In the face of a deepening global recession, countries worldwide are resorting to
protectionism to safeguard their own industries.
To see and appreciate the world from the perspective of others has become a matter of
survival for business.
Quantitative forecasts become less accurate as historical relationships become less
stable.
Unrelated diversification is an appropriate strategy when an organization’s present
channels of distribution can be used to market the new products to current customers.
A vision statement identifies the scope of a firm’s operations in product and market
terms.
All of the following are basic functions of marketing EXCEPT
A) value chain analysis
B) customer analysis
C) product and service planning
D) pricing
E) distribution
Matching which factors would allow factories to produce desirable levels without extra
shifts, overtime, or subcontracting?
A) markets and competitors
B) competition and positioning
C) customer behavior and positioning
D) supply and demand
E) segments and competitors
Forward integration would be an appropriate strategy for which of the following types
of divisions in the BCG Matrix?
A) Dogs
B) Failures
C) Question Marks
D) Cat
E) Star
There is a dramatic shift in mass retailing to
A) “trading up” and taking customers from more exclusive stores.
B) selling only the most expensive merchandise.
C) opening dramatically larger supercenters.
D) operating stores with less square footage.
E) cutting back on their online presence.
The act of oversight and direction for an organization is referred to as
A) corporate lawmaking.
B) centralized control.
C) organizational direction.
D) establishing norms.
E) governance.
Quantitative criteria commonly used to evaluate strategies are
A) ash budgets.
B) Balanced Scorecards.
C) Capital Asset Pricing Models.
D) financial ratios.
E) present value analyses.
Managers and employees today must be careful not to ignore, conceal, or disregard a
pollution problem or they could
A) be fired.
B) be demoted.
C) be held indirectly responsible for their firm’s pollution.
D) have their firm turn on them in a quest for leniency.
E) All of the above
All of the following business actions are considered to be unethical EXCEPT
A) moving jobs overseas
B) preventing environmental harm
C) overpricing
D) sexual harassment
E) insider trading
Unpublished sources of external strategic information include all of the following
EXCEPT
A) abstracts
B) customer surveys
C) market research
D) speeches at professional and shareholders’ meetings
E) conversations with stakeholders
Which level of strategy is most likely not present in small firms?
A) Company
B) Functional
C) Divisional
D) Operational
E) All of the above are present in small firms.
Strengths of competitors in foreign lands are often ________, and weaknesses are often
________.
A) overestimated; overestimated
B) overestimated; underestimated
C) underestimated; underestimated
D) underestimated; overestimated
E) made too much of; ignored
Mass communication and high technology have ________ in diverse cultures
worldwide.
A) created similar patterns of consumption
B) resulted in highly individualized patterns of consumption
C) rendered patterns of consumption identical
D) had little to no effect on patterns of consumption
E) ignored patterns of consumption
An effective information management system ________ information in such a way that
it answers important operating and strategic questions.
A) collects
B) codes
C) stores
D) synthesizes
E) all of the above
A document that discloses to shareholders information about a firm’s labor practices,
product sourcing, energy efficiency, environmental impact, and business ethics
practices is known as
A) a code of ethics.
B) a sustainability report.
C) an EMS.
D) ISO 14000.
E) green terminology.
When two organizations of about equal size unite to form one enterprise, which of these
occurs?
A) Hostile takeover
B) Merger
C) Acquisition
D) LBO
E) Divestiture
In the process of developing a mission statement, it is important to involve
A) as few managers as possible.
B) as many managers as possible.
C) upper-level management only.
D) lower-level management only.
E) the board of directors only.
Long-term objectives should be all of the following EXCEPT
A) measurable.
B) continually changing.
C) reasonable.
D) challenging.
E) consistent.
To perform an external audit, a company first must
A) get an approval from the Securities and Exchange Commission.
B) perform an internal audit.
C) gather competitive intelligence and information about external trends.
D) hire a consultant to develop a comprehensive strategic plan.
E) all of the above
Discuss the I/O approach in relation to competitive advantage.
According to Michael Porter, what are the five competitive forces that create vital
opportunities and threats for organizations? Which force do you feel is most important
in the computer industry today? Why?
Explain why strategy evaluation can be a complex and sensitive undertaking.
Describe the considerations of EPS/EBIT analysis.
Discuss what needs to be completed, besides the calculation and interpretation of ratios,
to complete an effective financial ratio analysis.