Well-conceived and properly executed mission and vision statements do not need to be
subject to revision.
The I/O approach to competitive advantage advocates that internal factors are more
important than external factors in a firm achieving competitive advantage.
Contingency plans are alternative plans that can be put into effect if certain key events
do not occur as expected.
Differentiation guarantees competitive advantage.
The strategic management process should be completely open because participation and
openness enhance understanding, commitment, and communication within the firm.
________ is a commonly used approach to determine R&D budget allocations.
A) Financing as many project proposals as possible
B) Using the percentage of sales method
C) Budgeting for R&D about what competitors spend
D) Deciding how many successful new products are needed
E) All of the above
In the low earnings period, too much ________ in the capital structure of an
organization can endanger stockholders’ return and jeopardize company survival.
A) debt
B) liquidity
C) equity
D) cash
E) tax liability
Which function of management is concerned with span of control and chain of
command?
A) Planning
B) Organizing
C) Controlling
D) Staffing
E) Motivating
If an initial stock issuance is at or under $1 million, what is the average total cost paid
to lawyers, accountants and underwriters?
A) 5 percent
B) 10 percent
C) 25 percent
D) 50 percent
E) 40 percent
What is the best divisional structure when a few major customers are of paramount
importance and many different services are provided to these customers?
A) By geographic area
B) By customer
C) By product
D) By process
E) By cost
What refers to a strategy of seeking ownership of, or increased control over a firm’s
competitors?
A) Forward integration
B) Conglomerate diversification
C) Backward integration
D) Horizontal integration
E) Concentric diversification
The Internet has transferred power from ________ to ________.
A) businesses, individuals
B) governments, businesses
C) individuals, businesses
D) businesses, governments
E) individuals, governments
Which term refers to selling a division of an organization?
A) Joint venture
B) Divestiture
C) Concentric diversification
D) Liquidation
E) Horizontal integration
The domestic food industry ________ , so Kraft Foods is focusing on foreign
acquisitions.
A) is falling 5% per year
B) is falling 1% per year
C) is stagnant
D) is growing 3% per year
E) is growing 7% per year
According to a recent Wall Street Journal article, ________ percent of all firms sampled
had no restrictions on boss-subordinate love affairs at work.
A) 5
B) 13
C) 24
D) 39
E) 80
Which stage of the strategy-formulation framework includes an Internal-Factor
Evaluation Matrix and a Competitive Profile Matrix?
A) Input
B) Matching
C) Decision
D) Penetration
E) Research
Bad ethics can _______ strategic plans.
A) derail all but the best
B) derail even the best
C) derail only poorly-intentioned
D) derail only ill-conceived
E) never affect
Firms can align ethical and strategic decision making by
A) omitting ethical considerations from long-term planning.
B) excluding ethical decision making from the performance appraisal process.
C) discouraging whistle-blowing.
D) monitoring departmental and corporate performance regarding ethical issues.
E) all of the above
According to Campbell and Yeung, what is/are most likely associated with behavior and
the present?
A) Mission
B) Values
C) Long-term objectives
D) Vision
E) Possibilities
Formal statements of organizational philosophy, charters, creeds, materials used for
recruitment and selection, and socialization help an organization
A) abide by SEC laws.
B) link culture to strategy.
C) set guidelines for firing.
D) increase profits.
E) manage conflicts between stakeholders.
Which of the following is NOT included in measuring organizational performance?
A) Comparing results to competitors’ expectations
B) Examining progress being made toward meeting stated objectives
C) Investigating deviations from plans
D) Evaluating individual performance
E) Comparing expected results to actual results
________ refers to policies that require employees to report any unethical violations
they discover or see in the firm.
A) Whistle-blowing
B) Bribery
C) Adultery
D) Sustainability
E) Stewardship
The Fortune 50 includes all of the following EXCEPT
A) the largest retailers
B) the largest transportation companies
C) the largest utilities
D) the largest banks
E) the largest hospitals
A total weighted score of _______ in an EFE Matrix indicates that the firm’s strategies
are NOT capitalizing on opportunities or avoiding external threats.
A) 0.0
B) 1.0
C) 2.5
D) 3.3
E) 4.0
According to the comprehensive strategic-management model, which step needs to be
completed immediately following the establishment of long-term objectives?
A) Developing vision and mission statements
B) Performing external audits
C) Performing internal audits
D) Generating, evaluating, and selecting strategies
E) Measuring and evaluating performance