Organizational sources of power are derived from:
A. The manager’s tenure at the firm
B. The manager’s role in the organization
C. The manager’s style of working individually
D. The manager’s functional tactics
When entrepreneurs can sell their product or service at gross margins in the ________
range, there is an attractive cushion built in that covers the mistakes they are likely to
make while developing a new enterprise.
A. 10-15 percent
B. 15-30 percent
C. 50+ percent
D. 80-100 percent
Concentric diversification may be undertaken as a grand strategy because the acquiring
firm wishes to:
A. Acquire an investment opportunity
B. Sell off unneeded assets quickly
C. Balance or fill out its product line
D. Trim its product line
________ was popularized by Hammer and Champy and is one of the more popular
methods by which organizations worldwide have been undergoing restructuring efforts
to remain competitive in the twenty-first century.
A. Restructuring
B. The learning organization
C. Empowerment
D. Business process reengineering
__________ is to have a deep understanding of oneself, one’s strengths and challenges.
A. Social empathy
B. Social awareness
C. Social skills
D. Self-awareness
A firm can more accurately forecast both its long-term and short-term growth and profit
potential by developing its:
A. Competitor profile
B. Financial position
C. Technological innovation
D. Vendor profile
Critics of ______ warn that it is a one-time view of a changing, or moving, situation.
A. SWOT analysis
B. Core competency analysis
C. Distinctive competency analysis
D. Strategic analysis
___________ is designed to check systematically and continuously whether the
premises on which the strategy is based are still valid.
A. Strategic surveillance
B. Implementation control
C. Special alert control
D. Premise control
What is meant by organizational structure?
A. Legal structure of the company
B. Formalized arrangement of interaction and responsibility for tasks
C. Size and scope of the company
D.
Large-scale, future-oriented plans, for interacting with the competitive environment to
achieve company objectives refers to its
A. Strategy
B. Goals
C. Competitive analysis
D. Dynamic policies
Threats to life-supporting ecology caused principally by human activities is an
industrial society are commonly referred to as
A. Technology
B. Co-efficiency
C. Pollution
D. Product differentiation
Business success built on cost leadership requires the business to be able to provide its
product or service at a cost _____ what its competitors can achieve. A. at
B. above
C. below
D. equal to
Short-term objectives and action plans give operating personnel a better understanding
of their role in the firm’s ______.
A. Goals
B. Financial performance
C. Strategic management
D. Mission
The rapid, accelerating change of the global marketplace has made the need for
____________ key in managing a company.
A. strategic control
B. Mission clarification
C. Long-term performance
D. Alternative structures
Discussion about and agreement on short-term objectives help raise issues and potential
conflicts within an organization that usually:
A. Need little coordination
B. Require additional personnel
C. Focus on public relations
D. Require organizational coordination
The need for global coordination and innovation ________ to get the right mix of local
initiative, information flow, leadership and corporate culture.
A. Is forcing constant experimentation and adjustment
B. Is entirely management-based
C. Has been diminished
D. Varies with location
Which of these is usually positively correlated with the cost, comprehensiveness,
accuracy and success of planning?
A. Greater formality
B. Functional structure
C. Organizational matrix
D. Functional tactics
An effective organization is better built and is strongest when:
A. Its leaders clearly articulate their vision for the firm
B. Its leaders show by example what principles are important
C. Its leaders “manage from afar”
D. Its leaders micromanage the employees of the firm
Public relations activities and good citizenship are examples of which responsibilities of
a business organization?
A. Legal
B. Ethical
C. Discretionary
D. Economic
Which of these is NOT a mode of formality?
A. Adaptive
B. Planning
C. Functional
D. Entrepreneurial
Growth means change, and _____ change is required in a _____ business environment.
A. proactive, dynamic
B. reactive, dynamic
C. proactive, stable
D. reactive, uncertain
Political activity may have a significant impact on which of the following governmental
functions?
A. Religious orientation
B. Customer function
C. Manufacturer function
D. Social changes
Businesses with high market share in low-growth industries are called:
A. Stars
B. Cash cows
C. Question marks
D. Dogs
Policies establish __________ over independent action.
A. strategic control
B. Indirect control
C. direct control
D. visionary control
The _______ combines the advantages of functional specialization with the advantages
of product-project specialization.
A. Specialization business
B. Product-team structure
C. Divisional organization
D. Matrix structure
SWOT analysis is based on the assumption that an effective strategy derives from a
sound “fit” between a firm’s _________ and its ________.
A. strengths and opportunities; weaknesses and threats
B. strengths and weaknesses; opportunities and threats
C. strengths and threats; weaknesses and opportunities
D. strengths and opportunities; opportunities and threats
_______ involve(s) identifying the factors associate with successful participation in a
given industry.
A. The resource-based view
B. Value chain analysis
C. Industry analysis
D. Porter’s generic strategies
Which of the following is NOT a part of a firm’s immediate external environment?
A. Technological development
B. Competitors
C. Suppliers
D. Government agencies
According to Business International Corporation, the variables to be included under
capital-source factors include:
A. Proximity of site to export market
B. Modern banking-systems
C. Availability of tariff protection
D. Current currency rate
The position-based approach to strategy works best in:
A. Moderately changing, well-structured markets
B. Rapidly changing, ambiguous markets
C. Turbulent markets
D. Slowly changing, well-structured markets
The acquisition of one or more businesses operating at the same stage of the
production-marketing chain is an example of:
A. Market development
B. Product development
C. Innovation
D. Horizontal acquisition
Consider e-Pixels, a company that produces miniature digital video cameras that feature
easy downloads and uplinks to computers. Which of the following represents a potential
strength for the firm?
A. Brand name
B. Digitalization of most types of media
C. Growing global computer companies with similar technology
D. Limited experience with video technology
According to a SWOT analysis diagram, what strategy does Cell 1 support?
A. Aggressive
B. Turnaround
C. Defensive
D. Diversification
A perspective in which business is seen as a chain of activities that transforms inputs
into outputs that customers value is called:
A. Value chain
B. Value chain analysis
C. Resource-base
D. Process division
The set of decisions and actions that result in the formulation and implementation of
plans designed to achieve a company’s objectives is defined as:
A. Strategic policy
B. Business policy
C. Strategic management
D. Tactics