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1. Research has shown that strategic thinking and planning positively affect a firm's performance and financial success.
a.
True
b.
False
2. Strategic thinking is more important in for-profit businesses than for non-profit organizations.
a.
True
b.
False
3. Top managers and chief executives have the final responsibility for strategic planning.
a.
True
b.
False
4. Front-line managers have the final responsibility for strategic planning.
a.
True
b.
False
5. Competitive advantage refers to the set of decisions and actions used to formulate and implement strategies.
a.
True
b.
False
6. The interaction of Production and Sales working together to produce profit greater than the total of both working
separately is an example of synergy.
a.
True
b.
False
7. Core competence is the plan of action that prescribes resource allocation and other activities for dealing with the
environment.
a.
True
b.
False
8. The combination of benefits received and costs paid by the customer refers to value.
a.
True
b.
False
9. Corporate-level strategy pertains to the organization as a whole.
a.
True
b.
False
10. The "How do we compete?" question concerns functional-level strategy.
a.
True
b.
False
11. The three levels of strategy are business, corporate, and global.
a.
True
b.
False
12. Strategic partnerships are the current trend, rather than mergers and acquisitions.
a.
True
b.
False
13. In a turbulent business climate, managers should focus on strategic stability rather than flexibility.
a.
True
b.
False
14. Strategy implementation involves the planning and decision making that lead to the establishment of the firm's goals.
a.
True
b.
False
15. Some companies hire competitive intelligence professionals to scan the external environment and provide data and
research on relevant domestic and global trends.
a.
True
b.
False
16. The administration and implementation of the strategic plan is strategy execution.
a.
True
b.
False
17. The essence of formulating strategy is choosing how the organization will conform to become like its key competitors
in the industry.
a.
True
b.
False
18. Executives acquire information about external opportunities and strengths from a variety of reports, including budgets,
financial ratios, profit and loss statements, and surveys of employee attitudes and satisfaction.
a.
True
b.
False
19. For the social networking site Facebook, technological know-how and an aggressive and innovative culture are
significant strengths to include in its SWOT analysis.
a.
True
b.
False
20. Threats are characteristics of the internal environment that may prevent the organization from achieving its strategic
goals.
a.
True
b.
False
21. Opportunities are characteristics of the internal environment that have the potential to help the organization achieve or
exceed its strategic goals.
a.
True
b.
False
22. The mix of business units and product lines that fit together in a logical way to provide synergy and competitive
advantage for the corporation pertains to portfolio strategy.
a.
True
b.
False
23. An SBU stands for Star Business Unit.
a.
True
b.
False
24. The BCG (Boston Consulting Group) matrix evaluates SBUs with respect to their business growth rate and
geographical location.
a.
True
b.
False
25. The question mark exists in a new, rapidly growing industry but has only a small market share, according to the BCG
Matrix.
a.
True
b.
False
26. According to the BCG Matrix, the cash cow has a large market share in a rapidly growing industry.
a.
True
b.
False
27. The dog, according to the BCG Matrix, is a poor performer.
a.
True
b.
False
28. Unrelated diversification occurs when an organization expands into a totally new line of business.
a.
True
b.
False
29. Diversification is a strategy of moving into new lines of business.
a.
True
b.
False
30. Vertical integration means a firm expands into businesses that either produce the supplies needed to make products or
that distribute and sell those products to customers.
a.
True
b.
False
31. Differentiation, cost leadership, and focus are three of Porter's competitive strategies.
a.
True
b.
False
32. Cost leadership is a type of competitive strategy with which the organization seeks to distinguish its products or
services from that of competitors.
a.
True
b.
False
33. Organizations with a focus strategy concentrate on a specific regional market or buyer group.
a.
True
b.
False
34. A director of finance would most likely be interested in executing functional level strategies.
a.
True
b.
False
35. Business-level strategies include all of the major functions, including finance, research and development, marketing,
and manufacturing.
a.
True
b.
False
36. The world-wide standardization of product design and advertising refers to globalization.
a.
True
b.
False
37. The transnational strategy handles markets independently for each country.
a.
True
b.
False
38. With a multidomestic strategy, a company will achieve the globalization or standardization of marketing and
production approaches.
a.
True
b.
False
39. A transnational strategy seeks to achieve both global integration and national responsiveness.
a.
True
b.
False
40. A transnational strategy combines degrees of both global standardization and national responsiveness.
a.
True
b.
False
41. Communication is one of the most important methods for effective strategy execution.
a.
True
b.
False
42. For successful execution, alignment of everyone in the organization must occur.
a.
True
b.
False
43. In order to protect an organization’s mission, the human resource functions are removed from strategic goals.
a.
True
b.
False
44. In strategy implementation, leadership is the ability to influence people to adopt the new behaviors needed.
a.
True
b.
False
45. To remain competitive, companies should develop strategies that focus on core competencies, providing synergy, and
creating value for _____.
a.
customers
b.
suppliers
c.
stockholders
d.
employees
e.
board members
46. The set of decisions and actions used to formulate and implement strategies that will provide a competitively superior
fit between the organization and its environment so as to achieve organizational goals is known as:
a.
strategy formulation.
b.
strategic planning.
c.
strategic management.
d.
strategy implementation.
e.
strategy evaluation.
47. The plan of action that prescribes resource allocation and other activities for dealing with the environment and helping
the organization attain its goals is known as a(n) _____.
a.
goal
b.
objective
c.
mission
d.
vision
e.
strategy
48. Which of the following is a business activity that an organization does especially well relative to its competition?
a.
Strategy
b.
Synergy
c.
Cash cow
d.
Core competence
e.
Multidomestic
49. The condition that exists when the organization's parts interact to produce a joint effect that is greater than the sum of
the parts acting alone is known as:
a.
core competence.
b.
synergy.
c.
value creation.
d.
business-level strategy.
e.
multidomestic strategy.
50. When properly managed, _____ can create additional value with existing resources, providing a big boost to the
bottom line.
a.
synergy
b.
competitors
c.
government contacts
d.
command structure
e.
cooperation among customers
51. _____ can be defined as the combination of benefits received and costs paid by the customer.
a.
Organizational benefits
b.
Value
c.
Cost-benefit diversity
d.
Synergy
e.
Core competence
52. After Sunshine Systems merged with RTD Enterprises, company executives noticed that due to increased employee
collaboration between the two units, costs were down and revenues increased within both areas. This is an example of
what business phenomenon?
a.
Strategy execution
b.
Portfolio strategy
c.
Core competency
d.
Synergy
e.
Delivering value
53. When AT&T decided to buy Media One, a cable company, it was pursuing a(n) _____ strategy.
a.
functional-level
b.
internal growth
c.
multi-domestic
d.
corporate-level
e.
business-level
54. _____ level strategy pertains to the major functional departments within the business unit.
a.
Operational
b.
Corporate
c.
National
d.
Business
e.
Functional
55. When Philip-Morris, the tobacco giant, bought Kraft, Inc., it was pursuing a _____.
a.
corporate-level strategy
b.
business-level strategy
c.
functional-level strategy
d.
multidomestic strategy
e.
retrenchment strategy
56. Which of the following pertains to the organization as a whole?
a.
Business-level strategy
b.
Functional-level strategy
c.
Corporate-level strategy
d.
Operational-level strategy
e.
Competitive-level strategy
57. Sears' decision to sell off much of its financial services division is an example of a:
a.
corporate-level strategy.
b.
business-level strategy.
c.
functional-level strategy.
d.
growth strategy.
e.
stability strategy.
58. A corporate-level strategy is concerned with the question:
a.
what business are we in?
b.
how do we compete?
c.
how do we support our chosen strategy?
d.
where do we market our products?
e.
should we promote from within?
59. When Coca-Cola introduced Surge, a new citrus soft-drink, what type of strategy was being pursued?
a.
Functional-level strategy
b.
Multi-domestic strategy
c.
Corporate-level strategy
d.
Retrenchment strategy
e.
Business-level strategy
60. Ford's decision to completely redesign its Ford Taurus can be classified as a:
a.
corporate level strategy.
b.
business level strategy.
c.
functional level strategy.
d.
retrenchment strategy.
e.
stability strategy.
61. Janessa is the CEO of a privately-held software company. In defining corporate-level strategies, which of the
following questions would she most likely be concerned with?
a.
How do we compete?
b.
What business are we in?
c.
How does marketing support the business?
d.
How can we maximize profits?
e.
How can we make manufacturing processes more efficient?
62. Decisions regarding the proper amount of advertising for a particular good or service are related to:
a.
corporate-level strategies.
b.
functional-level strategies.
c.
tactical-level strategies.
d.
business-level strategies.
e.
retrenchment strategies.
63. Which of these questions is central to a functional-level strategy?
a.
What business are we in?
b.
How do we compete?
c.
How do we support our chosen strategy?
d.
What business do we buy?
e.
Where to market our products?
64. Which of the following lists the strategic management process in proper order?
a.
Formulate strategy; Evaluate strategy; Perform SWOT analysis; Define new mission/goals; Execute strategy;
Control strategy.
b.
Perform SWOT analysis; Evaluate current mission/goals; Formulate strategy; Execute strategy; Define new
mission/goals.
c.
Evaluate current mission/goals; Define new mission/goals; Formulate strategy; Execute strategy; Perform
SWOT analysis .
d.
Evaluate current mission/goals; Perform SWOT analysis; Define new mission/goals; Formulate strategy;
Execute strategy.
e.
Define new mission/goals; Execute strategy; Formulate strategy; Evaluate new mission/goals; Perform SWOT
analysis.
65. _____ refers to the use of managerial tools to direct resources toward the achievement of strategic goals.
