MGMT40000D

CHAPTER 4 QUIZ

1. Strengths that cannot be easily matched or imitated by competitors are called ______.
Distinctive Competencies

2. Which of the following statements is FALSE?

The resource-based view (RBV) approach to competitive advantage contends that internal resources
are equally important for a firm as external factors in achieving and sustaining competitive advantage.

3. Empirical indicators, or characteristics of resources that enable a firm to implement strategies,

include ______.

Not easily substitutable

4. Aspects of organizational culture listed in Table 4-4 include all but which of the following?
Analyze interest rate trends

5. Lorsch found that executives in successful companies are emotionally committed to the firm's culture,
but he concluded that culture can inhibit strategic management in the following way:

Managers frequently miss the significance of changing external conditions because they are blinded
by strongly held beliefs.

6. What are the four basic activities that comprise management?

Planning, organizing, motivating, and controlling

7. ______ is the process by which a person determines whether to attempt a task, works out the most
effective way of reaching desired objectives, and prepares to overcome unexpected difficulties with
adequate resources.

Planning

8. Human resource (HR) management includes activities such as:

Disciplining, promoting, transferring, and demoting

9. The extent to which a manufacturing plant's output reaches its potential output is called ______, a key
strategic variable.

Capacity Utilization

10. The basic activities that comprise marketing include the following:

Marketing research and target market analysis

This study source was downloaded by 100000842546839 from CourseHero.com on 12-21-2022 19:57:57 GMT -06:00

https://www.coursehero.com/file/87215578/Chapter-4-Quizdocx/
 11. Spending on digital advertising recently surpassed television advertising and is expected to reach
nearly ______ billion dollars in 2020.

280

12. Target recently joined Best Buy in offering to match online prices of rival retailers. Both companies are
seeking to combat ______ by shoppers who check out products in their stores but buy them on rival's
websites.

Showrooming

13. According to James Van Horne, the basic activities of finance/accounting consist of three decisions.
What are the three?

The investment decision, the financing decision, and the dividend decision

14. Which statement below is FALSE?

Companies should pay dividends regardless of changes in their revenue.

15. Limitations of financial ratio analysis include all but which one of the following statements?
Financial ratios are estimates of financial condition.

16. To the extent possible, internal strength/weakness factors should meet the four AQCD criteria. Two of
these criteria are _____.

Actionable and comparative

17. In 2018, global data analytics software is expected to reach ______ billion, a ______ percent
increase from 2012.

$21.7; 64

18. In an IFE Matrix, the weights of all factors included must add up to ______.

1.0

19. In developing an IFE Matrix, what is an important guideline?

Include factors that are actionable, quantitative, comparative, and divisional (AQCD) to the extent
possible.

20. Which statement below is FALSE?

The average IFE Matrix score is 2.0.

21. In developing an IFE Matrix, do not allow more than 30 percent of the key factors to be financial
ratios. Why?

Since financial ratios are generally the result of many factors, knowing what particular strategies
should be considered based on financial ratios is difficult.

This study source was downloaded by 100000842546839 from CourseHero.com on 12-21-2022 19:57:57 GMT -06:00

https://www.coursehero.com/file/87215578/Chapter-4-Quizdocx/
 22. In developing an IFE Matrix, when can both internal and external factors be included?

Never

23. In an IFE Matrix, how much more important is a weight of 0.16 than a weight of 0.07?

129 percent

24. Which of the following statements is TRUE?

When assigning weights and ratings in developing an IFE Matrix, focus on a narrow industry
perspective.

25. Which of the following statements is TRUE?

If a firm possesses many highly-weighted strengths, this is likely the result of effective strategies, so
higher ratings in general are warranted for strengths.

This study source was downloaded by 100000842546839 from CourseHero.com on 12-21-2022 19:57:57 GMT -06:00

https://www.coursehero.com/file/87215578/Chapter-4-Quizdocx/
Powered by TCPDF (www.tcpdf.org)