Providing institutional leadership through shaping and embedding corporate purpose
and challenging embedded assumptions at the top management level is reflective of the:
A. Innovation process
B. Integration process
C. Renewal process
D. Entrepreneurial process
If a business is sold for its tangible asset value, the strategy is one of:
A. Divestiture
B. Conglomeration
C. Liquidation
D. Diversification
The grand strategy that involves the sale of a business or major business component is
called:
A. Divestiture
B. Integration
C. Diversification
D. Liquidation
Which of the following is NOT a skill or a resource that fosters differentiation?
A. Process engineering skills
B. Strong cooperation for channels
C. Product engineering
D. Creative talent and flair
A benefit of functional tactics is that the ____ of developing them, when done right, can
be a forum for raising and resolving conflicts between strategic intent and operational
realities due to operational issues not immediately known to higher management. A.
Process
B. Strategy
C. Time
D. Clarity
The cost of agency problems and the cost of actions taken to minimize them are called
A. Moral hazard problems
B. Adverse selection
C. Company creed
D. Agency costs
______ is the mainstay goal of a business organization.
A. Profitability
B. Products
C. Service
D. Growth
A key risk associated with a differentiation strategy is:
A. Many cost saving activities are easily duplicated
B. The cost difference between low cost competitors & the differentiated business is too
high
C. Obsessive cost cutting can shrink other competitive advantages
D. Cost differences often decline over time
Which is perhaps the most important entry barrier in the soft drink, over-the-counter
drugs, cosmetics, investment banking and public account industries?
A. Capital requirements
B. Market differentiation
C. Economies of scale
D. Product differentiation
Once a business grows from a simple structure, it usually leads to the need for a:
A. Product-team structure
B. Divisional structure
C. Functional organizational structure
D. Matrix organizational structure
Which of these is true about Sarbanes-Oxley Act?
A. The CEO and CFO must verify every report containing the company’s financial
statements
B. The directors and executive officers are required to trade the company’s 401(k) plan,
profit sharing plan and retirement plan during the black out period
C. Companies are required to extend personal loans to its executives and directors
D. The Act requires that the audit committee must be composed entirely of inside
officers
_____ is redesigning an organizational structure with the intent of emphasizing and
enabling activities most critical to the firm’s strategy to function at maximum
effectiveness.
A. Restructuring
B. Empowerment
C. Business process reengineering
D. Implementing the learning organization
In intense rivalry, rivals are:
A. Similar in strategies
B. Diverse in origins
C. Similar in personality
D. Few
Low-cost advantages should ______ the attractiveness of substitute products.
A. increase
B. lessen
C. strengthen
D. have no effect on
Which of these represent the most popular solution to moral dilemma and adverse
selection problems?
A. To more closely align the owners and agents interests through the use of executive
bonus plans
B. To allow the managers to act more as hired-hands only
C. To remove vision components from mission
D. To ensure board of directors report and work for the CEO
Difficulties in quantifying objectives often can be overcome by initially focusing on
measurable activity and then identifying measurable
A. resources
B. capabilities
C. outcomes
D. policies
Increasingly, globally engaged, multi-business companies are changing the role of
corporate headquarters from one of ________ to one of ________.
A. Enabler of innovation and synergy; resource allocation
B. Performance monitoring; coordinator, supporter and enabler
C. Resource allocation; performance monitoring
D. Coordinator of linkages across multiple businesses; enabler of innovation and
synergy
Whereas the ______ expresses an answer to the question “What business are we in?” a
company ____ is sometimes developed to express the aspirations of the executive
leadership.
A. Mission statement; vision statement
B. Economic goals; self-concept
C. Vision statement; mission statement
D. Self-concept; economic goals
_________ are serendipitous moments when innovators stumbled on something they
were not looking for but immediately recognized its significance.
A. Solution spottings
B. Trend followings
C. Market researches
D. Random events
Careful examination of critical global environmental features with particular attention
to the status of the host nation is called:
A. Internal assessment
B. External assessment
C. Ethnocentric orientation
D. Cultural assessment
_________ has many sources of advantage and fined those advantages potentially
sizable.
A. Specialization businesses
B. Stalemate businesses
C. Fragmented businesses
D. Volume businesses
When executives unrealistically assess acquisition targets’ outlooks in order to increase
the probability of increasing organizational size through their acquisition, this is an
example of
A. Moral hazard problem
B. Adverse selection
C. Self-concept
D. Concern for quality
Which of these is NOT a responsibility of the board of directors?
A. To establish and update the company mission
B. To mandate company compliance with legal and ethical dictates
C. To determine the amount and timing of the dividends paid to stockholders
D. To work under the guidance of the CEO
The strategic decision makers in the firm are responsible for:
A. The firm’s mission
B. Rewards
C. Plant efficiency
D. Daily operations
When owners have limited access to company information making executives free to
pursue their own interests, it could lead to
A. Moral hazard problems
B. Adverse selection
C. Self-concept
D. Concern for quality
Collectively, competitive forces determine the ultimate:
A. Growth of a firm
B. Survival of a firm
C. Profitability of a firm
D. Viability of a firm
Which one of the following is a tactic typically used by firms to jockey for position?
A. Economies of scale
B. Advertising price-cutting
C. Access to distribution
D. Product withdrawal
Strategic management compromises nine critical tasks. Which of the following is NOT
one of the tasks?
A. Development of medium-term objectives compatible with grand strategies
B. Assessment of the company’s external environment
C. Selection of a particular set of long-term objectives and grand strategies
D. Evaluate the success of the strategic process
Which one of the following is NOT a key risk associated with a cost leadership oriented
business strategy?
A. Many cost-saving activates are easily duplicated
B. Cost differences seldom decline over time
C. Exclusive cost leadership can become a trap
D. Obsessive cost cutting can shrink other competitive advantages involving key
product attributes
The DMAIC (define, measure, analyze, improve, control) process is relevant to
A. CCC21
B. Balanced scorecard
C. Strategic matrix analysis
D. Six Sigma
Foto Show, an online full-service photo processing site, institutionalizes its storytelling
among old and new employees alike–they even give awards to reinforce the given
theme. This demonstrates:
A. Emphasizing dominant values
B. Encouraging dissemination of legends about core values
C. Building time in the organization
D. Managing organizational culture in a global organization
Economies of scale in an industry refers to:
A. Savings that companies within the industry achieve due to increased volume
B. Declining average short run costs per unit
C. Improved contractual agreements with suppliers in the near term
D. Decreased barriers to entry to new firms attempting to enter the industry
Skills and resources that foster differentiation are:
A. Product engineering skills
B. Sustained capital investment and access to capital
C. Minimal investment in product engineering and basic research
D. Products designed for ease of delivery
Which of the following statements is true?
A. The faster a resource depreciates, the more valuable it is
B. The slower a resource depreciates, the more valuable it is
C. The larger a resource or asset, the more slowly it depreciates
D. Intangible assets can have their depletion measures easily
While developing the customer profile, it is important to include:
A. Psychographic information
B. Market share
C. Experience
D. Management image