In the past 30 years, the U.S. has ______ in terms of technological advantage.
A. Substantially enhanced
B. Maintained a status quo
C. Declined dramatically
D. Reaches the number one spot in the world
Entrepreneurs benefit when using __________ because they retain ownership and
increase the return on their investment if things go as planned.
A. Equity capital
B. Debt capital
C. Stock financing
D. Loans against accounts payable
All of the following are skills or resources that foster rapid response (speed) EXCEPT:
A. Process engineering skills
B. Excellent inbound and outbound logistics
C. High level of automation
D. Creative talent and flair
Business strategies require all of these features EXCEPT which one for success in
mature industries?
A. Harvest the business
B. Emphasis on cost reduction
C. Product line pruning
D. Horizontal integration
The general plan of major actions through which a firm intends to achieve is long-term
objectives is called its:
A. Generic strategy
B. Long-term goal
C. Grand strategy
D. Mission
The _________ perspective sees multi-business companies as creating value by
influencing the businesses they own.
A. Strategic environment
B. Growth-share matrix
C. Patching
D. Parenting
The only relationship between business units with the portfolio matrix is:
A. Creation of competitive advantage
B. Internally synergies
C. Cash
D. Core competencies
If a shirt manufacturer acquires a textile manufacturer, this strategy is called:
A. Backward vertical integration
B. Diversification
C. Joint venture
D. Horizontal acquisition
___________ is designed to monitor a broad range of events inside and outside the firm
that are likely to affect the course of its strategy.
A. Special alert control
B. Strategic surveillance
C. Premise control
D. Implementation control
Host countries may require a foreign branch to be
A. Domesticated
B. Globalized
C. Centralized
D. Localized
Leaders shape organizational _____ through their passion for the enterprise and the
selection/development of talented managers to be future leaders.
A. strategic intent
B. culture
C. vision
D. strategy
For the ABC Company, the Alpha business is in a dominant market share position in a
mature market. As per the BCG matrix, Alpha is a
A. Star
B. Question mark
C. Cash cow
D. Dog
The _______ approach was one of the early approaches for charting strategy and
allocating resources in multi-business companies. It was particularly popular in the
1960s and 1970s.
A. Case
B. Matrix-management
C. Portfolio
D. Patching
Internal assessment involves identification of the basic ______ of a firm’s operations.
A. Opportunities
B. Strengths
C. Threats
D. Competitors
__________ comes from having others want to identify with the leader.
A. Expert influence
B. Peer influence
C. Referent influence
D. Coercive power
_______ strategy allows firms to leverage some of their traditional strengths by
identifying new uses of existing products and by finding new demographic or
psychographic markets.
A. Innovation
B. Product development
C. Market development
D. Horizontal integration
Which of the following is NOT an example of an intangible asset?
A. Financial resources
B. Brand names
C. Company reputation
D. Organizational morale
A buyer group is powerful if:
A. It earns low profits
B. The industry’s product is important to the quality of the buyer’s products or services
C. The industry’s product saves the buyer money
D. It is not concentrated
__________ increase managerial effectiveness by standardizing many routine decisions
and clarifying the discretion managers and subordinates can exercise in implementing
functional tactics.
A. Outsourcing
B. Standard operating procedures
C. Corporate cultures
D. Action plans
_______ represents a statement that presents a firm’s strategic intent designed to focus
the energies and resources of the company on achieving a desirable future.
A. Mission statement
B. Agency theory
C. Adverse selection
D. Vision statement
Flexibility is usually increased at the expense of:
A. Reliability
B. Timeliness
C. Specificity
D. Mobility
Jerry was using __________ when he asked his workers to reorganize the department.
They did not yet know why they were doing this, but knew that Jerry had a good reason
that he had not yet shared.
A. Referent power
B. Punitive power
C. Information power
D. Peer influence
A firm with a _______ orientation adopts a global systems approach to strategic
decision making, thereby emphasizing global integration.
A. polycentric
B. geocentric
C. regiocentric
D. ethnocentric
Which matrix makes fine distinctions among business portfolio positions with the
inclusion of high/medium/low axes?
A. Industry strength matrix
B. Growth-share matrix
C. Strategic environments matrix
D. Industry attractiveness-business strength matrix
The tendency to accept the status quo and disregard signals that change is needed is
called:
A. Management myopia
B. Environmental awareness
C. Management long-sightedness
D. Subjective management
Occasionally, two or more capable companies lack a necessary component for success
in a particular competitive environment. The optimal strategy in such a case would be:
A. Concentric integration
B. Diversification
C. Conglomerate diversification
D. Joint venture
Decisions at which level of management tend to be more value-oriented, more
conceptual, and less concrete?
A. Functional
B. Corporate
C. Operative
D. Business
The most significant change in the restructuring of governance structure due to the
Sarbanes-Oxley Act is the
A. Elimination of the external board members
B. Heightened role of corporate internal auditors
C. Removal of CFO from any overseeing role related to final financial statements
D. Creation of inside corporate accountants reporting to external accounting firms
_______ is the process by which corporate executives routinely remap businesses to
match rapidly changing market opportunities.
A. Parenting
B. Patching
C. Portfolio matching
D. Environmental strategy
Which of these attempts to measure a company’s actual social performance against the
social objectives it has set for itself?
A. Social audit
B. Mission statement
C. Sarbanes-Oxley Act
D. Discretionary responsibilities
As an industry evolves, its rate of growth eventually
A. declines
B. stabilizes
C. increases
D. plateaus