Strategic Management Midterm

Both the Internal-External (IE) and Boston Consulting Group (BCG) Matrices are called ________ matrices.

portfolio

The Boston Consulting Group (BCG) Matrix is designed specifically to enhance which type of firm's efforts to formulate strategies?

Companies with more than one division

The top row of a Quantitative Strategic Planning Matrix (QSPM) consists of alternative strategies derived from all of the following EXCEPT

Competitive Profile Matrix (CPM).

________ includes the set of shared values, beliefs, attitudes, customs, norms, rites, rituals, personalities, heroes, and heroines that describe a firm.

Culture

Which of the following is NOT a published source of external strategic information?

Customer surveys

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

Strategists

________ exemplifies the complexity of relationships among the functional areas of business.

financial ratio analysis

What category of ratios measures how effectively a firm can maintain its economic position in the growth of the economy and industry?

growth

What is the range for a firm's total weighted score in a Competitive Profile Matrix (CPM)?

1 to 4

Which question is NOT answered in an effective mission statement?

Are the firm's profits adequate?

What is NOT one of Michael Porter's five competitive forces?

Bargaining power of unions

________ is the unique way an organization does business.

Culture

Who is referred to as "the father of modern management?"

Drucker

Which of these is a limitation of QSPM?

It requires intuitive informed judgments.

Which best expresses former Colgate CEO Reuben Mark's thoughts on vision?

Pushing one vision globally is essential.

What are the two external dimensions of the SPACE Matrix?

Stability position and industry position

Which stage of the strategy-formulation framework involves the Quantitative Strategic Planning Matrix?

Stage 3

What term is defined as the product of multiplying the weights by the Attractiveness Scores in each row of the QSPM?

Total Attractiveness Scores

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

WO

What question is asked in conjunction with the philosophy component of a mission statement?

What are the basic beliefs, values, aspirations, and ethical priorities of the firm?

The potential for creative growth in an organization can be limited by

a mission statement that is too specific.

Unpublished sources of external strategic information include all of the following EXCEPT

abstracts

A(n) ________ ideally supports the collective commitment of an organization's people to a common purpose.

culture

A mission statement should motivate stakeholders to action, as well as be ________-oriented, informative, inspiring, and enduring.

customer

Business analytics is sometimes also called

data mining

Without assumptions, planning would be

impossible

External audit is sometimes called

industry analysis

Competition in virtually all industries is

intense

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

planning

The general public is especially interested in ________, whereas stockholders are more interested in ________.

social responsibility; profitability

Sometimes ________ is used to refer to strategic formulation, implementation and evaluation, with ________ referring only to strategic formulation.

strategic management; strategic planning

Internal politics affect the choice of ________ in all organizations.

strategies

Distribution includes

warehousing

More than ________ businesses in the United States fail annually.

100,000

Individuals age 65 and older in the United States as a percentage of the population will rise to ________ percent by 2030.

19

A total weighted score of ________ in an External Factor Evaluation (EFE) Matrix indicates that an organization is responding in an outstanding way to existing opportunities and threats in its industry.

4.0

In the first six months of 2017, the United States had ________ data breaches.

791

Which of these examples of a mission statement focus area does NOT identify the utility of the firm's products to its customers?

ExxonMobil focuses on oil and gas rather than energy.

The two positive-rated dimensions on the SPACE Matrix are

FP and IP

In which phase of strategic management are annual objectives especially important?

Implementation

Which of these is NOT a SPACE Matrix quadrant?

Offensive

________ forces are shaping the way people live, work, produce, and consume.

SCDE

To gain ________ firms need to provide unique products and services.

a sustainable competitive advantage

What category of ratios measures a firm's ability to meet its short-term obligations?

liquidity

The question, "geographically, where does the firm compete?" is part of the ________ component of the mission statement.

markets

When an effective process is followed, developing a ________ statement can create an "emotional bond" among employees and customers.

mission

The ideal length of a vision statement is

one sentence

What category of ratios includes return on total assets and return on stockholders' equity?

profitability

In performing strategic planning and case analysis, relevant SCDE factors for a particular firm must be ________ and actionable to be useful.

quantified

After a draft mission statement has been developed, it is important to

request modifications, additions, and deletions.

An important activity in ________ is taking corrective action.

strategy evaluation

Collecting and evaluating information on competitors is essential for successful

strategy formulation.

Land is an example of a(n) ________ resource.

tangible

The process of developing a vision and mission statement often includes which of these as the first activity?

Asking managers to read selected articles about vision and mission statements

Which ratio would be considered an activity ratio?

Average collection period

In 2012, ________ passed the world's first legislation that would treat marijuana like alcohol, taxing and regulating its sales.

Colorado

The weights and total weighted scores in a Competitive Profile Matrix (CPM) have the same meaning as the weights and total weighted scores in a(n)

External Factor Evaluation (EFE).

Annually, ________ businesses in the United States fail.

More than 100,000

Which of the following is the last step in developing an IFE Matrix?

Obtain total weighted score

In the Boston Consulting Group (BCG) Matrix, how would a division with a low relative market share position in a high growth industry be described?

Question mark

In the Boston Consulting Group (BCG) Matrix, which strategy would be most appropriate for a division classified as a Dog?

Retrenchment

What step in the strategic management process involves mobilizing employees and managers to put strategies into action?

Strategy implementation

Which statement is TRUE?

The vision statement should be established before the mission statement.

What is the highest number of strategies that can be examined at one time with the QSPM?

There is no limit

A strong dollar enables ________ firms to purchase raw materials more cheaply from other countries.

United States

Both business and military organizations must ________ and ________ to be successful.

adapt to change; constantly improve

Strategic management enables an organization to ________, instead of just responding to threats in its business environment.

be proactive

Which of the following is similar to the actuarial methods used by insurance companies to rate customers by the chance of positive or negative outcomes?

business analytics

________ is a business technique that involves using software to mine huge volumes of data to help executives make decisions.

business analytics

Superior strategy formulation and implementation ________ an opponent's superiority in numbers and resources.

can overcome

All stakeholders' claims on an organization ________ pursued with equal emphasis.

cannot be

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

conflict; competition

In the U.S. food industry, demand for processed packaged foods is ________.

declining

The initial step in developing an IFE Matrix is

developing a full and narrow list of key internal factors.

Successful strategists lead strategy, but do not ________ it.

dictate

Which component of a mission statement addresses the firm's major competitive advantage?

distinctive competence

An overly general mission statement that ________ could be dysfunctional.

does not exclude any strategy alternatives

The acronym SCDE stands for social, cultural, demographic, and ________ forces.

environment

An organization's present strategies, objectives, vision, and mission, coupled with the external and internal audit information, provide a basis for

generating and evaluating feasible alternative strategies.

The fact that Apple has no manufacturing facilities of its own

has enabled it to remain financially lean.

________ ties all business functions together and provides the basis for all managerial decisions.

information

Strategy evaluation is necessary because

internal and external factors are constantly changing.

An effective mission statement does all of the following EXCEPT

it is static in orientation.

As indicated in the strategic-management model, a clear ________ is needed before alternative strategies can be formulated and implemented.

mission statement

Specific results an organization seeks to achieve in pursuing its basic mission are

objectives

Which of the following is NOT an external force that must be examined in formulating strategies?

organizational

Strategic management focuses on integrating functional areas to achieve organizational success. Which of the following is NOT one of the functional areas that is the focus of strategic management?

organizational behavior

The management function that is most important for strategy implementation is

organizing

An ________ with expertise in developing vision and mission statements and with unbiased views, can at times manage the process more effectively than an internal group or committee of managers.outside facilitator

outside facilitator

Which of the following does the text call an up-front investment in success?

planning

All of the following are political, governmental, and legal variables that can represent key opportunities or threats to organizations EXCEPT

population changes by race, age, sex, and level of affluence.

According to Webster's New World Dictionary, ________ is "the science of planning and directing large-scale military operations, of maneuvering forces into the most advantageous position prior to actual engagement with the enemy."

strategy

Since ________ resources can more easily be bought and sold, ________ resources are often more important for gaining and sustaining competitive advantages.

tangible; intangible

Business or military success is

the product of both attention to changing external and internal conditions and the insightful adaptations to those conditions.

Forward integration would be an appropriate strategy for which of the following types of divisions in the Boston Consulting Group (BCG) Matrix?

Star

Which statement best describes intuition?

It should be coupled with analysis in decision making.

External audits attempt to identify key variables that offer ________ responses.

actionable

The Robinson-Patman Act affects a company's

pricing

An organization should take a(n) ________ approach in its industry.

proactive rather than a reactive

A major responsibility of ________ is to guide the development of coalitions, to nurture an overall team concept, and to gain the support of key individuals and groups of individuals.

strategists