1. An organization’s _____ is a statement of its fundamental, unique purpose that sets a business apart from other firms of
its type and identifies the scope of the business’s operations in product and market terms.
a.
mission
b.
statement of qualification
c.
article of incorporation
d.
operational goal
e.
tactical plan
2. Nutrimax Inc. identifies its purpose as “to produce the finest cookies in the world while upholding our principles of
promoting good health and maintaining environmental sustainability.” This purpose is most likely to be the _____ of
Nutrimax.
a.
strategic goal
b.
distinctive competence
c.
mission statement
d.
operational goal
e.
tactical goal
c
Challenging
p.69
MGMT.GRIF.16. 3-1 – LO: 3-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Strategy
Planning and Organizational Goals
Bloom’s: Application
Digital Story: Perform
3. Which of the following statements is true about strategic goals?
a.
They are set by an organization’s middle managers.
b.
They are set by first-line managers.
c.
They provide plans for the day-to-day operations of an organization.
a
Easy
p.69
MGMT.GRIF.16. 3-1 – LO: 3-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Strategy
Planning and Organizational Goals
Bloom’s: Knowledge
Digital Story: Engage
d.
They focus on broad and general issues.
e.
Their focus is on short-term issues.
4. Strategic goals are set by:
a.
first-line managers.
b.
middle managers.
c.
top managers.
d.
stockholders.
e.
consumers.
5. Goals set for and by line-managers are called _____ goals.
a.
strategic
b.
tactical
c.
developmental
d.
organizational
e.
operational
e
Easy
p.69
MGMT.GRIF.16. 3-1 – LO: 3-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
p.69
MGMT.GRIF.16. 3-1 – LO: 3-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Strategy
Planning and Organizational Goals
Bloom’s: Comprehension
Digital Story: Connect
6. Samantha is responsible for building the day-to-day work schedules for her subordinates. She assigns specific tasks to
her subordinates and designs activities according to the objectives that she receives from her seniors. Samantha works on
_____ plans.
a.
operational
b.
organizational
c.
strategic
d.
divestiture
e.
tactical
a
concern is with shorter-term issues associated with the tactical goals.
Challenging
p.69
MGMT.GRIF.16. 3-1 – LO: 3-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Strategy
Planning and Organizational Goals
Bloom’s: Application
Digital Story: Perform
7. Which of the following statements is true about tactical goals?
a.
Their focus is on how to operationalize actions necessary to achieve strategic goals.
b.
Their focus is on broad and long-term issues such as increasing the profitability of the organization over a
period of time.
c.
They are set for and by top managers.
d.
They are set for and by the board of directors.
e.
They are broad and nonspecific.
a
Tactical goals are set by and for middle managers. Their focus is on how to operationalize
actions necessary to achieve strategic goals.
Moderate
p.69
MGMT.GRIF.16. 3-1 – LO: 3-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Strategy
Planning and Organizational Goals
Bloom’s: Comprehension
Digital Story: Connect
8. The top managers at Redd Inc. are developing a plan to reduce the production costs of the company. By reducing costs,
United States – AK – DISC: Strategy
Planning and Organizational Goals
Bloom’s: Knowledge
Digital Story: Engage
Redd wants to gain a competitive advantage of cost leadership. The plan being developed in this scenario is a(n) _____
plan.
a.
strategic
b.
tactical
c.
operational
d.
contingency
e.
recovery
9. A(n) ____ goal for a waste management plant could be “to develop a recycling campaign for rural communities of less
than 1000 customers.” It would develop naturally out of a strategic goal “to increase recycling by 10% everywhere.”
a.
strategic
b.
departmental
c.
functional
d.
divestiture
e.
tactical
e
Challenging
p.69
10. The top managers of Dietizza, a large low-fat pizza chain, plan to increase the profitability of all its outlets by 15
percent in a period of two years. This is a(n) _____ goal.
a.
tactical
b.
operational
c.
nonspecific
d.
divestiture
e.
strategic
a
Challenging
p.69
11. A(n) _____ plan is a general plan outlining decisions about resource allocation, priorities, and action steps necessary
to reach the goals set by the top managers.
a.
recovery
b.
contingency
c.
operational
d.
tactical
e.
strategic
e
Easy
p.69
12. _____ plans generally have an extended time horizon, and address questions of scope, resource deployment,
competitive advantage, and synergy.
a.
Operational
b.
Contingency
c.
Recovery
d.
Tactical
e.
Strategic
e
Easy
p.69
e
Challenging
p.69
13. Venus Corp. is a large corporation with many strategic business units. The top managers and board of directors are
reviewing the performance of the business units to estimate the amount of resources that each unit will require in the next
few years. The plan created for allocation of resources among the business units of Venus would be a(n) _____ plan.
a.
strategic
b.
tactical
c.
operational
d.
contingency
e.
recovery
a
Challenging
p.69
MGMT.GRIF.16. 3-1 – LO: 3-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Strategy
Planning and Organizational Goals
Bloom’s: Application
Digital Story: Perform
14. A difference between tactical and strategic plans is that:
a.
tactical plans have a more concrete focus.
b.
tactical plans are set for and by the board of directors.
c.
tactical plans have broader time horizons.
d.
strategic plans are developed by first-line managers.
e.
strategic plans deal with the day-to-day operations of an organization.
a
Easy
p.69
MGMT.GRIF.16. 3-1 – LO: 3-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Strategy
Planning and Organizational Goals
MGMT.GRIF.16. 3-1 – LO: 3-1
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
Planning and Organizational Goals
Bloom’s: Knowledge
Digital Story: Engage
15. _____ plans have a short-term focus and are relatively narrow in scope.
a.
Corporate
b.
Tactical
c.
Operational
d.
Contingency
e.
Strategic
c
Easy
p.70
MGMT.GRIF.16. 3-1 – LO: 3-1
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
Planning and Organizational Goals
Bloom’s: Knowledge
Digital Story: Engage
16. Tactical goals are set by:
a.
first-line managers.
b.
middle managers.
c.
assembly-line managers.
d.
stockholders.
e.
investors.
actions necessary to achieve the strategic goals.
Easy
p.69
MGMT.GRIF.16. 3-1 – LO: 3-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Strategy
Planning and Organizational Goals
Bloom’s: Knowledge
Digital Story: Engage
17. Operational goals are set by:
a.
first-line managers.
b.
top-level managers.
c.
the board of directors.
Bloom’s: Comprehension
Digital Story: Connect
d.
shareholders.
e.
investors.
18. The _____ is the component of a strategy that specifies the range of markets in which an organization will compete.
a.
divestiture
b.
competency
c.
scope
d.
resource deployment
e.
deskilling
c
The scope of a strategy specifies the range of markets in which an organization will compete.
Easy
p.71
MGMT.GRIF.16. 3-2 – LO: 3-2
United States – BUSPROG: Reflective Thinking
United States – AK – DISC: Strategy
The Nature of Strategic Management
Bloom’s: Knowledge
Digital Story: Engage
19. Gadgetbug Inc. is known for its extremely efficient after-purchase service. None of Gadgetbug’s competitors provide
the same kind of customer service. Gadgetbug’s _____ is described in the scenario.
a.
scope
b.
divestiture strategy
c.
strategic limitation
d.
process loss
e.
distinctive competence
e
Challenging
p.71
a
p.69
MGMT.GRIF.16. 3-1 – LO: 3-1
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Strategy
Planning and Organizational Goals
Bloom’s: Knowledge
Digital Story: Engage
20. _____ is a way of approaching business opportunities and challenges.
a.
Supply-chain management
b.
Value migration
c.
Self-dealing
d.
Strategic management
e.
Greenwashing
Easy
p.71
MGMT.GRIF.16. 3-2 – LO: 3-2
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Strategy
The Nature of Strategic Management
Bloom’s: Knowledge
Digital Story: Engage
21. Zing Inc. is a large fashion brand that manufactures clothing and shoes. The top managers of Zing have decided to use
the profits from its clothing outlets to invest in the shoes business. This scenario illustrates the _____ component of a
strategy.
a.
resource deployment
b.
scope
c.
distinctive competence
d.
process loss
e.
divestiture
a
Challenging
p.72
MGMT.GRIF.16. 3-2 – LO: 3-2
United States – BUSPROG: Reflective Thinking
The Nature of Strategic Management
Bloom’s: Application
Digital Story: Engage
MGMT.GRIF.16. 3-2 – LO: 3-2
United States – BUSPROG: Reflective Thinking
United States – AK – DISC: Strategy
The Nature of Strategic Management
Bloom’s: Application
Digital Story: Perform
22. A(n) _____ is a comprehensive plan for accomplishing an organization’s goals.
a.
scope
b.
competence
c.
strategy
d.
article of incorporation
e.
statement of qualification
23. _____ is the set of strategic alternatives that helps an organization focus its competitive efforts for each industry or
market in a targeted and focused manner.
a.
Anti-competitive strategy
b.
Divestiture strategy
c.
Corporate-level strategy
d.
Business-level strategy
e.
Operational-level strategy
focused manner.
Easy
p.71
MGMT.GRIF.16. 3-2 – LO: 3-2
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Strategy
The Nature of Strategic Management
Bloom’s: Knowledge
Digital Story: Engage
24. Alba Motorbikes is known for its heavyweight motorcycles. The company places emphasis on the quality of the bikes
and after-sale service. The brand also enjoys customer loyalty. This scenario described Alba Motorbikes’:
a.
distinctive competence.
b.
scope.
c.
process gain.
d.
competitive disadvantage.
e.
related diversification.
Easy
p.71
MGMT.GRIF.16. 3-2 – LO: 3-2
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
The Nature of Strategic Management
Bloom’s: Knowledge
Digital Story: Engage
25. The choices a firm makes as to where and how much to invest reflect issues of _____.
a.
value migration
b.
distinctive competencies
c.
resource deployment
d.
deskilling
e.
industrial symbiosis
c
Moderate
MGMT.GRIF.16. 3-2 – LO: 3-2
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Strategy
The Nature of Strategic Management
Bloom’s: Comprehension
Digital Story: Connect
26. Which of the following questions that companies consider is most closely related to the resource deployment
component of a strategy?
a.
How much money should we invest in our business units overseas?
b.
What are the markets in which we can compete?
c.
What are the preferences of our customers?
d.
Who are our competitors?
e.
How can we make our products more unique in a way that they stand out?
a
Moderate
p.72
MGMT.GRIF.16. 3-2 – LO: 3-2
a
competing firms. It is something the organization does exceptionally well.
Challenging
p.71
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
The Nature of Strategic Management
Bloom’s: Application
Digital Story: Perform
27. _____ strategy is the set of strategic alternatives from which an organization chooses as it manages its operations
simultaneously across several industries and several markets.
a.
Corporate-level
b.
Business-level
c.
Operational-level
d.
Divestiture
e.
Anti-competitive
a
markets.
Easy
p.72
MGMT.GRIF.16. 3-2 – LO: 3-2
United States – BUSPROG: Reflective Thinking
United States – AK – DISC: Strategy
The Nature of Strategic Management
Bloom’s: Knowledge
Digital Story: Engage
28. _____ strategy is the set of strategic alternatives from which an organization chooses as it operates in a particular
industry or market.
a.
Business-level
b.
Corporate-level
c.
Operational-level
d.
Divestiture
e.
Anti-competitive
a
focused manner.
Easy
p.72
MGMT.GRIF.16. 3-2 – LO: 3-2
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
The Nature of Strategic Management
Bloom’s: Knowledge
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
The Nature of Strategic Management
Bloom’s: Comprehension
Digital Story: Connect
29. The set of processes for determining the strategies that will be used by an organization is known as:
a.
strategy implementation.
b.
environmental scanning.
c.
strategy formulation.
d.
divesting.
e.
deskilling.
c
Easy
p. 72
MGMT.GRIF.16. 3-2 – LO: 3-2
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
The Nature of Strategic Management
Bloom’s: Knowledge
Digital Story: Engage
30. _____ refers to the methods by which strategies are operationalized or executed within the organization; it focuses on
the processes through which strategies are achieved.
a.
Strategy implementation
b.
Strategy mapping
c.
Strategy formulation
d.
Strategy visualization
e.
Strategy conceptualization
a
Strategy implementation is the methods by which strategies are operationalized or executed.
Easy
p.72
MGMT.GRIF.16. 3-2 – LO: 3-2
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Strategy
The Nature of Strategic Management
Bloom’s: Knowledge
Digital Story: Engage
31. The starting point in formulating strategies is usually:
a.
SWOT analysis.
b.
resource deployment.
c.
divesting.
d.
deskilling.
e.
contingency analysis.
Digital Story: Engage
32. In the context of SWOT analysis, which of the following would be considered as an organization‘s strength?
a.
Exiting competitors
b.
High overhead costs
c.
Favorable government policies
d.
Motivated employees
e.
High employee turnover rate
p. 72
MGMT.GRIF.16. 3-3 – LO: 3-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Strategy
Using SWOT Analysis to Formulate Strategy
Bloom’s: Application
Digital Story: Perform
33. Which of the following will be considered as an organizational strength in the context of SWOT analysis?
a.
Organizational opportunities
b.
New competitors
c.
Surplus capital
d.
High overhead costs
e.
New government policies
and threats.
p. 72
MGMT.GRIF.16. 3-3 – LO: 3-3
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
Using SWOT Analysis to Formulate Strategy
Bloom’s: Knowledge
Digital Story: Engage
34. _____ include things like a deep pool of managerial talent, surplus capital, a unique reputation and/or brand name.
a.
Market opportunities
b.
Organizational opportunities
c.
Market strengths
d.
Environmental strengths
e.
Organizational strengths
a unique reputation and/or brand name, and well-established distribution channels.
MGMT.GRIF.16. 3-3 – LO: 3-3
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
Using SWOT Analysis to Formulate Strategy
Bloom’s: Knowledge
Digital Story: Engage
35. Which of the following is an organizational strength?
a.
High employee turnover
b.
High production costs
c.
Well-established distribution channels
d.
High purchasing power of customers
e.
New competitors
MGMT.GRIF.16. 3-3 – LO: 3-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
Using SWOT Analysis to Formulate Strategy
Bloom’s: Knowledge
Digital Story: Engage
MGMT.GRIF.16. 3-3 – LO: 3-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Strategy
Using SWOT Analysis to Formulate Strategy
Bloom’s: Comprehension
Digital Story: Connect
36. A(n) _____ is an internal skill or capability that does not enable a company to choose and implement strategies that
support its mission.
a.
organizational weakness
b.
organizational threat
c.
market threat
d.
process gain
e.
economic downswing
37. A(n) _____ is an area in an organization’s environment that, if exploited, may generate higher performance.
a.
organizational opportunity
b.
economic downswing
c.
organizational strength
d.
process gain
e.
process loss
a
Organizational opportunities are areas in an organization that generate higher performance.
Easy
p.74
MGMT.GRIF.16. 3-3 – LO: 3-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Strategy
Using SWOT Analysis to Formulate Strategy
Bloom’s: Knowledge
Digital Story: Engage
38. Hydraliscious is a juice brand that sells a wide range of fruit juices that only uses organic ingredients, which is its
uniqueness when compared with other brands. Even though Hydraliscious juices are highly priced, a lot of customers buy
them because of the quality of the juices. Hydraliscious is most likely to be using a(n)_____ strategy.
a.
differentiation
b.
cost-leadership
c.
divesting
d.
bundle pricing
a
Easy
p.74
MGMT.GRIF.16. 3-3 – LO: 3-3
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Strategy
Using SWOT Analysis to Formulate Strategy
Bloom’s: Knowledge
Digital Story: Engage
e.
anti-competitive
39. An organization that pursues a(n) _____ strategy seeks to stand out among competitors through the quality (broadly
defined) of its products or services.
a.
differentiation
b.
divesting
c.
anti-competitive
d.
focus
e.
cost-leadership
a
Easy
p.74
40. Which of the following statements is true about the differentiation strategy?
a.
It enables a firm to sell products at lower prices and still make profits.
b.
It enables a firm to charge more for its products.
c.
It is aimed at reducing production costs by using inexpensive raw materials.
d.
It involves making simple, low-priced products for the mass market.
e.
It cannot be used by companies that only offer services.
a
Challenging
41. Which of the following is most closely associated with an overall cost leadership strategy?
a.
Manufacturing highly-customized products
b.
Manufacturing products in bulk
c.
Providing highly efficient customer service that is better than any other competitor
d.
Selling products at high prices
e.
Using expensive raw materials
costs low, the organization is able to sell its products at low prices and still make a profit.
MGMT.GRIF.16. 3-4 – LO: 3-4
United States – AK – DISC: Strategy
Formulating Business-level Strategies
Bloom’s: Comprehension
Digital Story: Connect
42. Alpha Inc. is a large shoe manufacturer that caters to a large customer base. In addition to the high volume of shoes it
manufactures, the company sells simple-designed sneakers for low prices. Many customers buy Alpha shoes because they
are durable and inexpensive. Which of the following strategies is illustrated in the scenario?
a.
Overall cost leadership strategy
b.
Market diversification strategy
c.
Differentiation strategy
d.
Divesting strategy
e.
Market development strategy
costs low, the organization is able to sell its products at low prices and still make a profit.
MGMT.GRIF.16. 3-4 – LO: 3-4
United States – BUSPROG: Reflective Thinking
MGMT.GRIF.16. 3-4 – LO: 3-4
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Strategy
Formulating Business-level Strategies
Bloom’s: Comprehension
Digital Story: Connect
43. Which of the following will help a company achieve an overall cost leadership?
a.
Manufacturing customized products in small quantities
b.
Increasing after-purchase services
c.
Using simple inexpensive product packaging
d.
Selling products at very high prices
e.
Increasing overhead costs
c
Challenging
p.75
MGMT.GRIF.16. 3-4 – LO: 3-4
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Strategy
Formulating Business-level Strategies
Bloom’s: Application
Digital Story: Perform
44. A firm pursuing a(n) _____ strategy concentrates on a specific regional market, product line, or group of buyers.
a.
overall cost leadership
b.
divesting
c.
restraint of trade
d.
anti-competitive
e.
focus
e
Easy
p.75
MGMT.GRIF.16. 3-4 – LO: 3-4
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
Formulating Business-level Strategies
Bloom’s: Knowledge
Digital Story: Engage
45. Supertech Inc. is a large firm that manufactures gadgets and mobile phones. The company sells a line of inexpensive
United States – AK – DISC: Strategy
Formulating Business-level Strategies
Bloom’s: Application
Digital Story: Perform
mobile phones exclusively targeted at youth and teenagers in Selenasia. Which of the following strategies is illustrated in
the scenario?
a.
Differentiation strategy
b.
Focus strategy
c.
Restraint of trade strategy
d.
Anti-competitive strategy
e.
Divesting strategy
46. During the introduction phase of the product life cycle _____.
a.
companies must sacrifice product quality
b.
most companies tend to downsize
c.
demand may be very high
d.
competition is at its peak
e.
sales volume is the highest
MGMT.GRIF.16. 3-4 – LO: 3-4
United States – BUSPROG – Analytic – Business knowledge and analytic skills
United States – AK – DISC: Strategy
Formulating Business-level Strategies
Bloom’s: Comprehension
Digital Story: Connect
47. During the growth stage of the product life cycle,:
a.
most companies downsize.
b.
the demand is the lowest.
c.
competitors start exiting the industry.
d.
more firms begin producing the product.
MGMT.GRIF.16. 3-4 – LO: 3-4
United States – BUSPROG: Analytic
United States – AK – DISC: Strategy
Formulating Business-level Strategies
Bloom’s: Application
Digital Story: Perform