Multiple Choice chapter 1

Introduction

94. __________ percent of Americans think the Internet will change society more than the telephone and television combined.a. 91b. 74c. 37d. 56e. 100

Ans: b Page: 4

95. The nature and core of buying and selling in nearly all industries has been changed bya. the Internet.b. political borders.c. corporate greed.d. customer and employee focus.e. the government.

Ans: a Page: 4

What Is Strategic Management?

96. What can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives?a. Strategy formulationb. Strategy evaluationc. Strategy implementationd. Strategic management

Ans: d Page: 5

97. ____________ is used to refer to strategic formulation, implementation and evaluation, with ______________ referring only to strategic formulation.a. Strategic planning; strategic managementb. Strategic planning; strategic processingc. Strategic management; strategic planningd. Strategic management; strategic processinge. Strategic implementation; strategic focus

Ans: c Page: 5

98. Conducting research to determine internal strengths and weaknesses is performed during which stage of strategic management?a. Formulationb. Implementationc. Evaluationd. Feedback

Ans: a Page: 5

99. Strategy formulation includes all of the following activities excepta. establishing a company mission.b. establishing long-term objectives.c. analyzing alternative strategiesd. measuring organizational performance.e. performing an external audit.

Ans: d Page: 5

100. What are the three stages of the strategic management process?a. Conflict, resolution and implementationb. Formulation, implementation and evaluationc. Formulation, execution and rewardd. Formulation, implementation and resolution

Ans: b Page: 5101. An important activity in __________ is taking corrective action.a. strategy evaluationb. strategy implementationc. strategy formulationd. all of the above

Ans: a Page: 6

102. __________ means mobilizing employees and managers to put strategies into action.a. Formulating strategyb. Strategy evaluationc. Implementing strategyd. Strategic advantage

Ans: c Page: 6

103. __________ skills are especially critical for successful strategy implementation.a. Interpersonalb. Technicalc. Conceptuald. Thinking

Ans: a Page: 6

104. The activity that comes first in strategy evaluation isa. measuring organizational performanceb. reviewing internal and external factorsc. establishing annual objectivesd. establishing long-term objectivese. preparing a revised mission statement

Ans: b Page: 6

105. Which of the following is called the action phase of the strategic management process?a. Strategy formulationb. Strategy implementationc. Strategy evaluationd. Allocating resourcese. Measuring performance

Ans: b Page: 6

106. __________ is not a strategy-implementation activity.a. Taking corrective actionsb. Establishing annual objectivesc. Devising policiesd. Allocating resources

Ans: a Page: 6

107. What does strategy implementation involve?a. Establishing annual objectivesb. Devising policiesc. Allocating resourcesd. All of the abovee. b and c only

Ans: d Page: 6

108. Strategy evaluation is necessary becausea. internal and external factors are constantly changing.b. the SEC requires strategy evaluation.c. competitors change their strategies.d. the IRS requires strategy evaluation.

Ans: a Page: 6

109. Strategic management isa. a pure science.b. based mainly on intuition.c. needed mainly when organizational performance falls.d. based on the use of quantitative and qualitative information.

Ans: d Page: 7

110. Which statement best describes intuition?a. It represents the marginal factor in decision making.b. It represents a minor factor in decision making integrated with analysis.c. It should be coupled with analysis in decision making.d. It is better than analysis in decision making.

Ans: c Page: 7

111. The strategic-management processa. is a system of independent actions.b. follows a strict sequence of activities.c. requires long periods of time to be effective.d. is a system of interrelated functions.

Ans: d Page: 7

112. _________ and _________ are external changes transforming business and society today.a. E-commerce; strategyb. E-commerce; globalizationc. Strategy; globalizationd. Corporate culture; stakeholders

Ans: b Page: 8

Key Terms in Strategic Management

113. The _____________ is any manager who has responsibility for a unit or division, responsibility for profit and loss outcome, or direct authority over a major piece of the business.a. business unit holderb. external consultantc. strategistd. financial planner

Ans: c Page: 8

114. __________ are individuals in an organization most responsible for the success and failure of that organization.a. Strategistsb. Financial plannersc. Personnel directorsd. Stakeholders

Ans: a Page: 8

115. Most strategists agree the first social responsibility of any business must be toa. make enough profit to cover the costs of the future.b. protect the environment.c. provide a safe working environment for employees.d. provide inexpensive products/services to create the volume necessary for turnover.

Ans: a Page: 9

116. Opponents of social responsiveness, such as Milton Friedman, argue that the highest responsibility of an enterprise is its __________ responsibility.a. moralb. politicalc. legald. technologicale. ethical

Ans: c Page: 9

117. Which of these is often considered the first step in strategic planning?a. Developing a vision statementb. Establishing goals and objectivesc. Making a profitd. Developing a mission statement

Ans: a Page: 9

118. What are enduring statements of purpose that distinguish one business from other similar firms?a. Policiesb. Mission statementsc. Objectivesd. Rules

Ans: b Page: 10

119. ___________ would not be part of the external environment of Chrysler.a. United Auto Workersb. The Federal Governmentc. Ford Motor Companyd. Customerse. All of the above are part of Chryslers external environment.

Ans: e Page: 10

120. Environmental scanninga. emphasizes internal factors over external information.b. examines key external factors.c. should be used by large companies, but is not necessary in small businessesd. All of the above are true of environmental scanning.

Ans: b Page: 10

121. One of the many reasons a mission statement is useful is bya. answering the question What is our business?b. describing the values of the firm.c. charting the direction of the firm.d. All of the abovee. None of the above

Ans: d Page: 10

122. __________ could be considered an external opportunity.a. An excellent research and development departmentb. Excellent advertising effectivenessc. A population shift to the Sun Beltd. Top management having many years of experiencee. Effective marketing segmentation

Ans: c Page: 10

123. Usually external opportunities and threats area. uncontrollable by a single organizationb. controlled by governmentsc. not as important as internal strengths and weaknessesd. key functions in strategy implementation

Ans: a Page: 10

124. Which of these can be defined as specific results an organization seeks to achieve in pursuing its basic mission?a. Strategiesb. Rulesc. Objectivesd. Policies

Ans: c Page: 11

125. Long-term objectives should bea. measurable.b. continually changing.c. reasonable.d. challenging.e. only a, c & d

Ans: e Page: 11

126. Internal __________ are activities in an organization that are performed especially well.a. opportunitiesb. competencies c. strengthsd. managementd. factors

Ans: c Page: 11

127. The means by which long-term objectives will be achieved are calleda. strategies.b. strengths.c. weaknesses.d. policies.e. opportunities.

Ans: a Page: 11

128. __________ can best be described as short-term in nature.a. Mission statementsb. Tenurec. Annual objectivese. Strategies

Ans: c Page: 12

129. When (where) should annual objectives be established?a. In January every yearb. At the corporate, divisional and functional levelsc. At the corporate leveld. At the divisional and functional levels

Ans: b Page: 12

130. Annual objectives are especially important in strategy __________, whereas long-term objectives are particularly important in strategy __________.a. formulation; implementationb. implementation; evaluationc. evaluation; implementationd. implementation; formulation

Ans: d Page: 12-13

131. What are guides to decision making?a. Lawsb. Rulesc. Policiesd. Procedurese. Goals

Ans: c Page: 13

The Strategic-Management Model

132. Which of the following is not included in the strategic management model?a. Measure and evaluate performanceb. Perform internal research to identify customersc. Establish long-term objectivesd. Implement strategies

Ans: b Page: 14

133. The strategic-management processa. occurs once a year.b. is a sequential process.c. is a continuous process.d. applies mostly to companies with sales greater than $100 million.

Ans: c Page: 14

134. The strategic-management model can be used effectively bya. profit, nonprofit and government organizations.b. only for-profit organizations.c. only very large organizations.d. only small organizations.

Ans: a Page: 14

Benefits of Strategic Management

135. Strategic management enables an organization to __________, instead of companies just responding to threats in their business environment.a. be proactiveb. determine when the threat will subsidec. avoid the threatsd. defeat their competitors

Ans: a Page: 15

136. What is the act of strengthening employees sense of effectiveness by encouraging and rewarding them to participate in decision making and exercise initiative and imagination?a. Authoritarianismb. Proactionc. Empowermentd. Transformation

Ans: c Page: 15

137. How do line managers become owners of the strategy?a. By attending top manager meetings.b. By gathering information about competitors.c. By involvement in the strategic-management process.d. By becoming a shareholder of the firm.

Ans: c Page: 15

138. According to research, organizations using strategic management are __________ than those that do not.a. more profitableb. more complexc. less profitabled. less successful

Ans: a Page: 16

139. To what do strategists of low-performing organizations often attribute their firms weak performance?a. Poor economyb. Technological changec. Foreign competitiond. Paperwork deadlinese. All of the above

Ans: e Page: 16

140. ___________ businesses in the United States fail annually, according to Dun & Bradstreet.a. Fewer than 10,000b. Approximately 50 percentc. More than 100,000d. Between 20,000 to 30,000

Ans: c Page: 16

141. According to Greenley, strategic management offers all of these benefits except thata. it provides an objective view of management problems.b. it creates a framework for internal communication among personnel.c. it encourages a favorable attitude toward change.d. it maximizes the effects of adverse conditions and changes.e. it gives a degree of discipline and formality to the management of a business.

Ans: d Page: 16-17

Why Some Firms Do No Strategic Planning

142. __________ is not a reason for poor or no strategic planning in organizations.a. Wasting of timeb. Being content with successc. Fire-fightingd. Poor reward structuree. Inexpensiveness

Ans: e Page: 17

Pitfalls in Doing Strategic Planning

143. All of these are pitfalls an organization should avoid in strategic planning except whena. using plans as a standard for measuring performance.b. using strategic planning to gain control over decisions and resources.c. failing to involve key employees in all phases of planning.d. too hastily moving from mission development to strategy formulation.

Ans: a Page: 18

144. __________ is not a pitfall an organization should avoid in strategic planning.a. Failing to communicate the plan to employeesb. Involving all managers rather than delegating planning to a plannerc. Top managers not actively supporting the strategic planning processd. Doing strategic planning only to satisfy accreditation or regulatory requirements

Ans: b Page: 18

145. Which of the following statements is false?a. Open-mindedness is an important guideline for effective strategic management.b. Strategic management must become a self-perpetuating socialist mechanism.c. No organization has unlimited resources.d. Strategic decisions require trade-offs.

Ans: b Page: 19

146. Principles of conduct that guide decision making are known asa. human rights.b. the Constitution.c. business ethics.d. nonprofit organization policies.

Ans: c Page: 20

Business Ethics and Strategic Management

147. A(n) ____________ can provide a basis on which policies can be devised to guide daily decisions and behavior at the work site.a. list of guidelinesb. policy for safetyc. vision statementd. code of business ethicse. annual objective

Ans: d Page: 20

148. The ____________ focuses on business ethics issues related to the Internet.a. E-Commerce Perspectiveb. mission statementc. vision statementd. B2B commercee. B2C Internet commerce

Ans: a Page: 21

149. Because they must take the __________ of the firm, strategists salaries are high compared to those of other individuals in the organization.a. moral risksb. social risksc. environmental risksd. societal criticism

Ans: a Page: 23150. ___________ can be created by ethics training and an ethics culture.a. Competitive responsibilityb. Competitive advantagec. Strategic advantaged. Employee cooperation

Ans: c Page: 23

151. Which of these business actions is(are) always considered to be unethical?a. Poor product or service safetyb. Using nonunion labor in a union shopc. Dumping flawed products in a foreign marketd. Insider tradinge. All of the above

Ans: e Page: 24

152. Ethical standards come out of __________ in a final analysis.a. governmentb. competitorsc. history and heritaged. stakeholder analysis

Ans: c Page: 24

Comparing Business and Military Strategy

153. A strong __________ heritage underlies the study of strategic management.a. militaryb. governmentc. politicald. sociale. cultural

Ans: a Page: 24

154. Military strategy is based on an assumption of __________, whereas business strategy is based on an assumption of __________.a. conflict; cooperationb. conflict; competitionc. cooperation; conflictd. competition; conflicte. cooperation; competition

Ans: b Page: 24

The Nature of Global Competition

155. ____________ are organizations that conduct business operations across national borders.a. Domestic firmsb. Multinational corporationsc. Parent companiesd. Government-backed companies

Ans: b Page: 25

156. A __________ refers to a firm investing in international operations, while the _________ is the country where that business is conducted.a. parent company; host countryb. home country; parent companyc. parent country; host companyd. host company; home country

Ans: a Page: 25

157. __________ is perhaps the greatest advantage of international operations.a. Reduced tariffs and taxesb. Spreading economic risks over a wider number of marketsc. Access to global technology, culture and business practicesd. Gaining new customerse. Less-intense competition

Ans: d Page: 27

158. All of these are potential disadvantages of an international operation excepta. overestimated weaknesses and underestimated strengths of competitors.b. differing languages, cultures and value systems.c. reduced tariffs and taxes.d. complexity due to a multiple monetary system.e. all of these are potential disadvantages.