BUS 450 chapters 7 - 11

Which of these is NOT a rule of thumb when using product positioning as a strategy-implementation tool? A) "The best opportunity might be an unserved segment." B) "Look for the hole or vacant niche." C) "Try to serve more than one segment with the same strategy." D) "Don't position yourself in the middle of the map." E) All of these are valid rules of thumb.

C) "Try to serve more than one segment with the same strategy."

Which word or phrase would most be best to use in written objective statements? A) Maximize B) Minimize C) 10% increase D) Adequate E) As soon as possible

C) 10% increase

In 2012, ________ African countries held democratic elections. A) 3 B) 13 C) 23 D) 31 E) 43

C) 23

The average level of union membership across the whole of the European Union, weighted by the numbers employed in the different member states, is ________ percent compared to about ________ percent in the USA. A) 11; 23 B) 15; 44 C) 23; 11 D) 51; 26 E) 70; 30

C) 23; 11

Which of these is the most common type of budgeting time frame? A) Daily B) Quarterly C) Annual D) Every decade E) Monthly

C) Annual

Which statement is NOT true? A) Having an effective management information system may be the most important factor in differentiating successful from unsuccessful firms. B) Like inventory and human resources, information is now recognized as a valuable organizational asset that can be controlled and managed. C) Computer vulnerability has been eradicated by recent innovations, and it is now possible to secure and safeguard all corporate communications, files, and business conducted over the Internet. D) In many firms, information technology is doing away with the workplace and allowing employees to work at home or anywhere, anytime. E) Improved quality and service often result from an improved management information system.

C) Computer vulnerability has been eradicated by recent innovations, and it is now possible to secure and safeguard all corporate communications, files, and business conducted over the Internet.

What has been shown to permit quick response to change, prevent panic in crisis situations, and make managers more adaptable? A) Auditing B) Implementing a Balanced Scorecard C) Contingency planning D) Taking corrective actions E) Measuring performance

C) Contingency planning

Which of the following is NOT an accepted approach for determining a business' worth? A) Determining what the firm owns B) Determining what the firm earns C) Determining what the firm's return on investment has been D) Determining what the firm will bring in the market E) All of the above are accepted approaches.

C) Determining what the firm's return on investment has been

A revised ________ should indicate how effective a firm's strategies have been in response to key opportunities and threats. A) IFE matrix B) mission C) EFE matrix D) vision E) CPM matrix

C) EFE matrix

What change strategy involves giving orders and enforcing those orders? A) Self-interest B) Educative C) Force D) Rational E) Defusion

C) Force

Which organizational structure is the most widely used? A) Departmental B) Strategic business unit C) Functional D) Decentralized E) Matrix

C) Functional

According to author Alvin Toffler, what occurs when the nature, types, and speed of changes overpower an individual's or organization's ability and capacity to adapt? A) Corporate insecurity B) Corrective actions C) Future shock D) Corporate agility E) Projected performance

C) Future shock

________ is a process of doing business worldwide, so strategic decisions are made based on global profitability of the firm rather than just domestic considerations. A) Multinational corporation B) Protectionism C) Globalization D) Assimilation E) World recession

C) Globalization

All of the following statements are true EXCEPT A) ISO is the world's largest developer of sustainability standards. B) ISO standards are widely accepted all over the world. C) ISO has legal authority to enforce its regulations' implementation. D) ISO standards are voluntary. E) ISO itself does not regulate or legislate.

C) ISO has legal authority to enforce its regulations' implementation.

If a firm incurs a loss during a particular year, or if the firm had positive net income but paid out dividends more than the net income, what happens to the RE amount? A) It increases. B) It is unchanged. C) It decreases. D) It doubles. E) It cannot be determined from the information given.

C) It decreases.

Why is market segmentation an important variable in the strategy-implementation process? A) Company strategies do not require increased sales through new markets and products. B) It allows a firm to operate with no resources. C) It directly affects marketing mix variables. D) It allows a firm to minimize per-unit profits and per-segment sales. E) All of the above

C) It directly affects marketing mix variables.

If an initial stock issuance is $800,000, what would be the expected cost paid to lawyers, accountants, and underwriters, based on the average for IPOs in this range? A) $20,000 B) $40,000 C) $80,000 D) $200,000 E) $400,000

D) $200,000

The world population that lives outside of the USA is growing ________ the U.S. population. A) 30 percent slower than B) 70 percent slower than C) 30 percent faster than D) 70 percent faster than E) at the same rate as

D) 70 percent faster than

Which term is best defined as a central management activity that allows for strategy execution? A) Avoidance B) Furlough C) Competition D) Resource allocation E) Conflict

D) Resource allocation

In which of the following industries is the USA NOT yet greatly challenged by foreign competitors? A) Auto industry B) Electronics C) Manufacturing D) Retailing E) None of the above

D) Retailing

Which variable would be considered part of the "place" element of the marketing mix? A) Product line B) Service level C) Personal selling D) Sales territory E) Discounts and allowances

D) Sales territory

Which of the following statements about contingency plans is NOT true? A) Contingency plans should be as simple as possible. B) Only high-priority areas require the insurance of contingency plans. C) Contingency plans should be developed for favorable and unfavorable events. D) Strategists should plan for all possible contingencies. E) Contingency plans minimize the impact of potential threats.

D) Strategists should plan for all possible contingencies.

International financial reporting standards (IFRS) comprise approximately ________ pages. A) 1,000 B) 5,000 C) 10,000 D) 25,000 E) 100,000

B) 5,000

How should financial budgets be thought of? A) As a tool for limiting expenditures B) As a method for obtaining the most productive and profitable use of an organization's resources C) As a method for rationing the profits from the past year D) As a method for determining who should receive the largest pay raise E) As a tool for forecasting future profits

B) As a method for obtaining the most productive and profitable use of an organization's resources

A change strategy that attempts to convince people that the change is to their personal advantage is A) defusion. B) force. C) educative. D) rational. E) compromise.

D) rational.

According to a recent Wall Street Journal article, ________ percent of all firms sampled had no restrictions on boss-subordinate love affairs at work. A) 5 B) 13 C) 24 D) 39 E) 80

A) 5

What percent of the world's population lives in the United States? A) 5 B) 10 C) 15 D) 85 E) 95

A) 5

What percent of the world's population lives outside the United States? A) 55 B) 65 C) 75 D) 85 E) 95

A) 55

Which of the following companies ranks among those against whom some of the largest payouts for class-action legal fraud suits ever were judged? A) AOL Time Warner B) Walt Disney C) Starbucks D) Herman Miller E) Edison

A) AOL Time Warner

What is the cornerstone of effective strategy evaluation? A) Adequate and timely feedback B) Quality and quantity of managers C) Smaller ratio of top- to lower-level management D) Evaluation preceding implementation stage E) Punitive corrective actions

A) Adequate and timely feedback

Which group generally softens up executives with praise before they criticize? A) Americans B) Italians C) Germans D) French E) All of the above

A) Americans

What term is defined as "a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between these assertions and established criteria, and communicating the results to interested users"? A) Auditing B) Innovation C) R&D D) Strategic Management E) Financial ratios

A) Auditing

Which approach for managing and resolving conflict involves ignoring the problem in hopes that the conflict will resolve itself? A) Avoidance B) Resistance C) Compliance D) Defusion E) Confrontation

A) Avoidance

What are the three categories of approaches for managing and resolving conflict? A) Avoidance, defusion, and confrontation B) Avoidance, apathy, and defusion C) Ignorance, indifference, and apathy D) Defusion, apathy, and avoidance E) Indifference, avoidance, and role-playing

A) Avoidance, defusion, and confrontation

How would Hershey's current divisional structure most likely be classified? A) By geographic area B) By product C) By service D) By customer E) By process

A) By geographic area

What is the most common type of financial budget? A) Cash B) Sales C) Profits D) Factory E) Flexible

A) Cash

Which of the following is NOT included in measuring organizational performance? A) Comparing results to competitors' expectations B) Examining progress being made toward meeting stated objectives C) Investigating deviations from plans D) Evaluating individual performance E) Comparing expected results to actual results

A) Comparing results to competitors' expectations

Which of the following is a potential advantage of conducting international operations? A) Competitors in foreign markets may not exist, or competition may be less intense than in domestic markets. B) Dealing with two or more monetary systems can complicate international business operations. C) Differing language, culture, and value systems can make communication difficult. D) Gaining an understanding of regional organizations is difficult but is often required in doing business internationally. E) All of the above

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

After completing an EPS/EBIT analysis, what conclusions would you make if the debt line is above the stock line throughout the range of EBIT on the graph? A) Debt appears to be the best financing alternative. B) Stock would be the best financing alternative. C) A combination of debt and stock is probably the best financial alternative. D) Dividends must be considered before conclusions can be made. E) The company should be privately owned.

A) Debt appears to be the best financing alternative.

Medium-sized firms tend to use which type of structure? A) Divisional B) Matrix C) SBU D) Functional E) Centralized

A) Divisional

________ countries are market leaders in labor-intensive industries and ________ offers abundant natural resources and rapidly developing markets. A) East Asian; Brazil B) South American; Germany C) East Asian; Germany D) South American; Brazil E) European; Japan

A) East Asian; Brazil

Which of the following was among the most admired companies for social responsibility in 2012 according to Fortune magazine? A) GDF Suez B) China Railway Group C) China Railway Construction D) China State Construction Engineering E) Kirin Holdings

A) GDF Suez

The percentage of persons age 65 or older exceeds 20 percent in Japan, Italy, and A) Germany. B) the USA. C) France. D) China. E) All of the above

A) Germany.

The ________ is a network of the national standards institutes of 147 countries, one member per country. A) ISO B) EMS C) UN D) EPA E) IMF

A) ISO

________ is a set of standards in fields such as environmental auditing, performance evaluation, and labeling, that is adopted by thousands of firms worldwide to certify to their constituencies that they are conducting business in an environmentally friendly manner. A) ISO 14001 B) EMS 14000 C) UN 5000 D) SEC 100 E) A sustainability report

A) ISO 14001

What percent of strategies formulated are successfully implemented? A) Less than 10 percent B) About 30 percent C) Between 40 and 60 percent D) Approximately 66 percent E) More than 80 percent

A) Less than 10 percent

Research suggests that which of the following is one of the best ways to overcome individuals' resistance to change in strategy evaluation? A) Participation B) Command-and-control C) Laissez-faire system D) Rational argument E) Emotional reactions

A) Participation

What entails developing schematic representations that reflect how your products or services compare to competitors' on dimensions most important to success in the industry? A) Perceptual mapping B) Market segmentation C) Market penetration D) Unrelated diversification E) Capital budgeting

A) Perceptual mapping

Which of the following is NOT a reason for the increasing difficulty of evaluating strategies? A) Product life cycles are longer. B) Domestic and world economies are less stable. C) Product development cycles are shorter. D) Technological advancement is more rapid. E) Change is occurring more frequently.

A) Product life cycles are longer.

Which of the following is NOT one of the four perspectives from which the Balanced Scorecard allows firms to evaluate strategies? A) Social responsibility B) Financial performance C) Customer knowledge D) Internal business processes E) Learning and growth

A) Social responsibility

What becomes a more attractive financing technique when cost of capital is high? A) Stock issuance B) Debt C) Cost cutting D) Borrowing E) Staying privately owned

A) Stock issuance

Which state generates the greatest number of megawatts of wind power? A) Texas B) Iowa C) California D) Minnesota E) New Jersey

A) Texas

The attitude of U.S. firms toward research and development is best described by which of the following? A) The veil of secrecy is being lifted, resulting in more collaboration. B) Firms are more cutthroat than ever and less cooperative with each other. C) Firms are less interested in working with universities. D) Firms are feeling less competitive pressure. E) Firms are less involved with research consortia than ever.

A) The veil of secrecy is being lifted, resulting in more collaboration.

Which of the following is NOT true regarding stock issuances? A) They are always better than debt for raising capital. B) Their effect on stock price is a concern. C) They can require a company to share future earnings with all new shareholders. D) Dilution of ownership is a special concern. E) All of the above statements are true.

A) They are always better than debt for raising capital.

________ is NOT a major factor that commonly prohibits effective resource allocation. A) Underprotection of resources B) Organizational politics C) Having vague strategy targets D) A reluctance to take risks E) A lack of sufficient knowledge

A) Underprotection of resources

________ refers to policies that require employees to report any unethical violations they discover or see in the firm. A) Whistle-blowing B) Bribery C) Adultery D) Sustainability E) Stewardship

A) Whistle-blowing

In the context of a balance sheet, goodwill represents A) a premium paid over the book value of an acquisition. B) the value attached to a firm's reputation. C) the excess of assets over liabilities. D) the value associated with benefits from environmental programs. E) the excess of current assets over liabilities.

A) a premium paid over the book value of an acquisition.

Controls need to be ________ rather than ________. A) action-oriented; information-oriented B) cultural; political C) qualitative; quantitative D) measurable; timely E) universal; diverse

A) action-oriented; information-oriented

Retained earnings is obtained by subtracting A) any dividends to be paid for that year from net income. B) net income from EBIT. C) taxes from EBIT. D) interest expense from EBIT. E) EBIT from CGS.

A) any dividends to be paid for that year from net income.

Marketing managers in Japan see making a sale ________ the selling process. A) as the beginning of B) as the end of C) as the midpoint of D) as unrelated to E) None of the above

A) as the beginning of

Bribery involves A) bestowing a gift to influence the recipient's conduct. B) requiring employees to report any unethical violations they discover or see in the firm. C) prohibiting love affairs between bosses and their subordinates. D) encouraging firms to play a role in curing society of its ills. E) forcing companies to take responsibility for the impact their actions have on society.

A) bestowing a gift to influence the recipient's conduct.

Mass communication and high technology have ________ in diverse cultures worldwide. A) created similar patterns of consumption B) resulted in highly individualized patterns of consumption C) rendered patterns of consumption identical D) had little to no effect on patterns of consumption E) ignored patterns of consumption

A) created similar patterns of consumption

In low-earning periods, too much ________ in the capital structure of an organization can endanger stockholders' return and jeopardize company survival. A) debt B) liquidity C) equity D) cash E) tax liability

A) debt

The various opportunities and threats that face multinational corporations are almost limitless, and the number and complexity of these factors ________ the number of products and the number of geographic areas served. A) decrease dramatically with B) drastically increase with C) drop slightly with D) are constant despite E) are unaffected by

A) decrease dramatically with

Walmart encourages its employees to adopt "Personal Sustainability Projects" like weight-loss or smoking-cessation support groups, illustrating that A) employee wellness can be a part of sustainability. B) employee health issues have no business in the workplace. C) firms should crack down on employees' personal interests infringing upon business hours. D) the Global Reporting Initiative requires this of all U.S. companies. E) a company's interest in its employees should be restricted solely to their work duties.

A) employee wellness can be a part of sustainability.

Multinational corporations face unique and diverse risks, which include all of the following EXCEPT A) favorable foreign court interpretations of contracts and agreements. B) currency losses through exchange rate fluctuations. C) social/political disturbances. D) import/export restrictions. E) tariffs.

A) favorable foreign court interpretations of contracts and agreements.

It is ________ for a business to provide a sustainability report annually to the public. A) good business B) irresponsible C) a decreasing trend D) unethical E) poor planning

A) good business

Desire for ________ is a part of the social fabric in worker-manager relations in Mexico. A) harmony B) friction C) conflict D) independence E) punctuality

A) harmony

Firms should strive to engage in social activities that A) have economic benefits. B) have no economic benefits. C) are detrimental to economic growth. D) drain financial resources. E) garner goodwill only, not profits.

A) have economic benefits.

Unethical activities that plague online commerce include all of the following EXCEPT A) inappropriate gifts. B) spreading viruses. C) identity theft. D) Internet fraud. E) hacking into company computers.

A) inappropriate gifts.

With the passage of time strategy evaluation is becoming A) increasingly difficult. B) much simpler. C) very convenient. D) an unnecessary activity. E) less important.

A) increasingly difficult.

Changing a strategy to fit an existing culture A) is usually less effective than changing a firm's culture to fit a new strategy. B) is usually more effective than changing a firm's culture to fit a new strategy. C) is just as effective as changing a firm's culture to fit a new strategy. D) is always the best option. E) none of the above

A) is usually less effective than changing a firm's culture to fit a new strategy.

According to the text, the first social responsibility of any business is to A) make enough profit to cover the costs of the future, because if this is not achieved then no other social responsibility can be met. B) avoid laying off employees so as to protect the employees' livelihood, even if that decision may force the firm to liquidate. C) engage in social activities that have no economic benefits, to avoid the appearance of a public relations gimmick. D) offer courses and training in environmental management. E) None of the above

A) make enough profit to cover the costs of the future, because if this is not achieved then no other social responsibility can be met.

Too much emphasis on evaluating strategies A) may be expensive and counterproductive. B) is not possible - the more emphasis the better. C) is good for morale, as employees like being closely evaluated. D) is always advised if the firm can afford it. E) is worse than too little or no evaluation.

A) may be expensive and counterproductive.

It has become ________, since uniform standards defining environmentally responsible company actions are rapidly being incorporated into our legal landscape. A) more and more difficult for firms to make "green" claims when their actions are not substantive or even true B) increasingly easy for firms to get away with placing "green" terminology on their products without any oversight C) customary for firms to use terms like "organic," "green," or "earth-friendly" when their products don't warrant it D) more common for consumers to be cynical about corporate environmental claims E) impossible for firms to omit "green" terminology from their labels

A) more and more difficult for firms to make "green" claims when their actions are not substantive or even true

Most strategy literature advocates that strategic management is A) more of a science than an art. B) more of an art than a science. C) based on analysis rather than research. D) based on intuition rather than analysis. E) based on creativity rather than intuition.

A) more of a science than an art.

In an effort to manage ecological challenges, many companies are A) moving environmental affairs from the staff side of the organization to the line side. B) moving environmental affairs from the line side of the organization to the staff side. C) making the chief operating officer report directly to the corporate environmental group. D) omitting an environmental representative from their board of directors. E) purging environmental values from their mission statements.

A) moving environmental affairs from the staff side of the organization to the line side.

The strategy-evaluation process should foster A) mutual understanding. B) doubt. C) corporate culture. D) complexity. E) division.

A) mutual understanding.

The U.S. government's OPIC A) offers insurance to offset some risks of doing business internationally. B) provides insurance to eliminate all of the risks of doing business internationally. C) gives informational seminars about the risks associated with doing business internationally. D) requires that paperwork be filed by U.S. companies desiring to do business internationally. E) discourages foreign companies from doing business in the United States.

A) offers insurance to offset some risks of doing business internationally.

A divisional structure by geographic area is most appropriate when A) organizations have similar branch facilities located in widely dispersed areas. B) an organization offers only a limited number of products or services. C) consumption patterns for its products and/or services are the same worldwide. D) the company's customers in different geographic locations have similar needs and characteristics. E) the firm serves one geographic area.

A) organizations have similar branch facilities located in widely dispersed areas.

In general, U.S. managers feel the day has been productive if it is spent A) rushing to meetings and conferences. B) resting. C) listening. D) meditating. E) thinking.

A) rushing to meetings and conferences.

Business ethics, ________, and sustainability issues are interrelated and impact all areas of the comprehensive strategic-management model. A) social responsibility B) social networking C) fiscal irresponsibility D) cultural indifference E) None of the above

A) social responsibility

A code of business ethics is A) sorely needed in light of a new wave of ethical issues including product safety, employee health, and sexual harassment. B) concerned with what responsibilities the firm has to employees, consumers, environmentalists, minorities, communities, and other groups. C) a report that reveals how the firm's operations impact the natural environment. D) a set of strict regulations requiring firms to conserve energy. E) a series of voluntary standards in the environmental field.

A) sorely needed in light of a new wave of ethical issues including product safety, employee health, and sexual harassment.

A concern in matching managers with strategy is that jobs have relatively ________ responsibilities, while people are ________ in their personal development. A) static; dynamic B) dynamic; static C) quick; slow D) exciting; dull E) dull; exciting

A) static; dynamic

Corrective actions should always A) strengthen an organization's competitive position in its industry. B) streamline asset holdings. C) have no risk. D) involve abandoning existing strategies. E) all of the above

A) strengthen an organization's competitive position in its industry.

Perhaps the most dramatic new market segmentation strategy is the A) targeting of regional tastes. B) focusing on universal product. C) preference of international over domestic sales. D) treatment of industrial markets. E) none of the above

A) targeting of regional tastes.

A benefit of using projected balance sheets and income statements is that A) the impact of various implementation decisions can be forecasted. B) money can be put aside to pay future income taxes. C) insurance needs can be computed. D) it is useful in analyzing past performance. E) all of the above

A) the impact of various implementation decisions can be forecasted.

Social policy can best be defined as A) the responsibilities a firm has to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups. B) a document providing behavioral guidelines that cover daily activities and decisions within a firm. C) an SEC mandate to report any unethical behavior. D) the legal requirement to reveal how a firm's operations impact the natural environment. E) mandatory technical standards that result in an environmental management system.

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

Americans place an exceptionally high priority on ________ whereas many foreigners place more worth on ________. A) time; relationships B) relationships; time C) silence; time D) silence; relationships E) formality; informality

A) time; relationships

All of the following are examples of marketing decisions that may require policies EXCEPT A) to be a market leader or follower. B) how to make advertisements more interactive to be more effective. C) to offer a complete or limited warranty. D) to use heavy, light, or no TV advertising. E) to use exclusive dealerships or multiple channels of distribution.

A) to be a market leader or follower.

A firm's power and prestige in domestic markets may be significantly enhanced if the firm competes globally A) which can translate into improved negotiating power among important groups. B) though this rarely results in a practical advantage. C) but this can hurt its bargaining power with suppliers and distributors. D) yet this does nothing to improve its position with creditors. E) which can alienate the firm from its domestic creditors, suppliers, and distributors.

A) which can translate into improved negotiating power among important groups.

What is the best divisional structure when a few major customers are of paramount importance and many different services are provided to these customers? A) By geographic area B) By customer C) By product D) By process E) By cost

B) By customer

What term refers to the need for strategists to examine sets of trends, as well as individual trends, in evaluating strategies? A) Consistency B) Consonance C) Synergy D) Feasibility E) Advantage

B) Consonance

Which of these is a potential problem associated with using only quantitative criteria for selecting strategies? A) Most quantitative criteria are geared to long-term objectives rather than annual objectives. B) Different accounting methods can provide different results on many quantitative criteria. C) Intuitive judgments are never used in deriving quantitative criteria. D) Quantitative criteria include human factors that may be underlying causes of declining performance. E) Quantitative criteria are not able to compare the firm's performance over different period of time.

B) Different accounting methods can provide different results on many quantitative criteria.

Which of the following is NOT true concerning the Japanese concept of Wa? A) Nearly all corporate activities in Japan encourage Wa among managers and employees. B) Discussions potentially disruptive to Wa are generally conducted in very formal settings. C) The potential attractiveness of alternative business decisions are evaluated in terms of their long-term effect on the group's Wa. D) Entertaining is an important business activity in Japan because it strengthens Wa. E) The Wa concept involves group loyalty and consensus.

B) Discussions potentially disruptive to Wa are generally conducted in very formal settings.

What is the most widely used technique for determining the best combination of debt and stock? A) Debt-to-stock ratio B) Earnings per share/earnings before interest and taxes analysis C) Gross profit analysis D) Capital asset pricing model E) Present value analysis

B) Earnings per share/earnings before interest and taxes analysis

What challenge facing all organizations requires managers to formulate strategies that preserve and conserve natural resources and control pollution? A) Economic B) Ecological C) Compensational D) Benchmarking E) Sociological

B) Ecological

What type of organizational structure promotes specialization of labor and allows rapid decision making? A) Divisional structure by product B) Functional structure C) Divisional structure by customer D) Strategic business unit E) Matrix structure

B) Functional structure

A 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. A) mission B) IFE matrix C) vision D) EFE matrix E) EPM matrix

B) IFE matrix

Which company estimates wellness programs have cumulatively saved the company $250 million on health-care costs in the past decade? A) Ford Motor Company B) Johnson & Johnson C) Coca-Cola D) TJX E) Boeing

B) Johnson & Johnson

________ can enable firms to learn the technology, culture, and business practices of other people and to make contacts with potential customers, suppliers, creditors, and distributors in foreign countries. A) Economies of scale B) Joint ventures C) Low-cost production facilities D) Reduced tariffs E) Domestic operations

B) Joint ventures

Which of the following is in keeping with the current view of organizational change? A) Organizational change is a project. B) Organizational change is a continuous process. C) Organizational change is an event. D) Organizational change involves unfreezing behavior, changing the behavior, and then refreezing the new behavior. E) All of the above

B) Organizational change is a continuous process.

Which variable would be considered part of the "product" element of the marketing mix? A) Advertising B) Packaging C) Payment terms D) Inventory levels and location E) Publicity

B) Packaging

What term is used to describe specific guidelines, methods, procedures, rules, forms and administrative practices established to support and encourage work toward stated goals? A) Long-term objectives B) Policies C) Annual objectives D) Strategies E) Values

B) Policies

Which is NOT a required step in perceptual mapping? A) Select key criteria that effectively differentiate products or services in the industry. B) Serve two segments with the same strategy. C) Plot major competitors' products or services in the resultant matrix. D) Identify areas in the positioning map where the company's products or services could be most competitive in the given target market. E) Develop a marketing plan to position the company's products and services appropriately.

B) Serve two segments with the same strategy.

What aims to balance long-term with short-term concerns, financial with nonfinancial concerns, and internal with external concerns? A) Contingency planning B) The Balanced Scorecard approach C) Taking corrective action D) Benchmarking E) Consonance

B) The Balanced Scorecard approach

Which of the following nations has the highest corporate tax rate? A) Ireland B) The USA C) Great Britain D) France E) Germany

B) The USA

Which of the following is true about two different market segments? A) They can usually be served with the same marketing strategy. B) They usually require different marketing strategies. C) They are always in different geographic locations. D) They are usually interchangeable. E) All of the above

B) They usually require different marketing strategies.

A document that discloses to shareholders information about a firm's labor practices, product sourcing, energy efficiency, environmental impact, and business ethics practices is known as A) a code of ethics. B) a sustainability report. C) an EMS. D) ISO 14000. E) green terminology.

B) a sustainability report.

Alaska and oil companies contend that protections for polar bears ________. A) are not aggressive enough and must be strengthened B) are diminishing opportunities for Alaska energy development C) help push Alaskan companies to explore alternative energy sources D) are ineffective and actually have caused populations in Alaska to decrease E) are long overdue and must be enacted immediately

B) are diminishing opportunities for Alaska energy development

Corrective action should do all of the following EXCEPT A) capitalize upon internal strengths. B) avoid external opportunities. C) avoid external threats. D) improve internal weaknesses. E) strengthen an organization's competitive position.

B) avoid external opportunities.

To avoid paying U.S. taxes on income made in other countries, many U.S. companies are ________ outside the USA but ________ inside the USA. A) cash-poor; cash-rich B) cash-rich; cash-poor C) unincorporated; incorporated D) cash-poor; incorporated E) unincorporated; cash-rich

B) cash-rich; cash-poor

The strategic-management process for multinational firms is ________ for purely domestic firms, and the process is ________ for international firms. A) conceptually the same as; more simple B) conceptually the same as; more complex C) conceptually different than; more simple D) conceptually different than; more complex E) conceptually the same; less important

B) conceptually the same as; more complex

A disagreement between two or more parties on one or more issues is called a(n) A) integrated solution. B) conflict. C) compromise. D) diffusion. E) avoidance.

B) conflict.

A proactive environmental policy is likely to lead to A) higher cleanup costs. B) conservation of energy. C) reduced customer loyalty. D) numerous liability suits. E) higher medical costs.

B) conservation of energy.

The primary benefit sought from restructuring is A) employee involvement. B) cost reduction. C) increased morale. D) increased number of hierarchical levels in the organization. E) increased innovation.

B) cost reduction.

Restructuring is also referred to as A) reengineering. B) delayering. C) diversifying. D) upsizing. E) integrating.

B) delayering.

Just-in-time describes A) implementing strategies just before bankruptcy. B) delivering materials just as they are needed. C) a scheduling method for meetings. D) a personnel planning method. E) a process for improving quality.

B) delivering materials just as they are needed.

An area on a perceptual map without ideal points indicates a A) market segment. B) demand void. C) vacant niche. D) multidimensional scale. E) product reposition.

B) demand void.

Bad ethics can ________ strategic plans. A) derail all but the best B) derail even the best C) derail only poorly-intentioned D) derail only ill-conceived E) never affect

B) derail even the best

Business analytics A) is retrospective rather than predictive. B) enables a firm to learn from experience and to make current and future decisions based on prior information. C) uses mathematical models that enhance decision making at only the topmost levels of management. D) can enable a company to benefit from measuring risk, but it cannot enable the company to manage risk. E) as an industry is experiencing a decline in revenue.

B) enables a firm to learn from experience and to make current and future decisions based on prior information.

The European Parliament in late 2012 voted with an overwhelming 566-47 margin to A) reinstate commercial whaling. B) eradicate the practice of shark finning. C) add polar bears to the list of endangered species. D) outlaw international trade in ivory. E) None of the above

B) eradicate the practice of shark finning.

According to Rumelt, the final broad test of strategy is its A) advantage. B) feasibility. C) consonance. D) consistency. E) distinctiveness.

B) feasibility.

In South Korea, activities involve concern for ________, or harmony based on respect of hierarchical relationships, including obedience to authority. A) guanxi B) inhwa C) feng shui D) nemaswashio E) Wa

B) inhwa

Success today A) guarantees success tomorrow. B) is no guarantee of success tomorrow. C) should lull a firm into complacency. D) is all that really matters. E) none of the above.

B) is no guarantee of success tomorrow.

Formal statements of organizational philosophy, charters, creeds, materials used for recruitment and selection, and socialization help an organization A) abide by SEC laws. B) link culture to strategy. C) set guidelines for firing. D) increase profits. E) manage conflicts between stakeholders.

B) link culture to strategy.

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. A) unnecessary B) needed C) undesirable D) prohibitively expensive E) futile

B) needed

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. A) feng shui B) nemaswashio C) Wa D) guanxi E) inhwa

B) nemaswashio

Competitive advantage normally is the result of superiority in resources, skills, or A) employees. B) position. C) consistency. D) feasibility. E) governance.

B) position.

All of the following business actions are considered to be unethical EXCEPT A) moving jobs overseas. B) preventing environmental harm. C) overpricing. D) sexual harassment. E) insider trading.

B) preventing environmental harm.

High corporate tax rates A) encourage investment in new factories. B) provide strong incentives to avoid and evade taxes. C) attract foreign investors. D) make a nation a desirable location for investment. E) have been a growing trend since the 1980s.

B) provide strong incentives to avoid and evade taxes.

Also important in evaluating strategies are ________ criteria, like high absenteeism and turnover rates, or low employee satisfaction. A) numerical B) qualitative C) quantitative D) accounting E) financial

B) qualitative

In an industry that is, or is rapidly becoming global, the riskiest possible posture is to A) become a global competitor. B) remain a domestic competitor. C) remain a global competitor. D) expand beyond the role of domestic competitor. E) none of the above

B) remain a domestic competitor.

Evaluating the worth of a firm A) is an exact science. B) requires both qualitative and quantitative skills. C) is based solely on financial facts. D) is known only to the firm's accountants.

B) requires both qualitative and quantitative skills.

Strategy formulation A) is managing forces during the action. B) requires coordination among a few individuals. C) is primarily an operational process. D) requires special motivation and leadership skills. E) all of the above

B) requires coordination among a few individuals.

Rumelt's criteria of consonance refers to the need for strategists to examine A) inconsistent goals. B) sets of trends. C) impractical objectives. D) competitive advantages. E) the costs associated with particular strategies.

B) sets of trends.

With regard to the visible or hidden issue, most executives agree that A) the SEC should regulate whether or not companies make their strategic information visible. B) some strategic information should remain confidential to top managers. C) a company has gone too far when it takes steps to ensure that strategic information is not disseminated beyond "the inner circle." D) the potential benefit of improved employee and stakeholder motivation and input is not worth the risk of rival firms easily knowing and exploiting a firm's strategies. E) keeping strategies secret from employees and stakeholder will likely improve communication, understanding, and commitment.

B) some strategic information should remain confidential to top managers.

All of the following statements regarding the recent trend in Japan of switching from seniority-based pay to performance-based approaches are true EXCEPT A) the switch is an effort to cut costs. B) the switch is boosting employee morale. C) the switch is an effort to increase productivity. D) the switch opposes the traditional training of Japanese employees to cooperate rather than compete. E) the switch goes against decades of encouraging workers to work in groups instead of individually.

B) the switch is boosting employee morale.

Which of these is true about strategy implementation? A) It is positioning forces before the action. B) It focuses on effectiveness. C) It is primarily an operational process. D) It is primarily an intellectual process. E) It requires intuitive skills.

C) It is primarily an operational process.

________ organizations require more elaborate and detailed strategy-evaluation systems than ________ ones because it is more difficult to coordinate efforts among different divisions and functional areas. A) Non-profit; for-profit B) For-profit; non-profit C) Large; small D) Small; large E) Foreign; domestic

C) Large; small

What is the most complex form of organizational structure? A) Divisional B) SBU C) Matrix D) Functional E) Geographic

C) Matrix

In preparing projected statements, to project cost of goods sold and the expense items in the income statement, which of these methods is recommended? A) Determining the net worth method B) What a firm earns method C) Percentage-of-sales method D) Price-earnings ratio method E) Outstanding shares method

C) Percentage-of-sales method

Which method of determining a firm's net worth divides the market price of the firm's stock by the annual earnings per share, and multiplies this number by the firm's average net income for the past five years? A) Debt/equity method B) Current ratio method C) Price-earnings ratio method D) Long-term asset method E) Outstanding shares method

C) Price-earnings ratio method

Which of the following variables is NOT directly affected by market segmentation? A) Product B) Place C) Process D) Promotion E) Price

C) Process

A firm uses information technology to reconfigure work, jobs, and processes. As a result, cost, quality, service, and speed are improved. What has the firm engaged in? A) Restructuring B) Benchmarking C) Reengineering D) Rightsizing E) Delayering

C) Reengineering

What action involves reconfiguring or redesigning work, jobs, and processes for the purpose of improving cost, quality, service, and speed? A) Restructuring B) Downsizing C) Reengineering D) Delayering E) Recruiting

C) Reengineering

Which organizational structure has the disadvantage of ambiguous roles for senior executives? A) Functional B) Divisional C) Strategic business unit D) Matrix E) Process

C) Strategic business unit

In projected financial statements, what is used as a plug figure? A) Retained earnings B) Fixed assets C) The cash account D) Long-term liabilities E) Stockholders' equity

C) The cash account

Which of the following is NOT true about objectives? A) They should be communicated throughout the organization. B) They should have an appropriate time dimension. C) They should use terms like "maximize," "minimize," and "as soon as possible." D) They should be measurable. E) They should be consistent.

C) They should use terms like "maximize," "minimize," and "as soon as possible."

________ was socially responsible in the wake of the earthquake and tsunami that devastated Japan in 2011; it also was able to get supplies to people who needed them following Hurricane Katrina. A) China Railway Group B) GDF Suez C) Walmart D) RWE E) Marquard & Bahls

C) Walmart

Most quantitative criteria are geared to ________ objectives rather than ________ objectives. A) top-management; employee B) short-term; annual C) annual; long-term D) environmental; community E) long-term; short-term

C) annual; long-term

Wellness programs A) are too expensive for most companies to afford. B) are desired by employees but don't provide value to the company. C) are becoming more prevalent as companies realize the benefits to the firm. D) attract prospective employees who then fail to take advantage of them. E) are facing legal challenges from the health-care industry.

C) are becoming more prevalent as companies realize the benefits to the firm.

If a firm has a bad sustainability record this will A) help a firm in the market. B) improve a firm's standing in the community. C) cause investors to closely scrutinize the firm. D) deflect the scrutiny of a firm by environmentalists. E) release the firm from governmental reporting obligations.

C) cause investors to closely scrutinize the firm.

Establishing objectives is a A) executive-only activity. B) centralized activity. C) decentralized activity. D) centralized-decentralized activity. E) command-and-control activity.

C) decentralized activity.

A conservative rule of thumb is to establish a business' worth as ________ the firm's current annual profit. A) twice B) three times C) five times D) ten times E) fifteen times

C) five times

All of the following are potential disadvantages to initiating, continuing, or expanding business across national borders EXCEPT A) firms confront different social, cultural, and political forces when doing business internationally, which can make communication in the firm difficult. B) keeping informed about the number and nature of competitors is more difficult when doing business internationally. C) foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets. D) dealing with two or more monetary systems can complicate international business operations. E) foreign operations could be seized by nationalistic forces.

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

The Financial Accounting Standard Board (FASB) Rule 142 deals with A) illegal inflation of financial projections. B) hacking issues in MIS. C) goodwill. D) how firms conduct R&D. E) improving marketing policies.

C) goodwill.

Most economists argue that protectionism ________ the world economy because it ________ trade among countries. A) helps; inhibits B) helps; encourages C) harms; inhibits D) harms; encourages E) doesn't impact; doesn't affect

C) harms; inhibits

All of the following are things that many cultures around the world value more than the competitiveness that is so important in the USA EXCEPT A) modesty. B) team spirit. C) individualism. D) collectivity. E) patience.

C) individualism.

Projected financial analysis is an important strategy-implementation technique because A) it is an exact measurement of financial costs in the future. B) it is an exact measurement of future company profits. C) it allows an organization to examine the expected results of various actions and approaches. D) insurance needs can be computed. E) none of the above

C) it allows an organization to examine the expected results of various actions and approaches.

Organizations that conduct business operations across national borders are called A) protectionists. B) national firms. C) multinational corporations. D) domestic companies. E) all of the above.

C) multinational corporations.

Conflict in an organization is A) always bad. B) always good. C) not always bad. D) a sign of bankruptcy. E) completely avoidable.

C) not always bad.

Strategy-evaluation activities should ideally be performed A) just on a periodic basis. B) only at the onset of a problem. C) on a continuous basis. D) solely upon completion of major projects. E) annually only.

C) on a continuous basis.

In 2013, ________ of CEO compensation was directly associated with the performance of the firm, rather than salary. A) less than 10 percent B) almost 25 percent C) over 50 percent D) exactly 75 percent E) a full 100 percent

C) over 50 percent

R&D employees and managers perform all of the following tasks EXCEPT A) transferring complex technology. B) altering products to particular tastes and specifications. C) researching resource availability. D) adapting processes to local markets. E) adjusting processes to local raw materials.

C) researching resource availability.

Japan's prescription for dealing with problems associated with an aging society includes A) relying on large-scale immigration. B) providing incentives for its elderly to retire at ages 55 to 60. C) reversing the old-fashioned trend of keeping women at home. D) enacting laws against discrimination based on age. E) phasing in a shift from age 60 to age 55 as the date when a person may begin receiving a pension.

C) reversing the old-fashioned trend of keeping women at home.

Mintzberg's notion of "crafting" strategies A) is consistent with the view that strategic management is more a science than an art. B) contends that firms need to assess their environments, do research, evaluate alternatives, analyze, and then choose a course of action. C) suggests that strategic decision making be based primarily on holistic thinking, intuition, creativity, and imagination. D) reject strategies that result from subjective imagination in favor of objective analysis. E) insists on formality.

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

If you discover during the course of strategy evaluation that major changes have occurred in the firm's internal strategic position, you should A) continue on the present strategic course. B) wait until the next quarter to see if things revert. C) take corrective actions. D) follow the original strategic plan. E) none of the above

C) take corrective actions.

The U.S. Foreign Corrupt Practices Act and a new provision in the Dodd-Frank financial regulation-law allows company employees who bring cases of financial fraud, such as bribery, to the government's attention to receive ________ percent of any sum recovered. A) less than 10 B) exactly 20 C) up to 30 D) about 40 E) at least 50

C) up to 30

Why do changes in company strategy often require changes in the way an organization is structured? A) Structure dictates how goals and objectives will be established. B) Structure dictates how resources will be allocated. C) Structure should be designed to facilitate the strategic pursuit of a firm. D) All of the above E) None of the above

D) All of the above

Which item is included in net worth? A) Retained earnings B) Common stock C) Additional paid-in-capital D) All of the above are included in net worth. E) None of the above are included in net worth.

D) All of the above are included in net worth.

Whereas ________ businesses embody individualism, achievement, competition, and informality, ________ businesses stress collectivism, continuity, cooperation, and formality. A) Japanese; Mexican B) Mexican; Japanese C) Mexican; American D) American; Mexican E) Japanese; American

D) American; Mexican

Which of the following is NOT a key attribute that serves as one of the evaluative criteria for Fortune's "America's Most Admired Companies"? A) People management B) Innovativeness C) Financial soundness D) Amount of physical resources E) Social responsibility

D) Amount of physical resources

________ plans can be defined as alternative plans that can be put into effect if certain key events do not occur as expected. A) Agile B) Scenario C) Evaluation D) Contingency E) Forecast

D) Contingency

Which approach for managing and resolving conflict involves playing down differences between conflicting parties, while accentuating similarities and common interests? A) Avoidance B) Resistance C) Compliance D) Defusion E) Confrontation

D) Defusion

The lowest cost source for precision machinery is A) Japan. B) Sri Lanka. C) Malaysia. D) Europe. E) Mexico.

D) Europe.

Who has mandated that every publicly held company in the United States must issue an annual cash-flow statement in addition to the usual financial reports? A) SEC B) Congress C) FCC D) FASB E) OPEC

D) FASB

What pay strategy requires employees or departments to establish performance targets, which, if exceeded, result in bonuses for all members? A) Profit sharing B) Bonus system C) Salary D) Gain sharing E) Hourly wage system

D) Gain sharing

Which of the following is NOT a typical characteristic of most Japanese managers? A) Reserved B) Quiet C) Distant D) Impulsive E) Introspective

D) Impulsive

Which element in the projected income statement CANNOT be forecasted using the percentage-of-sales method? A) Cost of goods sold B) Selling expense C) Administrative expense D) Interest expense E) All of these items can be forecasted using the percentage-of-sales method.

D) Interest expense

How does life in Mexico compare to life in the United States? A) It is faster. B) It is more hectic. C) It is more punctuality-driven. D) It is slower. E) It is more competitive.

D) It is slower.

Which of the following is true regarding the design of a firm's strategy-evaluation system? A) There is a one-size-fits-all system that works for all companies. B) It does not need to take into account the organization's size. C) The management style of a firm has no bearing on the design. D) It should be determined based on the unique characteristics of a company. E) There is one ideal system.

D) It should be determined based on the unique characteristics of a company.

Which of the following is NOT true regarding European workers and workplaces? A) Most European workers are unionized. B) Most European workers enjoy more frequent vacations and holidays than U.S. workers. C) Guaranteed permanent employment is typically a part of employment contracts in Europe. D) Many Europeans respond enthusiastically to pay-for-performance, commission salaries, and objective measurement reward systems. E) Many Europeans find the notion of team spirit difficult to grasp.

D) Many Europeans respond enthusiastically to pay-for-performance, commission salaries, and objective measurement reward systems.

Which of the following statements is NOT true? A) America's economy is becoming much less American. B) A world economy and monetary system are emerging. C) Corporations in every corner of the globe are taking advantage of the opportunity to obtain customers globally. D) Markets are shifting slowly and in many cases diverging in tastes, trends, and prices. E) Innovative transport systems are accelerating the transfer of technology.

D) Markets are shifting slowly and in many cases diverging in tastes, trends, and prices.

What is a central strategy-implementation technique that allows an organization to examine the expected results of various actions and approaches? A) EPS/EBIT B) Financial budgeting C) TOWS analysis D) Projected financial statement analysis E) External analysis

D) Projected financial statement analysis

________ are the individuals primarily responsible for ensuring that high ethical principles are espoused and practiced in an organization. A) Non-management employees B) Mid-level managers C) Shareholders D) Strategists such as CEOs and business owners E) Governmental regulatory bodies

D) Strategists such as CEOs and business owners

Matching which factors would allow factories to produce desirable levels without extra shifts, overtime, or subcontracting? A) Markets and competitors B) Competition and positioning C) Customer behavior and positioning D) Supply and demand E) Segments and competitors

D) Supply and demand

A particularly important twenty-first-century challenge facing all strategists today is A) deciding whether the process should be more an art or a science. B) deciding whether strategies should be visible or hidden from stakeholders. C) deciding whether the process should be more top-down or bottom-up in their firm. D) all of the above E) none of the above

D) all of the above

Responsibility for encouraging ethical decision making and ensuring ethical behavior in a firm lies with A) only a firm's strategists. B) only a firm's managers. C) only a firm's shareholders. D) both a firm's strategists and its managers. E) neither a firm's strategists nor its managers.

D) both a firm's strategists and its managers.

Aspects of an existing culture that are antagonistic to a proposed strategy should be A) preserved. B) emphasized. C) built upon. D) changed. E) celebrated.

D) changed.

More and more firms believe that ethics training and an ethics culture A) are socially irresponsible. B) are admirable but damage a firm's competitive positioning. C) are costly and provide no practical benefit to the company. D) create strategic advantage. E) can tarnish the reputation of a firm.

D) create strategic advantage.

All of these are Richard Rumelt's criteria to evaluate a strategy EXCEPT A) advantage. B) consistency. C) feasibility. D) distinctiveness. E) consonance.

D) distinctiveness.

Foreign revenue as a percentage of total company revenues ________ in hundreds of U.S. firms, including ExxonMobil, Gillette, and Citicorp. A) is almost 10 percent B) approaches 20 percent C) is 25 percent D) exceeds 50 percent E) is at least 70 percent

D) exceeds 50 percent

Joint ventures and partnerships between domestic and foreign firms are A) falling out of favor. B) increasingly difficult to engineer. C) the exception rather than the rule. D) extremely commonplace. E) subject to too many regulations to be feasible.

D) extremely commonplace.

Quantitative criteria commonly used to evaluate strategies are A) cash budgets. B) Balanced Scorecards. C) Capital Asset Pricing Models. D) financial ratios. E) present value analyses.

D) financial ratios.

All of the following are potential advantages to initiating, continuing, and/or expanding international operations EXCEPT A) firms can gain new customers for their products. B) foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets. C) foreign operations can allow firms to establish low-cost production facilities in locations close to raw materials and/or cheap labor. D) foreign operations could be seized by nationalistic factions. E) foreign operations may result in reduced tariffs, lower taxes, and favorable political treatment.

D) foreign operations could be seized by nationalistic factions.

The strategy-evaluation process should A) dominate decisions. B) be complex. C) be cumbersome. D) foster mutual understanding and trust. E) be restrictive.

D) foster mutual understanding and trust.

All of the following are examples of offerings at companies to promote a corporate wellness culture EXCEPT A) stress management programs. B) health fairs. C) abundance of bicycle racks onsite. D) free health insurance for employees who exercise regularly. E) cash incentives for completing Ironman triathlons.

D) free health insurance for employees who exercise regularly.

When developing an organizational chart, you should A) recommend dual titles for executives. B) use the title "president" for the top executive of the firm. C) make sure that the chief financial officer is not at the same level as the chief operating officer. D) have division presidents report to a chief operating officer. E) have employees report to more than one person in the chain of command.

D) have division presidents report to a chief operating officer.

All of the following are reasons that workplace romance can be detrimental to workplace morale and productivity EXCEPT A) favoritism complaints can arise. B) personal arguments can lead to work arguments. C) whispering secrets can lead to tensions and hostilities among coworkers. D) increased quality and quantity of work can occur. E) sexual harassment charges may ensue, either by the involved female or a third party.

D) increased quality and quantity of work can occur.

The domestic food industry ________, so Kraft Foods is focusing on foreign acquisitions. A) is falling 5% per year B) is falling 1% per year C) is stagnant D) is growing 3% per year E) is growing 7% per year

D) is growing 3% per year

Simply having a code of ethics A) will ensure ethical business behavior. B) eliminates the need for periodic ethics workshops. C) is all that is necessary to sensitize people to workplace circumstances in which ethics issues may arise. D) is insufficient to guarantee that employees behave in an ethical manner. E) secures an ethics culture in the workplace.

D) is insufficient to guarantee that employees behave in an ethical manner.

Subdividing a market into distinct subsets of customers according to their needs and buying habits is known as A) market penetration. B) product diversification. C) market segregation. D) market segmentation. E) positioning.

D) market segmentation.

Increased education and diversity of the workforce at all levels are reasons why A) the top-down approach is preferred. B) the bottom-up approach is untenable. C) only top executives have the experience and acumen to make strategy decisions. D) middle- and lower-level managers, and even nonmanagers, should be involved in the strategic planning process. E) the horizontal approach is the most pragmatic choice.

D) middle- and lower-level managers, and even nonmanagers, should be involved in the strategic planning process.

Firms can align ethical and strategic decision making by A) omitting ethical considerations from long-term planning. B) excluding ethical decision making from the performance appraisal process. C) discouraging whistle-blowing. D) monitoring departmental and corporate performance regarding ethical issues. E) All of the above

D) monitoring departmental and corporate performance regarding ethical issues.

In Europe it is generally true that the farther ________ on the continent, the more participatory the management style. A) south B) east C) west D) north E) southeast

D) north

Environmental advocacy groups now have ________ Americans as members. A) approximately 100,000 B) just under a million C) close to 5 million D) over 20 million E) almost a billion

D) over 20 million

Multidimensional scaling is used to determine A) the size of a new building. B) the size of a new department. C) the amount of high-tech equipment a firm needs. D) perceptual mapping. E) market segmentation.

D) perceptual mapping.

The first step in performing projected financial analysis is to A) prepare the projected balance sheet. B) take an inventory of goods. C) estimate increases in debt. D) prepare the projected income statement. E) calculate the projected net income.

D) prepare the projected income statement.

All of the following are ways and means for altering an organization's culture EXCEPT A) recruitment. B) restructuring of an organization's design. C) role modeling. D) retrenchment. E) mentoring.

D) retrenchment.

Workplace romance A) is defined as unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature. B) is defined as illegal by the Equal Employment Opportunity Commission. C) should be strictly forbidden by organizations. D) simply happens so organizations should determine how to best manage the phenomena. E) is an intimate relationship between two employees, one of whom is not consenting.

D) simply happens so organizations should determine how to best manage the phenomena.

Japan is suffering from a decline in overall economic production A) due to its growing population. B) related to the declining age of its workforce. C) because of a surge in the number of its taxpaying workers. D) since worker productivity increases are not able to offset declines in number of workers. E) because more and more women are working outside the home.

D) since worker productivity increases are not able to offset declines in number of workers.

Special natural environment issues include all of the following EXCEPT A) ozone depletion. B) destruction of animal habitats. C) pollution control. D) spreading computer viruses. E) developing biodegradable products and packages.

D) spreading computer viruses.

The United Kingdom's new Bribery Law A) is less stringent than the similar U.S. FCPA. B) carries a minimum 10-year prison sentence for those convicted of bribery. C) allows foreign companies doing business in the UK to bribe officials if that is their national convention. D) stipulates that failure to prevent bribery is an offense. E) All of the above

D) stipulates that failure to prevent bribery is an offense.

All of the following are reasons strategy evaluation is more difficult today EXCEPT A) a dramatic increase in the environment's complexity. B) the increasing number of variables. C) the increase in the number of both domestic and world events affecting organizations. D) the increasing time span for which planning can be done with any degree of certainty. E) the rapid rate of obsolescence of even the best plans.

D) the increasing time span for which planning can be done with any degree of certainty.

Glass ceiling refers to A) the reality that most companies do not offer paternity leave for fathers as a benefit. B) the understanding that a good home life for employees contributes to a good work life and value for the firm. C) the focus on flexible scheduling, job sharing, and other quality of life benefits. D) the invisible barrier in many firms that bars women and minorities from top-level management positions. E) the decline in the percentage of women with college degrees between 1970 and today.

D) the invisible barrier in many firms that bars women and minorities from top-level management positions.

Strengths of competitors in foreign lands are often ________, and weaknesses are often ________. A) overestimated; overestimated B) overestimated; underestimated C) underestimated; underestimated D) underestimated; overestimated E) none of the above

D) underestimated; overestimated

Ethics training programs should contain which of the following? A) Messages from the CEO or business owner emphasizing ethical business practices B) The development and discussion of codes of ethics C) Procedures for discussing unethical behavior D) Procedures for reporting unethical behavior E) All of the above

E) All of the above

Managers and employees today must be careful not to ignore, conceal, or disregard a pollution problem or they could A) be fired. B) be demoted. C) be held indirectly responsible for their firm's pollution. D) have their firm turn on them in a quest for leniency. E) All of the above

E) All of the above

Sustainability refers to the extent that an organization's operations and actions ________ the natural environment. A) protect B) mend C) preserve D) reflect good stewardship of E) All of the above

E) All of the above

The Wall Street Journal article "America Gone Wild" A) reports an astonishing resurgence in wildlife populations in the USA. B) cites that deer-vehicle crashes in the USA cost $1.5 billion a year. C) describes damage done to U.S. infrastructure by the resurgence in wildlife. D) reveals that the total annual cost of wildlife damage in the USA exceeds $28 billion. E) All of the above

E) All of the above

What corrective actions might a firm take during strategy evaluation? A) Revise the business mission B) Issue stock C) Revise objectives D) Sell a division E) All of the above

E) All of the above

What is a limitation of using financial budgets? A) They can be so detailed that they are cumbersome and expensive. B) They can become a substitute for objectives. C) They can hide inefficiencies if done only on precedent. D) They are sometimes used as instruments of tyranny. E) All of the above

E) All of the above

What level of management is directly affected by strategy implementation? A) Plant managers B) Sales managers C) Project managers D) Division managers E) All of the above

E) All of the above

Which of the following is a corrective action a company might take to correct unfavorable variances? A) Divesting a division B) Revising objectives C) Raising capital with stock or debt D) Allocating resources differently E) All of the above

E) All of the above

Which of the following is a management issue central to strategy implementation? A) Devising policies B) Revising reward and incentive plans C) Minimizing resistance to change D) Developing an effective human resources function E) All of the above

E) All of the above

Which of these is a basic activity of strategy evaluation? A) Reviewing the underlying bases of current strategies B) Comparing expected results with actual results C) Taking corrective actions D) Choices B and C only E) All of the above

E) All of the above

Why is market segmentation an important variable in strategy implementation? A) It allows a small firm to compete successfully with a large firm. B) It allows a firm to operate with limited resources. C) Mass production, mass distribution, and mass advertising are not always required. D) Market segmentation decisions directly affect marketing mix variables. E) All of the above

E) All of the above

Which of these involves comparing a firm against the best firms in the industry on a wide variety of performance-related criteria? A) Restructuring B) Process redesign C) Reengineering D) Delayering E) Benchmarking

E) Benchmarking

What is NOT one of the basic ways a divisional structure can be organized? A) By geographic area B) By product C) By customer D) By process E) By cost

E) By cost

Which approach for managing and resolving conflict involves exchanging members of conflicting parties so that each can gain an appreciation of the other's point of view? A) Avoidance B) Resistance C) Compliance D) Defusion E) Confrontation

E) Confrontation

Which of the following is NOT a way that companies can help create an ethical culture in their organization? A) Outlining ethical expectations B) Giving examples of ethical situations that commonly occur in their businesses C) Providing code-of-conduct manuals D) Creating interactive exercises that pose hypothetical ethical dilemmas E) Discouraging whistle-blowing

E) Discouraging whistle-blowing

Which is a rule from the Wall Street Journal article "The New Rules of Flirting"? A) Do not flirt within a relationship that you want to strengthen. B) Do flirt with someone you know is looking for a relationship if you are not interested in a new relationship. C) Do flirt to make your partner jealous. D) Flirting between power differences, such as boss and employee, is usually fine. E) Do not make physical contact with the person you are flirting with, unless it is within a desired relationship.

E) Do not make physical contact with the person you are flirting with, unless it is within a desired relationship.

Which of these is NOT one of the tests used to determine whether a performance-pay plan will benefit an organization? A) Does the plan capture attention? B) Do employees understand the plan? C) Is the plan improving communications? D) Does the plan pay out when it should? E) Does the plan reduce management layers?

E) Does the plan reduce management layers?

Which of the following U.S. industries is NOT yet greatly challenged by foreign competitors? A) Aircraft manufacturing B) Auto manufacturing C) Heavy equipment manufacturing D) Tire manufacturing E) Furniture manufacturing

E) Furniture manufacturing

________ recently cut its corporate tax rate by five percentage points, leaving ________ with the highest corporate tax rate among all the nations in the world. A) The USA; Brazil B) Brazil; Japan C) Japan; Brazil D) Brazil; the USA E) Japan; the USA

E) Japan; the USA

Which two variables rank as marketing's most important contributions to strategic management? A) Diversification and budgeting. B) Marketing penetration and competition. C) Competition and collaboration. D) Product development and market development. E) Market segmentation and product positioning.

E) Market segmentation and product positioning.

Which of the following business actions is considered to be unethical? A) Having satisfactory product or service safety B) Selling products in foreign markets C) Providing equal opportunities for women and minorities D) Filing expense accounts E) Misleading labeling

E) Misleading labeling

Preserving the environment should be a permanent part of doing business for which of the following reasons? A) Consumer demand for environmentally safe products and packages is low. B) Public opinion demanding that firms conduct business in ways that preserve the natural environment is weak. C) Federal and state environmental regulations are fairly simple and static. D) Many consumers, suppliers, distributors, and investors shun doing business with environmentally strong firms. E) More lenders are examining the environmental liabilities of businesses seeking loans.

E) More lenders are examining the environmental liabilities of businesses seeking loans.

Which U.S. industry is already greatly challenged by foreign competitors? A) Printing B) Retailing C) Retail banking D) Consumer packaged goods E) None of the above

E) None of the above

All of the following are reasons to be completely open as opposed to secretive with the strategy process EXCEPT A) Managers, employees and other stakeholders can readily contribute to the process. B) Stakeholders have greater basis for understanding and committing to a firm that is open. C) All levels of today's workforce exhibit increased education and diversity, making such contributions valuable. D) Participation and openness enhance understanding, commitment and communication within the firm. E) Openness limits rival firms from imitating or duplicating the firm's strategies.

E) Openness limits rival firms from imitating or duplicating the firm's strategies.

Which term is primarily concerned with shareholder well-being rather than employee well-being? A) Benchmarking B) Reengineering C) Product redesign D) Process management E) Restructuring

E) Restructuring

Which of the following is NOT given as an example of a decision that may require finance/accounting policies? A) To extend the time of accounts receivable B) To establish a certain percentage discount on accounts within a specified period of time C) To lease or buy fixed assets D) To use LIFO, FIFO, or a market-value accounting approach E) To be a price leader or a price follower

E) To be a price leader or a price follower

In 2012, how many Fortune 500 have women CEOs? A) Two B) Five C) Twelve D) Eighteen E) Twenty-two

E) Twenty-two

Already the European Union and 113 nations including Australia, Mexico, and Canada have ________ IFRS rules. A) adopted and then abandoned the use of B) been prohibited from adopting C) spoken out publicly against the adoption of D) revised the standard version of the E) adopted or soon plan to use

E) adopted or soon plan to use

A divisional structure by product is most effective when A) special emphasis needs to be placed on specific products. B) an organization offers few products. C) an organization's products or services differ substantially. D) special emphasis needs to be placed on specific services. E) all of the above

E) all of the above

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 above

E) all of the above

Considerable time and effort should be devoted to assuring objectives are well conceived because they represent the basis for A) monitoring progress toward long-term objectives. B) establishing divisional priorities. C) allocating resources. D) evaluating managers. E) all of the above

E) all of the above

Information collection, retrieval, and storage can be used to create competitive advantages in ways such as A) cross-selling to customers. B) monitoring suppliers. C) keeping managers and employees informed. D) coordinating activities among divisions. E) all of the above

E) all of the above

Modern organizational realities demand that employees demonstrate greater A) flexibility. B) innovation. C) creativity. D) initiative. E) all of the above

E) all of the above

Policies A) let both employees and managers know what is expected of them. B) provide a basis for management control. C) allow coordination across organizational units. D) reduce the amount of time managers spend making decisions. E) all of the above

E) all of the above

Resistance to change can manifest itself through A) absenteeism. B) sabotaging production machines. C) filing unfounded grievances. D) unwillingness to cooperate. E) all of the above

E) all of the above

The ________ opportunities and threats that face a multinational corporation are almost limitless. A) social B) cultural C) environmental D) political E) all of the above

E) all of the above

According to researchers, all of the following encourage individuals to accept change EXCEPT A) having a cognitive understanding of the changes. B) having a sense of control over the situation. C) having an awareness that necessary actions are going to be taken to implement change. D) participating in strategy-evaluation activities. E) being overpowered by the nature, types, and speed of changes.

E) being overpowered by the nature, types, and speed of changes.

If success for one organizational department means failure for another department, then strategies may be A) synergistic. B) advantageous. C) trendy. D) feasible. E) inconsistent.

E) inconsistent.

Protectionism involves countries doing all of the following EXCEPT A) levying tariffs against firms outside the country. B) imposing taxes on firms outside the country. C) imposing regulations on firms outside the country. D) restricting imports from firms outside the country. E) liberalizing restrictions on the import of foreign goods.

E) liberalizing restrictions on the import of foreign goods.

The Fortune 50 includes all of the following EXCEPT A) the largest retailers. B) the largest transportation companies. C) the largest utilities. D) the largest banks. E) the largest hospitals.

E) the largest hospitals.

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 A) overall business standards. B) projected goals. C) the performance of suppliers. D) non-financial ratios. E) the performance of competitors.

E) the performance of competitors.