Test 2 Chapters 7-11 Study Guide

Which of the following is NOT an activity of strategic management process?

Establish compensation for future performance

Multipreneurs are businesspeople who have tried a succession of entrepreneurial start-ups without finding an area in which they could be successful.

False

Strong rivalry in an industry increases the profit potential for all firms because consumers have many firms from which to purchase products or services and can make at least part of their purchasing decisions based on prices.

False

Support activities, according to the value chain, are the actions a firm takes to directly provide a product or service to customers

False

The first step in starting your own business is the creation of a unique marketable idea.

False

The top managers in organizations prefer to deal with the steps of strategic management one at a time to be able to provide the necessary attention to details.

False

Transformational change refers to small refinements in current organizational practices or routines that do not challenge, but rather build on or improve, existing aspects and practices within the organization.

False

__________ is an entrepreneurial alliance between an innovator who has created at least one successful store and wants to grow and a partner who manages a new store of the same type in a new location.

Franchising

Which of these refers to small refinements in current organizational practices or routines that do not challenge, but rather build on or improve, existing aspects and practices within the organization?

Incremental change

__________ offer a way for a business to raise capital through federally registered and underwritten sales of shares in a company.

Initial public stock offerings

__________ are new venture creators working inside big companies; they are corporate entrepreneurs, using their company's resources to build a profitable line of business based on a fresh new idea.

Intrapreneurs

Which of the following describes the process of setting up organizational structures to address the needs of an organization and account for the complexity involved in accomplishing business objectives?

Organizational design

As a general rule of thumb, the more complex the potential change, the greater the need to involve employees in the process of planning and implementing change.

True

Culture change, among the most difficult kinds of changes to create within an organizational system, often involves reshaping and reimagining the core identity of the organization.

True

Demographics includes facts about income, education levels, age groups, and the ethnic and racial composition of a population.

True

Entrepreneurs are people with vision, drive, and creativity, who are willing to take the risk of starting and managing a business to make a profit.

True

People can add value to an organization by helping to reduce costs and providing something unique to customers.

True

Talent development and succession planning are two of the most critical human resource management processes within an organization.

True

The informal organization is emergent, meaning that it is formed through the common conversations and relationships that often naturally occur as people interact with one another in their day-to-day relationships.

True

The mission statement takes the why of a vision statement and gives a broad description of how the firm will try to make its vision a reality.

True

The strategy cycle is a process managers use to achieve an advantage in the marketplace, and the measurement and evaluation stage tells managers whether the advantage is being achieved.

True

To react to change more easily and develop products consumers want, managers and consultants engage in environmental scanning.

True

A 360-degree appraisal is the process of using __________ to gain a comprehensive perspective on one's performance.

every level involved with the employee

Which of the following is NOT a reason why small business thrives in the United States?

guaranteed profits

The skills, knowledge, and experience of an individual or group and its value to an organization refers to _____.

human capital

A firm's ______ environment includes components inside the firm and outside the firm.

competitive

A firm's _____ is the progression of activities it undertakes to create a product or service that consumers will pay for.

value chain

_____ are individual investors or groups of experienced investors who provide funding for start-up businesses.

Angel investors

Which of the following represents is one of the most difficult kinds of changes to create within an organizational system?

Cultural change

______ includes facts about income, education levels, age groups, and the ethnic and racial composition of a population.

Demographics

Which of the following argues that organizations exist as socially constructed systems in which people are constantly making sense of and enacting an organizational reality as they interact with others in a system?

Emergent approach

A small business and an entrepreneurial venture have similar goals.

False

A stability strategy involves developing plans to increase the size of the firm in terms of revenue, market share, or geographic reach.

False

Entrepreneurs, as a general group, dislike risk taking.

False

In collective bargaining, workers are paid while they are on strike.

False

In organizations today, success depends on talent acquisition outsourcing to external recruiters.

False

In the appreciative mindset, leaders assume that most people are inclined to resist change and therefore they need to be managed in a way that encourages them to accept change.

False

Which of these is a general description of how the firm will try to accomplish the firm's vision?

Mission statement

Which of the following SWOT factors are external to the firm?

Opportunities & threats

_____ is (are) the big-picture goals for the company.

Strategic Objectives

Which of the following refers to the systematic examination of a firm's internal and external situation that informs managerial decision-making?

Strategic analysis

Which of the following describe the high-level planning performed by company executives in order to set the overall direction of the company?

Strategic planning

__________ appraisals involve judgments about employee behavior.

Trait

A behavioral description interview explores what a job candidate has done in a previous position.

True

A firm's weaknesses are simply gaps in capabilities, and those gaps do not always have to be filled within the firm.

True

Performance management began as a simple tool to drive _____ but has evolved more recently into a tool used for _____.

accountability; employee development

The Equal Pay Act (EPA) of 1963

allows differences in pay in the case of a seniority system or merit system

A firm's ______ environment contains elements that can impact the firm but are generally beyond its direct control. These elements are characteristics of the world at large and are factors that all businesses must contend with, regardless of the industry they are in or type of business they are.

macro

The degree to which people are organized into subunits according to their expertise is referred to as:

specialization