Test marketing is used more frequently by industrial companies than consumer goods
companies.
Product development is a strategy that seeks increased sales by improving or modifying
present products or services.
Limiting an organization’s expenditures is the primary purpose of financial budgets.
Making many intuitive decisions that conflict with the formal plan is one pitfall to
avoid in strategic planning.
Brazil offers skilled labor and technology, while Germany offers abundant natural
resources and rapidly developing markets.
Multidimensional scaling involves examining three or more criteria simultaneously in a
product-positioning analysis.
According to Peter Drucker, asking the question “What is our business?” is synonymous
with asking the question “What is our vision?”
Resources that are common are never considered valuable.
Besides reducing worker alienation and stimulating productivity, ESOPs allow firms
other benefits, such as substantial tax savings.
________ is NOT part of an external audit.
A) Analyzing competitors
B) Analyzing financial ratios
C) Analyzing available technologies
D) Studying the political environment
E) Analyzing social, cultural, demographic and natural environment forces
Which is NOT a required step in perceptual mapping?
A) Select key criteria that effectively differentiate products or services in the industry.
B) Serve two segments with the same strategy.
C) Plot major competitors’ products or services in the resultant matrix.
D) Identify areas in the positioning map where the company’s products or services
could be most competitive in the given target market.
E) Develop a marketing plan to position the company’s products and services
appropriately.
Which of the following is NOT included in measuring organizational performance?
A) Comparing results to competitors’ expectations
B) Examining progress being made toward meeting stated objectives
C) Investigating deviations from plans
D) Evaluating individual performance
E) Comparing expected results to actual results
According to the comprehensive strategic-management model, which step needs to be
completed immediately following the establishment of long-term objectives?
A) Developing vision and mission statements
B) Performing external audits
C) Performing internal audits
D) Generating, evaluating, and selecting strategies
E) Measuring and evaluating performance
What type of organizational structure promotes specialization of labor and allows rapid
decision making?
A) Divisional structure by product
B) Functional structure
C) Divisional structure by customer
D) Strategic business unit
E) Matrix structure
All of the following are cooperative arrangements EXCEPT
A) R&D partnerships.
B) joint-bidding consortia.
C) cross-licensing agreements.
D) cross-manufacturing agreements.
E) marketing plans.
Which of the following is NOT given as an example of a decision that may require
finance/accounting policies?
A) To extend the time of accounts receivable
B) To establish a certain percentage discount on accounts within a specified period of
time
C) To lease or buy fixed assets
D) To use LIFO, FIFO, or a market-value accounting approach
E) To be a price leader or a price follower
Who does a planning horizon of two to five years apply to?
A) Top-level management
B) General management
C) Middle-level management
D) Lower-level management
E) All levels of management
Which of these is NOT a rule of thumb when using product positioning as a
strategy-implementation tool?
A) “The best opportunity might be an unserved segment.”
B) “Look for the hole or vacant niche.”
C) “Try to serve more than one segment with the same strategy.”
D) “Don’t position yourself in the middle of the map.”
E) All of these are valid rules of thumb.
The IFE Matrix should be ________ in multidivisional firms.
A) constructed for each division
B) all-inclusive
C) constructed only for the major divisions
D) developed before the EFE Matrix
E) revised monthly
What are the means by which long-term objectives will be achieved?
A) Strategies
B) Strengths
C) Weaknesses
D) Policies
E) Opportunities