Buad479-Ch.4
Strengths that cannot be easily matched or imitated by competitors are called what?
*A.Distinctive competencies* B.Valuable resources C.Distinctive advantages D.Competitive advantages E.Synergies
The management function of staffing, or human resource (HR) management, includes activities such as the following:
A.Recruiting, interviewing, testing, selecting, and orienting B.Dismissing employees and managing union relations C.Disciplining, promoting, transferring, and demoting D.Training, developing, caring for, evaluating, and rewarding *E.All of the above*
What are the five basic functions of management?
*A.Planning, organizing, motivating, staffing, and controlling* B.Planning, organizing, motivating, staffing, and leading C.Planning, organizing, leading, motivating, and controlling D.Planning, organizing, motivating, strategizing, and controlling E.Planning, organizing, motivating, strategizing, and leading
In an IFE Matrix, the weights of all factors included must sum to ___________.
A.2.0 B.5.0 *C.1.0* D.4.0 E.3.0
By 2018, revenues from global data analytics software are expected to reach ________ billion, a ________ percent increase from 2012. Leading firms providing the software include IBM, SAP, Oracle, Microsoft, Qlik Technologies, Tibco Software, and Tableau Software.
A.217; .64 B.217; 640 C.50; 50 *D.$21.7; 64* E.2.17; 6.4
Which statement(s) below is false?
*A.Firms should strive to understand their own value chain operations, not those of their competitors, suppliers, and distributors.* B.According to Porter, the business of a firm can best be described as a value chain, in which total revenues minus total costs of all activities undertaken to develop and market a product or service yields value. C.All firms in a given industry have a similar value chain, which includes activities such as obtaining raw materials, designing products, building manufacturing facilities, developing cooperative agreements, and providing customer service. D.A firm will be profitable so long as total revenues exceed the total costs incurred in creating and delivering the product or service. E.Conducting a value chain analysis is supportive of the research-based view's examination of a firm's assets and capabilities as sources of distinctive competence.
Which statement below is false?
*A.The average IFE Matrix score is 2.0.* B.In an IFE Matrix, the number of factors has no effect on the range of total weighted scores because the weights always sum to 1.0. C.When a key internal factor is both a strength and a weakness, the factor may be included twice in the IFE Matrix, and a weight and rating assigned to each statement. D.Always sequence factors in an IFE Matrix from highest to lowest weight. E.All statements are true
According to James Van Horne, the functions of finance/accounting comprise three decisions. What are the three?
*A.The investment decision, the financing decision, and the dividend decision* B.The investment decision, the financing decision, and the treasury stock decision C.The investment decision, the financing decision, and the leverage decision D.The investment decision, the liquidity decision, and the dividend decision E.The liquidity decision, the financing decision, and the dividend decision
The extent to which a manufacturing plant's output reaches its potential output is called ________________, a key strategic variable.
*A.capacity utilization* B.min-to-max capacity C.maximum capacity D.capacity maximum E.maximum utilization
Spending on online advertisements globally is increasing about _____ percent annually, according to edMarketer, and represents about _____ percent of total advertising spending in the United States.
A.40; 25 *B.25; 39* C.39; 25 D.50; 50 E.25; 40
In an IFE Matrix, how much more important is a weight of .016 than a weight of .07?
A.5.6 percent B.56 percent C.12.9 percent D.90 percent *E.129 percent*
In performing breakeven analysis, which of the following are considered variable costs?
A.Advertising expenses B.Labor expenses C.Raw material expenses D.A and B *E.B and C*
In developing an IFE Matrix, when can both internal and external factors be included?
A.Anytime B.For firms in some industries, such as utility companies C.Whenever a firm does not develop or have an EFE Matrix *D.Never* E.Sometimes
In developing an IFE Matrix, what is an important guideline?
A.Assign higher weights for factors that have higher ratings. B.Never assign a weight of more than 1.0 for a factor. C.Never assign a rating of more than 4.0 for a factor. D.Include at least 20 factors. *E.Include factors that are both actionable and divisional to the extent possible.*
In developing an IFE Matrix, do not allow more than 30 percent of the key factors to be financial ratios. Why?
A.Because financial ratios can be misleading *B.Since financial ratios are generally the result of many factors, it is difficult to know what particular strategies should be considered based on financial ratios.* C.Because financial ratios have limitations such as firms using different accounting methods D.Because financial ratios can vary from industry to industry E.Because finance is only one part of an organization's business operations
________________ is an analytical tool used to determine whether a firm's value chain analysis is competitive compared with those of rivals and thus conducive to winning in the marketplace.
A.Breakeven analysis *B.Benchmarking* C.Perceptual mapping D.Competitive Profile Analysis E.Competitive postering
The basic functions of marketing include the following:
A.Customer analysis, selling products and services, and product and service planning B.Pricing, distribution, and marketing research C.Cost/benefit analysis D.A and B *E.A, B, and C*
Which statement below is false?
A.Dividends are sometimes paid out even if the funds could be better reinvested in the business, and/or even if the firm has to obtain outside sources of capital to pay for the dividends. B.Dividends are sometimes paid out even when the firm has incurred a negative annual net income. C.In 2014-2016, companies are aggressively boosting their dividends paid to shareholders. D.The benefits of paying dividends to investors must be balanced against the benefits of internally retaining funds, and there is no set formula on how to balance this trade-off. *E.All the statements are true.*
________________ is the process by which a person (1) determines whether to attempt a task, (2) works out the most effective way of reaching desired objectives, and (3) prepares to overcome unexpected difficulties with adequate resources.
A.Leading B.Strategizing C.Controlling D.Organizing *E.Planning*
Lorsch found that executives in successful companies are emotionally committed to the firm's culture, but he concluded that culture can inhibit strategic management in the following way:
A.Managers frequently miss the significance of changing external conditions because they are blinded by strongly held beliefs. B.When a particular culture has been effective in the past, the natural response is to stick with it in the future, even during times of major strategic change. C.Employees can get so attached to cultural products that they ignore strategies and tactics. *D.A and B* E.A, B, and C
Empirical indicators, characteristics of resources that enable a firm to implement strategies, include the following:
A.Rare and hard to imitate B.Scarce and unique C.Global and liquid D.Not easily substitutable *E.A and D*
A limitation of financial ratio analysis includes the following statement:
A.Seasonal factors can influence comparative financial ratios. B.Financial ratios are based on accounting data, and firms differ in their treatment of such items as depreciation, inventory valuation, R&D expenditures, pension plan costs, mergers, and taxes. C.Financial ratios are not very "actionable" in terms of revealing potential strategies needed (because they generally are based on performance of the overall firm). D.Departures from industry average financial ratios do not always indicate that a firm is doing especially well or badly. *E.All the statements are limitations.*
Which of the following statements is false?
A.The resource-based view approach to competitive advantage contends that internal resources are more important for a firm than external factors in achieving and sustaining competitive advantage. B.In contrast to the Industrial Organization (I/O) theory presented in the previous chapter, proponents of the RBV view/theory contend that organizational performance is primarily determined by internal resources. C.Resource-based view theory asserts that resources are actually what helps a firm exploit opportunities and neutralize threats. As indicated in the Academic Research Capsule 4-1, RBV theory may be helpful in identifying diversification targets. D.Empirical research by Neffke reveals that it is the nature of a firm's human capital, more than any other variable in the firm's value chain, that impacts that firm's choice of diversification targets. Specifically, firms select acquisition targets that offer opportunities to leverage existing human resources. *E.A through D are true statements.*
Cultural products include which of the following dimensions?
A.Values, beliefs, rites, and rituals B.Ceremonies, myths, stories, and legends C.Sagas, heroes, heroines, and symbols *D.All of the above* E.A and B above
Target recently joined Best Buy in offering to match online prices of rival retailers. Both companies are seeking to combat ________ by shoppers who check out products in their stores but buy them on rival's websites.
A.price hopping B.price shopping C.price checking *D.showrooming* E.price comparing
