It is possible to obtain insurance from the U.S. government ‘s OPIC to eliminate all
risks associated with doing business internationally.
Labor markets have become steadily more international with more and more countries
around the world welcoming foreign investment and capital.
If the rate of market growth and technical progress is rapid and there are few barriers to
possible new entrants, then in-house R&D is the preferred solution.
One of the four recommended approaches for determining a firm’s worth is to base the
analysis on the selling price of a similar company.
The social, cultural, demographic, environmental, political, governmental, legal,
technological, and competitive opportunities and threats that face a multinational
corporation are almost limitless.
The terms strategic management and strategic planning are synonymous in this text.
The weights and total weighted scores in both a Competitive Profile Matrix and an EFE
Matrix have the same meaning.
Chapter 7 bankruptcy is a liquidation procedure used only when a firm sees no hope of
being able to operate successfully or to obtain necessary creditor agreement.
Firms are often motivated to initiate international operations because competitors in
foreign markets may not exist, or competition may be less intense than in domestic
markets.
All of the following utility statements are relevant in developing a mission statement
EXCEPT
A) Do not offer me shoes. Offer me comfort for my feet and the pleasure of walking.
B) Do not offer me furniture. Offer me comfort and the quietness of a cozy place.
C) Do not offer me ideas, emotions, ambience, feelings, and benefits. Offer me things.
D) Do not offer me books. Offer me hours of pleasure and the benefit of knowledge.
E) Do not offer me a house. Offer me security, comfort, and a place that is clean and
happy.
Communication between domestic headquarters and overseas operations is often made
difficult by
A) geographic distance.
B) cultural differences.
C) variations in business practices.
D) national differences.
E) all of the above
After a draft mission statement has been developed, it is important to
A) ask managers to read several articles about mission statements as background
information.
B) vote on the mission statement.
C) ask managers to prepare a mission statement for the organization.
D) ask managers to seek support for the mission statement from their subordinates.
E) request modifications, additions, and deletions to the mission statement.
Which strategy-formulation technique reveals the relative attractiveness of alternative
strategies and thus provides an objective basis for selecting specific strategies?
A) SWOT
B) SPACE
C) QSPM
D) IFE
E) CPM
Not all sectors of the economy are equally affected by technological developments; the
________ industry is much more volatile than the ________ industry.
A) textile; communications
B) pharmaceutical; forestry
C) metals; electronics
D) forestry; communications
E) textile; pharmaceutical
What is the most common type of financial budget?
A) Cash
B) Sales
C) Profits
D) Factory
E) Flexible
What occurs when two or more companies form a temporary partnership or consortium
for the purpose of capitalizing on some opportunity?
A) Retrenchment
B) A joint venture
C) Liquidation
D) Forward integration
E) Divestiture
What are the three categories of approaches for managing and resolving conflict?
A) Avoidance, defusion, and confrontation
B) Avoidance, apathy, and defusion
C) Ignorance, indifference, and apathy
D) Defusion, apathy, and avoidance
E) Indifference, avoidance, and role-playing
In developing a mission statement, arousing emotion
A) is not a benefit.
B) is futile.
C) is important.
D) should be avoided if possible.
E) is counterproductive.
Too much emphasis on evaluating strategies
A) may be expensive and counterproductive.
B) is not possible – the more emphasis the better.
C) is good for morale, as employees like being closely evaluated.
D) is always advised if the firm can afford it.
E) is worse than too little or no evaluation.
Compare and contrast two of Rumelt’s four criteria for evaluating strategies.
Describe how organizations can create an ethics “culture.”
A good mission statement effectively reflects the anticipations of customers and reveals
the utility that various products or services offer customers. Give three examples of this.
Name at least ten issues that may require a management policy.
Explain what it means for a mission statement to have a customer orientation.
What are five differences between strategy formulation and strategy implementation?
There are three major approaches for managing and resolving conflict in an
organization. Define these three approaches and give an example of each.
Discuss the following statement: “Planning would be impossible without assumptions.”
What is state of labor unions in the USA? How can unions affect businesses?