Orphan drugs offer pharmaceutical companies no economic incentive for profitable
development and distribution.
Organizing is the cornerstone of effective strategy formulation.
Selling a division or part of an organization is called divestiture.
Like the United States, Japan is eager to rely on large-scale immigration to bolster its
workforce.
If an organization chooses to have both a mission and a vision, the mission statement
should be established first.
New Jersey’s goal is to obtain 3 percent of its electricity from the sun and 12 percent
from offshore wind by 2020.
Europeans are especially motivated by pay-for-performance, commission salaries, and
objective measurement and reward systems.
Tasks and activities are grouped together by business function in a divisional
organizational structure.
Competitive advantages normally are the result of superiority in one of three areas:
feasibility, consistency, or consonance.
Resistance to change can be considered the single greatest threat to successful strategy
implementation.
One of the benefits of having a clear mission and vision is promoting a sense of shared
expectations among all managers and employees.
What principle is built on the idea that there is no general plan for which way to go and
what to do?
A) Managing by crisis
B) Managing by extrapolation
C) Managing by objectives
D) Managing by hope
E) Managing by subjectives
In 2012, how many Fortune 500 have women CEOs?
A) Two
B) Five
C) Twelve
D) Eighteen
E) Twenty-two
Retrenchment would be an effective strategy when an organization
A) has shrunk so quickly that major internal reorganization is needed.
B) is one of the stronger competitors in a given industry.
C) is plagued by inefficiency, low profitability, poor employee morale and pressure
from stockholders to improve performance.
D) has decided to capitalize on opportunities, maximize threats, take advantage of
strengths and overcome weaknesses.
E) does not have a clearly distinctive competence and has failed to meet its objectives
and goals consistently over time.
In low-earning periods, too much ________ in the capital structure of an organization
can endanger stockholders’ return and jeopardize company survival.
A) debt
B) liquidity
C) equity
D) cash
E) tax liability
A revised ________ should indicate how effective a firm’s strategies have been in
response to key opportunities and threats.
A) IFE matrix
B) mission
C) EFE matrix
D) vision
E) CPM matrix
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
Which stage of the strategy-formulation framework involves the Quantitative Strategic
Planning Matrix?
A) Stage 1
B) Stage 2
C) Stage 3
D) Stage 4
E) Stage 5
An important business activity in Japan is entertaining because it strengthens Wa.
Which statement best describes intuition?
A) It alone should be used in decision-making.
B) It represents a minor factor in decision-making integrated with analysis.
C) It should be coupled with analysis in decision-making.
D) It is better than analysis in decision-making.
E) It is management by ignorance.
All stakeholders’ claims on an organization ________ pursued with equal emphasis.
A) cannot be
B) should always be
C) are required to be
D) must ideally be
E) can usually be
What change strategy involves giving orders and enforcing those orders?
A) Self-interest
B) Educative
C) Force
D) Rational
E) Defusion
An organization’s vision statement
A) is a constant reminder to its employees of why the organization exists.
B) broadly charts the future direction of an organization.
C) addresses the basic question: “What is our business?”
D) answers the question: “What do we want to become?”
E) none of the above
________ 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
When companies take over functional operations of other firms, such as human
resources, information systems, payroll, accounting, or customer service, this is called
A) marketing.
B) outsourcing.
C) licensing.
D) franchising.
E) divestiture.
Effective and carefully planned mission statements
A) require major changes every few months.
B) require major changes every few quarters.
C) require major revision every few years.
D) become ineffective in the first year.
E) stand the test of time.
Discuss the appropriate role of a board of directors in an organization.
Compare and contrast the five types of bankruptcy: Chapters 7, 9, 11, 12 and 13.
Explain why strategy evaluation can be a complex and sensitive undertaking.
Discuss at least five potential disadvantages to initiating, continuing, and/or expanding
international operations.
According to Michael Porter, what are the five competitive forces that create vital
opportunities and threats for organizations? Which force do you feel is most important
in the computer industry today? Why?