BUS 450 Chapter 4 Quiz

In an IFE matrix, the weights of all factors included must add up to _______.

1.0

According to James Van​ Horne, the basic activities of​ finance/accounting consist of three decisions. What are the​ three?

The investment decision, the financing decision, and the dividend decision.

Which statement below is FALSE? a) Companies today are aggressively boosting their dividends paid to shareholders. b) Dividends are sometimes paid out even when the firm has incurred a negative annual net income. c) Companies should pay dividends regardless of changes in their revenue. d) 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. e) 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.

c) Companies should pay dividends regardless of changes in their revenue.

What are the four basic activities that comprise management?

planning, organizing, motivating, and controlling

________ is the process by which a person determines whether to attempt a task, works out the most effective way of reaching desired objectives, and prepares to overcome unexpected difficulties with adequate resources.

planning.

In 2018, global data analytics software is expected to reach ________ billion, a _________ percent increase from 2012.

$21.7; 64.

Human resource (HR) management includes activities such as:

disciplining, promoting, transferring, and demoting.

In an IFE matrix, how much more important is a weight of 0.16 than a weight of 0.07?

129 percent.

Spending on digital advertising recently surpassed television advertising and is expected to reach nearly ______ billion dollars in 2020.

280.

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 change the culture going forward. c) Employees can get so attached to cultural products that they ignore strategies and tactics. d) Culture is more important to executives than to employees. e) Employees oftentimes ignore culture.

a) Managers frequently miss the significance of changing external conditions because they are blinded by strongly held beliefs.

Which of the following statements is TRUE? a) When assigning weights and ratings in developing an IFE​ Matrix, focus on a narrow industry perspective. b) When assigning weights and ratings in developing an IFE​ Matrix, focus on the top three competitors in the industry. c) When assigning weights and ratings in developing an IFE​ Matrix, focus on a narrow industry perspective for strengths and a broad industry perspective for weaknesses. d) When assigning weights and ratings in developing an IFE​ Matrix, focus on all competitors in the industry. e) When assigning weights and ratings in developing and IFE​ Matrix, focus on a broad industry perspective.

a) When assigning weights and ratings in developing an IFE​ Matrix, focus on a narrow industry perspective.

To the extent possible, internal strength/weakness factors should meet the four AQCD criteria. Two of these criteria are ___________.

actionable and comparative.

Aspects of organizational culture listed in Table 4-4 include all but which of the following? a) socialize together outside of work b) analyze interest rate trends c) high ethical beliefs d) formal versus informal dress e) strong work ethic, arrive early, and leave late.

b) analyze interest rate trends.

Which of the following statements is TRUE? a) If a firm possesses many​ highly-weighted weaknesses, this is likely the result of effective​ strategies, so higher ratings in general are warranted for weaknesses. b) If a firm possesses many​ highly-weighted strengths, this is likely the result of effective​ strategies, so higher ratings in general are warranted for strengths and weaknesses. c) If a firm possesses many​ highly-weighted strengths, this is likely the result of effective​ strategies, so higher ratings in general are warranted for strengths. d) If a firm possesses many​ highly-weighted weaknesses, this is likely the result of effective​ strategies, so higher ratings in general are warranted for strengths. e) If a firm possesses many​ highly-weighted weaknesses, this is likely the result of effective​ strategies, so higher ratings in general are warranted for both strengths and weaknesses.

c) If a firm possesses many​ highly-weighted strengths, this is likely the result of effective​ strategies, so higher ratings in general are warranted for strengths.

The basic activities that comprise marketing include the following: a) benchmarking b) cost/benefit analysis c) marketing research and target market analysis d) pricing, distribution, and human resource management (HRM) e) financial ratio analysis

c) marketing research and target market analysis

The extent to which a manufacturing plant's output reaches its potential output is called _______, a key strategic variable.

capacity utilization.

Limitations of financial ratio analysis include all but which one of the following statements? a) Seasonal factors can influence comparative financial ratios. b) Departures from industry average financial ratios do not always indicate that a firm is doing especially well or badly. 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) Financial ratios are estimates of financial condition. e) 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.

d) Financial ratios are estimates of financial condition.

Which statement below is FALSE? a) When a key internal factor is both a strength and a​ weakness, the factor may be included twice in the IFE Matrix with a weight and rating assigned to each statement. b) In an IFE​ Matrix, the number of factors has no effect on the range of total weighted scores because the weights always add up to 1.0. c) IFE ratings are​ company-based whereas weights are​ industry-based. d) The average IFE matrix score is 2.0. e) Always sequence factors in an IFE matrix from highest to lowest weight.

d) The average IFE matrix score is 2.0.

Strengths that cannot be easily matched or imitated by competitors are called ____________.

distinctive competencies.

Which of the following statements is FALSE? a) The​ resource-based view​ (RBV) 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. d) Empirical research by Neffke reveals that more than any other variable in the​ firm's value​ chain, it is the nature of a​ firm's human capital that impacts that​ firm's choice of diversification targets.​ Specifically, firms select acquisition targets that offer opportunities to leverage existing human resources. e) The​ resource-based view​ (RBV) approach to competitive advantage contends that internal resources are equally important for a firm as external factors in achieving and sustaining competitive advantage.

e) The​ resource-based view​ (RBV) approach to competitive advantage contends that internal resources are equally important for a firm as external factors in achieving and sustaining competitive advantage.

In developing an IFE matrix, what is an important guideline?

include factors that are actionable, quantitative, comparative, and divisional (AQCD) to the extent possible.

In developing an IFE matrix, when can both internal and external factors be included?

never.

Empirical indicators, or characteristics of resources that enable a firm to implement strategies, include ___________.

not easily substitutable.

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.

showrooming

In developing an IFE matrix, do not allow more than 30 percent of the key factors to be financial ratios. Why?

since financial ratios are generally the result of many factors, knowing what particular strategies should be considered based on financial ratios is difficult.