If X-Corp.’s car polish division has committed to a 30 percent gain in revenue over six
years, they must consider the specific target in revenue during the current quarter to
indicate they are making appropriate progress. This smaller objective for the fiscal
quarter is called a:
A. Short-term objective
B. Short-term technique
C. Long-term objective
D. Strategic goal
Which of the following is an element of a firm’s remote external environment?
A. Competition
B. Suppliers
C. Government agencies
D. Economic and social conditions
Twenty-first-century corporations reflect:
A. Interdependency
B. Top-down approach
C. Structured interaction
D. Internal focus
Each firm regardless of ____ must decide how to meet its perceived social
responsibility.
A. Industry
B. National origin
C. Profitability
D. Size
Strategic issues require which level of management decisions?
A. Operative
B. Top
C. Front-line
D. Middle
Which matrix allows one way for multi-business companies to rationalize what
businesses they are in–businesses that share core competencies and associated
competitive advantages.
A. Growth-share matrix
B. Portfolio attractiveness matrix
C. Strategic environments matrix
D. Business strength matrix
The motivations of acquiring firms using diversification strategy include:
A. Steadying the growth rate of the firm
B. Decreasing productivity
C. Increasing stock value of the firm
D. Gaining shareholders
_____________ can be seen in principles, honesty and “living by example.” This can
become a major force by which a leader will shape and move his or her organization.
A. Prioritization
B. Transparency
C. Strategy
D. Long-term objectives
Grand strategies are designed to accomplish which of the following?
A. Short-term objectives
B. Long-term goals
C. Short-term goals
D. Long-term objectives
In which of these orientations is governance top-down?
A. Polycentric
B. Ethnocentric
C. Geocentric
D. Regioentric
A manager’s assessment of whether a certain internal factor–like financial capacity–is a
strength or weakness will be most strongly influenced by:
A. The relative strength of other factors
B. The factor’s flexibility within the organization
C. The manager’s experience in connection with that factor
D. The manger’s perception of that factor in other firms
Growth through the acquisition of one or more similar firms operating at the same stage
of the production ” marketing chain refers to
A. Product development
B. Joint ventures
C. Conglomerate diversification
D. Horizontal acquisition
The strategic ________ of policies can vary.
A. Direction
B. Plan
C. Significance
D. Advantage
Assessment of the strengths and weaknesses of the company’s management and
organizational structure is a part of
A. Internal analysis
B. Mission statement
C. External environment analysis
D. Corporate goals
______ identify who is responsible for each action in the plan.
A. Action ideas
B. Long-term objectives
C. Action plans
D. Policies
Spelling out key features of how a process is executed is the purpose of which type of
simple rules?
A. Boundary rules
B. Priority rules
C. How-to Rules
D. Exit rules
Businesses that create competitive advantages from one or both of cost and
differentiation usually experience ______ profitability within their industry.
A. above-average
B. average C. below average
D. marginal
With this type of grand strategy, the new businesses selected possess a high degree of
compatibility with the current business:
A. Conglomerate diversification
B. Concentric diversification
C. Joint venture
D. Divestiture
Which one of the following is NOT a factor that contributes to the increase in
complexity of the global environment?
A. Globals face multiple political, economic, legal, social and cultural environments
B. Interactions between the national and foreign environments are complex
C. Geographic closeness impacts communication
D. Cultural and national differences make control difficult
Core competencies that differ from those found in competing firms would be
considered
A. Intangible assets
B. Distinctive competencies
C. Capabilities
D. Competencies
The _______ seeks to simplify and amplify the focus of resources on a narrow but
strategically important product, market, customer or innovation.
A. Product-design structure
B. Matrix team structure
C. Divisional structure
D. Product-team structure
Good leaders are inevitably good verbal and ___ communicators
A. visual
B. emotional
C. oral
D. loud
A firm with a strategic goal of streamlining operations should use ________ to reward
the long-term focus on efficiency and cost control.
A. Restricted stock plans
B. Stock options
C. Cash
D. Golden parachutes
When a company offers many product lines, ____ is high.
A. complexity
B. diversity
C. integration
D. planning
_______ responsibilities are the most basic social responsibilities of the firm.
A. Legal
B. Ethical
C. Economic
D. Discretionary
When a firm agrees to a complete distribution of its assets to creditors, most of whom
will receive a small fraction of the amount that they are owed, this form of bankruptcy
is called a:
A. Reorganization bankruptcy
B. Liquidation bankruptcy
C. Partial bankruptcy
D. Organizational bankruptcy
For success in mature industries, business strategies require which of these features?
A. Ability to rapidly improve product qualities and performance features
B. Ability to differentiate the firm’s products from competitors entering the market
C. Emphasis on process innovation that permits low-cost product design, manufacturing
methods and distribution synergy
D. Gradually harvest the business
Perseverance is the capacity to see a _______ through to completion long after most
people would have stopped trying.
A. Commitment
B. Passion
C. Principle
D. Integrity
________ is an idea factor involving actively looking for an answer to a known
problem.
A. Need spotting
B. Market research
C. Random events
D. Trend following
Which of the following factors is NOT commonly seen as fostering brand
identification?
A. Being first in the industry
B. Product differences
C. Customer service
D. Customer credit
The ideal strategic management team includes decision makers from
A. All three company levels (corporate, business and functional)
B. Just the functional level since they are closest to the customers
C. Just the corporate and business levels given that they focus on doing the right thing
D. Just the top management since they understand the big picture
What are golden parachutes? How do they motivate executives and key employees to
achieve maximization of shareholder wealth?
What are core competencies? How are they different from distinctive competencies?
How do distinctive competencies lead to competitive advantage?
How does outsourcing create a modular organization?
Define eco-efficiency. Identify the four key characteristics of eco-efficient corporations.
Describe the three levels of strategy in an organization. Provide an example of each?
What does it mean to leverage core competencies?
What needs arise leading to the use of the product-team structure?
How does a would-be entrepreneur assess whether an opportunity is a good business
idea?
Evaluate a business’s cost leadership opportunities using skills, resources and
organizational requirements.
Explain the five principles of successful collaborative social initiatives?
Describe the balanced scorecard as a framework to translate a strategy into operational
terms. How does it achieve this?
What skills, other than technical competence and business management ability are
important in entrepreneurial teams?
Define fragmented industries. What ways businesses in this industry can pursue
strategies? Explain.