A _____is a company’s game plan.
A. Strategy
B. Pricing policy
C. Value statement
D. Long-term objective
Which of the following is NOT a strategic disadvantage of the divisional organizational
structure?
A. Makes policy consistency a known standard
B. Increases costs incurred through duplicate functions
C. Creates difficulty maintaining overall corporate image
D. Fosters potentially dysfunctional competition for corporate-level resources
When the survival goal is taken for granted, therefore neglected in strategic decision
making, the firm’s focus shifts to
A. Long run
B. Intermediate run
C. Direction-less activities
D. Short run
_________ has many sources of advantage. However, these are all small.
A. Stalemate businesses
B. Fragmented businesses
C. Specialization businesses
D. Volume businesses
(p. 102-105) Which of the following is NOT a major barrier to entry?
A. Economies of scale
B. Product differentiation
C. Market breadth
D. Cost disadvantages independent of size
Market development encompasses attracting other market segments. This includes:
A. Increasing promotional effort
B. Including trial use
C. Advertising in other media
D. Opening more branches in the same city
A ______ is one in which competition crosses national borders.
A. Stakeholder activism
B. Multidomestic industry
C. Polycentric environment
D. Global industry
Simple rules need to:
A. Provide just enough structure to limit managers’ flexibility to a safe amount
B. Capture opportunities that may not always be consistent with corporate intent
C. Provide enough structure to allow managers to move quickly to capture opportunities
that are consistent with corporate intent
D. Define the sources of competitive advantage within a firm’s industry
Which of the following can limit or even foreclose entry to industries with such
controls as license requirements?
A. Equal opportunity employer
B. Federal trade commission
C. Government policy
D. Securities and exchange commission
Which external body requires that a company have a mission statement?
A. None
B. SEC
C. Justice Department
D. IRS
Joe Germane, CEO of Brady Healthcare, has made sure to visit each of the international
business units biannually since he was brought on in the firm. This demonstrates Joe’s:
A. Building time in the organization
B. Emphasizing key themes
C. Adapting common themes in a unique way
D. Institutionalizing practices that reinforce desired beliefs
Which of the following applies to strategic issues?
A. Consider only the firm’s external environment
B. Are future oriented
C. Concern allocation of insignificant amounts of company resources
D. Do not have long-term impact on the firm’s prosperity
“The customer is our top priority” is a
A. Mission statement
B. Concern for quality
C. Slogan
D. Vision statement
Which of these is the newest trend in mission components?
A. Sensitivity to customer wants
B. Concern for suppliers and distributors
C. Inclusion of both positive and negative aspects of public image
D. Aligning the firm’s self-concept to that of competitor’s
Vision should be
A. varied
B. complex
C. simple
D. long
Eisenhardt and Sull suggest that managers should flexibly seize opportunities:
A. As long as that flexibility is disciplined
B. As long as the opportunities has positive net present value
C. As long as the capital raised in capital markets can finance the opportunities
D. As long as the managers keep a corporate strategic focus on profitability
Resources to support high net cash overflow and initial losses and ability to use
leverage effectively represent finance area’s capability at which stage of industry
evolution?
A. Growth
B. Introduction
C. Decline
D. Maturity
Cost differences often ____ over time.
A. increase
B. decline
C. strengthen
D. have no effect on
Managers at the _____ level typically have principal responsibilities for developing
environmental analysis and forecasting, establishing business objectives and developing
business plans prepared by staff groups.
A. Corporate
B. Functional
C. Operational
D. Business
Functional tactics translate thought (______) into action designed to accomplish
specific short-term objectives.
A. policies
B. mission
C. vision
D. grand strategy
Licensing and contract manufacturing types of strategies are used best in
A. Small-sized companies
B. Companies large enough to have a combination of international strategic activities
C. Firms with broadly diversified products in high margin industries
D. Firms with highest level of commitment to international markets
______ is the development of modified products and services, and the use of somewhat
tailor-made messages, to meet the demands of a local population A. Globalization
B. Horizontal integration
C. Customization
D. Standardization
_____ is an internal analysis technique wherein strategists examine customers’ needs,
company offerings, and competitors’ offerings to more clearly articulate what their
company’s competitive advantage is and how it differs from those of competitors.
A. Resource-based view
B. Three-circles analysis
C. SWOT analysis
D. Value chain analysis
Which of the following items is NOT an example of how action plans enhance
short-term objectives?
A. Specificity
B. Link to long-term strategy
C. Time frame for completion
D. Definition of who is responsible for what
_____ is a statement, not of measurable targets but of attitude, outlook, and orientation.
A. Company mission
B. Company vision
C. Company strategy
D. Company policy
The demands placed on the global firm by the foreign environments in which it
operates, principally by foreign governments is called
A. Globalization
B. Localization
C. Formalization
D. Stakeholder activism
Which of the following is NOT a way that specificity in functional tactics contributes to
successful implementation?
A. Helping ensure that functional managers know what needs to be done and can focus
on accomplishing results
B. Limiting the need for top management’s confidence in and sense of control over the
business strategy
C. Clarifying for top management how functional managers intend to accomplish the
business strategy
D. Facilitating coordination among operating units within the firm by clarifying areas of
interdependence and potential conflict
A strategy is a company’s
A. Game plan
B. Pricing policy
C. Value statement
D. Long-term objective
Diversity in a firm’s product line refers to
A. The length of a firm’s business lines
B. The breadth of the firm’s business lines
C. The number of critical success factors
D. The quality of the product
The _______ comprises economic and social conditions, political priorities and
technological developments, all of which must be anticipated, monitored, assessed and
incorporated into the executive’s decision making.
A. Remote external environment
B. Task environment
C. Operating environment
D. Internal environment
The ________ is an organization structure most notable for its lack of structure wherein
knowledge and getting it to the right place quickly is the key reason for organization.
A. Modular organization
B. Joint venture
C. Learning organization
D. Ambidextrous organization
A supplier group is powerful if:
A. Its product is undifferentiated
B. Its product is unique
C. Its market is unique
D. It must contend with other products
Evaluate the risks of speed as a competitive advantage.
Define emerging industries. Describe the features of business strategies required for
success in this industry.
What are the three levels of competencies required for senior leaders as per researcher
Ronald Riggio?
Differentiate between generic and grand strategies?
Identify and briefly describe the major sources of barriers to entry.
How do moral hazard and adverse selection cause agency problems?
Describe the three tiers of environmental factors that affect the performance of a firm.
What are stock options? How do they motivate executives and key employees to
achieve maximization of shareholder wealth?
What characteristics make a supplier group powerful? Explain.
What is strategic intent? How is articulating vision an important aspect of clarifying
strategic intent?
Differentiate between foreign branching, equity investment and wholly owned
subsidiaries. What risks firms face with foreign subsidiary strategy? Explain.
When a mission statement is redefined or revised, what components should be present?
Explain.
Describe some general motivations behind diversifying a firm.
Describe the four main sources of power available to an organizational leader.
What are the major trends in Code of Ethics? Explain?