Most firms warn managers and employees that reporting an ethical violation by others,
also known as whistle-blowing, could cause them to be discharged.
Increased costs are a disadvantage of a good information system.
Although a firm’s power and prestige in domestic markets may be significantly
enhanced when the firm competes globally, this rarely translates into improved
negotiating power among creditors, suppliers, or distributors.
According to Rumelt, consistency and feasibility are largely based on a firm’s internal
assessment.
Managers must be very formal in strategic planning because formality induces
flexibility and creativity.
What principle is based on the belief that the true measure of a really good strategist is
the ability to solve problems?
A) Managing by crisis
B) Managing by objectives
C) Managing by extrapolation
D) Managing by exception
E) Managing by hope
Which of the following is true about two different market segments?
A) They can usually be served with the same marketing strategy.
B) They usually require different marketing strategies.
C) They are always in different geographic locations.
D) They are usually interchangeable.
E) All of the above
A revised ________ should indicate how effective a firm’s strategies have been in
response to key opportunities and threats.
A) IFE matrix
B) mission
C) EFE matrix
D) vision
E) CPM matrix
The primary benefit sought from restructuring is
A) employee involvement.
B) cost reduction.
C) increased morale.
D) increased number of hierarchical levels in the organization.
E) increased innovation.
Which organizational structure has the disadvantage of ambiguous roles for senior
executives?
A) Functional
B) Divisional
C) Strategic business unit
D) Matrix
E) Process
In which of the following industries is the U.S. NOT yet greatly challenged by foreign
competitors?
A) auto industry
B) electronics
C) manufacturing
D) retailing
E) None of the above
What step in the strategic development process involves mobilizing employees and
managers to put strategies into action?
A) Strategy formulation
B) Strategy evaluation
C) Strategy implementation
D) Strategic advantage
E) Competitive advantage
A firm’s strengths that cannot be easily matched or imitated by competitors are called
A) internal audits.
B) distinctive competencies.
C) external audits.
D) interrelated properties.
E) internal properties.
According to Rumelt, the final broad test of strategy is its
A) advantage.
B) feasibility.
C) consonance.
D) consistency.
E) distinctiveness.
If a firm has a bad sustainability record this will
A) help a firm in the market.
B) improve a firm’s standing in the community.
C) cause investors to closely scrutinize the firm.
D) deflect the scrutiny of a firm by environmentalists.
E) release the firm from governmental reporting obligations.
Which of the following is NOT a reason for the increasing difficulty of evaluating
strategies?
A) Product life cycles are longer.
B) Domestic and world economies are less stable.
C) Product development cycles are shorter.
D) Technological advancement is more rapid.
E) Change is occurring more frequently.
All of the following are political, governmental, and legal variables that can represent
key opportunities or threats to organizations EXCEPT
A) special tariffs
B) environmental protection laws
C) world oil, currency, and labor markets
D) legislation on equal employment
E) population changes by race, age, sex, and level of affluence
Which of the following is true regarding the design of a firm’s strategy-evaluation
system?
A) There is a one-size-fits-all system that works for all companies.
B) It does not need to take into account the organization’s size.
C) The management style of a firm has no bearing on the design.
D) It should be determined based on the unique characteristics of a company.
E) There is one ideal system.
What change strategy involves giving orders and enforcing those orders?
A) Self-interest
B) Educative
C) Force
D) Rational
E) Defusion