A primary benefit of the balanced scorecard is that it complements financial indicators
with operational measures of customer satisfaction, internal processes, and the
innovation and improvement activities of the organization.
Although changes in the general environment may often adversely or favorably impact
a firm, they seldom alter an entire industry.
The balanced scorecard enables managers to evaluate their business from only two
perspectives: customer and financial.
The role of technology in the recruitment of human capital has lowered individual
reliance on the use of social networks.
A small firm with a simple structure often fosters creativity and individualism because
of its informal atmosphere.
To understand the business environment of a particular firm, you need to analyze both
the general environment and the firm industry and competitive environment.
The collective sum of individual behaviors of the employees of an organization
generally results in what is best for the organization; thus, individual rationality assures
organizational rationality.
One of the potential pitfalls of real options analysis is that managers may have the
incentive and know-how to game the system.
Venture capital is a form of public equity financing used to help young firms grow
rapidly.
To generate above average returns, a firm following an overall cost leadership position
should NOT be concerned with attaining parity or proximity on the basis of
differentiation relative to its peers.
When firms diversify into unrelated businesses, the primary potential benefits are
horizontal relationships, i.e., businesses sharing tangible and intangible resources.
When using a BCG matrix, a business that currently holds a large market share in a
rapidly growing market and has minimal or negative cash flow would be known as a
__________.
A. Cash Cow
B. Dog
C. Star
D. Question Mark
Which of the following is NOT a strategic risk of outsourcing?
A. loss of critical skills
B. loss of cross-functional skills
C. loss of control over a supplier
D. loss of non-vital functions
For a resource to provide a firm with the potential for a sustainable competitive
advantage, it must have four attributes. Which of the following is not one of these
attributes?
A. rare
B. valuable
C. easy for competitors to substitute
D. difficult for competitors to imitate
Top managers at ABC Company meet every Friday to review daily operational reports
and year to date data. This is an example of _____________.
A. behavioral control
B. informational control
C. strategy formulation
D. strategy implementation
The four key attributes of strategic management include all of the following EXCEPT:
A. including multiple stakeholder interests in decision making
B. incorporating both short-term and long-term perspectives
C. recognizing the trade-offs between effectiveness and efficiency
D. emphasis on the attainment of short-term objectives
Managing a knowledge intensive workforce is very challenging. The best way for a
firm to manage its workforce is to __________.
A. retain knowledge workers
B. balance efforts in the attraction, selection, and retention of top talent
C. attract the brightest employees
D. ensure that it pays higher salaries than its rivals
__________ are most appropriate when a firm already has the appropriate knowledge
and capabilities that it can leverage rather easily through multiple locations in many
countries.
A. Joint ventures
B. Strategic alliances
C. Licensing agreements
D. Wholly owned subsidiaries
We want to be the top-ranked supplier to our customers. (PPG) This is an example of a:
A. nonfinancial strategic objective
B. financial strategic objective.
C. vision statement
D. mission statement
Strategic objectives are used to operationalize the mission statement. This is an example
of a nonfinancial strategic objective.
In choosing sides concerning CEO duality, two schools of thought exist. Which of the
following would not be a consideration for the Unity of Command school of thought?
A. One person holding both roles will be able to act more efficiently and effectively.
B. CEO duality provides smoother strategic decision making.
C. CEO duality creates unit across the board of directors and managers of a company.
D. CEO duality slows down decision-making.
Effective leadership is like a three-legged stool. Which of the following is not
represented by one of the stool legs?
A. dedication to maintaining the status quo
B. nurturing a culture dedicated to excellence and ethical behavior
C. determining a direction
D. designing the organization
Amazon Prime is credited for helping to increase the Amazon stock price by nearly 300
percent from 2008 to 2010. This is competitive advantage is known as _________.
A. causal ambiguity
B. product rarity
C. service validity
D. substitutability
Southwest Airlines began its no frills, no meals strategy in the late 1960s as a direct
assault on the major carriers of the day. What type of competitive action does this
represent?
A. A tactical action because it is a refinement of an existing strategy.
B. A strategic action because is includes a refinement of an existing strategy.
C. A strategic action because it was a breakthrough innovative offer.
D. A guerilla offensive because it is fast and will surprise its rivals.
Which of the following is not a disadvantage of virtual structures?
A. difficulty in individual and organizational knowledge sharing
B. potential loss of operational control among partners
C. loss of strategic control over emerging technology
D. difficulty in determining where one company ends and another begins due to close
interdependencies
__________ occurs when a firm decides to utilize other firms to perform value-creating
activities that were previously performed in-house.
A. Offshoring
B. A global strategy
C. Outsourcing
D. A transnational strategy
The most intense rivalry results from _____________.
A. numerous equally balanced competitors, slow industry growth, high fixed or storage
costs
B. few competitors, slow industry growth, lack of differentiation, high fixed or storage
costs
C. numerous equally balanced competitors, manufacturing capacity increases only in
large increments, low exit barriers
D. a high level of differentiation
When firms expand into global markets, they are faced with the choice of reducing
costs and/or adapting to the local market. When high pressures exist to adapt locally,
companies should choose a __________ or __________ in order to compete in the
global marketplace.
A. global strategy; transnational strategy
B. global strategy: multidomestic strategy
C. international strategy; global strategy
D. transnational strategy; multidomestic strategy
Which of the following is FALSE regarding how a differentiation strategy can help a
firm to improve its competitive position relative to the Porter five forces model?
A. By increasing firm margins, it avoids the need for a low cost position.
B. It reduces buyer power because buyers lack comparable alternatives.
C. Supplier power is increased, because suppliers will be able to charge higher prices
for their inputs.
D. Firms will enjoy high customer loyalty.
All of the following are types of information that a firm is required to disclose except
_____________.
A. quarterly and annual filings of financial information
B. stock trading by insiders
C. details of new products under development
D. details of executive compensation packages
Which of the following do corporate business incubators typically not provide?
A. physical space
B. mentoring
C. funding
D. student interns