The only costs involved in going public are the initial costs.
Foreign banks currently operate and compete in most parts of the United States.
Five major categories of external variables are:
1) economic forces,
2) social, cultural, demographic, and natural environment forces,
3) political, governmental, and legal forces,
4) technological forces and demographic forces.
The process of strategic management is facilitated immensely in firms that have an
effective information system.
Like the United States, Japan is eager to rely on large-scale immigration to bolster its
workforce.
A positive feature of QSPM is that sets of strategies can be examined sequentially or
simultaneously.
Although the Internet has increased in popularity, it has actually led to increases in
company expenses.
The terms strategic management and strategic planning are synonymous in this text.
A mission statement should be broad enough to reconcile differences among an
organization’s various stakeholders.
Identifying both beneficial and unfavorable events that could possibly derail the
strategy or strategies is the first step of effective contingency planning.
Exchanging members of conflicting parties so each can gain an appreciation of the
other’s point of view exemplifies a confrontation approach.
What tactic involves shifting focus from specific issues to more general ones?
A) Equifinality
B) Focus on Higher-Order Issues
C) Generalization
D) Satisfying
E) None of the above
Not all sectors of the economy are equally affected by technological developments; the
________ industry is much more volatile than the ________ industry.
A) textile; communications
B) pharmaceutical; forestry
C) metals; electronics
D) forestry; communications
E) textile; pharmaceutical
________ perhaps has instituted the most protectionist measures in recent months by
raising tariffs on most imports and subsidizing its own exports.
A) Russia
B) The United States
C) The EU
D) India
E) Switzerland
Which function of management includes all of those activities undertaken to ensure
actual operations conform to planned operations?
A) Planning
B) Organizing
C) Motivating
D) Staffing
E) Controlling
Which strategy is appropriate when an organization competes in an industry
characterized by rapid technological developments?
A) Retrenchment
B) Product development
C) Backward integration
D) Liquidation
E) Market penetration
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 determine the amount of product diversification
How many cells are in a SWOT Matrix?
A) Two
B) Four
C) Six
D) Eight
E) Nine
What level of management is directly affected by strategy implementation?
A) Plant managers
B) Sales managers
C) Project managers
D) Division managers
E) All of the above
Whereas ________ businesses embody individualism, achievement, competition, and
informality, ________ businesses stress collectivism, continuity, cooperation, and
formality.
A) Japanese; Mexican
B) Mexican; Japanese
C) Mexican; American
D) American; Mexican
E) Japanese; American
Simply having a code of ethics
A) will ensure ethical business behavior.
B) eliminates the need for periodic ethics workshops.
C) is all that is necessary to sensitize people to workplace circumstances in which ethics
issues may arise.
D) is insufficient to guarantee that employees behave in an ethical manner.
E) secures an ethics culture in the workplace.
All of the following are potential advantages to initiating, continuing, and/or expanding
international operations EXCEPT
A) Firms can gain new customers for their products.
B) Foreign operations can absorb excess capacity, reduce unit costs, and spread
economic risks over a wider number of markets.
C) Foreign operations can allow firms to establish low-cost production facilities in
locations close to raw materials and/or cheap labor.
D) Foreign operations could be seized by nationalistic factions.
E) Foreign operations may result in reduced tariffs, lower taxes, and favorable political
treatment.
________ is not a basic mission of a competitive intelligence program.
A) Providing a general understanding of an industry
B) Providing a general understanding of a company’s competitors
C) Identifying industry executives who could be hired by the firm
D) Identifying areas in which competitors are vulnerable and assessing the impact
strategic actions would have on competitors
E) Identifying potential moves a competitor might make that would endanger a firm’s
position in the market
All of the following are limitations of the BCG Matrix EXCEPT
A) Viewing every business as a star, cash cow, dog or question mark can be an
oversimplification.
B) The Matrix requires at least three years worth of data.
C) The Matrix does not reflect divisional or industry growth over time.
D) The Matrix does not allow a company to be classified as somewhere in between two
categories.
E) Variables such as size of market and competitive advantages are not considered in
the Matrix.
The percentage of persons age 65 or older exceeds 20 percent in Japan, Italy, and
A) Germany.
B) the United States.
C) France.
D) China.
E) all of the above
According to Greenley, strategic management offers all of these benefits EXCEPT
A) it provides an objective view of management problems.
B) it creates a framework for internal communication among personnel.
C) it encourages a favorable attitude toward change.
D) it maximizes the effects of adverse conditions and changes.
E) it gives a degree of discipline and formality to the management of a business.
Policies
A) let both employees and managers know what is expected of them.
B) provide a basis for management control.
C) allow coordination across organizational units.
D) reduce the amount of time managers spend making decisions.
E) all of the above
What percent of strategies formulated are successfully implemented?
A) Less than 10 percent
B) About 30 percent
C) Between 40 and 60 percent
D) Approximately 66 percent
E) More than 80 percent
What are the three categories of approaches for managing and resolving conflict?
A) Avoidance, defusion, and confrontation
B) Avoidance, apathy, and defusion
C) Ignorance, indifference, and apathy
D) Defusion, apathy, and avoidance
E) Indifference, avoidance, and role-playing
Which phase of strategic management is called the action phase?
A) Strategy formulation
B) Strategy implementation
C) Strategy evaluation
D) Allocating resources
E) Measuring performance
With the passage of time strategy evaluation is becoming
A) increasingly difficult.
B) much simpler.
C) very convenient.
D) an unnecessary activity.
E) less important.
List five reasons why preserving the environment should be a permanent part of doing
business.
List three opportunities and three threats that could represent key factors facing your
college or university.
Explain some of the forces leading companies to pursue international operations.
Define and give an example of the self-concept component in a mission statement.
Compare and contrast the IE Matrix with the BCG Matrix.