According to Drucker, the most important time for a company to develop mission and
vision statements is when the company is experiencing financial difficulty.
Contingency plans should be as simple as possible.
A form of customer analysis is administering customer surveys.
In Japan, performance rather than seniority has traditionally been the key factor in
determining pay.
Annual objectives are key components in the strategic-management process because
they dictate how resources will be allocated.
A low-cost focus strategy offers products or services to a small range of customers at
the lowest price available on the market.
The act of strengthening employees’ sense of effectiveness by encouraging and
rewarding them for participating in decision-making and exercising initiative and
imagination is referred to as
A) authoritarianism.
B) proaction.
C) empowerment.
D) transformation.
E) delegation.
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
Which company estimates wellness programs have cumulatively saved the company
$250 million on health-care costs in the past decade?
A) Ford Motor Company
B) Johnson & Johnson
C) Coca-Cola
D) TJX
E) Boeing
Controls need to be ________ rather than ________.
A) action-oriented; information-oriented
B) cultural; political
C) qualitative; quantitative
D) measurable; timely
E) universal; diverse
What level of management is directly affected by strategy implementation?
A) Plant managers
B) Sales managers
C) Project managers
D) Division managers
E) All of the above
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.
Long-term objectives are needed at which level(s) in an organization?
A) Corporate
B) Divisional
C) Functional
D) All of the above
E) None of the above
Backward integration is effective in all of these cases EXCEPT
A) when an organization competes in an industry that is growing rapidly.
B) when an organization has both capital and human resources to manage the new
business of supplying its own raw materials.
C) when an organization needs to acquire a needed resource quickly.
D) when the advantages of stable prices are not important.
E) when present suppliers have high profit margins.
Specific results an organization seeks to achieve in pursuing its basic mission are
A) strategies.
B) rules.
C) objectives.
D) policies.
E) tenets.
Also important in evaluating strategies are ________ criteria, like high absenteeism and
turnover rates, or low employee satisfaction.
A) numerical
B) qualitative
C) quantitative
D) accounting
E) financial
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
What pay strategy requires employees or departments to establish performance targets,
which, if exceeded, result in bonuses for all members?
A) Profit sharing
B) Bonus system
C) Salary
D) Gain sharing
E) Hourly wage system
For companies located in Quadrant III of the Grand Strategy Matrix, the first strategy
recommended is
A) extensive cost and asset reduction.
B) asset expansion.
C) employee expansion.
D) immediate liquidation of assets.
E) divestiture.
What are the pitfalls in strategic planning that management in an organization should
watch out for or avoid? Identify any five pitfalls.
Describe some tactics used by politicians that can also aid strategists.
List five nonfinancial benefits of a firm using strategic management, according to
Greenley.
Discuss some forces that influence the formality of strategic-management systems.
Explain how the Internet is changing businesses around the world.
Identify the five basic functions of management, and describe each function.
What are some external opportunities and threats that face many firms?
Define what strategists are. Describe what they do in an organization.
What are the characteristics of a firm that is successfully pursuing a cost leadership
strategy?
Discuss the value of integrating intuition and analysis.