Bargaining power of consumers is usually the most powerful of Porter’s five
competitive forces.
The most admired electronics company in 2011 was Tyco International.
According to King and Cleland, carefully developed and written mission statements
ensure unanimity of purpose within the organization.
The most effective differentiation bases are those that are hard or expensive for rivals to
duplicate.
A total weighted score of 1.0 for an EFE Matrix indicates that the firm is responding in
an outstanding way to existing opportunities and threats in its industry.
Labor markets have become steadily more international with more and more countries
around the world welcoming foreign investment and capital.
The Grand Strategy Matrix is based on two evaluative dimensions, market share and
market growth.
Freund argues that key external factors must not be hierarchical.
Market penetration can be defined as the subdividing of a market into distinct subsets of
customers according to needs and buying habits.
Linear regression is based on the assumption that the future will be different from the
past.
According to research, organizations using strategic management are ________ than
those that do not.
A) more profitable
B) more complex
C) less profitable
D) less successful
E) less complex
What is the first step in designing an EFE Matrix?
A) Identifying key external factors in the industry
B) Summing the weighted score for each competitor
C) Calculating the sales of each competitor
D) Drawing the horizontal and vertical lines for the matrix
E) Determining four competitors
The strategic-management process represents a(n) ________, ________, and ________
approach for determining an enterprise’s future direction.
A) logical; systematic; subjective
B) intuitive; disorganized; subjective
C) logical; systematic; objective
D) intuitive; disorganized; objective
E) inconsistent; systematic; subjective
Which of these examples of a mission statement’s focus area does NOTidentify the
utility of the firm’s products to its customers?
A) AT&T focuses on communication rather than telephones.
B) ExxonMobil focuses on oil and gas rather than energy.
C) Union Pacific focuses on transportation rather than railroads.
D) Universal Studios focuses on entertainment rather than movies.
E) Starbucks focuses on the caf© experience rather than coffee.
Which of the following is in keeping with the current view of organizational change?
A) Organizational change is a project.
B) Organizational change is a continuous process.
C) Organizational change is an event.
D) Organizational change involves unfreezing behavior, changing the behavior, and
then refreezing the new behavior.
E) All of the above
________ exemplifies the complexity of relationships among the functional areas of
business.
A) Government auditing
B) External auditing
C) Financial ratio analysis
D) Environmental scanning
E) Distribution strategy
Also important in evaluating strategies are ________ criteria, like high absenteeism and
turnover rates, or low employee satisfaction.
A) numerical
B) qualitative
C) quantitative
D) accounting
E) financial
In preparing projected statements, to project cost of goods sold and the expense items in
the income statement, which of these methods is recommended?
A) Determining the net worth method
B) What a firm earns method
C) Percentage-of-sales method
D) Price-earnings ratio method
E) Outstanding shares method
It has become ________, since uniform standards defining environmentally responsible
company actions are rapidly being incorporated into our legal landscape.
A) more and more difficult for firms to make “green” claims when their actions are not
substantive or even true
B) increasingly easy for firms to get away with placing “green” terminology on their
products without any oversight
C) customary for firms to use terms like “organic,” “green,” or “earth-friendly” when
their products don’t warrant it
D) more common for consumers to be cynical about corporate environmental claims
E) impossible for firms to omit “green” terminology from their labels
In the BCG Matrix, a division with a high relative market share position in a
low-growth industry can be described as a
A) Star.
B) Cash Cow.
C) Question Mark.
D) Dog.
E) Failure.
A study by Rarick and Vitton found that firms with a formalized mission statement have
________ the average return on shareholders’ equity than those firms without a
formalized mission statement.
A) one-quarter
B) half
C) twice
D) three times
E) five times
Information collection, retrieval, and storage can be used to create competitive
advantages in ways such as
A) cross-selling to customers.
B) monitoring suppliers.
C) keeping managers and employees informed.
D) coordinating activities among divisions.
E) all of the above