Corporate social policy should be reaffirmed or changed during strategy
implementation.
Unlike strategy formulation, strategy implementation varies considerably among
different types and sizes of organizations.
The only reasons businesses have for determining their worth is preparing to be sold or
to buy other companies.
Planning should be performed mostly by middle management and then presented to top
management for analysis and approval.
An objective, logical, systematic approach for making major decisions in an
organization is a way to describe the strategic-management process.
When completing the matching stage of the strategy-formulation framework, the
SWOT Matrix needs to be completed before the SPACE Matrix.
An example of a marketing decision is whether or not to limit the share of business
done with a single customer.
Financial ratios are not applicable to nonprofit organizations.
The weights and total weighted scores in both a Competitive Profile Matrix and an EFE
Matrix have the same meaning.
In times of depressed stock prices, stock issuances often prove to be the most suitable
alternative for obtaining capital.
Internal R&D and contract R&D are the two basic forms of R&D in organizations.
A strong ________ heritage underlies the study of strategic management.
A) military
B) government
C) political
D) social
E) cultural
Which of the following statements is NOT true?
A) America’s economy is becoming much less American.
B) A world economy and monetary system are emerging.
C) Corporations in every corner of the globe are taking advantage of the opportunity to
obtain customers globally.
D) Markets are shifting slowly and in many cases diverging in tastes, trends, and prices.
E) Innovative transport systems are accelerating the transfer of technology.
What types of skills are especially critical for successful strategy implementation?
A) Interpersonal
B) Marketing
C) Technical
D) Conceptual
E) Visionary
Who should perform an internal audit?
A) A private auditing firm
B) The organization’s accounting department
C) Representative managers and employees from throughout the firm
D) A small team of top-level managers
E) The chief executive officer
________ is a process of doing business worldwide, so strategic decisions are made
based on global profitability of the firm rather than just domestic considerations.
A) Multinational corporation
B) Protectionism
C) Globalization
D) Assimilation
E) World recession
According to Webster’s New World Dictionary, ________ is “the science of planning
and directing large-scale military operations, of maneuvering forces into the most
advantageous position prior to actual engagement with the enemy.”
A) competitive advantage
B) war
C) strategy
D) formulation
E) business
Specific results an organization seeks to achieve in pursuing its basic mission are
A) strategies.
B) rules.
C) objectives.
D) policies.
E) tenets.
________ management deals with inputs, transformations, and outputs that vary across
industries and markets.
A) Marketing
B) Financial
C) Research and development
D) Production/operations
E) Information systems
Which of these is NOT a key financial ratio?
A) Market share
B) Production quality
C) Earnings per share
D) Asset growth
E) Return on equity
Which of the following were NOT mentioned as an example of cultural products?
A) Rites
B) Emotions
C) Rituals
D) Sagas
E) Symbols
Long-term objectives are needed at which level(s) in an organization?
A) Corporate
B) Divisional
C) Functional
D) All of the above
E) None of the above
Which component of a mission statement addresses the firm’s distinctive competence or
major competitive advantage?
A) Technology
B) Philosophy
C) Concern for public image
D) Customers
E) Self-concept
According to journalists’ findings, what is a serious obstacle for many small business
owners?
A) A lack of business ethics
B) An excess of employees and managerial staff
C) A lack of experience in networking
D) A lack of strategic-management knowledge
E) Having too many suppliers
The _______ is a network of the national standards institutes of 147 countries, one
member per country.
A) ISO
B) EMS
C) UN
D) EPA
E) IMF
Under which condition would a cost leadership strategy be especially effective?
A) when there are many ways to differentiate the product or service and many buyers
perceive these differences as having value
B) when buyer needs and uses are diverse
C) when few rival firms are following a similar approach
D) when technological change is fast paced and competition revolves around rapidly
evolving product features
E) when the products of rival sellers are essentially identical and supplies are readily
available from any of several eager sellers
Which strategy seeks to increase market share for present products or services in
present markets through greater marketing efforts?
A) Market penetration
B) Forward integration
C) Market development
D) Backward integration
E) Product development
Corrective action should do all of the following EXCEPT
A) capitalize upon internal strengths
B) avoid external opportunities
C) avoid external threats
D) improve internal weaknesses
E) strengthen an organization’s competitive position