chapter 2 Jam and Nuts is evaluating their resources so that they can compete with other companies. They have evaluated their plant, equipment, and geographic location. What other physical resource do they need to evaluate to complete this scan? A) Contro

) Selena is leading the strategic groups through an exercise to define the company's mission and goals through a SWOT (strengths, weaknesses, opportunities, and threats) analysis. She is employing A) strategy implementation. B) task design. C) selection and training. D) strategy formulation. E) strategy evaluation.

D

During the strategic implementation stage of the strategic management process, an organization A) decides on a strategic direction. B) defines its mission and goals. C) establishes external opportunities and threats. D) ensures that it has skilled employees in place. E) determines its internal strengths and weaknesses.

D

Which of the following statements is true of variable costs incurred by firms? A) These costs are independent of the number of goods produced by firms. B) The rent and interest paid by firms are examples of variable costs. C) These costs are the difference between what firms charge for their products and the fixed costs of the products. D) These costs change directly with the units produced. E) These costs are the total amount of margin made by a firm.

D

Dionne, the HR manager, has been asked to share issues in the strategy formulation process. How do you know this is part of a two-way linkage? A) The strategic planning function and the human resource management function are interdependent. B) The two-way linkage level is the lowest level of integration. C) The human resource management executive has no time to take a strategic outlook toward human resource issues. D) The human resource function is limited to monitoring day-to-day activities. E) The strategic planning function and the human resource management function are completely dependent.

A

Pluto Inc., a large manufacturer of desktops and laptops, has decided to enhance revenues by expanding its product line. It has identified the tablet market as a possible market to expand and has identified Compco Inc. as a potential competitor. Pluto Inc. is currently in the ________ stage of the strategic management process. A) strategy formulation B) strategy evaluation C) strategy execution D) strategy consultation E) strategy implementation

A

Sophie, the HR manager, checks her email, completes paperwork, and returns voicemail. These activities are part of the A) administrative linkage. B) one-way linkage. C) two-way linkage. D) integrative linkage. E) executive linkage.

A

To achieve 100 percent compliance on the next 3 years' compliance inspections is an example of a A) goal. B) mission. C) strategy. D) vision. E) value.

A

When an organization develops integrated manufacturing systems such as advanced manufacturing technology and just-in-time inventory control, it needs to assess the employee skills required to run these systems and train them accordingly. These assessments and training programs intended to enable an organization to achieve its goals fall under A) strategic human resource management. B) the job characteristics model. C) diversity management. D) the employee stock ownership plan. E) participative management.

A

Which of the following is the lowest level of integration between the human resource management function and the strategic management function? A) Administrative linkage B) Two-way linkage C) Integrative linkage D) Executive linkage E) One-way linkage

A

Which of the following linkages has its human resource management functions built right into the strategy formulation and implementation processes? A) Integrative linkage B) Administrative linkage C) One-way linkage D) Two-way linkage E) Executive linkage

A

Which of the following statements is true of the administrative linkage level between the human resource management function and the strategic management function? A) In this level, the human resource management department is completely divorced from any component of the strategic management process. B) This level recognizes the importance of human resources in implementing the strategic plan. C) In this level, the human resource management designs systems and/or programs that implement the strategic plan. D) This level allows for consideration of human resource issues during the strategy formulation process. E) In this level, the human resource management functions are built right into the strategy formulation and implementation processes.

A

A common practice for companies in today's market is to look within at what is working and what is not. This is an example of a(n) A) job analysis. B) internal analysis. C) job characteristics model. D) competitor analysis. E) job modeling.

B

A(n) ________ is a story of how a firm will create value for customers and how it will do so profitably. A) design specification B) business model C) job characteristics model D) administrative linkage

B

Jam and Nuts is evaluating their resources so that they can compete with other companies. They have evaluated their plant, equipment, and geographic location. What other physical resource do they need to evaluate to complete this scan? A) Controlling system B) Technology C) Planning system D) Employee skill E) Experience of employees

B

Mission, goals, external analysis, internal analysis, and strategic choices are the five major components of the ________ process. A) recruitment B) strategy formulation C) orientation D) job designing E) job engagement

B

Saturn Inc. is a large manufacturer of footwear and accessories. It has always lagged behind its closest competitor, Hexagon Inc. It plans to overtake Hexagon by leveraging its strength in women's footwear and entering markets in the Midwest that it had traditionally ignored. Saturn Inc. is in the ________ phase. A) strategy implementation B) strategy formulation C) administrative linking D) selecting and training E) task designing

B

The ________ component of the strategic management process consists of structuring the organization, allocating resources, ensuring that the firm has skilled employees in place, and developing reward systems that align employee behavior with the organization's strategic goals. A) task designing B) strategy implementation C) administrative linking D) strategy formulation E) operational implementation

B

The ________ margin is calculated as the number of units sold times the contribution margin. A) holding cost B) gross C) profit D) fixed cost E) overhead rate

B

Which of the following is true of one-way linkage? A) In this level, the human resource management executive has no time or opportunity to take a strategic outlook toward human resource issues. B) It precludes the company from considering human resource issues while formulating the strategic plan. C) In this level, the human resource management functions are built right into the strategy formulation process. D) In this level, the human resource management function is involved in both strategy formulation and strategy implementation. E) It lets the human resource management executive give strategic planners information about the company's human resource capabilities.

B

An organization uses ________ to measure the quantity and quality of its resources. A) job modeling B) realistic job preview C) internal analysis D) value chain analysis E) job analysis

C

EastWest is a consulting firm that helps organizations examine their operating environments. Their scope of work would be considered a(n) A) job modeling. B) internal analysis. C) external analysis. D) value chain analysis. E) job analysis.

C

The strategic management decision-making process usually takes place at a firm's highest levels, with a firm's strategic planning group, which includes A) middle managers and directors. B) the chief executive officer and supervisors. C) the chief executive officer and the president. D) accountants and supervisors. E) the directors and labor union representatives.

C

To provide excellent customer service to those in the electrical industry through the use of high-tech solutions is an example of a A) work structure. B) goal. C) mission. D) code of conduct. E) vision.

C

Which of the following statements is true of the strategic implementation stage of the strategic management process? A) During this stage, an organization analyzes its strengths and weaknesses. B) This is the first stage of the strategic management process, which is sequential in nature. C) During this stage, an organization follows through on a strategy chosen in the strategy formulation stage. D) During this stage, an organization defines its mission and goals. E) This stage is independent of the formulation stage in the strategic management process.

C

________ is what is left after a firm pays its variable costs and fixed costs. A) Contribution margin B) Overhead cost C) Profit D) Variance E) Holding cost

C

External analysis and internal analysis combined constitute the A) value analysis. B) training analysis. C) development analysis. D) SWOT analysis. E) recruitment analysis.

D

Sandman, Inc. has completed its strategic business plan and informed HR of how many employees will now need to be hired or retrained. This is an example of A) integrative linkage. B) executive linkage. C) two-way linkage. D) one-way linkage. E) administrative linkage.

D

The one-way linkage level A) is the lowest level of integration. B) restricts companies from considering human resource issues while formulating a strategic plan. C) is multifaceted, based on continuing rather than sequential interaction. D) often leads to strategic plans that companies cannot successfully implement. E) segregates the human resource management department from other components of the strategic management process.

D

) In the two-way linkage level, A) the human resource management executive has no time or opportunity to take a strategic outlook toward human resource issues. B) the strategic planning function and the HRM function are independent of each other. C) the second step involves the strategic planning team informing the human resource management function of various strategies. D) the last step involves human resource management executives analyzing the human resource implications of the strategies suggested in the previous steps. E) the human resource issues are allowed for consideration during the strategy formulation process.

E

Ashock has been brought in as a consultant for a large organization. He is tasked with identifying the goals, policies, and action sequences the company should take to offset competitive challenges. Ashock will be implementing A) operational management. B) transactional management. C) management by objectives. D) process mapping. E) strategic management.

E