To make business strategies, grand strategies and long-term objectives a reality, the
people in an organization who ________ need guidance in exactly what they need to
do.
A. “Do the work”
B. Make corporate decisions
C. Manage the business unit
D. Compete
Which of the following is a useful framework against which to examine a firm’s
potential strengths and weaknesses in a given industry?
A. Isolating mechanisms
B. The value chain
C. Organizational capabilities
D. Porter’s five forces
The retailing industry is an example of a _______ industry.
A. global
B. multidomestic
C. transnational
D. multinational
The statement, “Facebook helps you connect and share with the people in your life,” is
an example of a
A. Leader’s principle
B. Mission
C. Leader’s vision
D. Strategic intent
Managers ask if they can retain existing customers and improve targeted coverage of
existing and similar new customers, without innovation. Which of the following points
about managing risk relates to this question?
A. Get the most out of minimum innovation
B. The point of innovation is growth
C. Incremental product innovations can be particularly good at locking in existing
customers
D. Incremental innovations can generate more revenue gain or cost savings with less
risk than radical ones
Companies between exporting and an equity position on foreign soil:
A. Can pool capital in a joint venture
B. Can choose to establish a contractual arrangement such as licensing
C. Extend the company with a foreign branch
D. Extend the company with a foreign subsidiary
In which of these orientations is governance bottom-up?
A. Ethnocentric
B. Polycentric
C. Geocentric
D. Regioentric
Vision is a ____ picture.
A. present
B. past
C. future
D. timely
The link between short-term and long-term objectives should resemble ________
through the firm from basic long-term objectives to specific short-term objectives in
key operation areas.
A. Cascades
B. Building blocks
C. Small barriers
D. Fences
The process of reconciliation of the claims made on the firm is necessary because
A. The number of claims against any firm is so large
B. The government mandates that reconciliation be achieved
C. The claims of various groups often conflict
D. A firm is susceptible to liability suits
Which of these is a determinant of entry, according to Porter?
A. Presence of substitute input
B. Ability to backward integrate
C. Exit barriers
D. Economies of scale
The cells on the bottom of the SWOT diagram are both characterized by:
A. Substantial internal strengths
B. Numerous environmental opportunities
C. Critical internal weaknesses
D. Major environmental threats
The combination of which of these factors describe the company’s business activity?
A. Basic product or service, primary markets and principal technology
B. Self-concept, managerial philosophy and public image
C. Concern for survival through growth, self-concept and primary markets
D. Economic goals, core competencies and primary and secondary customers
Strategic issues require large amounts of the company’s
A. strengths
B. opportunities
C. suppliers
D. resources
Understanding the ______ risk involved is a key element in the decision to do business
in a foreign nation.
A. financial
B. economic
C. social
D. political
Low market share businesses in low market growth industries are called:
A. Stars
B. Cash cows
C. Dogs
D. Question marks
Business International Corporation recommends that 7 broad categories of factors be
considered in a corporation’s assessment of a foreign manufacturing site. Which of the
following described one of these categories?
A. Size of GNP
B. Tax factors
C. Technical factors
D. Social factors
The mission:
A. Sets policy
B. Describes the firm’s product
C. Identifies stakeholders
D. Creates the board of directors
___________ can be particularly effective and is derived from a manager’s access to
and control over the dissemination of information that is important to subordinates yet
not easily available in the organization.
A. Information power
B. Organization power
C. Expert influence
D. Referent power
Company reputation is an example of a
A. Intangible asset
B. Tangible asset
C. Organizational capability
D. Organizational function
_______ should be a loose “environmental scanning” activity.
A. Special alert control
B. Implementation control
C. Strategic surveillance
D. Premise control
Which is considered the least attractive grand strategy?
A. Joint venture
B. Liquidation
C. Concentrated growth
D. Divestiture
Conglomerate diversification is concerned primarily with:
A. Stock appreciation
B. Product development
C. Market synergy
D. Financial returns
Which level of strategy is in the middle of the decision-making hierarchy?
A. Corporate
B. Functional
C. Business
D. Strategic
High fixed costs is a factor in which of the five forces?
A. Threat of entry
B. Substitute products
C. Jockeying for position
D. Powerful suppliers
Which of these refers to short-term, narrow scoped plans that detail “means” or
activities that a company will use to achieve short-term projects?
A. Policies
B. Formality
C. Vision
D. Functional tactics
_________ accrues to good entrepreneurs, but their focus is on opportunities,
customers, markets and competition. They do not often seek ________ for its/their own
sake.
A. Money; status
B. Financial stability; profits
C. Equity financing; equity
D. Power; status
A ___________ usually prevails in the smallest of businesses.
A. Simple organizational structure
B. Divisional organizational structure
C. Functional organization
D. Matrix organization
__________ is available when the manager confers something in return for desired
actions and outcomes.
A. Punitive power
B. Referent influence
C. Reward power
D. Information power
Political factors define the ______ parameters within which firms must operate.
A. Economic
B. Legal and regulatory
C. Global
D. Social and cultural
In a dynamic business environment, ______ is essential.
A. Status quo
B. Compromising ethics in decision making
C. Proactive change
D. Adverse selection
Retrenchment is typically accomplished through:
A. Asset reduction
B. Profit reduction
C. Cost escalation
D. Revenue enhancement
Ability to reuse or liquidate unneeded equipment; advantage in cost facilities; control
system accuracy; and streamlined management control represent decline stage of
industry evolution for which functional area?
A. Marketing
B. Production operations
C. Finance
D. Engineering and R&D
State of marketing and distribution systems is a variable included under which category
(as outlined by Business International Corporation)?
A. Political factors
B. Business factors
C. Transportation factors
D. Distribution factors
What is three circles analysis?
What are the key issues to consider at the start of a firm’s globalization process?
What are golden handcuffs? How do they motivate executives and key employees to
achieve maximization of shareholder wealth?
What is special alert control? Use an example to show its importance.
Who are the strategy makers in an organization?
Describe a simple organizational structure. What are the demands on an owner-manager
in this structure?
Identify and briefly describe the different factors comprising the remote environment.
Describe the four strategy levels involved in the evolution of a global corporation.
Describe the principal profitability ratios and indicate what each measures.
Identify and describe the four industry environments defined by the two dimensions of
BCG’s strategic environments matrix.
What potential risks managers must take into account as they evaluate the
differentiation ” based advantages?
How is strategic control different from postaction control?
What are codes of business ethics? Why are they important?
What challenges does corporate management face in multibusiness and multinational
companies?
What are functional tactics? Briefly describe them and provide one example of their
use.
Discuss the major elements of the Sarbanes-Oxley Act of 2002?
What strategy is being used when the firm acquires other firms that supply it with
inputs or are customers for its outputs? Describe the reasons for choosing this strategy.
To achieve long-term prosperity, strategic planners commonly establish long-term
objectives in which seven areas? Describe each briefly.
Define and briefly describe an example of a disruptive innovation. Is this the same as a
breakthrough innovation?
Identify some critical limitations and shortcomings of the portfolio approach to strategic
analysis.