Reengineering does not usually affect the organizational structure or chart, nor does it
imply job loss or employee layoffs.
The most common type of financial budget is the capital budget.
According to Peter Drucker, developing a clear business vision and mission is the first
responsibility of strategists.
Ralph Nader believes that big firms like ExxonMobil, which has more assets than most
countries, have an obligation to help society cure its many ills.
The heart of an information system is a database containing the kinds of records and
data important to managers.
Marketing research is the systematic gathering, recording and analyzing, of data about
problems relating to the marketing of goods and services.
According to Richard Rumelt, consonance and consistency are mostly based on a firm’s
external assessment.
Four types of resources that can be used to achieve desired objectives are financial,
physical, human, and technological.
It is an exaggeration to say that in an industry that is global, the riskiest possible posture
is to remain a domestic competitor.
To perform an external audit, a company first must gather competitive intelligence and
information about social, cultural, demographic, environmental, economic, political,
legal, governmental, and technological trends.
As a balance sheet entry, goodwill represents the favor a business has acquired through
its environmentally conscious and socially responsible actions.
Selling all of a company’s assets, in parts, for their tangible worth is called
A) joint venture.
B) divestiture.
C) concentric diversification.
D) liquidation.
E) unrelated integration.
Which of the following is NOT a guideline for when an organization should use an
unrelated diversification strategy?
A) when revenues derived from an organization’s current products or services would
increase significantly by adding the new unrelated, products
B) when an organization’s present channels of distribution can be used to market the
new products to current customers
C) when the new products have countercyclical sales patterns compared to an
organization’s present products
D) when an organization competes in a highly competitive and/or a no-growth industry
E) when existing markets for an organization’s present products are not yet saturated
Restructuring is also referred to as
A) reengineering.
B) delayering.
C) diversifying.
D) upsizing.
E) integrating.
Aspects of an existing culture that are antagonistic to a proposed strategy should be
A) preserved.
B) emphasized.
C) built upon.
D) changed.
E) celebrated.
What is the first step in designing an EFE Matrix?
A) Identifying key external factors in the industry
B) Summing the weighted score for each competitor
C) Calculating the sales of each competitor
D) Drawing the horizontal and vertical lines for the matrix
E) Determining four competitors
Which of these is a basic activity of strategy evaluation?
A) Reviewing the underlying bases of current strategies
B) Comparing expected results with actual results
C) Taking corrective actions
D) Choices B and C only
E) All of the above
Which chapter of the bankruptcy code applies to municipalities?
A) Chapter 7
B) Chapter 8
C) Chapter 9
D) Chapter 12
E) Chapter 13
Desire for ________ is a part of the social fabric in worker-manager relations in
Mexico.
A) harmony
B) friction
C) conflict
D) independence
E) punctuality
How do line managers become “owners” of the strategy?
A) By attending top manager meetings
B) By executing plans formulated by other people
C) By involvement in the strategic-management process
D) By becoming a shareholder of the firm
E) By buying off top managers
What are the two external dimensions of the SPACE Matrix?
A) Stability position and industry position
B) Stability position and competitive position
C) Industry position and competitive position
D) Competitive position and financial position
E) Financial position and industry position
Which of the following is NOT one of the steps involved in constructing a SWOT
Matrix?
A) List the firm’s key external threats.
B) Match internal strengths with external opportunities, and record the resultant SO
strategies in the appropriate cell.
C) Match internal weaknesses with external threats, and record the resultant WT
strategies.
D) List the firm’s external weaknesses.
E) List the firm’s external opportunities.
In recent years, the speedy flow of information through technology has
A) made it harder for people worldwide to see how others work and live.
B) strengthened national boundaries and made countries more self-contained.
C) created a borderless world with global competitors, customers, and citizens.
D) ensured that the U.S. is unrivaled by other companies in all industries.
E) made the real flow of financial activity align with political boundaries between
countries.
All of the following are ways and means for altering an organization’s culture EXCEPT
A) recruitment.
B) restructuring of an organization’s design.
C) role modeling.
D) retrenchment.
E) mentoring.
Which strategy generally entails large research and development expenditures?
A) Market penetration
B) Retrenchment
C) Forward integration
D) Product development
E) Divestiture
The purpose of a mission statement is to declare all of these EXCEPT
A) a reason for being.
B) an annual financial plan.
C) a statement of purpose.
D) a statement of beliefs.
E) whom it wants to serve.
Which component of a mission statement addresses the basic beliefs, values,
aspirations, and ethical priorities of the firm?
A) Technology
B) Philosophy
C) Concern for public image
D) Customers
E) Self-concept