EXAM THREE MGMT 470

Communication between domestic headquarters and overseas operations is often made difficult by

A) geographic distance.B) cultural differences.C) variations in business practices.D) national differences.E) all of the aboveAnswer: E

The ________ competitive opportunities and threats that face a multinational corporation are almost limitless.

A) socialB) culturalC) environmentalD) politicalE) all of the above AL OF THE ABOVE

What is the cornerstone of effective strategy evaluation?

Adequate and timely feedback

Which of these is a basic activity of strategy evaluation?

All of the above Measuring organizational performance Taking corrective actions Examining the underlying bases of current strategies Choices B and C only ALL OF THE ABOVE

Corrective action should do all of the following EXCEPT

Avoid external opportunities

Which of the following is a potential advantage of conducting international operations?

Competitors in foreign markets may not exist, or competition may be less intense than in domestic markets.

________ plans can be defined as alternative plans that can be put into effect if certain key events do not occur as expected.

Contingency

Which of the following is NOT a way that companies can help create an ethical culture in their organization?

Discouraging whistle-blowing

A well written code of ethics ensures ethical business behavior.

FALSE

Good ethics is not a prerequisite for good strategic management.

FALSE

It is an exaggeration to say that in an industry that is global, the riskiest possible posture is to remain a domestic competitor.

FALSE

Keeping informed about the number and the nature of competitors is easier when doing business internationally.

FALSE

n order to be considered bribery, the gift offered must be either money or a physical item.

FALSE

________ are quantitative criteria commonly used to evaluate strategies.

FINANCIAL RATIOS

________ is a process of doing business worldwide, so strategic decisions are made based on global profitability of the firm rather than just domestic considerations.

Globalization

revised ________ should focus on changes in the organization's management, marketing, finance and accounting, production and operations, research and development (R&D), and management information systems (MIS) strengths and weaknesses.

IFE Matrix

Which of the following is true regarding the design of a firm's strategy-evaluation system?

It should be determined based on the unique aspects of a company.

Which of the following business actions is considered to be unethical?

Misleading labeling

Which of the following statements about contingency plans is NOT true?

Strategists should plan for all possible contingencies.

In today's global climate, many companies may find it difficult to survive by relying solely on domestic markets.

TRUE

________ refers to refers to employees reporting any unethical violations they discover or see in the firm.

WHISTLE BLOWING

Most quantitative criteria are geared to ________ objectives rather than to ________ objectives.

annual; long-term

Bribery involves

bestowing a gift to influence the recipient's conduct.

Commercial and industrial development in the western part of which country has turned interior cities into production centers that compete for labor with coastal factories?

china

The strategic-management process for multinational firms is ________ for purely domestic firms, but the process is ________ for the purely domestic firms.

conceptually the same as; more simple

Mass communication and high technology have ________ in diverse cultures worldwide.

created similar patterns of consumption

Bad ethics can ________ strategic plans.

derail even the best

All of these are Richard Rumelt's criteria to evaluate a strategy EXCEPT

distinctiveness

What challenge facing all organizations requires managers to formulate strategies that preserve and conserve natural resources and control pollution?

ecological

Joint ventures and partnerships between domestic and foreign firms are

extremely commonplace.

Multinational corporations face unique and diverse risks, which include all of the following EXCEPT

favorable foreign court interpretations of contracts and agreements.

The strategy-evaluation process should

foster mutual understanding and trust.

It is ________ for a business to provide a sustainability report annually to the public.

good business

Most economists argue that protectionism ________ the world economy because it ________ trade among countries.

harms; inhibits

Most strategy literature advocates that strategic management is

more of a science than an art.

Organizations that conduct business operations across national borders are called

multinational corporations.

In an industry that is, or is rapidly becoming global, the riskiest possible posture is to

remain a domestic competitor.

With regard to the visible or hidden issue, most executives agree that

some strategic information should remain confidential to top managers.

Mintzberg's notion of "crafting" strategies

suggests that strategic decision making be based primarily on holistic thinking, intuition, creativity, and imagination.

Financial ratios are used to compare a firm's performance over different time periods, to compare the firm's performance to industry averages, and to compare a firm's performance with

the performance of competitors.

Evaluating strategies on a continuous rather than on a periodic basis allows benchmarks of progress to be established and more effectively monitored.

true

A firm's power and prestige in domestic markets may be significantly enhanced if it competes globally

which can translate into improved negotiating power among important groups.

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.

NEEDED

All of the following are potential disadvantages to initiating, continuing, or expanding business across national borders EXCEPT

foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets.

Most economists argue that protectionism ________ the world economy becauseit ________ trade among countries.

harms; inhibits

What aims to balance long-term with short-term concerns, financial with nonfinancial concerns, and internal with external concerns?

he Balanced Scorecard approach

Social policy can best be defined as

he responsibilities a firm has to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups.

If a firm has a bad sustainability record this will

increase investor scrutiny of the firm.

Modern organizational realities demand that employees demonstrate greater

initiative. innovation. flexibility. all of the above creativity. ALL OF THE ABOVE

U.S. managers in Japan have to be careful about ________, whereby Japanese workers expect supervisors to alert them privately of changes rather than informing them in a meeting.

nemaswashio

Strategy-evaluation activities should ideally be performed

on a continuous basis.