Conservative strategies in a SPACE Matrix most often include product development,
market development, market penetration, and related diversification.
Alternative strategies don’t come out of the blue; they are derived from the firm’s
vision, mission, and objectives.
While there are a few U.S. industries that are not yet greatly challenged by foreign
competitors, many products and components within these industries too are now
manufactured in foreign countries.
A projected financial analysis can be used to forecast the impact of various
implementation decisions.
More time and effort are required to identify and evaluate external trends and events in
domestic corporations than in multinational ones.
According to Vern McGinnis, an effective mission statement should define what the
organization is and what the organization aspires to be.
With the matrix structure it is common for functional resources to be duplicated.
The mission statement should be short-preferably one sentence.
________ includes the set of shared values, beliefs, attitudes, customs, norms,
personalities, heroes and heroines that describe a firm.
A) Strategy
B) Culture
C) Mission
D) Objectives
E) QSPM
What has been shown to permit quick response to change, prevent panic in crisis
situations, and make managers more adaptable?
A) Auditing
B) Implementing a Balanced Scorecard
C) Contingency planning
D) Taking corrective actions
E) Measuring performance
Japan’s prescription for dealing with problems associated with an aging society includes
A) relying on large-scale immigration.
B) providing incentives for its elderly to retire at ages 55 to 60.
C) reversing the old-fashioned trend of keeping women at home.
D) enacting laws against discrimination based on age.
E) phasing in a shift from age 60 to age 55 as the date when a person may begin
receiving a pension.
All of the following are principles of good organizational governance, as established by
Businessweek, EXCEPT
A) each director attends at least 75 percent of all meetings.
B) the audit, compensation and nominating committees are made up solely of outside
directors.
C) each director owns a large equity stake in the company.
D) at least three directors are current or former company executives.
E) the CEO is not also the Chairperson of the Board.
A study by Rarick and Vitton found that firms with a formalized mission statement have
________ the average return on shareholders’ equity than those firms without a
formalized mission statement.
A) one-quarter
B) half
C) twice
D) three times
E) five times
A code of business ethics is
A) sorely needed in light of a new wave of ethical issues including product safety,
employee health, and sexual harassment.
B) concerned with what responsibilities the firm has to employees, consumers,
environmentalists, minorities, communities, and other groups.
C) a report that reveals how the firm’s operations impact the natural environment.
D) a set of strict regulations requiring firms to conserve energy.
E) a series of voluntary standards in the environmental field.
Retained earnings is obtained by subtracting
A) any dividends to be paid for that year from net income.
B) net income from EBIT.
C) taxes from EBIT.
D) interest expense from EBIT.
E) EBIT from CGS.
The one factor that has most significantly impacted the nature and core of buying and
selling in nearly all industries has been
A) the Internet.
B) political borders.
C) corporate greed.
D) customer and employee focus.
E) the government.
Which is generally considered to be the first step in strategic planning?
A) Developing a vision statement
B) Establishing goals and objectives
C) Making a profit
D) Developing a mission statement
E) Determining opportunities and threats
A proactive environmental policy is likely to lead to
A) higher cleanup costs.
B) conservation of energy.
C) reduced customer loyalty.
D) numerous liability suits.
E) higher medical costs.
Which of the following statements is FALSE?
A) No organization can pursue all the strategies that potentially could benefit the firm.
B) Most organizations today recognize that strategic-management concepts and
techniques can enhance the effectiveness of decisions.
C) A key role of strategists is to facilitate continuous organizational learning and
change.
D) Effective strategic planning should accept the assumptions underlying the current
corporate strategy.
E) Even the most technically perfect strategic plan will serve little purpose if it is not
implemented.
Which U.S. industry is already greatly challenged by foreign competitors?
A) Printing
B) Retailing
C) Retail banking
D) Consumer packaged goods
E) None of the above
A change strategy that attempts to convince people that the change is to their personal
advantage is
A) defusion.
B) force.
C) educative.
D) rational.
E) compromise.
A conservative rule of thumb is to establish a business’ worth as ________ the firm’s
current annual profit.
A) twice
B) three times
C) five times
D) ten times
E) fifteen times
Projected financial analysis is an important strategy-implementation technique because
A) it is an exact measurement of financial costs in the future.
B) it is an exact measurement of future company profits.
C) it allows an organization to examine the expected results of various actions and
approaches.
D) insurance needs can be computed.
E) none of the above
Which of the following was among the most admired companies for social
responsibility in 2012 according to Fortune magazine?
A) GDF Suez
B) China Railway Group
C) China Railway Construction
D) China State Construction Engineering
E) Kirin Holdings
All of the following are things that many cultures around the world value more than the
competitiveness that is so important in the USA EXCEPT
A) modesty.
B) team spirit.
C) individualism.
D) collectivity.
E) patience.
The times-interest-earned ratio would be classified as a(n)
A) activity ratio.
B) leverage ratio.
C) profitability ratio.
D) liquidity ratio.
E) growth ratio.