Direccionamiento estrategico
What is the range for a firm's total weighted score in an External Factor Evaluation Matrix?
1 to 4
Business Week reports that firms using mission statements have __________ percent higher return on certain financial measures than those without such statements.
30
According to recent studies, what percent of companies have used a mission statement sometime in the past five years?
90%
__________ is not part of an external audit.
Analyzing financial ratios
The vision and mission statement can often be found
Annual reports
Learning from the partner is a major reason why ______ firms enter into cooperative agreements.
Asian
The process of developing a vision and mission statement includes which of these as the first activity?
Ask managers to read selected articles about mission statements.
If suppliers are unreliable or too costly, which of these strategies may be appropriate?
Backward integration
What is not one of Michael Porter's five competitive forces?
Bargaining power of unions
Which statement about business intelligence is least accurate?
Business intelligence is not equal to espionage.
One difference between CPM and EFE is that
CPM includes both internal and external issues.
Who is the largest exporter to the United States?
China
In 2004, which country had the most foreign investment in Russia?
Cyprus
What is the first step in the comprehensive strategic-management model?
Developing vision and mission statements
Which of the following is not a characteristic that describes the most competitive companies in America?
Divestiture is essential to growth
Who is referred to as "the father of modern management?"
Drucker
Whereas the mission statement answers the question "What do we want to become?," the vision statement answers the question "What is our business?"
FALSE
A firm's philosophy in a mission addresses the question, "What is the firm's distinctive competence?"
False
A mission statement is a declaration of an organization's financial status.
False
A mission statement should be broad enough to reconcile differences among an organizations various stakeholders.
False
According to Business Week, there are less than 500 corporate spies now actively engaged in intelligence activities.
False
According to Campbell and Yeung, an organization's vision is associated with behavior and with the present.
False
According to Peter Drucker, asking the question "What is our business?" is synonymous with asking the question "What is our vision?"
False
According to a survey completed in 2005, Proctor & Gamble scored very low in corporate responsibility.
False
According to the Nobel Laureate Milton Friedman, organizations have tremendous social obligations.
False
According to the Wall Street Journal, the political bureaucracy in Russia has been able to stimulate economic progress, free enterprise, and entrepreneurship.
False
Although it is important for companies to have a clearly defined mission statement, research has shown that less than 50% of all companies have used a mission statement in the previous five years.
False
An external audit focuses on identifying and evaluating trends and events within the control of management.
False
An increase in interest rates is directly related to an increase in discretionary income and an increase in the demand for discretionary goods.
False
Bargaining power of consumers is usually the most powerful of Porter's five competitive forces.
False
Economic factors do not have much impact on the attractiveness of strategies.
False
Environmental changes should not change a mission statement.
False
Five major categories of external variables are: (1) economic forces, (2) social and cultural forces, (3) political, governmental and legal forces, (4) technological forces and (5) demographic forces.
False
Forward integration is used by firms to gain control or ownership of suppliers.
False
Freund argues that key external factors must not be hierarchical.
False
If an organization chooses to have both a mission and a vision, the mission statement should be established first.
False
In Europe, Germany has experienced the greatest annual growth rate in consumer purchases over the Internet.
False
In most cases, several paragraphs are required to effectively state a mission statement.
False
In multidivisional organizations, each division should develop a mission statement independent of the parent company.
False
In the United States, the population has been moving from the south and west to the Northeast and Midwest.
False
Individual sales over the Internet greatly exceed business-to-business sales over the Internet.
False
Internal opportunities can be represented by major competitors' weaknesses.
False
It is generally a good idea to use the mission statement as a guide when completing an external and internal analysis.
False
Learning from the partner is a major reason why U.S. firms enter into cooperative agreements.
False
Linear regression is a popular technique for qualitative forecasts.
False
Linear regression is based on the assumption that the future will be different from the past.
False
Market commonality is the extent to which the type and amount of a firm's internal resources are comparable to a rival.
False
Motor vehicle firms in the United States are vulnerable when the value of the dollar falls.
False
Political, governmental, and legal factors are considered key threats for most small and large organizations.
False
Recent consumption trends in the United States indicate that wine consumption is increasing at 5% while beer consumption is increasing at 10%.
False
Research findings suggest that a greater percentage of a firm's profitability can be explained by the industry than can be explained by the firm's internal factors.
False
Social policy should be reaffirmed or changed during strategy implementation.
False
The aim of an external audit is to develop an exhaustive list of every possible factor that could influence the business.
False
The cost of living in Boston is greater than the cost of living in New York City.
False
The critical success factors in a Competitive Profile Matrix are often the same as those in an EFE Matrix.
False
The economic standard of living varies little between cities and countries.
False
The first step for using Porter's Five-Forces Model is to evaluate the relative strength of each competitive force.
False
The most important time for a company to develop a mission and vision statement is when the company is experiencing financial difficulty.
False
When developing a mission statement, it is usually advisable to involve as few managers as possible.
False
Within the European Union (EU), tax rates have been standardized to end competitive tax breaks among member countries.
False
In 2005, which of the following companies was rated highest for social responsibility?
Fannie Mae
What are educated assumptions about future trends and events?
Forecasts
Which country voted "no" to the European Union's proposed constitution in mid 2005?
France
According to the comprehensive strategic-management model, which step needs to be completed immediately following the establishment of long- term objectives?
Generating, evaluating, and selecting strategies
Which of the following is a process of worldwide integration of strategy formulation, implementation and evaluation activities?
Globalization
Which European country has the highest growth rate in consumer purchases over the internet?
Greece
Which minority group is predicted to be the largest by 2021?
Hispanics
What is the first step in designing an EFE Matrix?
Identifying key external factors in the industry
According to I/O theorists, which of the following contributes least to firm performance?
Internal resources
An effective mission statement is all of the following except:
It is static in orientation.
Who are the world's longest-living people?
Japanese.
What are assembly plants on the Mexican side of the border called?
Maquiladoras
According to Campbell and Yeung, what is/are most likely associated with behavior and the present.
Mission
What is needed before people can focus on specific strategy formulation activities when developing a mission statement?
Negotiation, Compromise, Eventual agreement
In 2004, which company had the dominant market share in the beverages industry?
PepsiCo
Which component of a mission statement addresses the basic beliefs, values, aspirations, and ethical priorities of the firm?
Philosophy
According to Porter, what is usually the most powerful of the five competitive forces?
Rivalry among competing firms
Which component of a mission statement addresses the firm's distinctive competence or major competitive advantage?
Self-concept
Which of the following dimensions are not recommended aspects of a mission statement?
Strategies
Attracting customers is a major reason for developing a mission statement.
TRUE
In order to motivate a workforce effectively, both profit and vision are needed.
TRUE
It is predicted that, by 2025, over 18% of the population in the United States will be over 65 years old.
TRUE
What is likely to happen if a mission or vision statement is implemented during troubled times for a firm?
The firm will experience a reverse in the decline of profitability.
___________ is not a basic mission of a competitive intelligence program.
To identify industry executives who could be hired by the firm
Which city has the highest cost of living?
Tokyo
"Innovate or evaporate; particularly in technology-driven businesses, nothing quite recedes like success," is a characteristic given that describes the most competitive companies in America.
True
38. According to Vern McGinnis, to be effective, all a mission statement need to do is define what the organization is and what the organization aspired to be.
True
A characteristic that describes the most competitive companies in America is "whether it's broke or not, fix it—make it better; not just products, but the whole company if necessary."
True
A declaration of an organization's "reason for being" is the mission statement.
True
A firms concern for employees in a mission addresses the question, "Is the firm responsive to social, community, and environmental concerns?"
True
A global strategy seeks to meet the needs of customers worldwide with the lowest cost at the highest value.
True
A mission statement can sometimes be called a statement of philosophy.
True
A mission statement, sometimes called a creed statement, can be defined as an "enduring statement of purpose that distinguishes one organization from other similar enterprises."
True
A sense of shared expectations among all levels and generations of employees is promoted with a mission statement.
True
A well-conceived mission statement is the cornerstone of effective strategic management.
True
According to Campbell and Yeung, the process of developing a mission statement should create an "emotional bond" and "sense of mission" between the organization and its employees.
True
According to King and Cleland, carefully developed and written mission statements ensure unanimity of purpose within the organization.
True
According to Michael Porter, five competitive forces create vital opportunities and threats to organizations: (1) new entrants, (2) substitute products or services, (3) bargaining power of suppliers, (4) bargaining power of buyers, and (5) rivalry among existing firms.
True
According to Peter Drucker, developing a clear business vision and mission is the first responsibility of strategists.
True
An economic trend in America is the increasing numbers of two-income households.
True
An effective mission statement generates the impression a firm is successful, has direction, and is worthy of time, support and investment.
True
As many managers and employees as possible should be involved in the process of performing an external audit.
True
Both a Competitive Profile Matrix and an EFE Matrix have the same meaning in the weights, ratings and total weighted scores.
True
Carefully prepared statements of vision and mission are widely recognized as the first step in strategic management.
True
China is the world's fastest-growing economy.
True
During the strategy-implementation process, social policy should be set and administered.
True
External audits attempt to identify key variables that offer actionable responses.
True
Good mission statements identify the utility of a firm's products to its customers.
True
Hispanics are expected to become a larger minority group in the United States than African Americans by 2021.
True
Hong Kong serves as the gateway to China.
True
In 2003, China replaced Mexico as the largest exporter to the United States.
True
In 2005, the Yen rose to a five-year high against the dollar.
True
In practice, critical technology decisions are too often delegated to lower organizational levels or are made without an understanding of their strategic implications.
True
Individuals who own stock in a corporation are considered stakeholders.
True
Industry analysis is also referred to as external strategic management audit.
True
Laser eye surgery would be considered a substitute product for eyeglasses and contact lenses.
True
Mission statements are sometimes difficult to derive because top management may disagree over company objectives.
True
Mission statements provide managers with a unit of direction that transcends individual, parochial and transitory needs by promoting a sense of shared expectations among all levels and generations of employees.
True
Mission statements should be stated with high level of precision.
True
Political forecasts can be the most important part of an external audit for firms that depend heavily on government contracts.
True
Precision might stifle creativity in the formulation of an acceptable mission or purpose.
True
Quantitative forecasts become less accurate as historical relationships become less stable.
True
Significant barriers to entry are not always sufficient to keep some new firms from entering industries with higher-quality products, lower prices and substantial marketing resources.
True
Stakeholders both affect and are affected by an organization's strategic decisions.
True
The bargaining power of consumers can be the most important force impacting competitive advantage.
True
The cost of living in London is greater than the cost of living in New York City.
True
The foundation for development of a comprehensive mission statement is provided by a clear vision.
True
The relative attention an organization will devote to meeting the claims of various stakeholders is indicated in a good mission statement.
True
To perform an external audit, a company first must gather competitive intelligence and information about social, cultural, demographic, environmental, economic, political, legal, governmental and technological trends.
True
Without reasonable assumptions, the strategy-formulation process could not proceed effectively.
True
The Internet is changing the very nature of many industries by altering product life cycles and changing the historical trade-off between production standardization and flexibility.
Trueº
Which of these examples of a mission statement's focus area is not effective?
Universal Studios focuses on entertainment rather than movies.
Which statement should be created first and foremost?
Vision
The vision statement answers which question?
What do we want to become?
Which of these basic questions should a vision statement answer?
What do we want to become?
The mission statement answers which question?
What is our business?
Which question(s) are answered in an effective mission statement?
What is the purpose of our organization? What is our company philosophy or self-concept? What technology will we employ to achieve our objectives? Who are the firm's customers?
The three characteristics of a mission statement are a declaration of attitude, a declaration of social policy and:
a customer orientation.
What can be used to promote unbiased views and to manage the development of the mission statement more effectively?
a facilitator
The potential for creative growth for the organization can be limited by
a mission statement that is too specific.
A mission statement is sometimes called all of the following except:
a statement of intent.
Globalization of industries is occurring for all of these reasons except:
a worldwide trend toward different consumption patterns.
Which group would be classified as a stakeholder?
a. Communities b. Banks c. Suppliers d. Employees
The purpose of a mission statement is to declare all of these except:
an annual financial plan.
The process of performing an external audit needs to include:
as many managers and employees as possible.
In the process of developing a mission statement, it is important to involve
as many managers as possible.
The world of biopolitics includes
assisted suicide, cloning. genetic engineering. abortion.
Planning would be impossible without
assumptions.
Because of the Internet, barriers to personal and business success are
being eliminated.
Technological advancements can create new ______ advantages that are more powerful than existing advantages.
competitive
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.
A proactive environmental policy is likely to lead to:
conservation of energy
Which type of trend is exemplified by the increasing numbers of two- income households in America?
economic
A businesses mission is the foundation for all of the following except:
employee wage rates.
A low value of the dollar means lower exports and higher imports.
false
A mission statement is usually a simple statement of specific beliefs.
false
Because companies are fearful of corporate espionage, cooperative agreements between competitors are becoming less popular.
false
Corporate intelligence can be defined as 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.
false
Qualitative forecasts are most appropriate when historical data are available and when the relationships among key variables are expected to remain the same in the future.
false
Regardless of the number of key opportunities and threats included in an External Factor Evaluation Matrix, the highest possible total weighted score for an organization is 4.0, and the lowest possible total weighted score is 0.0.
false
Social policy should be designed and articulated during the strategy-implementation stage.
false
Stakeholders of an organization include stockholders, customers and creditors, but not competitors.
false
The first step in the process of developing a mission statement is to ask all participants to prepare what they believe the organization's mission should be.
false
The mission statement should be short—preferably one sentence.
false
There is no need for a mission statement in small, nonprofit organizations.
false
What happens to the demand for discretionary goods when interest rates rise?
first rises then declines
Corporate social policy should be designed and articulated during which phase of strategy development?
formulation
All of these are risks that still restrain firms from initiating business with China except:
freedom of press and religion.
To perform an external audit, a company first must:
gather competitive intelligence and information about external trends
. 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
The international challenge faced by U.S. business is twofold:
how to gain and maintain exports to other nations and how to defend domestic markets against imported goods.
Whenever new firms can easily enter a particular industry, the intensity of competitiveness among firmsv
increases.
Intensity of competition _______ in lower-return industries.
is highest
In developing a mission statement, arousing emotion
is important.
According to McGinnis, a mission statement should be all of the following except:
it should be specific enough to control creative growth.
In regard to its elderly workforce, Japan varies from the United States in that:
japan does not have laws banning discrimination based on age
Effective mission statements can vary in
length. content. format. specificity
As indicated in the strategic-management model, a clear _______ is needed before alternate strategies can be formulated and implemented.
mission statement
In general, what happens to American goods in overseas markets when there is a strong dollar?
more expensive
The I/O approach to competitive advantage advocates that external factors are ________ internal factors in a firm achieving competitive advantage.
more important than
It is predicted that the United States will have how many racial or ethnic majorities by the year 2075?
none
The ideal length of a vision statement is:
one sentence.
Identifying and evaluating key social, political, economic, technological and competitive trends and events comprise
performing an external audit.
Which sector of the economy would be most impacted by technological developments?
pharmaceuticals
When an industry relies heavily on government contracts, which forecasts can be the most important part of an external audit.
political
After a draft mission statement has been developed, it is important to:
provide a request for modifications, additions and deletions to the mission statement.
Keeping strategies secret from employees and stakeholders can do all of the following exept:
provide competitive advantage to competitors.
Freund emphasizes that key external factors should be all of these except:
relatively few in number.
What effect do trends in the dollar's value have on companies in different industries and in different locations?
significant and unequal
The general public is especially interested in________ are more interested in________ . , whereas stockholders
social responsibility; profitability
Effective mission statements
stand the test of time and require little revision.
The corporate social policy should be reaffirmed or changed during which phase of strategy development?
strategy evaluation
Collecting and evaluating information on competitors is essential for successful
strategy formulation.
The term that refers to the EU's effort to end competitive tax breaks among member countries is
tax harmonization.
Americans are on the move in a population shift to
the South and West
King and Cleland recommend organizations carefully develop a written mission statement for all of the following reasons except:
to ensure a command-and-control structure.
The largest category for online sales in the United States is:
travel
14. An important question a mission statement should answer is, "What do we want to become?
true
According to Business Week, and 9 out of 10 large companies have employees dedicated solely to gathering competitive intelligence.
true
An effective CI program allows all areas of a firm to access consistent and verifiable information in making decisions.
true
Competitive intelligence is not considered corporate espionage because 95 percent of the information a company needs to make strategic decisions is available and accessible to the public.
true
Corporate policies related to mandatory retirement are a growing concern in many counties.
true
Forecasts are educated assumptions about future trends and events.
true
Globalization is a process of worldwide integration of strategy formulation, implementation and evaluation activities
true
In an EFE Matrix, opportunities often receive higher weights than threats, but threats too can receive high weights if they are especially severe or threatening.
true
Rampant corruption and the absence of a legal system are risks that still restrain firms from initiating business with China.
true
Russian businesses are more likely to fall victim to illegal actions by officials and policemen than by criminals.
true
The United States is getting older and less Caucasian.
true
Vision and mission statements can often be found in the front of annual reports.
true
When a company has been successful and/or unsuccessful, the question "What is our business?" should be asked.
true
When developing a vision statement, input should be received from as many managers as possible.
true
A study by Rarick and Vitton found that firms with a formalized mission statement have------ the average return on shareholders' equity compared to those firms without a formalized mission statement.
twice
Good mission statements identify the ______ of a firm's products to its customers.
utility
What is the best time to develop a mission statement?
when the firm is successful
