Long-term objectives are needed at which level(s) in an organization?
A) Corporate B) Divisional C) Functional *D) All of the above*
What principle is based on the belief that the true measure of a really good strategist is the ability to solve problems?
A) Managing by crisis
What principle is built on the idea that there is no general plan for which way to go and what to do?
E) Managing by subjectives
All of the following are listed among the “softer” factors in the Balanced Scorecard except
E) stockholder equity.
Which level of strategy is most likely not present in small firms?
Microsoft opening its own retail stores is an example of which type of strategy?
A) Forward Integration
Cadbury PLC selling its Australian drinks business to Asahi Breweries Ltd. of Japan is an example of which type of strategy?
Burger King opening its first restaurant in Japan is an example of which type of strategy?
D) Market Development
Integration strategies are sometimes collectively referred to as which of the following categories of strategies?
C) Vertical integration
Web sites that sell products directly to consumers are examples of which type of strategy?
C) Forward integration
Which of these strategies is effective when the number of suppliers is small and the number of competitors is large?
D) Backward integration
What refers to a strategy of seeking ownership of, or increased control over a firm’s competitors?
D) Horizontal integration
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.
Which strategy seeks to increase market share of present products or services in present markets through greater marketing efforts?
A) Market penetration
Which of these is a basic activity of strategy evaluation?
A) Reviewing the underlying internal and external factors that represent the bases of current strategies B) Measuring organizational performance C) Taking corrective actions *D) All of the above*
Too much emphasis on evaluating strategies
A) may be expensive and counterproductive.
What is the cornerstone of effective strategy evaluation?
A) Adequate and timely feedback
With the passage of time strategy evaluation is becoming
A) increasingly difficult
B) is no guarantee of success tomorrow
According to Rumelt, the final broad test of strategy is its
Competitive advantage normally is the result of superiority in resources, skills and
What term refers to the need for strategists to examine sets of trends, as well as individual trends, in evaluating strategies?
Which one of Rumelt’s criteria for evaluating strategies refers to the need for strategists to examine sets of trends?
If success for one organizational department means failure for another department, then strategies may be
Modern organizational realities demand that employees demonstrate greater
A) flexibility. B) innovation. C) creativity. D) initiative. *E) All of the above*
Strategy-evaluation activities should ideally be performed
C) on a continuous basis
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
In the course of strategy evaluation if you discover that major changes have occurred in the firm’s internal strategic position, you should
C) take corrective actions.
Changes in the organization’s management, marketing, finance/accounting, production/operations, R&D and MIS strengths and weaknesses should be the focus of a revised
B) IFE matrix
A revised ________ should indicate how effective a firm’s strategies have been in response to key opportunities and threats.
C) EFE matrix
Which of the following is a corrective action a company might take to correct unfavorable variances?
A) Divesting a division B) Revising objectives C) Raising capital with stock or debt D) Allocating resources differently *E) All of the above*
What is the basis for quantitative financial evaluation?
D) financial ratios
Also important in evaluating strategies are _______ criteria, like high absenteeism and turnover rates, or low employee satisfaction.
Financial ratios 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
E) the performance of competitors.
Most quantitative criteria are geared to ________ objectives rather than ________ objectives.
C) annual; long-term
What corrective actions might a firm take during strategy evaluation?
A) Revising the business mission B) Issuing stock C) Revising objectives D) Selling a division *E) All of the above*
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?
C) Future shock
Corrective actions should always
A) strengthen an organization’s competitive position in its industry.
Research suggests that which of the following is one of the best ways to overcome individuals’ resistance to change in strategy evaluation?
What aims to balance long-term with short-term concerns, financial with non-financial concerns, and internal with external concerns?
B) The Balanced Scorecard approach
Which of the following is not a key attribute that serves as one of the evaluative criteria for Fortune’s “America’s Most Admired Companies?”
D) Amount of physical resources
The strategy-evaluation process
D) should foster mutual understanding and trust.
The strategy-evaluation process should foster
A) mutual understanding.
What activity is defined as having alternative plans that can be put into effect if certain key events do not occur as expected?
D) Contingency planning
Sustainability refers to the extent that an organization’s operations and actions _______ the natural environment.
A) protect B) mend C) preserve D) reflect good stewardship of *E) All of the above*
Business ethics, _______, and sustainability issues are interrelated and impact all areas of the comprehensive strategic-management model.
A) social responsibility
Bad ethics can _______ strategic plans.
B) derail even the best
_______ are the individuals primarily responsible for ensuring that high ethical principles are espoused and practiced in an organization.
D) Strategists such as CEOs and business owners
Which of the following business actions is considered to be unethical?
E) Misleading labeling
A code of business ethics is
A) a document that provides behavioral guidelines that cover daily activities and decisions within an organization.
_______ refers to policies that require employees to report any unethical violations they discover or see in the firm.
Responsibility for encouraging ethical decision making and ensuring ethical behavior in a firm lies with
D) both a firm’s strategists and its managers.
More and more firms believe that ethics training and an ethics culture
D) create strategic advantage.
Firms can align ethical and strategic decision making by
D) monitoring departmental and corporate performance regarding ethical issues.
A) bestowing a gift to influence the recipient’s conduct.
The U.S. Justice Department and many other organizations worldwide are _______ bribery.
A) stepping up their initiatives against and their prosecution of
According to the text, the first social responsibility of any business is to
E) None of the above
Social policy can best be defined as
A) the responsibilities a firm has to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups.
Firms should strive to engage in social activities that
A) have economic benefits.
If a firm has a bad sustainability record this will
C) cause investors to closely scrutinize the firm.
Which state generates the greatest number of megawatts of wind power?
A document that discloses to shareholders information about a firm’s labor practices, product sourcing, energy efficiency, environmental impact, and business ethics practices is known as
B) a sustainability report.
It is _______ for a business to provide a sustainability report annually to the public.
A) good business
_______ has 18 buildings in California alone powered only by solar energy.
Managers and employees today must be careful not to ignore, conceal, or disregard a pollution problem or they could
A) be fired. B) be demoted. C) be held indirectly responsible for their firm’s pollution. D) have their firm turn on them in a quest for leniency. *E) All of the above*
It has become _______, since uniform standards defining environmentally responsible company actions are rapidly being incorporated into our legal landscape.
A) more and more difficult for firms to make “green” claims when their actions are not substantive or even true
What challenge facing all organizations requires managers to formulate strategies that preserve and conserve natural resources and control pollution?
In an effort to manage ecological challenges, many companies are
A) moving environmental affairs from the staff side of the organization to the line side.
Preserving the environment should be a permanent part of doing business for which of the following reasons?
E) More lenders are examining the environmental liabilities of businesses seeking loans.
A proactive environmental policy is likely to lead to
B) conservation of energy.
_______ is a set of standards in fields such as environmental auditing, performance evaluation, and labeling that is adopted by thousands of firms worldwide to certify to their constituencies that they are conducting business in an environmentally friendly manner.
A) ISO 14001
More than 2,000 scientists convened together in Copenhagen in March 2009 and reported to the world that global warming is
B) worse than expected.