The external environment can be divided into various interrelated subcategories:
A. Remote, political, social
B. Remote, social, operational
C. Remote, industry, operating
D. Technological and social
Trust starts with ____
A. others
B. empathy
C. self
D. social-management
Customers have the power to:
A. Raise prices
B. Demand higher quality
C. Lower service quality
D. Coordinate competitors
The considerations involving the beliefs, values, attitudes and opinions of those in a
firm’s environment represent the ______.
A. Social factors
B. Personal factors
C. Economic factors
D. Political factors
Which of these are NOT outside stakeholders?
A. Customers
B. Stockholders
C. Creditors
D. Union
Growth means:
A. Change
B. Stability
C. Effectiveness
D. Efficiency
In the past ________ years, we have seen a virtual explosion in the extent to which
single-business companies seek to acquire other businesses to grow and diversify.
A. 5
B. 50
C. 30
D. 100
There is a weak correlation between earnings measures and shareholder wealth creation
with the use of a:
A. Golden handcuffs plan
B. Cash based plan
C. Restricted stock plan
D. Stock option grant
A key element of good organizational leadership is to make clear the ___________ a
leader has for the organization and managers in it, as they seek to move toward the
vision. This will help keep the firm on track in the present term.
A. Strategic purpose
B. Strategic goals
C. Alternative structures
D. Performance expectations
Chapter 11 of the Bankruptcy Code deals with:
A. Reorganization
B. Liquidation
C. A second chance
D. A conditional second chance
___________ are measurable outcomes achievable or intended to be achieved in one
year or less.
A. Targets
B. Goals
C. Short-term objectives
D. Long-term objectives
Which of the following combinations provides the best sources of competitive
advantage?
A. Resources/capabilities that are scarce, durable and sustainable
B. Resources/capabilities that are central to meeting a customer need better than other
alternatives and are inimitable
C. Resources/capabilities that are durable, scarce and appropriable to the firm
D. Resources/capabilities that are directly appropriable to the firm, inimitable, durable
and meet customer needs better than other alternatives
When the CEO is very autocratic, the effectiveness of the firm’s strategic planning and
management processes is likely to:
A. Enhance strategic planning but diminish its processes
B. Be greatly enhanced
C. Have no effect
D. Be diminished
Horizontal integration is an example of a
A. Generic strategy
B. Grand strategy
C. Functional level strategy
D. SBU strategy
One of the most contentious social responsibility issues confronting multinational firms
pertains to
A. Animal welfare
B. Children
C. Working conditions
D. Human rights
Using historical experience as a basis for identifying strengths and weaknesses can be
likened to:
A. Market myopia
B. Tunnel vision
C. Management myopia
D. Benchmarking
An industry can be ranked along a continuum that ranges between _____ at one
extreme and ____ at the other.
A. regiocentric, polycentric
B. international, global
C. ethnocentric, regiocentric
D. multidomestic, global
According to Business International Corporation, variables to be included under labor
factors include:
A. Degree of skill
B. Availability of raw materials
C. Degree of anti foreign discrimination
D. Cost of local borrowing
_________ focus on which opportunities can be pursued and which ones are beyond
pursuing.
A. Timing rules
B. Boundary rules
C. Financial rules
D. Project rules
When a business introduces standardized, efficient, low-cost facilities at multiple
locations it can be described as following which of these strategies?
A. “Formula” facilities
B. Specialization
C. Tightly managed decentralization
D. Harvesting the business
A capability or skill that a firm emphasizes and excels in doing while in pursuit of its
overall mission is called a
A. Intangible asset
B. core competence
C. Capability
D. Distinctive Competence
Which of the following is NOT a reason for the emergence of multi-business
companies?
A. Companies can enter businesses with greater growth potential
B. Companies can enter businesses with different cyclical considerations
C. Companies can diversify inherent risks
D. Companies can slow their internal growth
The starting point for industry definition is
A. The firm’s mission statement
B. A focus group session with the firm’s top managers
C. The federal government’s definition of the industry
D. A definition of the industry in global terms
Intense supervision of labor is a commonly required skill for which one of Michael
Porter generic strategies?
A. Differentiation
B. Market development
C. Product development
D. Low cost leadership
Assumptions become shared assumptions through __________ among an organization’s
individual members.
A. Internalization
B. Externalization
C. Reiteration
D. Reflection
Top-down governance structure is evident in which orientation of a global firm?
A. Ethnocentric
B. Regiocentric
C. Geocentric
D. Polycentric
__________ obtaining work previously done by employees inside the companies from
sources outside the company.
A. Specialization
B. Fragmentation
C. Outsourcing
D. Acquisition or merging
__________ provide managers with information that helps them determine whether the
overall strategy is progressing as planned or needs to be adjusted.
A. Strategic threats
B. Strategic thrusts
C. Milestone reviews
D. Frequency reviews
________ is the systematic recognition and analysis of assumptions upon which a
strategic plan is based, to determine if those assumptions remain valid in changing
circumstances and in light of new information.
A. Special alert control
B. Implementation control
C. Premise control
D. Strategic surveillance
Much of the impetus for social investing originated with
A. Educational systems
B. Religious organizations
C. Small businesses
D. Governmental regulations
Short-term objectives are usually accompanied by subsequent:
A. Action ideas
B. Long-term objectives
C. Action plans
D. Policies
The image the company seeks to project is reflected in the firm’s:
A. Profile
B. Tactics
C. Mission
D. Strategic options
A company’s Board of Directors is elected by its
A. managers
B. stockholders
C. customers
D. employees
Which of these refers to business strategies that seek to establish long-term competitive
advantages by emphasizing and perfecting value chain activities that can be achieved at
costs substantially below what competitors are able to match on a sustained basis?
A. Differentiation strategies
B. Grand strategies
C. Low-cost strategies
D. Speed-based strategies
For the past 28 years ABC, Inc. has made a significant investment of time, money and
other resources to increase the literacy rate in adult Americans. This represents which of
these principles of successful collaborative social initiatives?
A. Weight government influence
B. Identify a long-term durable mission
C. Assemble and value the total package of benefits
D. Leverage core capabilities
Describe the sources of personal influence available to a leader.
How does the corporate parent add value according to the parenting strategy approach?.
What is meant by “passion” in the context of organizational leadership?
What seven criteria should be used in preparing long-term objectives? What is the
purpose of each?
What does it mean to “build time” into an organization. How does length of tenure
affect the leader’s relationship with the organization?
Briefly describe the problems that can result from agency and what steps can be taken
to resolve them.
Describe globalization as a trend shaping the structuring of businesses today.
How does speed influence structural trends today? Describe digitization.
Describe the elements of the resource-based view. Give examples of each type.
What do activity ratios measure? What are the key activity ratios?
Identify and describe the defining principles and the implementing principles of the
social justice approach?
Compare and contrast licensing and franchising.
With regards to the levels of strategy, compare and contrast single-business firms versus
multiple-business firms?
Cite the guidelines to the resource-based view and briefly describe their meaning.
Define differentiation. Evaluate a business’s differentiation opportunities using skills,
resources and organizational requirements.
Who are stakeholders and why are they important to a firm?
What are the three economic goals that guide the strategic direction of business
organizations? Explain each of them briefly.