Suboptimization occurs when
A) a division or functional unit views itself as a separate entity and refuses to cooperate
with other divisions or units to the detriment of the organization as a whole.
B) there is a failure to produce at or near full capacity.
C) individuals are placed into positions not suited to their abilities.
D) managers tend to focus more of their attentions on those aspects which are
measurable than on those which are not.
E) managers concentrate too much on short-term performance objectives.
Answer:
According to Porter, to achieve a differentiation competitive strategy by following the
functional strategy of technological leadership, a business unit should
A) pioneer the lowest-cost product design.
B) innovate in other activities to increase buyer value.
C) avoid R&D costs through imitation.
D) create low-cost ways of performing value activities.
E) be the first firm down the learning curve.
Answer:
The ability of competitors to use duplicated resources and capabilities to imitate the
other firm’s success is called
A) imitability.
B) durability.
C) transferability.
D) transparency.
E) replicability.
Answer:
Which strategy did Circuit City use in 2008 when it converted its retail stores to cash?
A) liquidation
B) bankruptcy
C) diversification
D) divestment
E) consolidation
Answer:
What does “MBO” stand for?
A) Market Buy-Out
B) Mergers, Buy-outs, and Options
C) Multinational Business Organization
D) Manufacturing Backlog Order
E) Management By Objectives
Answer:
The second step in value chain analysis is to
A) identify the legal ramifications and responsibilities of their product or service.
B) examine the linkages among the product’s or service’s value chain.
C) confirm that all variables have been included and taken into consideration.
D) ensure that quality management is adequately addressed.
E) examine the potential synergies among the corporation’s product or business units.
Answer:
The innovative bottle design of Ecologic Brands was influenced by a pulp tray used to
ship
A) soda.
B) iPhones.
C) beer.
D) yogurt.
E) reusable totes.
Answer:
Which of the following is NOT a major force in the societal environment?
A) political-legal forces
B) labor forces
C) economic forces
D) technological forces
E) sociocultural forces
Answer:
The concept that advocates management’s attempt to find a strategic fit between
external opportunities and internal strengths while working around external threats and
internal weaknesses is called
A) environmental analysis.
B) position analysis.
C) strategic evaluation.
D) objective analysis.
E) situation analysis.
Answer:
The mix in the workplace of people from different races, cultures, and backgrounds is
referred to as
A) demographics.
B) human diversity.
C) quality of work life.
D) globalization.
E) internationalization.
Answer:
According to Miles and Snow, most major U.S. airlines have reflected which strategic
orientation?
A) initiators
B) reactors
C) analyzers
D) prospectors
E) defenders
Answer:
Sixty-six percent of the outstanding stock in the largest U.S. and UK corporations is
now owned by
A) family directors.
B) affiliated directors.
C) institutional investors.
D) retired directors.
E) management directors.
Answer:
According to Porter, the generic competitive strategy that reflects the ability to provide
unique and superior value to the buyer in terms of product quality, special features, or
after-sale service is called
A) competitive scope.
B) differentiation.
C) focus.
D) diversification.
E) cost leadership.
Answer:
Which of the following is NOT a key characteristic of transformational executive
leaders?
A) The CEO presents a role for others to identify with and to follow.
B) The CEO communicates high performance standards for all employees.
C) The CEO demonstrates confidence in the employees’ abilities to meet the expressed
high standards.
D) The CEO energizes the board to formulate strategy.
E) The CEO articulates a strategic vision for the corporation.
Answer:
Which of the following is an example of a corporate strategy?
A) Diversify product line to appeal to more people.
B) Imitate products of competitors.
C) Pay highest salaries to keep high quality employees.
D) Develop and sell quality appliances worldwide.
E) Divide a sales region into a group of sales districts.
Answer:
According to a 2012 survey by Deloitte Consulting, the most popular outsourced
activity was
A) marketing.
B) sales.
C) finance.
D) R&D.
E) information technology.
Answer:
A multidivisional corporation like GE would tend to use what type of responsibility
center?
A) expense center
B) investment center
C) profit center
D) standard cost center
E) revenue center
Answer:
According to the text, unique market opportunities that are available for only a
particular time are called
A) situational occasions.
B) critical openings.
C) strategy implementation.
D) strategic windows.
E) trigger points.
Answer:
Which of the following is NOT one of the categories of important financial ratios that is
mentioned in the text to help assess an organization’s overall financial situation?
A) leverage ratios
B) liquidity ratios
C) asset management ratios
D) activity ratios
E) profitability ratios
Answer:
Which financial ratio indicates the percentage of profit that is paid out as dividends?
A) return on equity
B) dividend payout ratio
C) dividend yield on common stock
D) price/earnings ratio
E) debt to asset ratio
Answer:
Which financial ratio measures the extent to which borrowed funds have been used to
finance the company’s assets?
A) debt to asset ratio
B) debt to equity ratio
C) long-term debt to capital structure
D) times interest earned
E) current liabilities to equity
Answer:
The flow of products into and out of the manufacturing process is a factor when
developing a(n) ________ strategy.
A) marketing
B) logistics
C) operations
D) financial
E) human resource management
Answer:
A difference between basic financial planning and forecast-based planning is
A) the time horizon is shorter in forecast-based planning.
B) forecast-based planning incorporates internal and external information.
C) basic financial planning utilizes consultants with sophisticated techniques.
D) basic financial planning utilizes scenarios and contingency strategies.
E) basic financial planning relies heavily on input from lower levels in the organization.
Answer:
The first step in stakeholder analysis is to
A) identify primary stakeholders.
B) monitor what all the stakeholders want.
C) identify the stakeholders with an indirect stake in the corporation.
D) estimate the effect on each stakeholder group from any particular strategic decision.
E) identify the influence of each stakeholder group.
Answer:
________ is more valuable because it can provide companies with a sustainable
competitive advantage that is harder for competitors to imitate.
A) Tacit knowledge
B) Explicit knowledge
C) Imitable knowledge
D) Transferable knowledge
E) Durable knowledge
Answer:
The currency used to integrate the monetary systems of the European Union (EU) is
called the
A) peso.
B) dollar.
C) euro.
D) franc.
E) pound.
Answer:
When the pressure for coordination is strong and the pressure for local responsiveness
is weak for multinational corporations within a particular industry, the industry will
tend to become
A) global.
B) consolidated.
C) multidomestic.
D) risky.
E) indigenous.
Answer:
Which of the following strategies was being used when Allied Corporation and Signal
Companies formed Allied Signal?
A) mergers
B) strategic alliances
C) diversification
D) acquisitions
E) concentration
Answer:
Which of the following statements is NOT true of a strategic inflection point?
A) The term was coined by Andy Grove, past CEO of Intel Corporation.
B) This represents what happens to a business when a major change takes place due to
the introduction of new technology.
C) This represents what happens to a business when a major change takes place due to a
change in customers’ values or a change in what customers prefer.
D) This represents what happens to a business when a major change takes place due to a
different regulatory environment.
E) A new CEO is an example of a strategic inflection point.
Answer:
According to Miles and Snow, companies with fairly broad product lines that focus on
product innovations and market opportunities such as Frito-Lay, reflect which strategic
orientation?
A) initiators
B) reactors
C) analyzers
D) prospectors
E) defenders
Answer:
All of the following are examples of output controls EXCEPT
A) sales quotas.
B) specific cost reduction objectives.
C) profit objectives.
D) getting to work on time.
E) surveys of customer satisfaction.
Answer:
In order for a business to be sustainable, it must satisfy which of Carroll’s
responsibilities?
A) economic
B) legal
C) ethical
D) discretionary
E) all of the above
Answer:
Which type of control specifies how something is to be done through policies, rules,
standard operating procedures, and orders from a superior?
A) tactical control
B) strategic control
C) output control
D) behavior control
E) functional control
Answer:
All of the following are true of the dual chair/CEO position EXCEPT
A) it is being increasingly criticized because of the potential for conflict of interest.
B) it endangers the ability to properly oversee top management.
C) it is separated by law in Germany, the Netherlands, and Finland.
D) it is more popular in American corporations than firms in the United Kingdom.
E) firms with a dual chair/CEO role have significantly better stock performance.
Answer: