Mgmt 470 Final Ch. 9, 10, 11

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 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.

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

A. favorable foreign court interpretations of contracts and agreements.

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

A. simply happens so organizations should determine how to best manage the phenomenon.

Which of the following is a potential advantage of conducting international operations? A. Dealing with two or more monetary systems can complicate international business operations. B. Competitors in foreign markets may not exist, or competition may be less intense than in domestic markets. 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

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

Commercial and industrial development in the western part of which country has turned interior cities into production centers that compete for labor with coastal factories? A. Indonesia B. Armenia C. China D. India E. Vietnam

C. China

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

C. Globalization

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

C. Misleading labeling

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

C. all of the above

Most quantitative criteria are geared to ________ objectives rather than to ________ 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

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

C. social responsibility

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

D. distinctiveness.

Which of these is a basic activity of strategy evaluation? A. Measuring organizational performance B. Taking corrective actions C. Examining the underlying bases of current strategies D. Choices B and C only E. All of the above

E. All of the above

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

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

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

E. all of the above

The ________ competitive 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

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

E. extremely commonplace.

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. 2 E. the performance of competitors.

E. the performance of competitors.

Good ethics is not a prerequisite for good strategic management. TRUE/FALSE

FALSE

In order to be considered bribery, the gift offered must be either money or a physical item. TRUE/FALSE

FALSE

It is an exaggeration to say that in an industry that is global, the riskiest possible posture is to remain a domestic competitor. TRUE/FALSE

FALSE

Evaluating strategies on a continuous rather than on a periodic basis allows benchmarks of progress to be established and more effectively monitored. TRUE/FALSE

TRUE

In today's global climate, many companies may find it difficult to survive by relying solely on domestic markets. TRUE/FALSE

TRUE

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

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

A well-written code of ethics ensures ethical business behavior. TRUE/FALSE

FALSE

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

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

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

C. avoid external opportunities.

With regard to the visible or hidden issue, most executives agree that: A. 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. B. keeping strategies secret from employees and stakeholders will likely improve communication, understanding, and commitment. C. some strategic information should remain confidential to top managers. D. the SEC should regulate whether or not companies make their strategic information visible. E. a company has gone too far when it takes steps to ensure that strategic information is not disseminated beyond "the inner circle."

C. some strategic information should remain confidential to top managers.

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

C. spreading computer viruses.

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.

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. encouraging firms to play a role in curing society of its ills. D. forcing companies to take responsibility for the impact their actions have on society. E. prohibiting love affairs between bosses and their subordinates.

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. ignored patterns of consumption D. had little to no effect on patterns of consumption E. rendered patterns of consumption identical

A. created similar patterns of consumption

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

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

A. increase investor scrutiny of the firm.

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.

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

B. Globalization

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

B. It should be determined based on the unique aspects of a company.

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

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

B. Whistle-blowing

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

B. derail even the best

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

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

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

B. harms; inhibits

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.

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

B. suggests that strategic decision making be based primarily on holistic thinking, intuition, creativity, and imagination. insists on formality.

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. increase investor scrutiny of the firm. D. deflect the scrutiny of a firm by environmentalists. E. release the firm from governmental reporting obligations

C. increase investor scrutiny of the firm.

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

C. monitoring departmental and corporate performance regarding ethical issues.

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.

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.

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.

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

C. which can translate into improved negotiating power among important groups.

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

D. Benchmarking

________ 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

________ are quantitative criteria commonly used to evaluate strategies. A. Cash budgets B. Present value strategic analyses C. Balanced Scorecards D. Financial ratios E. Capital Asset Pricing Models

D. Financial ratios

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.

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

D. conceptually the same as; more simple

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

D. more of a science than an art.

Keeping informed about the number and the nature of competitors is easier when doing business internationally. TRUE/FALSE

FALSE