Managers need to know that, in the view of the general public, _______ and _______
responsibilities are required, _______ responsibility is expected and _______
responsibility is desired.
A. Legal; ethical; economic; discretionary
B. Economic; legal; ethical; discretionary
C. Ethical; economic; discretionary; legal
D. Legal; economic; discretionary; ethical
Individuals and groups who are stockholders or employees of firms are called:
A. Outsiders
B. Insiders
C. Internal stakeholders
D. A special interest group
_______ is the idea that business has a duty to serve society in general as well as the
financial interests of stockholders.
A. Corporate social responsibility
B. Discretionary responsibility
C. Ethical responsibility
D. Utilitarian responsibility
A(n) ______ orientation exists when the parent attempts to blend its own predisposition
with those of the region under consideration.
A. Polycentric
B. Regiocentric
C. Ethnocentric
D. Geocentric
Generally, _____ is accepted as the clearest indication of a firm’s ability to satisfy the
principal desires of employees and stockholders.
A. Profit over the long term
B. Profit over the short term
C. Return on assets
D. The number of lawsuits brought against the firm
Factors that increase the degree to which an industry is multidomestic include:
A. A need for standardized products
B. Fragmented industry with few competitors
C. Distribution channels unique to each country
D. The existence of economics of scale
The claims of various stakeholder groups often
A. converge
B. submerge
C. conflict
D. blend
Typically how many strategic decision levels are there in the corporate decision-making
hierarchy of a large corporation?
A. 5 or more
B. 4
C. 3
D. 2
A future leader’s personal philosophies and choices ___________ for any key leaders of
any organization.
A. Manifest themselves exponentially
B. Are usually diminished over time
C. Always permeate the company
D. Become less pronounced with time
When should a company redefine its mission?
A. When the competition have failed
B. When the board meets with top management annually
C. When the business is forced by competitive pressures to alter its products of market
D. When the government requires the business to redefine it
Which structure provides dual channels of authority, performance responsibility,
evaluation and control?
A. Matrix structure
B. Product-team structure
C. Divisional structure
D. Holding company structure
Business strategies in emerging industries must be concerned with which of the
following characteristics?
A. Proprietary technology in the pioneering firms with moderate to high amounts of
competitive uncertainty
B. Low initial costs with hefty cost increases through time
C. Many entry barriers
D. Easy to obtain raw materials
A ______ is a user interface that organizes and presents information from multiple
digital sources simultaneously in a user-designed format on the computer screen.
A. Wiki
B. Genie
C. Dashboard
D. Widget
Security of pledged assets is a typical claim of which stakeholder group?
A. Stockholders
B. Employees
C. Creditors
D. Society
_____ is the capacity to see a commitment through to completion long after most
people would have stopped trying.
A. Principle
B. Passion
C. Perseverance
D. Strategic intent
A(n) ________ is a major favorable situation in a firm’s environment.
A. Value chain
B. Strength
C. Opportunity
D. Capability
Which one of the following is NOT a lever by which corporate parents add value
according to the BCG parenting strategy approach?
A. corporate engagement
B. strategy development
C. financing advantages
D. business synergies
The most compelling reason companies should diversify can be found in situations
when:
A. Core competencies are not similar
B. Core competencies can be leveraged with other products or into other markets
C. Management is similar in various businesses
D. Cash resources can be leveraged
Which of these strategies shows the lowest commitment to international market?
A. Export
B. Joint venture
C. Licensing
D. Wholly owned foreign subsidiary
________ provide incentive for the executive to create wealth for shareholders as
measured by increases in the firm’s share price.
A. Stock option grants
B. Golden handcuffs
C. Golden parachutes
D. Cash-based plans
Crabtree Soup has been facing intense competition and suffering low profit margins for
a year now. The market for their specialty soups has matured and the firm is being
managed for short-term cash flow to supplement SwissCo’s corporate-level resource
needs. Which type of firm is Crabtree Soup as per the BCG Growth-Share matrix?
A. Star
B. Dog
C. Cash cow
D. Question mark
Short-term objectives are more consistent when they clearly state what is to be
accomplished, when it will be accomplished and how its accomplishment will be:
A. Qualified
B. Benchmarked
C. Measured
D. Strategized
Which of the following are often referred to as generic strategies?
A. Cost leadership and differentiation
B. Market leadership and differentiation
C. Cost leadership and product pricing
D. Differentiation and value chain analysis
______ provide the executive with the right to purchase company stock at a fixed price
in the future.
A. Golden handcuffs
B. Stock options
C. Golden parachutes
D. Restricted stock plans
Strategic decisions ostensibly commit the firm for
A. 1-2 years
B. The short term
C. 3-4 years
D. A long time, typically five years
Defining industry boundaries is a very difficult task because
A. Industry evolution creates industries within industries
B. Industries are becoming very narrow in scope
C. Industries do not evolve over time
D. Industries remain static over time
Functional tactics are more _________ than business strategies.
A. Specific
B. Focused on the general direction of the firm
C. Focused on a commitment to corporate strategy
D. Long-term
Company X’s principal strength is its inbound and outbound logistics system; its
relative weakness, however is after-sales service. Its competitor, Company Y, however
is often plagued with lagging shipments and an inflexible distribution setup. Company
Y remains successful because it maintains a fully staffed service department and as a
result the company is known for its dependable service. _______ allows them to
identify ways to build on relative strengths and avoid dependence on capabilities at
which the other firm excels.
A. Industry comparison
B. Benchmarking
C. Past performance comparison
D. Disaggregating
Value chain analysis takes a:
A. Process point of view
B. Functional point of view
C. Horizontal point of view
D. Corporate point of view
A mission statement should include all of these components EXCEPT
A. Basic types of products or services to be offered
B. The firm’s managerial philosophy
C. The public image the firm seeks
D. The government regulations the firm must meet
Which strategy shows the highest commitment to international market?
A. Export
B. Joint venture
C. Licensing
D. Wholly owned foreign subsidiary
Political factors in choosing a foreign manufacturing site include:
A. Attitude toward foreign investment
B. Cost of local borrowing
C. Degree of labor force in management
D. Currency rate
Which of the following is NOT a basic resource for any firm?
A. Tangible assets
B. Core outputs
C. Intangible assets
D. Organizational capabilities
A spin-off usually indicates:
A. Integration
B. Diversification
C. Joint venture
D. Retrenchment
Which principle holds that social and economic inequities must be addressed to achieve
a more equitable distribution of goods and services?
A. Liberty
B. Difference
C. Distributive-justice
D. Fairness
Briefly describe the different orientations companies may have toward their overseas
activities.
Speed-based competitive advantages can be creates around what types of activities?
Explain.
Define and describe organizational leadership in the context of a leader’s action.
Evaluate the strategic choices for businesses in mature industries.
What is the parenting opportunities framework? Briefly describe this perspective.
Describe how the grand strategy of “turnaround” can help a firm that finds itself with
declining profits.
Explain the five force model of industry analysis as described by Porter. Give an
example of each force.
How is increasing buyer power affecting corporate social responsibility today?
What are the location and coordination issues that global firms face?
What does the term “leverage” mean? What are the important leverage ratios?
Why should strategic management planning be global?
What two elements are critical in meaningful shared opportunities? Identify each and
give an example.
Identify and explain the factors/characteristics that make the buyer group powerful.
What is ethics? Why is it important in business?
Describe what liquidity ratios measure? What are the important liquidity ratios?
What is intrapreneurship? Describe Gordon Pinchot’s freedom factors that encourage
intrapreneurship.
Describe the steps in conducting a value chain analysis.
How do short-term objectives help implement strategy?
How do the characteristics of strategic management decisions vary with the level of
strategic activity considered?
Strategic issues have several key dimensions. Briefly describe any three of them?