If a corporations has a(n) ______ orientation, then the culture of the country in which a
strategy is to be implemented is allowed to dominate the decision-making process.
A. Polycentric
B. Ethnocentric
C. Regiocentric
D. Geocentric
Which of the following types of bankruptcies provides the firm with a conditional
second chance?
A. Liquidation bankruptcy
B. Total bankruptcy
C. Organizational bankruptcy
D. Reorganization bankruptcy
The function of objectives is:
A. To provide a specific statement of the desires of the firm
B. To deal with profitability, growth and survival without specific targets or time frames
C. To provide specific benchmarks for evaluating the company’s progress in achieving
its aims
D. To enhance stock market optimism
An industry that has growing sales across all the companies in the industry based on
growing demand for the relatively new products, technologies and/or services made
available by the firms participating in this industry is called a(n) _______ industry.
A. Mature
B. Emerging
C. Focus
D. Low-cost
Philanthropy without active engagement
A. Is the best corporate move to satisfy the governmental regulations
B. Helps organizations win the competitive war on consumerism
C. Has been criticized as narrow and self-serving
D. Is like mission without vision
Leaders today _________ rely on their personal ability to influence others.
A. Decreasingly
B. Try not to
C. Increasingly
D. Should never
Competitors as a stakeholder would have which of the following claims on a firm?
A. Share in fringe benefits
B. Election of board of directors
C. Continuing source of business
D. Business statesmanship on the part of peers
The planning mode refers to the
A. Strategic formality associated with the large firms that operate under a
comprehensive, formal planning system
B. Strategic formality associated with medium-sized firms that emphasize the
incremental modification of existing competitive approaches
C. Strategic formality associated with global firms that emphasize cultural value
systems
D. Informal, intuitive and limited approach to strategic management with
owner-manager of smaller firms
_________, called kaizen in Japanese, is the process of relentlessly trying to find ways
to improve and enhance a company’s products and processes from design through
assembly, sales and service.
A. CCC21
B. Incremental innovation
C. Continuous improvement
D. Six Sigma
Given that managers implicitly accept a general, unwritten, yet pervasive code of
behavior that govern business actions, the _____ vary little from one firm to another.
A. Philosophies
B. Visions
C. Missions
D. Self-concepts
When the diversity, size and number of units continue to increase, it may become
necessary to ________ in order to improve implementation, promote synergy and gain
greater control over the diverse business interests.
A. Eliminate at least one level of management
B. Revert to a functional structure
C. Add another layer of management
D. Further delegate
Whereas corporate and business-level managers center their attention on _____,
managers at functional-level center their attention on ____.
A. Operational issues; strategic issues
B. Doing things right; doing the right things
C. Entrepreneurial mode; adaptive mode
D. Doing the right things; doing things right
The _______ underlying premise is that firms differ in fundamental ways because each
firm possesses a unique “bundle” of resources.
A. Resource-based view’s
B. Value chain view’s
C. Corporate view’s
D. Functional view’s
Which of these often reads more like public relations handouts than the commitment to
values they are meant to be?
A. Firm’s economic goals
B. Company’s self-concept
C. Statement of company philosophy
D. Firm’s core competencies and competitive advantage statement
To encourage intrapreneurship, the company should eliminate _________ after ideas
are generated.
A. Corporate ‘slack”
B. “Home runs”
C. “Hand-offs”
D. “Patient money”
Which cell in the SWOT analysis diagram is the most favorable situation?
A. Cell 1
B. Cell 2
C. Cell 3
D. Cell 4
The duration of an advantage in patching is:
A. Unpredictable
B. Sustained
C. Short-term
D. Dependent on resources
When there is a low potential compatibility of changes with the existing culture and
many changes in key organizational factors that are necessary to implement the new
strategy:
A. Managers should link changes to the basic mission and fundamental organizational
norms
B. Managers should reformulate strategy or prepare carefully for long-term, difficult
cultural change
C. Managers should focus on reinforcing the culture and achieving synergies
D. Managers should manage around the culture
Which of the following is NOT a limitation of the portfolio approaches?
A. Identifying individual businesses or distinct markets was not often as precise as the
underlying assumptions required
B. The underlying assumption about the relationship between
C. The approach did not emphasize that market share and profitability are the same
across different industries and market segments
D. The portfolio approach limited strategic options, which were seen mostly as basic
strategic missions rather than descriptions of the flow of resources in a company
__________ about similar circumstances varies from country to country. In North
America, individualism is central, but in Japan, the needs of the group dominate.
A. Values and attitudes
B. Religions
C. Educations
D. Social norms
Which of these managers tries to identify and secure the most profitable and promising
market segment?
A. Functional managers
B. Corporate managers
C. Business managers
D. Operative
An agency problem caused by the limited ability of stockholders to precisely determine
the competencies and priorities of executives at the time they are hired refers to
A. Self-concept
B. Adverse selection
C. Moral hazard problem
D. Concern for quality
_______________ is concerned with tracking a strategy as it is being implemented,
detecting problems or changes in its underlying premises and making necessary
adjustments.
A. Strategy evaluation
B. Strategic implementation
C. Strategic control
D. Strategic decision-making
A supplier group is powerful if:
A. It is not concentrated
B. It is not obligated to contend with other products for sale to the industry
C. Raw materials are the major input cost
D. Its product is not unique
The duty of managers, as agents of the company owners, to maximize stockholder
wealth is referred to as ________ responsibilities.
A. Legal
B. Discretionary
C. Economic
D. Ethical
________ can help avoid conflicting assumptions about the relative importance of
annual objectives, which could otherwise inhibit progress toward strategic
effectiveness.
A. Establishing priorities
B. Establishing action plans
C. Distinguishing the measurable objectives
D. Establishing measurable outcomes
_______ is a method of comparing the way a company performs a specific activity with
a competitor, potential competitor or company doing the same thing.
A. Benchmarking
B. Imitating
C. Value chain analysis
D. Vertical integration
Simple structures encourage employees to:
A. Limit the scope of their work
B. Specialize in one discipline
C. Take significant risks
D. Multitask
The initial step in value chain analysis is to:
A. Allocate costs to different activities within the value chain
B. Identify the firm’s strengths and weaknesses
C. Divide a company’s operations into specific activities or processes
D. Identify the firm’s key resources and capabilities
Mission statement expresses an answer to which of these questions?
A. How do we compete in this industry?
B. What business are we in?
C. Who are our competitors?
D. How do we meet the regulatory requirements?
Which strategic level is typically responsible for developing annual objectives and
short-term strategies?
A. Functional level
B. Corporate level
C. Business level
D. Board of Directors level