The drive to improve the efficiency of global business operations is leading to lesser
functional specialization.
Reengineering does not usually affect the organizational structure or chart, nor does it
imply job loss or employee layoffs.
Both military and business strategy are formulated, implemented, and evaluated with an
assumption of competition.
Mission statements provide managers with a unity of direction that transcends
individual, parochial and transitory needs by promoting a sense of shared expectations
among all levels and generations of employees.
Most large companies have abandoned the functional structure in favor of
decentralization.
Since a combination strategy bears no risk, many organizations pursue a combination of
two or more strategies simultaneously.
An EPS/EBIT chart can be constructed to determine the break-even point, where one
financing alternative becomes more attractive than another.
There is a trend of people moving to the West Coast from the Rocky Mountain states
for more affordable living.
According to Drucker, the most important time for a company to develop mission and
vision statements is when the company is experiencing financial difficulty.
According to research, the most successful new product companies use a research and
development strategy that ties internal strengths to external opportunities and is linked
with objectives.
Hawaiian Airlines beginning to offer flights from Hawaii to Seoul, Korea, and Tokyo,
Japan, rather than mostly flying to and from the U.S. mainland, is an example of which
type of strategy?
A) Forward integration
B) Backward integration
C) Horizontal integration
D) Market development
E) Product development
Subdividing a market into distinct subsets of customers according to their needs and
buying habits is known as
A) market penetration.
B) product diversification.
C) market segregation.
D) market segmentation.
E) positioning.
_______ is NOT a major factor that commonly prohibits effective resource allocation.
A) Underprotection of resources
B) Organizational politics
C) Having vague strategy targets
D) A reluctance to take risks
E) A lack of sufficient knowledge
Freund emphasizes that key external factors should be all of these EXCEPT
A) important to achieving long-term and annual objectives
B) measurable
C) relatively few in number
D) applicable to all competing firms
E) hierarchical in the sense that some will pertain to the overall company while others
will be more narrowly focused
Which strategy should be implemented when a division is responsible for an
organization’s overall poor performance?
A) Backward integration
B) Divestiture
C) Forward integration
D) Cost leadership
E) Related diversification
When an industry relies heavily on government contracts, which forecasts can be the
most important part of an external audit?
A) Economic
B) Political
C) Technological
D) Competitive
E) Multinational
The match an organization makes between its internal resources and skills and the
opportunities and risks created by its external factors can be defined as
A) input.
B) concept formulation.
C) strategy.
D) SWOT.
E) weakness.
If you discover during the course of strategy evaluation that major changes have
occurred in the firm’s internal strategic position, you should
A) continue on the present strategic course.
B) wait until the next quarter to see if things revert.
C) take corrective actions.
D) follow the original strategic plan.
E) none of the above
________ countries are market leaders in labor-intensive industries and ________
offers abundant natural resources and rapidly developing markets.
A) East Asian; Brazil
B) South American; Germany
C) East Asian; Germany
D) South American; Brazil
E) European; Japan
Preserving the environment should be a permanent part of doing business for which of
the following reasons?
A) Consumer demand for environmentally safe products and packages is low.
B) Public opinion demanding that firms conduct business in ways that preserve the
natural environment is weak.
C) Federal and state environmental regulations are fairly simple and static.
D) Many consumers, suppliers, distributors, and investors shun doing business with
environmentally strong firms.
E) More lenders are examining the environmental liabilities of businesses seeking
loans.
Research suggests that which of the following is one of the best ways to overcome
individuals’ resistance to change in strategy evaluation?
A) Participation
B) Command-and-control
C) Laissez-faire system
D) Rational argument
E) Emotional reactions
Internal ________ are activities in an organization that are performed especially well.
A) opportunities
B) incompetencies
C) strengths
D) objectives
E) factors
The high unemployment rate in the U.S. is an example of a(n) ________ force affecting
business.
A) social
B) economic
C) cultural
D) technological
E) historical