The midpoint on the x-axis of a BCG Matrix is typically set at 0.05.
The BCG Matrix requires more information about the divisions than the IE Matrix.
Europeans are especially motivated by pay-for-performance, commission salaries, and
objective measurement and reward systems.
Strategy evaluation is becoming increasingly easier with the passage of time, given
technological advances.
When developing a vision statement, input should be received from as many managers
as possible.
Production processes typically constitute less than 50 percent of a firm’s total assets.
When the rational type change strategy is successful, strategy implementation can be
relatively easy.
Strategic objectives include those associated with growth in revenues, growth in
earnings, higher dividends, larger profit margins, and improved cash flow.
R&D policies can enhance strategy implementation efforts to emphasize product or
process improvements.
Attracting customers is a major reason for developing a mission statement.
Motivation is one explanation why some people work hard and others do not.
Strategy formulation is the managing of forces during the action, whereas strategy
implementation is the positioning of forces before the action.
Product development is an appropriate strategy when an organization has successful
products that are in the maturity stage of the product life cycle.
Financial ratio analysis really should not go beyond the actual calculation and
interpretation of ratios.
Not allocating resources according to the priorities indicated by approved objectives is
detrimental to the strategic-management process.
What is a limitation of using financial budgets?
A) They can be so detailed that they are cumbersome and expensive.
B) They can become a substitute for objectives.
C) They can hide inefficiencies if done only on precedent.
D) They are sometimes used as instruments of tyranny.
E) All of the above
Websites that sell products directly to consumers are examples of which type of
strategy?
A) Backward integration
B) Product development
C) Forward integration
D) Horizontal integration
E) Conglomerate diversification
A concern in matching managers with strategy is that jobs have relatively ________
responsibilities, while people are ________ in their personal development.
A) static; dynamic
B) dynamic; static
C) quick; slow
D) exciting; dull
E) dull; exciting
Which of the following does the text call an up-front investment in success?
A) Planning
B) Organizing
C) Motivating
D) Staffing
E) Controlling
According to Fortune magazine, which of the following was among the least admired
companies for social responsibility in 2011?
A) Statoil
B) Ferrovial
C) General Electric
D) Walt Disney
E) None of the above
Which type of statement should be created first and foremost?
A) Strategic
B) Vision
C) Objectives
D) Mission
E) Competitive advantage
Which of the following is NOT true regarding European workers and workplaces?
A) Most European workers are unionized.
B) Most European workers enjoy more frequent vacations and holidays than U.S.
workers.
C) Guaranteed permanent employment is typically a part of employment contracts in
Europe.
D) Many Europeans respond enthusiastically to pay-for-performance, commission
salaries, and objective measurement reward systems.
E) Many Europeans find the notion of team spirit difficult to grasp.
For companies located in Quadrant III of the Grand Strategy Matrix, the first strategy
recommended is
A) extensive cost and asset reduction.
B) asset expansion.
C) employee expansion.
D) immediate liquidation of assets.
E) divestiture.
In the BCG Matrix, which strategy would be most appropriate for a division classified
as a Dog?
A) Market penetration
B) Market development
C) Product development
D) Retrenchment
E) Forward integration
Opportunity analysis is one of the basic functions of
A) marketing.
B) finance/accounting.
C) computer information systems.
D) production/operations.
E) research and development.
All of the following are principles of good organizational governance, as established by
Business Week, EXCEPT
A) Each director attends at least 75 percent of all meetings.
B) The audit, compensation and nominating committees are made up solely of outside
directors.
C) Each director owns a large equity stake in the company, excluding stock options.
D) At least three directors are current or former company executives.
E) The CEO is not also the Chairperson of the Board.
The purpose of a mission statement is to declare all of these EXCEPT
A) a reason for being
B) an annual financial plan
C) a statement of purpose
D) a statement of beliefs
E) whom it wants to serve
Selling includes all of these marketing activities EXCEPT
A) advertising
B) dealer relations
C) customer analysis
D) publicity
E) sales promotion
An effective mission statement does all of the following EXCEPT
A) it reflects judgments about future growth directions that are based upon
forward-looking external and internal analyses
B) it provides useful criteria for selecting among alternative strategies
C) it provides a basis for generating and screening strategic options
D) it is static in orientation
E) it should be enduring
Which of these is a basic activity of strategy evaluation?
A) Reviewing the underlying bases of current strategies
B) Comparing expected results with actual results
C) Taking corrective actions
D) Choices B and C only
E) All of the above
Which chapter of the bankruptcy code applies to municipalities?
A) Chapter 7
B) Chapter 8
C) Chapter 9
D) Chapter 12
E) Chapter 13
Which term is primarily concerned with shareholder well-being rather than employee
well-being?
A) Benchmarking
B) Reengineering
C) Product redesign
D) Process management
E) Restructuring
Which of these basic questions should a vision statement answer?
A) What is our business?
B) Who are our employees?
C) What are our challenges?
D) What do we want to become?
E) Who are our competitors?
Under which strategy would you offer products or services to a wide range of customers
at the lowest price available on the market?
A) Cost Leadership – Low Cost
B) Cost Leadership – Best Value
C) Focus – Low Cost
D) Focus – Best Value
E) Differentiation
What are five differences between strategy formulation and strategy implementation?
Discuss guidelines used to determine whether a firm should conduct R&D internally or
externally.
Compare and contrast Ralph Nader’s and Milton Friedman’s positions on social
responsibility. With whose view do you agree?
Explain why it is important to encourage whistle-blowing in a firm.
Discuss at least five potential advantages to initiating, continuing, and/or expanding
international operations.