Capstone midterm
For many firms, a key decision with great bearing on research and development spending is whether to be a "first mover" or a
"late follower"
A total weighted score of ______ is an external factor evaluation matrix indicated that an organization is responding in an outstanding wat to existing opportunities and threats in its industry
4.0
What occurs when two or more companies form a temporary partnership or consortium for the purpose of capitalizing on some oppertunity?
A joint venture
If suppliers as unreliable or too costly, which of these strategies may be appropriate?
Backward integration
How do line managers become "owners" of the strategy?
By involvement in the strategic management process
One difference between a competitive profile matrix (CPM) and an external factor evaluation is that
CPM includes both internal and external issues
T/F: An external audit focuses on identifying and evaluating trends and events within the control of management
False
T/F: Test marketing is used more frequently by industrial companies than consumer goods companies
False
T/F: The five major categories of variables known as external forces are: 1) economic forces, 2) social, cultural demographic and natural enviroment forces, 3) political governmental, and legal forces, 4) technological forces and 5) competitive forces.
False
T/F: capacity decisions concern distances from raw materials to production sites to customers.
False
Which of the three finance and accounting decisions involved determining the best capital structure for the firm?
Financing
During what stage of strategic management are a firms specific internal strengths and weaknesses determined?
Formulation
Whenever new firms can easily enter a particular industry, the intensity of competitiveness among firms tends to
Increase
According to greenley, strategic management offers all of the following benefits EXCEPT
Increased resistance to change
Which strategy would be most appropriate when the distinctive compentencies of two or more firms complement each other especially well>
Joint Venture
Which of the following is the first step in developing an IFE Matrix?
Listing key internal strengths and weaknesses
What are enduring statements of purpose that distinguish one business from other similar firms?
Mission statements
What are guides to decision making that address repetitive or recurring situations called?
Policies
When an industry relies heavily on government contracts, which forecasts can be the most important part of an external audit?
Political
which strategy is effective when new, but related products could be offered highly competitive prices?
Related diversification
When using external factor evaluation (EFE) matrix, what is done after multiplying each factors weight by its rating to determine a weighted score?
Summing the weighted scores for each variable to determine the total weighted score for the organization
____ is NOT a strategy implementation activity.
Taking corrective actions
In general, what happens to American goods in overseas markets when there is a strong dollar?
They are more expensive
T/F: First mover advantages refer to the benefits a firm may achieve by entering a new market or developing a new product or service prior to rival firms
True
T/F: Laser eye surgery would be considered a substitute product for eyeglasses and contact lenses
True
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
Value Chain Analysis
Which is not a reason joint ventures fail?
Venture risk was minimized
Which of these basic questions should a vision statement answer>
What do we want to become?
Under which condition would a cost leadership strategy be especially effective?
When the products of rival sellers are essentially identical an suppliers are readily available from any of several eager sellers
A systematic and ethical process for gathering and analyzing information about the competitions activities and general trends to further a business own goal is called
competitive intellegence
Military strategy is based on an assumption of ________ whereas business strategy is based on an assumption of _____
conflict;competition
What is not considered to be a basic activity or management?
consolidating
______ can reveal the demographic characteristics of an organizations customers
consumer profiling
Long-term objectives should be all of the following EXCEPT
continually changing
which of the nine essential components of a mission statement does this excerpt illustrate? "We believe our first responsibility is to the doctors, nurses, patients, mothers and all others who use our products and services"
customers
A firms strengths that cannot be easily matched or imitated by competitors are called
distinctive competencies
which strategy seeks to increase market share for present products or services in present markets through greater marketing efforts?
market penetration
A resource is valuable if it is rare, hard to imitate or
not easily substitutable
A pattern or behavior developed by an organization as it learns to cope with its problems of external adaption and internal integration, and that has worked well enough to be considered valid and to be taught to new members as the correct way to perceive, think and feel is called
organized culture
which function of management includes areas such as job design, job specifications, job analysis and unity of command
organizing
When companies are hired by other companies to take over funtional operations such as human resources, information systems, payroll, accounting, or customer service, this is called
outsourcing
All of the following are political, governmental, and legal variable that can represent key opportunities or threats to organizations EXCEPT
population changes by race, age, sex and level of affluence
in order to appeal to diverse stakeholders, an effective mission statement should be
reconciliatory
effective and carefully planned mission statements
require infrequent major changes, but are always subject to revision
What are the 5 forces that make up porters 5 forces model
rivalry among competing firms bargaining power of consumers bargaining power of suppliers potential development of substitute products potential entry of new competitors
which component of a mission statement addresses the firms distinctive competence or a major competitive advantage?
self-concept
The historical trend of people moving from _____ has drastically slowed
the northeast to the sunbelt
one of the benefits of having a clear mission and vision is the promotion of a sense of shared expectations among all managers and employees
true
A pasta manufacturers purchase of some pet food brands is an example of
unrelated diversification
All of these are pitfalls an organization should avoid in strategic management EXCEPT
using plans as a standard for measuring practice
good mission statements identify the ______ of a firms products to its customers
utility
what is not considered to be a basic function of marketing
value chain analysis
Backward integration is effective in all of these cases EXCEPT
when the advantages of stable prices are not particularly important
A form of bankruptcy in which all the organizations assets are sold in parts for their tangible worth is
chapter 7
When a domestic company first begins to export to india, it is an example of
market development
which ratio would be considered an activity ratio?
Average collection period
Procter & Gambles sale of many of its brands in order to focus on its core brands is an example of which type of strategy?
Divestiture
The goal of strategic management is to
achieve and maintain competitive advantage
The purpose of a mission statement i s to declare all of these excpet?
an annual finance plan
in the process of developing a mission statement, it is important to involve
as many managers as possible
according to McGinnis, a mission statement should be all of the following except
broad enough to include all ventures
The internet has transferred power from ______ to _______
businesses; individuals
an overly general mission statement that _______ could be dysfunctional
does not exclude any strategy alternatives
According to drucker, a business mission is the foundation for all of the following except?
employee wage rates
The act of strengthening employees sense of effectiveness by encouraging and rewarding them for participating in decision making and exercising initiative and imagination is referred to as
empowerment
IN mass retailing, big box companies like walmart, best buy and sears are
finding that less brick and mortar is better
Amazons start of rapid delivery services in some US cities is an example of which type of strategy?
forward integration
according to the comprehensive strategic management model, which step immediately follows the establishment of long term objectives?
generating, evaluating and selecting strategies
which groups would be classified as stakeholders?
governments, creditors, suppliers, and employees
Many economists say the current rash of trade constraints will make it ______ for global economic growth.
harder
When the products being purchased are standard or undifferentiated, it results in __________ bargaining power of consumers
higher
Strategy evaluation is necessary because
internal and external factors are constantly changing
The strategic management process
is a continuous process
What category of ratios measures a firms ability to meet its short term obligations?
liquidity