Capstone
Strategy implementation is
Answers B and D are both correct: Managing forces during the action Focuses on efficiency
Which of these strategies is effective when the number of suppliers is small and the number of competitors is large?
backward integration
Bribery involves
bestowing a gift to influence the recipient's conduct.
____ maintains a presence in all segments of the market; it gains a competitive advantage by keeping R&D, production, and material costs to a minimum, enabling the company to compete on the basis of price.
broad cost leader
____ maintains a presence in every segment of the market; it gains a competitive advantage by distinguishing products with an excellent design, high awareness and easy accessibility.
broad differentiation
What is NOT one of the basic ways a divisional structure can be organized?
by cost
What refers to a strategy of seeking ownership of, or increased control over a firm's competitors?
horizontal integration
An effective mission statement should do all of the following EXCEPT
include monetary amounts, numbers, percentages and ratios
Whenever new firms can easily enter a particular industry, the intensity of competitiveness among firms tends to
increase
Mergers and acquisitions are created for all the following reasons EXCEPT to:
increase the number of employees
All of the following are things that many cultures around the world value more than the competitiveness that is important in the USA EXCEPT
individualism
Simply having a code of ethics
is insufficient to guarantee that employees behave in an ethical manner
Retrenchment would be an effective strategy when an organization
is plagued by inefficiency, low profitability, poor employee morale and pressure from stockholders to improve performance.
An effective mission statement does all of the following EXCEPT
it is static in orientation
_____ 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.
joint ventures
All of the following are symptoms of an ineffective organizational structure EXCEPT
less levels of management
The recommended length of an effective mission statement is _____ words.
less than 250
The times-interest-earned ratio would be classified as a(n)
leverage ratio
Formal statements of organizational philosophy, charters, creeds, materials used for recruitment and selection, and socialization help an organization
link culture to strategy
Websites that sell products directly to consumers are examples of which type of strategy?
forward integration
Which organizational structure is the most widely used?
functional
What type of organizational structure promotes specialization of labor and allows rapid decision making?
functional structure
______includes designing, producing, and marketing products with global needs in mind, instead of considering individual countries alone
global strategy
_____ is a process of doing business worldwide, so strategic decisions are made based on global profitability of the firm rather than just domestic considerations
globalization
According to the text, the first social responsibility of any business is to
make enough profit to cover the costs of the future, because if this is not achieved then no other social responsibility can be met
When a domestic company first begins to export to India, it is an example of
market development
Which strategy seeks to increase market share for present products or services in present markets through greater marketing efforts?
market penetration
Subdividing a market into distinct subsets of customers according to their needs and buying habits is known as
market segmentation
What is the most complex form of organizational structure?
matrix
Organizations that conduct business operations across national borders are called
multinational corporations
focuses on the High technology segments (High End, Performance, and Size); it gains competitive advantage by distinguishing products with an excellent design, high awareness, easy accessibility and new products.
niche differentiation
Specific results an organization seeks to achieve in pursuing its basic mission are
objectives
The ideal length of a vision statement is
one sentence
The three all-encompassing internal resource categories used in the resource-based view are physical resources, human resources, and
organizational resources
A divisional structure by geographic area is most appropriate when:
organizations have similar branch facilities located in widely dispersed areas.
Which variable would be considered part of the "product" element of the marketing mix?
packaging
What entails developing schematic representations that reflect how your products or services compare to competitors' on dimensions most important to success in the industry?
perceptual mapping
Identifying and evaluating key social, political, economic, technological and competitive trends and events comprise
performing an external audit
Which of the following variables is NOT directly affected by market segmentation (marketing mix variables)?
process
In order to appeal to its diverse stakeholders, an effective mission statement should be
reconciliatory
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?
reengineering
What action involves reconfiguring or redesigning work, jobs, and processes for the purpose of improving cost, quality, service, and speed?
reengineering
Which of the followings is also called process management, process innovation, or process redesign?
reengineering
Strategy formulation
requires coordination among a few individuals.
All of the following are ways and means for altering an organization's culture EXCEPT
retrenchment
Revlon closing its manufacturing plant in France and laying off 5 percent of its workforce is an example of
retrenchment
According to Porter, what is usually the most powerful of the five competitive forces?
rivalry among competing firms
Which variable would be considered part of the "place" element of the marketing mix?
sales territory
Which component of a mission statement addresses the firm's distinctive competence or major competitive advantage?
self concept
Which organizational structure has the disadvantage of ambiguous roles for senior executives
strategic business unit
Which of the following focuses in effectiveness?
strategy formulation
______ is the extent that an organization's operations and actions protect, mend, and preserve rather than harm or destroy the natural environment.
sustainability
Market segmentation psychographic variables include factors such as social class, personality, region and user rate'. This statement is:
False. Psychographic only includes social class and personality.
_____ 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
ISO 14000 / 14001
What is the first step in designing an EFE Matrix?
Identifying key external factors in the industry
The functions of finance/accounting includes three decisions, which are:
Investment, Financing, dividend
Which of the following is NOT a pitfall an organization should avoid in strategic planning?
Involving all managers rather than delegating planning to a "planner"
Why is market segmentation an important variable in the strategy-implementation process?
It directly affects marketing mix variables.
Which of these is true about strategy implementation?
It is primarily an operational process.
Why do some firms not do strategic planning?
Lack of knowledge in strategic planning and poor reward structures for planning.
Which of the following is the first step in developing an IFE Matrix?
Listing key internal strengths and weaknesses
Why do changes in company strategy often require changes in the way an organization is structured?
Structure dictates how goals and objectives will be established.
Which of the following is NOT true regarding stock issuances?
Their effect on stock price is a concern. They can require a company to share future earnings with all new shareholders. Dilution of ownership is a special concern.
Which of the following is NOT given as an example of a decision that may require finance/accounting policies?
To be a price leader or a price follower
Which of the following is NOT a reason given for poor or no strategic planning in an organization?
Trust of management makes it unnecessary
Integration strategies are sometimes collectively referred to as which of the following categories of strategies?
Vertical integration
What question is asked in conjunction with the philosophy component of a mission statement?
What are the basic beliefs, values, aspirations, and ethical priorities of the firm?
A good mission statement has
a customer orientation
The potential for creative growth in an organization can be limited by
a mission statement that is too specific
What is competitive intelligence (CI)?
a systematic and ethical process for gathering and analyzing information about the competition's activities and general business trends to further a business's own goals
What kind of strategy is retrenchment?
a turnaround strategy
Which of the following sectors of the economy would be most impacted by technological developments?
aeronautics
A divisional structure by product is most effective when
all of the above
Changes in which of the following can significantly affect firms?
all of the above: patent laws, antitrust legislation, tax rates, lobbying activities
Why is market segmentation an important variable in strategy implementation?
All of the above (It allows a small firm to compete successfully with a large firm., It allows a firm to operate with limited resources., Mass production, mass distribution, and mass advertising are not always required., Market segmentation decisions directly affect marketing mix variables.)
Which of the following is a management issue central to strategy implementation?
All of the above (devising policies, revising reward and incentive plans, minimizing resistance to change, developing an effective human resources function)
Which variable would be considered part of the "promotion" element of the marketing mix?
All of these answers are correct (Publicity, personal selling, advertising, sales promotion)
Which variable would be considered part of the "product" element of the marketing mix?
All of these answers are correct (Quality, Packaging, Brand name, Warranty)
What is NOT one of Michael Porter's five competitive forces?
Bargaining power of unions
Which of the following is a potential advantage of conducting international operations?
Competitors in foreign markets may not exist, or competition may be less intense than in domestic markets
____ centers on the High End, Traditional and Low End segments; it gains competitive advantage by keeping R&D costs, production costs and material costs to a minimum, enabling it to compete on the basis of price.
Cost Leader with Product Lifecycle Focus
Which is generally considered to be the first step in strategic planning?
Developing a vision statement
concentrates on the high end, traditional, and low end segments; it gains competitive advantage with excellent design, high awareness, easy accessibility, and new products.
Differentiation with Product Lifecycle Focus
What is the most widely used technique for determining the best combination of debt and stock (as per the textbook)?
Earnings per share/earnings before interest and taxes analysis
Preserving the environment should be a permanent part of doing business for which of the following reasons?
More lenders are examining the environmental liabilities of businesses seeking loans
_____ concentrates primarily on the Traditional and Low end segments of the market; it gains a competitive advantage by keeping R&D costs, production costs and material costs to a minimum, enabling the company to compete on the basis of price.
Niche Cost Leader
The primary benefit sought from restructuring is
cost reduction
Restructuring is also referred to as
delayering
Which strategy should be implemented when a division is responsible for an organization's overall poor performance?
divestiture
Medium-sized firms tend to use which type of structure?
divisional
All of the following are potential disadvantages to initiating, continuing, or expanding business across national borders EXCEPT
foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets
All of the following are potential advantages to initiating, continuing, and/or expanding international operations EXCEPT
foreign operations could be seized by nationalistic factions
A benefit of using projected balance sheets and income statements is that
the impact of various implementation decisions can be forecasted
Financial ratios are used to compare a firm's performance over different time periods, to compare the firm's performance to industry averages, and to compare a firm's performance with
the performance of competitors
Americans place an exceptionally high priority on ________ whereas many foreigners place more worth on ________
time;relationships
Distribution includes
warehousing
_____ refers to policies that require employees to report any unethical violations they discover or see in the firm.
whistle blowing
Which question(s) are answered in an effective mission statement?
All of the above (Is the firm committed to growth and financial soundness? Are employees a valuable asset of the firm? Geographically, where does the firm compete? Who are the firm's customers?)
Which of the following is part of the strategic management model?
All of the above (Measure and evaluate performance. Develop mission and vision statements. Establish long-term objectives. Implement strategies.)
What are the pitfalls in strategic planning?
All of the above (Using strategic planning to gain control over decisions and resources. Doing strategic planning only to satisfy accreditation or regulatory requirements. Too hastily moving from mission development to strategy formulation)
Which group would be classified as stakeholders?
All of the above (governments, creditors, suppliers, and employees)
Effective mission statements can vary in
All of the above (length, content, format, and specificity)
Which of the following is/are a benefit of strategic planning to a firm?
All of the above: enhanced communication, deeper understanding, greater commitment, final results
A mission statement should:
all of these answers are correct: a declaration of an organization's "reason for being." answers the pivotal question "What is our business?" essential for effectively establishing objectives and formulating strategies
The purpose of a mission statement is to declare all of these EXCEPT
an annual financial plan
Staffing involves all of these activities EXCEPT
analyzing customers
______ is NOT part of an external audit.
analyzing financial ratios
Which ratio would be considered an activity ratio?
average collection period
A systematic and ethical process for gathering and analyzing information about the competition's activities and general trends to further a business' own goals is called
competitive intelligence
All of the following are basic duties of management EXCEPT
consolidating
Long-term objectives should be all of the following EXCEPT
continually changing
Which function of management includes all of those activities undertaken to ensure actual operations conform to planned operations?
controlling
The following excerpt from a mission statement illustrates which of the nine essential components of a mission statement? "We believe our first responsibility is to the doctors, nurses, patients, mothers, and all others who use our products and services."
customers
In low-earning periods, too much ________ in the capital structure of an organization can endanger stockholders' return and jeopardize company survival.
debt
A firm's strengths that cannot be easily matched or imitated by competitors are called
distinctive competencies
The lingering high underemployment rate in the U.S. is an example of a(n) ________ force affecting business.
economic
Which of the three finance and accounting decisions concerns determining the best capital structure for the firm and includes examining various methods by which the firm can raise capital?
financing
What are educated assumptions about future trends and events called?
forecasts
During what stage of strategic management are a firm's specific internal strengths and weaknesses determined?
formulation
In which phase of strategic management are long-term objectives especially important?
formulation
What category of ratios measures how effectively a firm can maintain its economic position in the growth of the economy and industry?
growth
All stakeholders:
have claims and concerns about an organization, but these claims and concerns vary
What level of bargaining power do consumers have when the products being purchased are standard or undifferentiated?
high
According to I/O theorists, which of the following contributes LEAST to firm's performance?
internal resources
The ________ decision is the allocation and reallocation of capital and resources to projects, products, assets, and divisions of an organization.
investment
Intensity of competition ________ in lower-return industries
is highest
Projected financial analysis is an important strategy-implementation technique because
it allows an organization to examine the expected results of various actions and approaches.
Selling all of a company's assets, in parts, for their tangible worth is called
liquidation
What category of ratios measures a firm's ability to meet maturing short-term obligations?
liquidity
A ____ statement needs to be broad to reconcile differences effectively among, and appeal to, an organization's diverse stakeholders.
mission
The I/O approach to competitive advantage advocates that external factors are ________ internal factors in a firm achieving competitive advantage.
more important than
Which of the following is the process of influencing people to accomplish specific objectives?
motivating
Empirical indicators of resources are: being rare, hard to imitate, or
not easily substitutable
Which function of management includes areas such as job design, job specifications, job analysis, and unity of command?
organizing
Which management function includes breaking tasks into jobs, combining jobs to form departments, and delegating authority?
organizing
Which component of a mission statement addresses the basic beliefs, values, aspirations, and ethical priorities of the firm?
philosophy
What are guides to decision making called?
policies
When an industry relies heavily on government contracts, which forecasts can be the most important part of an external audit?
political
Which strategy generally entails large research and development expenditures?
product development
_____ management deals with inputs, transformations, and outputs that vary across industries and markets.
production and operations
What category of ratios includes return on total assets and return on stockholders' equity?
profitability
What is a central strategy-implementation technique that allows an organization to examine the expected results of various actions and approaches?
projected financial statement analysis
Effective and carefully planned mission statements
stand the test of time
What becomes a more attractive financing technique when cost of capital is high (times of high stock prices)?
stock issuance
What can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives?
strategic management
What are the means by which long-term objectives will be achieved?
strategies
Which of the following is NOT one of the nine recommended components of a mission statement?
strategies
An important activity in ________ is taking corrective action
strategy evaluation
What step in the strategic development process involves mobilizing employees and managers to put strategies into action?
strategy implementation
_______ is NOT a strategy-implementation activity.
taking corrective actions
The Balanced Scorecard measures performance according to each of the following dimensions EXCEPT:
technology advancements
In general, what happens to American goods in overseas markets when there is a strong dollar?
they are more expensive
Which ratio is calculated by dividing profits before interest and taxes by total interest charges?
times interest earned ratio
FedEx entering the computer repair business offering major corporations overnight computer repair is an example of
unrelated diversification
All of these are pitfalls an organization should avoid in strategic planning EXCEPT
using plans as a standard for measuring performance
All of the following are basic functions of marketing EXCEPT
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
value chain analysis
Which basic question should the vision statement answer?
what do we want to become?
Backward integration is effective in all of these cases EXCEPT
when the advantages of stable prices are not important