A mission statement should be broad in scope, since concrete specification could be the
base for rallying opposition.
One positive feature of QSPM is that it does not require intuitive judgments and
educated assumptions.
The trend toward an older America is bad news for restaurants, hotels, airlines and
home builders.
Secondary buyouts decreased substantially from 2011 to 2012.
The advantage of the educative change strategy is that implementation is quick and
relatively easy.
Analytical and intuitive thinking should complement each other.
Additional capital is often required for successful strategy implementation.
According to the Grand Strategy Matrix, Quadrant III organizations compete in
rapid-growth industries and have strong competitive positions.
The historical trend of people moving from the Northeast and Midwest to the Sunbelt
and West has dramatically increased.
White knight is a term that refers to a firm that agrees to acquire another firm when the
other firm is facing a hostile takeover by some company.
Today boards of directors are composed mostly of outsiders who are becoming more
involved in an organization’s strategic management.
Planning should be performed mostly by middle management and then presented to top
management for analysis and approval.
Which term is best defined as a central management activity that allows for strategy
execution?
A) Avoidance
B) Furlough
C) Competition
D) Resource allocation
E) Conflict
The European Parliament in late 2012 voted with an overwhelming 566-47 margin to
A) reinstate commercial whaling.
B) eradicate the practice of shark finning.
C) add polar bears to the list of endangered species.
D) outlaw international trade in ivory.
E) None of the above
Which question(s) are answered in an effective mission statement?
A) Is the firm committed to growth and financial soundness?
B) Are employees a valuable asset of the firm?
C) Geographically, where does the firm compete?
D) Who are the firm’s customers?
E) All of the above
Which group generally softens up executives with praise before they criticize?
A) Americans
B) Italians
C) Germans
D) French
E) All of the above
Which strategy should an organization use when its products are currently in the
declining stage of the product’s life cycle?
A) Divestiture
B) Related diversification
C) Backward integration
D) Unrelated diversification
E) Retrenchment
Which matrix is included in the decision stage of the strategy formulation framework?
A) Internal Factor Evaluation Matrix
B) Quantitative Strategic Planning Matrix
C) Boston Consulting Group Matrix
D) Grand Strategy Matrix
E) Strategic Position and Action Evaluation Matrix
Staffing involves all of these activities EXCEPT
A) recruiting.
B) transferring.
C) analyzing customers.
D) managing union relations.
E) training and developing.
Americans place an exceptionally high priority on ________ whereas many foreigners
place more worth on ________.
A) time; relationships
B) relationships; time
C) silence; time
D) silence; relationships
E) formality; informality
What level of bargaining power do consumers have when the products being purchased
are standard or undifferentiated?
A) Marginal
B) Low
C) High
D) Negative
E) Negligible
Unethical activities that plague online commerce include all of the following EXCEPT
A) inappropriate gifts.
B) spreading viruses.
C) identity theft.
D) Internet fraud.
E) hacking into company computers.
________ is NOT a strategy-implementation activity.
A) Taking corrective actions
B) Establishing annual objectives
C) Devising policies
D) Allocating resources
E) Motivating employees
Which approach for managing and resolving conflict involves exchanging members of
conflicting parties so that each can gain an appreciation of the other’s point of view?
A) Avoidance
B) Resistance
C) Compliance
D) Defusion
E) Confrontation
According to research, organizations using strategic management are ________ than
those that do not.
A) more profitable
B) more complex
C) less profitable
D) less successful
E) less complex
Which of these involves comparing a firm against the best firms in the industry on a
wide variety of performance-related criteria?
A) Restructuring
B) Process redesign
C) Reengineering
D) Delayering
E) Benchmarking
Which ratio is calculated by dividing profits before interest and taxes by total interest
charges?
A) Inventory turnover
B) Fixed assets turnover
C) Total assets turnover
D) Debt-to-equity ratio
E) Times-interest-earned ratio
All of the following are examples of offerings at companies to promote a corporate
wellness culture EXCEPT
A) stress management programs.
B) health fairs.
C) abundance of bicycle racks onsite.
D) free health insurance for employees who exercise regularly.
E) cash incentives for completing Ironman triathlons.
Explain the nature and role of ESOPs in strategic management.
Why should companies have policies addressing workplace romance?
Discuss the limitations of financial ratio analysis.
What are ideal points on perceptual maps? Explain their relation to market segments
and demand voids.
List four major reasons annual objectives are essential for strategy implementation.
Explain the benefits and limitations of developing a Boston Consulting Group Matrix.
Identify some characteristics of an effective evaluation system.
Discuss ISO 14000 and ISO 14001.
Describe why a mission statement is so important in the strategic-management process.
Explain the relationship between strategic management and competitive advantage for
firms. How can a firm achieve sustained competitive advantage?