Managerial Module 1

Managerial Module 

1. Introducing Management Module (No questions for this session)

Introduction (Without questions)

1. Introducing Management

2. The Nature of Strategic Management

The Nature of Strategic Management

2. The Nature of Strategic Management

1. The underpinnings of strategic management hinge on managers gaining an understanding of competitors, markets, prices, suppliers, distributors, governments, creditors, shareholders and customers worldwide.

  • true
  • false

2. Although the Internet has increased in popularity, it has actually led to increases in company expenses.

  • true
  • false

3. Optimizing for tomorrow the trends of today is the purpose of strategic management.

  • true
  • false

4. Even though useful, strategic planning has been cast aside by corporate America since the early 1990s.

  • true
  • false

5. Anything the firm does especially well compared to rival firms could be considered a competitive advantage.

  • true
  • false

6. Once a firm acquires a competitive advantage, they are usually able to sustain the competitive advantage for an extended period of time.

  • true
  • false

7. Identifying an organization’s existing vision, mission, objectives and strategies is the final step for the strategic management process.

  • true
  • false

8. Once an effective strategy is designed, modifications are rarely required.

  • true
  • false

9. Followed by commitment, understanding is the most important benefit of strategic management.

  • true
  • false

10. The changes that occurred at Disney after Robert Iger took over as CEO exemplifies the fact that more and more organizations are centralizing the strategic-management process.

  • true
  • false

11. The poor reward structure is one reason managers do not engage in strategic planning.

  • true
  • false

12. Crises and fires in an organization allows managers the training and time for effective strategic planning.

  • true
  • false

13. Top managers making many intuitive decisions that conflict with the formal plan is one pitfall managers should avoid in strategic planning.

  • true
  • false

14. Managers must be very formal in strategic planning because formality induces flexibility and creativity.

  • true
  • false

15. An integral part of strategy implementation must be to evaluate the quality of the strategic-management process.

  • true
  • false

16. Strategic-management must be a self-reflective learning process that familiarizes managers and employees in the organization with key strategic issues and feasible alternatives for resolving those issues.

  • true
  • false

17. Today, managers and employees can be found personally liable if they ignore, conceal, or disregard a pollution problem.

  • true
  • false

18. Merely having a code of ethics is not sufficient to ensure ethical business behavior.

  • true
  • false

19. In most situations, business strategy is very different than military strategy.

  • true
  • false

20. International operations can be as simple as exporting a product to a single foreign country.

  • true
  • false

21. The term “environment” includes all of the following except:

  • air.
  • water.
  • firms.
  • natural resources.
  • fauna

22.The one factor that has most significantly impacted the nature and core of buying and selling in nearly all industries has been

  • the Internet.
  • political borders.
  • corporate greed.
  • customer and employee focus.
  • the government.

23.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?

  • Strategy formulation
  • Strategy evaluation
  • Strategy implementation
  • Strategic management
  • Strategic leading

4. During what stage of strategic management are a firm’s specific internal strengths and weaknesses determined?

  • Formulation
  • Implementation
  • Evaluation
  • Feedback
  • Goal-setting

25. The trends in newspaper circulation in the United States provide support for which statement?

  • Sustainable competitive advantage is easy to maintain.
  • Several firms can have similar competitive advantages.
  • Some products are relatively immune to changes in the external environment
  • Most competitive advantages are hard to sustain
  • Competition is generally good for companies and consumers

26.Which individuals are most responsible for the success and failure of an organization?

  • Strategists
  • Financial planners
  • Personnel directors
  • Stakeholders
  • Human resource managers

27. The strategic-management process

  • occurs once a year.
  • is a sequential process.
  • is a continuous process.
  • applies mostly to companies with sales greater than $100 million.
  • applies mostly to small businesses

28. Which of the following is not included in the strategic management model?

  • Measure and evaluate performance.
  • Perform internal research to identify customers.
  • Establish long-term objectives.
  • Implement strategies.
  • Develop mission and vision statements.

29.The act of strengthening employees’ sense of effectiveness by encouraging and rewarding them to participate in decision-making and exercise initiative and imagination is referred to as:

  • Authoritarianism b.
  • Proaction
  • Empowerment
  • Transformation
  • Delegation

30. How do line managers become “owners” of the strategy?

  • by attending top manager meetings
  • by gathering information about competitors
  • by involvement in the strategic-management process
  • by becoming a shareholder of the firm
  • by buying off top managers

31.What is not a reason given for poor or no strategic planning in organizations? a. b. c. d. e.

  • Wasting of time
  • Being content with success
  • Fire-fighting
  • Poor reward structure
  • Trust of management

32.All of these are pitfalls an organization should avoid in strategic planning except:

  • using plans as a standard for measuring performance.
  • using strategic planning to gain control over decisions and resources
  • failing to involve key employees in all phases of planning.
  • too hastily moving from mission development to strategy formulation.
  • being so formal in planning that flexibility and creativity are stifled.

33. What is not a pitfall an organization should avoid in strategic planning?

  • Failing to communicate the plan to employees.
  • Involving all managers rather than delegating planning to a “planner”
  • Top managers not actively supporting the strategic planning process
  • Doing strategic planning only to satisfy accreditation or regulatory requirements

34. Which of the following statements is false?

  • Open-mindedness is an important guideline for effective strategic management.
  • Strategic management must become a self-perpetuating socialist mechanism.
  • No organization has unlimited resources.
  • Strategic decisions require trade-offs.
  • Strategic management must be a self-reflective learning process.

35. Principles of conduct that guide decision-making are known as

  • human rights.
  • the Constitution.
  • business ethics.
  • nonprofit organization policies.
  • social responsibility requirements.

36. What can be created by ethics training and an ethics culture?

  • Competitive responsibility
  • Competitive advantage
  • Strategic advantage
  • Employee cooperation
  • Comparative advantage

37. Military strategy is based on an assumption of __________, whereas business strategy is based on an assumption of __________.

  • conflict; cooperation
  • conflict; competition
  • cooperation; conflict
  • competition; conflict
  • cooperation; competition

38. ____________ are organizations that conduct business operations across national borders.

  • Domestic firms
  • Multinational corporations
  • Parent companies
  • Government-backed companies
  • Franchises

39. The greatest advantage of international operations is:

  • Reduced tariffs and taxes
  • Spreading economic risks over a wider number of markets
  • Access to global technology, culture and business practices
  • Gaining new customers
  • Less-intense competition

40. All of these are potential disadvantages of an international operation except: a. c. d. e.

  • overestimated weaknesses and underestimated strengths of competitors.
  • differing languages, cultures and value systems.
  • reduced tariffs and taxes.
  • complexity due to a multiple monetary system.
  • all of these are potential disadvantages.

3. The business Vision and Mission

The Business Vision and Mission

3. The Business Vision & Mission

1. Vision and mission statements can often be found in the front of annual reports.

  • true
  • false

2. Although it is important for companies to have a clearly defined mission statement, research has shown that less than 50% of all companies have used a mission statement in the previous five years.

  • true
  • false

3. The foundation for development of a comprehensive mission statement is provided by a clear vision.

  • true
  • false

4. The mission statement should be short—preferably one sentence

  • true
  • false

5. According to Peter Drucker, asking the question “What is our business?” is synonymous with asking the question “What is our vision?”

  • true
  • false

6. A declaration of an organization’s “reason for being” is the mission statement.

  • true
  • false

7. According to King and Cleland, carefully developed and written mission statements ensure unanimity of purpose within the organization.

  • true
  • false

8. Mission statements are sometimes difficult to derive because top management may disagree over company objectives.

  • true
  • false

9. A mission statement is usually a simple statement of specific beliefs.

  • true
  • false

10. A mission statement should be broad enough to reconcile differences among an organizations various stakeholders

  • true
  • false

11. Stakeholders of an organization include stockholders, customers and creditors, but not competitors.

  • true
  • false

12. Individuals who own stock in a corporation are considered stakeholders.

  • true
  • false

13. Stakeholders both affect and are affected by an organization’s strategic decisions

  • true
  • false

14. Mission statements should be stated with high level of precision.

  • true
  • false

15. The relative attention an organization will devote to meeting the claims of various stakeholders is indicated in a good mission statement.

  • true
  • false

16. Precision might stifle creativity in the formulation of an acceptable mission or purpose.

  • true
  • false

17. In most cases, several paragraphs are required to effectively state a mission statement.

  • true
  • false

18. An effective mission statement generates the impression a firm is successful, has direction, and is worthy of time, support and investment

  • true
  • false

19. According to Vern McGinnis, to be effective, all a mission statement need to do is define what the organization is and what the organization aspired to be.

  • true
  • false

20. It is generally a good idea to use the mission statement as a guide when completing an external and internal analysis.

  • true
  • false

21. The vision and mission statement can often be found

  • in the SEC report.
  • in annual reports.
  • on customer receipts.
  • on supplier invoices.
  • on community news bulletins.

22. According to recent studies, what percent of companies have used a mission statement sometime in the past five years?

  • 15%
  • 30%
  • 60%
  • 75%
  • 90%

23. Which of these basic questions should a vision statement answer?

  • What is our business?
  • Who are our employees?
  • Why do we exist?
  • What do we want to become?
  • Who are our competitors?

24. Which statement should be created first and foremost?

  • Strategic
  • Vision
  • Objectives
  • Mission
  • Competitive advantage

25. The ideal length of a vision statement is:

  • one page.
  • several paragraphs.
  • one sentence.
  • as long as necessary to convey the message.
  • several sentences.

26. Who is referred to as “the father of modern management?”

  • Deming
  • Peters
  • Drucker
  • McGinnis
  • Smith

27. What is the first step in the comprehensive strategic-management model?

  • Developing vision and mission statements
  • Performing external audits
  • Performing internal audits
  • Measuring and evaluating performance
  • Establishing long-term objectives

28. According to the comprehensive strategic-management model, which step needs to be completed immediately following the establishment of long-term objectives?

  • Developing vision and mission statements
  • Performing external audits
  • Performing internal audits
  • Generating, evaluating, and selecting strategies
  • Measuring and evaluating performance

29. The purpose of a mission statement is to declare all of these except:

  • a reason for being.
  • an annual financial plan.
  • a statement of purpose.
  • a statement of beliefs.
  • whom it wants to serve.

30. What is needed before people can focus on specific strategy formulation activities when developing a mission statement?

  • Negotiation
  • Compromise
  • Eventual agreement
  • a and b
  • All of the above

31. What is the best time to develop a mission statement?

  • before a business is opened
  • when the firm is successful
  • when the firm is in financial trouble
  • when the firm is in legal trouble
  • when the firm encounters competition

32. Which group would be classified as a stakeholder?

  • Communities
  • Banks
  • Suppliers
  • Employees
  • All of these

33. All stakeholders:

  • have claims and concerns about an organization, but these claims and concerns vary.
  • have the same claims and concerns about an organization.
  • have ownership rights in an organization.
  • have the same voting rights in an organization.
  • have environmental concerns as their top priority.

34. The three characteristics of a mission statement are a declaration of attitude, a declaration of social policy and:

  • an employee orientation.
  • a customer orientation.
  • a shareholder orientation.
  • an environmental orientation.
  • a profit orientation.

35. The potential for creative growth for the organization can be limited by

  • an overemphasis on stakeholders.
  • not enough emphasis on stakeholders.
  • a mission statement that is too general.
  • a mission statement that is too specific.
  • a mission statement that is too dynamic.

36. A proactive environmental policy is likely to lead to:

  • higher cleanup costs
  • conservation of energy
  • reduced customer loyalty
  • numerous liability suits
  • higher medical costs

37. In regard to its elderly workforce, Japan varies from the United States in that:

  • A smaller percentage of Japan’s senior citizens work
  • Japan does not have laws banning discrimination based on age
  • Most Japanese workers retire before 60
  • Japanese citizens are required to retire at 60
  • Japan is phasing in a shift from ages 65 to 60 as the date when a pension can be received

38.Effective mission statements can vary in

  • length.
  • content
  • format
  • specificity
  • all of the above

39 Which component of a mission statement addresses the firm’s distinctive competence or major competitive advantage?

  • Technology
  • Philosophy
  • Concern for public image
  • Customers
  • Self-concept

40. Which component of a mission statement addresses the basic beliefs, values, aspirations, and ethical priorities of the firm?

  • Technology
  • Philosophy
  • Concern for public image
  • Customers
  • Self-concept

Untitled multiple choice question

  • Put your answer option here
  • Put your answer option here

4. The External Assessment

4. The External Assessment

4. The External Assessment

1. Industry analysis is also referred to as external strategic management audit.

  • true
  • false

2. An external audit focuses on identifying and evaluating trends and events within the control of management.

  • true
  • false

3. The aim of an external audit is to develop an exhaustive list of every possible factor that could influence the business.

  • true
  • false

4. Five major categories of external variables are: (1) economic forces, (2) social and cultural forces, (3) political, governmental and legal forces, (4) technological forces and (5) demographic forces.

  • true
  • false

5. As many managers and employees as possible should be involved in the process of performing an external audit.

  • true
  • false

6. To perform an external audit, a company first must gather competitive intelligence and information about social, cultural, demographic, environmental, economic, political, legal, governmental and technological trends

  • true
  • false

7. Research findings suggest that a greater percentage of a firm’s profitability can be explained by the industry than can be explained by the firm’s internal factors.

  • true
  • false

8. Economic factors do not have much impact on the attractiveness of strategies.

  • true
  • false

9. An increase in interest rates is directly related to an increase in discretionary income and an increase in the demand for discretionary goods.

  • true
  • false

10. Political, governmental, and legal factors are considered key threats for most small and large organizations.

  • true
  • false

11. Political forecasts can be the most important part of an external audit for firms that depend heavily on government contracts.

  • true
  • false

12. The Internet is changing the very nature of many industries by altering product life cycles and changing the historical trade-off between production standardization and flexibility.

  • true
  • false

13. In practice, critical technology decisions are too often delegated to lower organizational levels or are made without an understanding of their strategic implications.

  • true
  • false

14. Forecasts are educated assumptions about future trends and events

  • true
  • false

15. Globalization is a process of worldwide integration of strategy formulation, implementation and evaluation activities.

  • true
  • false

16. A global strategy seeks to meet the needs of customers worldwide with the lowest cost at the highest value.

  • true
  • false

In an EFE Matrix, opportunities often receive higher weights than threats, but threats too can receive high weights if they are especially severe or threatening

  • true
  • false

Regardless of the number of key opportunities and threats included in an External Factor Evaluation Matrix, the highest possible total weighted score for an organization is 4.0, and the lowest possible total weighted score is 0.0

  • true
  • false

19. Both a Competitive Profile Matrix and an EFE Matrix have the same meaning in the weights, ratings and total weighted scores.

  • true
  • false

20. The critical success factors in a Competitive Profile Matrix are often the same as those in an EFE Matrix.

  • true
  • false

21. A firm’s strengths that cannot be easily matched or imitated by competitors are called

  • internal audits.
  • distinctive competencies.
  • external audits.
  • special properties
  • internal properties.

22. Who should perform an internal audit?

  • A private auditing firm
  • The organization’s accounting department
  • Managers from different units of the organization
  • A team of top-level managers and lower-level employees
  • The chief executive officer

23. The internal resource categories used in the resource-based approach are physical resources, human resources and

  • financial resources.
  • shareholder resources.
  • organizational resources.
  • natural resources.
  • technological resources.

24. Organizational resources include all of the following except:

  • employee training.
  • firm structure.
  • planning processes.
  • information systems.
  • copyrights.

25. Empirical indicators are resources that are either rare, hard to imitate, or

  • expensive.
  • inexpensive.
  • easily substitutable.
  • not easily substitutable.
  • inefficient.

26. Which of the following is not a cultural product?

  • Rites
  • Emotions
  • Rituals
  • Sagas
  • Symbols

27. What is the essential bridge between the present and the future that increases the likelihood of achieving desired results?

  • Motivating
  • Planning
  • Controlling
  • Staffing
  • Organizing

28. All of the following are basic duties of a manager except:

  • staffing
  • planning
  • consolidating
  • organizing
  • motivating

29. Who does a planning horizon of two to five years applies to?

  • top management
  • general management
  • middle management
  • lower management
  • all levels of management

30. _______ is a major component in motivation.

  • Forecasting
  • Organizational structure
  • Recruiting
  • Management development
  • Communication

31. Staffing involves all of these activities except:

  • recruiting.
  • transferring
  • customer analysis
  • managing union relations
  • training and developing.

32. The first step in the controlling function of management is to

  • take corrective actions.
  • restrict breaks employees take.
  • evaluate expense reports.
  • establish performance standards.
  • measure individual and organizational performance.

33. Opportunity analysis is one of the basic functions of

  • marketing.
  • management.
  • computer information systems.
  • production/operations.
  • research and development.

34. Selling includes all of these marketing activities except:

  • advertising.
  • dealer relations.
  • customer analysis.
  • publicity.
  • sales promotion.

35. What marketing function includes test marketing?

  • selling products/services
  • pricing
  • customer analysis
  • product/service planning
  • distributing

36. Which of the following is not a key question that can reveal internal strengths and weaknesses of the marketing department?

  • Does the firm have an effective sales organization?
  • Is our product quality good?
  • Are markets segmented effectively?
  • Are the firm’s products and services priced appropriately?
  • Does the firm have good liquidity?

37. Which of these is the allocation and reallocation of capital and resources to projects, products, assets and divisions of an organization?

  • Investment decision
  • Dividend decisions
  • Financing decisions
  • Restructuring decisions
  • Strategic decision

38. Which of the following ties all business functions together and provides the basis for all managerial decisions?

  • Management
  • Marketing
  • Information
  • Technology
  • Workforce

39. The process whereby a firm determines the costs associated with organizational activities from purchasing raw materials to manufacturing products to marketing those products is called

  • the resource-based approach.
  • value chain analysis.
  • strategic cost analysis.
  • the internal factor evaluation matrix.
  • cost-benefit analysis.

25. Which of the following is the first step in developing an IFE Matrix?

  • Determining the organization’s structure
  • Summing the weighted scores for each variable
  • Identifying the organization’s strengths and weaknesses
  • Identifying the organization’s functions of business
  • Determining the lead strategist

Untitled multiple choice question

  • Put your answer option here
  • Put your answer option here

5. Strategies in Action

5. Strategies in Action

5. Strategies in Action

1. Long-term objectives represent the results expected from pursuing certain strategies.

  • true
  • false

2. Objectives provide direction and allow for organizational synergy.

  • true
  • false

3. Strategic objectives include those associated with growth in revenues, growth in earnings, higher dividends, larger profit margins and improved cash flow.

  • true
  • false

4. Strategic objectives include larger market share, quicker on-time delivery than rivals, quicker design-to-market times than rivals, lower costs than rivals, and wider geographic coverage than rivals.

  • true
  • false

5. Since a combination strategy is not risky, many organizations pursue a combination of two or more strategies simultaneously.

  • true
  • false

6. Horizontal integration is seeking ownership or increased control over competitors

  • true
  • false

7. Gaining ownership or increased control over distributors or retailers is called forward integration strategy.

  • true
  • false

8. Forward integration strategy is especially effective when the availability of quality distributors is so limited as to offer a competitive advantage to those firms that integrate forward.

  • true
  • false

9. A strategy of seeking ownership or increased control of a firm’s supplier is backward integration

  • true
  • false

10. Cooperative arrangements and joint ventures between competitors are becoming increasingly popular.

  • true
  • false

11. Joint tend to fail when managers who must collaborate daily in operating the venture are not involved in forming or shaping the venture.

  • true
  • false

12. Divestiture would be an appropriate strategy when a need exists to introduce a new technology quickly.

  • true
  • false

13. The nonprofit sector is America’s largest employer

  • true
  • false

14. Strategists in governmental organizations operate with far more strategic autonomy than their counterparts in private firms.

  • true
  • false

15. Long-term objectives are needed at which level(s) in an organization?

  • Corporate
  • Divisional
  • Functional
  • All of these
  • None of these

16. Financial objectives involve all of the following except:

  • growth in revenues.
  • larger market share
  • higher dividends
  • greater return on investment.
  • a rising stock price

17. All of the following are important factors in the Balanced Scorecard except:

  • customer service
  • employee morale
  • product quality
  • business ethics
  • stockholder equity

18. What principle is based on the belief that the true measure of a really good strategist is the ability to solve problems?

  • Managing by crisis
  • Managing by objectives
  • Managing by extrapolation
  • Managing by exception
  • Managing by hope

19. Which level of strategy is most likely not present in small firms?

  • Corporate/company
  • Functional
  • Divisional
  • Operational
  • All of these are present in small firms

20. Which of the following is most likely not included in the functional level of a small company?

  • Finance
  • Marketing
  • R & D
  • Department managers
  • Human resource managers

21. Integration strategies are sometimes collectively referred to as which of these strategies?

  • Horizontal integration
  • Diversification
  • Vertical integration
  • Stuck-in-the-middle
  • Hierarchical integration

22. What refers to a strategy of seeking ownership of or increased control over a firm’s competitors?

  • Forward integration
  • Conglomerate diversification
  • Backward integration
  • Horizontal integration
  • Concentric diversification

23. Which strategy seeks to increase market share of present products or services in present markets through greater marketing efforts.

  • market penetration
  • forward integration
  • market development
  • backward integration
  • product development

24. When a domestic company first begins to export to India, it is an example of

  • horizontal integration
  • backward integration
  • forward integration
  • concentric diversification
  • market development

25. Adding new, unrelated products or services for present customers is called

  • forward integration
  • related diversification
  • backward integration
  • conglomerate diversification
  • unrelated diversification

26. What kind of strategy is retrenchment?

  • A turnaround or reorganization strategy
  • An expansion strategy
  • A conglomerate strategy
  • An intensive strategy
  • An offensive strategy

27. What term refers to selling a division of an organization.

  • Joint venture
  • Divestiture
  • Concentric diversification
  • Liquidation
  • Horizontal integration

28. All of the following are cooperative arrangements except:

  • R&D partnerships.
  • joint-bidding consortia.
  • cross-licensing agreements.
  • cross-manufacturing agreements.
  • marketing plans.

Untitled multiple choice question

  • Put your answer option here
  • Put your answer option here

6. Strategy Analysis & Choice

6. Strategy Analysis & Choice

6. Strategy Analysis & Choice

1. An organization’s present strategies, objectives and mission provide a basis for generating and evaluating feasible alternative strategies, coupled with the external and internal audit information

  • true
  • false

2. Sustainability is the idea that a business can meet its financial goals without hurting customers.

  • true
  • false

3. The first stage of the strategy-formulation framework is the input stage, followed by the decision stage.

  • true
  • false

4. Stage 2 in the strategy-formulation framework involves the Quantitative Strategic Planning Matrix.

  • true
  • false

5.The Strength-Weaknesse-Opportunities-Threats Matrix,the Strategic Position&Action Evaluation Matrix,the Boston Consulting Group Matrix,the Internal-External Matrix&the Grand Strategy Matrix are included in stage two of the strategy-formulation framework

  • true
  • false

6. Good intuitive judgment is always needed to determine appropriate weights and ratings in the input stage matrices.

  • true
  • false

7. The purpose of matching key factors is to generate feasible alternative strategies

  • true
  • false

8. Strengths-opportunities strategies are based on using a firm’s internal strengths to take advantage of external opportunities and threats.

  • true
  • false

9. A SWOT Matrix is composed of four cells for the four types of strategies it creates.

  • true
  • false

10. One of the steps of the SWOT Matrix is to list the firm’s key external opportunities

  • true
  • false

11. The SWOT matrix is widely used as an organizational tool and, if used appropriately, does not have any significant weaknesses.

  • true
  • false

12.The most important determinants of an organization’s overall strategic position are considered to be the 2 internal dimensions,financial strength&competitive advantage ,& the 2 external dimensions,industry strength and environmental stability (ES).

  • true
  • false

13. Strategy analysis and choice largely involves making __________ decisions based on __________ information.

  • long-term; short-term
  • subjective; objective
  • short-term; long-term
  • subjective; short-term
  • objective; subjective

14. Which stage in the strategy-formulation framework focuses on generating feasible alternative strategies?

  • Input
  • Output
  • Decision
  • Throughput
  • Matching

15. Which section of the SWOT Matrix involves matching internal strengths with external opportunities?

  • The WT cell
  • The SW cell
  • The WO cell
  • The ST cell
  • The SO cell

16. Which strategies aim at improving internal weaknesses by taking advantage of external opportunities?

  • SO
  • WO
  • SW
  • ST
  • WT

17. Which strategies use a firm’s strengths to avoid or reduce the impact of external threats?

  • SW
  • WO
  • SO
  • ST
  • WT

18. Which strategies are defensive tactics directed at reducing internal weaknesses and avoiding environmental threats.

  • SO
  • WO
  • SW
  • ST
  • WT

19. How many cells are in a SWOT Matrix?

  • two
  • four
  • six
  • eight
  • nine

20. Which of the following is not a step of a SWOT Matrix?

  • List the firm’s key external threats.
  • Match strengths with external opportunities and record the resultant SO strategies in the appropriate cell.
  • Match internal weaknesses with external threats and record the resultant WT strategies.
  • List the firm’s external weaknesses.
  • List the firm’s external opportunities

7. Implementing Strategies, Management & Operations Issues

7. Implementing Strategies, Management & Operations Issues

7. Implementing Strategies, Management & Operations Issues

1. Effective strategy formulation can usually guarantee successful strategy implementation.

  • true
  • false

2. Strategy formulation is the managing of forces during the action, whereas strategy implementation is the positioning of forces before the action.

  • true
  • false

3. Annual objectives are key components in the strategic-management process because they dictate how resources will be allocated.

  • true
  • false

4. Horizontal consistency is more important than vertical consistency in developing annual objectives.

  • true
  • false

5. Policies refer to specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work toward stated goals.

  • true
  • false

6. Strategies clarify what can and cannot be done in pursuit of an organization’s objectives.

  • true
  • false

7. Not allocating resources according to the priorities indicated by approved objectives is detrimental to the strategic-management process.

  • true
  • false

8. Medium-sized firms tend to be divisionally structured, whereas large firms tend to use an SBU (strategic business unit) or matrix structure.

  • true
  • false

9. Tasks and activities are grouped together by business function in a divisional organizational structure.

  • true
  • false

10. When developing an organizational chart, the top executive of the firm should be reserved for the President.

  • true
  • false

11. When developing an organizational chart, it is not wise to recommend a dual title for just one executive.

  • true
  • false

12. An effective bonus system should be based on two key factors: annual objectives and long-term objectives

  • true
  • false

13. Gain sharing requires employees or departments to establish performance targets; if actual results exceed objectives, all members get bonuses.

  • true
  • false

14. People’s anxieties are raised with the thought of change because they fear economic loss, inconvenience, uncertainty and a break in normal social patterns.

  • true
  • false

15. Resistance to change can be considered the single greatest threat to successful strategy implementation.

  • true
  • false

16. Recently, an increasing number of companies have been implementing less rigorous environmental policies.

  • true
  • false

17. Managing as if the earth matters requires an understanding of how international trade, competitiveness and global resources are connected.

  • true
  • false

18. Changing a strategy to fit an existing culture is not as effective as changing a firm’s culture to fit a new strategy

  • true
  • false

19. Strategy formulation

  • is managing forces during the action.
  • focuses on effectiveness.
  • is primarily an operational process.
  • requires coordination among many people.
  • all of the above.

20. Which of these is true about strategy implementation?

  • It is positioning forces before the action.
  • It focuses on effectiveness.
  • It is primarily an operational process.
  • It is primarily an intellectual process.
  • It requires intuitive skills.

21. How are objectives in the areas of profitability, growth and market share commonly established?

  • Business segment
  • Geographic location
  • Customer groups
  • Product
  • All of the above

22. Establishing objectives is a

  • top-level activity.
  • centralized activity
  • decentralized activity
  • centralized-decentralized activity
  • command-and-control activity.

23. What are guidelines, methods, procedures, rules, forms and administrative practices known as?

  • Long-term objectives
  • Policies
  • Annual objectives
  • Strategies
  • Goals

24. Which of the following issues may not require a management policy?

  • To establish a high- or low-safety stock of inventory
  • To increase motivation
  • To offer numerous or few employee benefits
  • To discourage insider trading
  • To promote from within to or to hire from the outside

25. Which term is best defined as a central management activity that allows for strategy execution.

  • Policy-making
  • Goal-setting
  • Establishing annual objectives
  • Resource allocation
  • Conflict

26. A disagreement between two or more parties on one or more issues is called a(n)

  • integrated solution.
  • conflict.
  • compromise.
  • diffusion.
  • avoidance.

27. Conflict in an organization is

  • always bad.
  • always good.
  • sometimes good and sometimes bad.
  • a sign of bankruptcy.
  • avoidable.

28. What are three categories of approaches for managing and resolving conflict?

  • Avoidance, diffusion and confrontation
  • Avoidance, payoff and diffusion
  • Confrontation, ignorance and objectivity
  • Buy, sell and hold
  • There are no good ways to manage conflict

29. Which approach for managing and resolving conflict involves playing down differences between conflicting parties while accentuating similarities and common interests?

  • Avoidance
  • Resistance
  • Compliance
  • Diffusion
  • Confrontation

30. Why do changes in company strategy often require changes in the way an organization is structured?

  • Structure dictates how goals and objectives will be established.
  • Structure dictates authority over projects.
  • Structure dictates how resources will be obtained
  • Structure dictates strategy.
  • Structure dictates how money is spent.

31. What type of organizational structure do most small businesses follow? a. b. c. d. e.

  • Divisional structure by product
  • Functional structure
  • Divisional structure by customer
  • Process type structure
  • Matrix structure

32. What is not one of the basic ways a divisional structure can be organized?

  • By geographic area
  • By product or service
  • By customer
  • By process
  • By cost

33. A divisional structure by geographic area is most appropriate when

  • organizations have similar branch facilities located in widely dispersed areas.
  • an organization offers only a limited number of products or services.
  • strict control and attention to product lines are needed.
  • an organization has many skilled managers.
  • the firm serves one geographic area.

34. What is the most complex form of organizational structure? a. b. c. d. e.

  • Divisional
  • SBU
  • Matrix
  • Functional
  • Geographic

35. Which organizational structure has ambiguous roles for senior executives as a major disadvantage?

  • functional
  • divisional
  • strategic business unit (SBU)
  • matrix
  • process

36. Which term is most often concerned primarily with shareholder well-being rather than employee well-being?

  • Benchmarking
  • Reengineering
  • Product redesign
  • Process management
  • Restructuring

37. Which of these involves comparing a firm against the best firms in the industry on a wide variety of performance-related criteria?

  • Restructuring
  • Process redesign
  • Reengineering
  • Delayering
  • Benchmarking

38. Which pay strategy is not a form of incentive compensation?

  • Bonus system
  • Hourly wage
  • Gain sharing
  • Profit sharing
  • All of these are forms of incentive compensation.

39. What change strategy involves giving orders and enforcing those orders?

  • a. self-interest
  • educative
  • force
  • rational
  • diffusion

40. Resistance to change can manifest itself through

  • absenteeism.
  • sabotaging production machines.
  • filing unfounded grievances.
  • unwillingness to cooperate.
  • all of the above

8. Strategy Review, Evaluation, & Control

8. Strategy Review, Evaluation, & Control

8. Strategy Review, Evaluation, & Control

1. Most strategists believe that an organization’s well being depends on evaluation of the strategic-management process

  • true
  • false

2. Adequate, timely feedback is important to effective strategy evaluation.

  • true
  • false

3. Too much emphasis on evaluating strategies may be expensive and counterproductive.

  • true
  • false

4. Strategy evaluation should have a long-run focus and avoid a short-run focus.

  • true
  • false

5. According to Richard Rumelt, consonance and consistency are based on a firm’s external assessment.

  • true
  • false

6. According to Rumelt, consistency and feasibility are largely based on a firm’s internal assessment.

  • true
  • false

7. Consistency, distinctiveness, advantage and feasibility are Richard Rumelt’s four criteria for evaluating a strategy.

  • true
  • false

8. Strategy evaluation is becoming increasingly easier with the passage of time, given the technological advances.

  • true
  • false

9. The decreasing time span for which planning can be done with any degree of certainty is a reason strategy evaluation is more difficult today.

  • true
  • false

10. Strategies may be inconsistent if policy problems and issues continue to be brought to the top for resolution.

  • true
  • false

11. Competitive advantages normally are the result of superiority in one of three areas: feasibility, consistency, or consonance.

  • true
  • false

12. Regardless of the size of the organization, a certain amount of management by wandering around at all levels is essential to effective strategy evaluation.

  • true
  • false

13. Because large companies have more at stake, it is more important for large organizations to conduct strategy evaluation than small companies.

  • true
  • false

14. The end of the fiscal year is the best time to do strategy evaluation

  • true
  • false

15. Changes in the organization’s management, marketing, finance, R&D and CIS strengths and weaknesses should all be the focus of a revised EFE matrix in strategy evaluation.

  • true
  • false

16. In strategy evaluation, a revised IFE matrix should indicate how effective a firm’s strategies have been in response to key opportunities and threats.

  • true
  • false

17. Strengths, weaknesses, opportunities and threats should continually be monitored for change because it is not really a question of whether these factors will change but rather when they will change and in what ways.

  • true
  • false

18. When taking corrective action, you need to compare expected results to actual results.

  • true
  • false

19. Criteria for evaluating strategies should be measurable and easily verifiable

  • true
  • false

20. Specific financial ratios are rarely used criteria to evaluate strategies.

  • true
  • false

21. 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
  • All of the above.
  • Both b and c

22. The purpose of strategy evaluation is to

  • increase the budget annually.
  • alert management to problems or potential problems
  • make budget changes.
  • evaluate employees’ performance.
  • improve R&D programs.

23. What is the cornerstone of effective strategy evaluation?

  • Adequate and timely feedback
  • Quality and quantity of managers
  • Smaller ratio of top- to lower-level management
  • Evaluation preceding implementation stage
  • Taking corrective actions

24. All of these are Richard Rumelt’s criteria to evaluate a strategy except:

  • advantage.
  • consistency.
  • feasibility.
  • distinctiveness.
  • consonance.

25. What is happening to strategy evaluation with the passage of time?

  • increasingly difficult
  • much simpler
  • very convenient
  • an unnecessary activity
  • less important

26. All of the following are reasons strategy evaluation is more difficult today except:

  • a dramatic increase in the environment’s complexity.
  • the increasing number of variables.
  • the increase in the number of both domestic and world events affecting organizations
  • the decreasing difficulty of predicting the future with accuracy.
  • the rapid rate of obsolescence of even the best plans.

27. Which of the following is not a reason for the increasing difficulty of evaluating strategies?

  • Product life cycles are longer today than ever.
  • Domestic and world economies are less stable than ever.
  • Product development cycles are longer than ever.
  • Technological advancement is more rapid.
  • Change is occurring more frequently than ever.

28. What is important because organizations face dynamic environments in which key external and internal factors often change quickly and dramatically?

  • Strategy formulation
  • Strategy evaluation
  • Strategy simplification
  • Strategy modification
  • Strategy implementation

29. A final broad test of strategy is its

  • advantage
  • feasibility.
  • consonance.
  • consistency.
  • distinctiveness

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

  • employees
  • position
  • consistency.
  • feasibility.
  • governance

31. What term refers to the need for strategists to examine sets of trends, as well as individual trends in evaluating strategies?

  • Consistency
  • Consonance
  • Synergy
  • Feasibility
  • Advantage

32. In evaluating strategies, which one of Rumelt’s criteria for evaluating strategies, refers to the need for strategists to examine sets of trends?

  • consistency
  • consonance
  • feasibility
  • advantage
  • empowerment

33. If success for one organizational department means failure for another department, then strategies may be

  • synergistic.
  • advantageous.
  • in consonant
  • failures.
  • inconsistent.

34. 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

  • increased productivity.
  • dysfunctional behavior.
  • decreased number of complaints.
  • decreased turnover.
  • increased number of litigations.

35. Strategy-evaluation activities should be performed

  • on a periodic basis.
  • at the onset of a problem
  • on a continuous basis.
  • upon completion of major projects.
  • every two years.

36. Corrective actions are not needed when

  • changes have occurred in the firm’s internal strategic position.
  • external and internal factors have not significantly changed.
  • the firm is not progressing satisfactorily toward achieving stated objectives.
  • competitive factors are on the rise.
  • the industry is slowing down.

37. When you discover major changes have occurred in the firm’s internal strategic position while conducting strategy evaluation, you should

  • continue on the present strategic course.
  • immediately discontinue all aspects of the present strategic course
  • take corrective actions.
  • add additional funds to the present strategic plan.
  • copy the actions of major competitors.

38. Changes in the organization’s management, marketing, finance/accounting, R&D and CIS strengths and weaknesses should be the focus of a revised

  • mission.
  • IFE matrix.
  • vision.
  • EFE matrix.
  • EPM matrix

39. A revised __________ should indicate how effective a firm’s strategies have been in response to key opportunities and threats.

  • IFE matrix
  • mission
  • EFE matrix
  • vision
  • CPM matrix

40.Which of the following is not included in measuring organizational performance?

  • Comparing results to competitors’ expectations.
  • Examining progress being made toward meeting stated objectives.
  • Investigating deviations from plans
  • Evaluating individual performance
  • Comparing expected results to actual results.

Untitled multiple choice question

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Untitled multiple choice question

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  • Put your answer option here