Geographic distance and cultural differences are two of the factors that can make
communication between domestic headquarters and overseas operations difficult.
Strategists in multinational corporations are often confronted with the need to be
globally competitive and nationally responsive at the same time.
An internal audit task force of managers could be charged with determining a specific
number (usually 10 to 20) of the most important strengths and weaknesses.
Limiting an organization’s expenditures is the primary purpose of financial budgets.
The United States has been more active than other nations in protectionist measures and
has engaged in many “Buy American” policies.
Divestiture would be an appropriate strategy when a need exists to introduce a new
technology quickly.
Total attractiveness scores are defined as the sum of the attractiveness scores in a given
column of the QSPM and are computed in the second step of the QSPM.
Chapter 7 bankruptcy is a liquidation procedure used only when a firm sees no hope of
being able to operate successfully or to obtain necessary creditor agreement.
One of the steps of the SWOT Matrix is to list the firm’s key external opportunities.
Intelligence gathering is an unethical business practice.
In general, the Internet makes market segmentation easier.
One aspect of the global challenge faced by U.S. business involves the complications of
having to deal with two or more monetary systems.
In Mexico, business associates usually entertain each other at their homes.
Anything that a firm does especially well compared to rival firms is referred to as
A) competitive advantage.
B) comparative disadvantage.
C) opportunity cost.
D) unsustainable advantage.
E) an external opportunity.
What can be defined as the art and science of formulating, implementing and evaluating
cross-functional decisions that enable an organization to achieve its objectives?
A) Strategy formulation
B) Strategy evaluation
C) Strategy implementation
D) Strategic management
E) Strategic leading
________ is NOT part of an external audit.
A) Analyzing competitors
B) Analyzing financial ratios
C) Analyzing available technologies
D) Studying the political environment
E) Analyzing social, cultural, demographic and natural environment forces
The recommended length of an effective mission statement is ________ words.
A) approximately 25
B) no more than 100
C) less than 250
D) at least 300
E) more than 500
What is the essential bridge between the present and the future that increases the
likelihood of achieving desired results?
A) Motivating
B) Planning
C) Controlling
D) Staffing
E) Organizing
A firm’s power and prestige in domestic markets may be significantly enhanced if the
firm competes globally, ________.
A) which can translate into improved negotiating power among important groups
B) though this rarely results in a practical advantage
C) but this can hurt its bargaining power with suppliers and distributors
D) yet this does nothing to improve its position with creditors
E) which can alienate the firm from its domestic creditors, suppliers, and distributors
The ideal length of a vision statement is
A) one page.
B) several paragraphs.
C) one sentence.
D) several sentences.
E) as long as is necessary to convey the message.
Strategy-evaluation activities should ideally be performed
A) just on a periodic basis.
B) only at the onset of a problem.
C) on a continuous basis.
D) solely upon completion of major projects.
E) annually only.
All of the following are listed among the ‘softer” factors in the Balanced Scorecard
EXCEPT
A) customer service
B) employee morale
C) product quality
D) business ethics
E) stockholder equity
Changes in the organization’s management, marketing, finance/accounting,
production/operations, R&D, and MIS strengths and weaknesses should be the focus of
a revised
A) mission.
B) IFE matrix.
C) vision.
D) EFE matrix.
E) EPM matrix.
According to the text, the first social responsibility of any business is to
A) make enough profit to cover the costs of the future, because if this is not achieved
then no other social responsibility can be met.
B) avoid laying off employees so as to protect the employees’ livelihood, even if that
decision may force the firm to liquidate.
C) engage in social activities that have no economic benefits, to avoid the appearance of
a public relations gimmick.
D) offer courses and training in environmental management.
E) none of the above
Medium-sized firms tend to use which type of structure?
A) Divisional
B) Matrix
C) SBU
D) Functional
E) Centralized
All of the following statements regarding the recent trend in Japan of switching from
seniority-based pay to performance-based approaches are true EXCEPT
A) The switch is an effort to cut costs.
B) The switch is boosting employee morale.
C) The switch is an effort to increase productivity.
D) The switch opposes the traditional training of Japanese employees to cooperate
rather than compete.
E) The switch goes against decades of encouraging workers to work in groups instead
of individually.
The Family Farmer Bankruptcy Act of 1986 created which type of bankruptcy?
A) Chapter 7
B) Chapter 8
C) Chapter 9
D) Chapter 12
E) Chapter 13
Projected financial analysis is an important strategy-implementation technique because
A) it is an exact measurement of financial costs in the future.
B) it is an exact measurement of future company profits.
C) it allows an organization to examine the expected results of various actions and
approaches.
D) insurance needs can be computed.
E) none of the above
Proponents of the top-down approach contend that ________ are the only persons in the
firm with the collective experience, acumen, and fiduciary responsibility to make key
strategy decisions.
A) top executives
B) divisional managers
C) middle-level managers
D) lower-level managers
E) non-management employees
In 2012, how many Fortune 500 have women CEOs ?
A) Two
B) Five
C) Twelve
D) Eighteen
E) Twenty-four
Discuss some forces that influence the formality of strategic-management systems.
Explain how to perform a projected financial analysis.
What are the advantages and disadvantages of a divisional organizational structure?
Compare and contrast the culture in the U.S. with Mexico.
Name at least ten issues that may require a management policy.
Explain the concept of protectionism.