A clear mission statement describes the values and priorities of an organization.
Corporate social policy should be designed and articulated during strategy formulation.
The quantity or number of units of product that a firm must sell to break even is total
fixed costs divided by (price per unit + variable costs per unit).
Dividend decisions concern issues such as the percentage of earnings paid to
stockholders, the stability of dividends paid over time, and the repurchase or issuance of
stock.
When the correlation between dollar sales and dollar marketing expenditures has
historically been low, market penetration is an appropriate strategy.
Relative market share position is given on the x-axis of the BCG Matrix.
Joint ventures tend to fail when managers who must collaborate daily in operating the
venture are not involved in forming or shaping the venture.
Strategy formulation is the managing of forces during the action, whereas strategy
implementation is the positioning of forces before the action.
On the x-axis of the IE Matrix, an IFE total weighted score of 2.5 represents a weak
internal position.
The Internet is changing the very nature of many industries by altering product life
cycles and changing the historical trade-off between production standardization and
flexibility.
There is a dramatic shift in mass retailing to
A) “trading up” and taking customers from more exclusive stores.
B) selling only the most expensive merchandise.
C) opening dramatically larger supercenters.
D) operating stores with less square footage.
E) cutting back on their online presence.
Which function of management includes areas such as job design, job specifications,
job analysis, and unity of command?
A) Planning
B) Organizing
C) Motivating
D) Staffing
E) Controlling
All of the following are limitations of the BCG Matrix EXCEPT
A) viewing every business as a star, cash cow, dog or question mark can be an
oversimplification.
B) the Matrix requires at least three years worth of data.
C) the Matrix does not reflect divisional or industry growth over time.
D) the Matrix does not allow a company to be classified as somewhere in between two
categories.
E) variables such as size of market and competitive advantages are not considered in
the Matrix.
Which of the following business actions is considered to be unethical?
A) Having satisfactory product or service safety
B) Selling products in foreign markets
C) Providing equal opportunities for women and minorities
D) Filing expense accounts
E) Misleading labeling
Corrective actions are almost always ________ except when external and internal
factors have not significantly changed and the firm is progressing satisfactorily toward
achieving stated objectives.
A) unnecessary
B) needed
C) undesirable
D) prohibitively expensive
E) futile
According to a recent Wall Street Journal article, ________ percent of all firms sampled
had no restrictions on boss-subordinate love affairs at work.
A) 5
B) 13
C) 24
D) 39
E) 80
Alaska and oil companies contend that protections for polar bears ________.
A) are not aggressive enough and must be strengthened
B) are diminishing opportunities for Alaska energy development
C) help push Alaskan companies to explore alternative energy sources
D) are ineffective and actually have caused populations in Alaska to decrease
E) are long overdue and must be enacted immediately
Which two variables rank as marketing’s most important contributions to strategic
management?
A) Diversification and budgeting.
B) Marketing penetration and competition.
C) Competition and collaboration.
D) Product development and market development.
E) Market segmentation and product positioning.
Which of the following illustrates the self-concept component of a mission statement?
A) To earn our customer’s loyalty, we listen to them, anticipate their needs, and act to
create value in their eyes.
B) We are committed to leapfrogging ongoing competition within 1,000 days by
unleashing the constructive and creative abilities and energies of each of our
employees.
C) Our emphasis is on North American markets, although global opportunities will be
explored.
D) To compensate its employees with remuneration and fringe benefits competitive
with other employment opportunities in its geographical area and commensurate with
their contributions toward efficient corporate operations.
E) In this respect, the company will conduct its operations prudently and will provide
the profits and growth which will assure our ultimate success.
What action involves reconfiguring or redesigning work, jobs, and processes for the
purpose of improving cost, quality, service, and speed?
A) Restructuring
B) Downsizing
C) Reengineering
D) Delayering
E) Recruiting
Preserving the environment should be a permanent part of doing business for which of
the following reasons?
A) Consumer demand for environmentally safe products and packages is low.
B) Public opinion demanding that firms conduct business in ways that preserve the
natural environment is weak.
C) Federal and state environmental regulations are fairly simple and static.
D) Many consumers, suppliers, distributors, and investors shun doing business with
environmentally strong firms.
E) More lenders are examining the environmental liabilities of businesses seeking
loans.
Under which condition would a cost leadership strategy be especially effective?
A) when there are many ways to achieve product differentiation that have value to
buyers
B) when most buyers use the product in different ways
C) when buyers incur high costs in switching their purchases from one seller to another
D) when buyers are small and have little power to bargain down prices
E) when the products of rival sellers are essentially identical and supplies are readily
available from any of several eager sellers
Strategy-evaluation activities should ideally be performed
A) just on a periodic basis.
B) only at the onset of a problem.
C) on a continuous basis.
D) solely upon completion of major projects.
E) annually only.
Which type of statement should be created first and foremost?
A) Creed
B) Vision
C) Objectives
D) Mission
E) Competitive advantage
When two organizations of about equal size unite to form one enterprise, which of these
occurs?
A) Hostile takeover
B) Merger
C) Acquisition
D) Leveraged buyout
E) Divestiture