Cash Cows represent the organization’s best long-run opportunities for growth and
profitability.
Resource allocation is included in strategy-formulation activities.
Most companies favor related diversification strategies in order to exploit common use
of a well-known brand name.
A low value of the dollar means lower exports and higher imports.
In practice, critical technology decisions are too often delegated to lower organizational
levels or are made without an understanding of their strategic implications.
In socialist countries such as France, Belgium, and the United Kingdom, the only
grounds for immediate dismissal from work is a criminal offense.
One of the benefits of having a clear mission and vision is promoting a sense of shared
expectations among all managers and employees.
One of the ways in which the Internet has transferred power from businesses to
individuals is by making comparison-shopping quick and easy.
Value chain analysis can enable a firm to better identify its own strengths and
weaknesses especially as compared to competitors’ value chain analyses.
It is generally not recommended for companies with less than $10 million in sales to go
public.
Yum Brands, which owns KFC and Pizza Hut, reported in 2011 that its China division
overtook the U.S. in profits generated.
Strategies clarify what can and cannot be done in pursuit of an organization’s
objectives.
Which analytical tool determines the relative attractiveness of various strategies based
on the extent to which key external and internal critical success factors are capitalized
upon or improved?
A) BCG Matrix
B) SPACE Matrix
C) SWOT Matrix
D) IE Matrix
E) QSPM
Which of the following is the first step in developing an IFE Matrix?
A) Determining the organization’s structure
B) Summing the weighted scores for each variable
C) Identifying the organization’s strengths and weaknesses
D) Identifying the organization’s functions of business
E) Assigning a weight to each factor
_______ is a set of standards in fields such as environmental auditing, performance
evaluation, and labeling, that is adopted by thousands of firms worldwide to certify to
their constituencies that they are conducting business in an environmentally friendly
manner.
A) ISO 14001
B) EMS 14000
C) UN 5000
D) SEC 100
E) A sustainability report
What category of ratios measures a firm’s ability to meet maturing short-term
obligations?
A) Profitability
B) Liquidity
C) Leverage
D) Activity
E) Growth
Who are the world’s longest-living people?
A) Americans
B) Mexicans
C) Indians
D) Filipinos
E) Japanese
Which of these is the most common type of budgeting time frame?
A) Daily
B) Quarterly
C) Annual
D) Every decade
E) Monthly
Which of the following is NOT one of the four perspectives from which the Balanced
Scorecard allows firms to evaluate strategies?
A) Social responsibility
B) Financial performance
C) Customer knowledge
D) Internal business processes
E) Learning and growth
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
Which of the following statements about contingency plans is NOT true?
A) Contingency plans should be as simple as possible.
B) Only high-priority areas require the insurance of contingency plans.
C) Contingency plans should be developed for favorable and unfavorable events.
D) Strategists should plan for all possible contingencies.
E) Contingency plans minimize the impact of potential threats.
The one factor that has most significantly impacted the nature and core of buying and
selling in nearly all industries has been
A) the Internet.
B) political borders.
C) corporate greed.
D) customer and employee focus.
E) the government.
Which section of the SWOT Matrix involves matching internal strengths with external
opportunities?
A) The WT cell
B) The SW cell
C) The WO cell
D) The ST cell
E) The SO cell
Which stage in the strategy-formulation framework focuses on generating feasible
alternative strategies?
A) Input
B) Output
C) Decision
D) Throughput
E) Matching
Multinational corporations face unique and diverse risks, which include all of the
following EXCEPT
A) favorable foreign court interpretations of contracts and agreements
B) currency losses through exchange rate fluctuations
C) social/political disturbances
D) import/export restrictions
E) tariffs
Which U.S. industry is already greatly challenged by foreign competitors?
A) Printing
B) Retailing
C) Retail banking
D) Consumer packaged goods
E) None of the above
What is a central strategy-implementation technique that allows an organization to
examine the expected results of various actions and approaches?
A) EPS/EBIT
B) Financial budgeting
C) TOWS analysis
D) Projected financial statement analysis
E) External analysis
Distribution includes
A) customer analysis.
B) pricing.
C) warehousing.
D) advertising.
E) test marketing.
Backward integration is effective in all of these cases EXCEPT
A) when an organization competes in an industry that is growing rapidly
B) when an organization has both capital and human resources to manage the new
business of supplying its own raw materials
C) when an organization needs to acquire a needed resource quickly
D) when the advantages of stable prices are not important
E) when present suppliers have high profit margins
What are the marketing mix component variables? Give some examples of each.