Strategic Management 4810 final exam
policy
"All of our locations will be open at least two evening per week until 830pm " is an example of an
physical resources, human resources, and organizational resources
3 Categories of a resource-based view
rational
A change strategy that attempts to convince people that the change is to their personal advantage is
distinctive competencies
A firms strengths that cannot be easily imitated by competitors are called
a customer orientation
A good mission statement has
(1) rare, (2) hard to imitate, or (3) not easily substitutable.
A resource can be considered valuable to the extent that it is
rare, hard to imitate, or not easily substitutable
A resource is valuable if it is
Forward integration
Amazon's start of rapid delivery services in some US cities is an example of which type of strategy?
include monetary amounts, numbers, percentages and ratios
An effective mission statement should do all of the following EXCEPT
answer the question: "what do we want to become?"
An organization's vision statement
competitive advantage
Anything that a firm does especially well compared to rival firms is referred to as
changed
Aspects of an existing culture that are antagonistic to a proposed strategy should be
larger market share
Financial objectives involve all of the following EXCEPT
vertical integration
Forward integration and backward integration are sometimes collectively referred to as
the invisible barrier in many firms that bars women and minorities from top-level management positions.
Glass ceiling refers to
by involvement in the strategic management process
How do line managers become "owners" of the strategy?
individuals who will be affected by a change should be involved in the decision to make the change and in decisions about how to implement the change.
How do you get people to not resist change?
inconsistent.
If success for one organizational department means, or is interpreted to mean, failure for another department, then strategies may be
Backward integration
If suppliers are unreliable or too costly, which of these strategies may be appropriate?
is important
In developing a mission statement, arousing emotion
Compare the firm's performance over different time periods. Compare the firm's performance to competitors. Compare the firm's performance to industry averages.
Strategists use financial ratios to make three critical comparisons:
subjective; objective
Strategy analysis largely involves making _____ decisions based on _____ information
Forward integration
Websites that sell products directly to consumers are examples of which type of strategy?
restructuring
What action involves reconfiguring or redesigning work, jobs and processes for the purpose of improving cost, quality, service and speed?
forecasts
What are educated assumptions about future trends and events called?
mission statements
What are enduring statements of purpose that distinguish one business from another?
sales net income EPS DPS
What are the Growth ratios?
Inventory Turnover Fixed Assets Turnover Total Assets Turnover Average Collection
What are the activity ratios?
relating to or concerned with the relation of living organisms to one another and to their physical surroundings.
What does ecological mean?
Average collection period
Which ratio would be considered an activity ratio?
product development
Which strategy is appropriate when an organization competes in an industry characterized by rapid technological developments?
Related diversification
Which strategy is effective when new, but related products could be offered at highly competitive prices?
market penetration
Which strategy seeks to increase market share for present products or services in present markets through greater marketing efforts?
related diversification
Which strategy should an organization use when its products are currently in the declining stage of the product's life cycle?
strategy
____ is " the science of planning and directing large-scale military operations, of maneuvering forces into the most advantageous position prior to actual engagement with the enemy"
Culture
_____is the unique way an organization does business
competitive intelligence
A systematic and ethical process for gathering and analyzing information about the competitions activities and general trends to further a business' practices
4
A total weighted score of ____ in an External Factor Evaluation Matrix indicate that an organization is responding in an outstanding way to existing opportunities and threats in its industry.
does not exclude any strategy alternatives
An overly general mission statement that _____ could be dysfunctional
stock price
For upper level executives, ____ is the major variable used for compensation incentives.
link culture to strategy
Formal statements of organizational philosophy, charts, creeds, materials used for recruitment and selection and socialization help an organization
$1000
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?
find that less brick and mortar is better
In mass retailing, big box companies like walmart best buy and sears are
reconciliatory
In order to appeal to diverse stakeholders, an effective mission statement should be
an annual financial plan
The purpose of a mission statement is to declare all of these EXCEPT
is a continuous process
The strategic management process
logical, systematic, objective
The strategic management process represents a ____,____ and ____ approached by determining an enterprises futures direction
organizational resources, physical resources, human resources
The three all-encompassing internal resource categories used in the resource based view
Leverage ratio
The times-interest-earned ratio would be classified as a
operating stores with less square footage
There is a dramatic shift in mass retailing to
Tax inversion
To avoid paying US taxes, what do US companies do to save money?
debt
Too much ____ can endanger stockholders return
highly controversial
Successful strategists minimize their own political exposure on issues that are ______ and in circumstances where opposition from major power centers is likely.
on the battlefield
Terms such as objectives, missions, strengths and weaknesses were first formulated to address problems
both internal and external issues
The critical success factors in Competitive profile matrix and EFE matrix include
social responsibility; profitability
The general public is especially interested in _____, where as stockholders are more interested in _______.
strategy
The match an organization makes between its internal resources and skills and the opportunities and risk created by its external factors can be defined as
a mission statement that is too specific
The potential for creative growth in an organization can be limited by
planning, organizing, motivating, staffing, and controlling
What are the basic activities of management?
debt to equity debt to total assets times interest earned LTD to equity
What are the leverage ratios
current and quick ratios
What are the liquidity ratios?
Policies
What are the means by which long term objectives will be achieved?
Gross Profit Margin Operating Profit Margin Net profit Margin ROA ROE PE
What are the profitability ratios?
Liquidity
What category of ratio measures a firm's ability to meet its short-term obligations?
profitability
What category of ratios includes return on total assets and return on stockholder's equity?
Growth
What category of ratios measures how effectively a firm can maintain its economic position in the growth of the economy and industry?
created similar patterns in consumption
What did mass communication and technology do to diverse cultures?
optimal capital structure (using WACC)
What financial decision determines the best capital structure?
Selling all of a company's assets, in parts, for their tangible worth
What is Liquidation?
Market segmentation can be defined as the subdividing of a market into distinct subsets of customers according to needs and buying habits.
What is Market Segmentation?
involves companies hiring other companies to take over various parts of their functional operations, such as human resources, information systems, payroll, accounting, customer service, and even marketing.
What is Outsourcing?
can be defined as alternative plans that can be put into effect if certain key events do not occur as expected.
What is a contingency plan?
the ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity.
What is comparative advantage?
is a process of doing business worldwide, so strategic decisions are made based on global profitability of the firm rather than just domestic considerations
What is globalization?
entails developing schematic representations that reflect how products or services compare to those of the competitors on dimensions most important to success in the industry.
What is perceptual mapping?
is a strategy that seeks increased sales by improving or modifying present products or services.
What is product development?
refers to countries imposing tariffs, taxes, and regulations on firms outside the country to favor their own companies and people.
What is protectionism?
concerns what responsibilities the firm has to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups.
What is social policy?
While the objectives can be described as the goals that have to be achieved by the organization, on the other hand, policies can be described as the tools that are used for achieving the objectives of the organization
What is the difference between policy and objective?
Identifying key external factors
What is the first step in designing an EFE Matrix?
Matrix
What is the most complex form of organizational structure?
refers to employees reporting any unethical violations they discover or see in the firm
What is whistle blowing ?
Joint venture
What occurs when two or more companies form a temporary partnership or consortium for the purpose of capitalizing on some opportunity?
what are the basic beliefs, values, aspirations and ethical priorities of the firm?
What question is asked in conjunction with the philosophy component of a mission statement?
Horizontal integration
What refers to a strategy of seeking ownership of, or increased control over a firm's competitors?
policies
What term is used to describe specific guidelines, methods, procedures, rules, forms and administrative practices established to support and encourage work toward stated goals?
functional structure
What type of organizational structure promotes specialization of labor and allows rapid decision making?
outsourcing
When companies are hired by other companies to take over functional operations such as human resources, information systems, payroll, accounting or customer service, this is called
higher
When the products being purchased are standard or undifferentiated, it results in _____ bargaining power of consumers
deter investment in new factories and also provides strong incentives for corporations
When you have high corporate tax rates, what happens?
strategists
Which individuals are most responsible for the success and failure of an organization?
The should use terms like "maximize" "minimize" and "as soon as possible"
Which of the following is NOT true about objectives?
All of the above
Which of the following is a management issue central to strategy implementation?
all of the above
Which of the following is part of the strategic management model ?
Financing
Which of the three finance and accounting decisions involves determining the best capital structure for the firm?
backward integration
Which of these strategies is effective when the number of suppliers is small and the number of competitors is large?
Times-interest-earned ratio
Which ratio is calculated by dividing profits before interest and taxes by total interest charges?
employee wage rates
According to drucker, a business' mission is the foundation for all of the following EXCEPT
What is our business?
According to drucker, which question is synonymous with asking "what is our mission?"
increased resistance to change
According to greenley, strategic management offers all of the following benefits EXCEPT
consolidating
All of the following are basic activities of management EXCEPT
value chain analysis
All of the following are basic functions of marketing EXCEPT
SEC reports
All of the following are mentioned as places where vision and mission statements can often be found EXCEPT
when the advantages of stable prices are not particularly important
Backward integration is effective in all of these cases EXCEPT
EPS/EBIT
Best technique for balancing debt and stock
adapt to change; constantly improve
Both business and military organizations must _____ and _____ to be successful
the product of both attention to changing eternal and internal conditions and the insightful adaptations to those conditions
Business or military success is
not always bad
Conflict in an organization is
all of the above
Considerable time and effort should be denoted to assuring objectives are well conceived because they represent the basis for
all of the above
Considerable time and effort should be devoted to assuring objectives are well conceived because they represent the basis for
continually changing
Long term objectives should be all of the following EXCEPT
All of the above
Long-term objectives are needed at which level(s) in an organization
divisional
Medium-sized firms tend to use which type of structure
conflict; cooperation
Military strategy is based on an assumption of _____, whereas business strategy is based on assumption of
more profitable
Organizations using strategic management are generally ____ than those that do not.
Divestiture
Proctor & Gamble's sale of many of its brands in order to focus on its core brands is an example of which type of strategy?
all of the above
Resistance to change can manifest itself through
liquidation
Selling all of a company's assets , in parts, because they are worth more dead than alive is called
objectives
Specific results an organization seeks to achieve in pursuing its basic mission are
be proactive
Strategic management enables an organization to _____, instead of just responding to threats in its business environment
market segmentation; product positioning rank
what are 2 variables that are marketing contributions to strategic management?
all of the above
which group would be classified as stakeholders?
using plans as a standard for measuring performance
All of these are pitfalls an organization should avoid in strategic planning EXCEPT
have claims and concerns about an organization, but these claims and concerns vary
All stakeholders
cannot be
All stakeholders claims on an organization ____ pursued with equal emphasis
is highest
Intensity of competition _____ in lower return industries
strengths
Internal _______ are controllable activities in an organization that are performed especially well
delivering materials just as they are needed
Just-in-time describes
