479 Chapter 4 Quiz
Lorsch found that executives in successful companies are emotionally committed to the firm's culture, but he concluded that culture can inhibit strategic management in the following way: A. Managers frequently miss the significance of changing external conditions because they are blinded by strongly held beliefs. B. When a particular culture has been effective in the past, the natural response is to stick with it in the future, even during times of major strategic change. C. Employees can get so attached to cultural products that they ignore strategies and tactics. D. A and B E. A, B, and C
D. A and B
Cultural products include which of the following dimensions? A. Values, beliefs, rites, and rituals B. Ceremonies, myths, stories, and legends C. Sagas, heroes, heroines, and symbols D. All of the above E. A and B above
D. All of the above
________________ is the process by which a person (1) determines whether to attempt a task, (2) works out the most effective way of reaching desired objectives, and (3) prepares to overcome unexpected difficulties with adequate resources. A. Organizing B. Planning C. Strategizing D. Leading E. Controlling
B. Planning
In an IFE Matrix, the weights of all factors included must sum to ___________. A. 2.0 B. 3.0 C. 1.0 D. 5.0 E. 4.0
C. 1.0
________________ is an analytical tool used to determine whether a firm's value chain analysis is competitive compared with those of rivals and thus conducive to winning in the marketplace. A. Perceptual mapping B. Breakeven analysis C. Benchmarking This is the correct answer.D. Competitive postering E. Competitive Profile Analysis
C. Benchmarking
In performing breakeven analysis, which of the following are considered variable costs? A. Advertising expenses B. Labor expenses C. Raw material expenses D. A and B E. B and C
E. B and C
In developing an IFE Matrix, when can both internal and external factors be included? A. Never B. For firms in some industries, such as utility companies C. Whenever a firm does not develop or have an EFE Matrix D. Anytime E. Sometimes
A. Never
By 2018, revenues from global data analytics software are expected to reach ________ billion, a ________ percent increase from 2012. Leading firms providing the software include IBM, SAP, Oracle, Microsoft, Qlik Technologies, Tibco Software, and Tableau Software. A. $21.7; 64 B. .217; .64 C. 217; 640 D. 50; 50 E. 2.17; 6.4
A. $21.7; 64
Which statement below is false? A. In an IFE Matrix, the number of factors has no effect on the range of total weighted scores because the weights always sum to 1.0. B. When a key internal factor is both a strength and a weakness, the factor may be included twice in the IFE Matrix, and a weight and rating assigned to each statement. C. The average IFE Matrix score is 2.0. D. Always sequence factors in an IFE Matrix from highest to lowest weight. E. All statements are true.
C. The average IFE Matrix score is 2.0.
Strengths that cannot be easily matched or imitated by competitors are called what? A. Synergies B. Valuable resources C. Distinctive advantages D. Distinctive competencies E. Competitive advantages
D. Distinctive competencies
Which statement(s) below is false? A. According to Porter, the business of a firm can best be described as a value chain, in which total revenues minus total costs of all activities undertaken to develop and market a product or service yields value. B. All firms in a given industry have a similar value chain, which includes activities such as obtaining raw materials, designing products, building manufacturing facilities, developing cooperative agreements, and providing customer service. C. Conducting a value chain analysis is supportive of the research-based view's examination of a firm's assets and capabilities as sources of distinctive competence. D. Firms should strive to understand their own value chain operations, not those of their competitors, suppliers, and distributors. E. A firm will be profitable so long as total revenues exceed the total costs incurred in creating and delivering the product or service.
D. Firms should strive to understand their own value chain operations, not those of their competitors, suppliers, and distributors.
In developing an IFE Matrix, what is an important guideline? A. Include at least 20 factors. B. Never assign a rating of more than 4.0 for a factor. C. Assign higher weights for factors that have higher ratings. D. Include factors that are both actionable and divisional to the extent possible. E. Never assign a weight of more than 1.0 for a factor.
D. Include factors that are both actionable and divisional to the extent possible.
According to James Van Horne, the functions of finance/accounting comprise three decisions. What are the three? A. The investment decision, the financing decision, and the treasury stock decision B. The liquidity decision, the financing decision, and the dividend decision C. The investment decision, the financing decision, and the leverage decision D. The investment decision, the financing decision, and the dividend decision E. The investment decision, the liquidity decision, and the dividend decision
D. The investment decision, the financing decision, and the dividend decision
Target recently joined Best Buy in offering to match online prices of rival retailers. Both companies are seeking to combat ________ by shoppers who check out products in their stores but buy them on rival's websites. A. price checking B. price hopping C. price comparing D. showrooming E. price shopping
D. showrooming
In an IFE Matrix, how much more important is a weight of .016 than a weight of .07? A. 12.9 percent B. 56 percent C. 90 percent D. 5.6 percent E. 129 percent
E. 129 percent
Empirical indicators, characteristics of resources that enable a firm to implement strategies, include the following: A. Rare and hard to imitate B. Scarce and unique C. Global and liquid D. Not easily substitutable E. A and D
E. A and D
Which of the following statements is false? A. The resource-based view approach to competitive advantage contends that internal resources are more important for a firm than external factors in achieving and sustaining competitive advantage. B. In contrast to the Industrial Organization (I/O) theory presented in the previous chapter, proponents of the RBV view/theory contend that organizational performance is primarily determined by internal resources. C. Resource-based view theory asserts that resources are actually what helps a firm exploit opportunities and neutralize threats. As indicated in the Academic Research Capsule 4-1, RBV theory may be helpful in identifying diversification targets. D. Empirical research by Neffke reveals that it is the nature of a firm's human capital, more than any other variable in the firm's value chain, that impacts that firm's choice of diversification targets. Specifically, firms select acquisition targets that offer opportunities to leverage existing human resources. E. A through D are true statements.
E. A through D are true statements.
The management function of staffing, or human resource (HR) management, includes activities such as the following: A. Recruiting, interviewing, testing, selecting, and orienting B. Disciplining, promoting, transferring, and demoting C. Dismissing employees and managing union relations D. Training, developing, caring for, evaluating, and rewarding E. All of the above
E. All of the above
A limitation of financial ratio analysis includes the following statement: A. Financial ratios are not very "actionable" in terms of revealing potential strategies needed (because they generally are based on performance of the overall firm). B. Seasonal factors can influence comparative financial ratios. C. Departures from industry average financial ratios do not always indicate that a firm is doing especially well or badly. D. Financial ratios are based on accounting data, and firms differ in their treatment of such items as depreciation, inventory valuation, R&D expenditures, pension plan costs, mergers, and taxes. E. All the statements are limitations.
E. All the statements are limitations.
Which statement below is false? A. The benefits of paying dividends to investors must be balanced against the benefits of internally retaining funds, and there is no set formula on how to balance this trade-off. B. Dividends are sometimes paid out even when the firm has incurred a negative annual net income. C. In 2014dash-2016, companies are aggressively boosting their dividends paid to shareholders. D. Dividends are sometimes paid out even if the funds could be better reinvested in the business, and/or even if the firm has to obtain outside sources of capital to pay for the dividends. E. All the statements are true.
E. All the statements are true.
In developing an IFE Matrix, do not allow more than 30 percent of the key factors to be financial ratios. Why? A. Because financial ratios can vary from industry to industry B. Because financial ratios can be misleading C. Because financial ratios have limitations such as firms using different accounting methods D. Because finance is only one part of an organization's business operations E. Since financial ratios are generally the result of many factors, it is difficult to know what particular strategies should be considered based on financial ratios.
E. Since financial ratios are generally the result of many factors, it is difficult to know what particular strategies should be considered based on financial ratios.
The extent to which a manufacturing plant's output reaches its potential output is called ________________, a key strategic variable. A. capacity maximum B. maximum capacity C. maximum utilization D. min-to-max capacity E. capacity utilization
E. capacity utilization
Spending on online advertisements globally is increasing about _____ percent annually, according to edMarketer, and represents about _____ percent of total advertising spending in the United States. A. 40; 25 B. 25; 40 C. 39; 25 D. 50; 50 E. 25; 39
E. 25; 39
The basic functions of marketing include the following: A. Customer analysis, selling products and services, and product and service planning B. Pricing, distribution, and marketing research C. Cost/benefit analysis D. A and B E. A, B, and C
E. A, B, and C
What are the five basic functions of management? A. Planning, organizing, leading, motivating, and controlling B. Planning, organizing, motivating, strategizing, and controlling C. Planning, organizing, motivating, staffing, and leading D. Planning, organizing, motivating, strategizing, and leading E. Planning, organizing, motivating, staffing, and controlling
E. Planning, organizing, motivating, staffing, and controlling