A revised ________ should indicate how effective a firm's strategies have

been in response to key opportunities and threats.

A) IFE Matrix
B) mission
C) EFE Matrix
D) vision
E) CPM Matrix

A total weighted score of ________ in an External Factor Evaluation (EFE)

Matrix indicates that an organization is responding in an outstanding way
to existing opportunities and threats in its industry.
A) 1.0
B) 4.0
C) 5.0
D) 10.0
E) 100.0

All of the following are political, governmental, and legal variables

that can represent key opportunities or threats to organizations EXCEPT
A) tariffs.
B) environmental regulations.
C) level of defense expenditures.
D) legislation on equal employment.
E) population changes by race, age, sex, and level of affluence.

An important activity in ________ is taking corrective action.

A) strategy evaluation
B) strategy implementation
C) strategy formulation
D) strategy leadership
E) strategic analysis

An organization should take a(n) ________ approach in its industry.

A) adversarial rather than a collegial
B) collegial rather than an adversarial
C) reactive rather than a proactive
D) proactive rather than a reactive
E) cooperative rather than a competitive

An organization's vision statement

A) is a constant reminder to its employees of why the organization
exists.
B) broadly charts the future direction of an organization.
C) addresses the basic question: "What is our business?"
D) answers the question: "What do we want to become?"
E) is mandated by law.

Anything that a firm does especially well compared to rival firms is

referred to as
A) competitive advantage.
B) comparative disadvantage.
C) opportunity cost.
D) unsustainable advantage.
E) an external opportunity.
Because of the success of the iPad and the iPhone, Apple has tremendous
brand recognition. Brand recognition is one of Apple's
A) weaknesses.
B) opportunities.
C) strengths.
D) threats.
E) strategies.

Collecting and evaluating information on competitors is essential for

successful
A) internal analysis.
B) strategy evaluation.
C) strategy formulation.
D) strategy implementation.
E) strategy correction.

External audits attempt to identify key variables that offer ________

responses.
A) actionable
B) authoritative
C) profitable
D) strategic
E) terminal

Generally, external opportunities and threats are

A) uncontrollable by a single organization.
B) unable to have a significant impact on an organization.
C) not worth monitoring and evaluating.
D) key functions in strategy implementation.
E) key functions in strategy exploitation.

Internal ________ are controllable activities in an organization that are

performed especially well.
A) opportunities
B) incompetencies
C) strengths
D) objectives
E) factors

Sometimes ________ is used to refer to strategic formulation,

implementation and evaluation, with ________ referring only to strategic
formulation.
A) strategic planning; strategic management
B) strategic planning; strategic processing
C) strategic management; strategic planning
D) strategic management; strategic processing
E) strategic implementation; strategic focus

Strategic management focuses on integrating functional areas to achieve

organizational success. Which of the following is NOT one of the
functional areas that is the focus of strategic management?
A) marketing
B) finance and accounting
C) production and operations
D) research and development
E) organizational behavior

Strategic management offers all of the following benefits EXCEPT

A) increased discipline.
B) enhanced communication.
C) increased synergy.
D) increased resistance to change.
E) more effective allocation of time and resources.

Strategy evaluation is necessary because

A) internal and external factors are constantly changing.
B) the SEC requires strategy evaluation.
C) success today is a guarantee of success tomorrow.
D) the IRS requires strategy evaluation.
E) firms have limited resources.

The acronym SCDE stands for social, cultural, demographic, and ________
forces.
A) economic
B) ecological
C) ethnic
D) external
E) environment

The emergence of 3D printing is an example of a(n) ________ force that

impacts organizations.
A) economic
B) legal
C) political
D) social, cultural, demographic, and environment (SCDE)
E) technological

The goal of strategic management is to

A) achieve competitive advantage.
B) maintain competitive advantage.
C) achieve and maintain competitive advantage.
D) eliminate competitive advantage.
E) eliminate and abolish competitive advantage.

The investor relations pages of a company website ________ information

about a firm.
A) is a good place to start to find
B) is not a reliable source of
C) is only acceptable as a last resort for
D) should not be used as the first place to look for
E) is a waste of time when searching for

The shift to a service economy is an example of a(n) ________ force.

A) technological
B) social, cultural, demographic, and environment (SCDE)
C) economic
D) legal
E) political

What are educated assumptions about future trends and events called?
A) Wild guesses
B) Forecasts
C) Facts
D) Statistics
E) Premonitions

What is the first step in designing an External Factor Evaluation (EFE)

Matrix?
A) Identifying key external factors
B) Summing the weighted score for each competitor
C) Calculating the sales of each competitor
D) Drawing the horizontal and vertical lines for the matrix
E) Determining four competitors

What is the range for a firm's total weighted score in an External Factor
Evaluation Matrix?
A) 0 to 4
B) 0 to 5
C) 1 to 4
D) 1 to 5
E) 0 to 10

What step in the strategic management process involves mobilizing

employees and managers to put strategies into action?
A) Strategy formulation
B) Strategy evaluation
C) Strategy implementation
D) Strategic advantage
E) Competitive advantage

When an industry relies heavily on government contracts, which forecasts

can be the most important part of an external audit?
A) Economic
B) Political
C) Technological
D) Competitive
E) Multinational

When using External Factor Evaluation (EFE) Matrix, what is done after
multiplying each factor's weight by its rating to determine a weighted
score?
A) Identifying key external factors
B) Summing the weighted score for each competitor
C) Summing the weighted scores for each variable to determine the total
weighted score for the organization
D) Drawing the horizontal and vertical lines for the matrix
E) Determining the preferred strategic factors

Which phase of strategic management is most strongly associated with

"action"?
A) Strategy formulation
B) Strategy implementation
C) Strategy evaluation
D) Competing advantages
E) Measuring performance

________ forces are shaping the way people live, work, produce, and
consume.
A) SCDE
B) VUCA
C) IO
D) Porter's five-
E) Internal

A firm should pursue defensive strategies if the coordinates of a SPACE

directional vector are (+2, +3).
A) TRUE
B) FALSE

According to Porter, a business unit in a competitive marketplace with no

generic competitive strategy is
A) achieving synergy.
B) practicing innovative leadership.
C) stuck in the middle.
D) not goal directed.
E) last in line.

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
A) competitors is called
B) competitive scope.
C) differentiation.
D) concentration.
E) diversification.
F) 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
A) competitive scope.
B) differentiation.
C) concentration.
D) diversification.
E) lower cost.

All of the following reflect criticisms of the SWOT analysis EXCEPT

A) uses no weights to reflect priorities.
B) only requires a single level of analysis.
C) provides a rational link to strategy implementation.
D) ambiguity in words and phrases.
E) generation of lengthy lists.
An acronym for the assessment of the external and internal environments
of the business corporation in the process of strategy
formulation/strategic planning is
A) P.E.T.
B) M.B.O.
C) S.W.O.T.
D) S.B.U.
E) R.O.I.

Bankruptcy
A) should never be used as a strategy.
B) should be used only when one is legally forced to do so.
C) can be an effective type of retrenchment strategy.
D) should only be used for large firms.
E) should only be used for small, private firms.

Franchising is an effective means of implementing forward integration.

A) TRUE
B) FALSE

GoPro laid off one-fifth of its workforce and exited the drone market.
This is an example of
A) divestiture.
B) backward integration.
C) liquidation.
D) retrenchment.
E) forward integration.

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.
B) attempt to take advantage of opportunities by overcoming weaknesses.
C) are basically defensive and primarily act to minimize weaknesses and
avoid threats.
D) consider a company's or unit's strengths as a way to avoid threats.
E) are ways to get strategists to think "out of the box."

In a TOWS Matrix, ST Strategies

A) are generated by thinking of ways in which a company or business unit
could use its strengths to take advantage of opportunities.
B) attempt to take advantage of opportunities by overcoming weaknesses.
C) are basically defensive and primarily act to minimize weaknesses and
avoid threats.
D) consider a company's or unit's strengths as a way to avoid threats.
E) are ways to get strategists to think "out of the box."

In a TOWS Matrix, WT Strategies

A) are generated by thinking of ways in which a company or business unit
could use its strengths to take advantage of opportunities.
B) attempt to take advantage of opportunities by overcoming weaknesses.
C) are basically defensive and primarily act to minimize weaknesses and
avoid threats.
D) consider a company's or unit's strengths as a way to avoid threats.
E) are ways to get strategists to think "out of the box."
In the SPACE analysis, what does a (+6, +3) strategy profile portray?
A) A strong industry position
B) An unstable environment
C) A stable environment
D) A weak industry position
E) A weak financial position

In which situation would horizontal integration be an especially

effective strategy?
A) When an organization can gain monopolistic characteristics in a
particular area or region without being challenged by the federal
government for "tending substantially" to reduce competition
B) When an organization competes in a slowing industry
C) When decreased economies of scale provide major competitive advantages
D) When an organization has neither the capital nor human talent needed
to successfully manage an expanded organization
E) When competitors are succeeding due to managerial expertise or having
particular resources an organization possesses

Limited availability of quality distributors is a reason why competitive

advantage could result from forward integration.
A) TRUE
B) FALSE

Procter & Gamble's (P&G) sale of many of its brands in order to focus on
its core brands is an example of which type of strategy?
A) Related diversification
B) Unrelated diversification
C) Retrenchment
D) Divestiture
E) Liquidation

The firm should pursue conservative strategies if the coordinates of a

SPACE directional vector are (-1, +4).
A) TRUE
B) FALSE

The first company to manufacture and sell a new product or service is

called a(n)
A) opportunist.
B) first mover.
C) cost leader.
D) power broker.
E) ground breaker.

The particular capabilities and resources a firm possesses and the

superior way in which they are used is called
A) distinctive competencies.
B) differentiating capabilities.
C) situational proficiency.
D) core competencies.
E) distinctive characteristics.
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)
A) IFAS Table.
B) EFAS Table.
C) SFAS Table.
D) TOWS Matrix.
E) Issues Priority Matrix.

The two internal dimensions represented on the axes of the SPACE Matrix
are
A) stability position and industry position.
B) industry position and internationalization.
C) internationalization and competitive position.
D) competitive position and financial position.
E) financial position and stability position.

The two positive-rated dimensions on the SPACE Matrix are

A) FP and CP.
B) CP and SP.
C) FP and IP.
D) IP and SP.
E) FP and SP.

There are four basic types of diversification: concentric, conglomerate,

forward, and backward.
A) TRUE
B) FALSE

What are the two external dimensions of the SPACE Matrix?

A) Stability position and industry position
B) Stability position and competitive position
C) Industry position and competitive position
D) Competitive position and financial position
E) Financial position and industry position

What are the two generic competitive strategies that Porter promotes as
the means for outperforming other corporations in a particular industry?
A) competitive scope and differentiation
B) diversification and concentration
C) lower cost and competitive scope
D) concentration and lower cost
E) lower cost and differentiation

What refers to a strategy of seeking ownership of, or increased control

over a firm's competitors?
A) Forward integration
B) Conglomerate diversification
C) Backward integration
D) Horizontal integration
E) Concentric diversification

What type of strategies would you recommend when a firm's SPACE Matrix
directional vector has the coordinates (-2, +3)?
A) Aggressive
B) Conservative
C) Competitive
D) Defensive
E) Integrative

Which of the following is NOT an advantage of being a first mover?

A) The company is able to establish a reputation as an industry leader.
B) The company is able to move down the learning curve to assume the cost
leader position.
C) A first mover can set the standard for all subsequent products in the
industry.
D) Being first provides a company profit advantages for about ten years
in consumer goods and about twelve years in industrial goods.
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 one of the risks of a cost leadership

strategy?
A) The technology that the organization has been using changes.
B) Achieving excessive success causing jealousy amongst competitors.
C) Competitors can achieve viable imitations.
D) Cost focusers achieve even lower cost in niche market segments.
E) Proximity in differentiation is lost.

Which of these is NOT a SPACE Matrix quadrant?

A) Aggressive
B) Defensive
C) Competitive
D) Offensive
E) Conservative

A firm should pursue defensive strategies if the coordinates of a SPACE

directional vector are (+2, +3).
A) TRUE
B) FALSE
A positive feature of the Quantitative Strategic Planning Matrix (QSPM)
is that sets of strategies can be examined sequentially or
simultaneously.
A) TRUE
B) FALSE

According to Porter, a business unit in a competitive marketplace with no

generic competitive strategy is
A) achieving synergy.
B) practicing innovative leadership.
C) stuck in the middle.
D) not goal directed.
E) last in line.

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
A) competitors is called
B) competitive scope.
C) differentiation.
D) concentration.
E) diversification.
F) 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
A) competitive scope.
B) differentiation.
C) concentration.
D) diversification.
E) lower cost.

All of the following reflect criticisms of the SWOT analysis EXCEPT

A) uses no weights to reflect priorities.
B) only requires a single level of analysis.
C) provides a rational link to strategy implementation.
D) ambiguity in words and phrases.
E) generation of lengthy lists.

Although Quadrant _____ companies are growing, according to the Grand

Strategy Matrix, they are unable to compete effectively, and they need to
determine why the firm’s current approach is ineffective and how the
company can best change to improve its competitiveness.
A) I
B) II
C) III
D) IV
E) V

An acronym for the assessment of the external and internal environments

of the business corporation in the process of strategy
formulation/strategic planning is
A) P.E.T.
B) M.B.O.
C) S.W.O.T.
D) S.B.U.
E) R.O.I.

An organization that has a low relative market share position and

competes in a slow-growth industry is referred to as a
A) dog.
B) question mark.
C) star.
D) cash cow.
E) cowboy.

Bankruptcy
A) should never be used as a strategy.
B) should be used only when one is legally forced to do so.
C) can be an effective type of retrenchment strategy.
D) should only be used for large firms.
E) should only be used for small, private firms.

Cash Cows represent the organization's best long-run opportunities for

growth and profitability.
A) TRUE
B) FALSE

Firms located in which quadrant of the Grand Strategy Matrix are in an

excellent strategic position?
A) I
B) II
C) III
D) IV
E) V

For companies located in Quadrant III of the Grand Strategy Matrix, the
first strategy recommended is
A) extensive cost and asset reduction.
B) asset expansion.
C) employee expansion.
D) immediate liquidation of assets.
E) divestiture.

For what type of company is the BCG Matrix ideal for analyzing?
A) Companies with more than one division
B) All companies
C) Companies with annual sales greater than $1 million
D) Companies with annual sales of less than $1 million
E) Large companies

Franchising is an effective means of implementing forward integration.

A) TRUE
B) FALSE

GoPro laid off one-fifth of its workforce and exited the drone market.
This is an example of
A) divestiture.
B) backward integration.
C) liquidation.
D) retrenchment.
E) forward integration.

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.
B) attempt to take advantage of opportunities by overcoming weaknesses.
C) are basically defensive and primarily act to minimize weaknesses and
avoid threats.
D) consider a company's or unit's strengths as a way to avoid threats.
E) are ways to get strategists to think "out of the box."

In a TOWS Matrix, ST Strategies

A) are generated by thinking of ways in which a company or business unit
could use its strengths to take advantage of opportunities.
B) attempt to take advantage of opportunities by overcoming weaknesses.
C) are basically defensive and primarily act to minimize weaknesses and
avoid threats.
D) consider a company's or unit's strengths as a way to avoid threats.
E) are ways to get strategists to think "out of the box."

In a TOWS Matrix, WT Strategies

A) are generated by thinking of ways in which a company or business unit
could use its strengths to take advantage of opportunities.
B) attempt to take advantage of opportunities by overcoming weaknesses.
C) are basically defensive and primarily act to minimize weaknesses and
avoid threats.
D) consider a company's or unit's strengths as a way to avoid threats.
E) are ways to get strategists to think "out of the box."

In the BCG Matrix, which element represents the industry growth rate in
sales, measured in percentage terms?
A) x-axis
B) y-axis
C) first quadrant
D) second quadrant
E) third quadrant
------
In the SPACE analysis, what does a (+6, +3) strategy profile portray?
A) A strong industry position
B) An unstable environment
C) A stable environment
D) A weak industry position
E) A weak financial position
------
In which situation would horizontal integration be an especially
effective strategy?
A) When an organization can gain monopolistic characteristics in a
particular area or region without being challenged by the federal
government for "tending substantially" to reduce competition
B) When an organization competes in a slowing industry
C) When decreased economies of scale provide major competitive advantages
D) When an organization has neither the capital nor human talent needed
to successfully manage an expanded organization
E) When competitors are succeeding due to managerial expertise or having
particular resources an organization possesses
------
Limited availability of quality distributors is a reason why competitive
advantage could result from forward integration.
A) TRUE
B) FALSE
------
Most likely, what was a cash cow in the past?
A) dog
B) failure
C) question mark
D) cat
E) star
------
Procter & Gamble's (P&G) sale of many of its brands in order to focus on
its core brands is an example of which type of strategy?
A) Related diversification
B) Unrelated diversification
C) Retrenchment
D) Divestiture
E) Liquidation
------
The BCG Matrix limitations include all of these except:
A) viewing every business as a star, cash cow, dog or question mark can
be an oversimplification.
B) requiring at least three years’ worth of data.
C) not reflecting divisional or industry growth over time.
D) not allowing a company to be classified as somewhere in between two
categories.
E) other variables such as size of market and competitive advantages are
not considered.
------
The firm should pursue conservative strategies if the coordinates of a
SPACE directional vector are (-1, +4).
A) TRUE
B) FALSE
------
The first company to manufacture and sell a new product or service is
called a(n)
A) opportunist.
B) first mover.
C) cost leader.
D) power broker.
E) ground breaker.
------
The particular capabilities and resources a firm possesses and the
superior way in which they are used is called
A) distinctive competencies.
B) differentiating capabilities.
C) situational proficiency.
D) core competencies.
E) distinctive characteristics.
------
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)
A) IFAS Table.
B) EFAS Table.
C) SFAS Table.
D) TOWS Matrix.
E) Issues Priority Matrix.
------
The top row of a QSPM consists of alternative strategies derived from all
of these except:
A) Grand Strategy Matrix.
B) BCG Matrix.
C) Space Matrix.
D) CPM Matrix.
E) IE Matrix.
------
The two internal dimensions represented on the axes of the SPACE Matrix
are
A) stability position and industry position.
B) industry position and internationalization.
C) internationalization and competitive position.
D) competitive position and financial position.
E) financial position and stability position.
------
The two positive-rated dimensions on the SPACE Matrix are
A) FP and CP.
B) CP and SP.
C) FP and IP.
D) IP and SP.
E) FP and SP.
------
There are four basic types of diversification: concentric, conglomerate,
forward, and backward.
A) TRUE
B) FALSE
------
What analytical tool has four quadrants based on two dimensions:
competitive position and market growth?
A) Competitive Profile Matrix (CPM)
B) Internal-External (IE) Matrix
C) Strategic Position and Action Evaluation (SPACE) Matrix
D) Grand Strategy Matrix
E) Quantitative Strategic Planning Matrix (QSPM)
------
What are the two external dimensions of the SPACE Matrix?
A) Stability position and industry position
B) Stability position and competitive position
C) Industry position and competitive position
D) Competitive position and financial position
E) Financial position and industry position
------
What are the two generic competitive strategies that Porter promotes as
the means for outperforming other corporations in a particular industry?
A) competitive scope and differentiation
B) diversification and concentration
C) lower cost and competitive scope
D) concentration and lower cost
E) lower cost and differentiation
------
What includes the set of shared values, beliefs, attitudes, customs,
norms, personalities, heroes and heroines that describe a firm?
A) Strategy
B) Culture
C) Mission
D) Objectives
E) QSPM
------
What refers to a strategy of seeking ownership of, or increased control
over a firm's competitors?
A) Forward integration
B) Conglomerate diversification
C) Backward integration
D) Horizontal integration
E) Concentric diversification
------
What type of strategies would you recommend when a firm's SPACE Matrix
directional vector has the coordinates (-2, +3)?
A) Aggressive
B) Conservative
C) Competitive
D) Defensive
E) Integrative
------
Which analytical tool consists of a nine-cell matrix?
A) Matching Matrix
B) Competitive Profile Matrix
C) SPACE Matrix
D) Grand Strategy Matrix
E) Internal-External Matrix
------
Which analytical tool determines the relative attractiveness of various
strategies based on the extent to which key external and internal
critical success factors are capitalized upon or improved?
A) Boston Consulting Group (BCG) Matrix
B) Strategic Position and Action Evaluation (SPACE) Matrix
C) Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix
D) Internal-External (IE) Matrix
E) Quantitative Strategic Planning Matrix (QSPM)
------
Which matrix is included in the decision stage of the strategy
formulation framework?
A) Internal Factor Evaluation Matrix
B) Quantitative Strategic Planning Matrix
C) BCG Business Portfolio Matrix
D) Grand Strategy Matrix
E) SPACE Matrix
------
Which of the following is NOT an advantage of being a first mover?
A) The company is able to establish a reputation as an industry leader.
B) The company is able to move down the learning curve to assume the cost
leader position.
C) A first mover can set the standard for all subsequent products in the
industry.
D) Being first provides a company profit advantages for about ten years
in consumer goods and about twelve years in industrial goods.
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 one of the risks of a cost leadership
strategy?
A) The technology that the organization has been using changes.
B) Achieving excessive success causing jealousy amongst competitors.
C) Competitors can achieve viable imitations.
D) Cost focusers achieve even lower cost in niche market segments.
E) Proximity in differentiation is lost.
------
Which of these is NOT a SPACE Matrix quadrant?
A) Aggressive
B) Defensive
C) Competitive
D) Offensive
E) Conservative
------
All of the following are examples of offerings at companies to promote a
corporate well-being culture EXCEPT
A) stress management programs.
B) health fairs.
C) abundance of bicycle racks onsite.
D) free health insurance for employees who exercise regularly.
E) cash incentives for completing Ironman triathlons.
------
All of the following are strategic marketing issues or decisions EXCEPT
A) to be a price leader or a price follower.
B) to use operating leverage.
C) to offer a complete or limited warranty.
D) to use heavy, light, or no TV advertising versus online advertising.
E) to use exclusive dealerships or multiple channels of distribution.
------
All of the following are ways and means for altering an organization's
culture EXCEPT
A) recruitment.
B) restructuring of an organization's design.
C) role modeling.
D) retrenchment.
E) mentoring.
------
An IPO ________ the owners' control of the firm.
A) increases
B) maintains
C) does not affect
D) dilutes
E) consolidates
------
Aspects of an existing culture that are antagonistic to a proposed
strategy should be
A) preserved.
B) emphasized.
C) built upon.
D) changed.
E) celebrated.
------
Changing a strategy to fit an existing culture
A) is usually less effective than changing a firm's culture to fit a new
strategy.
B) is usually more effective than changing a firm's culture to fit a new
strategy.
C) is just as effective as changing a firm's culture to fit a new
strategy.
D) is always the best option.
E) is never the right option.
------
Changing a strategy to fit an existing culture is usually more effective
than changing a firm's culture to fit a new strategy.
A) TRUE
B) FALSE
ANSWER:
Determining an appropriate mix of debt and equity in a firm's capital
structure is an important strategy-________ decision.
A) formulation
B) implementation
C) analysis
D) development
E) evaluation
------
Evaluating the worth of a firm
A) is an exact science.
B) requires both qualitative and quantitative skills.
C) is based solely on financial facts.
D) is known only to the firm's accountants.
E) is static.
------
If a firm incurs a loss during a particular year, or if the firm paid out
more in dividends than it had in net income, what happens to the retained
earnings (RE) amount?
A) It increases.
B) It is unchanged.
C) It decreases.
D) It doubles.
E) It has to be returned to shareholders.
------
Just-in-time describes
A) implementing strategies just before bankruptcy.
B) delivering materials just as they are needed.
C) a scheduling method for meetings.
D) a personnel planning method.
E) a process for improving quality.
------
Net income divided by number of shares outstanding is
A) EBIT.
B) EPS.
C) PAT.
D) NI.
E) EBITDA.
------
Operating income is sometimes also called
A) EPS.
B) SWOT.
C) ROA.
D) ROE.
E) EBIT.
------
Performing a(n) ________ analysis is a common way to determine the
appropriate capital structure needed.
A) five-forces
B) EPS/EBIT
C) value chain
D) business model
E) SWOT
------
Policies help an organization in all of the following ways EXCEPT
A) let both employees and managers know what is expected of them.
B) provide a basis for management control.
C) allow coordination across organizational units.
D) reduce the amount of time managers spend making decisions.
E) reduce work load of employees.
------
Production processes typically constitute more than ________ percent of a
firm's total assets.
A) 30
B) 40
C) 50
D) 60
E) 70
------
Recruitment, promotion, and mentoring are ways to alter an organization's
culture.
A) TRUE
B) FALSE
------
Restructuring is sometimes called
A) outsourcing.
B) downsizing.
C) strategizing.
D) unfreezing.
E) planning.
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Strategists should strive to preserve, emphasize, and build upon aspects
of an existing culture that are antagonistic to a proposed strategy.
A) TRUE
B) FALSE
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The denominator of EPS is
A) treasury stock.
B) shares authorized.
C) average number of shares.
D) shares outstanding.
E) preferred shares.
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The other name for operating income is
A) net income.
B) earnings-per-share.
C) earnings-before-interest-and-taxes.
D) gross margin.
E) return on assets.
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The primary benefit sought from restructuring is
A) employee involvement.
B) cost reduction.
C) increased morale.
D) increased number of hierarchical levels in the organization.
E) increased innovation.
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The strategy that deals with product and process innovation and
improvement is known as a(n) ________ strategy.
A) marketing
B) R & D
C) operations
D) financial
E) human resource management
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Two primary sources of capital are
A) debt and borrowings.
B) debt and equity.
C) equity and sale of assets.
D) debt and sale of assets.
E) debt and accounts receivable.
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Well-being programs
A) are too expensive for most companies to afford.
B) are desired by employees, but don't provide value to the company.
C) are becoming more prevalent as companies realize the benefits to the
firm.
D) attract prospective employees who then fail to take advantage of them.
E) are facing legal challenges from the health-care industry.
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What term is used to describe specific guidelines, methods, procedures,
rules, forms, and administrative practices established to support and
encourage work toward stated goals?
A) Long-term objectives
B) Policies
C) Annual objectives
D) Strategies
E) Values
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When attachments to a culture are severed in an organization's attempt to
change direction, employees and managers often experience deep feelings
of grief.
A) TRUE
B) FALSE
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Which element in the projected income statement CANNOT be forecasted
using the percentage-of-sales method?
A) Cost of goods sold
B) Selling expense
C) Administrative expense
D) Interest expense
E) Operating expenses
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Which is NOT a required step in perceptual mapping?
A) Select key criteria that effectively differentiate products or
services in the industry.
B) Serve two segments with the same strategy.
C) Plot major competitors' products or services in the resultant matrix.
D) Identify areas in the positioning map where the company's products or
services could be most competitive in the given target market.
E) Develop a marketing plan to position the company's products and
services appropriately.
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Which method of determining a firm's net worth divides the market price
of the firm's stock by the annual earnings per share, and multiplies this
number by the firm's average net income for the past five years?
A) Debt/Equity Method
B) Current Ratio Method
C) Price-Earnings Ratio Method
D) Long-term Asset Method
E) Outstanding Shares Method
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Which of the following is NOT a goal of financial strategies?
A) Examine the financial implication of corporate and business level
strategic options and identify the best financial course of action.
B) Provide the corporation with the appropriate financial structure and
funds to achieve its overall objectives.
C) Institute a new product development plan to generate profit potential.
D) Provide competitive advantage through a lower cost of funds and a
flexible ability to raise capital to support a business strategy.
E) Attempt to maximize the financial value of the firm.
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Which of the following is NOT a management issue central to strategy
implementation?
A) Devising policies
B) Revising reward and incentive plans
C) Minimizing resistance to change
D) Developing an effective human resources function
E) Developing budgets
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Which of the following is NOT an accepted approach for determining a
business's worth?
A) The Net Worth Method
B) The Net Income Method
C) The Return on Investment Method
D) The Price-Earnings Ratio Method
E) The Outstanding Shares Method
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Which of the following is NOT given as an example of a decision that may
require finance/accounting policies?
A) To extend the time of accounts receivable
B) To establish a certain percentage discount on accounts within a
specified period of time
C) To lease or buy fixed assets
D) To use LIFO, FIFO, or a market-value accounting approach
E) To be a price leader or a price follower
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Which of the following variables is NOT directly affected by market
segmentation?
A) Product
B) Place
C) Process
D) Promotion
E) Price
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Which two variables rank as marketing's most important contributions to
strategic management?
A) Diversification and budgeting
B) Marketing penetration and competition
C) Competition and collaboration
D) Product development and market development
E) Market segmentation and product positioning
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All of the following utility statements are relevant in developing a
mission statement EXCEPT
A) Do not offer me shoes. Offer me comfort for my feet and the pleasure
of walking.
B) Do not offer me furniture. Offer me comfort and the quietness of a
cozy place.
C) Do not offer me ideas, emotions, ambience, feelings, and benefits.
Offer me things.
D) Do not offer me books. Offer me hours of pleasure and the benefit of
knowledge.
E) Do not offer me a house. Offer me security, comfort, and a place that
is clean and happy.
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What question is asked in conjunction with the philosophy component of a
mission statement?
A) What are the firm's major products or services?
B) Is the firm committed to growth and financial soundness?
C) What are the basic beliefs, values, aspirations, and ethical
priorities of the firm?
D) Is the firm responsive to social, community, and environmental
concerns?
E) Are employees a valuable asset of the firm?
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Which of the following is NOT true of vision statements?
A) A vision statement should reveal the type of business the firm
engages.
B) Vision statements should be written from a customer perspective.
C) Vision statements should indicate the expected amounts of profits the
firm wants to make.
D) A vision statement should describe a desired future state.
E) The vision statement needs to be doable, but challenging.
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Which statement is TRUE?
A) Companies must choose between having a mission statement or a vision
statement.
B) A company can't have a mission statement unless it has a vision
statement.
C) A vision statement cannot be established until a company has developed
its mission statement.
D) The vision statement should be established before the mission
statement.
E) Companies are required by law to have both mission and vision
statements.
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Which type of statement should be created first and foremost?
A) Creed
B) Vision
C) Objective
D) Mission
E) Competitive advantage
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