Awareness of technological changes in its industry helps the firm to:
A. Interpret new regulations
B. Act slowly and carefully
C. Exploit new markets
D. Forecast social change
______ exist between a company and its customers, suppliers, partners, regulators and
competitors.
A. Competitive boundaries
B. Horizontal boundaries
C. External interface boundaries
D. Geographic boundaries
The board of director’s greatest impact on the behavior of a firm results from its
A. Industry experience
B. Dependence on the CEO
C. Determination of company mission
D. Mandate of company compliance with legal and ethical dictates
The Industry Attractiveness-Business Strength matrix has ____ cells, while the BCG
matrix has ___ cells.
A. 6,4
B. 4,6
C. 9,4
D. 4,9
A fragmented industry is one in which:
A. Foreign firms have almost equal market shares on domestic firms
B. No one firm has a significant market share
C. One firm strongly influences the industry’s outcomes
D. Competitors have been beaten down by regulations
________ is the set of important assumptions that members of an organization share in
common.
A. Organizational culture
B. Organizational leadership
C. Organizational strategy
D. Organizational change
Designing viable strategies for a firm requires a thorough understanding of the firm’s:
A. Earnings
B. Growth rate
C. Market share
D. Competition
The company’s philosophy is sometimes also called the:
A. Company creed
B. Corporate profile
C. Corporate motto
D. Corporate symbol
_______ is the most rapidly growing segment of the outsourcing services industry
worldwide.
A. Business process reorganization
B. Business process reengineering
C. Business process outsourcing
D. Business leasing
Technological factors are a part of a firm’s ______ environment.
A. Industry
B. Operating
C. Economic
D. Remote
Company actions that produce more useful goods and services while continuously
reducing recourse consumption and pollution refers to
A. Product differentiation
B. Economics of scale
C. Barriers to entry
D. Eco-efficiency
Which one of the following is NOT a strategic orientation of global firms?
A. Omnicentric
B. Ethnocentric
C. Polycentric
D. Regiocentric
The difference between long-term and short-term objectives is principally:
A. Greater attainability
B. Greater flexibility
C. Greater measurability
D. Greater specificity
Motivations of acquiring firms include:
A. Decreased stock price
B. Increased market share
C. Different debt/equity ratio
D. Decreased P/E ratio
Which of the following is NOT a commonly pursued long-term objective as described
in the text?
A. Profitability
B. Social responsibility
C. Efficiency
D. Productivity
The research of Bartlett and Ghoshal suggests that the critical management functions:
A. Must be present in the organization, but not necessarily in all three levels of
management
B. Is strictly the domain of top management?
C. Should be confined, typically, to the top two management levels
D. Need to be shared and distributed across three management levels
A special form of licensing is
A. Green-field investment
B. Exporting
C. Joint venture
D. Franchising
(p.88) The factors beyond the control of the firm that influence its choice of direction
and action, organizational structure and internal processes refers to
A. Directional strategies
B. External environment
C. Organizational processes
D. Internal environment
Short-term objectives assist strategy implementation by identifying measurable
outcomes of action plans or functional activities, which can make feedback, correction
and evaluation
A. More relevant and acceptable
B. More expensive
C. More difficult
D. More geared toward growth
______ leads in optics, solid-state physics, engineering, chemistry and process
metallurgy.
A. Japan
B. France
C. The U.S.
D. Germany
Strategic choice decision making leads to the selection of long-term objectives and
grand strategies. This process is:
A. Sequential
B. Random
C. Simultaneous
D. Closed
Organizational requirements to support and sustain rapid response activities include
which of these?
A. Strong delegation to operating personnel
B. Subjective measurements and incentives
C. Amenities to attract highly skilled labor and creative people
D. Frequent, detained control reports
What was the key challenge as companies jumped on the diversification bandwagon?
A. Making the business profitable
B. Finding businesses to buy
C. Managing the resource needs of diverse businesses
D. Financing acquisitions
The sale of a firm or a major component refers to
A. Retrenchment
B. Divestiture
C. Liquidation
D. Conglomerate diversification
__________, manifest in holidays, practices and belief structures, differ in fundamental
ways that must be taken into account as one attempts to shape organizational culture in
a global setting.
A. Values and attitudes
B. Social norms
C. Religion
D. Education
Speed-based strategies are a form of
A. differentiation
B. cost leadership
C. market focus
D. Integration
What makes SWOT analysis susceptible to key limitations?
A. Its narrow focus on external factors
B. Its broad conceptual approach
C. Its vastly limited applicability
D. Its portrayal of the essence of sound strategy formulation
The direct foreign investment of foreign-based globals that operate in the United States
now exceeds A. 200 billion
B. 20 billion C. 90 billion
D. 9 billion
(p.214) When the long-term strategy of a firm is based on growth through the
acquisition of one or more similar businesses operating at the same stage of the
production-marketing chain, this is called:
A. Vertical integration
B. Conglomeration
C. Horizontal acquisition
D. Liquidation
Common to all the approaches to internal analysis is:
A. The use of meaningful standards for comparison in internal analysis
B. The use of external factors of analysis
C. The process point of view
D. Management market myopia
____________ are also referred to as “crowdsourcing” or “open innovation.”
A. Ideagoras
B. Disruptors
C. Sustainers
D. Golddiggers
For success in emerging industry setting, business strategies require which of these
features?
A. Ability to rapidly improve product qualities and performance features
B. Ability to differentiate the firm’s products from competitors entering the market
C. Emphasis on process innovation that permits low-cost product design, manufacturing
methods and distribution synergy
D. Gradually harvest the business
Which of these refers to the moral principles that reflect society’s beliefs about the
actions of an individual or group that are right and wrong?
A. CSR
B. Social audit
C. Ethics
D. Utilitarian approach
Managers who adopt the ______ approach judge the effects of a particular action on the
people directly involved, in terms of what provides the greatest good for the greatest
number of people.
A. Economic man
B. Utilitarian
C. Moral rights
D. Social justice