Exit barriers represent a determinant of
A. Entry
B. Rivalry
C. Buyer power
D. Supplier power
One of the limitations of the SWOT analysis is that it can ______ internal strengths and
______ external threats.
A. overemphasize; downplay
B. underemphasize; downplay
C. overemphasize; enhance
D. underemphasize; enhance
Policies can be ________. One good example of this is the use of equal employment
opportunity practices.
A. Internally derived
B. Negative
C. Externally imposed
D. Very simple in nature
A(n) _______ does not necessarily communicate the real difference in the importance
of objectives.
A. Simple flow
B. Simple ranking
C. Statistical measure
D. Established priority
(p.81) Which of these is NOT an ethical approach for executives to consider?
A. The utilitarian approach
B. The moral rights approach
C. The Sarbanes-Oxley approach
D. The social justice approach
Firms should use _______ to help managers decide when to pull out of old
opportunities that are no longer promising.
A. Exit rules
B. Boundary rules
C. Abandonment rules
D. Priority rules
Few innovative ideas prove to be profitable because of:
A. Low development costs
B. Low pre-marketing costs
C. High research costs
D. High post-marketing costs
Which country leads in chemicals and pharmaceuticals, precision and heavy machinery,
heavy electrical goods and surface transport equipment?
A. France
B. Germany
C. Japan
D. The U.S.
________, a form of power, comes mainly from three sources: expert, referent and peer
influences.
A. External influence
B. Personal influence
C. Punitive influence
D. Organizational influence
If Cola Creations acquires Seltzer Spirit Co., this merger would describe what type of
strategy?
A. Joint venture
B. Horizontal acquisition
C. Vertical acquisition
D. Divestiture
Designing viable strategies for a firm requires a thorough understanding of the firm’s
industry and competition. Which one of the following is NOT a question the firm’s
executives need to address?
A. Who are our customers?
B. What are the boundaries of the industry?
C. What is the structure of the industry?
D. Which firms are our competitors?
Which of the following are inside stakeholders?
A. Board of directors
B. Customers
C. Suppliers
D. Creditors
When there is a low potential compatibility of changes with the existing culture and few
changes in key organizational factors that are necessary to implement the new strategy:
A. Managers should link changes to the basic mission and fundamental organizational
norms
B. Managers should focus on reinforcing the culture and achieving synergies
C. Managers should manage around the culture
D. Managers should reformulate strategy or prepare carefully for long-term, difficult
cultural change
(p.407) Robert Kaplan and David Norton created the _________, a management control
system that enables companies to clarify their strategies, translate them into action and
provide quantitative feedback as to whether the strategy is creating value, leveraging
core competencies, satisfying the company’s customers and generating a financial
reward to its shareholders.
A. Balance-matrix
B. Shareholder methodology
C. Balanced scorecard
D. Strategic approach
Relentless cost cutting is the main force behind the trend of _____.
A. Strategic planning
B. Outsourcing
C. Goal setting
D. Globalization
Business strategies require all of these EXCEPT which feature for success in growing
industries?
A. Establish strong brand recognition
B. Scale up to meet increasing demand
C. Differentiate the firm’s products
D. Horizontal integration
Outsourcing starts for most firms with:
A. The outsourcing of production
B. The outsourcing of the marketing function
C. The outsourcing of payroll production
D. The outsourcing of corporate strategy decisions
Corporate-level decisions are characterized by:
A. Decreased risk
B. Doing things right
C. Short-time horizons
D. Greater cost
A firm seeking to globalize operations would use ________ as its bonus compensation
plan.
A. Restricted stock plans
B. Golden parachutes
C. Golden handcuffs
D. Stock options
When the principal or sole consideration of the acquiring firm is the profit pattern of the
venture, the grand strategy is usually one of:
A. Innovation
B. Horizontal integration
C. Concentric diversification
D. Conglomerate diversification
Continuing source of business is a typical claim of which stakeholder group?
A. Stockholders
B. Employees
C. Suppliers
D. Society
At Office Supply, Inc., ____ -level managers would be responsible for determining
whether the company should be involved in home furnishings or electronic appliance
businesses, whereas ____ -level managers would be responsible for determining how
the firm will compete in the selected product-market arena.
A. Business; corporate
B. Corporate; functional
C. Functional; business
D. Corporate; business
Which of these represent marketing capabilities at the growth stage of industry
evolution?
A. Skills in aggressively promoting products to new markets and holding existing
markets and pricing flexibility
B. Ability to establish brand recognition, find niche, reduce price, solidity strong
distribution relations and develop new channels
C. Cost effective means of efficient access to selected channels and markets and strong
customer loyalty or dependence
D. Resources/skills to create widespread awareness and find acceptance from
customers; advantageous access to distribution
CCC21 stands for:
A. Competitive Cost Competency in the 21st century
B. Construction of Cost Competitiveness for the 21st century
C. Cost Chain Competition for the 21st century
D. Continuous Cost Competitiveness in the 21st century
Strategic management processes need which of the following to enhance future decision
making?
A. Testing
B. Feedback
C. Discontinuity
D. Projecting
The ______ decisions of the industry attractiveness-business strength matrix remain
quite similar to those of the BCG growth-share matrix.
A. Management approach
B. Resource allocation
C. Business strategy
D. Functional strategy
The ______ portrays the notion that firms need to be self-sufficient in capital.
A. Environmental approach
B. Parenting approach
C. Portfolio approach
D. Patching approach
The structure of a simple organization:
A. Limits the owner’s(s’) control
B. Maximizes the owner’s(s’) control
C. Minimizes the owner’s(s’) control
D. Slightly increases the owner’s(s’) control
Joint ventures:
A. Can not address complex markets
B. Speed efforts to integrate into the foreign environment with less financial
commitment than acquiring a foreign subsidiary
C. Must be overseen by an outside board of directors
D. Requires no disclosure of proprietary information
In intense rivalry among manufacturing firms, fixed costs are:
A. High
B. Low
C. Medium
D. Less critical than variable costs
_______ presents the firm’s strategic intent.
A. Mission statement
B. Agency theory
C. Adverse selection
D. Vision statement