A form of customer analysis is administering customer surveys.
Organizing is the cornerstone of effective strategy formulation.
It is an exaggeration to say that in an industry that is global, the riskiest possible posture
is to remain a domestic competitor.
A bottom-up flow of communication is essential for developing top-down support.
Annual objectives are especially important in strategy formulation.
The most common type of financial budget is the capital budget.
According to Porter, strategies allow organizations to gain competitive advantage from
three different bases: cost leadership, differentiation, and decentralization.
A new wave of ethics issues has accentuated the need for strategists to develop a clear
code of business ethics.
Which ratio is calculated by dividing profits before interest and taxes by total interest
charges?
A) Inventory turnover
B) Fixed assets turnover
C) Total assets turnover
D) Debt-to-equity ratio
E) Times-interest-earned ratio
________ and ________ are external forces transforming business and society today.
A) Online social networking; strategy
B) Online social networking; high energy prices
C) Strategy; high energy prices
D) Corporate culture; stakeholders
E) Stakeholders; strategy
In order to appeal to its diverse stakeholders, an effective mission statement should be
A) inflammatory.
B) provocative.
C) contentious.
D) reconciliatory.
E) dysfunctional.
Which of the following is NOT true concerning the Japanese concept of Wa?
A) Nearly all corporate activities in Japan encourage Wa among managers and
employees.
B) Discussions potentially disruptive to Wa are generally conducted in very formal
settings.
C) The potential attractiveness of alternative business decisions are evaluated in terms
of their long-term effect on the group’s Wa.
D) Entertaining is an important business activity in Japan because it strengthens Wa.
E) The Wa concept involves group loyalty and consensus.
Venture capital investments in clean technology companies are ________.
A) increasingly rare
B) down slightly
C) increasing dramatically
D) stable
E) a conflict of interest
The top row of a QSPM consists of alternative strategies derived from all of the
following EXCEPT
A) Grand Strategy Matrix.
B) BCG Matrix.
C) SPACE Matrix.
D) CPM Matrix
E) IE Matrix.
At the start of 2011 Myspace’s customer base was ________ million, while Facebook’s
base at the same time numbered ________ million.
A) 80/100
B) 100/80
C) 80/500
D) 350/500
E) 500/350
The first step in strategic planning is generally
A) developing a vision statement.
B) establishing goals and objectives.
C) making a profit.
D) developing a mission statement.
E) determining opportunities and threats.
Communication between domestic headquarters and overseas operations is often made
difficult by
A) geographic distance.
B) cultural differences.
C) variations in business practices.
D) national differences.
E) all of the above
What analytical tool has four quadrants based on two dimensions: competitive position
and market growth?
A) Competitive Profile Matrix
B) Internal-External Matrix
C) SPACE Matrix
D) Grand Strategy Matrix
E) QSPM