Sustainability refers to the extent that an organization’s operations and actions protect,
mend, and preserve rather than harm or destroy the natural environment.
Investors are now looking closely at Africa in the wake of low interest rates and slow
growth elsewhere on the planet.
The foundation for development of a comprehensive mission statement is provided by a
clear vision.
AT&T’s mission statement focuses on telephones rather than on communication.
The most common bases for segmenting markets are geographic and demographic.
In 2012, Chinese firms dominated Fortune magazine’s list of the least admired
companies from a social responsibility perspective.
The United States has been more active than other nations in protectionist measures and
has engaged in many “Buy American” policies.
The most effective strategic management is ritualistic, predictable, and formal.
The size of U.S. labor unions has increased sharply in the last decade.
Foreign revenue as a percentage of total company revenues is approaching 20 percent
for Colgate-Palmolive.
All strategists have similar attitudes, values, ethics and concerns for social
responsibility.
In 2012, GDF Suez, Marquard & Bahls, and RWE were the three most admired socially
responsible companies according to Fortune magazine.
Many more firms have failed at ________ than have succeeded due to the immense
challenge of managing businesses in many industries rather than in a single industry.
A) forward integration
B) related diversification
C) backward integration
D) unrelated diversification
E) horizontal integration
In projected financial statements, what is used as a plug figure?
A) Retained earnings
B) Fixed assets
C) The cash account
D) Long-term liabilities
E) Stockholders’ equity
What term is defined as “a systematic process of objectively obtaining and evaluating
evidence regarding assertions about economic actions and events to ascertain the degree
of correspondence between these assertions and established criteria, and
communicating the results to interested users”?
A) Auditing
B) Innovation
C) R&D
D) Strategic Management
E) Financial ratios
An effective mission statement does all of the following EXCEPT
A) it reflects judgments about future growth directions that are based upon
forward-looking external and internal analyses.
B) it provides useful criteria for selecting among alternative strategies.
C) it provides a basis for generating and screening strategic options.
D) it is static in orientation.
E) it should be enduring.
Effective mission statements can vary in
A) length.
B) content.
C) format.
D) specificity.
E) All of the above
The strategic-management process represents a(n) ________, ________, and ________
approach for determining an enterprise’s future direction.
A) logical; systematic; subjective
B) intuitive; disorganized; subjective
C) logical; systematic; objective
D) intuitive; disorganized; objective
E) inconsistent; systematic; subjective
Which of the following statements is NOT true?
A) America’s economy is becoming much less American.
B) A world economy and monetary system are emerging.
C) Corporations in every corner of the globe are taking advantage of the opportunity to
obtain customers globally.
D) Markets are shifting slowly and in many cases diverging in tastes, trends, and prices.
E) Innovative transport systems are accelerating the transfer of technology.
Which variable would be considered part of the “place” element of the marketing mix?
A) Product line
B) Service level
C) Personal selling
D) Sales territory
E) Discounts and allowances
In 2012, ________ African countries held democratic elections.
A) 3
B) 13
C) 23
D) 31
E) 43
How many cells are in a SWOT Matrix?
A) Two
B) Four
C) Six
D) Eight
E) Nine
The ideal length of a vision statement is
A) one page.
B) several paragraphs.
C) one sentence.
D) several sentences.
E) as long as is necessary to convey the message.
The ________ decision is the allocation and reallocation of capital and resources to
projects, products, assets, and divisions of an organization.
A) investment
B) dividend
C) financing
D) restructuring
E) benchmark
A revised ________ should focus on changes in the organization’s management,
marketing, finance and accounting, production and operations, research and
development (R&D), and management information systems (MIS) strengths and
weaknesses.
A) mission
B) IFE matrix
C) vision
D) EFE matrix
E) EPM matrix
IKEA Group investing $1.9 billion in India to open 25 new stores between 2013 and
2018 is an example of which type of strategy?
A) Forward integration
B) Backward integration
C) Horizontal integration
D) Market development
E) Product development
All of the following are mentioned as places where vision and mission statements can
often be found EXCEPT
A) SEC reports.
B) annual reports.
C) customer service agreements.
D) supplier agreements.
E) business plans.
Business ethics, ________, and sustainability issues are interrelated and impact all areas
of the comprehensive strategic-management model.
A) social responsibility
B) social networking
C) fiscal irresponsibility
D) cultural indifference
E) None of the above
Which statement is NOT true?
A) Having an effective management information system may be the most important
factor in differentiating successful from unsuccessful firms.
B) Like inventory and human resources, information is now recognized as a valuable
organizational asset that can be controlled and managed.
C) Computer vulnerability has been eradicated by recent innovations, and it is now
possible to secure and safeguard all corporate communications, files, and business
conducted over the Internet.
D) In many firms, information technology is doing away with the workplace and
allowing employees to work at home or anywhere, anytime.
E) Improved quality and service often result from an improved management
information system.
Business or military success is
A) generally the happy result of accidental strategies.
B) undermined by the element of surprise.
C) the product of both attention to changing external and internal conditions and the
insightful adaptations to those conditions.
D) unrelated to external conditions.
E) none of the above.
Which of the following is NOT true about objectives?
A) They should be communicated throughout the organization.
B) They should have an appropriate time dimension.
C) They should use terms like “maximize,” “minimize,” and “as soon as possible.”
D) They should be measurable.
E) They should be consistent.