Human Resource Management, 14e, Global Edition (Dessler)
Chapter 3 Human Resource Management Strategy and Analysis
1) ________ defines the nature of the company’s business in terms of the markets in which it will
compete and the ways it will differentiate itself from its competitors.
A) Financial auditing
B) Strategic planning
C) Employee benchmarking
D) Employee testing
2) ________ is a process involving setting objectives, making forecasts, reviewing alternative
courses of action, evaluating options and implementing the plan.
A) Managerial planning
B) Financial auditing
C) Employee testing
D) Employee benchmarking
3) What is the first step in the basic planning process?
A) evaluating the possible alternatives
B) implementing a course of action
C) setting an objective
D) comparing options
4) Which of the following is NOT part of the basic managerial planning?
A) evaluation of best options
B) establishment of clear objectives
C) implementation of the plan
D) interference from corporate hierarchies
5) Which term indicates the course of action for getting from where you are to where you want to
go?
A) goal
B) plan
C) proposition
D) assessment
6) What is a company’s plan for how it will match its internal strengths and weaknesses with
external opportunities and threats to maintain a competitive advantage?
A) strategic plan
B) situation analysis
C) SWOT analysis
D) tactical plan
7) A course of action that a firm can pursue to achieve its strategic aims is known as a ________.
A) vision
B) goal
C) strategy
D) mission
8) Strategic management is best defined as the process of identifying and executing the
organization’s strategic plan by matching the company’s capabilities with its ________.
A) environmental demands
B) competitive standards
C) natural resources
D) hierarchical AACSBs
9) All of the following are steps involved in the strategic management process EXCEPT
________.
A) evaluating the firm’s internal and external situation
B) defining the business and developing a mission
C) crafting a course of action
D) offshoring low-AACSB jobs
10) What is the first step in the strategic management process?
A) formulating a strategy
B) defining the current business and its mission
C) translating a mission into goals
D) implementing an environmental scan
11) Which of the following is a simple guide used to compile relevant information about
economic, competitive, and political trends that may affect a firm?
A) workforce requirement matrix
B) environmental scan worksheet
C) external resource system table
D) potential globalization network
12) The primary tool used by managers who are performing external and internal audits as part
of the strategic management process is the ________.
A) BCG matrix
B) QSPM matrix
C) SWOT chart
D) EPS/EBIT table
13) Which of the following provides a summary of a firm’s intended direction and shows, in
broad terms, “what we want to become”?
A) mission statement
B) strategic plan
C) vision statement
D) marketing plan
14) The sales director at WebMD is calculating annual sales revenue targets and the number of
new medical-related content providers that the firm needs to maintain a competitive advantage.
In which step of the strategic management process is the sales director involved?
A) performing external and internal audits
B) defining the business and its mission
C) translating a mission into strategic goals
D) evaluating strategic decisions
15) The ________ of the California Energy Commission indicates that the organization assesses
and acts through public and private partnerships to improve energy systems that promote a strong
economy and a healthy environment.
A) mission statement
B) strategic plan
C) code of ethics
D) vision statement
16) A company’s ________ strategy identifies the portfolio of businesses that comprise a firm
and the ways in which these businesses relate to each other.
A) functional
B) business unit
C) corporate-level
D) competitive
17) A diversification corporate strategy implies that a firm will ________.
A) expand by adding new product lines
B) reduce the company’s size to increase market share
C) save money by producing its own raw materials
D) increase profits by offering one popular product
18) Harley-Davidson sells a line of boots, helmets, and leather jackets indicating that the firm is
pursuing which of the following strategies?
A) conglomerate diversification
B) geographic expansion
C) related diversification
D) horizontal integration
19) When Apple opened its own Apple stores, this was an example of ________.
A) market penetration
B) product development
C) vertical integration
D) horizontal integration
20) Winchester Rugs operates a Web site called www.buyrugsdirect.com, so Winchester Rugs is
most likely using a strategy of ________.
A) consolidation
B) geographic expansion
C) vertical integration
D) horizontal integration
21) Which of the following activities most likely indicates that a firm is implementing a vertical
integration strategy?
A) selling unprofitable divisions
B) producing raw materials
C) aggressively selling a new product
D) purchasing a competitor’s firm
22) The 2008 announcement by Starbucks that it would be closing approximately 600 of its
stores suggests the firm was using a ________ strategy.
A) consolidation
B) diversification
C) geographic expansion
D) vertical integration
23) Sweet Leaf Tea, a Texas-based maker of bottled iced tea, is a small but fast-growing firm
that has gained a loyal following for its use of fresh, organic ingredients in its beverages.
Although beverage industry experts recommended that Sweet Leaf replace the organic cane
sugar and honey it uses with less costly high-fructose corn syrup, Sweet Leaf refused because of
the company’s mission to provide a high-quality, organic beverage to consumers. The 11-year
old company has 50 employees, and its products are available in 30% of the U.S. market. Sweet
Leaf Tea recently received multi-million dollar investments which will enable the business to
expand its national presence.
Which of the following, if true, would best support the argument that Sweet Leaf Tea should
implement a corporate-level strategy of market penetration?
A) Sweet Leaf Tea can develop a national name by adding new product lines, such as organic
snack foods and organic coffee.
B) Sweet Leaf Tea’s marketing research indicates that customers would purchase the organic
beverages more frequently if the prices were lower.
C) Sweet Leaf Tea can achieve growth by aggressively selling its beverages in current markets
where loyal customers will help boost word-of-mouth.
D) Sweet Leaf Tea’s competitors primarily focus their marketing and distribution efforts on
regional grocery-store chains rather than big box national retailers.
24) Sweet Leaf Tea, a Texas-based maker of bottled iced tea, is a small but fast-growing firm
that has gained a loyal following for its use of fresh, organic ingredients in its beverages.
Although beverage industry experts recommended that Sweet Leaf replace the organic cane
sugar and honey it uses with less costly high-fructose corn syrup, Sweet Leaf refused because of
the company’s mission to provide a high-quality, organic beverage to consumers. The 11-year
old company has 50 employees, and its products are available in 30% of the U.S. market. Sweet
Leaf Tea recently received multi-million dollar investments which will enable the business to
expand its national presence.
Which of the following, if true, would most likely undermine the argument that Sweet Leaf Tea
should implement a corporate-level strategy of vertical integration?
A) Sweet Leaf Tea lacks the facilities or knowledge to produce the raw ingredients for its
beverages.
B) Market research suggests that Sweet Leaf Tea customers primarily purchase only one flavor
of tea.
C) Most loyal customers of Sweet Leaf Tea purchase the beverage at neighborhood convenience
stores.
D) Sugar farmers used by Sweet Leaf Tea have agreed to a fixed price for the next five years so
that the company can keep prices low.
25) Sweet Leaf Tea, a Texas-based maker of bottled iced tea, is a small but fast-growing firm
that has gained a loyal following for its use of fresh, organic ingredients in its beverages.
Although beverage industry experts recommended that Sweet Leaf replace the organic cane
sugar and honey it uses with less costly high-fructose corn syrup, Sweet Leaf refused because of
the company’s mission to provide a high-quality, organic beverage to consumers. The 11-year
old company has 50 employees, and its products are available in 30% of the U.S. market. Sweet
Leaf Tea recently received multi-million dollar investments which will enable the business to
expand its national presence.
Which of the following, if true, best supports the idea that Sweet Leaf Tea has implemented a
competitive strategy of differentiation?
A) New Sweet Leaf Tea customers are initially attracted to the unique labels and logo on the
bottles.
B) Loyal customers of Sweet Leaf Tea seek products that are USDA certified organic despite the
associated higher costs.
C) Other brands of bottled iced tea compete with Sweet Leaf Tea by offering new flavors at
competitive prices.
D) Sweet Leaf Tea sells both lemonade and teas in a variety of flavors that appeal to consumers
of all ages.
26) A company’s ________ strategy identifies how to build and strengthen the business’s long-
term competitive position in the marketplace.
A) functional
B) corporate-level
C) horizontal
D) competitive
27) Which of the following refers to any factors that allow a company to differentiate its product
or service from those of its competitors to increase market share?
A) functional strategy
B) competitive advantage
C) distinctive competence
D) related diversification
28) A company’s business-level strategy identifies the ________.
A) ways to strengthen a firm’s long-term competitive position in the marketplace
B) tools for diversifying a business portfolio through the acquisition of MNEs
C) means to becoming a low-cost leader within a highly competitive industry
D) ways to carve out a market niche in order to compete for high-end customers
29) Companies like Ferrari are known as ________ because they carve out a market niche and
compete by providing a product that customers can attain in no other way.
A) cost leaders
B) focusers
C) visionaries
D) market leaders
30) Which of the following strategies identifies the broad activities that each department will
pursue in order to help a business attain its competitive goals?
A) competitive
B) business-level
C) corporate-level
D) functional
31) A firm’s functional strategies identify the broad activities that each ________ will do in order
to help the business accomplish its strategic goals.
A) supplier
B) department
C) executive
D) employee
32) ________ is a strategic planning tool that shows the “big picture” of how each department
performance contributes to achieve the company’s overall strategic goal.
A) Strategic objectives
B) Visionary strategy
C) Vertical strategy
D) Strategy map
33) All of the following are roles that departmental managers would most likely have in the
strategic planning process EXCEPT ________.
A) developing functional, departmental plans
B) assisting top managers in devising a strategic plan
C) deciding the businesses in which a firm will be involved
D) providing input to top management about industry trends
34) Formulating and executing human resource policies and practices that produce the employee
competencies and behaviors a company needs to achieve its strategic aims is known as
________.
A) strategic human resource management
B) human resource performance systems
C) high-performance personnel management
D) personnel management by objectives
35) The primary purpose of strategic human resource management is to ________.
A) develop human resource policies that align with industry standards
B) integrate a company’s strategic plan with its human resource strategies
C) create stringent appraisal systems that highlight employee weaknesses
D) use offshoring to reduce human resource costs and to initiate globalization
36) In order to generate the desired workforce skill, competencies, and behaviors that a firm
needs to achieve its strategic goals, human resource management must first develop ________.
A) HR strategies
B) HR databases
C) employee cultures
D) company norms
37) Which of the following most likely serves as the basis for the HR strategies developed by the
majority of firms?
A) mission statements
B) supervisory objectives
C) competitive advantages
D) workforce requirements
38) Which of the following is the final step in the strategic human resource management
process?
A) identifying a firm’s workforce requirements
B) formulating an effective business strategy
C) measuring the effectiveness of HR practices
D) testing current employees for AACSBs and knowledge
39) Human resource strategies are the ________ used to support a firm’s strategic goals.
A) visions and objectives
B) policies and practices
C) missions and goals
D) theories and tools
40) What is the primary reason that mergers and acquisitions fail?
A) technology
B) financing
C) personnel
D) stock prices
41) Which of the following best explains the increased success of mergers and acquisitions over
the last decade?
A) improvements in wireless communication technology
B) fewer restrictions regarding corporate globalization
C) federal legislation regarding employee wages and rights
D) consistent involvement of human resource management