quiz

If a merger or acquisition is not desired by both parties, it is called a ________ management buyout. consolidation. leveraged buyout. white knight takeover. hostile takeover.

hostile takeover

Which stage of the strategy-formulation framework includes an IFE Matrix and the Competitive Profile Matrix? Research Penetration Input Matching Decision

input

Annually, ________ businesses in the United States fail. less than 1,000 exactly 100 about 10,000 more than 100,000 almost 10 million

100,000

More than ________ businesses in the United States fail annually. 50,000 75,000 125,000 25,000 100,000

100,000

An IFE Matrix can be developed in ________ steps. three six five four two

5

Which chapter of the bankruptcy code applies to municipalities? Chapter 8 Chapter 13 Chapter 9 Chapter 7 Chapter 12

9

Who is referred to as "the father of modern management?" Drucker Campbell Yeung McGinnis Cleland

Drucker

According to the Grand Strategy Matrix, organizations in which quadrant have a strong competitive position, but are in a slow-growth industry? I II III IV V

IV

The ________ decision is the allocation and reallocation of capital and resources to projects, products, assets, and divisions of an organization. investment benchmark restructuring dividend financing

Investment

Standard & Poor's NetAdvantage does not provide online access to mutual fund reports. Standard & Poor's Industry Surveys. stock reports. Mergent's (formerly Moody's/FISOnline) Manuals. The Outlook.

Mergent's (formerly Moody's/FISOnline) Manuals.

What are enduring statements of purpose that distinguish one business from other similar firms? Policies Rules Objectives Mission statements Employee conduct guidelines

Mission statements

Which of the following is NOT an external force that must be examined in formulating strategies? Economic Social Organizational Cultural Environmental

Organizational

Which stage of the strategy-formulation framework involves the Quantitative Strategic Planning Matrix? Stage 1 Stage 2 Stage 3 Stage 4 Stage 5

Stage 3

Because of the success of the iPad and the iPhone, Apple has tremendous brand recognition. Brand recognition is one of Apple's: opportunities. threats. weaknesses. strategies strengths.

Strengths

Which of the following is NOT a reason given for poor or no strategic planning in an organization? No monetary rewards for planning Planning is viewed as a waste of time Content with current success Trust of management makes it unnecessary Too busy "firefighting" to plan ahead

Trust of management makes it unnecessary

A strong dollar enables ________ firms to purchase raw materials more cheaply from other countries. European Union Indian United States Russian Chinese

US

According to Drucker, what is the best time to ask, "What do we want to become?" and "What is our business?"? When the firm is in financial trouble When the firm is successful When a firm is in decline When the firm is in legal trouble When the firm encounters competition

When the firm is successful

An organization's vision statement addresses the basic question: "What is our business?" answers the question: "What do we want to become?" broadly charts the future direction of an organization. is mandated by law. is a constant reminder to its employees of why the organization exists.

answers the question "what do we want to become"

Superior strategy formulation and implementation ________ an opponent's superiority in numbers and resources. can overcome can lead to unite are irrelevant to are not enough to surmount

can overcome

All stakeholders' claims on an organization ________ pursued with equal emphasis. should always be are required to be can usually be cannot be must ideally be

cannot be

Which level of strategy is most likely NOT present in small firms? Company Operational Functional Divisional Global

divisional

The acronym SCDE stands for social, cultural, demographic, and ________ forces. external environment ecological economic ethnic

environment

________ exemplifies the complexity of relationships among the functional areas of business. Environmental scanning Financial ratio analysis Government auditing External auditing Distribution strategy

financial ratio analysis

In developing a mission statement, arousing emotion is futile. is not a benefit. is counterproductive. is important. should be avoided if possible.

is important

Retrenchment would be an effective strategy when an organization is one of the stronger competitors in a given industry. has shrunk so quickly that major internal reorganization is needed. is plagued by inefficiency, low profitability, poor employee morale, and pressure from stockholders to improve performance. has decided to capitalize on opportunities, maximize threats, take advantage of strengths, and overcome weaknesses.

is plagued by inefficiency, low profitability, poor employee morale, and pressure from stockholders to improve performance.

________ captures the subtle, elusive, and largely unconscious forces that shape a workplace. Regulation Business model Organizational mandate Organizational strategy Organizational culture

organizational culture

Which management function includes breaking tasks into jobs, combining jobs to form departments, and delegating authority? Motivating Staffing Planning Organizing Controlling

organizing

Both the Internal-External (IE) and Boston Consulting Group (BCG) Matrices are called ________ matrices. portfolio security velocity vector strategy

portfolio

Effective and carefully planned mission statements: require major changes every few quarters. require major revision every few years. do not require revision. require major changes every few months. require infrequent major changes, but are always subject to revision.

require infrequent major changes, but are always subject to revision.

Forward integration would be an appropriate strategy for which of the following types of divisions in the Boston Consulting Group (BCG) Matrix? Question Marks Cat Star Failures Dogs

star

Internal politics affect the choice of ________ in all organizations. products suppliers markets strategies customers

strategies

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. the Resource-Based Approach. the Internal Factor Evaluation Matrix. Strategic Cost Analysis. Cost-Benefit Analysis.

value chain analysis

Too often, strategists develop ________ only when the organization is in trouble. budgets vision and mission statements business models policies financial statements

vision and mission

What is the first step in the comprehensive strategic-management model? Developing vision and mission statements Performing internal audits Performing external audits Measuring and evaluating performance Establishing long-term objectives

Developing a mission and vision

The weights and total weighted scores in a Competitive Profile Matrix (CPM) have the same meaning as the weights and total weighted scores in a(n) External Factor Evaluation (EFE). Dynamic Trends Analytical Framework. Evaluative Forces Matrix (EFM). Comprehensive Profile Analysis (CPA). Porter's Five Forces Model.

EFE

Under which condition would a differentiation strategy be especially effective? When there are few ways to differentiate the product or service that buyers perceive as having value When the differentiation base is easy or inexpensive for rivals to duplicate When most buyers use the product in the same way When technological change is fast paced and competition revolves around rapidly evolving product features When many rival firms are following a similar differentiation approach

When technological change is fast paced and competition revolves around rapidly evolving product features

The process of performing an external audit needs to include: primarily front-line supervisors. only top level managers, as it is a planning function. between 15 to 20 managers for it to be valid. stockholders and external government agencies. as many managers and employees as possible.

as many managers and employees as possible

A ________ integration strategy is used by firms to gain control or ownership of suppliers. vertical vortexed horizontal forward backward

backward

If suppliers are unreliable or too costly, which of these strategies may be appropriate? Market penetration Concentric diversification Backward integration Horizontal integration Forward integration

backward integration

A ________ strategy aims to target a new market where competition is not yet present. product proliferation differentiation consolidation market penetration blue ocean

blue ocean

Distribution includes: test marketing. pricing. warehousing. advertising. customer analysis.

warehousing

Which of the following is NOT one of the nine recommended components of a mission statement? Strategies Distinctive competence Markets Employees Customers

strategies

An important activity in ________ is taking corrective action. strategic analysis strategy evaluation strategy formulation strategy leadership strategy implementation

strategy evaluation

The emergence of 3D printing is an example of a(n) ________ force that impacts organizations. legal economic social, cultural, demographic, and environment (SCDE) political technological

technological

________ is a business technique that involves using software to mine huge volumes of data to help executives make decisions. Business modeling Production management Operations management Business analytics Strategic planning

business analytics

Successful strategists minimize their own political exposure on issues that are ________ and in circumstances where opposition from major power centers is likely. tactic optimized highly controversial strategy centered nominally controversial power centered

highly controversial

Which stage of the strategy-formulation framework includes the IFE Matrix? Output stage Matching stage Decision stage Input stage Analysis stage

input stage

Which question is NOT answered in an effective mission statement? Is the firm committed to growth and financial soundness? Are employees a valuable asset of the firm? Are the firm's profits adequate? Geographically, where does the firm compete? Who are the firm's customers?

Are the firm's profits adequate

Which component of a mission statement addresses the basic beliefs, values, aspirations, and ethical priorities of the firm? Self-concept Technology Philosophy Customers Concern for public image

Philosophy

Which strategy is appropriate when an organization competes in an industry characterized by rapid technological developments? Market penetration Retrenchment Liquidation Product development Backward integration

Product development

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 artificial intelligence. industrial espionage. competitive intelligence. competitive advantage. unethical business practices.

competitive intelligence

Military strategy is based on an assumption of ________, whereas business strategy is based on an assumption of ________. cooperation; competition cooperation; conflict conflict; competition conflict; cooperation competition; conflict

conflict; competition

What type of strategies would you recommend when a firm's SPACE Matrix directional vector has the coordinates (-2, +3)? Integrative Aggressive Competitive Conservative Defensive

conservative

All of the following are basic activities of management EXCEPT motivating. planning. staffing. organizing. consolidating.

consolidating

The initial step in developing an IFE Matrix is obtaining weighted scores. developing a full and narrow list of key internal factors. attaching a cost to each discrete activity. assigning weights to key internal factors. assigning ratings to key internal factors.

developing a full and narrow list of key internal factors

Which of the following is NOT a reason joint ventures fail? Venture risk was minimized. The venture may begin to compete more with one of the partners than the other. The venture may benefit the partnering companies, but may not benefit the customers who then complain about poorer service or criticize the companies in other ways. The venture may not be supported equally by both partners.

venture risk was minimized

What category of ratios measures how effectively a firm can maintain its economic position in the growth of the economy and industry? Profitability Revenue Growth Leverage Growth Liquidity

growth

According to the Grand Strategy Matrix, which strategy is recommended for a firm with rapid market growth and a strong competitive position? Unrelated diversification Joint venture Liquidation Retrenchment Market penetration

market penetration

A strong ________ heritage underlies the study of strategic management. military social cultural political government

military

Backward integration is effective in all of these cases EXCEPT when an organization has both capital and human resources to manage the new business of supplying its own raw materials. when an organization needs to acquire a needed resource quickly. when present suppliers have high profit margins. when an organization competes in an industry that is growing rapidly. when the advantages of stable prices are not particularly important.

when the advantages of stable prices are not particularly important.