Adequate and timely feedback is important to effective strategy evaluation.
Strategic management is an attempt to organize qualitative and quantitative information
in a way that allows effective decisions to be made under conditions of uncertainty.
Strengths and weaknesses are determined relative to competitors.
In developing an organizational chart, avoid having a particular person reporting to
more than one person above them in the chain of command.
An external audit focuses on identifying and evaluating trends and events within the
control of management.
Firms can be more proactive with strategic management.
Strategists in multinational corporations are often confronted with the need to be
globally competitive and nationally responsive at the same time.
Military success is usually the happy result of accidental strategies, but business success
is the product of continuous attention to changing conditions and insightful adaptations
to those conditions.
There are five component variables in the marketing mix: product, place, promotion,
price, and people.
Activity ratios measure how effectively a firm is using its resources.
The smile is one form of communication that works the same worldwide.
The controlling function of management is especially important for effective strategy
evaluation.
________ was socially responsible in the wake of the earthquake and tsunami that
devastated Japan in 2011; it also was able to get supplies to people who needed them
following Hurricane Katrina.
A) China Railway Group
B) GDF Suez
C) Walmart
D) RWE
E) Marquard & Bahls
Discuss the economic outlook for Africa.
In mass retailing, big-box companies like Walmart, Best Buy, and Sears are
A) gaining competitive advantage over smaller stores.
B) participating in a dramatic shift to becoming bigger.
C) increasing the square-footage of their retail locations.
D) finding that less brick and mortar is better.
E) noticing a sharp decline in online purchases.
Which of the following is part of the strategic management model?
A) Measure and evaluate performance
B) Develop mission and vision statements
C) Establish long-term objectives
D) Implement strategies
E) All of the above
What are guides to decision making called?
A) Strategies
B) Rules
C) Policies
D) Objectives
E) Goals
The initial step to implementing value chain analysis is
A) attaching a cost to each discrete activity.
B) establishing costs in terms of time.
C) establishing costs in terms of money.
D) converting the cost data into information by looking for competitive cost strengths
and weaknesses.
E) dividing a firm’s operations into specific activities or business processes.
Collecting and evaluating information on competitors is essential for successful
A) internal analysis.
B) strategy evaluation.
C) strategy formulation.
D) strategy implementation.
E) strategy correction.
All of the following business actions are considered to be unethical EXCEPT
A) moving jobs overseas.
B) preventing environmental harm.
C) overpricing.
D) sexual harassment.
E) insider trading.
Sometimes ________ is used to refer to strategic formulation, implementation and
evaluation, with ________ referring only to strategic formulation.
A) strategic planning; strategic management
B) strategic planning; strategic processing
C) strategic management; strategic planning
D) strategic management; strategic processing
E) strategic implementation; strategic focus
The two positive-rated dimensions on the SPACE Matrix are
A) FP and CP.
B) CP and SP.
C) FP and IP.
D) IP and SP.
E) FP and SP.
Environmental advocacy groups now have ________ Americans as members.
A) approximately 100,000
B) just under a million
C) close to 5 million
D) over 20 million
E) almost a billion
Strategic management enables an organization to ________, instead of just responding
to threats in its business environment.
A) be proactive
B) be immune to threats
C) avoid responsibility for shaping its future
D) relinquish control over its destiny
E) be reactive
An effective mission statement should do all of the following EXCEPT
A) include monetary amounts, numbers, percentages and ratios.
B) be inspiring.
C) reveal that the firm is environmentally responsible.
D) identify the utility of a firm’s products.
E) be reconciliatory.
Which stage of the strategy-formulation framework includes an IFE Matrix and a
Competitive Profile Matrix?
A) Input
B) Matching
C) Decision
D) Penetration
E) Research
All of the following are guidelines for effective strategic planning EXCEPT
A) it should be simple and nonroutine.
B) it should be a learning process for all managers and employees.
C) it should be a paper process more than a people process.
D) it should not disregard qualitative information.
E) it should not be a formal system for control.
If suppliers are unreliable or too costly, which of these strategies may be appropriate?
A) Horizontal integration
B) Backward integration
C) Market penetration
D) Forward integration
E) Concentric diversification
Bribery involves
A) bestowing a gift to influence the recipient’s conduct.
B) requiring employees to report any unethical violations they discover or see in the
firm.
C) prohibiting love affairs between bosses and their subordinates.
D) encouraging firms to play a role in curing society of its ills.
E) forcing companies to take responsibility for the impact their actions have on society.
Rumelt’s criteria of consonance refers to the need for strategists to examine
A) inconsistent goals.
B) sets of trends.
C) impractical objectives.
D) competitive advantages.
E) the costs associated with particular strategies.
Good mission statements identify the ________ of a firm’s products to its customers.
A) utility
B) price
C) profit margin
D) demand
E) popularity
List some guidelines for when related diversification would be a particularly good
strategy to pursue.
Discuss Michael Porter’s five generic strategies.
Explain the process of developing a mission statement.
According to Roger Schroeder, there are five basic functions or decision areas in
production. Describe these five functions.
Explain how to perform a projected financial analysis.
Discuss some contingency plans commonly established by firms.
Explain the important issues involved in deciding whether to go public, i.e., a private
firm considering becoming a public firm. Include cost estimates, advantages and
disadvantages.
In a BCG Matrix, all divisions are classified as either Question Marks, Stars, Cash
Cows, or Dogs. Define each of these terms.
List some guidelines for when forward integration would be a particularly good strategy
to pursue.