An important question a mission statement should answer is, “What do we want to
become?”
Having no temporal qualities, the BCG Matrix is a snapshot of an organization at a
given point in time.
Industry analysis is also referred to as external strategic management audit.
A projected financial analysis can be used to forecast the impact of various
implementation decisions.
Multidimensional scaling involves examining three or more criteria simultaneously in a
product-positioning analysis.
Product development is a strategy that seeks increased sales by improving or modifying
present products or services.
In most industries, only minor costs of producing a product or service are incurred
within operations, so production/operations does not have great value as a competitive
weapon in a company’s overall strategy.
Dumping banned or flawed products in foreign markets is considered to be an unethical
business practice.
In the United States, an amicable relationship is often mandatory before conducting
business.
Total advertising expenditures in the U.S. in 2011 is expected to be down 2.5 percent
from the prior year.
What aims to balance long-term with short-term concerns, financial with nonfinancial
concerns, and internal with external concerns?
A) Contingency planning
B) The Balanced Scorecard approach
C) Taking corrective action
D) Benchmarking
E) Consonance
Under the Hawaii Clean Energy Initiative, the state intends to cut its dependence on oil
to ________ percent by 2030.
A) 10
B) 20
C) 30
D) 40
E) 50
Which of these is NOT a rule of thumb when using product positioning as a
strategy-implementation tool?
A) “The best opportunity might be an unserved segment.”
B) “Look for the hole or vacant niche.”
C) “Try to serve more than one segment with the same strategy.”
D) “Don’t position yourself in the middle of the map.”
E) All of these are valid rules of thumb.
Which management function includes breaking tasks into jobs, combining jobs to form
departments, and delegating authority?
A) Motivating
B) Staffing
C) Organizing
D) Controlling
E) Planning
All of the following are ways and means for altering an organization’s culture EXCEPT
A) recruitment
B) restructuring of an organization’s design
C) role modeling
D) retrenchment
E) mentoring
What principle is built on the idea that there is no general plan for which way to go and
what to do?
A) Managing by crisis
B) Managing by extrapolation
C) Managing by objectives
D) Managing by hope
E) Managing by subjectives
Good mission statements identify the ________ of a firm’s products to its customers.
A) utility
B) price
C) profit margin
D) demand
E) popularity
A disagreement between two or more parties on one or more issues is called a(n)
A) integrated solution.
B) conflict.
C) compromise.
D) diffusion.
E) avoidance.
As indicated in the strategic-management model, a clear ________ is needed before
long-term objectives can be established.
A) short-term objective
B) implementation plan
C) audit policy
D) mission statement
E) evaluation strategy
Modern organizational realities demand that employees demonstrate greater
A) flexibility.
B) innovation.
C) creativity.
D) initiative.
E) all of the above
Which of the following is NOT a key attribute that serves as one of the evaluative
criteria for Fortune’s “America’s Most Admired Companies?”
A) People management
B) Innovativeness
C) Financial soundness
D) Amount of physical resources
E) Use of corporate assets
What type of strategy would divestiture be classified as?
A) Aggressive
B) Defensive
C) Competitive
D) Offensive
E) Conservative
Competition in virtually all industries is ________.
A) nonexistent
B) intense
C) never cutthroat
D) easily avoidable
E) insignificant
King and Cleland recommend organizations carefully develop a written mission
statement for six reasons. List and describe five of these reasons.
Explain the concept of matching in the strategy formulation framework. Give at least
three examples of matching.
There are seven basic functions of marketing. List and define these functions.
Name at least six reasons for performing mergers or acquisitions.
Discuss some ways in which management information systems can benefit a company.
Discuss the following statement: “Planning would be impossible without assumptions.”
List and define the major components of an effective mission statement.