are ____ and _____ of
competitive advantage.
A. length, timing
B. yes and no
C. sources, size
D. many, few
Strategic alliances are distinguished from joint ventures because:
A. Joint ventures do not work in global situations
B. Joint ventures are synonymous with licensing agreements
C. Alliances never transfer property rights from U.S. licensors to foreign licensees for
strategic alliance
D. There are no equity positions taken in strategic alliances
The strategy management process is:
A. Stationary
B. Dynamic
C. Static
D. Radical
One of the limitations of the SWOT analysis is that it can be _______.
A. static
B. dynamic
C. simple
D. complex
Which principle argues that employees must be expected to engage in cooperative
activities according to the rules of the company, assuming that the company rules are
deemed fair?
A. Distributive-justice
B. Difference
C. Fairness
D. Liberty
The essence of the company self-concept is the idea that
A. The firm’s public image is positive
B. The firm must know itself
C. The firm must know the industry
D. The firm’s economic goals must be aligned with the industry’s top competitor
A firm with a strategic goal of growing the share price incrementally should implement
a:
A. Restricted stock plan
B. Stock option plan
C. Cash-based plan
D. Golden parachute
Decisions concerning plant location, distribution channels, geographic coverage and
market segmentation are typically made at:
A. The corporate level
B. The business level
C. The functional level
D. The Board level
__________ are much easier to value than options because they are equivalent to a
stock transfer at the market price.
A. Restricted stock grants
B. Golden handcuffs
C. Golden parachutes
D. Cash plans