According to Rumelt, consistency and feasibility are largely based on a firm’s internal
assessment.
A mission statement can sometimes be called a statement of philosophy.
Too much emphasis on evaluating strategies may be expensive and counterproductive.
According to Michael Porter, five competitive forces create vital opportunities and
threats to organizations:
1. rivalry among competing firms
2. potential entry of new competitors
3. potential development of substitute products
4. bargaining power of suppliers, and
5. bargaining power of consumers.
Chapter 9 bankruptcy applies to municipalities.
There is no one ideal strategy-evaluation system for all organizations.
A force change strategy is plagued by low commitment and high resistance.
Leverage ratios measure a firm’s ability to meet maturing short-term obligations.
According to research, participation in strategy-evaluation activities is one of the best
ways to overcome individuals’ resistance to change.
Which individuals are most responsible for the success and failure of an organization?
A) Strategists
B) Financial planners
C) Personnel directors
D) Stakeholders
E) Human resource managers
An important activity in ________ is taking corrective action.
A) strategy evaluation
B) strategy implementation
C) strategy formulation
D) strategy leadership
E) all of the above
The United States’ population is
A) getting younger and less white.
B) getting younger and more white.
C) getting older and less white.
D) getting older and more white.
E) remaining stable as to age and racial make up.
________ ties all business functions together and provides the basis for all managerial
decisions.
A) Management
B) Marketing
C) Information
D) Technology
E) Workforce
Today McDonald’s owns about ________ percent of its restaurants.
A) 9
B) 20
C) 50
D) 67
E) 89
Synergy
A) is the 2 + 2 = 5 effect.
B) can result in powerful competitive advantages.
C) can be developed by an organization through planning.
D) exists when everyone pulls together as a team that knows what it wants to achieve.
E) all of the above
The controversial practice of a company borrowing money simply to fund dividend
payouts to itself is known as
A) a leveraged buyout.
B) retrenchment.
C) first mover advantage.
D) dividend recapitalization.
E) dividend divestiture.
Which strategies are defensive tactics directed at reducing internal weaknesses and
avoiding external threats?
A) SO
B) WO
C) SW
D) ST
E) WT
In which phase of strategic management are long-term objectives especially important?
A) Formulation
B) Control
C) Evaluation
D) Implementation
E) Management
Responsibility for encouraging ethical decision making and ensuring ethical behavior in
a firm lies with
A) only a firm’s strategists.
B) only a firm’s managers.
C) only a firm’s shareholders.
D) both a firm’s strategists and its managers.
E) neither a firm’s strategists nor its managers.
The U.S. government’s OPIC
A) offers insurance to offset some risks of doing business internationally.
B) provides insurance to eliminate all of the risks of doing business internationally.
C) gives informational seminars about the risks associated with doing business
internationally.
D) requires that paperwork be filed by U.S. companies desiring to do business
internationally.
E) discourages foreign companies from doing business in the United States.
Which organizational structure is the most widely used?
A) Departmental
B) Strategic business unit
C) Functional
D) Decentralized
E) Matrix
Which of the following is NOT a key question that can reveal internal strengths and
weaknesses of the marketing department?
A) Does the firm have an effective sales organization?
B) Is our product quality good?
C) Are markets segmented effectively?
D) Are the firm’s products and services priced appropriately?
E) Does the firm have good liquidity?
The process whereby a firm determines the costs associated with organizational
activities from purchasing raw materials to manufacturing products to marketing those
products is called
A) the resource-based approach.
B) value chain analysis.
C) strategic cost analysis.
D) the internal factor evaluation matrix.
E) cost-benefit analysis.
Strategy evaluation is necessary because
A) internal and external factors are constantly changing.
B) the SEC requires strategy evaluation.
C) success today is a guarantee of success tomorrow.
D) the IRS requires strategy evaluation.
E) firms have limited resources.
What kind of strategy is retrenchment?
A) A turnaround strategy
B) An expansion strategy
C) A diagonal strategy
D) An intensive strategy
E) An offensive strategy
Which strategy seeks to increase market share for present products or services in
present markets through greater marketing efforts?
A) Market penetration
B) Forward integration
C) Market development
D) Backward integration
E) Product development
One difference between CPM and EFE is that
A) CPM includes both internal and external issues.
B) the weights and total weighted scores have different meanings.
C) CPM ratings range from 1 to 10.
D) CPM is performed only for the company, whereas EFE is performed for both the
company and its competitors.
E) CPM is only used in small firms.
Which management function includes breaking tasks into jobs, combining jobs to form
departments, and delegating authority?
A) Motivating
B) Staffing
C) Organizing
D) Controlling
E) Planning