According to Porter, seeing clothing firms such as Under Armour enter the athletic shoe
industry would reflect a
A) medium bargaining power of suppliers.
B) low threat of substitutes.
C) medium bargaining power of buyers.
D) high threat of potential entrants.
E) low competitive intensity.
Answer:
The monitoring, evaluating, and disseminating of information from the external and
internal environments to key people within the corporation is referred to as
A) environmental scanning.
B) external scanning.
C) internal scanning.
D) strategy formulation.
E) strategy implementation.
Answer:
Which of the following is NOT one of the questions that development of a competitive
strategy should raise?
A) Should we compete on the basis of lower cost?
B) Should we compete head-to-head with major competitors?
C) Should we differentiate our products or services on some basis other than cost?
D) Should we compete by garnering political support of influential leaders?
E) Should we compete in a niche market that we can satisfy which is superior to that of
the competition?
Answer:
The radical redesign of business processes to achieve major gains in cost, service, or
time is called
A) total quality management.
B) reengineering.
C) management by objectives.
D) action planning.
E) statistical process control.
Answer:
An advantage of ROI as a measure of performance is that
A) it is sensitive to book value.
B) it provides an incentive to use existing assets efficiently.
C) the time span of concern is short range.
D) the business cycle strongly affects ROI performance often despite managerial
performance.
E) it is very sensitive to depreciation policy.
Answer:
An organization skilled at creating, acquiring, and transferring knowledge, and at
modifying its behavior to reflect new knowledge and insights is a(n)
A) learning organization.
B) strategically managed corporation.
C) innovative organization.
D) hypercompetitive competitor.
E) entrepreneurial firm.
Answer:
Management contracts are used in international dealings
A) as a way in which an MNC may contract with a foreign government or local firm to
trade raw materials for certain resources belonging to the MNC.
B) as a way in which an MNC can take total control of operations by either starting a
business from scratch or acquiring a firm already established in the host country.
C) when a corporation chooses to build a facility from scratch allowing it the freedom
to design the plant, choose suppliers, and hire a workforce.
D) when an MNC has a large amount of management talent available and chooses to
use its personnel to assist a firm in a host country for a specified fee and period of time.
E) when an MNC typically contracts for construction of operating facilities in exchange
for a fee.
Answer:
The quick ratio is also known as the
A) key profitability ratio.
B) EPS.
C) acid test.
D) asset turnover.
E) key activity ratio.
Answer:
Which one of the following best describes a conglomerate structure?
A) Work is divided into subunits on the basis of such functions as manufacturing,
marketing, finance, and human resources.
B) This is most appropriate for large corporations with many product lines in several
related industries, with employees acting as functional specialists attempting to gain
synergy among divisional activities.
C) This is most appropriate for small, entrepreneur-dominated companies with one or
two product lines that operate in a small niche market, with employees acting as
jack-of-all trades.
D) Employees have two or more superiors, a project manager and a functional manager.
E) This is most appropriate for large corporations with many product lines in several
unrelated industries; unrelatedness prevents any attempt at gaining synergy among the
divisions.
Answer:
Business strategy focuses on
A) ensuring that the company maintains the existing market share that it has historically
enjoyed.
B) improving the competitive position of a corporation’s products or services within the
industry or market segment served.
C) providing adequate shareholders’ return on investment.
D) preventing the competition from gaining a competitive edge by undermining their
marketing plan.
E) recovering the competitive lead by using all available resources that the company
can provide.
Answer:
When the value chains of two separate products or services share activities, such as the
same marketing channels, in order to reduce costs, this is an example of
A) economies of scope.
B) economies of scale.
C) economies of integration.
D) economies of learning.
E) outsourcing.
Answer:
“Earnings per share” is an example of a(n)
A) leverage ratio.
B) liquidity ratio
C) activity ratio.
D) asset management ratio.
E) profitability ratio.
Answer:
When a company spends a large amount of money on trade promotion in order to gain
or hold shelf space in retail outlets, a company is using a ________ strategy.
A) pull
B) push
C) financial
D) dedicated line
E) dynamic pricing
Answer:
When Admiral was acquired by Maytag Corporation, the Admiral employees were
willing to accept the dominance of Maytag’s strong quality-oriented culture because
they respected it. This demonstrates which approach to managing culture?
A) integration
B) separation
C) deculturation
D) assimilation
E) segmentation
Answer:
What percent of U.S. companies actively monitored their workers’ website visits
according to an American Management Association study?
A) 0%
B) 25%
C) 33%
D) 50%
E) 66%
Answer:
Many companies have found that outsourcing logistics
A) helps centralize logistics.
B) reduces costs and improves delivery time.
C) is an effective business-level strategy.
D) helps the companies differentiate themselves.
E) all of the above
Answer:
The type of strategy which achieves corporate and business unit objectives and
strategies by maximizing resource productivity is
A) functional.
B) operational.
C) business.
D) product.
E) corporate.
Answer:
The combining of tasks to give a worker more of the same type of duties to perform is
known as
A) job combination.
B) job rotation.
C) job enrichment.
D) job enlargement.
E) job motivation.
Answer:
According to Miles and Snow, which strategic orientation is demonstrated by
companies that have a limited product line and focuses on improving the efficiency of
their existing operations?
A) initiators
B) reactors
C) analyzers
D) prospectors
E) defenders
Answer:
A study by Korn/Ferry found that ________ of U.S. boards of directors had at least one
ethnic minority member in 2007.
A) 6%
B) 26%
C) 47%
D) 78%
E) 96%
Answer:
The term “social responsibility,” according to Carroll, can be viewed as a combination
of an
A) organization’s ethical and discretionary responsibilities.
B) organization’s legal and ethical responsibilities.
C) organization’s economic and ethical responsibilities.
D) organization’s financial and economic responsibilities.
E) organization’s legal and discretionary responsibilities.
Answer:
According to a study of downsizing in the automobile-related industry, all of the
following are problems associated with inappropriate downsizing EXCEPT
A) outsourcing was eliminated.
B) blanket offers for early retirement prompted even valuable employees to leave.
C) surviving employees experienced decreased morale.
D) surviving employees had to do extra work in addition to their own.
E) the wrong jobs were eliminated.
Answer:
The mode of strategy formulation used when top management has a reasonably clear
idea of the corporation’s mission and objectives, but it chooses to develop a series of
tentative or partial strategies instead of developing full-blown strategies is called
A) planning mode.
B) logical incrementalism.
C) entrepreneurial mode.
D) adaptive mode.
E) strategic mode.
Answer:
The term used in strategic implementation that describes a statement of activities or
steps needed to accomplish a single-use plan and whose use is to make the strategy
action-oriented is
A) program.
B) guidelines.
C) budgets.
D) course of action.
E) procedures.
Answer:
The U.S. Navy quip, “What you inspect (or reward) is what you get” reflects
A) behavior substitution.
B) suboptimization.
C) output control.
D) ERP.
E) none of the above
Answer:
In 2011, the Ethics Resource Center found that ________ percent of employees
surveyed had witnessed misconduct at work and ________ percent had reported it.
A) 65; 45
B) 65; 65
C) 60; 20
D) 45; 65
E) 45; 45
Answer:
A survey of 600 business units found that compensation programs emphasizing bonuses
and other incentives were most used in those units emphasizing
A) stability strategies.
B) retrenchment strategies.
C) cooperative strategies.
D) international strategies.
E) growth strategies.
Answer:
A lead director
A) has not been a popular approach in the United Kingdom.
B) creates a balance of power when the CEO is also Chair of the Board.
C) has lost popularity in the United States since 2003.
D) has no involvement in the CEO’s evaluation.
E) totally replaces the CEO position.
Answer:
According to the text, the process of replacing a key top manager is called
A) executive succession.
B) executive placement.
C) executive strategy.
D) executive search.
E) executive outside succession.
Answer:
What is the main purpose of conducting outside research into the environmental setting
of the case?
A) It allows students to identify how the company addressed the problem.
B) It provides a learning experience on library usage which is helpful in all courses.
C) It gives a realistic background of the industry during a specified period.
D) It gives you clues as to what the organization should be doing in the future.
E) It furnishes large amounts of data both pertinent and extraneous.
Answer:
Which kind of corporate strategy deals with the manner in which the firm coordinates
activities and builds corporate synergies through resource sharing and development?
A) portfolio strategy
B) directional strategy
C) parenting strategy
D) cooperative strategy
E) functional strategy
Answer: