Business Policy and Strategic Management Ch 4-6

C) 1,000

If total fixed costs are $10,000, variable costs per unit are $5, and the price per unit is $15, what is the breakeven quantity? A) 500 B) 667 C) 1,000 D) 2,000 E) 5,000 Ch 4 p. 108 (BE = TFC divided by (price-VC) 10,000/(15-5) = 1,000

True

In 2014-2016, companies are aggressively boosting their dividends paid to shareholders. Ch 4 p. 104

False

In analyzing big data, there is a shift from focusing largely on outliers to also focusing on aggregates. Ch 4 p. 113 (Capsule 4-2)

False

In most industries, only minor costs of producing a product or service are incurred within operations, so production and operations does not have great value as a competitive weapon in a company's overall strategy. Ch 4 p. 109

D) operations.

In most industries, the major costs of producing a product or service are incurred within A) marketing. B) management. C) research and development. D) operations. E) management information systems Ch 4 p. 109

B) distinctive competencies.

A firm's strengths that cannot be easily matched or imitated by competitors are called A) internal audits. B) distinctive competencies. C) external audits. D) interrelated properties. E) internal properties Ch 4 p. 92

True

A form of customer analysis is administering customer surveys. Ch 4 p. 100

True

A ritual is a standardized set of behaviors used to manage anxieties. Ch 4 p. 94 (Table 4-1)

True

Benchmarking is an analytical tool used to determine whether a firm's value chain activities are competitive compared to rivals Ch 4 p. 114

B) shorthand of words used to capture a vision or to reinforce old or new values.

Metaphors are A) several rites connected together. B) shorthand of words used to capture a vision or to reinforce old or new values. C) narratives based on true events. D) fictional stories. E) any objects, acts, events, qualities, or relations used to convey meaning. Ch 4 p. 94 (Table 4-1)

False

Metaphors are handed-down narratives of some wonderful event that are based on history but which have been embellished with fictional detail. Ch 4 p. 94 (Table 4-1)

True

Motivation can explain why some people work hard and others do not. Ch 4 p. 98

True

A limitation of financial ratios is the fact that they are based on accounting data. Ch 4 p. 105

D) organizational culture.

A pattern of behavior developed by an organization as it learns to cope with its problems of external adaptation and internal integration, and that has worked well enough to be considered valid and to be taught to new members as the correct way to perceive, think, and feel is called A) dysfunctional behavior. B) groupthink. C) behavior modification. D) organizational culture. E) internal audit effect Ch 4 p. 94

True

According to James Van Horne the functions of finance & accounting comprise three decisions: the investment decision, the financing decision, and the dividend decision. Ch 4 p. 103

True

Value chain analysis can enable a firm to better identify its own strengths and weaknesses especially as compared to competitors' value chain analyses and their own data over time. Ch 4 p. 113 (bottom of page)

(1) customer analysis, (2) selling products and services, (3) product and service planning, (4) pricing, (5) distribution, (6) marketing research, and (7) cost/benefit analysis

What are the seven basic functions of marketing? Ch 4 p. 100

C) Profitability

What category of ratios includes return on total assets and return on stockholders' equity? A) Leverage B) Activity C) Profitability D) Growth E) Liquidity Ch 4 p. 106 (Table 4-4)

A) Customer profiling

________ can reveal the demographic characteristics of an organization's customers. A) Customer profiling B) Test marketing C) Market development D) The vision statement E) Telemarketing Ch 4 p. 100

C) analyzing customers.

Staffing involves all of these activities EXCEPT A) recruiting employees. B) rewarding employees. C) analyzing customers. D) managing union relations. E) training and developing employees. Ch 4 p. 98

C) consolidating.

All of the following are basic activities of management EXCEPT A) staffing. B) planning. C) consolidating. D) organizing. E) motivating Ch 4 p. 96

False

Capacity decisions concern distances from raw materials to production sites to customers. Ch 4 p. 109

C) warehousing.

Distribution includes A) customer analysis. B) pricing. C) warehousing. D) advertising. E) test marketing. Ch 4 p. 102

False

The total assets turnover ratio is calculated by dividing sales by fixed assets Ch 4 p. 106 (Table 4-4)

False

Most producers today sell their goods directly to consumers. Ch 4 p. 102

B) Value Chain Analysis.

The process whereby a firm determines the costs associated with organizational activities from purchasing raw materials to manufacturing products to marketing those products is called A) The Resource-Based Approach. B) Value Chain Analysis. C) Strategic Cost Analysis. D) The Internal Factor Evaluation Matrix. E) Cost-Benefit Analysis Ch 4 p. 113

True

The purpose of organizing is to achieve coordinated effort by defining task and authority relationships. Ch 4 p. 97

False

The quantity or number of units of product that a firm must sell to break even is total fixed costs divided by (price per unit + variable costs per unit). Ch 4 p. 108

True

Constructing an Internal Factor Evaluation Matrix is a summary step when conducting an internal strategic-management audit. Ch 4 p. 116

True

Cultural products include values, beliefs, stories, and language Ch 4 p. 94 (Table 4-1)

False

Financial ratio analysis becomes less useful if one goes beyond the actual calculation and interpretation of each individual ratio. Ch 4 p. 104-105

False

Organizing is the cornerstone of effective strategy formulation. Ch 4 p. 96

C) customer analysis

Selling includes all of these marketing activities EXCEPT A) advertising. B) dealer relations. C) customer analysis. D) publicity. E) sales promotion Ch 4 p. 100

False

Test marketing is used more frequently by industrial companies than consumer goods companies. Ch 4 p. 101

True

The controlling function of management is especially important for effective strategy evaluation. Ch 4 p. 99

False

The controlling function of management is synonymous with strategy formulation Ch 4 p. 99

False

The Internal Factor Evaluation (IFE) Matrix should be developed on a multiple business unit basis in multidivisional firms. Ch 4 p. 118

True

There are seven basic functions of marketing: customer analysis, selling products and services, product and service planning, pricing, distribution, marketing research, and opportunity analysis. Ch 4 p. 100

B) Planning

What is the essential bridge between the present and the future that increases the likelihood of achieving desired results? A) Motivating B) Planning C) Controlling D) Staffing E) Organizing Ch 4 p. 96

True

A recent study reported that the stock price appreciation of technology companies in the lowest third of R&D spending have consistently outperformed companies in the highest third over 1-, 3-, 5-, and 10-year periods since 1977. Ch 4 p. 111

D) not easily substitutable.

A resource is valuable if it is rare, hard to imitate, or A) expensive. B) inexpensive. C) easily substitutable. D) not easily substitutable. E) inefficient. Ch 4 p. 93

D) ritual.

A standardized set of behaviors used to manage anxieties is called a A) folktale. B) rite. C) metaphor. D) ritual. E) value. Ch 4 p. 94 (Table 4-1)

True

Chief marketing officers now spend more than 50 percent of their budgets on technology to manage activities like online marketing and social media. Ch 4 p. 101

False

Financial ratios are not applicable to nonprofit organizations Ch 4 p. 103 (bottom of page)

True

Five major stakeholders that affect pricing decisions are consumers, governments, suppliers, distributors, and competitors. Ch 4 p. 101

True

For a resource to be valuable, it must be either rare, hard to imitate, or not easily substitutable. Ch 4 p. 93

E) "late follower."

For many firms a key decision with great bearing on Research and Development (R&D) spending is whether to be a "first mover" or a A) "first activator." B) "second mover." C) "average player." D) "tech leader." E) "late follower." Ch 4 p. 111

The four commonly-used approaches to determining R&D budget allocations are: 1) financing as many project proposals as possible; 2) using a percentage-of-sales method; 3) budgeting about the same amount competitors spend for R&D; and 4) deciding how many successful new products are needed and working backward to estimate the required R&D investment.

Four basic approaches exist to determine R&D budget allocations. What are these approaches? Ch 4 p. 111

True

Four common approaches to determine R&D budget allocations are: 1) finance as many project proposals as possible; 2) use a percentage-of-sales method; 3) budget for R&D about what competitors spend; or 4) decide how many successful new products are needed and work backwards to estimate the required R&D investment. Ch 4 p. 111

C) Use a percentage-of-costs method.

Which is NOT one of the four common approaches to determine R&D budget allocations? A) Finance as many project proposals as possible. B) Budget for R&D about what competitors spend. C) Use a percentage-of-costs method. D) Decide how many successful new products are needed and work backwards to estimate the required R&D investment. E) Use a percentage-of-sales method. Ch 4 p. 111

C) Organizing

Which management function includes breaking tasks into jobs, combining jobs to form departments, and delegating authority? A) Motivating B) Staffing C) Organizing D) Controlling E) Planning Ch 4 p. 97

B) Emotions

Which of the following are NOT mentioned as an example of cultural products? A) Rites B) Emotions C) Rituals D) Sagas E) Symbols Ch 4 p. 94

A) Planning

Which of the following does the text call an up-front investment in success? A) Planning B) Organizing C) Motivating D) Staffing E) Controlling Ch 4 p. 97 (top of page)

E) Does the firm have good liquidity?

Which of the following is NOT a key question that can reveal internal strengths and weaknesses regarding a firm's marketing function? A) Does the firm have an effective sales organization? B) Has the firm's market share been increasing? C) Are markets segmented effectively? D) Are the firm's products and services priced appropriately? E) Does the firm have good liquidity? Ch 4 p. 103 (Checklist of questions)

False

Technology ties all business functions together and provides the basis for all managerial decisions. Ch 4 p. 112 (It's Information ties all business...)

A) constructed for each autonomous division

The IFE Matrix should be ________ in multidivisional firms. A) constructed for each autonomous division B) all-inclusive C) constructed only for the major divisions D) developed before the EFE Matrix E) revised monthly Ch 4 p. 188

True

The Internal Factor Evaluation (IFE) Matrix should use a total of 20 internal factors. Ch 4 p. 116

A) pricing.

The Robinson-Patman Act affects a company's A) pricing. B) product/service planning. C) customer analysis. D) marketing research. E) distribution. Ch 4 p. 101

A) investment

The ________ decision is the allocation and reallocation of capital and resources to projects, products, assets, and divisions of an organization. A) investment B) dividend C) financing D) restructuring E) benchmark Ch 4 p. 104

True

The basic premise of the research-based view is that the mix, type, amount, and nature of a firm's internal resources should be considered first and foremost in devising strategies that can lead to sustainable competitive advantage. Ch 4 p. 93

True

The heart of an information system is a database containing the kinds of records and data important to managers. Ch 4 p. 112

True

The idea that paying dividends results in a higher stock price is a myth. Ch 4 p. 104 (listed in #4 on why dividends are paid out)

E) dividing a firm's operations into specific activities or business processes.

The initial step to implementing value chain analysis is A) attaching a cost to each discrete activity. B) establishing costs in terms of time. C) establishing costs in terms of money. D) converting the cost data into information by looking for competitive cost strengths and weaknesses. E) dividing a firm's operations into specific activities or business processes. Ch 4 p. 114

False

The management function of organizing is included in human resource management. Ch 4 p. 98

True

The only certain thing about the future of any organization is change. Ch 4 p. 96

True

The process of performing an internal audit, compared to the external audit, provides more opportunity for participants to understand how their jobs, departments and divisions fit into the whole organization. Ch 4 p. 92

True

The subtle, elusive and largely unconscious forces that shape the workplace are captured by the organizational culture. Ch 4 p. 94

C) organizational resources.

The three all-encompassing internal resource categories used in the resource-based view are physical resources, human resources, and A) financial resources. B) shareholder resources. C) organizational resources. D) non-renewable resources. E) technological resources Ch 4 p. 93

B) leverage ratio.

The times-interest-earned ratio would be classified as a(n) A) activity ratio. B) leverage ratio. C) profitability ratio. D) liquidity ratio. E) growth ratio. Ch 4 p. 106 (Table 4-4)

B) Liquidity

What category of ratios measures a firm's ability to meet its short-term obligations? A) Profitability B) Liquidity C) Leverage D) Activity E) Growth Ch 4 p. 106 (Table 4-4)

E) Growth

What category of ratios measures how effectively a firm can maintain its economic position in the growth of the economy and industry? A) Profitability B) Liquidity C) Leverage D) Revenue Growth E) Growth Ch 4 p. 106 (Table 4-4)

B) Saga

What is the term for a historical narrative describing the unique accomplishments of a group and its leaders? A) Rite B) Saga C) Story D) Myth E) Folktale Ch 4 p. 94 (Table 4-1)

D) Product and service planning

What marketing function includes test marketing? A) Selling products and services B) Pricing C) Customer analysis D) Product and service planning E) Distribution Ch 4 p. 101

E) Controlling

Which function of management includes all of those activities undertaken to ensure actual operations conform to planned operations? A) Planning B) Organizing C) Motivating D) Staffing E) Controlling Ch 4 p. 99

B) Organizing

Which function of management includes areas such as job design, job specifications, job analysis, and unity of command? A) Planning B) Organizing C) Motivating D) Staffing E) Controlling Ch 4 p. 96 (Table 4-3)

B) Organizing

Which function of management is concerned with span of control and chain of command? A) Planning B) Organizing C) Controlling D) Staffing E) Motivating Ch 4 p. 97

C) Listing key internal strengths and weaknesses

Which of the following is the first step in developing an IFE Matrix? A) Determining the organization's structure B) Summing the weighted scores for each variable C) Listing key internal strengths and weaknesses D) Identifying the organization's functions of business E) Assigning a weight to each factor Ch 4 p. 116 and Table 4-8

B) Motivating

Which of the following is the process of influencing people to accomplish specific objectives? A) Staffing B) Motivating C) Planning D) Controlling E) Organizing Ch 4 p. 98

C) Financing

Which of the three finance and accounting decisions involves determining the best capital structure for the firm? A) Investment B) Dividend C) Financing D) Capital budgeting E) Implementation Ch 4 p. 104

E) Times-interest-earned ratio

Which ratio is calculated by dividing profits before interest and taxes by total interest charges? A) Inventory turnover B) Fixed assets turnover C) Total assets turnover D) Debt-to-equity ratio E) Times-interest-earned ratio Ch 4 p. 106 (Table 4-4)

C) Average collection period

Which ratio would be considered an activity ratio? A) Debt-to-equity B) Net profit margin C) Average collection period D) Earnings per share E) Current ratio Ch 4 p. 106 (Table 4-4)

False

While interesting, organizational culture does not significantly affect business decisions. Ch 4 p. 95

C) Representative managers and employees from throughout the firm

Who should perform an internal audit? A) A private auditing firm B) The organization's accounting department C) Representative managers and employees from throughout the firm D) A small team of top-level managers E) The chief executive officer Ch 4 p. 92

C) Financial ratio analysis

________ exemplifies the complexity of relationships among the functional areas of business. A) Government auditing B) External auditing C) Financial ratio analysis D) Environmental scanning E) Distribution strategy Ch 4 p. 92

D) symbol.

Any object, act, event, quality, or relation used to convey meaning is known as a A) myth. B) rite. C) value. D) symbol. E) metaphor. Ch 4 p. 94 (Table 4-1)

False

At Google the culture is very rigid, while in contrast the culture at Proctor & Gamble is very informal. Ch 4 p. 94

True

Activity ratios measure how effectively a firm is using its resources. Ch 4 p. 106 (Table 4-4)

True

During the 2015 Super Bowl, a 30-second advertisement cost over $4 million. Ch 4 p. 100

The three basic functions of finance, according to James Van Horne, are the investment decision, the financing decision, and the dividend decision. The investment decision is the allocation and reallocation of capital and resources to projects, products, assets, and divisions of an organization. The financing decision determines the best capital structure for the firm and includes examining various methods by which the firm can raise capital. Dividend decisions concern issues such as the percentage of earnings paid to stockholders, the stability of dividends paid over time and the repurchase of stock.

According to James Van Horne, what are the three decisions that comprise the functions of finance? Describe each function. Ch 4 p. 103

The five basic functions or decision areas in production are: 1) Process: These decisions include choice of technology, facility layout, process flow analysis, facility location, line balancing, process control, and transportation analysis. Distances from raw materials to production sites to customers are a major consideration; 2) Capacity: These decisions include forecasting, facilities planning, aggregate planning, scheduling, capacity planning, and queuing analysis. Capacity utilization is a major consideration; 3) Inventory: These decisions involve managing the level of raw materials, work-in-process, and finished goods, especially considering what to order, when to order, how much to order, and materials handling; 4) Workforce: These decisions involve managing the skilled, unskilled, clerical, and managerial employees by caring for job design, work measurement, job enrichment, work standards, and motivation techniques; and 5) Quality: These decisions are aimed at ensuring that high-quality goods and services are produced by caring for quality control, sampling, testing, quality assurance, and cost control.

According to Roger Schroeder, there are five basic functions or decision areas in production. Describe these five functions. Ch 4 p. 109 (Table 4-6)

A) Capacity

According to Roger Schroeder, which basic function within production and operations deals with aggregate planning and scheduling? A) Capacity B) Inventory C) Workforce D) Process E) Quality Ch 4 p. 109 Table 4-6

True

According to William King, a task force of managers from different units of the organization should be charged with determining the 20 most important strengths and weaknesses that should influence the future of the organization. Ch 4 p. 92

A) value chain analysis.

All of the following are basic functions of marketing EXCEPT A) value chain analysis. B) customer analysis. C) product and service planning. D) pricing. E) distribution. Ch 4 p. 100

False

Allocating resources is one of the five basic activities (functions) performed by managers Ch 4 p. 96

False

Although a useful step in the strategic management process, value chain analysis does little to help a firm monitor whether its prices and costs are competitive. Ch 4 p. 114

E) all of the above

An effective information management system ________ information in such a way that it answers important operating and strategic questions. A) collects B) codes C) stores D) synthesizes E) all of the above Ch 4 p. 112

True

An organization's culture compares to an individual's personality in the sense that no two organizations have the same culture and no two individuals have the same personality. Ch 4 p. 94

Cultural products are levers that strategists can use to influence and direct strategy formulation, implementation, and evaluation activities. Students can list any six of the following: rites, ceremonies, rituals, myths, sagas, legends, stories, folktales, symbols, language, metaphors, values, beliefs, and heroes/heroines

Define cultural products and give six examples of them Ch 4 p. 94 (Table 4-1)

The controlling function of management includes all of those activities undertaken to ensure that actual operations conform to planned operations, and is particularly important for effective strategy evaluation. Controlling consists of four basic steps: 1) establishing performance standards; 2) measuring individual and organizational performance; 3) comparing actual performance to planned performance standards; and 4) taking corrective actions.

Describe the controlling function of management. Include the four basic steps that comprise this function in your description. Ch 4 p. 99

Recent research reveals that the most effective marketing methods for firms with fewer than 500 employees is the company website (50 percent), Facebook and/or other social media sites such as Twitter (27 percent), and yellow pages and other (23 percent). Advertising on television is on a downward spiral, according to Time Warner, Discovery Communications, and CoEssayast. Heavy marketers, such as Allstate and Mondelez International, now openly speak about shifting TV ad dollars to digital platforms. Chief marketing officers (CMOs), such as Eduardo Conrado at Motorola, now spend more than 50 percent of the budget on technology to manage activities such as online marketing and social media. Marketing is becoming technical, with software to track and target customers and manage customer relationships, predict consumer behavior, run online storefronts, analyze social media, manage websites, and craft targeted advertisements. With the proliferation of e-books, marketers are experimenting more and more with advertising to consumers as they read e-books.

Discuss how technology has affected advertising and other marketing activities Ch 4 p. 100-101

The first step is to list 20 internal factors, including strengths and weaknesses, using percentages, ratios and comparative numbers. The second step is to assign a weight that ranges from 0.00 (not important) to 1.0 (all-important) to each factor based on its relative importance to being successful in the firm's industry. The third step is to assign a 1 to 4 rating to each factor to indicate whether that factor represents a major weakness, a minor weakness, a major strength, or a minor strength. Next, multiply each factor's weight by its rating to determine a weighted score for each variable. Finally, sum the weighted scores for each variable to determine the total weighted score for the organization.

Discuss the five steps involved in performing an Internal Factor Evaluation (IFE) Matrix. Ch 4 p. 116

There are some limitations of financial ratio analysis. The first is that 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. Second, seasonal factors can influence comparative ratios. A third limitation is that departures from industry averages do not always indicate a firm is doing especially well or badly.

Discuss the limitations of financial ratio analysis Ch 4 p. 105

The analysis should be conducted on three separate fronts: 1. How has each ratio changed over time? This information provides a means of evaluating historical trends. It is important to note whether each ratio has been increasing, decreasing, or nearly constant historically. For example, a 10 percent profit margin could be bad if the trend has been down 20 percent each of the last three years. But a 10 percent profit margin could be excellent if the trend has been up. Therefore, calculate the percentage change in each ratio from one year to the next to assess historical financial performance on that dimension. Identify and examine large percent changes in a financial ratio from one year to the next. 2. How does each ratio compare to industry norms? A firm's inventory turnover ratio may appear impressive at first glance, but may pale when compared to industry standards or norms. Industries can differ dramatically on certain ratios. For example, grocery companies such as Kroger have a high inventory turnover whereas automobile dealerships have a lower turnover. Therefore, comparison of a firm's ratios within its particular industry can be essential in determining strength/weakness. 3. How does each ratio compare with key competitors? Oftentimes competition is more intense between several competitors in a given industry or location than across all rival firms in the industry. When this is true, financial ratio analysis should include comparison to those key competitors. For example, if a firm's profitability ratio is trending up over time and compares favorably to the industry average, but it is trending down relative to its leading competitor, there may be reason for concern.

Discuss the three separate fronts on which an effective financial ratio analysis is conducted Ch 4 p. 104-105

False

Distribution becomes especially important when a firm is striving to implement a product development or diversification. Ch 4 p. 102

True

Dividend decisions concern issues such as the percentage of earnings paid to stockholders, the stability of dividends paid over time, and the repurchase of stock. Ch 4 p. 104

The resource-based view (RBV) approach to competitive advantage contends that internal resources are more important than external factors for a firm in achieving and sustaining competitive advantage, in contrast to the I/O theory. According to the RBV, organizational performance is determined by physical resources, human resources, and organizational resources. RBV theory asserts that resources are actually what help a firm exploit opportunities and neutralize threats. The theory also asserts that in order to maintain a competitive advantage, a resource must either be rare, not easily substitutable, or hard to imitate.

Explain the resource-based view and its relation to strategic management. Ch 4 p. 93

The five basic functions of management are planning, organizing, motivating, staffing, and controlling. Planning consists of all those managerial activities related to preparing for the future, such as forecasting, establishing objectives, devising strategies, and developing policies. Organizing includes all those managerial activities that result in a structure of task and authority relationships, such as organizational design, job specialization, job descriptions, span of control, coordination, job design, and job analysis. Motivating involves efforts directed toward shaping human behavior. Specific topics include leadership, communication, work groups, behavior modification, delegation of authority, job enrichment, job satisfaction, needs fulfillment, organizational change, employee morale, and managerial morale. Staffing refers to human resource (HR) activities, such as wage and salary administration, employee benefits, interviewing, hiring, firing, training, management development, employee safety, equal employment opportunity, and union relations. Controlling refers to all those managerial activities directed toward ensuring that actual results are consistent with planned results. Key areas of concern include quality control, financial control, sales control, inventory control, expense control, analysis of variances, rewards, and sanctions.

Identify the five basic functions of management, and describe each function. Ch 4 p. 96-99

True

In the area of marketing, a cost/benefit analysis is an appraisal of the costs, benefits, and risks associated with marketing decisions. Ch 4 p. 102 (bottom of page)

True

Increased efficiency, quality, productivity, and job satisfaction can come from cross-training workers. Ch 4 p. 110

False

Leverage ratios measure a firm's ability to meet maturing short-term obligations. Ch 4 p. 106 (Table 4-4)

A) values.

Life-directing attitudes that serve as behavioral guidelines are called A) values. B) rites. C) beliefs. D) metaphors. E) legends. Ch 4 p. 94 (Table 4-1)

True

Linkages between a firm's culture and strategies often determine success. Ch 4 p. 95

True

Marketing research is the systematic gathering, recording and analyzing, of data about problems relating to the marketing of goods and services. Ch 4 p. 102

False

Opportunities are a firm's distinctive competencies that cannot be easily matched or imitated by competitors Ch 4 p. 92 (Strengths... not Opportunities)

A) employee training

Organizational resources include all of the following EXCEPT A) employee training. B) firm structure. C) planning processes. D) information systems. E) copyrights. Ch 4 p. 93

A) marketing.

Pricing is one of the basic functions of A) marketing. B) finance/accounting. C) management information systems. D) production/operations. E) research and development. Ch 4 p. 100

False

Proponents of the resource-based view argue that external factors are more important than internal factors for a firm in achieving and sustaining competitive advantage. Ch 4 p. 93

False

Research and Development (R&D) Management is focused on managing inputs, transformations, and outputs that vary across industries and markets. Ch 4 p. 111

False

Successful strategy formulation generally rests upon the ability of an organization to sell some product or service. Ch 4

E) all of the above

Synergy A) is the 2 + 2 = 5 effect. B) can result in powerful competitive advantages. C) can be developed by an organization through planning. D) exists when everyone pulls together as a team that knows what it wants to achieve. E) all of the above Ch 4 p. 97

E) All of the above

________ is a commonly used approach to determine R&D budget allocations. A) Financing as many project proposals as possible B) Using a percentage-of-sales method C) Budgeting for R&D about what competitors spend D) Deciding how many successful new products are needed and working backward to estimate the required R&D investment E) All of the above Ch 4 p. 111 (first sentence under "Internal and External Research and Development")

D) Production and operations

________ management deals with inputs, transformations, and outputs that vary across industries and markets. A) Marketing B) Financial C) Research and development D) Production and operations E) Information systems Ch 4 p. 109

C) Information

________ ties all business functions together and provides the basis for all managerial decisions. A) Management B) Marketing C) Information D) Technology E) Workforce Ch 4 p. 112 (first sentence under "Management Info Systems")