A force change strategy is plagued by low commitment and high resistance.
Business ethics can be defined as principles of conduct within organizations that guide
decision making and behavior.
Corporate social policy should be designed and articulated during strategy formulation.
The U.S. Chamber of Commerce supports the change from GAAP to IFRS, saying it
will help the U.S. compete in the world economy.
Firms should strive to engage in social activities that have no economic benefits, to
avoid their being viewed as public relations ploys.
Some of the largest payouts for class-action legal fraud suits ever were against Enron
($7.16 billion) and WorldCom ($6.16 billion).
A rational change strategy means giving orders and enforcing those orders.
It is vital that strategists always consider all feasible alternatives that could benefit the
firm.
Public enterprises generally cannot diversify into unrelated businesses or merge with
other firms.
Forecasts are educated assumptions about future trends and events.
Which of the following is NOT an accepted approach for determining a business’
worth?
A) determining what the firm owns
B) determining what the firm earns
C) determining what the firm’s return on investment has been
D) determining what the firm will bring in the market
E) All of the above are accepted approaches.
________ organizations require more elaborate and detailed strategy-evaluation
systems than ________ ones because it is more difficult to coordinate efforts among
different divisions and functional areas.
A) Non-profit; for-profit
B) For-profit; non-profit
C) Large; small
D) Small; large
E) Foreign; domestic
Which matrix is included in the decision stage of the strategy formulation framework?
A) Internal Factor Evaluation Matrix
B) Quantitative Strategic Planning Matrix
C) Boston Consulting Group Matrix
D) Grand Strategy Matrix
E) Strategic Position and Action Evaluation Matrix
A business’ mission is the foundation for all of the following EXCEPT
A) priorities
B) strategies
C) plans
D) employee wage rates
E) work assignments
Which pay strategy is NOT a form of incentive compensation?
A) Bonus system
B) Hourly wage
C) Gain sharing
D) Profit sharing
E) All of the above are forms of incentive compensation.
Which variable would be considered part of the “place” element of the marketing mix?
A) Product line
B) Service level
C) Personal selling
D) Sales territory
E) Discounts and allowances
A highly ethical company that does an excellent job on social responsibility and
environmental sustainability issues, GM spent ________ million in the last quarter of
2010 to give its U.S. union employees profit-sharing payments.
A) $42
B) $135
C) $200
D) $339
E) $500
All of the following utility statements are relevant in developing a mission statement
EXCEPT
A) Do not offer me shoes. Offer me comfort for my feet and the pleasure of walking.
B) Do not offer me furniture. Offer me comfort and the quietness of a cozy place.
C) Do not offer me ideas, emotions, ambience, feelings, and benefits. Offer me things.
D) Do not offer me books. Offer me hours of pleasure and the benefit of knowledge.
E) Do not offer me clothes. Offer me attractive looks.
________ is used to refer to strategic formulation, implementation and evaluation, with
________ referring only to strategic formulation.
A) Strategic planning; strategic management
B) Strategic planning; strategic processing
C) Strategic management; strategic planning
D) Strategic management; strategic processing
E) Strategic implementation; strategic focus
Too much emphasis on evaluating strategies
A) may be expensive and counterproductive.
B) is not possible – the more emphasis the better.
C) is good for morale, as employees like being closely evaluated.
D) is always advised if the firm can afford it.
E) is worse than too little or no evaluation.