Golden handcuffs:
A. Have no downside risk to executives, who always profits unlike other shareholders
B. Have a weak correlation between earnings measures and shareholder wealth creation
C. Make it hard to explain the dimensions of managerial performance using the
movement in share price
D. May promote risk-averse decision making due to the downside risk borne by the
executive
Which one of the following is NOT a way by which good leaders go about building the
organization they want and dealing with problems and issues?
A. Education
B. Perseverance
C. Visioning
D. Principles
__________ differs across national borders.
A. Vision
B. Mission
C. Education
D. Intent
The complexity of a strategy refers to:
A. The breadth of a firm’s business lines
B. A continuum of possible strategic choices
C. The diversity of the products
D. The number of critical success factors required
_______ usually take pride in overseeing the smooth, efficient functioning of operations
largely as they are.
A. Promoters
B. Inventors
C. Innovators
D. Administrators
Which key functional area and which strategy focus are critical at the growth stage of
industry evolution?
A. Production; successor products
B. Engineering; market penetration
C. Sales; consumer loyalty and market share
D. Finance; maximum investment recovery
A properly constructed Balanced Scorecard is balanced between:
A. Short and long-term measures
B. Stakeholder financial measures
C. Organizational and stakeholder performance perspectives
D. Pricing and packaging of the firm’s products
Safety programs, employee stock option plans and worker representation on
management committees are all commonly directed toward achieving which type of
long-term objectives?
A. Employee relations
B. Public responsibility
C. Employee development
D. Competitive position
Some business decisions are strategic and therefore deserve strategic management
attention. Which of the following is one of the six strategic issue dimensions?
A. Requires front-line employee decisions
B. Is not likely to have a significant impact on long-term prosperity of the firm
C. Necessitates considering factors in the firm’s external environment
D. Is spontaneous
Which of the following is NOT a skill or a resource that fosters cost leadership?
A. Strong downstream partners
B. Process engineering skills
C. Low-cost distribution system
D. Sustained capital investment and access to capital
A strategy that seeks to reap the initially high profits associated with customer
acceptance of new or greatly improved product refers to
A. Joint ventures
B. Horizontal integration
C. Innovation
D. Conglomerate diversification
Firms that focus on a specific product and market combination are utilizing a _______
strategy.
A. Concentrated growth
B. Turnaround
C. Innovation
D. Product development
__________ differs across national borders in the various ways people are accustomed
to learning.
A. Social norms
B. Social awareness
C. Education
D. Religion
More than 75 percent of financially desperate firms file for a:
A. Reorganization bankruptcy
B. Partial bankruptcy
C. Liquidation bankruptcy
D. Chapter 12 bankruptcy
The change in customer _______ behavior was the beginning of an evolution in
international strategy. A. saving
B. living
C. purchase
D. moving
Strategic management involves the _____, directing, _____ and controlling of a
company’s strategy-related decisions and actions.
A. Financing; marketing
B. Planning; financing
C. Marketing; planning
D. Planning; organizing
__________ identify activities to be undertaken now or in the immediate future.
A. Long-term tactics
B. Business strategies
C. Corporate strategies
D. Functional tactics
For the ABC Company, the Delta business has a low market share position in a fast
growing market. As per the BCG matrix, Delta is a
A. Cash cow
B. Star
C. Question mark
D. Dog
Which one of these forces DOES NOT determine how much formality is needed in
strategic management?
A. Size
B. Country of origin
C. Complexity of environment
D. Production process
The grand strategy that provides access to new markets for a company while at the
same time eliminating competitors is termed:
A. Concentric diversification
B. Horizontal acquisition
C. Vertical acquisition
D. Conglomerate diversification
An organization is much like a(n) __________, in which new members must be
initiated and earn trust and credibility among fellow members.
A. Institution
B. Tribe
C. Army
D. Elite club
External and internal assessments are conducted ______ a firm enters global markets.
A. after
B. during
C. before
D. once
Which of these is NOT a principal set of inputs to the company mission?
A. Demands of stakeholder groups
B. Identification of CSR auditors
C. Managerial operating philosophy
D. Determinants of the product market offerings
If a shirt manufacturer acquired a chain of men’s clothing outlets, this would be an
example of:
A. Forward acquisition
B. Backward acquisition
C. Horizontal acquisition D. Conglomerate diversification
In general terms, the mission statement addresses all of the following questions
EXCEPT
A. What are our economic goals?
B. What is our operating philosophy in terms of quality, company image and
self-concept?
C. What customers do and can we serve?
D. Who are our competitors and how can we collaborate with them?
Which level of strategy uses a portfolio approach?
A. Business
B. Operational
C. Corporate
D. Functional
Governments, regulators, unions and suppliers represent ________ who potentially
could be managed more effectively by the parent, than by the individual business units.
A. Specialized expertise
B. Predictable errors
C. External stakeholders
D. Internal stakeholders
_________ is engendering trust through genuine awareness and openness to people
from diverse backgrounds. A. Self-management
B. Global mindset
C. Social awareness
D. Social skills
Consider Company A, a financial services company specializing in small business
issues, whose location is in a shopping mall in the suburbs and Company B, a similar
business, whose location is downtown between a successful law firm and a courthouse.
Company A’s comparative success can be best attributed to which RBV guideline?
A. Resource are more valuable when they are scarce
B. Resources are more valuable when they are durable
C. Resources are more valuable when they are scarce
D. Resources are more valuable when they are critical to being able to meet a
customer’s need better than other alternatives