Believing it will make it easier for investors to compare firms across countries and
make it easier to raise capital globally, most large accounting firms and multinational
firms favor the switch to IFRS.
A cost leadership strategy can be especially effective when most buyers use the product
in the same ways.
Distribution becomes especially important when a firm is striving to implement a
product development or backward integration strategy.
Strategists should strive to create a work environment in which change is recognized as
necessary and beneficial so that individuals can more easily adapt to change.
Strategists in governmental organizations operate with far more strategic autonomy than
their counterparts in private firms.
Opportunities are a firm’s distinctive competencies that cannot be easily matched or
imitated by competitors.
When developing a mission statement, it is usually advisable to involve as few
managers as possible.
A ritual is a standardized set of behaviors used to manage anxieties.
In strategy evaluation, a revised IFE matrix should indicate how effective a firm’s
strategies have been in response to key opportunities and threats.
The decision to expand or diversify operations is a strategy-formulation issue.
According to King and Cleland, carefully developed and written mission statements
provide a basis for organizing work, departments, activities, and segments around a
common purpose.
The test of an effective evaluation system is its complexity.
The Sarbanes-Oxley Act put an end to the “country-club” atmosphere of most boards
and has shifted power from CEOs to directors.
With a divisional structure by customer, an organization can effectively cater to the
requirements of clearly defined customer groups.
The availability, depth, and reliability of economic and marketing information in
different countries vary extensively.
Amazon installing “Amazon Lockers” in grocery, 7-Eleven, and drugstores that accept
packages for later pickup, in order to combat issues with missing deliveries or having
packages stolen, is an example of which type of strategy?
A) Forward integration
B) Backward integration
C) Horizontal integration
D) Related diversification
E) Unrelated diversification
Anything that a firm does especially well compared to rival firms is referred to as
A) competitive advantage.
B) comparative disadvantage.
C) opportunity cost.
D) unsustainable advantage.
E) an external opportunity.
What is the highest number of strategies that can be examined at one time with the
QSPM?
A) 1
B) 2
C) 5
D) 10
E) There is no limit.
Which of these is a limitation of QSPM?
A) Only a few strategies can be evaluated at once.
B) It is prohibitively expensive.
C) It requires intuitive judgments and educated assumptions.
D) Strategies cannot be examined sequentially.
E) It makes it more likely that key factors will be overlooked or weighted
inappropriately.
What percent of the world’s population lives in the United States?
A) 5
B) 10
C) 15
D) 85
E) 95
After completing an EPS/EBIT analysis, what conclusions would you make if the debt
line is above the stock line throughout the range of EBIT on the graph?
A) Debt appears to be the best financing alternative.
B) Stock would be the best financing alternative.
C) A combination of debt and stock is probably the best financial alternative.
D) Dividends must be considered before conclusions can be made.
E) The company should be privately owned.
Forward integration would be an appropriate strategy for which of the following types
of divisions in the BCG Matrix?
A) Dogs
B) Failures
C) Question Marks
D) Cat
E) Star
In the SPACE analysis, what does a (+6, +3) strategy profile portray?
A) A strong industry position
B) An unstable environment
C) A stable environment
D) A weak industry position
E) A weak financial position
An acquisition occurs when a large organization purchases a smaller one or vice versa.
Medium-sized firms tend to use which type of structure?
A) Divisional
B) Matrix
C) SBU
D) Functional
E) Centralized
Empirical indicators of resources are: being rare, hard to imitate, or
A) expensive.
B) inexpensive.
C) easily substitutable.
D) not easily substitutable.
E) inefficient.
Chief marketing officers now spend more than 50 percent of their budget on technology
to manage activities like online marketing and social media.