Capstone midterm

For many firms, a key decision with great bearing on research and development spending is whether to be a "first mover" or a

"late follower"

A total weighted score of ______ is an external factor evaluation matrix indicated that an organization is responding in an outstanding wat to existing opportunities and threats in its industry

4.0

What occurs when two or more companies form a temporary partnership or consortium for the purpose of capitalizing on some oppertunity?

A joint venture

If suppliers as unreliable or too costly, which of these strategies may be appropriate?

Backward integration

How do line managers become "owners" of the strategy?

By involvement in the strategic management process

One difference between a competitive profile matrix (CPM) and an external factor evaluation is that

CPM includes both internal and external issues

T/F: An external audit focuses on identifying and evaluating trends and events within the control of management

False

T/F: Test marketing is used more frequently by industrial companies than consumer goods companies

False

T/F: The five major categories of variables known as external forces are: 1) economic forces, 2) social, cultural demographic and natural enviroment forces, 3) political governmental, and legal forces, 4) technological forces and 5) competitive forces.

False

T/F: capacity decisions concern distances from raw materials to production sites to customers.

False

Which of the three finance and accounting decisions involved determining the best capital structure for the firm?

Financing

During what stage of strategic management are a firms specific internal strengths and weaknesses determined?

Formulation

Whenever new firms can easily enter a particular industry, the intensity of competitiveness among firms tends to

Increase

According to greenley, strategic management offers all of the following benefits EXCEPT

Increased resistance to change

Which strategy would be most appropriate when the distinctive compentencies of two or more firms complement each other especially well>

Joint Venture

Which of the following is the first step in developing an IFE Matrix?

Listing key internal strengths and weaknesses

What are enduring statements of purpose that distinguish one business from other similar firms?

Mission statements

What are guides to decision making that address repetitive or recurring situations called?

Policies

When an industry relies heavily on government contracts, which forecasts can be the most important part of an external audit?

Political

which strategy is effective when new, but related products could be offered highly competitive prices?

Related diversification

When using external factor evaluation (EFE) matrix, what is done after multiplying each factors weight by its rating to determine a weighted score?

Summing the weighted scores for each variable to determine the total weighted score for the organization

____ is NOT a strategy implementation activity.

Taking corrective actions

In general, what happens to American goods in overseas markets when there is a strong dollar?

They are more expensive

T/F: First mover advantages refer to the benefits a firm may achieve by entering a new market or developing a new product or service prior to rival firms

True

T/F: Laser eye surgery would be considered a substitute product for eyeglasses and contact lenses

True

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

Which is not a reason joint ventures fail?

Venture risk was minimized

Which of these basic questions should a vision statement answer>

What do we want to become?

Under which condition would a cost leadership strategy be especially effective?

When the products of rival sellers are essentially identical an suppliers are readily available from any of several eager sellers

A systematic and ethical process for gathering and analyzing information about the competitions activities and general trends to further a business own goal is called

competitive intellegence

Military strategy is based on an assumption of ________ whereas business strategy is based on an assumption of _____

conflict;competition

What is not considered to be a basic activity or management?

consolidating

______ can reveal the demographic characteristics of an organizations customers

consumer profiling

Long-term objectives should be all of the following EXCEPT

continually changing

which of the nine essential components of a mission statement does this excerpt illustrate? "We believe our first responsibility is to the doctors, nurses, patients, mothers and all others who use our products and services"

customers

A firms strengths that cannot be easily matched or imitated by competitors are called

distinctive competencies

which strategy seeks to increase market share for present products or services in present markets through greater marketing efforts?

market penetration

A resource is valuable if it is rare, hard to imitate or

not easily substitutable

A pattern or behavior developed by an organization as it learns to cope with its problems of external adaption and internal integration, and that has worked well enough to be considered valid and to be taught to new members as the correct way to perceive, think and feel is called

organized culture

which function of management includes areas such as job design, job specifications, job analysis and unity of command

organizing

When companies are hired by other companies to take over funtional operations such as human resources, information systems, payroll, accounting, or customer service, this is called

outsourcing

All of the following are political, governmental, and legal variable that can represent key opportunities or threats to organizations EXCEPT

population changes by race, age, sex and level of affluence

in order to appeal to diverse stakeholders, an effective mission statement should be

reconciliatory

effective and carefully planned mission statements

require infrequent major changes, but are always subject to revision

What are the 5 forces that make up porters 5 forces model

rivalry among competing firms bargaining power of consumers bargaining power of suppliers potential development of substitute products potential entry of new competitors

which component of a mission statement addresses the firms distinctive competence or a major competitive advantage?

self-concept

The historical trend of people moving from _____ has drastically slowed

the northeast to the sunbelt

one of the benefits of having a clear mission and vision is the promotion of a sense of shared expectations among all managers and employees

true

A pasta manufacturers purchase of some pet food brands is an example of

unrelated diversification

All of these are pitfalls an organization should avoid in strategic management EXCEPT

using plans as a standard for measuring practice

good mission statements identify the ______ of a firms products to its customers

utility

what is not considered to be a basic function of marketing

value chain analysis

Backward integration is effective in all of these cases EXCEPT

when the advantages of stable prices are not particularly important

A form of bankruptcy in which all the organizations assets are sold in parts for their tangible worth is

chapter 7

When a domestic company first begins to export to india, it is an example of

market development

which ratio would be considered an activity ratio?

Average collection period

Procter & Gambles sale of many of its brands in order to focus on its core brands is an example of which type of strategy?

Divestiture

The goal of strategic management is to

achieve and maintain competitive advantage

The purpose of a mission statement i s to declare all of these excpet?

an annual finance plan

in the process of developing a mission statement, it is important to involve

as many managers as possible

according to McGinnis, a mission statement should be all of the following except

broad enough to include all ventures

The internet has transferred power from ______ to _______

businesses; individuals

an overly general mission statement that _______ could be dysfunctional

does not exclude any strategy alternatives

According to drucker, a business mission is the foundation for all of the following except?

employee wage rates

The act of strengthening employees sense of effectiveness by encouraging and rewarding them for participating in decision making and exercising initiative and imagination is referred to as

empowerment

IN mass retailing, big box companies like walmart, best buy and sears are

finding that less brick and mortar is better

Amazons start of rapid delivery services in some US cities is an example of which type of strategy?

forward integration

according to the comprehensive strategic management model, which step immediately follows the establishment of long term objectives?

generating, evaluating and selecting strategies

which groups would be classified as stakeholders?

governments, creditors, suppliers, and employees

Many economists say the current rash of trade constraints will make it ______ for global economic growth.

harder

When the products being purchased are standard or undifferentiated, it results in __________ bargaining power of consumers

higher

Strategy evaluation is necessary because

internal and external factors are constantly changing

The strategic management process

is a continuous process

What category of ratios measures a firms ability to meet its short term obligations?

liquidity