TỔNG HỢP CUỐI

____ plans can be defined as alternative plans that can be put into effect if certain key events do
not occur as expected.? D) Contingency
_______ advantage tends to be self-sustaining so long as key external and internal factors that
underlie it (them) remain(s) stable. Positional
_______ are quantitative criteria commonly used to evaluate strategies. D) Financial ratios
_________ is not part of an external audit? Analyzing financial ratios
__________ is/are corrective actions a firm could take during strategy evaluation. Revising the
business mission,Issuing stock, Revising objectives (3 đáp án)
___________ are perhaps the most commonly used criteria to evaluate strategies. Financial
ratios
______________ occur(s) when the nature, types and speed of changes overpower an
individual’s or organization’s ability and capacity to adapt. Future shock
______________is/are the best way to overcome individuals’ resistance to change in strategy

evaluation. Participation
_____is/are the source of a firm’s ____, which is/are the source of the firm’s_____ Resources,
capabilities, core competencies
“A possible and desirable future state of an organization” is called: Vision
“Identifying and evaluating key social, political, economic, technological and competitive
A
A budget is a statement of a corporation’s program in dollar terms. Which is NOT true of the
budgetary function? only one budget is necessary
A checklist of questions, by area or issue that enables a systematic analysis to be made of various
corporate functions and activities is referred to as a strategic audit
A company that operates in at least two different product-market areas in which one product is
stable and the other one is variable, reflects which strategic orientation?C) analyzers
A company with significant assets and activities in multiple countries is known as a (n) 
multinational corporations
A difference between basic financial planning and forecast -based planning is.....  forecast-
based planning incorporates environmental data and extrapolates current trends
A ferecasting technique using quantitative measures that attempt to discover causal or at least
explanatory factors that link mo or more time series together is called B) statistical modeling
A final broad test of strategy is its ?feasibility.
A firm takes corrective actions during strategy evaluation. Which of the following is NOT a type
of corrective action? Take on more debt
A firm’s mission  is a statement of a firm’s business in which it intends to compete and the
customers which it intends to serve
A goal differs form an objective because it its open-ended
A large business has three levels in its hierachy of strategy corporate, business and functional
A non-quantitative approach to forecasting that requires simply the presence of people with some
knowledge of the situation to be predicted is called D) brainstorming
A program or tactic is  a system of sequential steps
A relationship that illustrates the term complementor is A) Microsoft and Intel
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. ) IFE Matrix
A revised ________ should indicate how effective a firm's strategies have been in response tokey
opportunities and threat? D)EFE matrix (external)
opportunities and threats. C) EFE Matrix
A revised __________ should indicate how effective a firm’s strategies have been in response to
key opportunities and threats. EFE matrix
A set of sequential steps or techniques that describe in detail how a particular task or job is to be
done is referred to as a standard operating procedure
A strategy is a company’s? Game Plan to outsmart competitor

A study of nearly 500 of the world's largest corporations indicated which of the following to be
the most widely practiced form of forecasting? E) trend extrapolation
A sugar company that is worried that consumers may buy artificial sweetener instead of sugar is
concerned about theC) threat of substitute products
A table which summarizes the key success factors within a particular industry is called a(n) E)
industry matrix
industry matrix
a(n)_______ stance towards change. Proactive
According to author Alvin Toffler, what occurs when the nature, types, and speed of changes
overpower an individual's or organization's ability and capacity to adapt? Future shock
According to Greenley, strategic management offers all of these benefits except that it
maximizes the effects of adverse conditions and changes.
According to Porter, the corporation is most concerned with the intensity of competition
within its industry
According to Porter’s model, a low force can enable the company to earn greater profits and can
be regarded as a(n) opportunity
According to Porter’s model, a strong or high force is likely to reduce profits and can be
regarded as a(n) threat
According to researchers, all of the following encourage individuals to accept change EXCEPT?
E) being overpowered by the nature, types, and speed of changes.
According to the five factors model, an attractive industry would have all of the following
characteristics EXCEPT low barriers to entry
According to the text, the strength of each of the six driving forces varies according to the B)
stage of industry evolution
achieve company objectives refers to its? Strategy
Adequate and timely ________ is/are the cornerstone of effective strategy evaluation. feedback
All of the following are forces that create high rivalry within an industry EXCEPT fast
industry growth
All of the following are principles of good organizational governance, as established by
BusinessWeek, EXCEPT? D) at least three directors are current or former company executives.
All of the following are reasons strategy evaluation is more difficult today except? the decreasing
difficulty of predicting the future with accuracy.
All of the following are reasons strategy evaluation is more difficult today EXCEPT? the
increasing time span for which planning can be done with any degree of certainty.
All of the following are reasons to be completely open as opposed to secretive with the strategy
process EXCEPT? openness limits rival firms from imitating or duplicating the firm's strategies
All of the following are reasons to be completely open with the strategy process except?
openness limits rival firms from imitating or duplicating the firm's strategies.
All of the following are technological breakthroughs already having a significant impact on
many industries EXCEPT? growing health consciousness
All of the following reflect activities of a learning organization EXCEPT....  alienating

competitors in the industry
All of the following statements are true except? strategy evaluation should be performed at the
end of specified periods.
All of these are Richard Rumelt’s criteria to evaluate a strategy except? consonance
All the following are reasons strategy evaluation is more difficult today except? the decreasing
difficulty of predicting the future with accuracy .
Already the European Union and 113 nations including Australia, Mexico, and Canada have
________ IFRS rules? E) adopted or soon plan to use
An analysis of the economic segment of the external environment would include all of the
following EXCEPT the move toward a contingent workforce
An external analysis enables a firm to determine what the firm might do
An industry dosninated by a few large firms, all of which struggle with product differentiation, is
known as B) consolidated
An organisation’s strategy generally forms over a period of time as events unfold
An organization skilled at creating, acquiring, and transferring knowledge, and at modifying its
behavior to reflect new knowledge and insights is a learning organization
An organization's ability to adapt successfully to changing circumstances refers to its?
corporate agility.
Annual objectives? Serve as guidelines for action,directing and channeling efforts and activities
of organization members
Annual objectives? Should be measurable
As a part of the strategic management process, evaluation and control is concerned with all of the
following EXCEPT determining top management benefits packages
As defined in this course, a policy is a broad guideline for making decisions
businesses. It is______=>Objective
C
Changes in the organization’s management, marketing, finance/accounting, R&D and CIS
strengths and weaknesses should be the focus of a revised? IFE matrix.
Changes in the organization's management, marketing, finance/accounting, R&D and CIS

strengths and weaknesses should be the focus of a revised? IFE matrix ( Internal)
Climate models are projecting hotter, drier, and less predictable climates, resulting in a
significant drop in water run-off in most of the Middle East and North Africa by? C) 2050.
Companies with fairly broad product lines that focus on product innovations and market
opportunities, reflect which strategic orientation? D) prospectors
Competitive advantage can best be described as  increased efficiency
Competitive advantage is normally the result of superiority in resources, skills, or? position
Competitive advantage normally is the result of superiority in all of these areas except?
consistency.
Competitive advantage normally is the result of superiority in resources, skills and…..?

position.
Competitive advantages are normally the result of superiority in one of three areas. Which of
Competitive advantages are normally the result of superiority in one of three areas. Which of the
following is one of them? Resources
Competitors are more likely to respond to competitive actions that are taken by market leaders
Controls need to be ________ rather than ________. action oriented; information oriented
Corporations that lack a consistent strategy-structure-culture relationship reflect which strategic

orientation? B) reactors
Corrective action should do all of the following except? avoid external opportunities.
Corrective action should do all of the following EXCEPT? avoid external opportunities
Corrective actions are __________ as a result of strategy evaluation. almost always needed
Corrective actions are almost always ________ except when external and internal factors have
not significantly changed and the firm is progressing satisfactorily toward achieving stated
objectives? needed
Corrective actions are expected to? A) strengthen an organization's competitive position in its
industry.
Corrective actions are not needed when? external and internal factors have not significantly
changed.
Corrective actions should? strengthen an organization's competitive position in its industry .
Corrective actions should? strengthen an organization’s competitive position in its industry.
D
Describe the four general forces in the societal environment. Answer: The four general forces in
the societal environment are political-legal, and sociocultural Economic forces regulate the
exchange of materials, money, economic, technological, energy, and information Technological
forces generate problem-solving inventions Political legal forces allocate power and provide
constraining and protecting laws and regulations Sociocultural forces regulate the values, mores,
and customs of society.
External assessment is performed in which of the strategic management phase? Strategy
formulation stage
F
Familiarity with local environments usually makes gathering and evaluating information much
easier for ________ organizations than for ________ ones? small; large
FedEX stipulates specific employee behaviors including how a driver dresses to how kes are held
when approaching a customer’s door. This is an example of a procedure
Financial ratios are used to compare a firm's performance over different time periods, to compare
the firm's performance to industry averages, and to compare a firm's performance with? the
performance of competitors
Financial ratiosm are used to compare a firm's performance over different time periods, compare
the firm's performance to industry averages, and compare a firm's performance with ? the
Firms with few competitive resources are more likely delay responding to competitive actions
formulation, Implementation, control and evaluation
H
How does a revised External Factor Evaluation Matrix compare to an existing External Factor
Evaluation Matrix? The weightings may be different ,The key factors may be different, The total
weighted score may be different.(3 đáp án)
I
If success for one organizational department means failure for another department , then
strategies may be?inconsistent.
If you discover during the course of strategy evaluation that major changes have occurred in the
firm's internal strategic position, you should? take corrective actions
important part of an external audit. political

___________is not part of an external audit. Analyzing financial ratios
In a fragmented industry E) all of the above
In a Spencer Stuart 2017 survey, women made up ________ percent of new directors appointed
at S&P 500 companies.? 36
In a survey of 50 corporations, which of the following was rated as one of the three top benefits
of strategic management? clearer sense of strategic vision for the firm
In addition to Porter’s Five Forces, another force addded in the text is 
In evaluating strategies, __________, one of Rumelt’s criteria for evaluating strategies, refers to
the need for strategists to examine sets of trends. consonance
In evaluating strategies, which one of Rumelt's criteria for evaluating strategies refers to the
need for strategists to examine sets of trends ? Coherence
In the airline industry, frequent-flyer programs, ticket kiosks, and e-ticketing are all examples of
capabilities that are valuable
In the EFAS Table, the indicator of how well a panicular company is responding to current and
expected factors in its external environment is characterized by the AVIFAS C) total weighted
score
In the final phase of strategic management, strategic information is available to.... people
throughout the organisation
In the important publication used to evaluate a firm's strategy, the Fortune 50 includes all of the
following except? E)the top hospitals
In which type of international industry do corporations tailor their products to the specific needs
of consumers in a particular country? D) multidomestic industry
Industry analysis is primararily concerned with a corporations’s  task enviroment
Ineffectiveness and/or inefficiencies indicate the need for ? some form of correction action.
Ineffectiveness and/or inefficiencies indicate the need for? reductions in pay.
Intel was able to gain a significant cost advantage over its competitors in the production and sale
of microprocessors because of  economies of scale
Internal analysis enables a firm to determine what the firm can do
International financial reporting standards (IFRS) comprise approximately ________ pages? B)

5,000
is the foundation of blue ocean strategyValue Innovation
KAPKAL Power’s interested to achieve a 10 percent return on equity (ROE) in their core
electric
L
Large-scale, future-oriented plans, for interacting with the competitive environment to
List eight current sociocultural trends in the U.S. that are transforming North America and the
world. Answer: Eight current sociocultural trends in the U.S. that are transforming North
American and the world are as follows: Increasing environmental awareness Growing health
consciousness Expanding seniors market Impact of Generation Y boomlet Decline of the mass
market Changing pace and location of Changing household compos Increasing diversity of workf
Long-term objectives should be all of the following except: continually changing
Mintzberg's notion of "crafting" strategies?? suggests that strategic decision making be based
primarily on holistic thinking, intuition, creativity, and imagination
Modern organizational realities demand many skills of employees. Which of the following is
NOT a required skill?Patience
Most organizations can afford to pursue ________ corporate-level strategies at any given time?
A) only a few
Most quantitative criteria are geared to ________ objectives rather than ________ objective?
annual; long - term
Most quantitative criteria are geared to ________ objectives rather than to ________ objectives.?
C) annual; long-term
Most strategy literature advocates that strategic management is? more of a science than an art
Most strategy literature advocates…….. that strategic management is? A) more of a science than
an art.
New entrants to an industry are more likely when (i.e., entry barriers are low when…) product
differentiation in the industry is low
O
Of the following, which one would NOT be considered one of the components of a mission
statement? XYZ shall hire only those individuals who have with sufficient educational levels
so as to be of benefit to our customers
One ground rule necessary for effective brainstorming is B) propose ideas without mentally
screening them.
One of the benefits of globalization is  economies of scale
Only high-priority areas require the insurance of ________ plans? contingency
Organizing means an identifiable group of people contributing their efforts towards the
attainment of same goal. It is important at the time of: Strategy Implementation
In a turbulent and competitive free enterprise environment, a firm will succeed only if it takes
Other software companies could not compete with Microsoft based on the hesitation of
consumers to try a new software. Which of Porter's forces does this reflect?D) bargaining power
of suppliers
Political variables have a significant effect on? Strategy formulation and implementation
Product design, manufacturing, transportation, customer use, packaging, product disposal and
corporate rewards should reflect ________ considerations to develop constructive relations with
employees, consumers, suppliers and distributors? environmental
Product differentiation refers to the belief by customers that a product is unique

Research of the planning practices of companies in the oil industry concludes that the real value
of modern strategic planning is more in the that is part of a future oriented planning process than
in any resulting written strategic plan. strategic thinking and organisational learning
Research suggests that strategic management evolves through four sequential phases in
corporations. The first phase is..... basic financial planning
Research suggests that which of the following is one of the best ways to overcome individuals'
resistance to change in strategy evaluation? A) Participation
S
state, and national basis in all countries in which we do business”. This is a mission statement
that contains: Concern for Public Image
Strategic decisions are based on what managers____ ,rather than on what they_____ . Forecast;
know
“To improve economic strength of society and function as a good corporate citizen on a local,
Strategic decisions ostensibly commit the firm for? A long time, typically five years
Social responsibility is a critical consideration for a company’s strategic decision makers since?
The mission statement must express how the company intends to contribute to the societies that
sustain it
Strategic issues require which level of management decisions?Top

Which of these basic questions should a vision statement answer? What do we want to become?
Strategic management involves The_________ ,directing,_____and controlling of a company’s

strategy-related decisions and actions. Planning; organizing
Strategic management is that set of managerial decisions and actions that determine the long-run
performance of a corporation. Which one of the following is not one of the basic elements of the
strategic management process? statistical process control
Strategic management is? Based on the use of quantitative and qualitative information
Strategic management process activate in the sequence of ______?Environmental scanning,

Strategy
Strategic planning within a small organization... should be a formalised and sophisticated

system
Strategic planning within a small organization.... may be informal and irregular
Strategic-management audit is known as: Environmental scanning

Forecasting tools can be broadly categorized into two groups. Those are: Qualitative,
Quantitative
________ identifies a firm’s major competitors and their particular strengths and weaknesses in
relation to a sample firm’s strategic position. Competitive Profile Matrix
Strategy -evaluation activities should be performed? on a continuous basis.
Strategy evaluation at the _______ level involves using specific performance measures-
qualitative and quantitative-for each functional area? functional
Strategy evaluation is based on? Production quality
Strategy evaluation is becoming __________ with the passage of time. increasingly difficult
Strategy-evaluation activities should be performed? on a continuous basis
Strategy-evaluation activities should ideally be performed? C) on a continuous basis.
Strategy-formulation concepts and tools? Do not differ greatly for differ and type of
organizations
Success today? is no guarantee of success tomorrow
Suppliers are powerful when they offer a credible threat of forward integration
Switching costs refer to the one-time costs customers incur when buying from a different
supplier
T
the ability of a corporation to shift from one dominant strategy to another is called... strategic
flexibility
The ability of an organization to reshape its environment is described by.... the strategic choice
perspective
The ability of competitor to use duplicated resource and capab to imitate the other firm's
successis called? replicability
The acronym SWOT stands for Strengths, Weaknesses, Opportunities, and Threats
The act of oversight and direction for an organization is referred to as? governance
The collective strength of the interaction of potential entrants, buyers, substrates, suppliers, firm
rivalry, and other stakeholders determine  the ultimate profit potential in the industry measured
in serms of long-run return on invested capital
The combination of the degree of complexity and the degree of change ex called?
environmental uncertainty
The competitive moves and business approaches a company's management business approaches
a company's management is using to grow the business, compete sucessfully, attract and please
customers, conduct operation, responds to changing economic and market conditions and achive
organizational objectives is referred to as its? mission
The corporate level is where top management directs overall strategy for the entire
organization
The corporate mission is best described by which one of the following? The purpose or reason
for the corporation's existence.
The corporate mission is best described by which one of the following the purpose of reason
for the corporation existence
The corporation’s task environmentincludes those elements or groups within an organization’s

industry
The corporation's task environment? includes those elements or groups within an

organization's industry.
The development of long-range plans for the effective management of environmental

opportunities and threats in light of corporate stregths and weakness is known as  strategy
formulation
The emphasis of strategic management is on... long-term performance
The environmental segments that comprise the general environment typically will NOT include
substitute products or service
The existence of a performance gap should caue managers to question their objective, strategic
and policies
The first activity in the strategy-evaluation process is to? examine the underlying bases of a
firm's strategy
The fundamental purpose for the existence of any organization is described by its mission
The fundamental purpose of an organization’s mission statement is to define the

organization’s purpose in society
The GAAP standards are comprised of ________ pages. 25,000
The goal of the organization’s is to capture the hearts and minds of employees, challenge them,
and evoke their emotions and dreams vision
The highest amount a firm can charge for its products is most directly affected by the cost of
substitute products
The idea that the positioning of one's ________ can enhance their combined effectiveness is
familiar to military theorists, chess players, and diplomats. resources
The immediate external environment includes ? Competitors
The integrated internationalization of markets and corporations is called.... globalization
The issues priority matrix used enviromental scanning is composes of two axis or dimensions
which are labeled  probability of occurience and probable impact on the corporation.
The mode of strategic decision-making typical of most universities, many large hospitals, a large
number of govermental agencies, and a suprising number of large corporations is adaptive
The mode of strategic formulation used when top management has a reasonably clear idea of the
corporation’s mission and objectives, but choose to develop a series of tentative or partial
strategis instead of developing full-blown strategies is called logical incrementalism
The monitoring, evaluating, and disseminating of information from the external and internal
environments to key people within the corporation is referred to as.... environmental scanning
The mornitoring, evaluation, and disseminating of information from the external and internal
environments to key people within the corporation is referred to as? Environmental Scanning
The most important aspects of a company's business strategy? the actions and moves in the
marketplace that managers take to sam sustainable competitive advantage.
The most widely used forecasting technique used after trend extrapolation is C) scenario-writing
The organization’s corporate mission statement should contain explicit descriptions of their
competitive advantages
The origin of competitive advantage lies in the ability to identify and respond to
environmental change well in advance of competition
The primary focus of strategic management is the total organisation
The process by which strategies and policies are put into action through the development of
program, budgets, and procedures is strategy implementation
The process of performing an external audit needs to include: as many managers and empl
possible.
The purpose of strategy evaluation is to? alert management to problems or potential problems.
The rate at which others can duplicate a firm's underlying resources, capabilities, or core
competencies is called? Imitability
The S in SWOT stands for.....  strengths
The stategic management process is shaped by?  external factors such as the industry's
economic and competitive conditions and internal factors such as the company's collection of
resources and capabilities.
The strategic Management model present the following process for strategy formulation?
Mission -- Objectives -- Strategies -- Policies.
The strategic management model pressents the following process for strategy formulation
mission, objective, strategies and policies
The strategic management process is the full set of commitments, decisions, and actions
required for the firm to achieve above-average returns and strategic competitiveness.
The strategy -evaluation process should foster? mutual understanding.
The T in SWOT stands for...  threats
The task environment... includes those elements or groups within an organizations industry
The task of strategy choice involves developing plans and activities which will improve the
organisation’s performance and competitive position
The term used to describe new products, services, methods, and organizational approaches that
allow businesses to achieve extraordinary returns is.... innovation
The theory that proposes organizations can and do adapt to changing conditions by imitating
other successful organization is known as? Institution Theory
other successful organizations is known as.... institution theory
The three organizational levels are corporate level, business level, functional level
The time horizon involved with regard to basic financial planning is usually..... one year
The triple bottom line refers to which of the following?  traditional profit/loss, social
responsibility and environmental responsibility
The two factors that tend to determine whether an industry will be primarily multidomestic or
primarily global are (1) the pressure for coordination within the MNCs operating in that industry
and (2): markets. A) the pressure for local responsiveness on the part of individual country
markets.
The type of strategy, which achieves coporate and business unit objectives and strategies by
maximizing resource product is  functional
The type of strategy, which describe a company’s overall direction in terms of its general attitude
toward growth and the management of its various business its  corporate
The type of strategy, which emphasizes the improvement of the competitive position of a
corporation’s products or services in a particular industry or market segment served by a
business unit is  business
The U.S. major home app General Electric, and Electro A) that has evolved from an c B) in
which each company maintained a distinct product line. C) that was once fragmented, but now is
consolidated
The variables structure. culture, and resources pertain to the... internal environment
The various organizational routines and processes that determine how efficiently and effectively
the organization transforms its inputs into outputs are called core competencies
The vision and mission statement can often be found in annual reports.
The__________comprises economic and social conditions,political priorities and technological

developments, all of which must be anticipated,monitored, assessed and incorporated into the
executive’s decision making. Societal environment
Those critical strengh and weeknesses that are likely to determine if a firm will be to take
advantage of opportinity while avoiding threats are called? internal strategic factors.
Those variables that can affect significantly the overall competitive positions of companies
within any particular industry are known as? key success factors
within any particular industry are known as D) key success factors
Through market research, corporations are able to practice_with various products or services so
that managers can discover what niches to seek, which new types of products to develop, and
how to ensure that a company's many products do not directly compete with one another?
market segmentation
To succeed in a hypercompetitive industry, companies must be willing to D) cannibalize their

own successful product lines
To succeed in a hypercompetitive industry, companies must be willing toD) cannibalize their

Today, boards of directors are composed mostly of? outsiders.
Top-down planning that emphasizes formal strategy formulation and leaves the implementation
issues to lower management levels is known as.... externally orientated planing
Trend extrapolation is B) the extension of present trends into the future
trends and events”. Which of the followings best describes this statement? Performing an
external audit
Typically how many strategic decision levels are in the corporate decision-making hierarchy? 3
utility, 14 percent ROE on water resource operations, and 15 percent ROE on support
W
What activity is defined as having alternative plans that can be put into effect if certain key
events do not occur as expected? Contingency planning
What aims to balance long term with short term concerns, financial with non -financial concerns,
and internal with external concerns? The Balanced Scorecard approaches
What aims to balance long-term with short-term concerns, financial with nonfinancial concerns,
and internal with external concerns? B) The Balanced Scorecard approach
What are guides to deci making? policies
What are the key enviromental trens that are judged to have a medium to high probability of
occurrence and a medium to high probability of impact on the corporation?  external strategic
factors
What are the means by which long-term objectives will be achieved? Strategies
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?  Strategic
management
What characterizes the planning mode of strategy formulation? definition c
What corrective actions should a firm take during strategy evaluation? Revising the business
mission, B) Revising objectives C) Issuing stock D) Selling a division
What factor determines the final design of a firm's strategy -evaluation and control system?
The organization's characteristics
What has been shown to permit quick response to change, prevent panic in crisis situations, and
make managers more adaptable? C) Contingency plans
What is a set of business units or firms that "pursue similar strategies with similar resources?" A)
strategic group
What is a set of business units or firms that “pursue similar strategies with similar resources"?
strategic group
What is happening to strategy evaluation with the passage of time? ) It is becoming increasingly
difficult
What is meant by the term ‘Stakeholder’? A person who is related with a business
What is not a characteristic of an effective evaluation system?Information - oriented

What is the basis for quantitative financial evaluation? Financial ratios
What is the best type of strategy evaluation? Continuous
What is the best way to overcome individuals' resistance to change in strategy evaluation?
Participation
What is the central purpose of strategic evaluation? Evaluate effectiveness of strategy to achieve
organisational objectives
What is the cornerstone of effective strategy evaluation? Adequate and timely feedback
What occurs when the nature, types and speed of changes overpower an individual's or
organization’s ability and capacity to adapt? Future shock
What permits quick response to change, prevents panic in crisis situations, and makes managers
more adaptable? C) Contingency planning
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"?Auditing
What term refers to a systematic process of objectively obtaining and evaluating evidence
to interested users? E) Auditing
What term refers to the need for strategists to examine sets of trends, as well as individual trends
in evaluating strategies? Coherence
When a company's core competencies are superior to those of competitors, these are known as?
Distinctive Competencies
When an industry relies heavily on government contracts,which forecasts can be the most
When an organization is evaluating its strategic position, which is not one of the strategic
questions that an organization generally may ask itself? are we on target to hit our financial
objectives next year?
When defining strategic management the most important thing to remember is that it is A
living evolving process
When empowered employees are held accountable for and pressured to achieve specific goals
and are given wide latitude in their actions to achieve them, there can be? dysfunctional
behavior.
and are given wide latitude in their actions to achieve them, there can be? dysfunctional behavior
When examining the corporate valae chain of a particular product or service, which one the
following is not one of the primary activities that usually occur? Auditing and accounting
When General Motors considers making its own automotive parts, Delphi Automotive Supply
Company would be concerned with the B) bargaining power of buyers.
When strategic management have a willingness to reject unfamiliar as well as negative

information it is referred to as  strategic myopia
When the pressure for coordination is strong and the pressure for local responsiveness is weak
for multinational corporations within a particular industry, the industry will tend to become A)
global
When the pressure for local responsiveness is strong and the pressure for coordination is weak
for multinational corporations in an industry, the industry will tend to C) multidomestic
When the value chains of two seperate products or sevices share activities, such as the same
market channels, in order to reduce cost, this is an example of? economies of scope
When you discover major changes have occurred in the firm’s internal strategic position while
conducting strategy evaluation, you should? take corrective actions
When you discover major changes have occurred in the firm's internal strategic position while
conducting strategy evaluation, you should? E) take corrective actions.
Which approach to decision-making is most useful when the environment is changing rapidly
and when it is important to build consensus and develop needed resources before committing the
entire corporation to a specific strategy  logical incrementalism
Which barrier to entry do corporations such as P&G use to force new entrants to spend heavily to
overcome existing customer loyalty? product differentiation
Which barrier to entry is demonstrated by Microsoft's MS-DOS operating system?  cost
disadvantages independent of size
Which barrier to entry uses brand indentification to force new entrants to spend heavily to
overcome existing customer loyalty?  product differentiation
Which barrier to entry uses cost advantages associated with large size?  economies of scale
Which barrier to entry uses cost advatages associated with large size? economies of scale
Which board of director's duty falls under the category of control and oversight over
management? C) Select the CEO
Which environment was generally perceived by business people to be something to exploit, not
conserve, until the twentieth century? The natural environment
Which environment was generally perceived by business people to be a given until the 20 th
century? the natural environment
Which individuals are most responsible for the success and failure of an organization? 
Strategists
Which individuals are most responsible for the success and failure of an organization? Strategists
Long-term objectives should be all of the following except? Continually changing.
What are guides to decision making? policies
Which group would be classified as a stakeholder? Employees, Suppliers, Banks, Communities
Which is the following is NOT a major force in the societal environments? labor forces
Which is the largest are group of the current generation in all developed countries? Baby
Boomers
Which is the largest of the current US generations?  Baby boombers
Which of the following a not descriptive of intense rivalry among firms? E) product offerings
that are highly differentiated
Which of the following activities are included in reviewing underlying bases of the strategy
phase of strategy-evaluation framework? Compare planned to actual progress
Which of the following are signs of weakness in a company’s competitive position? A declining
market share, poor product quality and few sales in market
It directs at developing new products before competitor improving product quality or at
improving manufacturing processes to reduce costs.? Research and development
Which of the following defines how each individual business unit will attempt to achieve its
mission? . Business strategy
Which of the following defines what business or businesse the firm is in or should be in?
Corporate strategy
Which of the following focuses on supporting the corporate and business strategies?
Operational strategy
Which of the following is an element of a firm’s remote external environment? Political

agencies
Which of the following is an example of a program? reduce final assembly time to three days
Which of the following is an example of a corporate strategy diversity product line to appeal
to more people
Which of the following is an example of a global industry? C) tires
Which of the following is an example of a policy  75
Which of the following is an example of an objective to increase sales by ten percent over last
year
Which of the following is an example of competing on quick response? a firm’s products are
introduced into the market faster than its competitors
Which of the following is an issue considered in developing corporate strategies? What

resources do we have to implement our strategies?
Which of the following is an issue likely to be addressed by a company's business strategy?

All of these are pertinent in identifying a company's strategy
Which of the following is function of corporate culture? provide a sense of identity, define
boundaries, and generate commitment from members of the organization.
Which of the following is important , because organizations face dynamic environments in

which key external and internal factors often change quickly and dramatically? ) Strategy
evaluation
Which of the following is not a characteristic of strategic management that makes it different
from other types of management? It concerns the present direction of the organization
Which of the following is not a component of the Balanced Scorecar? Social responsibility
Which of the following is NOT a corrective action a company might take to correct unfavorable
variances? Taking punitive action
Which of the following is not a cultural product? Emotions
Which of the following is NOT a guideline for an effective strategic planning process? B) It
should employ International Financial Reporting Standards (IFRS).
Which of the following is NOT a major element of the strategic management process?
Assigning administrative tasks
Which of the following is NOT a major force in the societal enviroment?  labor force
Which of the following is not a major question to ask in thinking stategically aboutindustry and
competitive condition in a given industry? How many companies in the industry have good
track records for revenue growth and profitability?
Which of the following is not a reason for the increasing difficulty of evaluating strategies?
Product life cycles are longer today than ever
Which of the following is no a reason for the increasing difficulty of evaluating strategies?
Product life cycles are longer
Which of the following is not a reason why some firms prefer to conduct strategic planning
in secret? It enhances understanding, commitment and communication within the firm.
Which of the following is not a stage of strategy formulation techniques? Matching stage
ST Strategies is an important strategy to? Overcome external threats
Which of the following is not a support activity of the value chain? marketing and sales
Which of the following is not an advantage of strategic management? It helps improve the
political, economic, social and technological environment of the organisation
Which of the following is not an element of the organization’s task environment?

technological development
Which of the following is not an element of the organization's task environment? 
technological developments
Which of the following is not an entry barrier to an industry? bargaining power of suppliers
Which of the following is NOT descriptive of "threat of substitute products or services?" C)

Identifying substitutes is relatively easy since they look similar
Which of the following is NOT descriptive of a high level of bargaining powers of buyers? A
buyer earns high profits and is very insensitive to costs and service differences.
Which of the following is NOT descriptive of a high level of bargaining power of suppliers? A)
Substitutes are readily available
Which of the following is not descriptive of external environmental scanning? used to identify
major stockholders
Which of the following is NOT descriptive of external environment scanning?  used to

identify major stockholders
Which of the following is NOT descriptive of external environment scanning? used to identify
strengths and weaknesses
Which of the following is not descriptive of intense rivalry among firms? product offerings
Which of the following is NOT descriptive of the "threat of new entrants"?  does not impact
industry attractiveness
Which of the following is not descriptive of the threat of substitute products or services?
Identifying substitutes is relatively easy since they look similar.
Which of the following is not elements of the company's business strategy? Actions to revise
the company's financial and strategic performance targets
Which of the following is not included in measuring organizational performance? Comparing

results to competitors’ expectations
Which of the following is NOT included in measuring organizational performance? Comparing

results to competitors' expectations
Which of the following is not one of the eight sociocultural trends mentioned in the text?
increasing food consumption
Which of the following is not one of the four triggering events listed in the text that is the
stimulus for a strategic change annual strategic planning conference
Which of the following is NOT one of the general strategic types? A) initiators
Which of the following is NOT one of the perspectives from which the Balanced Scorecard
allows firms to evaluate strategies? Social responsibility
Which of the following resources is used by all organizations to achieve desired objectives? .
Financial resources,b. Physical resources,c. Human resources(3 đáp án)
Which of the following statements about contingency plans is not true? Develop contingency
plans for all contingent events.
Which of the following statements about contingency plans is NOT true? D) Strategists should
plan for all possible contingencies.
Which of the follwing is not a part of strategy implementation? performance evaluation
Which of these is a potential problem associated with using only quantitative criteria for
selecting strategies? Different accounting methodsF can provide different results on many
quantitative criteria.
Which of these is not a key financial ratio? Production quality
Which of these is not an activity included in measuring the organizational performance phase of
strategy evaluation? Taking corrective action
Which of these is the cornerstone of effective strategy evaluation? Adequate and timely feedback
Which of these is/are a basic activity of strategy evaluation?Reviewing the underlying internal
and external factors that represent the bases of current strategies,,Measuring organizational
performance,Taking corrective actions (3 cái đúng)
Which one of the following is an example of a mission with a narrow scope computers vs
office equipment
Which one of the following is an example of mission statement? develop and sell quality
appliances worldwide
Which one of the following is at the core of strategic management? Adapting the organisation
to a changing external environment
Which one of the following is includes in the firm task environment?  stockholders
Which one of the following is included in the firm's societal environment? economic forces
Which one of the following is not a primary task of strategic managers? Developing the steps
to follow in implementing operational level plans
Which one of the following is not included in the Porter’s Five Forces modelRivalry among
stockholders
Which one of the following is not part of the process of industry scenariosC) Generate at least 15
scenarios
Which societal force includes demographic trends?  sociocultural forces
Which statement best describes intuition? It should be coupled with analysis in decision-making.
Which strategic orientation is demonstrated by companies that have a limited product line and
focuses on improving the efficiency of their existing operations? E) defenders
Which the the following is not an element of the organization's task environment?
technological developments
Which theory proposes that once an organization is successfully established in a particular

environmental niche, it is unable to adapt to changing conditions? population ecology
Which type of auditors are specifically responsible for safeguarding the assets of a company? C)
Internal auditors
Which type of international industry manufactures and sells the same products with only minor
adjustments made for individual countries around the world?B) global industry
Which type of trend can be exemplified by the increasing numbers of two- income households in
a society? Economic
With regard to the visible or hidden issue, most executives agree that? some strategic
information should remain confidential to top managers
With the passage of time, strategy evaluation is becoming? A) increasingly difficult.

"TQM" refers to => D) Total Quality Management.
Which of the following is NOT one of TQM's objectives? => C) Increased alignment of employee
goals with management's objectives.
"When in Rome, do as the Romans do" reflects which type of moral relativism? => D) cultural
relativism
______ is more valuable because it can provide companies with a sustainable competitive
advantage that is harder for competitors to imitate => A) Tacit knowledge
______ is the impact of a specific change in sales volume on net operating income => D)
Operating leverage
______ suggests that unit production costs decline by some fixed percent each time the total
accumulated volume of production in units doubles => A) The experience curve
________ theory argues that senior executives over time tend to view the corporation as an
extension of themselves. Stewardship
A
A 2011 McKinsey and Company survey found that less than ten percent of a board's time is
spent on current strategy Answer: FALSE
A 2012 survey of 169 CFOs at publicly traded companies in the United States found what
A benefit of the increased disclosure requirements of the Sarbanes-Oxley Act has been more
reliable corporate financial statements. Answer: TRUE
A budget is a statement of a corporation's programs in dollar terms. Which is NOT true of the
budgetary function? Only one budget is necessary to capture all programs.
A budget is a statement of a corporation's programs in terms of dollars. Answer: TRUE
A business strategy may include competitive or cooperative strategies. Answer: FALSE
A candidate for a fourth stage in corporate development ismatrix structure.
A careless director or directors can be held personally liable for harm done to the corporation if
they failed to act with  due care.
A car's cruise control, known as a "bell and whistle" is an example of which of the eight
dimensions of quality? => B) features
A checklist of questions, by area or issue that enables a systematic analysis to be made of

various corporate functions and activities is referred to as a(n) strategic audit
A code of conduct that regulates supplier conduct => C) is recommended if the company
outsources manufacturing to a company in another country.
A code of ethics is important to clarify company expectations of employee conduct in various

situations and to => B) make it clear that the company expects its people to recognize the
ethical dimensions in decision and actions.
A company may use which of the following trade promotions to "push" their products through
the distribution system? =>brand advertising
A company or an industry whose product works well with a firm's product and without which
the product would lose much of its value is considered to be a(n) => A) complementor.
stable and the other one is variable, reflects which strategic orientation? => C) analyzers
A company which enters into a spirited battle for market share by cutting prices and offering
special deals would be an example of which strategy to avoid? => arms race
A company which has invested so heavily in a particular strategy that it will not consider a
change in this strategy even if it is not successful, would be an example of which strategy to
avoid? =>losing hand
A company which has previously found great success pioneering an extremely successful
product that is presently trying to turn another "long-shot" into a likely success would be an
example of which strategy to avoid? => hit another home run
A company which keeps up by imitating a leading company's strategy while ignoring its own
strengths and weaknesses is an example of which strategy to avoid? =>follow the leader
A company which pioneers an innovation is called a(n)=>

technological leader. =>A company which imitates the
products of competitors is referred to as a(n) A)
technological follower.
A company with significant assets and activities in multiple countries is known as a(n)
________. => A) multinational corporation
A corporate strategy that cuts across divisional boundaries to build synergy across business
A corporation run by a team of managers with functional specializations and which

successfully operates in one industry is said to be aStage II company.
A corporation's ability to exploit its resources is referred to as its A) business expertise. => B)
capabilities.
A corporation's specific competitive role which is so well-suited to the firm's internal and
external environment that other corporations are NOT likely to challenge or dislodge it => A)
propitious niche
A description of what the company is capable of becoming is referred to as strategic vision
A difference between basic financial planning and forecast-based planning is B) forecast-
based planning incorporates internal and external information.
A direct interlocking directorate occurs when two corporations have directors who also serve on
the board of a third firm.  Answer: FALSE
A disadvantage of vertical integration is that

it=>creates exit barriers.
A firm's expansion into other geographic locations and/or increasing the range of products
and services offered to current markets is called =>horizontal growth.
A flexible manufacturing system is defined by the text as=> C)

the grouping of parts into manufacturing families to produce a
wide variety of mass-produced items.
A forecasting technique using quantitative measures that attempt to discover causal or at least
explanatory factors that link two or more time series together is called => B) statistical
modeling.
A formal program of gathering information on a company's competitors is referred to as => B)

competitive intelligence.
A friend of yours was asked to evaluate the effect of an advertising campaign designed to get
people to have their blood pressure checked. After examining the records kept by the blood
pressure units in the target area, your friend showed you the following graph, where X indicates an
observation. What comment will you make to your friend about the advertising campaign? More
observations are needed to determine whether the independent variable is having the intended
effect.
A goal differs from an objective because it is open-ended
A graph showing time plotted against the dollar sales of a product as it moves from introduction
through growth and maturity to decline is called the => B) product life cycle.
A hierarchy of strategy emphasizes the need for the three levels of strategy to complement and
support one another. Answer: TRUE
A highly developed international company with a deep involvement throughout the world,
plus a worldwide perspective in its management and decision making is called a(n)
multinational corporation.
A highly involved board does all of the following EXCEPT  manage the everyday operations
of the organization
A large, multidivisional business has three levels in its hierarchy of strategyCorporate --

Business -- Functional
A lead director creates a balance of power when the CEO is also Chair of the Board.
A linked set of value-creating activities beginning with basic materials provided by suppliers
and ending with distributors getting the final product into the hands of the ultimate consumer is
called a => A) value chain.
A method developed in the mid-1990s as an efficient means to quickly consolidate a fragmented

industry can be referred to as a(n) => B) strategic rollup.
A minority percentage of large corporations in the Americas and Europe may keep the firm's
recently retired CEO on the board after retirement since there is a greater likelihood of a conflict
of interest and less objectivity.  Answer: TRUE
A nation whose people want career stability, formal rules, and clear-cut measures of performance
would score high on which of Hofstede's cultural dimensions? => A) uncertainty avoidance
A new approach to evaluating alternatives under conditions of high environmental

uncertainty that proposes it pays to have a broad range of options open is the =>real
options approach.
A non-quantitative approach to forecasting that requires simply the presence of people with
some knowledge of the situation to be predicted is called => D) brainstorming.
A popular financial strategy in which a company is acquired in a transaction financed largely by

debt eventually paid off with money generated from the acquired company's operations or by
sale of its assets is => the leveraged buyout.
A problem with the utilitarian approach is => E) that it is difficult to recognize all the benefits
and costs of any particular decision.
A program isA statement of the activities needed to accomplish a single-use plan
A recent trend in information systems strategy is=>

practicing follow-the-sun management.
A relationship that illustrates the term complementor is => A) Microsoft and Intel.
A staggered board  has only a portion of the board stand for election each year.
A strategic decision is rare, consequential, and directive. Answer: TRUE
A strategy maximizes competitive advantage and minimizes competitive disadvantage. Answer:

TRUE
A study by Korn/Ferry found that ________ of U.S. boards of directors had at least one ethnic
minority member in 2007  78%
A study of 30 firms revealed that outsourcing can lead to a ________ percent reduction in
costs. => 9
the most widely practiced form of forecasting? => E) trend extrapolation
concerned about the => C) threat of substitute products.
A survey of 93 Fortune 500 firms found ten major problems that over half of the group
experienced when they attempted to implement a strategic change. Which of the following
is NOT one of the implementation problems? Time allocated for implementation was
adequate, but was used inappropriately.
A survey of directors of U.S. corporations found that the main reason individuals serve on a
board is for the compensation. Answer: FALSE
A table which summarizes the key success factors within a particular industry is called a(n) =>
E) industry matrix.
A tactic is defined by the text as => A) a specific operating plan specifying how a strategy is to
be implemented in terms of when and where it is to be put into action.
A winemaker in California finds it difficult to duplicate a French winery's key resources of land
and climate. This is an example of => A) transferability.
According to ________ theory, ________ directors tend to identify with the corporation and its
success. stewardship; inside
According to a 2011 National Business Ethics survey, what percent of respondents who
According to a 2011 survey by the Ethics Resource Center, which was not cited as one of the
most common questionable behaviors that employees engage in? => A) cutting corners on
quality
According to a 2013 survey by the Ethics Resource Center, which of the following was cited as
a significant positive trend? => A) The percentage of firms providing ethical training rose to an
all-time high of 81%.
According to a study of downsizing in the automobile-related industry, which one of the following
is NOT a problem associated with inappropriate downsizing? => A) Produced long-term benefits.
According to a survey of 156 large corporations, in what percentage of the firms were strategies
first proposed in business units and then sent to headquarters for approval? 66%
According to Alfred Chandler A) high-tech industries are defined by "paths of learning." B)

companies spring from an individual entrepreneur's knowledge, which then evolves into
organizational knowledge. C) once a corporation has built its learning base to the point where it
has become a core company in its industry, entrepreneurial start-ups are rarely able to
successfully enter. D) organizational knowledge can become a competitive advantage. E) All of
the above
According to an American Management Association survey, the most heavily outsourced

activities were =>general and administrative.
According to Archie Carroll, the responsibilities defined by government in laws for
According to Archie Carroll, the responsibilities that management of a business organization

assumes which are purely voluntary obligations are => E) discretionary responsibilities.
According to Archie Carroll, the responsibility that management of a business organization
According to Barney's VRIO framework, the firm's exploitation of a competency pertains to =>
D) organization.
According to Campbell, Goold, and Alexander in their parenting-fit matrix, when parent
companies create more value than any of their rivals would if they owned the same businesses,
they have =>parenting advantage.
According to Cavanagh, using the ________ criterion, to determine if padding an expense

account is ethical or not, one would ask if it optimizes the satisfactions of all stakeholders. =>
B) utility
According to Chandler and others, which factors MUST be closely aligned or else face the
consequences of poor organizational performance? strategy, structure, and environment
According to Goold and Campbell, when combined units benefit from sharing knowledge or
skills, the synergistic effect is known as shared know-how.
According to Goold and Campbell, when companies coordinate the flow of products or
services of one unit with that of another unit which can reduce inventory, the synergistic effect
is known aseconomies of scale or scope.
According to Goold and Campbell, which of the following is NOT one of the forms that
synergy can take? value chain creation
According to Henry Mintzberg, the three most typical approaches to strategic decision-
making are entrepreneurial, adaptive, and planning.
According to Hofstede, which cultural dimension describes the extent to which a society accepts
an unequal distribution of power in organizations? => D) power distance
According to Hofstede, which cultural dimension describes the extent to which a society values
individual freedom and independence of action compared with a tight social framework and
loyalty to the group? => C) individualism-collectivism
According to Hofstede, which cultural dimension describes the extent to which society is oriented
toward money and things or towards people? => B) masculinity-femininity
According to Hofstede, which cultural dimension describes the extent to which a society
emphasizes the importance of hard work, education, and persistence as well as the importance of
thrift? => E) long-term orientation
According to Hofstede's cultural dimensions, which country scored the highest on individualism?
=> D) United States
According to Hofstede's cultural dimensions, which country scored lowest on power distance? =>
C) Germany
According to Hofstede's cultural dimensions, which country scored lowest on uncertainty

avoidance? => D) United States
According to Kohlberg, the first level of moral development, characterized by concern for self,
is called => D) pre-conventional.
According to Kohlberg, the second level of moral development, characterized by considerations

of society's laws and norms, is called => C) conventional.
According to Kohlberg, the third level of moral development, characterized by a person's
According to Kohlberg, what stage of moral development do the vast majority of people in the
United States occupy? => B) conventional stage
According to Mintzberg, the entrepreneurial mode of strategy formulation is focused on
opportunities seen by one person.
According to organizational learning theory, an organization uses knowledge to improve the fit
between itself and its environment. Answer: TRUE
According to Porter, a business unit in a competitive marketplace with no generic competitive

strategy is => C) stuck in the middle.
According to Porter, strategies to raise structural barriers include all of the following EXCEPT
=> C) decrease scale economies.
According to Porter, the competitive strategy that reflects the ability of the corporation or its
business unit to design, produce, and market a comparable product more efficiently than its
competitors is called => E) lower cost.
According to Porter, the competitive strategy that reflects the ability to provide unique and
superior value to the buyer in terms of product quality, special features, or after-sale service is
called => B) differentiation.
According to Porter, the corporation is most concerned with => A) the intensity of competition
within its industry.
According to Porter, the term that applies to the breadth of a company's or business unit's target
market is called => A) competitive scope.
According to Porter, to achieve a cost advantage by following the functional strategy of

technological followership, a business unit should =>avoid R&D costs through imitation.
According to Porter, to achieve a differentiation competitive strategy by following the
According to Porter's model, a low force can enable the company to earn greater profits and can
be regarded as a(n) => B) opportunity.
According to Porter's model, a strong or high force is likely to reduce profits and can be
regarded as a(n) => D) threat.
According to the BCG Growth Share Matrix, those products with low market share that do
NOT have the potential to bring in much cash are called => dogs.
According to the BCG Growth-Share Matrix, market leaders that typically are at the peak of
their product life cycle and are usually able to generate enough cash to maintain their high share
of the market are called =>stars.
According to the BCG Growth-Share Matrix, the key to success is=>

market share.
According to the job characteristics model, how might a manager redesign work to increase
task variety and enable workers to identify with what they are doing? combine tasks
According to the job characteristics model, how might a manager redesign work to give
workers increased authority and responsibility over their activities? vertically load the
job
According to the job characteristics model, how might a manager redesign work to
encourage workers to know what performance is required and why? establish
client relationships
According to the job characteristics model, how might a manager redesign work to provide
workers information on how they are performing? open feedback channels
According to the job characteristics model, how might a manager redesign work to make
workers more responsible and accountable for the performance of the job? form natural
work units
According to the research, in turbulent environments, the best type of planning is top-down
strategic planning
According to the text, 75% of a company's market value is derived from its=>
intangible assets.
According to the text, a complete package for an executive working in another country costs => E)
$300,000 to $1 million annually
According to the text, assessment centers have been able to accurately predict subsequent => B)
job performance and career success
According to the text, most publicly owned large corporations today tend to have boards with
what degree of involvement in the strategic management process?  nominal to active
According to the text, one of the primary responsibilities of top management in strategic
management is  providing executive leadership.
According to the text, one reason environmental uncertainty is a threat to strategic managers is
because => D) it hampers their ability to develop long-range plans.
According to the text, the primary task of the operations manager is to => B) develop and
operate a system that will produce the required number of products or services with a certain
quality, at a given cost, within an allotted time.
According to the text, the process of replacing a key top manager is called => A) executive
succession.
According to the text, the strength of each of the six driving forces of industry competition
varies according to the => B) stage of industry evolution.
According to the text, unanimous agreement is not the best way to determine the merits of a
proposed alternative strategy. To avoid this consensus trap, which technique assigns a group
or individual to identify potential pitfalls and problems with a proposed alternative strategy in
a formal presentation?=> A) devil's advocate
According to the text, unanimous agreement is NOT the best way to determine the merits of a
proposed alternative strategy. To avoid this consensus trap, which technique involves
presenting two conflicting views (the thesis and the antithesis) presented in a debate format?
=> dialectical inquiry
According to the text, unique market opportunities that are available for only a particular time
are called => D) strategic windows.
According to the text, what is the "key" to effective management of change in culture? => E)
communication
According to the text, which of the following is not a typical standing committee of boards of
directors? public relations committee
According to the text, which one of the following is not descriptive of a corporation's culture?
=> B) Corporate cultures are only temporary and can be easily changed.
According to the text, which one of the following is NOT one of the dangers of using primarily
foreign nationals to staff managerial positions in subsidiaries? => D) Promotes anger and jealousy
within the nationalistic host government.
According to the text, which one of the following is NOT one of the reasons why innovations
seem to occur more often in small firms rather than in large, established corporations? =>Small
firms are completely ignorant of risk management.
According to the utilitarian approach, CEOs give priority to the stakeholders who have the most
=> C) power, legitimacy, and urgency.
According to the utilitarian approach, stakeholders who have a legal or moral claim on company
resources have => B) legitimacy.
Action plans are important for several reasons. Which one of the following is NOT one of these
reasons? => A) If the action plan is implemented properly, it ensures that the strategy will be a
success.
Adding a related or complementary product to a corporation's business units is called A)

concentration. =>concentric diversification.
adherence to an internal moral code, is called => A) principled.
Agency theory suggests that the majority of a board needs to be from outside the firm. 
Answer: TRUE
Alfred Chandler, known for his study of large American corporations, concluded thatstructure
follows strategy.
All of the following are benefits for a company to raising its debt levels EXCEPT=>
increase in shareholder value.
All of the following are changing structural characteristics found in the modern organization
design EXCEPTcentralized top-down decision making. Answer: E
All of the following are changing structural characteristics typically found in the "old
organization design" EXCEPTcross-functional work teams. Answer: E
All of the following are considered primary stakeholders EXCEPT => B) governments.
All of the following are considered secondary stakeholders EXCEPT => B) suppliers.
All of the following are one of the four types of moral relativism EXCEPT => C) principled
relativism.
many industries EXCEPT => A) growing health consciousness.
All of the following are true of overconfident CEOs EXCEPT  overconfident CEOs were less
likely to make an acquisition when they could avoid selling new stock to finance them.
All of the following are true of the dual chair/CEO position EXCEPTfirms with a dual
chair/CEO role have significantly better stock performance.
All of the following reasons provide rationale for unethical behavior EXCEPT => D) agreement
among stakeholders and business people that unethical behavior is acceptable.
All of the following reflect activities of a learning organization EXCEPT  alienating

All of the following reflect categories of organizational risk as a result of climate change
EXCEPT sustainability risk.
All of the following reflect characteristics of a successful integration manager EXCEPT => D) an
ability to hire like-minded people.
All of the following reflect criticisms of the SWOT analysis EXCEPT => C) provides a rational
link to strategy implementation.
All of the following reflect survey findings of the reasons for which individuals serve on a
board EXCEPT willing to always agree with executive decisions.
Amazon.com, founded by Jeff Bezos and reflecting his vision, is an example of which mode of
strategic decision-making? entrepreneurial
An acronym for the assessment of the external and internal environments of the business
corporation in the process of strategy formulation/strategic planning is => C) S.W.O.T.
An agency problem can occur when  the desires and objectives of the owners and agents
conflict
An attempt to explain that vertical integration is more efficient than contracting for goods and
services in the marketplace when the transaction costs of buying goods on the open market
becomes too great has been proposed by =>transaction cost economics.
An automobile assembly line is an example of which approach to manufacturing? => A)

continuous system
An example of an objective is "increased profitability," while an example of a goal is "to

increase the firm's profitability in 2010 by 15% over 2009." Answer: FALSE
An example of the promotion variable of the marketing mix is => A) advertising.
An external block preventing a corporation from moving from one stage to another
isunfavorable economic conditions.
An industry dominated by a few large firms, all of which struggle with product differentiation,
is known as => B) consolidated.
An MNC uses which international strategy for entering a foreign market by simply shipping
goods produced in the company's home country to other countries for marketing to minimize
risk and to experiment with a specific product? =>exporting
An MNC uses which international strategy for entering a foreign market by associating itself
with a firm in the host country or a government agency in that country to combine resources and
expertise needed for the development of a new product or technologies? =>joint ventures
An MNC uses which international strategy for entering a foreign market by purchasing another
company already operating in the area developing synergistic benefits gained from acquiring
strong complementary product lines and a good distribution network? =>acquisitions
An MNC uses which international strategy for entering a foreign market by combining the
higher labor skills and technology available in the developed countries with the lower cost labor
available in the developing countries? =>production sharing
behavior to reflect new knowledge and insights is a(n) learning organization
An organization which is composed of cells that can operate alone but that can interact with
other cells to produce a more potent and competent business mechanism is referred to as
a(n)modular organization.
An overarching strategy that explicitly communicates the firm's ethical relationship with its
stakeholders is => A) an enterprise strategy.
Approximately what percent of manufacturing companies have implemented some form of quality
management practices. => A) 92
Archie Carroll's four responsibilities listed in order of priority are => C) economic, legal,
ethical, and discretionary.
As a part of the strategic management process, evaluation and control is concerned with all of
the following, EXCEPT determining top management compensation
As an industry becomes hypercompetitive, firms initially respond by => D) competing on cost

and quality.
As an industry matures while overcoming fragmentation and becomes dominated by a small

number of large companies, it tends to become a(n) => C) consolidated industry.
As compared to a firm with low financial leverage, a firm with a high amount of financial
leverage in an expanding market should have => C) higher earnings per share. Answer: C
As defined by the text, synergy is the concept =>that two firms can generate more profits
together than separately.
As defined in this course, a policy is  a broad guideline for making decisions that links the
formulation of strategy with its implementation
As it relates to operations, AMT stands for

=>Advanced Manufacturing Technology.
As more industries become global, strategic management is becoming less important in

positioning a company for long-term competitive advantage Answer: FALSE
As opposed to rule-based countries, relationship-based countries tend to => D) be less

transparent and have a higher degree of corruption.
As societal values evolve, it is likely that the ________ responsibilities of today may become
the ________ responsibilities to tomorrow. => C) discretionary; ethical
Avon is an example of a company that demonstrated having a diverse workforce=>

A) can be a competitive advantage.
B
Becky was hired to determine what types of recreational programs teenagers want and would use
in the city of Edmonton, Alberta. What type of study was Becky hired to conduct? needs
assessment study
Being socially responsible => B) has opened doors in local communities.
bending the rules to attain their objectives? => A) organizational performance required it
Benjamin is conducting a program evaluation of a new juvenile deterrence program for first-time
offenders. Early indicators delivered to the program coordinator, Captain Smith, are not good –
they indicate that the program is having a negative effect on offending. The Captain, upon hearing
this, wants to prevent a negative evaluation and thus extremely limits Benjamin’s access to data.
What type of problem is this? administrative control
Blindly following orders reflects which type of moral relativism? => B) role relativism
Board members who are not employed by the corporation, but handle the legal or insurance
needs of the firm and are thus not true "outsiders," are what kind of directors?  affiliated
directors
Briefly describe the four basic elements of strategic management.  Strategic management
consists of four basic elements. Environmental scanning is the monitoring, evaluating, and
disseminating of information from the external and internal environments to key people within
the corporation. Strategy formulation is the development of long-range plans for effective
management of environmental opportunities and threats, in light of corporate strengths and
weaknesses. Strategy implementation is the process by which strategies and policies are put into
action through the development of programs, budgets, and procedures. Evaluation and control
is the process in which corporate activities and performance results are monitored so that actual
performance can be compared with desired performance.
Business strategy focuses on => B) improving the competitive position of a corporation's

products or services within the industry or market segment served.
Business strategy is composed of => C) competitive and cooperative strategy

By 2012, 56% of the S&P 500 boards had split the role of chairperson and CEO. Answer:
TRUE
C
Canada, the United States, and Mexico are affiliated economically under which trade alliance?
NAFTA
Catalyst-level boards of directors typically  take leading roles in establishing and modifying
the company mission, objectives, and strategy
Climate change has become a growing concern for businesses to include in their corporate
strategies. Answer: TRUE
Codetermination  is the inclusion of a corporation's employees on its board.
Codetermination has been used in Germany since the 1950s, but has not been used in the United
States. Answer: FALSE
combinations of consumer paper products, they are said to be engaging

in=> multipoint competition.
opportunities, reflect which strategic orientation? => D) prospectors
Continuous improvement is an operations concept developed in=>

Japan.
Contrast agency theory and stewardship theory.  Answer: Agency theory states that problems
arise in corporations because the agents (top management) are not willing to bear responsibility
for their decisions unless they own a substantial amount of stock in the corporation. The theory
suggests that a majority of a board needs to be from outside the firm so that top management is
prevented from acting selfishly to the detriment of the shareholders. Stewardship theory
proposed that, because of their long tenure with the corporation, insiders (senior executives)
tend to identify with the corporation and its success. Rather than use the firm for their own ends,
these executives are thus most interested in guaranteeing the continued life and success of the
corporation.
Corporate parenting generates corporate strategy by focusing on =>the core competencies of the
parent corporation and on the value created from the relationshipbetween the parent and its
units.
Corporate strategy occurs at the business unit or product level. Answer: FALSE
Corporations that lack a consistent strategy-structure-culture relationship reflect which

Cultural backgrounds affect strategic choices. Korean executives emphasize ________ in their
decisions; whereas U.S. executives emphasize ________. =>Industry attractiveness, sales and
market share; projected demand, discounted cash flow, and
D
Define globalization and identify the role of strategic management in globalization.
Globalization is the internationalization of markets and corporations. It has changed the way
that modern corporations do business. As more industries become global, strategic management
is becoming an increasingly important way to keep track of international developments and
position the company for long-term competitive advantage.
Downsizing is often used to implement a(n) ________ strategy. => A) retrenchment
During Stage II of the organizational life cycle, the structure most likely to be implemented
isfunctional management.
During Stage V of the organizational life cycle, the popular strategy isliquidation or
bankruptcy.
E
Economist Milton Friedman has argued that a business's only responsibility is to => A)
maximize profits and stay within the rules of the game.
Employees who report illegal or unethical behavior on the part of others are known as => B)
whistleblowers.
Environmental sustainability reflects business practices to reduce a firm's impact on the physical
environment  Answer: TRUE
Ethics is defined as => C) consensually accepted standards of behavior for an occupation, trade,
or profession.
Executive leadership is the directing of activities toward the accomplishment of corporate

objectives. Answer: TRUE
Executives with a particular mix of skills and experiences may be classified as an executive type
and paired with => B) a specific corporate strategy
Explain the continuum of board involvement.  Answer: The board of directors' continuum
reflects the degree of involvement (from high to low) in the strategic management process.
Boards can range from phantom boards with no real involvement to catalyst boards with a very
high degree of involvement. Passive phantom or rubber stamp boards typically never initiate or
determine strategy unless a crisis occurs.
Explain the difference between a direct and indirect interlocking directorate. Answer: A
direct interlocking directorate occurs when two firms share a director or when an executive of
one firm sits on the board of a second firm. An indirect interlock occurs when two corporations
have directors who also serve on the board of a third firm.
Explain the impact of the Sarbanes-Oxley Act on corporate governance.  Answer: In response
to the many scandals uncovered since 2000, the U.S. Congress passed the Sarbanes-Oxley Act
(SOX) in June 2002. This act was designed to protect shareholders from the excesses and failed
oversight that characterized failures at Enron, Tyco, WorldCom, Adelphia Communications,
Qwest, and Global Crossing, among other prominent firms. Several key elements of Sarbanes-
Oxley were designed to formalize greater board independence and oversight. For example, the
act required that all directors serving on the audit committees be independent of the firm and
receive no fees other than for services as a director. Additionally, boards may no longer grant
loans to corporate officers. The act also established formal procedures for individuals to report
incidents of questionable accounting or auditing. Firms are prohibited from retaliating against
anyone reporting wrong doing. Both the CEO and CFO must certify the corporation's financial
information. The act banned auditors from providing both external and internal audit services to
the same company. The bill also required that firms identify whether they have a "financial
expert" serving on the audit committee, which is independent from management.
F
FedEx stipulates specific employee behavior including how a driver dresses to how keys are
held when approaching a customer's door. This is an example of a  procedure
FedEx's application of information technology to all its operations is an example of => C) core
competencies.
Flexible manufacturing emphasizes => D) economies of scope over economies of scale.
For each $1 spent on training, Motorola estimates it receives ________ in productivity gains
within three years. => D) $30
For many large corporations the typical strategic planning staff has just fewer than how many
people?-->10
For the last 20 years, Marcia has been tracking the divorce and marriage rates in Canada. What
type of research is Marcia conducting? monitoring study
Ford Motor Company's use of company resources to build its River Rouge Plant outside of
Detroit so that iron ore could enter into one end of the plant and a finished automobile could
exit out of the other end is called =>A) vertical growth.
Former Enron Vice-President Sherron Watkins used the ________ analogy to explain why
executives at Enron engaged in unethical and illegal actions. => D) frogs in boiling water
From the perspective of the public, the primary job of the board of directors is to closely
monitor the actions of management.
functional strategy of technological leadership a business unit

should=> innovate in other activities to increase buyer value.
G
General Electric led the transition from strategic planning to strategic management during the
1980s--> Answer: TRUE
Generally, the smaller the corporation, the less active is its board of directors. Answer: TRUE
Globalization is the internationalization of markets and corporations. Answer: TRUE
Growth through diversification out of an industry into an unrelated industry is called A)

concentration. =>conglomerate diversification.
Gwyneth, an advocate of sexual reform, knows (from research studies) that condoms can prevent
sexually transmitted diseases as well as pregnancy. She decides to educate first-year students at her
university about the advantages of using condoms through a short film depicting various
characters. Some of the characters portray traditional mindsets (refusing to wear condoms); some
portray the more liberal mindsets (proponents of condoms); and some are transitional characters
whose attitudes move from traditional to more liberal with respect to condom use. Gwyneth plans
on recording the rates of pregnancy/STDs for the first-year students at her university before and
after the educational short film. She also plans to compare her results with those of first-year
students at a different university with similar demographics who do not watch the educational short
film. What is the experimental design that Gwyneth chose to use? multiple time-series design
has to produce goods and services of value to society so that the firm may repay its creditors
and stockholders is called => C) economic responsibilities.
Henry Mintzberg discovered that strategic formulation is a regular, continuous process. Answer:
FALSE
Hofstede's work on national culture was extended to nine cultural dimensions by => B) Project
GLOBE.
How does job rotation combat the adverse consequences of task specialization? By moving
workers through several jobs, thereby exposing them to increased variety.
Human resource departments have found that to reduce employee dissatisfaction and
unionization efforts, they must => E) consider the quality of work life in the design of jobs.
I
IBM under CEO Louis Gerstner and his strategic decision to invest in services in 1993, is an
example of which mode of strategic decision-making?  planning
If a company wishes to be a technological follower and also pursue a differentiation strategy,

the appropriate R&D strategy would be to => adapt the product or delivery system more closely
to buyer needs by learning from the leader's experience.
If a company wishes to be a technological leader and also maintain a cost advantage, the
appropriate R&D strategy would be to => create low-cost ways of performing value
activities.
If a planned strategy is not compatible with the company's current culture, and management is not
willing to make major organizational changes required to manage around the culture, what should
the organization do? => A) Find a joint-venture partner or contract with another company to carry
out the strategy
If a planned strategy is NOT compatible with the current culture, but the culture can be easily
modified to make it more compatible with the new strategy, what should the organization do? =>
C) Move forward very carefully by introducing a set of culture-changing activities.
If it is to be successful, Porter advises that a division possess strong marketing abilities, product
engineering, a creative flair, strong capability in basic research and a corporate reputation for
quality or technological leadership, for which one of the following generic competitive
strategies? => B) differentiation
If there is little fit between a strategic alternative under consideration and the corporate
culture, which of the following is one of the considerations that must be taken into account?
(Take a chance on ignoring the culture by implementing the strategic alternative;Manage
around the culture and change the implementation plan; Try to change the culture to fit the
strategy; Change the strategy to fit the culture.) =>All of the above.
In 2011, the Ethics Resource Center found that ________ percent of employees surveyed had
witnessed misconduct at work and ________ percent had reported it. => D) 45; 65
In a fragmented industry => E) all of the above.

In a process called ______, the once-isolated specialists now work side-by-side and compare
notes constantly in an effort to design cost-effective products with features customers want =>
D) concurrent engineering
In a study that examined whether using mediation in divorces resulted in “fairer” settlements, what
is the intervention? the use of mediation
In a survey of 50 corporations, which of the following was rated as a benefits of strategic

management? clearer sense of vision for the firm
In a TOWS Matrix, SO Strategies => A) are generated by thinking of ways in which a company
or business unit could use its strengths to take advantage of opportunities.
In a TOWS Matrix, ST Strategies => D) consider a company's or unit's strengths as a way to

avoid threats.
In a TOWS Matrix, WT Strategies => C) are basically defensive and primarily act to minimize
weaknesses and avoid threats.
In addition to Porter's Five Forces, another force added in the text is => B) other stakeholders.
In Christensen's book, The Innovator's Dilemma, he explains that established market leaders are
typically reluctant to move in a timely manner to a new technology. This reluctance to switch
technologies is because the resource allocation process in most companies gives priority to
those projects with the greatest likelihood of generating a => A) good return of investment.
In his book, Global Competitive Strategy, Spulber identified which of the following as a
force pushing for standardizationlocal regulatory requirements
In implementing the Sarbanes-Oxley Act, the SEC required in 2003 that a company disclose 
if it has adopted a code of ethics that applied to the CEO and the CFO.
In international dealings, green-field development is=>when a corporation chooses to build a

facility from scratch allowing it the freedom to design the plant, choose suppliers, and hire its
work force.
In international dealings, turnkey operations are =>E) contracting for construction of operating
facilities in exchange for a fee.
In many cases, ________ integration is more profitable than ________ integration.=>

backward; forward
In order for a business to be sustainable, it must satisfy which of Carroll's responsibilities? =>
E) all of the above
In order to move more quickly through a product's development stage and have people from
each discipline get involved in projects early on, companies are using => B) cross-functional
work teams.
In support of whistle-blowers, the U.S. False Claims Act gives whistle-blowers what
In the Boston Consulting Group's Growth-Share Matrix, the relative competitive position of a
product, division, or corporation is defined as => its market share divided by that of the largest
other competitor.
In the development of a SFAS matrix, the first step is to => C) list the most important EFAS
and IFAS items.
In the EFAS Table, the indicator of how well a particular company is responding to current and
expected factors in its external environment is characterized by the => C) total weighted score.
In the externally oriented planning phase, plans are developed by heavily involving the input of
managers from lower levels  Answer: FALSE
In the final phase of strategic management, strategic information is available to people

throughout the organization.
In which strategy does management hope that another company will have the necessary
resources and determination to return the company to profitability? =>sell out
of consumers in a particular country? => D) multidomestic industry
Individuals such as Phil Knight at Nike and Steve Jobs at Apple who energized their companies
and provided change and movement by providing a vision for that change are known as 
transformational leaders.
Industry analysis is primarily concerned with a corporation's => B) task environment.
Intel was able to gain a significant cost advantage over its competitors in the production and
sale of microprocessors because of => D) economies of scale.
Interlocking directorates are a useful method for gaining both inside information about an
uncertain environment and objective expertise about potential strategies and tactics. They are,
however, increasingly frowned upon because of the possibility of collusion. Answer: TRUE
Issues in affirmative action such as reverse discrimination are examples of conflicts between =>
C) distributive and compensatory justice.
It is advisable to have management from all levels participate in the strategy formulation
procesto gain an insight as to what work needs to be done and to gain cooperation in the
implementation of the strategy.
Jake examined the impact of a new street lighting program on crime in seven neighbourhoods. He
measured crime rates at one-month intervals for six months before the new street lights were
erected and for six months after. Which design did he use? time series
Jeff Bezos, CEO of Amazon.com, uses the S team (senior management) to engage in continuous
strategic planning. Answer: TRUE
Joshua conducted a survey of domestic violence incidents in Canada, and then administered the
survey again every two years for a decade to see if things have improved for those involved. What
type of research did Joshua conduct? a monitoring study
K
Knowing a company is mindful of its impact on the environment seldom changes consumer
buying habits.  Answer: FALSE
Knowledge that can be easily articulated and communicated is known as A) tacit knowledge =>
B) explicit knowledge.
Knowledge that is not easily communicated because it is deeply rooted in employee experience
or in a corporation's culture is called => A) tacit knowledge.
Korn/Ferry International reported that amongst the 100 largest companies listed in 2011
________ of boards of directors had at least one female director 96%
L
Law is defined as => A) formal codes that permit or forbid certain behaviors and may or may
not enforce ethics or
Leveraged buyouts are also referred to as =>

management buyouts.
Logical incrementalism is a useful decision-making mode when the environment is rapidly

changing and when it is important to build consensus. Answer: TRUE
M
Management contracts are used in international dealings =>when an MNC has a large amount
of management talent available and chooses to use its personnel to assist a firm in a host country
for a specified fee and period of time.
management to obey are => A) legal responsibilities.
Managers who want to improve ethical behavior should take actions such as => E) all of the
above
Many companies have found that outsourcing logistics=>

reduces costs and improves delivery time.
Melissa wanted to compare the provinces and territories on various aggregated statistics that reflect
the social conditions in those provinces and territories so that she could make regional
comparisons. Which design should she use? social indicators design
Members of the European Union (EU) include all of the following EXCEPT Malaysia.
Milton Friedman's position on social responsibility => B) appears to be losing traction with
business executives.
Mintzberg's entrepreneurial mode is sometimes referred to as "muddling through" since this

decision- making mode tends to be more reactive than proactive in the search for new
opportunities. Answer: FALSE
Morality is defined as => B) a general rule of conduct of personal behavior, based on religious
or philosophical grounds.
morality.
More than ________ of outside directors surveyed said that they had been named as part of a
lawsuit against the corporation. 40%
Most entrepreneurial ventures follow => B) focus strategies.
Motorola provides each employee with at least ________ hours of training per year. => E) 40
N
Nate did an evaluation research study on how after-school programs in schools affected the
delinquency rates of tweens. As part of his study, Nate examined the changes in availability of
after-school programs outside of schools as well as changes in enforcement of delinquency laws.
Which term describes this analysis of factors outside his specific evaluation design? measuring
experimental contexts
Nominal participation reflects a board involved to a limited degree in the performance or review
of selected key decisions, indicators, or programs of management. An active board approves,
questions, and makes final decisions on mission, strategy, policies, and objectives. It also has
active board committees and performs fiscal and management audits. The catalyst board takes
the leading role in establishing and modifying the mission, objectives, strategy, and policies. It
also has a very active strategy committee.
O
Objectives which are personal and subjective and are typified by an entrepreneurial spirit
describe what stage of corporate development? Stage I company
observed corporate misconduct rated their cultures as weak? => A) 90
of an => A) organization's ethical and discretionary responsibilities.
Of the six values measured by the Allport-Vernon-Lindzey Study of Values test, both U.S. and
British executives consistently score highest on ________ values and lowest on ________
values. => C) economic and political; social and religious
On the continuum of resource sustainability, where would streaming movies be placed? => D)
fast-cycle resources
Once the best strategic alternative is selected, the broad guidelines for its implementation are
then defined by=> policies.
One benefit of a U.S. company entering a joint venture with an international firm is that
it=>reduces the risks of expropriation.
One company that has successfully found a propitious niche is => D) Frank J. Zamboni &
Company.
One ground rule necessary for effective brainstorming is => B) propose ideas without mentally
screening them.
One of the benefits of globalization is  economies of scale.
One of the benefits of strategic management is a clearer sense of vision for the firm Answer:
TRUE
One of the big common mistakes by corporations sending executives on global assignments is
NOT => B) educating executives about customs and values in other countries.
One of the most popular aids to developing corporate strategy in multi-business corporations
views business units in terms of the cash they generate is called=> portfolio analysis.
One research study of TQM successes and failures concluded that a key ingredient in TQM
programs is => C) top management.
One study of North American financial firms found that the average reengineering project
took months15
One tenet of the learning organization is to maintain stability. Answer: FALSE
organization's external environment is/are called => C) environmental uncertainty.
Orphagenix, a small biotech firm, avoids head-to-head competition with large pharmaceutical
companies by developing orphan drugs to target diseases that affect fewer than 200,000 people.
This is an example of which of Porter's generic strategies? => C) differentiation focus
consumers to try a new software. Which of Porter's forces does this reflect? => D) bargaining
power of suppliers
Outside directors are defined as  individuals on the board who are not employed by the
board's corporation
Outside directors may be executives of other firms but are not employees of the board's
corporation. Answer: TRUE
Over ________ of large companies use trend extrapolation for forecasting. => E) 70%
P
Patagonia uses sustainability in pursuing which of Porter's generic strategies? => A)
differentiation
percent intentionally misrepresented their economic performance primarily to influence stock
percentage of any damages recovered in cases where the government is defrauded? => B) 15-
30%
Performance results are monitored at the strategy formulation phase of the strategic
management process. Answer: FALSE
Population ecology is a theory that proposes organizations can and do adapt to change by
imitating other successful organizations.  Answer: FALSE
Population theory states that problems arise in corporations because the agents (top
management) are not willing to bear responsibility for their decisions unless they own a
substantial amount of stock in the corporation.  Answer: FALSE
Porter recommends that a division with tight cost control, frequent detailed control reports, a
well structured organization, and quantitatively-based incentives is required for which of the
following generic competitive strategies? => C) overall cost leadership
positioned in the same order as the parts are processed, this setup is known
as=> connected line batch flow.
possessing a high market share in a highly attractive industrys =>

concentration.
Pregnant women planning to deliver their babies in hospital A were given a poison control test.
After the delivery of their babies, the new moms attended a two-hour training session on poison
control. One week later, at their babies’ one-week check-up exam, the new moms retook the
poison control test. Located in the same city, pregnant women planning to deliver their babies in
hospital B were given a poison control test. One week later, at the babies’ one- week check-up
exam, these new moms retook the poison control test. What kind of design is being used? a
nonequivalent control group
price? => B) 20%
Producers of TV shows that depict violence often ignore the studies that indicate children who
watch violence are more likely to be aggressive, have fewer friends, and have poorer relationships
with their parents than children who do NOT watch violent shows. Which of the following is the
most likely reason that producers of the violent TV shows ignore the implications? because the
findings conflict with the producers’ vested interests
Products that typically bring in far more money than is needed for maintenance of their
market share are called => cash cows.
Professor Henley wants to compare the use of the legal system in different countries. Henley
examines the number of arrests per 1,000 population, the number of jury trials per 1,000 court
cases, the number of lawyers per capita, and the number of people incarcerated per 1,000
population. What type of evaluation is Professor Henley doing? social indicator research
Providing daycare centers to employees is an example of which of Archie Carroll's
Punctuated equilibrium describes organizations as evolving through relatively long periods of

stability punctuated by relatively short bursts of fundamental change. Answer: TRUE
Purchasing a product or service from an outside contractor that had been previously provided
internally is called =>outsourcing.
R
Refer to Exhibit 12.1. What is the experimental stimulus? the study skills class
Refer to Exhibit 12.1. What problem is illustrated? logistics
Refer to Exhibit 12.1. What type of design is being used? the nonequivalent control group design
Research comparing concentric with conglomerate diversification concludes that

=>the relationship between relatedness and performance is curvilinear.
Research done by Henry Mintzberg suggests that strategy formulation is typically an irregular
and a discontinuous process.
Research indicates that a broad mission statement may be best in a turbulent environment.
Answer: FALSE
of modern strategic planning is more in the strategic thinking and organizational learning.
Research reveals that the likelihood of a firm engaging in illegal behavior or being sued
declineswith the addition of outsiders on the board.
Research suggests that boards of directors tend to look outside the firm for the next CEO under
which following circumstance? => C) when the company is in trouble
corporations. The first phase is  basic financial planning.
resources?" => A) strategic group
responsibilities? => E) discretionary
Roberto wanted to examine the impact of newly enacted seat belt laws. He did so by comparing the
number of deaths due to car crashes before and after the laws were implemented. He did this in
multiple provinces and compared the changes in deaths with provinces that did not implement seat
belt laws in order to more clearly understand the impact of the new laws. Which design did he use?
multiple time-series design.
ROI
Role relativism is based on the belief that => C) social roles carry with them certain obligations.
Rule-based governance => B) relies on publicly verifiable information.
S
seniority, is an example of => D) distributive justice.
Sergio set up an evaluation study at a private high school to examine the impact of wearing
uniforms on delinquent behaviour. Midway through the study, various senior principals interfered
with the assignment of students to the group that wore uniforms and with data gathering for the
measurement of delinquent behaviour. Which of the following did Sergio experience?
administrative control
Shelley examined the impact of a special orientation session for first-year students on students’
retention in college. She experienced many problems with getting students to arrive on campus
before the term began, with getting students into appropriate groups, and with getting the research
instruments distributed and returned. Which of the following did Shelley experience? logistical
problems
Sixty-six percent of the outstanding stock in the largest U.S. and UK corporations is now owned
by institutional investors
Society generally expects firms to work with employees and the company to plan for layoffs.
This is an example of which of Archie Carroll's responsibilities? => D) ethical
Society increasingly expects corporate boards to balance the economic goal of profitability with
the social needs of society. Answer: TRUE
Some people claim that morality is relative to some personal, social, or cultural standard and
that there is no method for deciding whether one decision is better than another. This is called
=> E) moral relativism.
Stage III in the organizational life cycle is thematurity stage.
Stage V in the organizational life cycle is thedeath stage. Answer: E
Stewardship theory proposes insiders (senior leadership) tend to identify with the corporation
and its success.  Answer: TRUE
Strategic flexibility is the ability to shift from one dominant strategy to another. Answer: TRUE
Strategic goals can be accomplished through defining an action plan. Which one of the following is
NOT one of the components which make up an action plan? => D) where the action will be done
Strategic management is one decision that determines the short-term performance of a

corporation  Answer: FALSE
Strategic management is that set of managerial decisions and actions that determine the longrun
performance of a corporation. Which one of the following is NOT one of the basic elements of
the strategic management process? statistical process control
Strategic managers must be concerned with human resource management because => C) the
best strategies are meaningless if employees do not have the skills to carry them out or if jobs
cannot be designed to accommodate the available workers.
strategic orientation? => B) reactors
Strategic planning in a multidivisional corporation should be a formalized and sophisticated

system
Strategic planning within a small organization  may be informal and irregular.
Successful analyzer firms tend to be headed by CEOs with backgrounds in the areas of => C)
marketing/sales.
Successful defender firms tend to be headed by CEOs with backgrounds in the areas of => B)
accounting/finance, manufacturing/production, and general management.
Successful prospector firms tend to be headed by CEOs with backgrounds in the areas of => A)
research/engineering and general management
Succession planning for the board and top management team is one of the five responsibilities
of the board of directors Answer: TRUE
Surveys of large U.S. and Canadian corporations found outsiders make up what percentage of
total board membership?  80%
Sydney studied the impact of selling Girl Guide cookies on the troupes’ morale. She randomly
assigned six troupes to sell the cookies and six troupes to not sell the cookies. She measured troupe
morale before it was time to sell cookies as well as a month after. Which design did she use?
classical experimental
T
Target's efforts to offer brands from companies with ethical track records and community
involvement help the retailer attract socially concerned younger consumers. This is an example
of => A) social capital.
The ________ boards typically never initiate or determine strategy unless a crisis occurs
rubber stamp
The ________ has been measuring the state of ethics in organizations since 2007. => D) Ethics
Resource Center
The ability for Nike to manufacture its own shoes and then build stores for distribution is an
example of =>forward integration.
The ability of a corporation to shift from one dominant strategy to another is called strategic
flexibility
The ability of an organization to reshape its environment is described by the strategic choice
perspective
The ability of competitors to use duplicated resources and capabilities to imitate the other firm's
success is called => E) replicability.
The approach to ethical behavior which proposes that actions and plans should be judged by
their consequences, thus producing the greatest benefit to society with the least harm or the
lowest cost is called => C) utilitarian approach.
The approach to ethical behavior which proposes that human beings have certain fundamental
rights that should be respected in all decisions, thus avoiding interfering with the rights of others
is called => A) individual rights approach.
The approach to ethical behavior, which proposes that decision makers be equitable, fair, and
impartial in the distribution of costs and benefits to individuals and groups is called => D)
justice approach.
The average board member of a U.S. Fortune 500 firm serves on ________ board(s). 3
The average large, publicly held U.S. corporation has around  10 directors
The board of directors has an obligation to approve all decisions that might affect the longrun
performance of the corporation. Answer: TRUE
The book Hypercompetition was written by => E) D'Aveni.
The breadth of an organization's culture or the extent to which units throughout an organization
share a common culture is also known as => C) cultural integration.
The business model used by HP in selling printers and printer cartridges is the => E) multi-
component system/installed base model.
The business model used by IBM to make money not selling IBM products, but by selling its
expertise to improve their customers operations is the => C) customer solutions model.
The business model used by Spirit Airlines in offering a low-priced fare to the mass market is
the => A) efficiency model.
The collective strength of the interaction of potential entrants, buyers, substitutes, suppliers,
firm rivalry, and other stakeholders determine => C) the ultimate profit potential in the industry
measured in terms of long-run return on invested capital.
The combination of the degree of complexity and the degree of change existing in an
The combined chairperson/CEO position is being increasingly criticized because of the potential
for conflict of interest. Answer: TRUE
The combining of tasks to give a worker more of the same type of duties to perform is
known asjob enlargement.
The concept of ________ was taken one step further in JITII, in which vendor sales
representatives usually have desks next to the purchasing company's factory floor, attend
production status meetings, visit the R&D lab, and analyze the purchasing company's sales
forecasts. => sole sourcing
The concept of the lead director originated in  the United Kingdom
The concept that advocates management's attempt to find a strategic fit between external
opportunities and internal strengths while working around external threats and internal
weaknesses is called => E) situational analysis.
The concept that proposes private corporations have responsibilities to society that extend
beyond making a profit is known as => B) social responsibility.
The confidence levels of executive leaders may blind them to information that is contrary to a
decided course of action; this may help to understand why overconfident CEOs are more likely
to conduct mergers and acquisitions. Answer: TRUE
The controversy surrounding external versus internal growth finds =>internal growth appears to
be superior financially to external growth.
The corporate mission is best described by which one of the following? The purpose or
reason for the corporation's existence
The corporation's task environment => B) includes those elements or groups within an
The currency used to integrate the monetary systems of the European Union (EU) is called the
euro

opportunities and threats in light of corporate strengths and weaknesses is known as strategy
formulation
The displacement of one technology by another, as shown by two S-shaped curves on a graph,
is referred to as => D) technological discontinuity.
The Dow Jones Sustainability Index includes => C) environmental, economic, and social
sustainability.
The emphasis of strategic management is on  monitoring and evaluating external

opportunities and threats in light of a corporation's strengths and weaknesses.
The establishment of its own sales company with offices in other countries to eliminate the
middlemen and to better control marketing occurs in Stage of international
development 2
The evaluation of alternative strategies and selection of the best alternative is referred to as A)
alternative generation. =>strategic choice.
The existence of a performance gap should cause management to question their objectives,
strategies, and policies.
The first company to manufacture and sell a new product or service is called a(n) => B) first
mover.
The first step in constructing a corporate scenario is to

=>use industry scenarios to develop a set of assumptions
about the task environment.
The first step in stakeholder analysis is to => A) identify primary stakeholders.
The flow of products into and out of the manufacturing process is a factor when developing a(n)
________ strategy. => logistics
The focus strategies will likely predominate when many small and medium sized local
companies compete for relatively small shares of the total market in a(n) => B) fragmented
industry.
The function of a nominating committee is to  find outside board members for election by the
stockholders.
The GE Business Screen has been criticized because =>it

can get quite complicated and cumbersome.
The growth-share matrix of the Boston Consulting Group suggests that the excess cash being
generated by "cash cows" should be used to fund => "question marks."
The hiring of new people with new skills, firing of people with inappropriate or substandard skills,
and/or training existing employees to learn new skills are included the process of => B) staffing.
The integrated internationalization of markets and corporations is called globalization

The internal environment includes the variables of opportunities and threats. Answer: FALSE
The issues priority matrix used in environmental scanning is composed of two axis or
dimensions which are labeled => C) probability of occurrence and probable impact on the
corporation.
The job characteristics model is a good example ofjob enrichment.
The key to outsourcing is to purchase from the outside only those activities that=> A)
are not key to the company's distinctive competence.
The kind of strategic alliance in which a company forms a strong and close long-term
relationship for mutual advantage with a key supplier or distributor is the => C) value-chain
partnership.
The kind of strategic alliance in which there is a partnership of similar companies in similar
industries who pool their resources to gain a benefit that is too expensive to develop alone is the
=> D) mutual service consortia
The last stage of a hypercompetitive industry is reached when the remaining large global
competitors => E) work their way to a situation of perfect competition in which no one has any
advantage and profits are minimal.
The lowest degree of involvement for a board of directors is the catalyst level of interaction.
Answer: FALSE
The majority of outside directors are active or retired CEOs and COOs of other corporations.
Answer: TRUE
The mix in the workplace of people from different races, cultures, and backgrounds is referred
to as => B) diversity.
The mode of strategic decision-making typical of most universities, many large hospitals, a
large number of governmental agencies, and a surprising number of large corporations is
adaptive
The mode of strategy formulation used when top management has a reasonably clear idea of the
corporation's mission and objectives, but it chooses to develop a series of tentative or partial
strategies instead of developing full-blown strategies is called logical incrementalism
environments to key people within the corporation is referred to as environmental scanning
The more active professional boards are being replaced by the board as a rubber stamp of the
CEO. Answer: FALSE
The most commonly used political strategies include which of the following?=>all of the above
The most logical growth strategy for a corporation having a strong competitive position
The most widely used forecasting technique used after trend extrapolation is => C) scenario-
writing.
The movement of workers through several jobs to increase variety is referred to asjob
rotation.
The negative side of confident executive leaders is that their very confidence may lead to
hubris, in which their confidence blinds them to information that is contrary to a decided course
of action. Answer: TRUE
The New York Stock Exchange (NYSE) requires corporations to have  an audit committee
composed entirely of independent, outside members.
The organization's corporate mission statement should set the organization apart from its
competitors.
The part of an industry's value chain that is most important to a company and the point where its
greatest expertise and capabilities lie is called the company's => B) center of gravity.
The particular capabilities and resources a firm possesses and the superior way in which they
are used is called => A) distinctive competencies.
The particular combination of product, place, promotion, and price is called => D) marketing
mix.
The percentage of directors of small, publicly held U.S. corporations who are outsiders is
approximately  20 - 40%.
The percentage of European and Japanese-based expatriate managers who fail to adjust to a host
country's social and business environment is => A) 6% or less.
The percentage of large U.S. corporations using nominating committees to identify potential
new directors is approximately  97%
The percentage of U.S.-based expatriate managers who fail to adjust to a host country's social and
business environment is => B) approximately 35%
The phenomenon that describes corporations as evolving through relatively long periods of
stability punctuated by relatively short bursts of fundamental change is known as punctuated
equilibrium
The pricing, selling, and distributing of a product is referred to as a(n) ________ strategy.=> A)
marketing
The primary activity of competitive intelligence is to => A) monitor competitors.
The PRIMARY task of the manager of information systems is to => D) design and manage the
flow of information in a corporation to improve productivity and decision-making.
The principle, which argues that wrongs should be compensated in proportion to the offense
suffered is called => A) compensatory justice.
The principle, which proposes that punishment should be determined on a proportional basis to
the "crime" is called => B) retributive justice.
programs, budgets, and procedures is strategy implementation
The process of taking a new technology from the laboratory to the marketplace is called => D)
technology transfer.
The program which incorporates the statistical approach of Six Sigma with the lean
manufacturing program originally developed by Toyota is known asLean Six
Sigma.
The proposition that silicon chips double in complexity every 18 months is referred to as => B)
Moore's Law.
The purchase of Carroll's Foods for its hog-growing facilities by Smithfield Foods, the
world's largest pork processor, is an example of =>backward integration.
The purchasing strategy in which the purchasing company orders a particular part from
several vendors is => multiple sourcing.
The purchasing strategy in which two suppliers are the sole suppliers of different parts, but
are also the backup suppliers for each other's parts is=> E) parallel sourcing.
The purpose of vertical growth is to =>take over a function previously provided by a supplier or
by a distributor.
The radical redesign of business processes to achieve major gains in cost, service, or time is
calledreengineering.
competencies is called => C) imitability.
The ratio of total debt to total assets is known as => D) financial leverage.
The regional trade association composed of Argentina, Brazil, Uruguay, and Paraguay is called
Mercosur
The relationship among the board of directors, top management, and shareholders is referred to
as corporate governance.
The requirements of a board of directors vary significantly by country and by state; however,
there is a developing consensus as to what the major responsibilities should be. Which of the
following is not one of the responsibilities? becoming directly involved in managerial
decisions
The role of the board of directors in reviewing, evaluating, and shaping corporate strategy is
likely to be less active in the future.  Answer: FALSE
The role of the board of directors in the strategic management of the corporation is likely to
be more active in the future.
The S in S.W.O.T. stands for strengths
The Sarbanes-Oxley Act was designed to protect  shareholders from the excesses and failed
oversight of firms.
The SEC requires that the audit, nominating, and compensation committees be staffed entirely
by outside directors. Answer: TRUE
The second step in value chain analysis is to => B) examine the linkages within each product's
value chain.
The speed limit on all Ontario highways is 100 km/h. Recent debates have focused on whether this
speed limit should be lowered to the previous limit of 80 km/h. Both critics and proponents of
lowering the speed limit have looked at the number of traffic fatalities on all major Ontario
highways before and after the increase to 100 km/h. The examination of traffic fatalities on various
highways illustrates the use of which research design? the multiple time-series design
The speed with which other firms can understand the relationship of resources and capabilities
supporting a successful firm's strategy is called => D) transparency.
The stability strategy is appropriate for all of the following circumstances EXCEPT=>
appropriate when the industry is in decline.
The strategic audit is an all-inclusive list of critical questions needed for a detailed strategic
analysis of any business. Answer: FALSE
The Strategic Management Model presents the following process of strategy

formulationMission -- Objectives -- Strategies -- Policies
The strategy implementation tool used to determine what actions are going to be taken, by whom,
during what time frame, and with what expected results is called a(n) => B) action plan.
The strategy that deals with product and process innovation and improvement is known as a(n)
________ strategy. =>R & D
The strategy which takes place in two basic phases of contraction and consolidation is=>
turnaround.
The sum total of the activities and choices required for the execution of a strategic plan is
known as strategy implementation.
The T in S.W.O.T. stands for threats
The T in SWOT represents => B) threat.
The task environment  includes those elements or groups within an organization's industry
The technique recommended by the text to organize an analysis of external strategic factors is
called => B) EFAS
The technique that illustrates how management can match the external opportunities and threats
with its strengths and weaknesses to yield four sets of strategic alternatives is called a (an) =>
D) TOWS Matrix.
The technique used to help strategic managers choose among alternative choices by defining
the task environment, developing a set of various forecasts, and using pro forma financial
statements is called =>corporate scenarios.
The term "corporate governance" refers to the relationship among the board of directors, top
management, and the shareholders in determining the direction and performance of the
The term "social responsibility," according to Archie Carroll, can be viewed as a combination
The term used in strategic implementation that describes a statement of activities or steps
needed to accomplish a single-use plan and whose use is to make the strategy action-oriented
isprogram.
The term used in strategic implementation that describes a system of sequential steps or
techniques that describe in detail how a particular task or job is to be done
isprocedures.
The text authors note that the essence of strategy is => A) opportunity divided by capacity.
other successful organizations is known as institution theory
The theory which states that problems arise in corporations because top management no longer
is willing to bear the brunt of their decisions unless they own a substantial amount of stock in
the corporation is called  agency theory
The time horizon involved with regard to basic financial planning is usually  one year
primarily global are (1) the pressure for coordination within the MNCs operating in that
industry and (2): => A) the pressure for local responsiveness on the part of individual country
markets.
The two general types of cooperative strategies are => C) strategic alliances and collusion.
The type of marketing strategy in which a company captures a larger share of an existing
market for current products through market saturation or market penetration or develops
new markets for current products is called =>A) market development.
The type of strategy used to influence a corporation's key stakeholders in order to increase
their support of corporate activities is =>political strategy.
The type of strategy which achieves corporate and business unit objectives and strategies by
maximizing resource productivity is functional
The type of strategy which describes a company's overall direction in terms of its general
attitude toward growth and the management of its various businesses and product lines is
corporate
The type of strategy which emphasizes the improvement of the competitive position of a
corporation's products or services in a particular industry or market segment served by a
business unit is business.
The U.S. Clayton Act and the Banking Act of 1933  prohibit interlocking directorates by U.S.
companies competing in the same industry
The U.S. major home appliance industry, including the companies of Maytag, Whirlpool,
General Electric, and Electrolux, is an example of an industry => C) that was once fragmented,
but now is consolidated.
The variables structure, culture, and resources pertain to the internal environment
The vast majority of inside directors are from all of the following EXCEPT  lower-level
operating employee
There are three distinct phases in the development of a matrix structure. Which is the first
phase to occur usually when a new product line is being introduced? temporary cross
functional task forces
There are three distinct phases in the development of a matrix structure. Which phase occurs
when both the functional and product structures become permanent in a true dual-authority
structure? mature matrix
Theresa studied the impact of a publicity campaign on the number of women who visited a
women’s shelter in Amestown. The goal of the publicity campaign was to increase usage of the
centre. For comparison purposes, Theresa measured the change in usage over the same time period
in a women’s shelter in Brantville, a town of a similar size some distance away. There was no
publicity campaign in Brantville. What design did Theresa use? nonequivalent control group
Those critical strengths and weaknesses that are likely to determine if a firm will be able to take
advantage of opportunities while avoiding threats are called => C) internal strategic factors.
Those directors who fail to act with due care and allow the corporation to be harmed may be
held personally liable. Answer: TRUE
within any particular industry are known as => D) key success factors.
Three trends are evident in logistics: outsourcing, the use of the Internet, and =>
A) centralization.
Through market research, corporations are able to practice ______ with various products or
services so that managers can discover what niches to seek, which new types of products to
develop, and how to ensure that a company's many products do not directly compete with one
another => C) market segmentation
Timing tactics answer the question => D) when a company implements a strategy.
To be effective, strategic management must be a formal process Answer: FALSE
To ensure employees are gaining the appropriate mix of experience to prepare employees for
future responsibilities, many corporations move people from one job to another utilizing the
technique of => C) job rotation
To succeed in a hypercompetitive industry, companies must be willing to => D) cannibalize

their own successful product lines.
issues to lower management levels is known as externally-oriented planning.
Transformational leaders transform organizations from market leaders in one industry to market
leadership in another. Answer: FALSE
Treating people in the same way who are similar on relevant dimensions such as job
Trend extrapolation is => B) the extension of present trends into the future.
Under Stage III, when various units of the company optimize its sales and profits without
regard to the overall corporation, the organization may be experiencing acrisis of
control.
Under what circumstances does a DIRECT interlocking directorate exist?  occurs when two
firms share a director or when an executive of one firm sits on the board of a second firm
Under what circumstances does an INDIRECT interlocking directorate exist?  when two
corporations have directors who serve on the board of a third firm
units to improve the competitive position of one or more business units is called
A) vertical strategy. =>horizontal strategy.
Using the Golden Rule and never treating another human being simply as a means but always as
an end are the categorical imperatives of => D) Immanuel Kant.
Usually, the strategic planning staff is charged with supporting only top management in the
strategic planning process.  Answer: FALSE
W
Wal-Mart, McDonald's and Alamo are all examples of companies following which of Porter's
competitive strategies? => B) cost leadership
What are the benefits of strategic management?  The three most highly rated benefits of
strategic management are: 1. clearer sense of strategic vision for the organization 2. sharper
focus on what is strategically important 3. improved understanding of a rapidly changing
environment.
What are the four main activities of a learning organization? The four main activities of a
learning organization are solving problems systematically, experimenting with new approaches,
learning from their own experiences and past history as well as from the experiences of others,
and transferring knowledge quickly and efficiently throughout the organization.
What are the key environmental trends that are judged to have a medium to high probability of
occurrence and a medium to high probability of impact on the corporation? => A) external
strategic factors
What are the responsibilities of the board of directors?  Answer: The five board of directors'
responsibilities are 1. Effective board leadership, including the processes, makeup and output of
the board 2. Strategy of the organization 3. Risk vs. initiative and the overall risk profile of the
organization 4. Succession planning for the board and top management team 5. Sustainability
What are the responsibilities of top management?  Answer: Top management responsibilities
involve getting things accomplished through and with others to meet the corporate objectives.
Top management's job is multidimensional and oriented toward the welfare of the total
organization. Specific top management tasks vary from firm-tofirm and developed from an
analysis of the mission, objectives, strategies, and key activities of the corporation. Tasks are
typically divided among the members of the top management team. The CEO, with the support
of the rest of the top management team, must successfully handle two primary responsibilities
crucial to the effective strategic management of the corporation: (1) provide executive
leadership and a strategic vision, and (2) manage the strategic planning process.
What are the two distinct attributes of corporate culture? => D) intensity and integration
What are the two generic competitive strategies that Porter promotes as the means for
outperforming other corporations in a particular industry? => E) lower cost and differentiation
What characterizes the planning mode of strategy formulation?  It involves the systematic
gathering of appropriate information for situation analysis, the generation of feasible alternative
strategies, and the rational selection of the most appropriate strategy.
What did a study of 173 firms over a 25-year period reveal about CEOs of successful corporations?
=> B) They tended to have the same functional specialization as the former CEO.
What differentiates quasi-experimental designs from true experimental designs? lack of random
assignment of subjects to an experimental and a control group
What does "MBO" stand for? => E) Management By Objectives
What is a set of business units or firms that "pursue similar strategies with similar
What is a strategic decision and what are its three characteristics? A strategic decision deals
with the long-run future of an entire organization. There are three characteristics of a
strategic decision: rare, consequential, and directive. Strategic decisions are unusual and
typically have no precedent to follow. They commit substantial resources and demand a great
deal of commitment from people at all levels. And they set precedents for lesser decisions and
future actions throughout the organization.
What is a triggering event? List some possible examples.  A triggering event is something
that acts as a stimulus for a change in strategy. Some possible triggering events are a new CEO,
an external intervention, a threat of a change in ownership, a performance gap, and a strategic
inflection point.
What is another name for evaluation research? program evaluation
What is one example of administrative control negatively affecting a program evaluation? A

program director refuses access to important case files.
What is the activity that occurs in Stage I of international development? The company
exports, but trade is minor and handled by an export department.
What is the activity that occurs in the last stage of international development? The company
operates in a global industry and establishes worldwide HR, R&D, and financing strategies.
What is the additional phase in the organizational life cycle that may occur sometime during
the maturity or decline stages? revival phase Answer: E
What is the advantage of creating new measures for variables in evaluation research? New
variables provide greater possible relevance and validity to the study.
What is the attribute of corporate culture that is the degree to which members of a unit accept
the norms, values, or other culture content associated with the unit? => C) intensity
What is the goal of applied research? to have some real-world effect
What percent of boards now have truly independent chairs?  approximately 30%
What percentage of public corporations have periodic board meetings devoted primarily to the
review of overall strategy? 74%
What term refers to the study of individual tasks in an attempt to make them more relevant to
the company and to the employee(s)? job design
What two elements are combined in social indicators research? evaluation research and the
analysis of existing data
When a board of directors is involved to a limited degree in the performance or review of

selected key decisions, indicators, or programs of management, the degree of involvement is
referred to as nominal participation
When a company deals with obtaining raw materials, parts, and supplies needed to perform the
operations function, the company is developing its ________ strategy. =>purchasing
When a company determines how and where a product or service is to be manufactured, the
level of vertical integration in the production process, the deployment of physical resources, and
relationships with suppliers, the company is developing its ________ strategy. =>operations
When a company determines that a competency provides a competitive advantage, Barney

refers to this issue as => A) value.
When a company exchanges 100 shares of stock worth $10 each for 50 shares worth $20
each, they are using =>reverse stock split.
When a company following a differentiation strategy ensures that the higher price it charges for
its higher quality is not priced too far above the price of the competition, the company is using
the process of => C) cost proximity.
When a company spends a large amount of money on trade promotion in order to gain or hold
shelf space in retail outlets, a company is using a ________ strategy. =>push
When a company takes apart a competitor's product in order to find out how it works, this
process is known as => C) reverse engineering
When a company's core competencies are superior to those of competitors, these are known as
=> B) distinctive competencies.
When a firm internally makes 100% of its key supplies and completely controls its
distributors, this is known as => full integration.
When Admiral was acquired by Maytag Corporation, the Admiral employees were willing to
accept the dominance of Maytag's strong quality-oriented culture. This demonstrates which
approach to managing culture? => D) assimilation
When an organization is evaluating its strategic position, which is NOT one of the strategic
questions that an organization must ask itself? How can functional and operational areas be
improved?
When AT&T acquired NCR Corporation, which management strategy was employed in terms of
culture? => C) deculturation
When Bristol-Myers Squibb purchased 17% of ImClone's common stock to gain access to a
new drug, it was using which type of integration? =>E) quasi integration
When calculating a "deserved pay" for CEOs based upon earnings growth and shareholder
return, financial research firm Obermatt found that  there is no correlation in the 100 S&P
companies between CEO pay and company performance.
When components are standardized and each machine functions like a job shop but is
When considering acceptable alternative strategies, the most important criterion is the ability of
the proposed strategy to deal with =>the specific strategic factors developed in the S.W.O.T.
analysis.
When crafted correctly, an effective policy accomplished all but which of the following? (It
forces trade-offs between competing resource demands; It tests the strategic soundness of a
particular action; It grants employees freedom to experiment within its constraints; It sets
boundaries within which employee must operate while granting them freedom to experiment
within those constraints.) =>All of the above
When Dell Computer's customers use the Internet to design their own computers, this
demonstrates which manufacturing strategy? =>mass customization
When examining the corporate value chain of a particular product or service, which one of the
following is not one of the primary activities that usually occur? => C) auditing and accounting
Company would be concerned with the => B) bargaining power of buyers.
When Hewlett Packard searches for executive leadership, all of the following represent its broad
competency of achieving results EXCEPT => B) increasing stock price.
When Intel opened four small-scale research facilities adjacent to universities to promote the
cross-pollination of ideas, they were using which approach to R & D? =>open innovation
When Kimberly-Clark introduced Huggies disposable diapers against Procter & Gamble's
market leading Pampers, they were using the offensive tactic known as a(n) => B) frontal
assault.
When lower cost and differentiation strategies have a narrow focus on a market niche they are
simply called => C) cost focus and differentiation focus.
When P & G, Kimberly-Clark, and Scott Paper compete with each other in varying
When Renault purchased a controlling interest in Japan's Nissan Motor Company, which approach
to managing culture was employed? => A) integration
When scientists concentrate on quality control and the development of design specifications and
improved production equipment, it is referred to as => C) engineering R&D.
When Smith & Wesson puts its name on others' products, like men's cologne, it is using which
marketing strategy?=>line extension
When strategic managers have a willingness to reject unfamiliar as well as negative information
it is referred to as => D) strategic myopia.
When the drive of the entrepreneur is no longer enough to keep the Stage I company from
floundering, this type of crisis is calleda crisis of leadership.
When the people managing diversified product lines in a functionally structured corporation
need more decision-making freedom than top management is willing to delegate to them, this
type of crisis is calleda crisis of autonomy.
for multinational corporations within a particular industry, the industry will tend to become =>
A) global.
for multinational corporations in an industry, the industry will tend to become global. => C)
multidomestic.
When the return on investment for each division of a corporation is greater than what the
return would be if each division were an independent business, that corporation is said to
have achievedsynergy.
When the value chains of two separate products or services share activities, such as the same
marketing channels, in order to reduce costs, this is an example of => A) economies of scope.
When there are highly automated assembly lines making one mass-produced product using
little human labor, this setup is called =>A) dedicated transfer lines.
When Yamaha entered the market with a broader range of pianos, keyboards, and other musical
instruments, it was using which offensive tactic? => C) encirclement
Where a change could begin refers to which aspect of the matrix of change sequence of
execution
and when it is important to build consensus and develop needed resources before committing
the entire corporation to a specific strategy? logical incrementalism
Which approach to ethical behavior can encourage selfish behavior when a person defines a
personal need or want as a "right"? => B) individual rights
Which barrier to entry is demonstrated by Microsoft's MS-DOS operating system? => C) cost
Which barrier to entry uses brand identification to force new entrants to spend heavily to
overcome existing customer loyalty? => D) product differentiation
Which barrier to entry uses cost advantages associated with large size? => E) economies of
scale
Which country pioneered the use of worker participation on corporate boards?  Germany
Which defensive tactic is used by Coca Cola with their offering of unprofitable noncarbonated
beverages to keep competitors off store shelves? => D) raise structural barriers
Which defensive tactic was used by Southwest Airlines when deliberately keeping their prices
low and constantly investing in cost-reducing measures? => B) lower the inducement for attack
Which environment was generally perceived by business people to be a given until the 20th
century? => B) the natural environment
Which external growth strategy involves two or more corporations joining in a stock exchange
and from which only one corporation survives? =>mergers
Which external growth strategy was demonstrated when Procter & Gamble completely
absorbed Gillette? =>acquisitions
Which is NOT one of the competencies Hewlett Packard uses for identifying potential executives?
=> E) Manage around the external environment.
Which is the largest of the current US generations? => A) Baby Boomers
Which kind of corporate strategy deals with the firm's overall orientation toward growth? =>
directional strategy
Which kind of corporate strategy deals with the manner in which the firm coordinates activities
and transfers resources and cultivates capabilities among product lines and business units?=>
parenting strategy
Which method of managing disparate cultures involves a relatively balanced give-and-take of

cultural and managerial practices between the merger partners, and no strong imposition of cultural
change on either company? => C) integration
Which method of managing disparate cultures involves one organization's domination over another
willing organization? => D) assimilation
Which method of managing disparate cultures is characterized by a separation of the two

companies' cultures because of their differences? => A) separation
Which method of managing disparate cultures is the most common and most destructive method of
dealing with two different cultures because one company imposes its demands at the expense of
another company's culture? => B) deculturation
Which of Porter's competitive strategies concentrates on seeking differentiation in a particular
buyer group, product line segment, or geographic market? => C) differentiation focus
Which of Porter's competitive strategies recommends that a company emphasize a particular

buyer group or geographic market and attempts to seek a cost advantage in its targeted segment?
=> E) cost focus
Which of the following best describes a simple structure? => C) This is most appropriate for
small, entrepreneur-dominated companies with one or two product lines that operate in a small
niche market, with employees acting as jack-of-all trades.
Which of the following companies was cited by the text as an example of a company which
does its best to consider its responsibilities to its primary and secondary stakeholders when
making strategic decisions? => C) Johnson & Johnson
Which of the following describes a turnaround strategy? =>Emphasizes improving operational

efficiency and is appropriate when a corporation's problems are pervasive, but not yet critical.
Which of the following describes a typical functional structure? => A) Employees tend to be
specialists in the business functions important to that industry such as manufacturing,
marketing, finance, and human resources.
Which of the following is a function of corporate culture? => C) It conveys a sense of identity
for employees.
Which of the following is a research study in which evaluation is performed using a control group
that is similar to the experimental group, but is not selected at random or specifically matched?
nonequivalent control group design d. posttest-only control group design
Which of the following is a scientifically reliable way to obtain more objective descriptions of a
social issue and the program needed to address that social issue? needs assessment
Which of the following is a trend in corporate governance?  Boards are establishing

mandatory retirement ages for board members.
Which of the following is an example of a corporate strategy? Diversify product line to

appeal to more people
Which of the following is an example of a global industry? => C) tires
Which of the following is an example of a mission statement? Develop and sell quality
Which of the following is an example of a policy? Pay highest salaries to keep high quality
employees
Which of the following is an example of a program? Reduce final assembly time to three
days by having suppliers build plan sections.
Which of the following is an example of an objective?  Increase sales by 10% over last year
Which of the following is NOT a characteristic of strategic decisions as mentioned in the text?
continuous
Which of the following is not a function of corporate culture? => D) keeps people guessing
about what to do next
Which of the following is NOT a goal of financial strategies? =>Institute a new product
development plan to generate profit potential.
Which of the following is NOT a guideline proposed for successful downsizing? => C) Make
across-the-board cuts.
Which of the following is not a key characteristic of transformational executive leaders?  The
CEO energizes the board to formulate strategy. E) The CEO articulates a strategic vision for the
corporation.
Which of the following is NOT a major force in the societal environment? => B) labor forces
Which of the following is NOT a part of strategy implementation?  performance evaluation
Which of the following is not a primary activity of the value chain? => D) purchasing
Which of the following is NOT a principle of reengineering identified by Hammer?

determines internal as well as external customers
Which of the following is NOT a reason companies or business units may form a strategic
alliance? => D) To set prices in the industry. E) To learn new capabilities.
Which of the following is NOT a reason why the growth strategy is so seductive? =>A
large and growing firm attracts more acquisition offers.
Which of the following is not a responsibility of a research and development manager? => D)
taking the design and operationalizing the plan into mass production
Which of the following is not a support activity of the value chain? => D) marketing and sales
Which of the following is not a task of the board of directors in strategic management?  to
implement
Which of the following is not a trend in corporate governance expected to continue?  Boards
are getting larger.
Which of the following is NOT an advantage of being a first mover? => E) First movers may be
able to keep R & D costs low by imitating the technological advances of others.
Which of the following is NOT an element of the organization's task environment? => D)
Which of the following is NOT an essential ingredient of TQM? => C) Action planning.
Which of the following is NOT an offensive tactic? => D) raising structural barriers E)
encirclement
Which of the following is NOT considered a strategic alliance success factor? => B) Operate
with short term time horizon.
Which of the following is NOT defined by GE as one of the variables forming industry
attractiveness? =>market share
Which of the following is NOT descriptive of "threat of substitute products or services?" => C)
Which of the following is NOT descriptive of a high level of bargaining powers of buyers? =>
E) A buyer earns high profits and is very insensitive to costs and service differences.
Which of the following is NOT descriptive of a high level of bargaining power of suppliers? =>
A) Substitutes are readily available.
Which of the following is NOT descriptive of a network structure? The network structure
typically is located in a large, single building or areas with many work projects in operation on
the site.
Which of the following is NOT descriptive of external environmental scanning? => vE) Used to
identify strengths and weaknesses.
Which of the following is NOT descriptive of intense rivalry among firms? => E) product
offerings that are highly differentiated
Which of the following is not descriptive of interlocking directorates?  Interlocking

directorates are more common in small, family-owned companies.
Which of the following is NOT descriptive of the "threat of new entrants?" => D) Does not
impact industry attractiveness.
Which of the following is NOT descriptive of the matrix structure? Although employees
often work on one or more product units, they maintain only one direct supervisor.
Which of the following is NOT descriptive of the purpose of Management By Objectives (MBO)?
=> B) MBO operates independently and requires very little supervision or administration.
Which of the following is NOT identified as a key driver for strategic fit between alliance
partners? Partners must independently achieve their goals.
Which of the following is NOT one of the advantages of portfolio analysis? =>It
provides the basis for impartial objectivity from which to make decisions.
Which of the following is NOT one of the eight dimensions of quality? => D) value
Which of the following is NOT one of the eight sociocultural trends mentioned in the text? =>
D) Increasing food consumption.
Which of the following is not one of the examples provided as an organizational benefit
received from being socially responsible? => D) They are guaranteed to maximize resource
productivity and reduce the average payback period of investment.
Which of the following is not one of the four major issues researched by the S&P Corporate
Governance Scoring System?  research and development initiatives
Which of the following is not one of the four methods to improve the corporation's quality of
work life? => C) improve the responsiveness of management D) introduce innovative reward
systems
Which of the following is not one of the four question areas Barney proposes in his VRIO
framework used to evaluate a firm's key resources? => B) durability
Which of the following is NOT one of the general strategic types? => A) initiators
Which of the following is NOT one of the limitations of portfolio analysis? =>It relies too
heavily on objective judgments.
Which of the following is NOT one of the limitations of the BCG Growth Share Matrix?
=>There are too many aspects of overall competitive position included.
Which of the following is NOT one of the major outsourcing errors that should be avoided? =>
micromanaging the outsourced activity to maintain control
Which of the following is NOT one of the questions that development of a competitive strategy
should raise? => D) Should we compete by garnering political support of influential leaders?
Which of the following is NOT one of the risks of a cost leadership strategy? => B) Achieving
excessive success causing jealousy amongst competitors.
Which of the following is NOT one of the risks of the focus strategy? => D) The exit of
focusers from the industry.
Which of the following is NOT one the four triggering events listed in the text that are the
stimulus for a strategic change? annual strategic planning conference
Which of the following is NOT true of a Stage I corporation? Planning tends to be long range
and progressive.
Which of the following is the most common reason given by surveyed executives for
Which of the following is true in regards to competitive intelligence? => E) all of the above
Which of the following is true of defensive tactics? => E) all of the above
Which of the following practices was not identified by Black and Gregersen in companies that do a
good job of managing foreign assignments? => C) They offer assignments to those who want to
return home early to share their experiences.
Which of the following provides an example of a transformational leader? A) Phil Knight at

Nike has energized his corporation and commanded respect. B) Louis Gerstner proposed a new
vision for IBM to change its business model from computer hardware to services. C) Microsoft
CEO, Steve Ballmer, crawled under tables to plug in PC monitors and diagnosed problems with
an operating system. D) Verizon Communications CEO Ivan Seidenberg showed his faith in his
people by letting his key managers handle important projects and represent the company in
public forums. E) all of the above
Which of the following regions is the most globalized region of the world in terms of boards of
directors with most companies having one or more non-national directors?  Europe
Which of the following statements is not true concerning a corporate reputation? => E)
Research shows no positive relationship between corporate reputation and financial
performance.
Which of the following statements is not true concerning secondary stakeholders? => E)
Secondary stakeholders have sufficient bargaining power to directly affect the corporation's
activities.
Which of the following statements is not true of a strategic inflection point? A new CEO is an
example of a strategic inflection point.
Which of the following statements is not true regarding the board of directors?  More than
half of all publicly traded companies in the United States are incorporated in New York,
requiring that the corporation be managed in accordance with NY state laws.
Which of the following statements is true concerning clusters? => A) The desire to build or
upgrade a core competency is one reason why entrepreneurial and other fast-growing firms
often tend to locate close to their competitors.
Which of the following statements is true concerning the career life cycle for top executives? => E)
all of the above (A) During the early years of executives' tenures, they tend to experiment
extensively with product lines to learn about their business. B) It is possible that a current CEO
may not be appropriate to implement a new strategy. C) The harvest stage occurs when executives'
accumulated knowledge allows them to reduce experimentation and increase knowledge. D) There
is an inverted U-shaped relationship between top executive tenure and the firm financial
performance.)
Which of the following strategies was being used when Allied Corporation and Signal
Companies formed Allied Signal? =>mergers
Which of the following terms best describes a system in which items are normally processed
sequentially, but the work and sequence of the process vary? => E) intermittent system Answer:
E
Which offensive tactic advocates attacking a part of the market where the competitor is weak?
=> A) flanking maneuver
Which offensive tactic have the microbreweries used against major brewers? => E) guerilla
warfare
Which offensive tactic proposes an indirect approach against the established competitor such as
changing the rules of the game? => B) bypass attack
Which offensive tactic utilizes a head-to-head approach with the firm's competitor by matching
every category of competition from price to promotion to distribution channel? => D) frontal
assault
Which one of the following best describes a conglomerate structure? => E) This is appropriate
for a large corporation with many product lines in several unrelated industries.
Which one of the following best describes a divisional structure? => B) This is most appropriate
for large corporations with many product lines in several related industries, with employees
acting as functional specialists attempting to gain synergy among divisional activities.
Which one of the following directional strategies is most frequently used in corporations? A)
stability => growth
Which one of the following is an example of a narrow scope in a mission?  computers (vs
office equipment)
Which one of the following is included in the firm's task environment?  stockholders
Which one of the following is NOT a characteristic of a firm that has chosen a captive company
strategy? =>Probably most appropriate for a company with a strong competitive position in a
growing industry.
Which one of the following is not descriptive of the experience curve? => A) It is very useful
because it is consistent for all organizations within a particular industry. B) It is used to estimate
the production cost of a product produced by newly introduced techniques or processes.
Which one of the following is NOT one of Malekzadeh and Nahavardi's four general methods of
managing disparate cultures? => E) segmentation
Which one of the following is NOT one of the activities and techniques typically used in an
assessment center to evaluate a person's suitability for advancement? => D) IQ tests
Which one of the following is not one of the arguments against social responsibility as used by
economist Milton Friedman? => B) Businesses can actually do very little in terms of social
responsibility.
Which one of the following is NOT one of the characteristics possessed by companies that have
made successful major culture changes? => B) If the vision is difficult, the CEO immediately
terminates the goal.
Which one of the following is NOT one of the questions that management should raise in their
attempt to assess the importance to the corporation of stakeholders' concerns? =>A) Which
stakeholder group should be represented on the board of directors?
Which one of the following is NOT part of the process of industry scenarios? => C) Generate at
least 15 scenarios.
Which one of the following is NOT true of risk?

=>Managers who own a significant amount of stock in their
firms are less likely to engage in risk-taking actions.
Which one of the following was NOT one of the cultural dimensions that Hofstede found which
could explain the success or failure of certain management practices? => E) cultural diversity
Which societal force includes demographic trends? => E) sociocultural forces
Which statement below is NOT true of strategy implementation? Strategy implementation

should be kept separate and distinct from that of strategic management.
focuses on improving the efficiency of their existing operations? => E) defenders
Which strategy did Circuit City use in 2008 when it converted its retail stores to cash?=>
liquidation
Which strategy did Delta choose when it acquired Northwest Airlines to obtain access to
Northwest's Asian markets? =>A horizontal integration strategy.
Which strategy has been used successfully by Yum! Brands to establish KFC and Pizza Hut
restaurants across the globe? => B) licensing arrangement
Which strategy involves giving up management of the firm to the courts in return for some
settlement of the corporation's obligations? =>bankruptcy
Which strategy is developed to pull together the various activities and competencies of each
department so that corporate and business unit performance improves and resource productivity
is maximized? =>E) functional strategy
Which strategy is most appropriate as a temporary strategy to enable a corporation to

consolidate its resources after prolonged rapid growth in an industry now facing an uncertain
future?=>pause/proceed with caution strategy
Which strategy is most appropriate for a company in an industry in which the future is expected
to continue as an extension of the present? => no change strategy
Which strategy might be the most likely when management realizes that the current industry is
unattractive and that the firm lacks outstanding skills that it could easily transfer to related
products or services in other industries?=> conglomerate diversification
Which strategy specifies the firm's overall direction in terms of its general orientation
towardgrowth, the industries or markets in which it competes, and the manner in which it
coordinates activities and transfers resources among business units? => corporate
Which structure is described as a "non-structure" by its virtual elimination of in-house

business functions? network structure
Which structure is often called a virtual organization? network structure
Which structure simultaneously combines functional and product forms at the same level of
the organization? matrix structure
Which tactic deals with where a company implements a strategy? => B) a market location tactic

Which type of chief executive officer who is highly knowledgeable in other industries and can
manage diverse product lines would be appropriate for a corporation following a diversification
strategy? => D) analytical portfolio manager
Which type of chief executive officer with a conservative style, a production or engineering
background, and experience with controlling budgets, capital expenditures, inventories, and
standardization procedures would be appropriate for a corporation following a stability strategy?
=> E) cautious profit planner
Which type of chief executive officer with a great deal of experience in that particular industry
would be appropriate for a corporation following a concentration strategy emphasizing vertical or
horizontal growth? => B) dynamic industry expert
adjustments made for individual countries around the world? => B) global industry
Which type of pricing attempts to hasten market development and offers the pioneer the
opportunity to utilize the experience curve to gain market share and dominate the industry?=>
penetration pricing
Which type of pricing takes advantage of the demand curve while the product is still novel
and competitors are few? =>skim pricing
Which type of research frequently uses existing statistics? social indicators research
Which type of structure enables a corporation to centralize decision making along product
lines and to reduce costs? product-group structure
Which type of structure enables a corporation to decentralize decision making to the local
subsidiaries? geographic-area structure
Which type of structure was used by American Cyanamid to introduce and manage a similar
line of products throughout the world? product-group structure
Which type of structure was used by Nestle to tailor products to regional differences and to
achieve regional coordination? geographic-area structure
While 97% of large U.S. corporations now use nominating committees to identify potential
directors, this practice is not as common in Europe. Answer: TRUE
While there are litigation and physical risks to companies as a result of climate change, there is
no risk currently identified to the company on its overall reputation.  Answer: FALSE
Who said that the social responsibility of business is a "fundamentally subversive doctrine" and
that the one social responsibility of business is "to use its resources and engage in activities
designed to increase its profits so long as it stays within the rules of the game..."? => E) Milton
Friedman
Who typically implements strategy in large, multi-industry corporations? everyone in the

organization
Why is the use of the combined Chair/CEO role being increasingly criticized? Answer: The
use of the combined Chair/CEO role is increasingly criticized because of the potential for
conflict of interest. The CEO is supposed to concentrate on strategy, planning, external
relations, and responsibility to the board. The Chairman's responsibility is to ensure that the
board and its committees perform their functions as stated in the board's charter. Critics of
having one person in both roles ask how the board can properly oversee top management if the
Chairman is also a part of top management.
Willie is conducting a study of how effective a midnight basketball program is in reducing inner-
city juvenile crime. He measures the number of crimes reported to the police before and after the
basketball program is instituted, and then he compares his findings to the crime rates in another
city of similar size that does not have such a program. What is the experimental stimulus of
Willie’s research? the midnight basketball program
With conglomerate diversification, the focus is on

=>financial considerations.
Y
You are conducting a study of how effective a skateboarding park and program are in reducing
inner-city juvenile crime. You measure the number of crimes reported to the police before and
after the park and program have been instituted, and you compare your findings to the crime rates
in another city of similar size that does not have such a park or program. What sort of evaluation
design are you using? nonequivalent control group
A
A company’s strategy is most accurately defined as...e) Management’s commitment to
pursue a particular set of actions in growing the business, attracting and pleasing
customers, competing successfully, conducting operations, and improving the company’s
financial and market performance. A company’s strategy stands a better chance of
succeeding whenc) It is predicated on competitive moves aimed at appealing to buyers in
ways that set the company apart from rivals.c) It is predicated on competitive moves
aimed at appealing to buyers in ways that set the company apart from rivals.
A company's business model consists of its..E) profit formula and customer value
proposition.
A company's business model....B. Profits and return on investment. A company's business
model...B. is management's storyline for how it will generate revenues ample to cover
costs and produce a profit—absent the ability to deliver good profitability, the strategy is
not viable and survival of the business is in doubt.
A company's business model...D. sets forth the key components of the enterprise's
business approach, indicates how revenues will be generated, and makes a case for why
the strategy can deliver value to customers in a profitable manner.
A company's business model..D) is management's blueprint for delivering a valuable
product or service to customers in a manner that will yield an attractive profit.
A company's realized business strategy is made up of.) both deliberate and/or planned
initiatives that have proven themselves in the marketplace and newly launched initiatives
aimed at further boosting performance and emergent and/or reactive adjustments to
unanticipated strategic moves by rivals, unexpected changes in customer preferences, and
new market opportunities.
A company's strategy and its quest for competitive advantage are tightly connected
because...c) crafting a strategy that yields a competitive advantage over rivals is a
company's most reliable means of achieving above-average profitability and financial
performance.
A company's strategy consists of competitive moves and approaches that managers have
developed to grow the business, attract and please customers, conduct operations, and
achieve targeted objectives.
A company's strategy evolves from one version to the next because of...B. the proactive
efforts of company managers to improve this or that aspect of the strategy, a need to
respond to changing customer requirements and expectations, and a need to react to fresh
strategic maneuvers on the part of rival firms.
A company's strategy evolves over time as a consequence of..B. the proactive efforts of
company managers to fine-tune and improve one or more pieces of the strategy.
A company's strategy has a chance of succeeding only when it is predicated on B)
actions, business approaches, and competitive moves aimed at appealing to buyers and
setting the company apart from rivals.
A company's strategy is a "work in progress" and evolves over time because of the A)
ongoing need of company managers to react and respond to changing industry and
competitive conditions.
A company's strategy is a ''work in progress" and evolves over time because of...A. the
importance of developing a fresh strategic plan every year (which also has the benefit of
keeping employees from becoming bored with executing the same strategy year after
year)
A creative, distinctive strategy that delivers a sustainable, competitive advantage is
important because..a strategy that yields a competitive advantage over rivals is a
company's most reliable means of achieving aboveaverage profitability and financial
performance.
A creative, distinctive strategy that sets a company apart from its rivals and that gives it a
sustainable competitive advantage..) signals that the company has a bold, ambitious
strategic intent that places the achievement of strategic objectives ahead of the
achievement of financial objectives A creative, distinctive strategy that sets a company
apart from rivals and that gives it a sustainable competitive advantage..c) is a company's
most reliable ticket to above-average profitability—indeed, the tight connection between
competitive advantage and profitability means that the quest for sustainable competitive
advantage always ranks center stage in crafting a strategy.
A luxury hot-tub manufacturer offered monogrammed bathrobes as a gimmick when their
hot tubs did not sell. Their monogrammed bathrobes became famous among some
women and led to a line of exclusive bath products for women. The bathtub manufacturer
established shops in various regional locations and hired celebrities to market their
products to enhance sales. Today, its products are sold through retail outlets and online
sites throughout the world. Which of the following is accurate?. B) Creating a subbrand
that offered exclusive bath products for women was an emergent strategy.
A pharmaceutical giant acquires a manufacturer of rare specialty drugs to improve its
falling share prices and invests all its wealth into the deal. Due to a deficit, it agrees to do
a joint venture for the acquisition and involves a major automobile giant to fund the deal.
After a rocky start, the companies now have a strong market position and generate good
profits. Which of the following regarding the company's strategy is true? It is a winning
strategy.
A well-conceived strategy builds a company's..E) ethical worthiness and corporate social
responsibility.
A winning strategy is one that..) fits the company's internal and external situation, builds
a sustainable competitive advantage, and improves the company's performance
A winning strategy is one that...C. fits the company's internal and external situation,
builds sustainable competitive advantage, and improves company performance.
A winning strategy is one that...C. fits the company's internal and external situations,
Allset Motors, a manufacturer of self-driving delivery trucks, is working on developing
its next-generation vehicles. It has decided on a strategy of focusing on a narrow buyer
segment and outcompeting its rivals by offering buyers customized vehicles at a lower
cost than its rivals. What basic strategic approach has Allset Motors decided upon. Best-
cost Amy's Drive-Thru, a fast food facility near a college campus, offers healthy,
sustainably grown vegetarian and vegan fast-food at higher prices than its competitors in
the market and has a drive-through and indoor-seated, casual-dining operation. What
strategy is Amy's DriveThru using to gain a competitive advantage? E) A focused
differentiation strategy
An industrial air-conditioner manufacturing giant decides to outsource its operations to a
new geographical location with cheaper labor amidst ongoing labor strikes in a few of its
existing locations (due to proposed job cuts and relocation of the plant offshore). This
draws criticism in its home market and affects its current market position and
productivity. Which of the following would be an appropriate reactive (emergent)
strategy while moving forward?E) Canceling the job cuts till the market situation and
entry operations stabilize
C
Changing circumstances and ongoing managerial efforts to improve the strategy...A.
account for why a company's strategy evolves over time. Changing circumstances and
ongoing managerial efforts to improve the strategy A) account for why a company's
strategy evolves over time Consider the following three companies and their strategies:
Company A is an established database management company that acquires a wellreputed
but small publishing house to enter the booming publishing industry. Company B, a
sports management house, declared bankruptcy during a recent recession but now has
created a television network that airs regional sports events. Company C, a package
delivery business, is a startup based on delivery efficiency models created by a few
students and delivers almost all kinds of packages. Which of the following describes the
use of strategies by these companies accurately? B) All three companies employ
deliberate strategies.
Crafting a strategy involves A) blending deliberate, planned initiatives with emergent,
unplanned reactive responses to changing circumstances, while abandoning planned
strategy elements that have failed in the marketplace.
Crafting a strategy involves...C. stitching together a proactive/intended strategy and then
adapting first one piece and then another as circumstances surrounding the company's
situation change or better options emerge.
Crafting and executing strategy are top-priority managerial tasks because...C. there is a
compelling need for managers to proactively shape how the company's business will be
conducted and because a strategyfocused enterprise is more likely to be a stronger
bottom-line performer than a company whose management views strategy as secondary
and puts its priorities elsewhere.
Crafting and executing strategy are top-priority managerial tasks becauseB. good strategy
coupled with good strategy execution greatly raises the chances that a company will be a
standout performer in the marketplace. Different companies across different industries
adopt any one of the five generic strategies to gain competitive advantage. Which of the
following businesses is most likely to use a low-cost provider strategy? D) A baby
products retailer sells unassembled baby furniture produced in China Excellent execution
of an excellent strategy is...A. the best test of managerial excellence and the best recipe
for making a company a standout performer.
G
Good strategy combined with good strategy execution...D. are the most trustworthy signs
of good management.
I
In crafting a company’s strategy, d) Managers need to come up with some distinctive
“aha” element to the strategy that draws in customers and produces a competitive edge
over rivals.
In crafting a strategy, management is in effect saying...d) “among all the many different
business approaches and ways of competing we could have chosen, we have decided to
employ this particular combination of competitive and operating approaches in moving
the company in the intended direction, strengthening its market position and
competiveness, and boosting performance.”
In evaluating proposed or existing strategies, managers should..B) scrutinize the
company's existing strategies on a regular basis to ensure they offer a good strategic fit,
create a competitive advantage, and result in aboveaverage performance.
In evaluating proposed or existing strategies, managers shouldC) scrutinize the company's
existing strategies on a regular basis to ensure they offer a good strategic fit, create a
competitive advantage, and contribute to an above-average performance
In the course of crafting a strategy, it is common for management to.. All of these.
It is normal for a company's strategy to end up being..) a blend of deliberate planned
actions to improve the company's competitiveness and financial performance and as-
needed unplanned reactions to unanticipated developments and fresh market conditions.
it is normal for a company's strategy to end up being…I.D. a blend of proactive actions to
improve the company's competitiveness and financial performance and adaptive reactions
to unanticipated developments and fresh market conditions.
M
Management's story line for how and why the company's business approaches will
generate revenues sufficient to cover costs and produce attractive profits and returns on
investment.B. best describes what is meant by a company's business model.
Managers in all types of businesses must develop a clear answer for which of the
following questions? ) What is the set of actions that we need to take to outperform the
company's competitors and achieve superior profitability
Managers of every company should be willing and ready to modify their strategy because
A) market conditions and circumstances are changing over time or the current strategy is
clearly failing.
N
One of the keys to successful strategy-making is to come up with one or more strategy
elements that act as a magnet to draw customers and yield a lasting competitive edge.
Rainbow Resorts Inc. has multiple tropical resorts in various locations. In a crowded
market that caters to all kinds of consumers, this resort caters mainly to LGBTQ
customers with a guaranteed hassle-free holiday experience at a premium price. What
strategy is Rainbow using to gain competitive advantage.. A focused differentiation
strategy
T
The competitive moves and business approaches a company’s management is using to
grow the business, stake out a market position, attract and please customers, compete
successfully, conduct operations, and achieve organizational objectives is referred to as
its...Strategy
The competitive moves and business approaches a company's management is using to
grow the business, compete successfully, attract and please customers, conduct
operations, respond to changing economic and market conditions, and achieve
organizational objectives is referred to as its A) strategy
The difference between a company's strategy and a company's business model is that D.
strategy relates broadly to a company's competitive moves and business approaches
(which may or may not dto profitability) while its business model relates to whether the
revenues and costs flowing from the strategy demonstrate that the business is viable from
the standpoint of being able to earn satisfactory profits and returns on investment.
The essence of strategy is A) developing lasting success that can support growth and
secure the company's future over the long term
The heart and soul of a company's strategy-making effort...e) involves coming up with
moves and actions that produce a durable competitive edge over rivals.
The most important aspect(s) of a company's business strategy A) are the actions and
moves in the marketplace that managers take to gain a sustainable competitive advantage
The most trustworthy signs of a well-managed company are..C. good strategy-making
combined with good strategy execution.
To which of the following firms is the term "repeatedly evolving strategy" most
applicable?B) A mobile company, established in a saturated market, that aims at a
quarterly release of new products
W
What is the foremost question in running a business enterprise?..A. What must managers
do, and do well, to make a company a winner in the marketplace?
What separates a powerful strategy from a run-of-the-mill or ineffective one is...d)
management's ability to forge a series of moves, both in the marketplace and internally,
that sets the company apart from rivals, tilts the playing field in the company's favor, and
produces sustainable competitive advantage over rivals.
Which of the following firms uses an emergent strategy?E) A microbrewer invests in
building community water wells during a drought.
Which of the following is a frequently used strategic approach to setting a company apart
from rivals and achieving a sustainable competitive advantage? E. All of these
Which of the following is a not a frequently used strategic approach to setting a company
apart from rivals and achieving a sustainable competitive advantage…Copying rivals on
their competitive moves Which of the following is an issue not likely to be addressed by
a company's business strategy? E) Actions and approaches to mimic rivals' moves in the
marketplace
Which of the following is not an element of a company's business strategy? E) Actions to
revise the company's financial and strategic performance targets
Which of the following is not included in proven approaches to winning a sustainable
competitive advantage? Crafting a broad-cost provider strategy
Which of the following is not one of the basic reasons that a company's strategy evolves
over time.A. The need on the part of company managers to initiate fresh strategic actions
that boost employee commitment and create a results-oriented culture.
over time?The need on the part of company managers to make no adjustments to the
company's business model.
Which of the following is not one of the central questions in evaluating a company’s
business prospects? What are the key products or service attributes demanded by
consumers?
Which of the following is not something a company’s strategy is concerned with?b) How
quickly and closely to copy the strategies being used by successful rival companies
Which of the following is not something a company's strategy is concerned with?
Management's choices about how quickly and closely to copy the strategies being used by
successful rival companies
Which of the following is not typically a trigger to an evolving strategy?E) The need to
respond to short-term swings in the stock market Which of the following questions ought
to be used to distinguish a winning strategy from a so-so or flawed strategy?Is the
strategy well matched to the company's situation, helping the company achieve a
sustainable competitive advantage and resulting in better company performance?
Which one of the following does not account for why a company's strategy evolves from
one version to another?A. A desire on the part of company managers to develop new
strategy elements on the fly .
Which one of the following questions can be used to test the merits of one strategy over
another and distinguish a winning strategy from a mediocre or losing strategy?E. How
well does the strategy fit the company's situation?
Winning a competitive edge over competitors generally hinges on which of the
following?E. All of these.
Top-down planning that emphasizes formal strategy formulation and leaves the
implementation issues to lower management levels is known as externally-oriented planning.


improved?

system
Mercosur
NAFTA
euro
All of the following reflect categories of organizational risk as a result of climate change EXCEPT
sustainability risk.

perspective
flexibility
All of the following reflect activities of a learning organization EXCEPT  alienating competitors
in the industry
According to Alfred Chandler  All of the above (A) high-tech industries are defined by "paths
of learning." B) companies spring from an individual entrepreneur's knowledge, which then
evolves into organizational knowledge. C) once a corporation has built its learning base to
the point where it has become a core company in its industry, entrepreneurial start-ups are
rarely able to successfully enter. D) organizational knowledge can become a competitive
advantage. E) All of the above)
Strategic management is that set of managerial decisions and actions that determine the
longrun performance of a corporation. Which one of the following is NOT one of the basic
elements of the strategic management process? statistical process control


opportunities and threats in light of corporate strengths and weaknesses is known as
strategy formulation
office equipment)
competitors.
Which of the following is an example of a corporate strategy? Diversify product line to appeal
to more people
corporate

employees
Which of the following is an example of a program? Reduce final assembly time to three days
by having suppliers build plan sections.
A set of sequential steps or techniques that describe in detail how a particular task or job is to
be done is referred to as a standard operating procedure
equilibrium
continuous

According to Henry Mintzberg, the three most typical approaches to strategic decision-making
are entrepreneurial, adaptive, and planning.
gathering of appropriate information for situation analysis, the generation of feasible
alternative strategies, and the rational selection of the most appropriate strategy.
number of governmental agencies, and a surprising number of large corporations is adaptive
The mode of strategy formulation used when top management has a reasonably clear idea of
the corporation's mission and objectives, but it chooses to develop a series of tentative or
partial strategies instead of developing full-blown strategies is called logical incrementalism

environment.
The relationship among the board of directors, top management, and shareholders is referred
to as corporate governance.
decisions
implement
A highly involved board does all of the following EXCEPT  manage the everyday operations of
the organization
rubber stamp

board's corporation
The theory which states that problems arise in corporations because top management no
longer is willing to bear the brunt of their decisions unless they own a substantial amount of
stock in the corporation is called  agency theory
directors
conflict
operating employee

stockholders.
All of the following reflect survey findings of the reasons for which individuals serve on a board
EXCEPT willing to always agree with executive decisions.
All of the following are true of the dual chair/CEO position EXCEPTfirms with a dual chair/CEO
role have significantly better stock performance.

oversight of firms.
In implementing the Sarbanes-Oxley Act, the SEC required in 2003 that a company disclose  if
it has adopted a code of ethics that applied to the CEO and the CFO.
are getting larger.

Which of the following provides an example of a transformational leader? A) Phil Knight at Nike
has energized his corporation and commanded respect. B) Louis Gerstner proposed a new
corporation.
strategic planning
people? 10
responsibility.
Friedman
Economist Milton Friedman has argued that a business's only responsibility is to => A) maximize
profits and stay within the rules of the game.
According to Archie Carroll, the responsibility that management of a business organization has
to produce goods and services of value to society so that the firm may repay its creditors and
stockholders is called => C) economic responsibilities.
According to Archie Carroll, the responsibilities defined by government in laws for management
to obey are => A) legal responsibilities.

The term "social responsibility," according to Archie Carroll, can be viewed as a combination of
an => A) organization's ethical and discretionary responsibilities.
Archie Carroll's four responsibilities listed in order of priority are => C) economic, legal, ethical,
and discretionary.

As societal values evolve, it is likely that the ________ responsibilities of today may become the
________ responsibilities to tomorrow. => C) discretionary; ethical
price? => B) 20%
sustainability.
In order for a business to be sustainable, it must satisfy which of Carroll's responsibilities? => E)
all of the above
activities.
Resource Center
According to a 2013 survey by the Ethics Resource Center, which of the following was cited as a
significant positive trend? => A) The percentage of firms providing ethical training rose to an all-
time high of 81%.

Which of the following is the most common reason given by surveyed executives for bending
the rules to attain their objectives? => A) organizational performance required it
relativism.
relativism
quality
According to Kohlberg, the first level of moral development, characterized by concern for self, is
called => D) pre-conventional.



In support of whistle-blowers, the U.S. False Claims Act gives whistle-blowers what percentage
of any damages recovered in cases where the government is defrauded? => B) 15-30%
above
or profession.
whistleblowers.
Morality is defined as => B) a general rule of conduct of personal behavior, based on religious or
philosophical grounds.
not enforce ethics or morality.
rights that should be respected in all decisions, thus avoiding interfering with the rights of
others is called => A) individual rights approach.
impartial in the distribution of costs and benefits to individuals and groups is called => D) justice
approach.
Treating people in the same way who are similar on relevant dimensions such as job seniority,
is an example of => D) distributive justice.
Issues in affirmative action such as reverse discrimination are examples of conflicts between
=>C) distributive and compensatory justice.

account is ethical or not, one would ask if it optimizes the satisfactions of all stakeholders. => B)
utility
Which of the following is NOT descriptive of external environmental scanning? => E) Used to
Which of the following is NOT one of the eight sociocultural trends mentioned in the text? => D)
Increasing food consumption.
A company with significant assets and activities in multiple countries is known as a(n) ________.
=> A) multinational corporation
corporation.
strategic factors
According to Porter's model, a low force can enable the company to earn greater profits and
can be regarded as a(n) => B) opportunity.
scale
Which of the following is NOT descriptive of a high level of bargaining powers of buyers? => E) A
Which of the following is NOT descriptive of a high level of bargaining power of suppliers? => A)
Substitutes are readily available.
power of suppliers
An industry dominated by a few large firms, all of which struggle with product differentiation, is
known as => B) consolidated.
In which type of international industry do corporations tailor their products to the specific
needs of consumers in a particular country? => D) multidomestic industry
markets.
A) global.
for multinational corporations in an industry, the industry will tend to become A) global. => C)
multidomestic.
What is a set of business units or firms that "pursue similar strategies with similar resources?"
=> A) strategic group

To succeed in a hypercompetitive industry, companies must be willing to => D) cannibalize their

own successful product lines.
A table which summarizes the key success factors within a particular industry is called a(n) => E)
industry matrix.

screening them.
modeling.
writing.
least 15 scenarios.
called => B) EFAS
When a company determines that a competency provides a competitive advantage,Barney

D) organization.
A corporation's ability to exploit its resources is referred to as its A) business expertise.=> B)

capabilities.
competencies.
The ability of competitors to use duplicated resources and capabilities to imitate the other
firm's success is called => E) replicability.
Knowledge that can be easily articulated and communicated is known as => B) explicit
knowledge.
On the continuum of resource sustainability, where would streaming movies be placed?=> D)

A linked set of value-creating activities beginning with basic materials provided by suppliers and
ending with distributors getting the final product into the hands of the ultimate consumer is
The part of an industry's value chain that is most important to a company and the point where
its greatest expertise and capabilities lie is called the company's => B) center of gravity.
value chain.
small, entrepreneur-dominated companies with one or two product lines that operate in a
small niche market, with employees acting as jack-of-all trades.
for employees.
The breadth of an organization's culture or the extent to which units throughout an

organization share a common culture is also known as => C) cultural integration.
mix.
performance.
The process of taking a new technology from the laboratory to the marketplace is called=> D)
When scientists concentrate on quality control and the development of design specifications
and improved production equipment, it is referred to as => C) engineering R&D.
The proposition that silicon chips double in complexity every 18 months is referred to as=> B)
Moore's Law.
In Christensen's book, The Innovator's Dilemma, he explains that established market leaders
are typically reluctant to move in a timely manner to a new technology. This reluctance to
switch technologies is because the resource allocation process in most companies gives priority
to those projects with the greatest likelihood of generating a =>good return of investment.
sequentially, but the work and sequence of the process vary? => E) intermittent system

continuous system
______ is the impact of a specific change in sales volume on net operating

income=>D)Operating leverage
because it is consistent for all organizations within a particular industry
work teams.
systems
All of the following reflect criticisms of the SWOT analysis EXCEPT => C) provides a rational link
to strategy implementation.
In the development of a SFAS matrix, the first step is to => C) list the most important EFAS and
IFAS items.
propitious niche
Company.
The technique that illustrates how management can match the external opportunities and
threats with its strengths and weaknesses to yield four sets of strategic alternatives is called a
(an) => D) TOWS Matrix.
In a TOWS Matrix, SO Strategies => A) are generated by thinking of ways in which a company or
business unit could use its strengths to take advantage of opportunities.
In a TOWS Matrix, ST Strategies => D) consider a company's or unit's strengths as a way to avoid
threats.

According to Porter, the term that applies to the breadth of a company's or business unit's
target market is called => A) competitive scope.

buyer group or geographic market and attempts to seek a cost advantage in its targeted
segment? => E) cost focus

differentiation
companies by developing orphan drugs to target diseases that affect fewer than 200,000
people. This is an example of which of Porter's generic strategies? =>C) differentiation focus

Which of the following is NOT one of the risks of the focus strategy? => D) The exit of focusers
from the industry.

64) Most entrepreneurial ventures follow => B) focus strategies.
companies compete for relatively small shares of the total market in a(n)=>B) fragmented
industry.

A method developed in the mid-1990s as an efficient means to quickly consolidate a

fragmented industry can be referred to as a(n) => B) strategic rollup.

and quality.
mover.
every category of competition from price to promotion to distribution channel?=> D) frontal
assault
When Kimberly-Clark introduced Huggies disposable diapers against Procter & Gamble's market
leading Pampers, they were using the offensive tactic known as a(n) => B) frontal assault.
Which offensive tactic proposes an indirect approach against the established competitor such
as changing the rules of the game? => B) bypass attack
When Yamaha entered the market with a broader range of pianos, keyboards, and other
musical instruments, it was using which offensive tactic? => C) encirclement
encirclement
warfare
According to Porter, strategies to raise structural barriers include all of the following EXCEPT =>
C) decrease scale economies.
industries who pool their resources to gain a benefit that is too expensive to develop alone is
the => D) mutual service consortia
partnership.
Which of the following is NOT considered a strategic alliance success factor? => B) Operate with
short term time horizon.
Which strategy specifies the firm's overall direction in terms of its general orientation towardgrowth,
the industries or markets in which it competes, and the manner in which it coordinates activities and
transfers resources among business units? => corporate
Which kind of corporate strategy deals with the firm's overall orientation toward growth? =>directional
strategy
Which kind of corporate strategy deals with the manner in which the firm coordinates activities and
transfers resources and cultivates capabilities among product lines and business units?=> parenting
strategy
Which one of the following directional strategies is most frequently used in corporations? A) stability =>
growth
Which external growth strategy involves two or more corporations joining in a stock exchange and from
which only one corporation survives? =>mergers
Which of the following strategies was being used when Allied Corporation and Signal Companies formed
Allied Signal? =>mergers
Which external growth strategy was demonstrated when Procter & Gamble completely absorbed
Gillette? =>acquisitions
Which of the following is NOT a reason why the growth strategy is so seductive? =>A large and
growing firm attracts more acquisition offers.

concentration.
Ford Motor Company's use of company resources to build its River Rouge Plant outside of Detroit so
that iron ore could enter into one end of the plant and a finished automobile could exit out of the other
end is called =>A) vertical growth.
The purpose of vertical growth is to =>take over a function previously provided by a supplier or by a
distributor.
The purchase of Carroll's Foods for its hog-growing facilities by Smithfield Foods, the world's
largest pork processor, is an example of =>backward integration.
The ability for Nike to manufacture its own shoes and then build stores for distribution is an example of
=>forward integration.
A disadvantage of vertical integration is that it=>creates

exit barriers.
services in the marketplace when the transaction costs of buying goods on the open market becomes
too great has been proposed by =>transaction cost economics.
In many cases, ________ integration is more profitable than ________ integration.=> backward; forward
When Bristol-Myers Squibb purchased 17% of ImClone's common stock to gain access to a new drug, it
was using which type of integration? =>E) quasi integration
A firm's expansion into other geographic locations and/or increasing the range of products and
services offered to current markets is called =>horizontal growth.
Which strategy did Delta choose when it acquired Northwest Airlines to obtain access to Northwest's
Asian markets? =>A horizontal integration strategy.
As defined by the text, synergy is the concept =>that two firms can generate more profits together than
separately.


unattractive and that the firm lacks outstanding skills that it could easily transfer to related products or
services in other industries?=> conglomerate diversification
With conglomerate diversification, the focus is on =>financial

considerations.
An MNC uses which international strategy for entering a foreign market by simply shipping goods
produced in the company's home country to other countries for marketing to minimize risk and to
experiment with a specific product? =>exporting
An MNC uses which international strategy for entering a foreign market by associating itself with a firm
in the host country or a government agency in that country to combine resources and expertise needed
for the development of a new product or technologies? =>joint ventures
One benefit of a U.S. company entering a joint venture with an international firm is that it=>reduces the
risks of expropriation.
An MNC uses which international strategy for entering a foreign market by purchasing another company
already operating in the area developing synergistic benefits gained from acquiring strong
complementary product lines and a good distribution network? =>acquisitions
In international dealings, green-field development is=>when a corporation chooses to build a facility

from scratch allowing it the freedom to design the plant, choose suppliers, and hire its work force.
An MNC uses which international strategy for entering a foreign market by combining the higher labor
skills and technology available in the developed countries with the lower cost labor available in the
developing countries? =>production sharing
In international dealings, turnkey operations are =>E) contracting for construction of operating facilities
in exchange for a fee.
Management contracts are used in international dealings =>when an MNC has a large amount of
management talent available and chooses to use its personnel to assist a firm in a host country for a
specified fee and period of time.
Research comparing concentric with conglomerate diversification concludes that =>the

relationship between relatedness and performance is curvilinear.
The controversy surrounding external versus internal growth finds =>internal growth appears to be
superior financially to external growth.
The stability strategy is appropriate for all of the following circumstances EXCEPT=>appropriate
when the industry is in decline.
Which strategy is most appropriate as a temporary strategy to enable a corporation to consolidate its
resources after prolonged rapid growth in an industry now facing an uncertain future?=>pause/proceed
with caution strategy
Which strategy is most appropriate for a company in an industry in which the future is expected to
continue as an extension of the present? => no change strategy
Which of the following describes a turnaround strategy? =>Emphasizes improving operational efficiency
and is appropriate when a corporation's problems are pervasive, but not yet critical.
turnaround.
Which one of the following is NOT a characteristic of a firm that has chosen a captive company strategy?
=>Probably most appropriate for a company with a strong competitive position in a growing industry.
In which strategy does management hope that another company will have the necessary resources and
determination to return the company to profitability? =>sell out
Which strategy involves giving up management of the firm to the courts in return for some settlement of
the corporation's obligations? =>bankruptcy
Which strategy did Circuit City use in 2008 when it converted its retail stores to cash?=> liquidation
One of the most popular aids to developing corporate strategy in multi-business corporations views
business units in terms of the cash they generate is called=> portfolio analysis.
In the Boston Consulting Group's Growth-Share Matrix, the relative competitive position of a product,
division, or corporation is defined as => its market share divided by that of the largest other
competitor.
The growth-share matrix of the Boston Consulting Group suggests that the excess cash being generated
by "cash cows" should be used to fund => "question marks."
According to the BCG Growth-Share Matrix, market leaders that typically are at the peak of their
product life cycle and are usually able to generate enough cash to maintain their high share of the
market are called =>stars.
Products that typically bring in far more money than is needed for maintenance of their market
share are called => cash cows.
According to the BCG Growth Share Matrix, those products with low market share that do NOT have
the potential to bring in much cash are called => dogs.
According to the BCG Growth-Share Matrix, the key to success is=> market
share.
Which of the following is NOT one of the limitations of the BCG Growth Share Matrix? =>There are too
many aspects of overall competitive position included.
The GE Business Screen has been criticized because =>it can get
quite complicated and cumbersome.
Which of the following is NOT one of the advantages of portfolio analysis? =>It provides
the basis for impartial objectivity from which to make decisions.
Which of the following is NOT one of the limitations of portfolio analysis? =>It relies too heavily on
objective judgments.
Corporate parenting generates corporate strategy by focusing on =>the core competencies of the parent
corporation and on the value created from the relationshipbetween the parent and its units.
According to the text, 75% of a company's market value is derived from its=> intangible
assets.
According to Campbell, Goold, and Alexander in their parenting-fit matrix, when parent companies
create more value than any of their rivals would if they owned the same businesses, they have
=>parenting advantage.
units to improve the competitive position of one or more business units is called A)
vertical strategy. =>horizontal strategy.
combinations of consumer paper products, they are said to be engaging in=>

multipoint competition.
department so that corporate and business unit performance improves and resource productivity is
maximized? =>E) functional strategy
The pricing, selling, and distributing of a product is referred to as a(n) ________ strategy.=> A) marketing
The type of marketing strategy in which a company captures a larger share of an existing market for
current products through market saturation or market penetration or develops new markets for
current products is called =>A) market development.
When Smith & Wesson puts its name on others' products, like men's cologne, it is using which marketing
strategy?=>line extension
A company may use which of the following trade promotions to "push" their products through the
distribution system? =>brand advertising
When a company spends a large amount of money on trade promotion in order to gain or hold shelf
space in retail outlets, a company is using a ________ strategy. =>push
Which type of pricing takes advantage of the demand curve while the product is still novel and
competitors are few? =>skim pricing
Which type of pricing attempts to hasten market development and offers the pioneer the opportunity to
utilize the experience curve to gain market share and dominate the industry?=> penetration pricing
Which of the following is NOT a goal of financial strategies? =>Institute a new product development plan
to generate profit potential.
All of the following are benefits for a company to raising its debt levels EXCEPT=> increase in
shareholder value.
A popular financial strategy in which a company is acquired in a transaction financed largely by debt
eventually paid off with money generated from the acquired company's operations or by sale of its
assets is => the leveraged buyout.
management buyouts.
When a company exchanges 100 shares of stock worth $10 each for 50 shares worth $20 each,
they are using =>reverse stock split.
________ strategy. =>R & D

technological leader. =>A company which imitates the products of
competitors is referred to as a(n) A) technological follower.
When Intel opened four small-scale research facilities adjacent to universities to promote the cross-
pollination of ideas, they were using which approach to R & D? =>open innovation

functional strategy of technological leadership a business unit should=>

innovate in other activities to increase buyer value.
appropriate R&D strategy would be to => create low-cost ways of performing value activities.
If a company wishes to be a technological follower and also pursue a differentiation strategy, the
appropriate R&D strategy would be to => adapt the product or delivery system more closely to buyer
needs by learning from the leader's experience.
When a company determines how and where a product or service is to be manufactured, the level of
vertical integration in the production process, the deployment of physical resources, and relationships
with suppliers, the company is developing its ________ strategy. =>operations
A flexible manufacturing system is defined by the text as=> C) the

grouping of parts into manufacturing families to produce a wide
variety of mass-produced items.
positioned in the same order as the parts are processed, this setup is known as=>
connected line batch flow.
When there are highly automated assembly lines making one mass-produced product using little
human labor, this setup is called =>A) dedicated transfer lines.

Continuous improvement is an operations concept developed in=> Japan.
When Dell Computer's customers use the Internet to design their own computers, this demonstrates
which manufacturing strategy? =>mass customization
The purchasing strategy in which the purchasing company orders a particular part from several
vendors is => multiple sourcing.
The concept of ________ was taken one step further in JITII, in which vendor sales representatives
usually have desks next to the purchasing company's factory floor, attend production status meetings,
visit the R&D lab, and analyze the purchasing company's sales forecasts. => sole sourcing
The purchasing strategy in which two suppliers are the sole suppliers of different parts, but are also
the backup suppliers for each other's parts is=> E) parallel sourcing.
Three trends are evident in logistics: outsourcing, the use of the Internet, and => A)
centralization.
Many companies have found that outsourcing logistics=>reduces

costs and improves delivery time.
Avon is an example of a company that demonstrated having a diverse workforce=> A) can be

a competitive advantage.
Purchasing a product or service from an outside contractor that had been previously provided internally
is called =>outsourcing.
A study of 30 firms revealed that outsourcing can lead to a ________ percent reduction in costs. =>
9
According to an American Management Association survey, the most heavily outsourced activities were
=>general and administrative.
The key to outsourcing is to purchase from the outside only those activities that=> A) are not
key to the company's distinctive competence.
A company which has previously found great success pioneering an extremely successful product that is
presently trying to turn another "long-shot" into a likely success would be an example of which strategy
to avoid? => hit another home run
A company which keeps up by imitating a leading company's strategy while ignoring its own strengths
and weaknesses is an example of which strategy to avoid? =>follow the leader
A company which enters into a spirited battle for market share by cutting prices and offering special
deals would be an example of which strategy to avoid? => arms race
A company which has invested so heavily in a particular strategy that it will not consider a change in this
strategy even if it is not successful, would be an example of which strategy to avoid? =>losing hand
When considering acceptable alternative strategies, the most important criterion is the ability of the
proposed strategy to deal with =>the specific strategic factors developed in the S.W.O.T. analysis.
The technique used to help strategic managers choose among alternative choices by defining the task
environment, developing a set of various forecasts, and using pro forma financial statements is called
=>corporate scenarios.
The first step in constructing a corporate scenario is to =>use

industry scenarios to develop a set of assumptions about the task
environment.
Which one of the following is NOT true of risk? =>Managers who

own a significant amount of stock in their firms are less likely to
engage in risk-taking actions.
According to the text, which one of the following is NOT one of the reasons why innovations seem to
occur more often in small firms rather than in large, established corporations? =>Small firms are
completely ignorant of risk management.
options approach.
Which one of the following is NOT one of the questions that management should raise in their attempt
to assess the importance to the corporation of stakeholders' concerns? =>A) Which stakeholder group
should be represented on the board of directors?
The type of strategy used to influence a corporation's key stakeholders in order to increase their
support of corporate activities is =>political strategy.
If there is little fit between a strategic alternative under consideration and the corporate culture,
which of the following is one of the considerations that must be taken into account? (Take a chance
on ignoring the culture by implementing the strategic alternative;Manage around the culture and
change the implementation plan; Try to change the culture to fit the strategy; Change the strategy to
fit the culture.) =>All of the above.
Cultural backgrounds affect strategic choices. Korean executives emphasize ________ in their decisions;
whereas U.S. executives emphasize ________. =>Industry attractiveness, sales and market share;
projected demand, discounted cash flow, and ROI
proposed alternative strategy. To avoid this consensus trap, which technique assigns a group or
individual to identify potential pitfalls and problems with a proposed alternative strategy in a formal
presentation?=> A) devil's advocate
proposed alternative strategy. To avoid this consensus trap, which technique involves presenting two
conflicting views (the thesis and the antithesis) presented in a debate format?=> dialectical inquiry
Once the best strategic alternative is selected, the broad guidelines for its implementation are then
defined by=> policies.
When crafted correctly, an effective policy accomplished all but which of the following? (It forces
trade-offs between competing resource demands; It tests the strategic soundness of a particular
action; It grants employees freedom to experiment within its constraints; It sets boundaries within
which employee must operate while granting them freedom to experiment within those constraints.)
=>All of the above

experienced when they attempted to implement a strategic change. Which of the
following is NOT one of the implementation problems? Time allocated for
implementation was adequate, but was used inappropriately.

organization
procesto gain an insight as to what work needs to be done and to gain cooperation in
the implementation of the strategy.
needed to accomplish a single-use plan and whose use is to make the strategy action-
oriented isprogram.
execution
isprocedures.
services of one unit with that of another unit which can reduce inventory, the synergistic
effect is known aseconomies of scale or scope.
follows strategy.
and progressive.

need more decision-making freedom than top management is willing to delegate to them,
this type of crisis is calleda crisis of autonomy.
control.
bankruptcy.
Which of the following is NOT descriptive of the matrix structure? Although employees often
work on one or more product units, they maintain only one direct supervisor.

the site.
Which of the following is NOT a principle of reengineering identified by Hammer? determines

internal as well as external customers
took months15
manufacturing program originally developed by Toyota is known asLean Six Sigma.
rotation.
job
workers more responsible and accountable for the performance of the job? form
natural work units
development 2
For each $1 spent on training, Motorola estimates it receives ________ in productivity gains within
three years. => D) $30
Executives with a particular mix of skills and experiences may be classified as an executive type and
paired with => B) a specific corporate strategy
extensively with product lines to learn about their business. B) It is possible that a current CEO may
not be appropriate to implement a new strategy. C) The harvest stage occurs when executives'
performance.)
standardization procedures would be appropriate for a corporation following a stability strategy? =>
E) cautious profit planner
marketing/sales.
succession.
Which is NOT one of the competencies Hewlett Packard uses for identifying potential executives? =>
E) Manage around the external environment.
According to a study of downsizing in the automobile-related industry, which one of the following is
NOT a problem associated with inappropriate downsizing? => A) Produced long-term benefits.
Which of the following is NOT a guideline proposed for successful downsizing? => C) Make across-
the-board cuts.
One of the big common mistakes by corporations sending executives on global assignments is NOT
=> B) educating executives about customs and values in other countries.
modified to make it more compatible with the new strategy, what should the organization do? => C)
Move forward very carefully by introducing a set of culture-changing activities.
out the strategy
communication

cultural and managerial practices between the merger partners, and no strong imposition of
cultural change on either company? => C) integration

When Admiral was acquired by Maytag Corporation, the Admiral employees were willing to accept
the dominance of Maytag's strong quality-oriented culture. This demonstrates which approach to
managing culture? => D) assimilation
success.
Which of the following is NOT descriptive of the purpose of Management By Objectives (MBO)? =>
B) MBO operates independently and requires very little supervision or administration.
One research study of TQM successes and failures concluded that a key ingredient in TQM programs
is => C) top management.
According to Hofstede, which cultural dimension describes the extent to which a society accepts an
unequal distribution of power in organizations? => D) power distance
individual freedom and independence of action compared with a tight social framework and loyalty
to the group? => C) individualism-collectivism
According to Hofstede's cultural dimensions, which country scored the highest on individualism? =>
D) United States
According to Hofstede's cultural dimensions, which country scored lowest on power distance? => C)
Germany
According to Hofstede, which cultural dimension describes the extent to which a society emphasizes
the importance of hard work, education, and persistence as well as the importance of thrift? => E)
long-term orientation
GLOBE.
____ plans can be defined as alternative plans that can be put into effect if certain key events do
not occur as expected.? D) Contingency
_______ advantage tends to be self-sustaining so long as key external and internal factors that
underlie it (them) remain(s) stable. Positional
_______ are quantitative criteria commonly used to evaluate strategies. D) Financial ratios
_________ is not part of an external audit? Analyzing financial ratios
__________ is/are corrective actions a firm could take during strategy evaluation. Revising the
business mission,Issuing stock, Revising objectives (3 đáp án)
___________ are perhaps the most commonly used criteria to evaluate strategies. Financial
ratios
______________ occur(s) when the nature, types and speed of changes overpower an
individual’s or organization’s ability and capacity to adapt. Future shock
______________is/are the best way to overcome individuals’ resistance to change in strategy

evaluation. Participation
_____is/are the source of a firm’s ____, which is/are the source of the firm’s_____ Resources,
capabilities, core competencies
“A possible and desirable future state of an organization” is called: Vision
“Identifying and evaluating key social, political, economic, technological and competitive
A
A budget is a statement of a corporation’s program in dollar terms. Which is NOT true of the
budgetary function? only one budget is necessary
A checklist of questions, by area or issue that enables a systematic analysis to be made of various
corporate functions and activities is referred to as a strategic audit
stable and the other one is variable, reflects which strategic orientation?C) analyzers
A company with significant assets and activities in multiple countries is known as a (n) 
multinational corporations
A difference between basic financial planning and forecast -based planning is.....  forecast-
based planning incorporates environmental data and extrapolates current trends
A ferecasting technique using quantitative measures that attempt to discover causal or at least
explanatory factors that link mo or more time series together is called B) statistical modeling
A final broad test of strategy is its ?feasibility.
A firm takes corrective actions during strategy evaluation. Which of the following is NOT a type
of corrective action? Take on more debt
A firm’s mission  is a statement of a firm’s business in which it intends to compete and the
customers which it intends to serve
A goal differs form an objective because it its open-ended
A large business has three levels in its hierachy of strategy corporate, business and functional
A non-quantitative approach to forecasting that requires simply the presence of people with some
knowledge of the situation to be predicted is called D) brainstorming
A program or tactic is  a system of sequential steps
A relationship that illustrates the term complementor is A) Microsoft and Intel

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. ) IFE Matrix
opportunities and threat? D)EFE matrix (external)
opportunities and threats. C) EFE Matrix
A revised __________ should indicate how effective a firm’s strategies have been in response to
key opportunities and threats. EFE matrix
A strategy is a company’s? Game Plan to outsmart competitor
the most widely practiced form of forecasting? E) trend extrapolation
concerned about theC) threat of substitute products
industry matrix
industry matrix
a(n)_______ stance towards change. Proactive
According to author Alvin Toffler, what occurs when the nature, types, and speed of changes
overpower an individual's or organization's ability and capacity to adapt? Future shock
According to Greenley, strategic management offers all of these benefits except that it
maximizes the effects of adverse conditions and changes.
According to Porter, the corporation is most concerned with the intensity of competition
within its industry
According to Porter’s model, a low force can enable the company to earn greater profits and can
be regarded as a(n) opportunity
According to Porter’s model, a strong or high force is likely to reduce profits and can be
regarded as a(n) threat
According to researchers, all of the following encourage individuals to accept change EXCEPT?
E) being overpowered by the nature, types, and speed of changes.
According to the five factors model, an attractive industry would have all of the following
characteristics EXCEPT low barriers to entry
According to the text, the strength of each of the six driving forces varies according to the B)
stage of industry evolution
achieve company objectives refers to its? Strategy
Adequate and timely ________ is/are the cornerstone of effective strategy evaluation. feedback
All of the following are forces that create high rivalry within an industry EXCEPT fast
industry growth
All of the following are principles of good organizational governance, as established by

BusinessWeek, EXCEPT? D) at least three directors are current or former company executives.
All of the following are reasons strategy evaluation is more difficult today except? the decreasing
difficulty of predicting the future with accuracy.
All of the following are reasons strategy evaluation is more difficult today EXCEPT? the
increasing time span for which planning can be done with any degree of certainty.
All of the following are reasons to be completely open as opposed to secretive with the strategy
process EXCEPT? openness limits rival firms from imitating or duplicating the firm's strategies
All of the following are reasons to be completely open with the strategy process except?
openness limits rival firms from imitating or duplicating the firm's strategies.
many industries EXCEPT? growing health consciousness
All of the following reflect activities of a learning organization EXCEPT....  alienating

All of the following statements are true except? strategy evaluation should be performed at the
end of specified periods.
All of these are Richard Rumelt’s criteria to evaluate a strategy except? consonance
All the following are reasons strategy evaluation is more difficult today except? the decreasing
difficulty of predicting the future with accuracy .
Already the European Union and 113 nations including Australia, Mexico, and Canada have
________ IFRS rules? E) adopted or soon plan to use
An analysis of the economic segment of the external environment would include all of the
following EXCEPT the move toward a contingent workforce
An external analysis enables a firm to determine what the firm might do
An industry dosninated by a few large firms, all of which struggle with product differentiation, is
known as B) consolidated
An organisation’s strategy generally forms over a period of time as events unfold
behavior to reflect new knowledge and insights is a learning organization
An organization's ability to adapt successfully to changing circumstances refers to its?

corporate agility.
Annual objectives? Serve as guidelines for action,directing and channeling efforts and activities
of organization members
Annual objectives? Should be measurable
As a part of the strategic management process, evaluation and control is concerned with all of the
following EXCEPT determining top management benefits packages
As defined in this course, a policy is a broad guideline for making decisions
businesses. It is______=>Objective
C
Changes in the organization’s management, marketing, finance/accounting, R&D and CIS
strengths and weaknesses should be the focus of a revised? IFE matrix.
Changes in the organization's management, marketing, finance/accounting, R&D and CIS

strengths and weaknesses should be the focus of a revised? IFE matrix ( Internal)
Climate models are projecting hotter, drier, and less predictable climates, resulting in a
significant drop in water run-off in most of the Middle East and North Africa by? C) 2050.
opportunities, reflect which strategic orientation? D) prospectors
Competitive advantage can best be described as  increased efficiency
Competitive advantage is normally the result of superiority in resources, skills, or? position
Competitive advantage normally is the result of superiority in all of these areas except?
consistency.
Competitive advantage normally is the result of superiority in resources, skills and…..?

position.
Competitive advantages are normally the result of superiority in one of three areas. Which of the
following is one of them? Resources
Competitors are more likely to respond to competitive actions that are taken by market leaders
Controls need to be ________ rather than ________. action oriented; information oriented
Corporations that lack a consistent strategy-structure-culture relationship reflect which strategic

orientation? B) reactors
Corrective action should do all of the following except? avoid external opportunities.
Corrective action should do all of the following EXCEPT? avoid external opportunities
Corrective actions are __________ as a result of strategy evaluation. almost always needed
Corrective actions are almost always ________ except when external and internal factors have
not significantly changed and the firm is progressing satisfactorily toward achieving stated
objectives? needed
Corrective actions are expected to? A) strengthen an organization's competitive position in its
industry.
Corrective actions are not needed when? external and internal factors have not significantly
changed.
Corrective actions should? strengthen an organization's competitive position in its industry .
Corrective actions should? strengthen an organization’s competitive position in its industry.

D
Describe the four general forces in the societal environment. Answer: The four general forces in
the societal environment are political-legal, and sociocultural Economic forces regulate the
exchange of materials, money, economic, technological, energy, and information Technological
forces generate problem-solving inventions Political legal forces allocate power and provide
constraining and protecting laws and regulations Sociocultural forces regulate the values, mores,
and customs of society.
External assessment is performed in which of the strategic management phase? Strategy

formulation stage
F
Familiarity with local environments usually makes gathering and evaluating information much
easier for ________ organizations than for ________ ones? small; large
FedEX stipulates specific employee behaviors including how a driver dresses to how kes are held
when approaching a customer’s door. This is an example of a procedure
Financial ratios are used to compare a firm's performance over different time periods, to compare
the firm's performance to industry averages, and to compare a firm's performance with? the
Financial ratiosm are used to compare a firm's performance over different time periods, compare
the firm's performance to industry averages, and compare a firm's performance with ? the
Firms with few competitive resources are more likely delay responding to competitive actions
formulation, Implementation, control and evaluation

H
How does a revised External Factor Evaluation Matrix compare to an existing External Factor
Evaluation Matrix? The weightings may be different ,The key factors may be different, The total
weighted score may be different.(3 đáp án)
I
If success for one organizational department means failure for another department , then
strategies may be?inconsistent.
If you discover during the course of strategy evaluation that major changes have occurred in the
firm's internal strategic position, you should? take corrective actions
important part of an external audit. political

___________is not part of an external audit. Analyzing financial ratios
In a fragmented industry E) all of the above
In a Spencer Stuart 2017 survey, women made up ________ percent of new directors appointed
at S&P 500 companies.? 36
In a survey of 50 corporations, which of the following was rated as one of the three top benefits
of strategic management? clearer sense of strategic vision for the firm
In addition to Porter’s Five Forces, another force addded in the text is 
In evaluating strategies, __________, one of Rumelt’s criteria for evaluating strategies, refers to
the need for strategists to examine sets of trends. consonance
In evaluating strategies, which one of Rumelt's criteria for evaluating strategies refers to the
need for strategists to examine sets of trends ? Coherence
In the airline industry, frequent-flyer programs, ticket kiosks, and e-ticketing are all examples of
capabilities that are valuable
In the EFAS Table, the indicator of how well a panicular company is responding to current and
expected factors in its external environment is characterized by the AVIFAS C) total weighted
score
In the final phase of strategic management, strategic information is available to.... people
throughout the organisation
In the important publication used to evaluate a firm's strategy, the Fortune 50 includes all of the
following except? E)the top hospitals
of consumers in a particular country? D) multidomestic industry
Industry analysis is primararily concerned with a corporations’s  task enviroment
Ineffectiveness and/or inefficiencies indicate the need for ? some form of correction action.
Ineffectiveness and/or inefficiencies indicate the need for? reductions in pay.
Intel was able to gain a significant cost advantage over its competitors in the production and sale
of microprocessors because of  economies of scale
Internal analysis enables a firm to determine what the firm can do
International financial reporting standards (IFRS) comprise approximately ________ pages? B)

5,000
is the foundation of blue ocean strategyValue Innovation
KAPKAL Power’s interested to achieve a 10 percent return on equity (ROE) in their core
electric
L
Large-scale, future-oriented plans, for interacting with the competitive environment to
List eight current sociocultural trends in the U.S. that are transforming North America and the
world. Answer: Eight current sociocultural trends in the U.S. that are transforming North
American and the world are as follows: Increasing environmental awareness Growing health
consciousness Expanding seniors market Impact of Generation Y boomlet Decline of the mass
market Changing pace and location of Changing household compos Increasing diversity of workf
Long-term objectives should be all of the following except: continually changing
Mintzberg's notion of "crafting" strategies?? suggests that strategic decision making be based
primarily on holistic thinking, intuition, creativity, and imagination
Modern organizational realities demand many skills of employees. Which of the following is
NOT a required skill?Patience
Most organizations can afford to pursue ________ corporate-level strategies at any given time?
A) only a few
Most quantitative criteria are geared to ________ objectives rather than ________ objective?
annual; long - term
Most quantitative criteria are geared to ________ objectives rather than to ________ objectives.?
C) annual; long-term
Most strategy literature advocates that strategic management is? more of a science than an art
Most strategy literature advocates…….. that strategic management is? A) more of a science than
an art.
New entrants to an industry are more likely when (i.e., entry barriers are low when…) product
differentiation in the industry is low
O
Of the following, which one would NOT be considered one of the components of a mission
statement? XYZ shall hire only those individuals who have with sufficient educational levels
so as to be of benefit to our customers
One ground rule necessary for effective brainstorming is B) propose ideas without mentally
screening them.
One of the benefits of globalization is  economies of scale
Only high-priority areas require the insurance of ________ plans? contingency

Organizing means an identifiable group of people contributing their efforts towards the
attainment of same goal. It is important at the time of: Strategy Implementation
In a turbulent and competitive free enterprise environment, a firm will succeed only if it takes
consumers to try a new software. Which of Porter's forces does this reflect?D) bargaining power
of suppliers
Political variables have a significant effect on? Strategy formulation and implementation
Product design, manufacturing, transportation, customer use, packaging, product disposal and
corporate rewards should reflect ________ considerations to develop constructive relations with
employees, consumers, suppliers and distributors? environmental
Product differentiation refers to the belief by customers that a product is unique
of modern strategic planning is more in the that is part of a future oriented planning process than
in any resulting written strategic plan. strategic thinking and organisational learning
corporations. The first phase is..... basic financial planning
Research suggests that which of the following is one of the best ways to overcome individuals'
resistance to change in strategy evaluation? A) Participation
S
state, and national basis in all countries in which we do business”. This is a mission statement
that contains: Concern for Public Image
Strategic decisions are based on what managers____ ,rather than on what they_____ . Forecast;
know
“To improve economic strength of society and function as a good corporate citizen on a local,
Strategic decisions ostensibly commit the firm for? A long time, typically five years
Social responsibility is a critical consideration for a company’s strategic decision makers since?
The mission statement must express how the company intends to contribute to the societies that
sustain it
Strategic issues require which level of management decisions?Top

Strategic management involves The_________ ,directing,_____and controlling of a company’s
strategy-related decisions and actions. Planning; organizing
Strategic management is that set of managerial decisions and actions that determine the long-run
performance of a corporation. Which one of the following is not one of the basic elements of the
strategic management process? statistical process control
Strategic management is? Based on the use of quantitative and qualitative information
Strategic management process activate in the sequence of ______?Environmental scanning,

Strategy
Strategic planning within a small organization... should be a formalised and sophisticated

system
Strategic planning within a small organization.... may be informal and irregular
Strategic-management audit is known as: Environmental scanning

Forecasting tools can be broadly categorized into two groups. Those are: Qualitative,
Quantitative
________ identifies a firm’s major competitors and their particular strengths and weaknesses in
relation to a sample firm’s strategic position. Competitive Profile Matrix
Strategy -evaluation activities should be performed? on a continuous basis.
Strategy evaluation at the _______ level involves using specific performance measures-
qualitative and quantitative-for each functional area? functional
Strategy evaluation is based on? Production quality
Strategy evaluation is becoming __________ with the passage of time. increasingly difficult
Strategy-evaluation activities should be performed? on a continuous basis
Strategy-evaluation activities should ideally be performed? C) on a continuous basis.
Strategy-formulation concepts and tools? Do not differ greatly for differ and type of
organizations
Success today? is no guarantee of success tomorrow
Suppliers are powerful when they offer a credible threat of forward integration
Switching costs refer to the one-time costs customers incur when buying from a different
supplier
T
the ability of a corporation to shift from one dominant strategy to another is called... strategic
flexibility
The ability of an organization to reshape its environment is described by.... the strategic choice
perspective
The ability of competitor to use duplicated resource and capab to imitate the other firm's
successis called? replicability
The acronym SWOT stands for Strengths, Weaknesses, Opportunities, and Threats
The act of oversight and direction for an organization is referred to as? governance
The collective strength of the interaction of potential entrants, buyers, substrates, suppliers, firm
rivalry, and other stakeholders determine  the ultimate profit potential in the industry measured
in serms of long-run return on invested capital
The combination of the degree of complexity and the degree of change ex called?
environmental uncertainty
The competitive moves and business approaches a company's management business approaches
a company's management is using to grow the business, compete sucessfully, attract and please
customers, conduct operation, responds to changing economic and market conditions and achive
organizational objectives is referred to as its? mission
The corporate level is where top management directs overall strategy for the entire
organization
The corporate mission is best described by which one of the following? The purpose or reason
for the corporation's existence.
The corporate mission is best described by which one of the following the purpose of reason
for the corporation existence
The corporation’s task environmentincludes those elements or groups within an organization’s

industry
The corporation's task environment? includes those elements or groups within an

opportunities and threats in light of corporate stregths and weakness is known as  strategy
formulation
The emphasis of strategic management is on... long-term performance
The environmental segments that comprise the general environment typically will NOT include
substitute products or service
The existence of a performance gap should caue managers to question their objective, strategic
and policies
The first activity in the strategy-evaluation process is to? examine the underlying bases of a
firm's strategy
The fundamental purpose for the existence of any organization is described by its mission
The fundamental purpose of an organization’s mission statement is to define the

organization’s purpose in society
The GAAP standards are comprised of ________ pages. 25,000
The goal of the organization’s is to capture the hearts and minds of employees, challenge them,
and evoke their emotions and dreams vision
The highest amount a firm can charge for its products is most directly affected by the cost of
substitute products
The idea that the positioning of one's ________ can enhance their combined effectiveness is
familiar to military theorists, chess players, and diplomats. resources
The immediate external environment includes ? Competitors
The integrated internationalization of markets and corporations is called.... globalization
The issues priority matrix used enviromental scanning is composes of two axis or dimensions
which are labeled  probability of occurience and probable impact on the corporation.
number of govermental agencies, and a suprising number of large corporations is adaptive
The mode of strategic formulation used when top management has a reasonably clear idea of the
corporation’s mission and objectives, but choose to develop a series of tentative or partial
strategis instead of developing full-blown strategies is called logical incrementalism
environments to key people within the corporation is referred to as.... environmental scanning
The mornitoring, evaluation, and disseminating of information from the external and internal
environments to key people within the corporation is referred to as? Environmental Scanning
The most important aspects of a company's business strategy? the actions and moves in the
marketplace that managers take to sam sustainable competitive advantage.
The most widely used forecasting technique used after trend extrapolation is C) scenario-writing
The organization’s corporate mission statement should contain explicit descriptions of their
competitive advantages
The origin of competitive advantage lies in the ability to identify and respond to
environmental change well in advance of competition
The primary focus of strategic management is the total organisation
program, budgets, and procedures is strategy implementation
The process of performing an external audit needs to include: as many managers and empl
possible.
The purpose of strategy evaluation is to? alert management to problems or potential problems.
competencies is called? Imitability
The S in SWOT stands for.....  strengths
The stategic management process is shaped by?  external factors such as the industry's
economic and competitive conditions and internal factors such as the company's collection of
resources and capabilities.
The strategic Management model present the following process for strategy formulation?
Mission -- Objectives -- Strategies -- Policies.
The strategic management model pressents the following process for strategy formulation
mission, objective, strategies and policies
The strategic management process is the full set of commitments, decisions, and actions
required for the firm to achieve above-average returns and strategic competitiveness.
The strategy -evaluation process should foster? mutual understanding.

The T in SWOT stands for...  threats
The task environment... includes those elements or groups within an organizations industry
The task of strategy choice involves developing plans and activities which will improve the
organisation’s performance and competitive position
The term used to describe new products, services, methods, and organizational approaches that
allow businesses to achieve extraordinary returns is.... innovation
other successful organization is known as? Institution Theory
other successful organizations is known as.... institution theory
The three organizational levels are corporate level, business level, functional level
The time horizon involved with regard to basic financial planning is usually..... one year
The triple bottom line refers to which of the following?  traditional profit/loss, social
responsibility and environmental responsibility
primarily global are (1) the pressure for coordination within the MNCs operating in that industry
and (2): markets. A) the pressure for local responsiveness on the part of individual country
markets.
The type of strategy, which achieves coporate and business unit objectives and strategies by
maximizing resource product is  functional
The type of strategy, which describe a company’s overall direction in terms of its general attitude
toward growth and the management of its various business its  corporate
The type of strategy, which emphasizes the improvement of the competitive position of a
corporation’s products or services in a particular industry or market segment served by a
business unit is  business
The U.S. major home app General Electric, and Electro A) that has evolved from an c B) in
which each company maintained a distinct product line. C) that was once fragmented, but now is
consolidated
The variables structure. culture, and resources pertain to the... internal environment
The various organizational routines and processes that determine how efficiently and effectively
the organization transforms its inputs into outputs are called core competencies
The vision and mission statement can often be found in annual reports.
The__________comprises economic and social conditions,political priorities and technological

developments, all of which must be anticipated,monitored, assessed and incorporated into the
executive’s decision making. Societal environment
Those critical strengh and weeknesses that are likely to determine if a firm will be to take
advantage of opportinity while avoiding threats are called? internal strategic factors.
within any particular industry are known as? key success factors
Through market research, corporations are able to practice_with various products or services so
that managers can discover what niches to seek, which new types of products to develop, and
how to ensure that a company's many products do not directly compete with one another?
market segmentation
To succeed in a hypercompetitive industry, companies must be willing to D) cannibalize their

To succeed in a hypercompetitive industry, companies must be willing toD) cannibalize their

Today, boards of directors are composed mostly of? outsiders.

issues to lower management levels is known as.... externally orientated planing
Trend extrapolation is B) the extension of present trends into the future
trends and events”. Which of the followings best describes this statement? Performing an
external audit
Typically how many strategic decision levels are in the corporate decision-making hierarchy? 3
utility, 14 percent ROE on water resource operations, and 15 percent ROE on support
W
What activity is defined as having alternative plans that can be put into effect if certain key
events do not occur as expected? Contingency planning
What aims to balance long term with short term concerns, financial with non -financial concerns,
and internal with external concerns? The Balanced Scorecard approaches
What aims to balance long-term with short-term concerns, financial with nonfinancial concerns,
and internal with external concerns? B) The Balanced Scorecard approach
What are guides to deci making? policies
What are the key enviromental trens that are judged to have a medium to high probability of
occurrence and a medium to high probability of impact on the corporation?  external strategic
factors
What are the means by which long-term objectives will be achieved? Strategies
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?  Strategic
management
What characterizes the planning mode of strategy formulation? definition c
What corrective actions should a firm take during strategy evaluation? Revising the business
mission, B) Revising objectives C) Issuing stock D) Selling a division
What factor determines the final design of a firm's strategy -evaluation and control system?
The organization's characteristics
What has been shown to permit quick response to change, prevent panic in crisis situations, and
make managers more adaptable? C) Contingency plans
What is a set of business units or firms that "pursue similar strategies with similar resources?" A)
strategic group
What is a set of business units or firms that “pursue similar strategies with similar resources"?
strategic group
What is happening to strategy evaluation with the passage of time? ) It is becoming increasingly
difficult
What is meant by the term ‘Stakeholder’? A person who is related with a business
What is not a characteristic of an effective evaluation system?Information - oriented
What is the basis for quantitative financial evaluation? Financial ratios
What is the best type of strategy evaluation? Continuous
What is the best way to overcome individuals' resistance to change in strategy evaluation?
Participation
What is the central purpose of strategic evaluation? Evaluate effectiveness of strategy to achieve
organisational objectives
What is the cornerstone of effective strategy evaluation? Adequate and timely feedback
What occurs when the nature, types and speed of changes overpower an individual's or
organization’s ability and capacity to adapt? Future shock
What permits quick response to change, prevents panic in crisis situations, and makes managers
more adaptable? C) Contingency planning
What term is defined as "a systematic process of objectively obtaining and evaluating evidence
to interested users"?Auditing
What term refers to a systematic process of objectively obtaining and evaluating evidence
to interested users? E) Auditing
What term refers to the need for strategists to examine sets of trends, as well as individual trends
in evaluating strategies? Coherence
When a company's core competencies are superior to those of competitors, these are known as?
Distinctive Competencies
When an industry relies heavily on government contracts,which forecasts can be the most
When an organization is evaluating its strategic position, which is not one of the strategic
questions that an organization generally may ask itself? are we on target to hit our financial
objectives next year?
When defining strategic management the most important thing to remember is that it is A
living evolving process
and are given wide latitude in their actions to achieve them, there can be? dysfunctional
behavior.
and are given wide latitude in their actions to achieve them, there can be? dysfunctional behavior
When examining the corporate valae chain of a particular product or service, which one the
following is not one of the primary activities that usually occur? Auditing and accounting
Company would be concerned with the B) bargaining power of buyers.
When strategic management have a willingness to reject unfamiliar as well as negative

information it is referred to as  strategic myopia
for multinational corporations within a particular industry, the industry will tend to become A)
global
for multinational corporations in an industry, the industry will tend to C) multidomestic
When the value chains of two seperate products or sevices share activities, such as the same
market channels, in order to reduce cost, this is an example of? economies of scope
When you discover major changes have occurred in the firm’s internal strategic position while
conducting strategy evaluation, you should? take corrective actions
When you discover major changes have occurred in the firm's internal strategic position while
conducting strategy evaluation, you should? E) take corrective actions.
and when it is important to build consensus and develop needed resources before committing the
entire corporation to a specific strategy  logical incrementalism
Which barrier to entry do corporations such as P&G use to force new entrants to spend heavily to
overcome existing customer loyalty? product differentiation
Which barrier to entry is demonstrated by Microsoft's MS-DOS operating system?  cost

Which barrier to entry uses brand indentification to force new entrants to spend heavily to
overcome existing customer loyalty?  product differentiation
Which barrier to entry uses cost advantages associated with large size?  economies of scale
Which barrier to entry uses cost advatages associated with large size? economies of scale
Which board of director's duty falls under the category of control and oversight over
management? C) Select the CEO
Which environment was generally perceived by business people to be something to exploit, not
conserve, until the twentieth century? The natural environment
Which environment was generally perceived by business people to be a given until the 20 th
century? the natural environment
Which individuals are most responsible for the success and failure of an organization? 
Strategists
Which individuals are most responsible for the success and failure of an organization? Strategists
Long-term objectives should be all of the following except? Continually changing.
What are guides to decision making? policies
Which group would be classified as a stakeholder? Employees, Suppliers, Banks, Communities
Which is the following is NOT a major force in the societal environments? labor forces
Which is the largest are group of the current generation in all developed countries? Baby
Boomers
Which is the largest of the current US generations?  Baby boombers
Which of the following a not descriptive of intense rivalry among firms? E) product offerings
Which of the following activities are included in reviewing underlying bases of the strategy
phase of strategy-evaluation framework? Compare planned to actual progress
Which of the following are signs of weakness in a company’s competitive position? A declining
market share, poor product quality and few sales in market
It directs at developing new products before competitor improving product quality or at
improving manufacturing processes to reduce costs.? Research and development
Which of the following defines how each individual business unit will attempt to achieve its
mission? . Business strategy
Which of the following defines what business or businesse the firm is in or should be in?
Corporate strategy
Which of the following focuses on supporting the corporate and business strategies?
Operational strategy
Which of the following is an element of a firm’s remote external environment? Political

agencies
Which of the following is an example of a program? reduce final assembly time to three days
Which of the following is an example of a corporate strategy diversity product line to appeal
to more people
Which of the following is an example of a global industry? C) tires
Which of the following is an example of a policy  75
Which of the following is an example of an objective to increase sales by ten percent over last
year
Which of the following is an example of competing on quick response? a firm’s products are
introduced into the market faster than its competitors
Which of the following is an issue considered in developing corporate strategies? What

resources do we have to implement our strategies?
Which of the following is an issue likely to be addressed by a company's business strategy?

All of these are pertinent in identifying a company's strategy
Which of the following is function of corporate culture? provide a sense of identity, define
boundaries, and generate commitment from members of the organization.
Which of the following is important , because organizations face dynamic environments in

which key external and internal factors often change quickly and dramatically? ) Strategy
evaluation
Which of the following is not a characteristic of strategic management that makes it different
from other types of management? It concerns the present direction of the organization
Which of the following is not a component of the Balanced Scorecar? Social responsibility
Which of the following is NOT a corrective action a company might take to correct unfavorable
variances? Taking punitive action
Which of the following is not a cultural product? Emotions
Which of the following is NOT a guideline for an effective strategic planning process? B) It
should employ International Financial Reporting Standards (IFRS).
Which of the following is NOT a major element of the strategic management process?
Assigning administrative tasks
Which of the following is NOT a major force in the societal enviroment?  labor force
Which of the following is not a major question to ask in thinking stategically aboutindustry and
competitive condition in a given industry? How many companies in the industry have good
track records for revenue growth and profitability?
Which of the following is not a reason for the increasing difficulty of evaluating strategies?
Product life cycles are longer today than ever
Which of the following is no a reason for the increasing difficulty of evaluating strategies?
Product life cycles are longer
Which of the following is not a reason why some firms prefer to conduct strategic planning
in secret? It enhances understanding, commitment and communication within the firm.
Which of the following is not a stage of strategy formulation techniques? Matching stage
ST Strategies is an important strategy to? Overcome external threats
Which of the following is not a support activity of the value chain? marketing and sales
Which of the following is not an advantage of strategic management? It helps improve the
political, economic, social and technological environment of the organisation
Which of the following is not an element of the organization’s task environment?

technological development
Which of the following is not an element of the organization's task environment? 

Which of the following is not an entry barrier to an industry? bargaining power of suppliers
Which of the following is NOT descriptive of "threat of substitute products or services?" C)

Identifying substitutes is relatively easy since they look similar
Which of the following is NOT descriptive of a high level of bargaining powers of buyers? A
Which of the following is NOT descriptive of a high level of bargaining power of suppliers? A)
Substitutes are readily available
Which of the following is not descriptive of external environmental scanning? used to identify
major stockholders
Which of the following is NOT descriptive of external environment scanning?  used to

identify major stockholders
Which of the following is NOT descriptive of external environment scanning? used to identify
strengths and weaknesses
Which of the following is not descriptive of intense rivalry among firms? product offerings
Which of the following is NOT descriptive of the "threat of new entrants"?  does not impact
industry attractiveness
Which of the following is not descriptive of the threat of substitute products or services?
Which of the following is not elements of the company's business strategy? Actions to revise
the company's financial and strategic performance targets
Which of the following is not included in measuring organizational performance? Comparing

results to competitors’ expectations
Which of the following is NOT included in measuring organizational performance? Comparing

results to competitors' expectations
Which of the following is not one of the eight sociocultural trends mentioned in the text?
increasing food consumption
Which of the following is not one of the four triggering events listed in the text that is the
stimulus for a strategic change annual strategic planning conference
Which of the following is NOT one of the general strategic types? A) initiators
Which of the following is NOT one of the perspectives from which the Balanced Scorecard
allows firms to evaluate strategies? Social responsibility
Which of the following resources is used by all organizations to achieve desired objectives? .
Financial resources,b. Physical resources,c. Human resources(3 đáp án)
Which of the following statements about contingency plans is not true? Develop contingency
plans for all contingent events.
Which of the following statements about contingency plans is NOT true? D) Strategists should
plan for all possible contingencies.
Which of the follwing is not a part of strategy implementation? performance evaluation
Which of these is a potential problem associated with using only quantitative criteria for
selecting strategies? Different accounting methodsF can provide different results on many
quantitative criteria.
Which of these is not a key financial ratio? Production quality
Which of these is not an activity included in measuring the organizational performance phase of
strategy evaluation? Taking corrective action
Which of these is the cornerstone of effective strategy evaluation? Adequate and timely feedback
Which of these is/are a basic activity of strategy evaluation?Reviewing the underlying internal
and external factors that represent the bases of current strategies,,Measuring organizational
performance,Taking corrective actions (3 cái đúng)
Which one of the following is an example of a mission with a narrow scope computers vs
office equipment
Which one of the following is an example of mission statement? develop and sell quality
Which one of the following is at the core of strategic management? Adapting the organisation
to a changing external environment
Which one of the following is includes in the firm task environment?  stockholders
Which one of the following is not a primary task of strategic managers? Developing the steps
to follow in implementing operational level plans
Which one of the following is not included in the Porter’s Five Forces modelRivalry among
stockholders
Which one of the following is not part of the process of industry scenariosC) Generate at least 15
scenarios
Which societal force includes demographic trends?  sociocultural forces
Which statement best describes intuition? It should be coupled with analysis in decision-making.
focuses on improving the efficiency of their existing operations? E) defenders
Which the the following is not an element of the organization's task environment?
technological developments

Which type of auditors are specifically responsible for safeguarding the assets of a company? C)
Internal auditors
adjustments made for individual countries around the world?B) global industry
Which type of trend can be exemplified by the increasing numbers of two- income households in
a society? Economic
With regard to the visible or hidden issue, most executives agree that? some strategic
information should remain confidential to top managers
With the passage of time, strategy evaluation is becoming? A) increasingly difficult.

relativism
______ is the impact of a specific change in sales volume on net operating income => D)
Operating leverage
A
A 2011 McKinsey and Company survey found that less than ten percent of a board's time is
spent on current strategy Answer: FALSE
A benefit of the increased disclosure requirements of the Sarbanes-Oxley Act has been more
reliable corporate financial statements. Answer: TRUE
A budget is a statement of a corporation's programs in terms of dollars. Answer: TRUE
A business strategy may include competitive or cooperative strategies. Answer: FALSE


A company may use which of the following trade promotions to "push" their products through
the distribution system? =>brand advertising
A company which enters into a spirited battle for market share by cutting prices and offering
special deals would be an example of which strategy to avoid? => arms race
A company which has invested so heavily in a particular strategy that it will not consider a
change in this strategy even if it is not successful, would be an example of which strategy to
avoid? =>losing hand
A company which has previously found great success pioneering an extremely successful
product that is presently trying to turn another "long-shot" into a likely success would be an
example of which strategy to avoid? => hit another home run
A company which keeps up by imitating a leading company's strategy while ignoring its own
strengths and weaknesses is an example of which strategy to avoid? =>follow the leader

technological leader. =>A company which imitates the
products of competitors is referred to as a(n) A)
technological follower.
A company with significant assets and activities in multiple countries is known as a(n)
________. => A) multinational corporation

A corporation's ability to exploit its resources is referred to as its A) business expertise. => B)
capabilities.
propitious niche
A direct interlocking directorate occurs when two corporations have directors who also serve on
the board of a third firm.  Answer: FALSE
A disadvantage of vertical integration is that

it=>creates exit barriers.
A firm's expansion into other geographic locations and/or increasing the range of products
and services offered to current markets is called =>horizontal growth.
A flexible manufacturing system is defined by the text as=> C)

the grouping of parts into manufacturing families to produce a
wide variety of mass-produced items.
modeling.

A friend of yours was asked to evaluate the effect of an advertising campaign designed to get
people to have their blood pressure checked. After examining the records kept by the blood
pressure units in the target area, your friend showed you the following graph, where X indicates an
observation. What comment will you make to your friend about the advertising campaign? More
observations are needed to determine whether the independent variable is having the intended
effect.
A hierarchy of strategy emphasizes the need for the three levels of strategy to complement and
support one another. Answer: TRUE
A highly involved board does all of the following EXCEPT  manage the everyday operations
of the organization

A linked set of value-creating activities beginning with basic materials provided by suppliers
and ending with distributors getting the final product into the hands of the ultimate consumer is
A method developed in the mid-1990s as an efficient means to quickly consolidate a fragmented

industry can be referred to as a(n) => B) strategic rollup.
A minority percentage of large corporations in the Americas and Europe may keep the firm's
recently retired CEO on the board after retirement since there is a greater likelihood of a conflict
of interest and less objectivity.  Answer: TRUE

options approach.
A popular financial strategy in which a company is acquired in a transaction financed largely by

debt eventually paid off with money generated from the acquired company's operations or by
sale of its assets is => the leveraged buyout.

A strategic decision is rare, consequential, and directive. Answer: TRUE
A strategy maximizes competitive advantage and minimizes competitive disadvantage. Answer:

TRUE
A study of 30 firms revealed that outsourcing can lead to a ________ percent reduction in
costs. => 9
experienced when they attempted to implement a strategic change. Which of the following
is NOT one of the implementation problems? Time allocated for implementation was
adequate, but was used inappropriately.
A survey of directors of U.S. corporations found that the main reason individuals serve on a
board is for the compensation. Answer: FALSE
A table which summarizes the key success factors within a particular industry is called a(n) =>
E) industry matrix.
quality
According to a 2013 survey by the Ethics Resource Center, which of the following was cited as
a significant positive trend? => A) The percentage of firms providing ethical training rose to an
all-time high of 81%.
According to a study of downsizing in the automobile-related industry, which one of the following
is NOT a problem associated with inappropriate downsizing? => A) Produced long-term benefits.
According to Alfred Chandler A) high-tech industries are defined by "paths of learning." B)

companies spring from an individual entrepreneur's knowledge, which then evolves into
organizational knowledge. C) once a corporation has built its learning base to the point where it
has become a core company in its industry, entrepreneurial start-ups are rarely able to
successfully enter. D) organizational knowledge can become a competitive advantage. E) All of
the above
According to an American Management Association survey, the most heavily outsourced

activities were =>general and administrative.
According to Archie Carroll, the responsibilities defined by government in laws for

According to Archie Carroll, the responsibility that management of a business organization
D) organization.
According to Campbell, Goold, and Alexander in their parenting-fit matrix, when parent
companies create more value than any of their rivals would if they owned the same businesses,
they have =>parenting advantage.

account is ethical or not, one would ask if it optimizes the satisfactions of all stakeholders. =>
B) utility
services of one unit with that of another unit which can reduce inventory, the synergistic effect
is known aseconomies of scale or scope.
According to Henry Mintzberg, the three most typical approaches to strategic decision-
making are entrepreneurial, adaptive, and planning.
According to Hofstede, which cultural dimension describes the extent to which a society accepts
an unequal distribution of power in organizations? => D) power distance
individual freedom and independence of action compared with a tight social framework and
loyalty to the group? => C) individualism-collectivism
According to Hofstede, which cultural dimension describes the extent to which a society
emphasizes the importance of hard work, education, and persistence as well as the importance of
thrift? => E) long-term orientation
According to Hofstede's cultural dimensions, which country scored the highest on individualism?
=> D) United States
According to Hofstede's cultural dimensions, which country scored lowest on power distance? =>
C) Germany

According to Kohlberg, the first level of moral development, characterized by concern for self,
is called => D) pre-conventional.


According to organizational learning theory, an organization uses knowledge to improve the fit
between itself and its environment. Answer: TRUE

According to Porter, strategies to raise structural barriers include all of the following EXCEPT
=> C) decrease scale economies.
According to Porter, the term that applies to the breadth of a company's or business unit's target
market is called => A) competitive scope.

According to Porter's model, a low force can enable the company to earn greater profits and can
be regarded as a(n) => B) opportunity.
According to the BCG Growth Share Matrix, those products with low market share that do
NOT have the potential to bring in much cash are called => dogs.
According to the BCG Growth-Share Matrix, market leaders that typically are at the peak of
their product life cycle and are usually able to generate enough cash to maintain their high share
of the market are called =>stars.
According to the BCG Growth-Share Matrix, the key to success is=>

market share.
job
workers more responsible and accountable for the performance of the job? form natural
work units
strategic planning
According to the text, 75% of a company's market value is derived from its=>
intangible assets.
succession.
proposed alternative strategy. To avoid this consensus trap, which technique assigns a group
or individual to identify potential pitfalls and problems with a proposed alternative strategy in
a formal presentation?=> A) devil's advocate
proposed alternative strategy. To avoid this consensus trap, which technique involves
presenting two conflicting views (the thesis and the antithesis) presented in a debate format?
=> dialectical inquiry
communication
According to the text, which one of the following is NOT one of the reasons why innovations
seem to occur more often in small firms rather than in large, established corporations? =>Small
firms are completely ignorant of risk management.
success.

Agency theory suggests that the majority of a board needs to be from outside the firm. 
Answer: TRUE
follows strategy.
All of the following are benefits for a company to raising its debt levels EXCEPT=>
increase in shareholder value.
relativism.
All of the following are true of the dual chair/CEO position EXCEPTfirms with a dual
chair/CEO role have significantly better stock performance.
All of the following reflect activities of a learning organization EXCEPT  alienating

All of the following reflect categories of organizational risk as a result of climate change
EXCEPT sustainability risk.
All of the following reflect criticisms of the SWOT analysis EXCEPT => C) provides a rational
link to strategy implementation.
All of the following reflect survey findings of the reasons for which individuals serve on a
board EXCEPT willing to always agree with executive decisions.
conflict
services in the marketplace when the transaction costs of buying goods on the open market
becomes too great has been proposed by =>transaction cost economics.
continuous system
An example of an objective is "increased profitability," while an example of a goal is "to

increase the firm's profitability in 2010 by 15% over 2009." Answer: FALSE
An industry dominated by a few large firms, all of which struggle with product differentiation,
is known as => B) consolidated.
An MNC uses which international strategy for entering a foreign market by simply shipping
goods produced in the company's home country to other countries for marketing to minimize
risk and to experiment with a specific product? =>exporting
An MNC uses which international strategy for entering a foreign market by associating itself
with a firm in the host country or a government agency in that country to combine resources and
expertise needed for the development of a new product or technologies? =>joint ventures
An MNC uses which international strategy for entering a foreign market by purchasing another
company already operating in the area developing synergistic benefits gained from acquiring
strong complementary product lines and a good distribution network? =>acquisitions
An MNC uses which international strategy for entering a foreign market by combining the
higher labor skills and technology available in the developed countries with the lower cost labor
available in the developing countries? =>production sharing
Archie Carroll's four responsibilities listed in order of priority are => C) economic, legal,
ethical, and discretionary.

and quality.

As defined by the text, synergy is the concept =>that two firms can generate more profits
together than separately.

As more industries become global, strategic management is becoming less important in

positioning a company for long-term competitive advantage Answer: FALSE

As societal values evolve, it is likely that the ________ responsibilities of today may become
the ________ responsibilities to tomorrow. => C) discretionary; ethical
Avon is an example of a company that demonstrated having a diverse workforce=>

A) can be a competitive advantage.
B
Becky was hired to determine what types of recreational programs teenagers want and would use
in the city of Edmonton, Alberta. What type of study was Becky hired to conduct? needs
assessment study
bending the rules to attain their objectives? => A) organizational performance required it
Benjamin is conducting a program evaluation of a new juvenile deterrence program for first-time
offenders. Early indicators delivered to the program coordinator, Captain Smith, are not good –
they indicate that the program is having a negative effect on offending. The Captain, upon hearing
this, wants to prevent a negative evaluation and thus extremely limits Benjamin’s access to data.
What type of problem is this? administrative control
directors
Briefly describe the four basic elements of strategic management.  Strategic management
consists of four basic elements. Environmental scanning is the monitoring, evaluating, and
disseminating of information from the external and internal environments to key people within
the corporation. Strategy formulation is the development of long-range plans for effective
management of environmental opportunities and threats, in light of corporate strengths and
weaknesses. Strategy implementation is the process by which strategies and policies are put into
action through the development of programs, budgets, and procedures. Evaluation and control
is the process in which corporate activities and performance results are monitored so that actual
performance can be compared with desired performance.

By 2012, 56% of the S&P 500 boards had split the role of chairperson and CEO. Answer:
TRUE
C
NAFTA
Climate change has become a growing concern for businesses to include in their corporate
strategies. Answer: TRUE
Codetermination has been used in Germany since the 1950s, but has not been used in the United
States. Answer: FALSE
combinations of consumer paper products, they are said to be engaging
in=> multipoint competition.
Continuous improvement is an operations concept developed in=>

Japan.
Contrast agency theory and stewardship theory.  Answer: Agency theory states that problems
arise in corporations because the agents (top management) are not willing to bear responsibility
for their decisions unless they own a substantial amount of stock in the corporation. The theory
suggests that a majority of a board needs to be from outside the firm so that top management is
prevented from acting selfishly to the detriment of the shareholders. Stewardship theory
proposed that, because of their long tenure with the corporation, insiders (senior executives)
tend to identify with the corporation and its success. Rather than use the firm for their own ends,
these executives are thus most interested in guaranteeing the continued life and success of the
corporation.
Corporate parenting generates corporate strategy by focusing on =>the core competencies of the
parent corporation and on the value created from the relationshipbetween the parent and its
units.
Corporate strategy occurs at the business unit or product level. Answer: FALSE
Cultural backgrounds affect strategic choices. Korean executives emphasize ________ in their
decisions; whereas U.S. executives emphasize ________. =>Industry attractiveness, sales and
market share; projected demand, discounted cash flow, and
D
Define globalization and identify the role of strategic management in globalization.
Globalization is the internationalization of markets and corporations. It has changed the way
that modern corporations do business. As more industries become global, strategic management
is becoming an increasingly important way to keep track of international developments and
position the company for long-term competitive advantage.
bankruptcy.
E
Economist Milton Friedman has argued that a business's only responsibility is to => A)
maximize profits and stay within the rules of the game.
whistleblowers.
Environmental sustainability reflects business practices to reduce a firm's impact on the physical
environment  Answer: TRUE
or profession.
Executive leadership is the directing of activities toward the accomplishment of corporate

objectives. Answer: TRUE
Executives with a particular mix of skills and experiences may be classified as an executive type
and paired with => B) a specific corporate strategy
Explain the continuum of board involvement.  Answer: The board of directors' continuum
reflects the degree of involvement (from high to low) in the strategic management process.
Boards can range from phantom boards with no real involvement to catalyst boards with a very
high degree of involvement. Passive phantom or rubber stamp boards typically never initiate or
determine strategy unless a crisis occurs.
Explain the difference between a direct and indirect interlocking directorate. Answer: A
direct interlocking directorate occurs when two firms share a director or when an executive of
one firm sits on the board of a second firm. An indirect interlock occurs when two corporations
have directors who also serve on the board of a third firm.
Explain the impact of the Sarbanes-Oxley Act on corporate governance.  Answer: In response
to the many scandals uncovered since 2000, the U.S. Congress passed the Sarbanes-Oxley Act
(SOX) in June 2002. This act was designed to protect shareholders from the excesses and failed
oversight that characterized failures at Enron, Tyco, WorldCom, Adelphia Communications,
Qwest, and Global Crossing, among other prominent firms. Several key elements of Sarbanes-
Oxley were designed to formalize greater board independence and oversight. For example, the
act required that all directors serving on the audit committees be independent of the firm and
receive no fees other than for services as a director. Additionally, boards may no longer grant
loans to corporate officers. The act also established formal procedures for individuals to report
incidents of questionable accounting or auditing. Firms are prohibited from retaliating against
anyone reporting wrong doing. Both the CEO and CFO must certify the corporation's financial
information. The act banned auditors from providing both external and internal audit services to
the same company. The bill also required that firms identify whether they have a "financial
expert" serving on the audit committee, which is independent from management.
F
competencies.
For each $1 spent on training, Motorola estimates it receives ________ in productivity gains
within three years. => D) $30
people?-->10
For the last 20 years, Marcia has been tracking the divorce and marriage rates in Canada. What
type of research is Marcia conducting? monitoring study
Ford Motor Company's use of company resources to build its River Rouge Plant outside of
Detroit so that iron ore could enter into one end of the plant and a finished automobile could
exit out of the other end is called =>A) vertical growth.
functional strategy of technological leadership a business unit

should=> innovate in other activities to increase buyer value.
G
General Electric led the transition from strategic planning to strategic management during the
1980s--> Answer: TRUE
Generally, the smaller the corporation, the less active is its board of directors. Answer: TRUE
Globalization is the internationalization of markets and corporations. Answer: TRUE

Gwyneth, an advocate of sexual reform, knows (from research studies) that condoms can prevent
sexually transmitted diseases as well as pregnancy. She decides to educate first-year students at her
university about the advantages of using condoms through a short film depicting various
characters. Some of the characters portray traditional mindsets (refusing to wear condoms); some
portray the more liberal mindsets (proponents of condoms); and some are transitional characters
whose attitudes move from traditional to more liberal with respect to condom use. Gwyneth plans
on recording the rates of pregnancy/STDs for the first-year students at her university before and
after the educational short film. She also plans to compare her results with those of first-year
students at a different university with similar demographics who do not watch the educational short
film. What is the experimental design that Gwyneth chose to use? multiple time-series design
has to produce goods and services of value to society so that the firm may repay its creditors
and stockholders is called => C) economic responsibilities.
Henry Mintzberg discovered that strategic formulation is a regular, continuous process. Answer:
FALSE
GLOBE.
I
If a company wishes to be a technological follower and also pursue a differentiation strategy,

the appropriate R&D strategy would be to => adapt the product or delivery system more closely
to buyer needs by learning from the leader's experience.
appropriate R&D strategy would be to => create low-cost ways of performing value
activities.
out the strategy
modified to make it more compatible with the new strategy, what should the organization do? =>
C) Move forward very carefully by introducing a set of culture-changing activities.
If there is little fit between a strategic alternative under consideration and the corporate
culture, which of the following is one of the considerations that must be taken into account?
(Take a chance on ignoring the culture by implementing the strategic alternative;Manage
around the culture and change the implementation plan; Try to change the culture to fit the
strategy; Change the strategy to fit the culture.) =>All of the above.
In a study that examined whether using mediation in divorces resulted in “fairer” settlements, what
is the intervention? the use of mediation

In a TOWS Matrix, SO Strategies => A) are generated by thinking of ways in which a company
or business unit could use its strengths to take advantage of opportunities.
In a TOWS Matrix, ST Strategies => D) consider a company's or unit's strengths as a way to

avoid threats.
In Christensen's book, The Innovator's Dilemma, he explains that established market leaders are
typically reluctant to move in a timely manner to a new technology. This reluctance to switch
technologies is because the resource allocation process in most companies gives priority to
those projects with the greatest likelihood of generating a => A) good return of investment.
In implementing the Sarbanes-Oxley Act, the SEC required in 2003 that a company disclose 
if it has adopted a code of ethics that applied to the CEO and the CFO.
In international dealings, green-field development is=>when a corporation chooses to build a

facility from scratch allowing it the freedom to design the plant, choose suppliers, and hire its
work force.
In international dealings, turnkey operations are =>E) contracting for construction of operating
facilities in exchange for a fee.
In many cases, ________ integration is more profitable than ________ integration.=>

backward; forward
In order for a business to be sustainable, it must satisfy which of Carroll's responsibilities? =>
E) all of the above
work teams.
In support of whistle-blowers, the U.S. False Claims Act gives whistle-blowers what
In the Boston Consulting Group's Growth-Share Matrix, the relative competitive position of a
product, division, or corporation is defined as => its market share divided by that of the largest
other competitor.
In the development of a SFAS matrix, the first step is to => C) list the most important EFAS
and IFAS items.
In the externally oriented planning phase, plans are developed by heavily involving the input of
managers from lower levels  Answer: FALSE

In which strategy does management hope that another company will have the necessary
resources and determination to return the company to profitability? =>sell out
of consumers in a particular country? => D) multidomestic industry
Interlocking directorates are a useful method for gaining both inside information about an
uncertain environment and objective expertise about potential strategies and tactics. They are,
however, increasingly frowned upon because of the possibility of collusion. Answer: TRUE
Issues in affirmative action such as reverse discrimination are examples of conflicts between =>
C) distributive and compensatory justice.
procesto gain an insight as to what work needs to be done and to gain cooperation in the
implementation of the strategy.
Jake examined the impact of a new street lighting program on crime in seven neighbourhoods. He
measured crime rates at one-month intervals for six months before the new street lights were
erected and for six months after. Which design did he use? time series
Jeff Bezos, CEO of Amazon.com, uses the S team (senior management) to engage in continuous
strategic planning. Answer: TRUE
Joshua conducted a survey of domestic violence incidents in Canada, and then administered the
survey again every two years for a decade to see if things have improved for those involved. What
type of research did Joshua conduct? a monitoring study
K
Knowing a company is mindful of its impact on the environment seldom changes consumer
buying habits.  Answer: FALSE
Knowledge that can be easily articulated and communicated is known as A) tacit knowledge =>
B) explicit knowledge.
L
not enforce ethics or

management buyouts.
Logical incrementalism is a useful decision-making mode when the environment is rapidly

changing and when it is important to build consensus. Answer: TRUE
M
Management contracts are used in international dealings =>when an MNC has a large amount
of management talent available and chooses to use its personnel to assist a firm in a host country
for a specified fee and period of time.
management to obey are => A) legal responsibilities.
above
Many companies have found that outsourcing logistics=>

reduces costs and improves delivery time.
Melissa wanted to compare the provinces and territories on various aggregated statistics that reflect
the social conditions in those provinces and territories so that she could make regional
comparisons. Which design should she use? social indicators design
Mintzberg's entrepreneurial mode is sometimes referred to as "muddling through" since this

decision- making mode tends to be more reactive than proactive in the search for new
opportunities. Answer: FALSE
Morality is defined as => B) a general rule of conduct of personal behavior, based on religious
or philosophical grounds.
morality.
Most entrepreneurial ventures follow => B) focus strategies.
N
Nate did an evaluation research study on how after-school programs in schools affected the
delinquency rates of tweens. As part of his study, Nate examined the changes in availability of
after-school programs outside of schools as well as changes in enforcement of delinquency laws.
Which term describes this analysis of factors outside his specific evaluation design? measuring
experimental contexts
Nominal participation reflects a board involved to a limited degree in the performance or review
of selected key decisions, indicators, or programs of management. An active board approves,
questions, and makes final decisions on mission, strategy, policies, and objectives. It also has
active board committees and performs fiscal and management audits. The catalyst board takes
the leading role in establishing and modifying the mission, objectives, strategy, and policies. It
also has a very active strategy committee.
O
of an => A) organization's ethical and discretionary responsibilities.
On the continuum of resource sustainability, where would streaming movies be placed? => D)
Once the best strategic alternative is selected, the broad guidelines for its implementation are
then defined by=> policies.
One benefit of a U.S. company entering a joint venture with an international firm is that
it=>reduces the risks of expropriation.
Company.
screening them.
One of the benefits of strategic management is a clearer sense of vision for the firm Answer:
TRUE
One of the big common mistakes by corporations sending executives on global assignments is
NOT => B) educating executives about customs and values in other countries.
One of the most popular aids to developing corporate strategy in multi-business corporations
views business units in terms of the cash they generate is called=> portfolio analysis.
One research study of TQM successes and failures concluded that a key ingredient in TQM
programs is => C) top management.
took months15
One tenet of the learning organization is to maintain stability. Answer: FALSE
companies by developing orphan drugs to target diseases that affect fewer than 200,000 people.
This is an example of which of Porter's generic strategies? => C) differentiation focus
power of suppliers
board's corporation
Outside directors may be executives of other firms but are not employees of the board's
P
differentiation
percentage of any damages recovered in cases where the government is defrauded? => B) 15-
30%
Performance results are monitored at the strategy formulation phase of the strategic
management process. Answer: FALSE
Population ecology is a theory that proposes organizations can and do adapt to change by
imitating other successful organizations.  Answer: FALSE
Population theory states that problems arise in corporations because the agents (top
management) are not willing to bear responsibility for their decisions unless they own a
substantial amount of stock in the corporation.  Answer: FALSE
positioned in the same order as the parts are processed, this setup is known
as=> connected line batch flow.

concentration.
Pregnant women planning to deliver their babies in hospital A were given a poison control test.
After the delivery of their babies, the new moms attended a two-hour training session on poison
control. One week later, at their babies’ one-week check-up exam, the new moms retook the
poison control test. Located in the same city, pregnant women planning to deliver their babies in
hospital B were given a poison control test. One week later, at the babies’ one- week check-up
exam, these new moms retook the poison control test. What kind of design is being used? a
nonequivalent control group
price? => B) 20%
Producers of TV shows that depict violence often ignore the studies that indicate children who
watch violence are more likely to be aggressive, have fewer friends, and have poorer relationships
with their parents than children who do NOT watch violent shows. Which of the following is the
most likely reason that producers of the violent TV shows ignore the implications? because the
findings conflict with the producers’ vested interests
Products that typically bring in far more money than is needed for maintenance of their
market share are called => cash cows.
Professor Henley wants to compare the use of the legal system in different countries. Henley
examines the number of arrests per 1,000 population, the number of jury trials per 1,000 court
cases, the number of lawyers per capita, and the number of people incarcerated per 1,000
population. What type of evaluation is Professor Henley doing? social indicator research
Punctuated equilibrium describes organizations as evolving through relatively long periods of

stability punctuated by relatively short bursts of fundamental change. Answer: TRUE
Purchasing a product or service from an outside contractor that had been previously provided
internally is called =>outsourcing.
R
Refer to Exhibit 12.1. What is the experimental stimulus? the study skills class
Refer to Exhibit 12.1. What problem is illustrated? logistics
Refer to Exhibit 12.1. What type of design is being used? the nonequivalent control group design
Research comparing concentric with conglomerate diversification concludes that

=>the relationship between relatedness and performance is curvilinear.
Research indicates that a broad mission statement may be best in a turbulent environment.
Answer: FALSE
resources?" => A) strategic group
Roberto wanted to examine the impact of newly enacted seat belt laws. He did so by comparing the
number of deaths due to car crashes before and after the laws were implemented. He did this in
multiple provinces and compared the changes in deaths with provinces that did not implement seat
belt laws in order to more clearly understand the impact of the new laws. Which design did he use?
multiple time-series design.
ROI
S
seniority, is an example of => D) distributive justice.
Sergio set up an evaluation study at a private high school to examine the impact of wearing
uniforms on delinquent behaviour. Midway through the study, various senior principals interfered
with the assignment of students to the group that wore uniforms and with data gathering for the
measurement of delinquent behaviour. Which of the following did Sergio experience?
administrative control
Shelley examined the impact of a special orientation session for first-year students on students’
retention in college. She experienced many problems with getting students to arrive on campus
before the term began, with getting students into appropriate groups, and with getting the research
instruments distributed and returned. Which of the following did Shelley experience? logistical
problems
Society increasingly expects corporate boards to balance the economic goal of profitability with
the social needs of society. Answer: TRUE
Stewardship theory proposes insiders (senior leadership) tend to identify with the corporation
and its success.  Answer: TRUE
Strategic flexibility is the ability to shift from one dominant strategy to another. Answer: TRUE
Strategic management is one decision that determines the short-term performance of a

corporation  Answer: FALSE
Strategic management is that set of managerial decisions and actions that determine the longrun
performance of a corporation. Which one of the following is NOT one of the basic elements of
the strategic management process? statistical process control

system
marketing/sales.
Succession planning for the board and top management team is one of the five responsibilities
of the board of directors Answer: TRUE
Sydney studied the impact of selling Girl Guide cookies on the troupes’ morale. She randomly
assigned six troupes to sell the cookies and six troupes to not sell the cookies. She measured troupe
morale before it was time to sell cookies as well as a month after. Which design did she use?
classical experimental
T
rubber stamp
Resource Center
The ability for Nike to manufacture its own shoes and then build stores for distribution is an
example of =>forward integration.
flexibility
perspective
The ability of competitors to use duplicated resources and capabilities to imitate the other firm's
success is called => E) replicability.
rights that should be respected in all decisions, thus avoiding interfering with the rights of others
is called => A) individual rights approach.
impartial in the distribution of costs and benefits to individuals and groups is called => D)
justice approach.
The board of directors has an obligation to approve all decisions that might affect the longrun
performance of the corporation. Answer: TRUE
The breadth of an organization's culture or the extent to which units throughout an organization
share a common culture is also known as => C) cultural integration.
The combined chairperson/CEO position is being increasingly criticized because of the potential
for conflict of interest. Answer: TRUE
The concept of ________ was taken one step further in JITII, in which vendor sales
representatives usually have desks next to the purchasing company's factory floor, attend
production status meetings, visit the R&D lab, and analyze the purchasing company's sales
forecasts. => sole sourcing
decided course of action; this may help to understand why overconfident CEOs are more likely
to conduct mergers and acquisitions. Answer: TRUE
The controversy surrounding external versus internal growth finds =>internal growth appears to
be superior financially to external growth.
euro

opportunities and threats in light of corporate strengths and weaknesses is known as strategy
formulation
sustainability.

development 2
mover.
The first step in constructing a corporate scenario is to

=>use industry scenarios to develop a set of assumptions
about the task environment.
companies compete for relatively small shares of the total market in a(n) => B) fragmented
industry.
stockholders.
The GE Business Screen has been criticized because =>it

can get quite complicated and cumbersome.
The growth-share matrix of the Boston Consulting Group suggests that the excess cash being
generated by "cash cows" should be used to fund => "question marks."
The internal environment includes the variables of opportunities and threats. Answer: FALSE
corporation.
The key to outsourcing is to purchase from the outside only those activities that=> A)
are not key to the company's distinctive competence.
partnership.
industries who pool their resources to gain a benefit that is too expensive to develop alone is the
=> D) mutual service consortia
The lowest degree of involvement for a board of directors is the catalyst level of interaction.
Answer: FALSE
The majority of outside directors are active or retired CEOs and COOs of other corporations.
Answer: TRUE
The mode of strategic decision-making typical of most universities, many large hospitals, a
large number of governmental agencies, and a surprising number of large corporations is
adaptive
The mode of strategy formulation used when top management has a reasonably clear idea of the
corporation's mission and objectives, but it chooses to develop a series of tentative or partial
strategies instead of developing full-blown strategies is called logical incrementalism
The more active professional boards are being replaced by the board as a rubber stamp of the
CEO. Answer: FALSE
writing.
rotation.
The negative side of confident executive leaders is that their very confidence may lead to
hubris, in which their confidence blinds them to information that is contrary to a decided course
of action. Answer: TRUE
competitors.
The part of an industry's value chain that is most important to a company and the point where its
greatest expertise and capabilities lie is called the company's => B) center of gravity.
mix.
equilibrium
The pricing, selling, and distributing of a product is referred to as a(n) ________ strategy.=> A)
marketing
The process of taking a new technology from the laboratory to the marketplace is called => D)
manufacturing program originally developed by Toyota is known asLean Six
Sigma.
The proposition that silicon chips double in complexity every 18 months is referred to as => B)
Moore's Law.
The purchase of Carroll's Foods for its hog-growing facilities by Smithfield Foods, the
world's largest pork processor, is an example of =>backward integration.
The purchasing strategy in which the purchasing company orders a particular part from
several vendors is => multiple sourcing.
The purchasing strategy in which two suppliers are the sole suppliers of different parts, but
are also the backup suppliers for each other's parts is=> E) parallel sourcing.
The purpose of vertical growth is to =>take over a function previously provided by a supplier or
by a distributor.
Mercosur
The relationship among the board of directors, top management, and shareholders is referred to
as corporate governance.
decisions
The role of the board of directors in reviewing, evaluating, and shaping corporate strategy is
likely to be less active in the future.  Answer: FALSE
oversight of firms.
The SEC requires that the audit, nominating, and compensation committees be staffed entirely
by outside directors. Answer: TRUE
value chain.
The speed limit on all Ontario highways is 100 km/h. Recent debates have focused on whether this
speed limit should be lowered to the previous limit of 80 km/h. Both critics and proponents of
lowering the speed limit have looked at the number of traffic fatalities on all major Ontario
highways before and after the increase to 100 km/h. The examination of traffic fatalities on various
highways illustrates the use of which research design? the multiple time-series design
The stability strategy is appropriate for all of the following circumstances EXCEPT=>
appropriate when the industry is in decline.
The strategic audit is an all-inclusive list of critical questions needed for a detailed strategic
analysis of any business. Answer: FALSE

________ strategy. =>R & D
turnaround.
called => B) EFAS
The technique that illustrates how management can match the external opportunities and threats
with its strengths and weaknesses to yield four sets of strategic alternatives is called a (an) =>
D) TOWS Matrix.
The technique used to help strategic managers choose among alternative choices by defining
the task environment, developing a set of various forecasts, and using pro forma financial
statements is called =>corporate scenarios.
The term "corporate governance" refers to the relationship among the board of directors, top
management, and the shareholders in determining the direction and performance of the
The term "social responsibility," according to Archie Carroll, can be viewed as a combination
needed to accomplish a single-use plan and whose use is to make the strategy action-oriented
isprogram.
isprocedures.
The theory which states that problems arise in corporations because top management no longer
is willing to bear the brunt of their decisions unless they own a substantial amount of stock in
the corporation is called  agency theory
markets.
The type of marketing strategy in which a company captures a larger share of an existing
market for current products through market saturation or market penetration or develops
new markets for current products is called =>A) market development.
The type of strategy used to influence a corporation's key stakeholders in order to increase
their support of corporate activities is =>political strategy.
corporate
operating employee
Theresa studied the impact of a publicity campaign on the number of women who visited a
women’s shelter in Amestown. The goal of the publicity campaign was to increase usage of the
centre. For comparison purposes, Theresa measured the change in usage over the same time period
in a women’s shelter in Brantville, a town of a similar size some distance away. There was no
publicity campaign in Brantville. What design did Theresa use? nonequivalent control group
Those directors who fail to act with due care and allow the corporation to be harmed may be
held personally liable. Answer: TRUE
Three trends are evident in logistics: outsourcing, the use of the Internet, and =>
A) centralization.
To be effective, strategic management must be a formal process Answer: FALSE
To succeed in a hypercompetitive industry, companies must be willing to => D) cannibalize

their own successful product lines.
issues to lower management levels is known as externally-oriented planning.
Transformational leaders transform organizations from market leaders in one industry to market
leadership in another. Answer: FALSE
Treating people in the same way who are similar on relevant dimensions such as job
control.
units to improve the competitive position of one or more business units is called
A) vertical strategy. =>horizontal strategy.
Usually, the strategic planning staff is charged with supporting only top management in the
strategic planning process.  Answer: FALSE
W
environment.
What are the four main activities of a learning organization? The four main activities of a
learning organization are solving problems systematically, experimenting with new approaches,
learning from their own experiences and past history as well as from the experiences of others,
and transferring knowledge quickly and efficiently throughout the organization.
strategic factors
What are the responsibilities of the board of directors?  Answer: The five board of directors'
responsibilities are 1. Effective board leadership, including the processes, makeup and output of
the board 2. Strategy of the organization 3. Risk vs. initiative and the overall risk profile of the
organization 4. Succession planning for the board and top management team 5. Sustainability
What are the responsibilities of top management?  Answer: Top management responsibilities
involve getting things accomplished through and with others to meet the corporate objectives.
Top management's job is multidimensional and oriented toward the welfare of the total
organization. Specific top management tasks vary from firm-tofirm and developed from an
analysis of the mission, objectives, strategies, and key activities of the corporation. Tasks are
typically divided among the members of the top management team. The CEO, with the support
of the rest of the top management team, must successfully handle two primary responsibilities
crucial to the effective strategic management of the corporation: (1) provide executive
leadership and a strategic vision, and (2) manage the strategic planning process.
gathering of appropriate information for situation analysis, the generation of feasible alternative
strategies, and the rational selection of the most appropriate strategy.
What differentiates quasi-experimental designs from true experimental designs? lack of random
assignment of subjects to an experimental and a control group
What is a set of business units or firms that "pursue similar strategies with similar
What is a strategic decision and what are its three characteristics? A strategic decision deals
with the long-run future of an entire organization. There are three characteristics of a
strategic decision: rare, consequential, and directive. Strategic decisions are unusual and
typically have no precedent to follow. They commit substantial resources and demand a great
deal of commitment from people at all levels. And they set precedents for lesser decisions and
future actions throughout the organization.
What is a triggering event? List some possible examples.  A triggering event is something
that acts as a stimulus for a change in strategy. Some possible triggering events are a new CEO,
an external intervention, a threat of a change in ownership, a performance gap, and a strategic
inflection point.
What is another name for evaluation research? program evaluation
What is one example of administrative control negatively affecting a program evaluation? A

program director refuses access to important case files.
What is the advantage of creating new measures for variables in evaluation research? New
variables provide greater possible relevance and validity to the study.
What is the goal of applied research? to have some real-world effect
What two elements are combined in social indicators research? evaluation research and the
analysis of existing data

When a company determines how and where a product or service is to be manufactured, the
level of vertical integration in the production process, the deployment of physical resources, and
relationships with suppliers, the company is developing its ________ strategy. =>operations
When a company determines that a competency provides a competitive advantage, Barney

When a company exchanges 100 shares of stock worth $10 each for 50 shares worth $20
each, they are using =>reverse stock split.
When a company spends a large amount of money on trade promotion in order to gain or hold
shelf space in retail outlets, a company is using a ________ strategy. =>push
When Admiral was acquired by Maytag Corporation, the Admiral employees were willing to
accept the dominance of Maytag's strong quality-oriented culture. This demonstrates which
approach to managing culture? => D) assimilation
improved?
When Bristol-Myers Squibb purchased 17% of ImClone's common stock to gain access to a
new drug, it was using which type of integration? =>E) quasi integration
When considering acceptable alternative strategies, the most important criterion is the ability of
the proposed strategy to deal with =>the specific strategic factors developed in the S.W.O.T.
analysis.
When crafted correctly, an effective policy accomplished all but which of the following? (It
forces trade-offs between competing resource demands; It tests the strategic soundness of a
particular action; It grants employees freedom to experiment within its constraints; It sets
boundaries within which employee must operate while granting them freedom to experiment
within those constraints.) =>All of the above
When Dell Computer's customers use the Internet to design their own computers, this
demonstrates which manufacturing strategy? =>mass customization
When Intel opened four small-scale research facilities adjacent to universities to promote the
cross-pollination of ideas, they were using which approach to R & D? =>open innovation
When Kimberly-Clark introduced Huggies disposable diapers against Procter & Gamble's
market leading Pampers, they were using the offensive tactic known as a(n) => B) frontal
assault.
When scientists concentrate on quality control and the development of design specifications and
improved production equipment, it is referred to as => C) engineering R&D.
When Smith & Wesson puts its name on others' products, like men's cologne, it is using which
marketing strategy?=>line extension
need more decision-making freedom than top management is willing to delegate to them, this
type of crisis is calleda crisis of autonomy.
A) global.
for multinational corporations in an industry, the industry will tend to become global. => C)
multidomestic.
When there are highly automated assembly lines making one mass-produced product using
little human labor, this setup is called =>A) dedicated transfer lines.
When Yamaha entered the market with a broader range of pianos, keyboards, and other musical
instruments, it was using which offensive tactic? => C) encirclement
execution
scale
Which external growth strategy involves two or more corporations joining in a stock exchange
and from which only one corporation survives? =>mergers
Which external growth strategy was demonstrated when Procter & Gamble completely
absorbed Gillette? =>acquisitions
Which is NOT one of the competencies Hewlett Packard uses for identifying potential executives?
=> E) Manage around the external environment.
Which kind of corporate strategy deals with the firm's overall orientation toward growth? =>
directional strategy
Which kind of corporate strategy deals with the manner in which the firm coordinates activities
and transfers resources and cultivates capabilities among product lines and business units?=>
parenting strategy

cultural and managerial practices between the merger partners, and no strong imposition of cultural
change on either company? => C) integration



buyer group or geographic market and attempts to seek a cost advantage in its targeted segment?
=> E) cost focus
small, entrepreneur-dominated companies with one or two product lines that operate in a small
niche market, with employees acting as jack-of-all trades.
Which of the following describes a turnaround strategy? =>Emphasizes improving operational

efficiency and is appropriate when a corporation's problems are pervasive, but not yet critical.
for employees.
Which of the following is a research study in which evaluation is performed using a control group
that is similar to the experimental group, but is not selected at random or specifically matched?
nonequivalent control group design d. posttest-only control group design
Which of the following is a scientifically reliable way to obtain more objective descriptions of a
social issue and the program needed to address that social issue? needs assessment

Which of the following is an example of a corporate strategy? Diversify product line to

appeal to more people
employees
Which of the following is an example of a program? Reduce final assembly time to three
days by having suppliers build plan sections.
continuous
Which of the following is NOT a goal of financial strategies? =>Institute a new product
development plan to generate profit potential.
Which of the following is NOT a guideline proposed for successful downsizing? => C) Make
across-the-board cuts.
corporation.

Which of the following is NOT a principle of reengineering identified by Hammer?

determines internal as well as external customers
Which of the following is NOT a reason why the growth strategy is so seductive? =>A
large and growing firm attracts more acquisition offers.
implement
are getting larger.
encirclement
Which of the following is NOT considered a strategic alliance success factor? => B) Operate
with short term time horizon.
Which of the following is NOT descriptive of a high level of bargaining powers of buyers? =>
E) A buyer earns high profits and is very insensitive to costs and service differences.
Which of the following is NOT descriptive of a high level of bargaining power of suppliers? =>
A) Substitutes are readily available.
the site.
Which of the following is NOT descriptive of external environmental scanning? => vE) Used to

Which of the following is NOT descriptive of the matrix structure? Although employees
often work on one or more product units, they maintain only one direct supervisor.
Which of the following is NOT descriptive of the purpose of Management By Objectives (MBO)?
=> B) MBO operates independently and requires very little supervision or administration.
Which of the following is NOT one of the advantages of portfolio analysis? =>It
provides the basis for impartial objectivity from which to make decisions.
Which of the following is NOT one of the eight sociocultural trends mentioned in the text? =>
D) Increasing food consumption.
systems
Which of the following is NOT one of the limitations of portfolio analysis? =>It relies too
heavily on objective judgments.
Which of the following is NOT one of the limitations of the BCG Growth Share Matrix?
=>There are too many aspects of overall competitive position included.
Which of the following is NOT one of the risks of the focus strategy? => D) The exit of
focusers from the industry.
and progressive.
Which of the following is the most common reason given by surveyed executives for
Which of the following provides an example of a transformational leader? A) Phil Knight at

Nike has energized his corporation and commanded respect. B) Louis Gerstner proposed a new
performance.
activities.
extensively with product lines to learn about their business. B) It is possible that a current CEO
may not be appropriate to implement a new strategy. C) The harvest stage occurs when executives'
performance.)
Which of the following strategies was being used when Allied Corporation and Signal
Companies formed Allied Signal? =>mergers
sequentially, but the work and sequence of the process vary? => E) intermittent system Answer:
E
warfare
Which offensive tactic proposes an indirect approach against the established competitor such as
changing the rules of the game? => B) bypass attack
every category of competition from price to promotion to distribution channel? => D) frontal
assault
Which one of the following directional strategies is most frequently used in corporations? A)
stability => growth
office equipment)
Which one of the following is NOT a characteristic of a firm that has chosen a captive company
strategy? =>Probably most appropriate for a company with a strong competitive position in a
growing industry.
because it is consistent for all organizations within a particular industry. B) It is used to estimate
the production cost of a product produced by newly introduced techniques or processes.
responsibility.
Which one of the following is NOT one of the questions that management should raise in their
attempt to assess the importance to the corporation of stakeholders' concerns? =>A) Which
stakeholder group should be represented on the board of directors?
least 15 scenarios.
Which one of the following is NOT true of risk?

=>Managers who own a significant amount of stock in their
firms are less likely to engage in risk-taking actions.

Which strategy did Circuit City use in 2008 when it converted its retail stores to cash?=>
liquidation
Which strategy did Delta choose when it acquired Northwest Airlines to obtain access to
Northwest's Asian markets? =>A horizontal integration strategy.
Which strategy involves giving up management of the firm to the courts in return for some
settlement of the corporation's obligations? =>bankruptcy
department so that corporate and business unit performance improves and resource productivity
is maximized? =>E) functional strategy
Which strategy is most appropriate as a temporary strategy to enable a corporation to

consolidate its resources after prolonged rapid growth in an industry now facing an uncertain
future?=>pause/proceed with caution strategy
Which strategy is most appropriate for a company in an industry in which the future is expected
to continue as an extension of the present? => no change strategy
unattractive and that the firm lacks outstanding skills that it could easily transfer to related
products or services in other industries?=> conglomerate diversification
Which strategy specifies the firm's overall direction in terms of its general orientation
towardgrowth, the industries or markets in which it competes, and the manner in which it
coordinates activities and transfers resources among business units? => corporate


standardization procedures would be appropriate for a corporation following a stability strategy?
=> E) cautious profit planner
Which type of pricing attempts to hasten market development and offers the pioneer the
opportunity to utilize the experience curve to gain market share and dominate the industry?=>
penetration pricing
Which type of pricing takes advantage of the demand curve while the product is still novel
and competitors are few? =>skim pricing
Which type of research frequently uses existing statistics? social indicators research
While 97% of large U.S. corporations now use nominating committees to identify potential
directors, this practice is not as common in Europe. Answer: TRUE
While there are litigation and physical risks to companies as a result of climate change, there is
no risk currently identified to the company on its overall reputation.  Answer: FALSE
Friedman

organization
Why is the use of the combined Chair/CEO role being increasingly criticized? Answer: The
use of the combined Chair/CEO role is increasingly criticized because of the potential for
conflict of interest. The CEO is supposed to concentrate on strategy, planning, external
relations, and responsibility to the board. The Chairman's responsibility is to ensure that the
board and its committees perform their functions as stated in the board's charter. Critics of
having one person in both roles ask how the board can properly oversee top management if the
Chairman is also a part of top management.
Willie is conducting a study of how effective a midnight basketball program is in reducing inner-
city juvenile crime. He measures the number of crimes reported to the police before and after the
basketball program is instituted, and then he compares his findings to the crime rates in another
city of similar size that does not have such a program. What is the experimental stimulus of
Willie’s research? the midnight basketball program
With conglomerate diversification, the focus is on

=>financial considerations.
Y
You are conducting a study of how effective a skateboarding park and program are in reducing
inner-city juvenile crime. You measure the number of crimes reported to the police before and
after the park and program have been instituted, and you compare your findings to the crime rates
in another city of similar size that does not have such a park or program. What sort of evaluation
design are you using? nonequivalent control group
A
A company’s strategy is most accurately defined as...e) Management’s commitment to
pursue a particular set of actions in growing the business, attracting and pleasing
customers, competing successfully, conducting operations, and improving the company’s
financial and market performance. A company’s strategy stands a better chance of
succeeding whenc) It is predicated on competitive moves aimed at appealing to buyers in
ways that set the company apart from rivals.c) It is predicated on competitive moves
aimed at appealing to buyers in ways that set the company apart from rivals.
A company's business model consists of its..E) profit formula and customer value
proposition.
A company's business model....B. Profits and return on investment. A company's business
model...B. is management's storyline for how it will generate revenues ample to cover
costs and produce a profit—absent the ability to deliver good profitability, the strategy is
not viable and survival of the business is in doubt.
A company's business model...D. sets forth the key components of the enterprise's
business approach, indicates how revenues will be generated, and makes a case for why
the strategy can deliver value to customers in a profitable manner.
A company's business model..D) is management's blueprint for delivering a valuable
product or service to customers in a manner that will yield an attractive profit.
A company's realized business strategy is made up of.) both deliberate and/or planned
initiatives that have proven themselves in the marketplace and newly launched initiatives
aimed at further boosting performance and emergent and/or reactive adjustments to
unanticipated strategic moves by rivals, unexpected changes in customer preferences, and
new market opportunities.
A company's strategy and its quest for competitive advantage are tightly connected
because...c) crafting a strategy that yields a competitive advantage over rivals is a
company's most reliable means of achieving above-average profitability and financial
performance.
A company's strategy consists of competitive moves and approaches that managers have
developed to grow the business, attract and please customers, conduct operations, and
achieve targeted objectives.
A company's strategy evolves from one version to the next because of...B. the proactive
efforts of company managers to improve this or that aspect of the strategy, a need to
respond to changing customer requirements and expectations, and a need to react to fresh
strategic maneuvers on the part of rival firms.
A company's strategy evolves over time as a consequence of..B. the proactive efforts of
company managers to fine-tune and improve one or more pieces of the strategy.
A company's strategy has a chance of succeeding only when it is predicated on B)
actions, business approaches, and competitive moves aimed at appealing to buyers and
setting the company apart from rivals.
A company's strategy is a "work in progress" and evolves over time because of the A)
ongoing need of company managers to react and respond to changing industry and
competitive conditions.
A company's strategy is a ''work in progress" and evolves over time because of...A. the
importance of developing a fresh strategic plan every year (which also has the benefit of
keeping employees from becoming bored with executing the same strategy year after
year)
A creative, distinctive strategy that delivers a sustainable, competitive advantage is
important because..a strategy that yields a competitive advantage over rivals is a
company's most reliable means of achieving aboveaverage profitability and financial
performance.
A creative, distinctive strategy that sets a company apart from its rivals and that gives it a
sustainable competitive advantage..) signals that the company has a bold, ambitious
strategic intent that places the achievement of strategic objectives ahead of the
achievement of financial objectives A creative, distinctive strategy that sets a company
apart from rivals and that gives it a sustainable competitive advantage..c) is a company's
most reliable ticket to above-average profitability—indeed, the tight connection between
competitive advantage and profitability means that the quest for sustainable competitive
advantage always ranks center stage in crafting a strategy.
A luxury hot-tub manufacturer offered monogrammed bathrobes as a gimmick when their
hot tubs did not sell. Their monogrammed bathrobes became famous among some
women and led to a line of exclusive bath products for women. The bathtub manufacturer
established shops in various regional locations and hired celebrities to market their
products to enhance sales. Today, its products are sold through retail outlets and online
sites throughout the world. Which of the following is accurate?. B) Creating a subbrand
that offered exclusive bath products for women was an emergent strategy.
A pharmaceutical giant acquires a manufacturer of rare specialty drugs to improve its
falling share prices and invests all its wealth into the deal. Due to a deficit, it agrees to do
a joint venture for the acquisition and involves a major automobile giant to fund the deal.
After a rocky start, the companies now have a strong market position and generate good
profits. Which of the following regarding the company's strategy is true? It is a winning
strategy.
A well-conceived strategy builds a company's..E) ethical worthiness and corporate social
responsibility.
A winning strategy is one that..) fits the company's internal and external situation, builds
a sustainable competitive advantage, and improves the company's performance
A winning strategy is one that...C. fits the company's internal and external situation,
A winning strategy is one that...C. fits the company's internal and external situations,
Allset Motors, a manufacturer of self-driving delivery trucks, is working on developing
its next-generation vehicles. It has decided on a strategy of focusing on a narrow buyer
segment and outcompeting its rivals by offering buyers customized vehicles at a lower
cost than its rivals. What basic strategic approach has Allset Motors decided upon. Best-
cost Amy's Drive-Thru, a fast food facility near a college campus, offers healthy,
sustainably grown vegetarian and vegan fast-food at higher prices than its competitors in
the market and has a drive-through and indoor-seated, casual-dining operation. What
strategy is Amy's DriveThru using to gain a competitive advantage? E) A focused
differentiation strategy
An industrial air-conditioner manufacturing giant decides to outsource its operations to a
new geographical location with cheaper labor amidst ongoing labor strikes in a few of its
existing locations (due to proposed job cuts and relocation of the plant offshore). This
draws criticism in its home market and affects its current market position and
productivity. Which of the following would be an appropriate reactive (emergent)
strategy while moving forward?E) Canceling the job cuts till the market situation and
entry operations stabilize
C
Changing circumstances and ongoing managerial efforts to improve the strategy...A.
account for why a company's strategy evolves over time. Changing circumstances and
ongoing managerial efforts to improve the strategy A) account for why a company's
strategy evolves over time Consider the following three companies and their strategies:
Company A is an established database management company that acquires a wellreputed
but small publishing house to enter the booming publishing industry. Company B, a
sports management house, declared bankruptcy during a recent recession but now has
created a television network that airs regional sports events. Company C, a package
delivery business, is a startup based on delivery efficiency models created by a few
students and delivers almost all kinds of packages. Which of the following describes the
use of strategies by these companies accurately? B) All three companies employ
deliberate strategies.
Crafting a strategy involves A) blending deliberate, planned initiatives with emergent,
unplanned reactive responses to changing circumstances, while abandoning planned
strategy elements that have failed in the marketplace.
Crafting a strategy involves...C. stitching together a proactive/intended strategy and then
adapting first one piece and then another as circumstances surrounding the company's
situation change or better options emerge.
Crafting and executing strategy are top-priority managerial tasks because...C. there is a
compelling need for managers to proactively shape how the company's business will be
conducted and because a strategyfocused enterprise is more likely to be a stronger
bottom-line performer than a company whose management views strategy as secondary
and puts its priorities elsewhere.
Crafting and executing strategy are top-priority managerial tasks becauseB. good strategy
coupled with good strategy execution greatly raises the chances that a company will be a
standout performer in the marketplace. Different companies across different industries
adopt any one of the five generic strategies to gain competitive advantage. Which of the
following businesses is most likely to use a low-cost provider strategy? D) A baby
products retailer sells unassembled baby furniture produced in China Excellent execution
of an excellent strategy is...A. the best test of managerial excellence and the best recipe
for making a company a standout performer.
G
Good strategy combined with good strategy execution...D. are the most trustworthy signs
of good management.
I
In crafting a company’s strategy, d) Managers need to come up with some distinctive
“aha” element to the strategy that draws in customers and produces a competitive edge
over rivals.
In crafting a strategy, management is in effect saying...d) “among all the many different
business approaches and ways of competing we could have chosen, we have decided to
employ this particular combination of competitive and operating approaches in moving
the company in the intended direction, strengthening its market position and
competiveness, and boosting performance.”
In evaluating proposed or existing strategies, managers should..B) scrutinize the
company's existing strategies on a regular basis to ensure they offer a good strategic fit,
create a competitive advantage, and result in aboveaverage performance.
In evaluating proposed or existing strategies, managers shouldC) scrutinize the company's
existing strategies on a regular basis to ensure they offer a good strategic fit, create a
competitive advantage, and contribute to an above-average performance
In the course of crafting a strategy, it is common for management to.. All of these.
It is normal for a company's strategy to end up being..) a blend of deliberate planned
actions to improve the company's competitiveness and financial performance and as-
needed unplanned reactions to unanticipated developments and fresh market conditions.
it is normal for a company's strategy to end up being…I.D. a blend of proactive actions to
improve the company's competitiveness and financial performance and adaptive reactions
to unanticipated developments and fresh market conditions.
M
Management's story line for how and why the company's business approaches will
generate revenues sufficient to cover costs and produce attractive profits and returns on
investment.B. best describes what is meant by a company's business model.
Managers in all types of businesses must develop a clear answer for which of the
following questions? ) What is the set of actions that we need to take to outperform the
company's competitors and achieve superior profitability
Managers of every company should be willing and ready to modify their strategy because
A) market conditions and circumstances are changing over time or the current strategy is
clearly failing.
N
One of the keys to successful strategy-making is to come up with one or more strategy
elements that act as a magnet to draw customers and yield a lasting competitive edge.
Rainbow Resorts Inc. has multiple tropical resorts in various locations. In a crowded
market that caters to all kinds of consumers, this resort caters mainly to LGBTQ
customers with a guaranteed hassle-free holiday experience at a premium price. What
strategy is Rainbow using to gain competitive advantage.. A focused differentiation
strategy
T
The competitive moves and business approaches a company’s management is using to
grow the business, stake out a market position, attract and please customers, compete
successfully, conduct operations, and achieve organizational objectives is referred to as
its...Strategy
The competitive moves and business approaches a company's management is using to
grow the business, compete successfully, attract and please customers, conduct
operations, respond to changing economic and market conditions, and achieve
organizational objectives is referred to as its A) strategy
The difference between a company's strategy and a company's business model is that D.
strategy relates broadly to a company's competitive moves and business approaches
(which may or may not dto profitability) while its business model relates to whether the
revenues and costs flowing from the strategy demonstrate that the business is viable from
the standpoint of being able to earn satisfactory profits and returns on investment.
The essence of strategy is A) developing lasting success that can support growth and
secure the company's future over the long term
The heart and soul of a company's strategy-making effort...e) involves coming up with
moves and actions that produce a durable competitive edge over rivals.
The most important aspect(s) of a company's business strategy A) are the actions and
moves in the marketplace that managers take to gain a sustainable competitive advantage
The most trustworthy signs of a well-managed company are..C. good strategy-making
combined with good strategy execution.
To which of the following firms is the term "repeatedly evolving strategy" most
applicable?B) A mobile company, established in a saturated market, that aims at a
quarterly release of new products
W
What is the foremost question in running a business enterprise?..A. What must managers
do, and do well, to make a company a winner in the marketplace?
What separates a powerful strategy from a run-of-the-mill or ineffective one is...d)
management's ability to forge a series of moves, both in the marketplace and internally,
that sets the company apart from rivals, tilts the playing field in the company's favor, and
produces sustainable competitive advantage over rivals.
Which of the following firms uses an emergent strategy?E) A microbrewer invests in
building community water wells during a drought.
Which of the following is a frequently used strategic approach to setting a company apart
from rivals and achieving a sustainable competitive advantage? E. All of these
Which of the following is a not a frequently used strategic approach to setting a company
apart from rivals and achieving a sustainable competitive advantage…Copying rivals on
their competitive moves Which of the following is an issue not likely to be addressed by
a company's business strategy? E) Actions and approaches to mimic rivals' moves in the
marketplace
Which of the following is not an element of a company's business strategy? E) Actions to
revise the company's financial and strategic performance targets
Which of the following is not included in proven approaches to winning a sustainable
competitive advantage? Crafting a broad-cost provider strategy
over time.A. The need on the part of company managers to initiate fresh strategic actions
that boost employee commitment and create a results-oriented culture.
over time?The need on the part of company managers to make no adjustments to the
company's business model.
Which of the following is not one of the central questions in evaluating a company’s
business prospects? What are the key products or service attributes demanded by
consumers?
Which of the following is not something a company’s strategy is concerned with?b) How
quickly and closely to copy the strategies being used by successful rival companies
Which of the following is not something a company's strategy is concerned with?
Management's choices about how quickly and closely to copy the strategies being used by
successful rival companies
Which of the following is not typically a trigger to an evolving strategy?E) The need to
respond to short-term swings in the stock market Which of the following questions ought
to be used to distinguish a winning strategy from a so-so or flawed strategy?Is the
strategy well matched to the company's situation, helping the company achieve a
sustainable competitive advantage and resulting in better company performance?
Which one of the following does not account for why a company's strategy evolves from
one version to another?A. A desire on the part of company managers to develop new
strategy elements on the fly .
Which one of the following questions can be used to test the merits of one strategy over
another and distinguish a winning strategy from a mediocre or losing strategy?E. How
well does the strategy fit the company's situation?
Winning a competitive edge over competitors generally hinges on which of the
following?E. All of these.
A
A company achieves a sustainable competitive advantage when it develops capabilities proven
difficult for competitors to imitate or best
A company achieves sustainable competitive advantage when a sufficiently large number of buyers
have a lasting preference for its products or services as compared to the offerings of competitors
A company is unlikely to develop an emergent strategy due to rivals' value chain deficiencies
A company's business model consists of its profit formula and customer value proposition
A company's business modelis management's blueprint for delivering a valuable product or service to
customers in a manner that will yield an attractive profit.
A company's realized business strategy is made up of both deliberate and/or planned initiatives that
have proven themselves in the marketplace and newly launched initiatives aimed at further boosting
performance and emergent and/or reactive adjustments to unanticipated strategic moves by rivals,
unexpected changes in customer preferences, and new market opportunities
A company's strategy has a chance of succeeding only when it is predicated on actions, business
approaches, and competitive moves aimed at appealing to buyers and setting the company apart from
rivals
A company's strategy is a "work in progress" and evolves over time because of the ongoing need of
company managers to react and respond to changing industry and competitive conditions
A company's strategy is the set of actions that its managers need to take to outperform the company's
competitors and achieve superior profitability competitive moves and approaches that managers have
developed to grow the business, attract and please customers, conduct operations, and achieve
targeted objectives
A creative, distinctive strategy that delivers a sustainable, competitive advantage is important because
a strategy that yields a competitive advantage over rivals is a company's most reliable means of
achieving above-average profitability and financial performance
A creative, distinctive strategy that sets a company apart from its rivals and that gives it a sustainable
competitive advantage signals that the company has a bold, ambitious strategic intent that places the
achievement of strategic objectives ahead of the achievement of financial objectives
A well-conceived strategy builds a company's ethical worthiness and corporate social responsibility
A winning strategy is one that  fits the company's internal and external situation, builds a sustainable
competitive advantage, and improves the company's performance.
Allset Motors, a manufacturer of self-driving delivery trucks, is working on developing its next-
generation vehicles. It has decided on a strategy of focusing on a narrow buyer segment and
outcompeting its rivals by offering buyers customized vehicles at a lower cost than its rivals. What basic
strategic approach has Allset Motors decided upon? Best-cost
Amy's Drive-Thru, a fast food facility near a college campus, offers healthy, sustainably grown vegetarian
and vegan fast-food at higher prices than its competitors in the market and has a drive-through and
indoor-seated, casual-dining operation. What strategy is Amy's Drive-Thru using to gain a competitive
advantage? A focused differentiation strategy
C
Changing circumstances and ongoing managerial efforts to improve the strategy account for why a
company's strategy evolves over time.
Copying rivals on their competitive moves  Simply trying to mimic the successful strategies of rivals
Crafting a strategy involves blending deliberate, planned initiatives with emergent, unplanned
reactive responses to changing circumstances, while abandoning planned strategy elements that have
failed in the marketplace
D
Different companies across different industries adopt any one of the five generic strategies to gain
competitive advantage. Which of the following businesses is most likely to use a low-cost provider
strategy? A baby products retailer sells unassembled baby furniture produced in China
I
In evaluating proposed or existing strategies, managers should  scrutinize the company's existing
strategies on a regular basis to ensure they offer a good strategic fit, create a competitive advantage,
and contribute to an above-average performance.
In evaluating proposed or existing strategies, managers should scrutinize the company's existing
strategies on a regular basis to ensure they offer a good strategic fit, create a competitive advantage,
and result in above-average performance.
It is normal for a company's strategy to end up being a blend of deliberate planned actions to improve
the company's competitiveness and financial performance and as-needed unplanned reactions to
unanticipated developments and fresh market conditions
M
Managers in all types of businesses must develop a clear answer for which of the following questions?
) What is the set of actions that we need to take to outperform the company's competitors and
achieve superior profitability?
Managers of every company should be willing and ready to modify their strategy because market
conditions and circumstances are changing over time or the current strategy is clearly
R
Rainbow Resorts Inc. has multiple tropical resorts in various locations. In a crowded market that caters
to all kinds of consumers, this resort caters mainly to LGBTQ customers with a guaranteed hassle-free
holiday experience at a premium price. What strategy is Rainbow using to gain competitive advantage? -
A focused differentiation strategy
T
The competitive moves and business approaches a company's management is using to grow the
business, compete successfully, attract and please customers, conduct operations, respond to changing
economic and market conditions, and achieve organizational objectives is referred to as its strategy
The essence of strategy is developing lasting success that can support growth and secure the
company's future over the long term
The most important aspect(s) of a company's business strategy are the actions and moves in the
marketplace that managers take to gain a sustainable competitive advantage.
To which of the following firms is the term "repeatedly evolving strategy" most applicable? A mobile
company, established in a saturated market, that aims at a quarterly release of new products
W
Which of the following firms uses an emergent strategy? A microbrewer invests in building
community water wells during a drought
Which of the following is a not a frequently used strategic approach to setting a company apart from
rivals and achieving a sustainable competitive advantage?  Copying rivals on their competitive moves
Which of the following is an issue not likely to be addressed by a company's business strategy? Which
of the following is not an element of a company's business strategy? Actions and approaches to mimic
rivals' moves in the marketplace
Which of the following is not an element of a company's business strategy? Actions to revise the
company's financial and strategic performance targets
Which of the following is not included in proven approaches to winning a sustainable competitive
advantage? Crafting a broad-cost provider strategy
Which of the following is not one of the basic reasons that a company's strategy evolves over time?
The need on the part of company managers to make no adjustments to the company's business
model
Which of the following is not something a company's strategy is concerned with? Management's
choices about how quickly and closely to copy the strategies being used by successful rival companies
Which of the following is not typically a trigger to an evolving strategy? The need to respond to short-
term swings in the stock market
Which of the following questions ought to be used to distinguish a winning strategy from a so-so or
flawed strategy?  Is the strategy well matched to the company's situation, helping the company
achieve a sustainable competitive advantage and resulting in better company performance?
Which of the following statements about a company's realized strategy is true? A company's realized
strategy is typically a blend of deliberate and/or planned initiatives and emergent and/or unplanned
reactive strategy elements

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____ plans can be defined as alternative plans that can be put into effect if certain key events do

not occur as expected.? D) Contingency

_________ is not part of an external audit? Analyzing financial ratios

______________is/are the best way to overcome individuals’ resistance to change in strategy

“A possible and desirable future state of an organization” is called: Vision

A final broad test of strategy is its ?feasibility.

A goal differs form an objective because it its open-ended

A program or tactic is  a system of sequential steps

A relationship that illustrates the term complementor is A) Microsoft and Intel

A revised ________ should focus on changes in the organization's management, marketing,

A strategy is a company’s? Game Plan to outsmart competitor

a(n)_______ stance towards change. Proactive

achieve company objectives refers to its? Strategy

All of the following reflect activities of a learning organization EXCEPT....  alienating

An external analysis enables a firm to determine what the firm might do

An organisation’s strategy generally forms over a period of time as events unfold

As defined in this course, a policy is a broad guideline for making decisions

Changes in the organization's management, marketing, finance/accounting, R&D and CIS

Competitive advantage can best be described as  increased efficiency

Competitive advantage normally is the result of superiority in resources, skills and…..?

Corporations that lack a consistent strategy-structure-culture relationship reflect which strategic

Corrective actions should? strengthen an organization's competitive position in its industry .

Corrective actions should? strengthen an organization’s competitive position in its industry.

formulation, Implementation, control and evaluation

important part of an external audit. political

In a fragmented industry E) all of the above

In addition to Porter’s Five Forces, another force addded in the text is 

Industry analysis is primararily concerned with a corporations’s  task enviroment

Internal analysis enables a firm to determine what the firm can do

International financial reporting standards (IFRS) comprise approximately ________ pages? B)

is the foundation of blue ocean strategyValue Innovation

Long-term objectives should be all of the following except: continually changing

One of the benefits of globalization is  economies of scale

Only high-priority areas require the insurance of ________ plans? contingency

Product differentiation refers to the belief by customers that a product is unique

Strategic issues require which level of management decisions?Top

Strategic management involves The_________ ,directing,_____and controlling of a company’s

Strategic management process activate in the sequence of ______?Environmental scanning,

Strategic planning within a small organization... should be a formalised and sophisticated

Strategic-management audit is known as: Environmental scanning

Strategy -evaluation activities should be performed? on a continuous basis.

Strategy evaluation is based on? Production quality

Strategy-evaluation activities should be performed? on a continuous basis

Strategy-evaluation activities should ideally be performed? C) on a continuous basis.

Success today? is no guarantee of success tomorrow

The corporation’s task environmentincludes those elements or groups within an organization’s

The corporation's task environment? includes those elements or groups within an

The development of long-range plans for the effective management of environmental

The emphasis of strategic management is on... long-term performance

The fundamental purpose of an organization’s mission statement is to define the

The GAAP standards are comprised of ________ pages. 25,000

The immediate external environment includes ? Competitors

The integrated internationalization of markets and corporations is called.... globalization

The S in SWOT stands for.....  strengths

The strategy -evaluation process should foster? mutual understanding.

The T in SWOT stands for...  threats

The__________comprises economic and social conditions,political priorities and technological

To succeed in a hypercompetitive industry, companies must be willing to D) cannibalize their

To succeed in a hypercompetitive industry, companies must be willing toD) cannibalize their

Today, boards of directors are composed mostly of? outsiders.

Trend extrapolation is B) the extension of present trends into the future

What are guides to deci making? policies

What characterizes the planning mode of strategy formulation? definition c

Strategic management involves The_____ ,directing,_and controlling of a company’s