Motor vehicle firms in the United States are vulnerable when the value of the dollar
falls.
Optimizing for tomorrow the trends of today is the purpose of strategic management.
Financial ratios are rarely used as criteria to evaluate strategies.
As many managers and employees as possible should be involved in the process of
performing an external audit.
A primary reason why most domestic firms are engaging in global operations is that
growth in demand for goods and services outside the U.S. is considerably higher than
inside.
Companies such as Wal-Mart are now monitoring not only the prices its vendors offer
for products, but also how those products are made in terms of environmental practices.
The social, cultural, demographic, environmental, political, governmental, legal,
technological, and competitive opportunities and threats that face a multinational
corporation are almost limitless.
The relative attention an organization will devote to meeting the claims of various
stakeholders is indicated in a good mission statement.
Activity ratios measure how effectively a firm is using its resources.
In today’s global climate, many companies may find it difficult to survive by relying
solely on domestic markets.
In some foreign countries, paying bribes and kickbacks is acceptable.
Opportunities are a firm’s distinctive competencies that cannot be easily matched or
imitated by competitors.
Shifting focus from specific issues to more general ones may increase strategists’
options for gaining organizational commitment.
The foundation for development of a comprehensive mission statement is provided by a
clear vision.
Too much emphasis on evaluating strategies may be expensive and counterproductive.
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.
Social policy can best be defined as
A) the responsibilities a firm has to employees, consumers, environmentalists,
minorities, communities, shareholders, and other groups.
B) a document providing behavioral guidelines that cover daily activities and decisions
within a firm.
C) an SEC mandate to report any unethical behavior.
D) the legal requirement to reveal how a firm’s operations impact the natural
environment.
E) mandatory technical standards that result in an EMS.
Marketing managers in Japan see making a sale ________ the selling process.
A) as the beginning of
B) as the end of
C) as the midpoint of
D) as unrelated to
E) None of the above
What entails developing schematic representations that reflect how your products or
services compare to competitors’ on dimensions most important to success in the
industry?
A) Positioning
B) Segmentation
C) Penetration
D) Diversification
E) Budgeting
What is the term for a historical narrative describing the unique accomplishments of a
group and its leaders?
A) Rite
B) Saga
C) Story
D) Myth
E) Folktale
Success today
A) guarantees success tomorrow.
B) is no guarantee of success tomorrow.
C) should lull a firm into complacency.
D) is all that really matters.
E) none of the above.
According to Porter, what is usually the most powerful of the five competitive forces?
A) Potential development of substitute products
B) Bargaining power of suppliers
C) Bargaining power of consumers
D) Rivalry among competing firms
E) Potential entry of new competitors
According to recent studies, what percent of companies have used a mission statement
sometime in the past five years?
A) 15%
B) 30%
C) 60%
D) 75%
E) 90%
Marriott selling its timeshare business is an example of which type of strategy?
A) Related diversification
B) Unrelated diversification
C) Retrenchment
D) Divestiture
E) Liquidation
Environmental advocacy groups now have ________ Americans as members.
A) approximately 100,000
B) just under a million
C) close to 5 million
D) over 20 million
E) almost a billion
A limitation of financial ratios is the fact that they are based on accounting data.
________ ties all business functions together and provides the basis for all managerial
decisions.
A) Management
B) Marketing
C) Information
D) Technology
E) Workforce
What are enduring statements of purpose that distinguish one business from other
similar firms?
A) Policies
B) Mission statements
C) Objectives
D) Rules
E) Employee conduct guidelines
Which strategy is effective when new, but related, products could be offered at highly
competitive prices?
A) Forward integration
B) Related diversification
C) Backward integration
D) Conglomerate diversification
E) Unrelated diversification
For what reason did Boeing fire CEO Harry Stonecipher?
A) Poor company performance
B) Enforcing discriminatory hiring practices
C) Having an extramarital affair
D) Stealing from the company
E) Exorbitant use of company planes
Which stage of the strategy-formulation framework contains the Internal-Factor
Evaluation Matrix?
A) Input stage
B) Analysis stage
C) Matching stage
D) Decision stage
E) Output stage
What term refers to the need for strategists to examine sets of trends, as well as
individual trends, in evaluating strategies?
A) Consistency
B) Consonance
C) Synergy
D) Feasibility
E) Advantage
All of the following are things that many cultures around the world value more than the
competitiveness that is so important in the U.S. EXCEPT
A) modesty
B) team spirit
C) individualism
D) collectivity
E) patience
Explain the benefits and limitations of developing a Boston Consulting Group Matrix.
Discuss four common problems that cause joint ventures to fail.
Describe a sustainability report.
According to Roger Schroeder, there are five basic functions or decision areas in
production. Describe these five functions.
Discuss the three particular challenges that strategists face today.
Define a code of business ethics and its role in an organization.