The first step for using Porter’s Five-Forces Model is to evaluate the relative strength of
each competitive force.
Economic factors do not have much impact on the attractiveness of strategies.
To say U.S. firms are being challenged in the automobile industry is an inaccurate
statement.
Carefully prepared statements of vision and mission are widely recognized as the first
step in strategic management.
Buying off the outstanding shares of your company from the open market to make the
company private is what going public means.
While multinational corporations face almost limitless social, cultural, demographic,
environmental, political, governmental, legal, technological, and competitive
opportunities and threats, the number and complexity of these factors do not
dramatically increase with the number of products produced and the number of
geographic areas served.
Bad ethics can derail all but the best strategic plans.
Alternative strategies not selected for implementation should be discarded, as they have
a tendency to contaminate the contingency plans.
Alternative strategies don’t come out of the blue; they are derived from the firm’s
vision, mission, and objectives.
Divestiture has become a popular strategy for firms to focus on their core business and
become more diversified.
Collecting and evaluating information on competitors is essential for successful
A) internal analysis.
B) strategy evaluation.
C) strategy formulation.
D) strategy implementation.
E) strategy management.
Business Week reports that firms using mission statements have a ________ percent
higher return on certain financial measures than those without such statements.
A) 10
B) 15
C) 30
D) 45
E) 50
The first time U.S. issuers would report under the international financial reporting
standards (IFRS) would be approximately _______.
A) 2011 or 2012
B) 2012 or 2013
C) 2013 or 2014
D) 2014 or 2015
E) 2015 or 2016
After a draft mission statement has been developed, it is important to
A) ask managers to read several articles about mission statements as background
information.
B) vote on the mission statement.
C) ask managers to prepare a mission statement for the organization.
D) ask managers to seek support for the mission statement from their subordinates.
E) request modifications, additions, and deletions to the mission statement.
Which strategy-formulation technique reveals the relative attractiveness of alternative
strategies and thus provides an objective basis for selecting specific strategies?
A) SWOT
B) SPACE
C) QSPM
D) IFE
E) CPM
What are the two external dimensions of the SPACE Matrix?
A) Stability position and industry position
B) Stability position and competitive position
C) Industry position and competitive position
D) Competitive position and financial position
E) Financial position and industry position
In which situation would horizontal integration be an especially effective strategy?
A) when an organization can gain monopolistic characteristics in a particular area or
region without being challenged by the federal government for “tending substantially”
to reduce competition
B) when an organization competes in a slowing industry
C) when decreased economies of scale provide major competitive advantages
D) when an organization has neither the capital nor human talent needed to successfully
manage an expanded organization
E) when competitors are succeeding due to managerial expertise or having particular
resources an organization possesses
The first step in performing projected financial analysis is to
A) prepare the projected balance sheet.
B) take an inventory of goods.
C) estimate increases in debt.
D) prepare the projected income statement.
E) calculate the projected net income.
One aspect of ads in a recession is that they
A) take more direct aim at competitors.
B) do not mention competitors.
C) allude to competitors in a positive light.
D) are less combative.
E) none of the above
The various opportunities and threats that face multinational corporations are almost
limitless, and the number and complexity of these factors ________ the number of
products and the number of geographic areas served.
A) decrease dramatically with
B) drastically increase with
C) drop slightly with
D) are constant despite
E) are unaffected by
Which of the following sectors of the economy would be most impacted by
technological developments?
A) Forestry
B) Aeronautics
C) Textiles
D) Metals
E) Paper
Which strategies use a firm’s strengths to avoid or reduce the impact of external threats?
A) SO
B) WO
C) SW
D) ST
E) WT
The lowest cost source for precision machinery is
A) Japan.
B) Sri Lanka.
C) Malaysia.
D) Europe.
E) Mexico.
________ is NOT a strategy-implementation activity.
A) Taking corrective actions
B) Establishing annual objectives
C) Devising policies
D) Allocating resources
E) Motivating employees
What type of organizational structure promotes specialization of labor and allows rapid
decision making?
A) Divisional structure by product
B) Functional structure
C) Divisional structure by customer
D) Strategic business unit
E) Matrix structure
If a firm incurs a loss during a particular year, or if the firm had positive net income but
paid out dividends more than the net income, what happens to the RE amount?
A) It increases.
B) It is unchanged.
C) It decreases.
D) It doubles.
E) It cannot be determined from the information given.
Restructuring is also referred to as
A) reengineering.
B) delayering.
C) diversifying.
D) upsizing.
E) integrating.
Looking for a vacant niche helps a company determine
A) its advertising budget.
B) the size of the marketing department.
C) the best place to position a product.
D) the best place to locate a new facility.
E) its projected R&D expenditures.
One difference between CPM and EFE is that
A) CPM includes both internal and external issues.
B) the weights and total weighted scores have different meanings.
C) CPM ratings range from 1 to 10.
D) CPM is performed only for the company, whereas EFE is performed for both the
company and its competitors.
E) CPM is only used in small firms.
What are educated assumptions about future trends and events called?
A) Wild guesses
B) Forecasts
C) Facts
D) Statistics
E) Premonitions