Capstone Midterm

Which of the following measures how many sales an organization can generate by each dollar of​ assets? A. Days of inventory B. Inventory turnover C. Accounts payable period D. Accounts receivable turnover E. Asset turnover

Asset turnover

All of the following are true statements about distinctive competencies EXCEPT​ ________. A. Apple is well known for its functional design abilitylong dash—the iPod and iPad are examples of distinctive competencies at the firm B. a key strength is always a distinctive competency at a firm C. a core competency that is superior to a​ competitor's core competency is called a​ "distinctive competency" D. General Electric is well known for its distinctive competency in management development E. a distinctive competency is sought by managers because a distinctive competency can give a firm a competitive advantage in the marketplace

a key strength is always a distinctive competency at a firm

All of the following are examples of a benefit of strategic information systems and technology to a strategic manager EXCEPT​ ________. A. advanced technology is a benefit to a strategic manager because he or she can design and manage the flow of information in an organization B. advanced technology helps a strategic manager scan the environment and control the activities in an organization C. advanced technology is not used by a strategic manager to gain a competitive advantage in the marketplace D. the information system at an organization can be a strength or a weakness in multiple areas of strategic management E. advanced technology enables the strategic manager to​ collect, store, and synthesize the information to answer strategic and operating questions

advanced technology is not used by a strategic manager to gain a competitive advantage in the marketplace

The​ _________ ratio measures the amount of inventory on hand in a given day. A. inventory turnover B. average collection period C. asset turnover D. days of inventory E. net working capital turnover

days of inventory

The four basic elements of the strategic management process are​ ________. A. environmental​ scanning, strategy​ formulation, physical​ resources, and evolution B. environmental​ scanning, weaknesses, physical​ resources, and evolution C. environmental​ scanning, strategy​ formulation, strategy​ implementation, and evaluation and control D. environmental​ scanning, strengths, strategy​ implementation, and evaluation and evolution E. environmental​ scanning, strategy​ formulation, strategy​ implementation, and evolution

environmental​ scanning, strategy​ formulation, strategy​ implementation, and evaluation and control

Archie Carroll proposed that the managers of business organizations have four​ responsibilities: economic,​ legal, ethical, and discretionary. The​ ________ responsibility of an​ organization's management is to follow the generally​ self-beliefs about behavior in a​ society; whereas the​ ________ responsibilities are the purely voluntary obligations a corporation assumes. A. ​legal; ethical B. ​ethical; legal C. ​economic; legal D. ethical; discretionary E. discretionary; legal

ethical; discretionary

Strategic management involves​ ________ in the organization. A. top-level managers only B. everyone C. the president D. the COO E. the CEO

everyone

A(n) ________ keeps a company from leaving an​ industry; whereas​ a(n) ________ is an obstruction that makes it difficult for a company to enter an industry. A. substitute​ product; entry barrier B. substitute​ product; complementor C. strategic​ group; exit barrier D. complementor; exit barrier E. exit​ barrier; entry barrier

exit​ barrier; entry barrier

All of the following are examples of a technological variable in the societal environment EXCEPT​ ________. A. total industry spending for​ R&D B. patent protection C. new product D. foreign trade regulation E. total government spending for​ R&D

foreign trade regulation

Managers that implement strategic plans in the global oil industry tend to cover​ ________ to​ ________ years;​ and, the planning horizon for oil exploration is up to​ ________ years. A. fifteen to​ twenty; 30 B. ten to​ fifteen; 25 C. five to​ ten; 20 D. four to​ five; 15 E. one to​ two; 5

four to​ five; 15

All of the following are true about changes in the technological part of the societal environment EXCEPT​ ________. A. a trend in the technological part of the societal environment that results in improvements in computer microprocessors can impact multiple industries B. genetically altered organisms is not considered technological breakthrough in the technological part of the societal environment C. developing​ biotechnology, including gene manipulation​ techniques, is already providing new approaches to dealing with disease and agriculture D. digital technology allows music and movies to be available instantly over the Internet or through cable service E. advances in nanotechnology are enabling companies to manufacture extremely small devices that are energy efficient

genetically altered organisms is not considered technological breakthrough in the technological part of the societal environment

Research indicates that boards with equity ownership use​ ________ to evaluate the CEO. A. self-nomination practices B. vague, qualitative criteria C. quantifiable, verifiable criteria D. mandatory retirement ages E. anti-takeover defenses

quantifiable, verifiable criteria

All of the following are examples of secondary stakeholders EXCEPT​ ________. A. competitors B. activist C. local communities D. trade associations E. shareholders

shareholders

The concept of​ ________ proposes that a private corporation has responsibilities to society that extend beyond making a profit. A. stakeholder analysis B. whistle-blowing C. social capital D. market capital E. social responsibility

social responsibility

Large corporations that use STEEP analysis categorize the​ ________ in any one geographic region into five areas and focus their scanning in each area on trends that have​ corporate-wide relevance. A. societal environment B. task environment C. technology D. industry analysis E. environmental scanning

societal environment

​________________ ratio is a​ short-term indicator of an​ organization's ability to pay its​ short-term liabilities out of its​ short-term assets. A. Cash B. Current C. Quick​ (acid test) D. Net profit margin E. Inventory to net working capital

Current

Which of the following is an example of an organization that failed to appease its stakeholders and give something back to the​ community? A. A press release about a recent scandal at the firm B. An organization that represents the economic performance of the firm in the community rather than promote its stock prices C. An organization that practices recycling D. An organization that develops new products and services and creates jobs in the community E. An organization that donates to charities

A press release about a recent scandal at the firm

All of the following are considered successful transformational leaders EXCEPT​ ________. A. Bernie Madoff B. Bill Gates C. Richard Branson D. Anita Roddick E. Meg Whitman

Bernie Madoff

​________ is based on the belief that morality is relative to a particular​ culture, society, or​ community; adherents of this argue that people should understand the practices of other​ societies, but NOT judge them. A. Role relativism B. Principled level C. Cultural relativism D. Social group relativism E. Naïïve relativism

Cultural relativism

Which of the following clarifies company expectations of employee conduct in various​ situations; and makes clear that the company expects its people to recognize the ethical dimensions in decisions and​ actions? A. Legal responsibilities B. Economy C. Social groups D. Profit maximization E. Code of ethics

Code of ethics

________ specifies how an organization expects its employee to behave while on the job. A. Social capital B. Stakeholder analysis C. Social responsibility D. Code of ethics E. Market capital

Code of ethics

Which of the following is NOT an example of a​ political-legal variable in the societal​ environment? A. Global warming legislation B. Environmental protection law C. Consumer activism D. Foreign trade regulations E. Antitrust regulation

Consumer activism

According to​ Kohlberg, which level of moral development are actions justified by an external code of​ conduct? A. Social group relativism B. Cultural relativism C. Principled D. Conventional E. Preconventional

Conventional

According to​ Kohlberg, which level of moral development is characterized by considerations of​ society's laws and​ norms? A. Stakeholder B. Conventional C. Transparency D. Preconventional E. Principled

Conventional

​________ refers to the relationship among groups in determining the direction and performance of the corporation. A. Stewardship theory B. Agency theory C. A corporation D. Corporate governance E. Conflict of interest

Corporate governance

_____________ ratio measures the number of one​ day's worth of inventory a company has on hand on a given day. A. Accounts receivable turnover B. Inventory turnover C. Asset turnover D. Days of inventory E. Net working capital turnover

Days of inventory

More than half of all publicly traded companies in the United States are incorporated in the state of​ ________. A. California B. Delaware C. Virginia D. Ohio E. New Jersey

Delaware

Porter stated that intense rivalry is related to the presence of several factors. Which of the following rivalry occurs frequently in the retail clothing industry when a number of retailers open outlets in the same​ location, thus taking away from each​ other? A. Rate of industry growth B. Diversity of rivals C. Capacity D. Product or service characteristic E. Height of exit barriers

Diversity of rivals

________ is the rate at which a​ firm's underlying​ resources, capabilities, or core competencies depreciate in value or become​ obsolete; whereas​ ________ is the rate at which a​ firm's underlying​ resources, capabilities, or core competencies can be duplicated by others. A. Replicability; imitability B. Durability; imitability C. Imitability; transparency D. Durability; competency E. Transparency; durability

Durability; imitability

Which of the following ratios is useful to an organization that needs to determine the amount of​ after-tax earnings that results from each share of common stock in an​ organization? A. Earnings per share B. Average collection period C. Fixed asset turnover D. Gross profit margin E. Return on equity

Earnings per share

​________ is the directing of activities toward the accomplishment of corporate​ objectives, and it sets the tone for the entire corporation. A. Strategic vision B. Strategic planning staff C. Executive leadership D. Transformational leaders E. Strategy implementation

Executive leadership

​________ knowledge is knowledge that can be easily articulated and​ communicated; whereas​ ________ knowledge is knowledge that is not easily communicated because it is deeply rooted in employee experience or in a​ corporation's culture. A. Explicit; tacit B. Imitability; durability C. Explicit; replicability D. Durability; tacit E. Tacit; explicit

Explicit; tacit

Which of the following is NOT an example of a tactic a human resource manager can use to improve the quality of work life and diversity at an​ organization? A. Introduce an innovative reward system. B. Introduce participative problem solving. C. Forbid a leader to move up the corporate ladder. D. Improve the work environment. E. Restructure work.

Forbid a leader to move up the corporate ladder.

________ urges a return to a​ laissez-faire worldwide economy with minimal government regulation and argued against the concept of social responsibility as a function of business. A. Margolis B. Friedman C. Carroll D. Byron E. Walsh

Friedman

All of the following are correct statements about gross domestic product​ (GDP) EXCEPT​ ________. A. GDP is used worldwide and GDP measures the total output of goods and services within a​ country's borders B. GDP is used only in the United States to measure the total output of goods and services within a​ country's borders C. the amount of GDP change from one year to the next year indicates how much that​ country's economy is growing D. a strategic manager uses GDP when he or she prepares a scenario for the pro forma financial statements E. a strategic manager must adjust his or her mock scenarios to adjust for a​ country's specific conditions

GDP is used only in the United States to measure the total output of goods and services within a​ country's borders

Which of the following is a grouping of strategy types by level in the​ organization? A. Corporate strategy B. Functional strategy C. Hierarchy of strategy D. Business strategy E. Strategy implementation

Hierarchy of strategy

​________ refers to the mix of people in the workplace of different​ race, culture, and background. A. Divisional structure B. Human diversity C. Radio-frequency identification​ (RFID) D. Supply chain management E. Intranet

Human diversity

Which of the following terms is used by managers in the workforce today to describe new​ products, services,​ methods, and organizational approaches that allow the business to achieve extraordinary​ returns? A. Strategic management B. Triple bottom line C. Globalization D. Innovation E. Learning organization

Innovation

Which of the following is NOT an example of a sociocultural variable in the societal​ environment? A. Lifestyle change B. Rate of family formation C. Internet availability D. Age E. Growth rate of population

Internet availability

Which of the following ratios is useful to an organization that needs to measure inventory balance in the​ workplace? A. Inventory to net working capital B. Cash ratio C. Return on investment D. Gross profit margin E. Net profit margin

Inventory to net working capital

To compute the total number of turnovers or sales of the average inventory of finished goods during a specific time an organization would use​ _____________ratio. A. Fixed asset turnover B. Asset turnover C. Inventory turnover D. Days of inventory E. Net working capital turnover

Inventory turnover

All of the following statements are true regarding the key performance indictors​ (KPI) EXCEPT​ ____________. A. KPI are determined by the economic characteristics within that industry. B. KPI can be summarized using an industry matrix. C. KPI are determined by the technological characteristics within that industry. D. KPI are indicators that are constant from industry to industry E. KPI are crucial in determining a​ company's ability to succeed within that industry

KPI are indicators that are constant from industry to industry

Which of the following is the Japanese term used for a set of companies with interlocking business relationships and​ shareholdings? A. Codetermination B. Indirect interlock C. Due care D. Staggered board E. Keiretsu

Keiretsu

According to​ ________, a​ person's ethical behavior is affected by his or her level of moral​ development, certain personality​ variables, and such situational factors as the job​ itself, the​ supervisor, and the organizational culture. A. Kohlberg B. Byron C. Carroll D. Porter and Kramer E. Friedman

Kohlberg

​________ refers to formal codes that permit or forbid certain behavior and might or might NOT enforce ethics. A. Legitimacy B. Urgency C. Ethics D. Laws E. Morality

Laws

Which of the following choices is defined as an organization skilled at​ creating, acquiring, and transferring knowledge at modifying its behavior to reflect new knowledge and​ insights? A. Strategic flexibility B. Population ecology C. Institutional theory D. Learning organization E. Sustainability

Learning organization

​________ refers to the situation where it is difficult or expensive for the owners to verify what the agents are actually doing. A. Codetermination B. Due care C. Conflict of interest D. Interlocking directorate E. Moral hazard

Moral hazard

Some people justify their seemingly unethical positions by arguing that there is no one absolute code of ethics and that morality is relative. Which of the following is the term used to claim that morality is relative to some​ personal, social, or cultural​ standard? A. Conventional B. Norms C. Principled level D. Laws E. Moral relativism

Moral relativism

​________ constitute(s)​ one's rules of personal behavior based on religious or psychological grounds. A. Legitimacy B. Laws C. Ethics D. Morality E. Urgency

Morality

Similar to the New York Stock​ Exchange, ________ rules require that nominations for new directors be made by either a nominating committee of independent outsiders or by a majority of independent outside directors. A. Facebook B. NASDAQ C. AFL-CIO D. Banking Act of 1933 E. Clayton Act

NASDAQ

​________ is based on the belief that all moral decisions are deeply personal and that individuals have the right to run their own lives. A. Cultural relativism B. Principled level C. Social group relativism D. Naïïve relativism E. Role relativism

Naïïve relativism

​__________________ ratio is useful to an organization that needs to determine the amount of​ after-tax profits that each dollar of sales generates in the workplace. A. Gross profit margin B. Return on investment C. Cash D. Net profit margin E. Return on equity

Net profit margin

Which regional trade association has a goal to improve trade among the three member countries rather than complete economic​ integration? A. Association of Southeast Asian Nations​ (ASEAN) B. Union of South American Nations C. European Union​ (EU) D. North American Free Trade Agreement​ (NAFTA) E. Mercosur

North American Free Trade Agreement​ (NAFTA)

Which of the following triggering events would occur if a​ manager's performance does not meet​ expectations? A. External intervention B. New CEO C. Threat of a change in ownership D. Strategic inflection point E. Performance gap

Performance gap

​___________________________ is a recent forecasting technique enabled by easy access to the Internet. A. Statistical modeling B. Cross-impact analysis C. Brainstorming D. Prediction markets E. Delphi technique

Prediction markets

Which of the following is the rate of interest a bank can charge consumers on its​ low-risk loans in the​ marketplace? A. Index of sustainable growth B. Constant dollars C. Prime interest rate D. Gross domestic product​ (GDP) E. Common-size statements

Prime interest rate

​________________ ratio measures the​ organization's ability to pay off its​ short-term obligations out of current​ assets. A. Inventory to net working capital B. Net profit margin C. Constant dollars D. Cash E. Quick​ (acid test)

Quick​ (acid test)

The U.S. Securities and Exchange Commission​ (SEC) requires that mutual funds publicly disclose the proxy votes cast at company board meetings in its portfolio. Which of the following choices describes the benefit of this​ action? A. Mandatory retirement ages B. Reduction in rubberstamping management proposals C. Anti-takeover defenses D. Self-nomination practices E. Social needs of society

Reduction in rubberstamping management proposals

________________ ratio measures the rate of return on the book value of the total investment of a shareholder in an organization. A. Gross profit margin B. Earnings per share C. Fixed asset turnover D. Return on equity E. Return on investment

Return on equity

An organization that needs to measure the rate of return on the total assets in the workplace would use​ ___________ ratio. A. Cash B. Earnings per share C. Return on investment D. Gross profit margin E. Return on equity

Return on investment

________ is based on the belief that all social roles carry with them certain obligations to that​ role, moral decisions are deeply​ personal, and that individuals have the right to run their own lives. A. Naïïve relativism B. Cultural relativism C. Role relativism D. Principled level E. Social group relativism

Role relativism

In response to the many corporate scandals uncovered since​ 2000, the U.S. Congress passed the​ ________ in June 2002 to protect shareholders from the excesses and failed oversight that characterized criminal activities at many prominent firms. A. Sarbanes-Oxley Act B. Banking Act of 1933 C. NASDAQ D. AFL-CIO E. Clayton Act

Sarbanes-Oxley Act

​________ is based on the belief that morality is simply a matter of following the norms of an​ individual's peer group. A. Naïïve relativism B. Social group relativism C. Principled level D. Role relativism E. Cultural relativism

Social group relativism

In which of the​ eight-step strategic​ decision-making process would managers determine the strategic factors that pose opportunities and​ threats? A. Step​ 2: Review Corporate Governance B. Step​ 3: Scan and Assess the External Environment C. Step​ 1: Evaluate Current Performance Results D. Step​ 4: Scan and Assess the Internal Corporate Environment E. Step​ 5: Analyze Strategic Factors

Step​ 3: Scan and Assess the External Environment

In which of the​ eight-step strategic​ decision-making process would managers determine the strategic factors that are strengths​ (especially core​ competencies) and​ weaknesses? A. Step​ 5: Analyze Strategic Factors B. Step​ 2: Review Corporate Governance C. Step​ 1: Evaluate Current Performance Results D. Step​ 4: Scan and Assess the Internal Corporate Environment E. Step​ 3: Scan and Assess the Internal Corporate Environment

Step​ 4: Scan and Assess the Internal Corporate Environment

In which of the​ eight-step strategic​ decision-making process would managers observe feedback systems and the control of activities to ensure they minimize deviation from​ plans? A. Step​ 4: Scan and Assess the Internal Corporate Environment B. Step​ 5: Analyze Strategic Factors C. Step​ 8: Evaluate Implemented Strategies D. Step​ 6: Generate,​ Evaluate, and Select the Best Alternative Strategy E. Step​ 7: Implement Selected Strategies

Step​ 8: Evaluate Implemented Strategies

Which of the following is NOT true about strategic​ audits? A. Managers use strategic audits to implement selected strategies. B. A strategic audit is used as a diagnostic tool to scan and assess the external environment. C. Strategic audits are all inclusive lists. D. Managers use strategic audits to evaluate current performance results. E. A strategic audit is used to analyze problem areas in the organization.

Strategic audits are all inclusive lists.

Which of the following is a true statement about strategic​ management? A. Strategic management is not always a formal process. B. Managers that implement strategic management are unable to understand strategies in rapidly changing environments. C. Managers that implement strategic management have less focus on what is strategically important to the organizations today. D. Strategic management is never used to emphasize​ long-term performance. E. Managers use modern technology instead of strategic management to gain a clearer sense of strategic vision for the firm.

Strategic management is not always a formal process.

​________ is a process by which strategies and policies are put into action through the development of​ programs, budgets, and procedures. A. Strategy implementation B. Strategic factors C. Strategy formulation D. Environmental scanning E. Internal environment

Strategy implementation

In strategic​ management, what does the acronym SWOT stand​ for? A. Strategy, Weakness,​ Organization, and Threats B. Strengths, Weaknesses,​ Opportunities, and Threats C. Suppliers, Wildlife,​ Workforce, Operate, Operation and Trade D. Strength, Weakness,​ Opportunities, and Technology E. Strategic, Weakness,​ Objective, and Task

Strengths, Weaknesses,​ Opportunities, and Threats

​________ is the forming of networks for sourcing raw​ materials, manufacturing products or creating​ services, storing and distributing​ goods, and delivering them to customers. A. Value chain management B. Supply chain management C. Radio-frequency identification​ (RFID) tag D. Divisional structure E. IFAS Table

Supply chain management

​________ is the process of taking a new technology from the laboratory to the marketplace. A. Technological competence B. Process​ R&D C. Basic​ R&D D. Technology transfer E. Product​ R&D

Technology transfer

Marks​ & Spencer​ (M&S) leads the way to sustainability. All of the following are examples of activities conducted by the firm EXCEPT​ ________________. A. M&S is not done with sustainability program and plans to continue. B. The idea that waste is a given in the operation of businesses is accepted by​ M&S C. M&S has achieved its goal of going​ "carbon neutral." D. M&S provides​ 20% of the bonuses for the CEO and the directors of the company. E. M&S recycles​ 90% of its food waste and​ 100% of office waste.

The idea that waste is a given in the operation of businesses is accepted by​ M&S

All of the following statements are true about outside directors EXCEPT​ ________. A. There is clear evidence indicating that a high proportion of outsiders on a board results in improved financial performance B. The board of directors of a typical large U.S. corporation has an average of 10 directors​ (2 are inside directors and 8 are outside​ directors) C. There is a trend in the United States to increase the number of outsiders on boards and to reduce the total size of the board D. Outside directors might be executives of other firms but are not employees of the​ board's corporation E. Outsiders account for​ 80% of board members in large U.S. corporations

There is clear evidence indicating that a high proportion of outsiders on a board results in improved financial performance

Which of the following is NOT an event or characteristic that occurs in the third step of the stakeholder​ analysis? A. The firm considers the needs and wants of its secondary stakeholders in any strategic decision. B. The primary decision criteria used by management is generally economic. C. There is room for misunderstanding because the​ corporation's relationship with each stakeholder is not covered by written or verbal agreements. D. The secondary stakeholders may be ignored or discounted as unimportant. E. Individuals and groups can estimate the effect on each stakeholder group from any particular strategic decision.

There is room for misunderstanding because the​ corporation's relationship with each stakeholder is not covered by written or verbal agreements.

________ provide(s) change and movement in an organization by providing a vision for​ change, and they command respect and execute effective strategy formulation and implementation. A. Strategic planning staff B. Affiliated directors C. Family directors D. Executive leadership E. Transformational leaders

Transformational leaders

Which of the following terms is used by managers in the workplace today to describe a​ business's sustainability? A. Learning organization B. Strategic management C. Globalization D. Innovation E. Triple bottom line

Triple bottom line

A(n) ________ refers to the use of​ wikis, blogs,​ RSS, social​ networks, podcasts, and​ mash-ups through company websites to forge tighter links with customers and suppliers. A. supply chain management B. value chain management C. IFAS Table D. radio-frequency identification​ (RFID) tag E. Web 2.0

Web 2.0

Which of the following is used to describe those employees who report illegal or unethical behavior on the part of​ others? A. Market capital B. Stakeholder analysis C. Social responsibility D. Whistle-blowers E. Social capital

Whistle-blowers

All of the following are viable methods individuals and groups use to help investors evaluate a​ firm's corporate governance EXCEPT​ ________. A. Morningstar B. Wikipedia C. The Corporate Library D. Standard​ & Poor​ (S&P) E. Moody's

Wikipedia

The​ ________ theory states that problems arise in corporations because the agents​ (top management) are not willing to bear responsibility for their decisions unless they own a substantial amount of stock in the corporation. A. stewardship B. corporation C. transformational D. board of director E. agency

agency

All of the following are correct statements about substitute products EXCEPT​ ________. A. tea can be considered a substitute for coffee B. always an easy​ task, the identification of substitute products or services means searching for products or services that can perform the same​ function, they have the same​ appearance, and they always appear to be easily substitutable C. a substitute product is a product that appears to be different but can satisfy the same need as another product D. to the extent that switching costs are​ low, substitutes might have a strong effect on an industry E. texting is a substitute for email

always an easy​ task, the identification of substitute products or services means searching for products or services that can perform the same​ function, they have the same​ appearance, and they always appear to be easily substitutable

According to​ Porter, intense rivalry is related to the presence of several factors. All of the following are examples of factors that indicate intense rivalry EXCEPT​ ________. A. capacity B. product or service characteristic C. amount of variable costs D. number of competitors E. rate of industry growth

amount of variable costs

Recall that socially responsible companies utilize a number of activities to appease and give something back to its stakeholders. All of the following are examples of firms that are socially responsible and give back to stakeholders EXCEPT​ ________. A. an organization that supports local charities in the community B. an organization that practices energy savings techniques C. an organization that intentionally misrepresents its economic performance primarily to influence stock prices D. an organization with positive press releases that supports the economic community it serves E. an organization that actively recycles to help the environment

an organization that intentionally misrepresents its economic performance primarily to influence stock prices

All of the following are examples of a global organization that uses environmental sustainability efforts to improve its bottom line EXCEPT​ ________. A. an organization that achieves its goal of going​ "carbon neutral" in global operations B. an organization that implements a​ five-year plan to become the most sustainable major retailer in the world C. an organization that recycles​ 89% of food waste from its international stores D. an organization that maximizes products and services in global operations because they do not implement recycling operations in global operations E. an organization that works with suppliers to cut food packaging by​ 20% by recycling food packages

an organization that maximizes products and services in global operations because they do not implement recycling operations in global operations

The​ ________ planning phase emphasizes time horizons of one​ year; whereas the​ ________ planning phase focuses on time horizons of​ three-to-five years with no help from consultants. A. basic​ financial; externally oriented B. strategic​ management; basic financial C. basic​ financial; forecast-based D. forecast-based; strategic management E. forecast-based; basic financial

basic​ financial; forecast-based

​A(n) ________ model is a​ company's method for making money in the current business​ environment; whereas a strategic manager can use​ a(n) ________ model when he or she waits until a product becomes standardized and then enters the market with a​ low-priced, low-margin product that appeals to the mass market. A. time; efficiency B. blockbuster; time C. ​business; switchboard D. business; efficiency E. advertising; entrepreneurial

business; efficiency

​A(n) ________ refers to a​ corporation's ability to exploit its​ resources; whereas a​ ________ capability is constantly being changed and reconfigured to make it more adaptive to an uncertain environment. A. explicit​ knowledge; time mode B. efficiency​ model; value chain C. capability; dynamic capability D. business​ model; core E. tacit​ knowledge; blockbuster model

capability; dynamic capability

All of the following are important financial ratios EXCEPT​ ________ ratio. A. liquidity B. activity C. leverage D. case E. profitability

case

All of the following are true about the case analysis method EXCEPT​ ________. A. case analysis prevents the examination of successful audits in an organization because the case analysis excludes an analysis of the key environmental variables in an organization B. the case method approach provides individuals the ability to make and implement strategic decisions about an organization C. cases present actual business situations D. a case method provides strategic managers the opportunity to move from a narrow specialized view that emphasizes functional techniques to a​ broader, less precise analysis of the overall corporation E. in a case​ analysis, strategic managers can analyze a situation in which a manager had to make​ long-term corporate decisions

case analysis prevents the examination of successful audits in an organization because the case analysis excludes an analysis of the key environmental variables in an organization

To measure the amount of capital in an organization that is in cash or cash equivalents an organization can use the​ __________________ratio. A. cash B. net profit margin C. return on equity D. gross profit margin E. return on investment

cash

Entrepreneurial and other​ fast-growing firms form​ ________, or geographic concentrations of interconnected companies and industries to build or upgrade a core competency. A. clusters B. replicability C. durability D. imitability E. transferability

clusters

Various studies indicate that an increasing number of companies are developing​ ________ and implementing ethics training workshops and seminars to promote ethical behavior in the workplace. A. code of ethics B. society's laws C. profit maximization D. social groups E. peer groups

code of ethics

All of the following are correct statements about​ common-size statements EXCEPT​ ________. A. ​common-size statements are used to identify trends in cost of goods sold as a percentage of sales B. common-size statements are income statements and balance sheets C. common-size statements are used to identify trends in various​ categories, such as cost of goods sold as a percentage of​ sales, and sales is always the numerator D. strategic managers who convert statements to​ common-size statements look for trends in specific​ items, such as cost of goods​ sold, when compared to the​ organization's historical figures E. strategic managers use​ common-size financial statements to make comparisons with industry data to determine whether fluctuations are merely a reflection of​ industry-wide trends

common-size statements are used to identify trends in various​ categories, such as cost of goods sold as a percentage of​ sales, and sales is always the numerator

​A(n) ________ is a​ cross-functional integration and coordination of​ capabilities; whereas a​ ________ consists of business processes and routines that manage the interaction among resources to turn inputs into outputs. A. business​ model; core competency B. tacit​ knowledge; blockbuster model C. efficiency​ model; value chain D. explicit​ knowledge; time model E. competency; capability

competency; capability

A(n) ________ arises when the desires or objectives of the owners and the agents conflict. A. interlocking directorate B. codetermination C. due care D. conflict of interest E. moral hazard

conflict of interest

An executive manager that makes a​ long-run strategic decision that commits substantial resources and demand a great deal of commitment from people at all levels are considered​ ________ decisions. A. entrepreneurial mode B. directive C. adaptive mode D. rare E. consequential

consequential

An organization uses​ ______________ to adjust the sales and net income for inflation to determine the true financial performance of an organization over multiple years. A. Return on equity B. cash ratio C. gross profit margin D. constant dollars E. net profit margin

constant dollars

A strategic manager continually reinvests in a core competency or risks it becoming​ a(n) ________ or a strength that over time matures and might become a weakness. A. business model B. efficiency model C. core rigidity or deficiency D. distinctive competency E. tacit knowledge

core rigidity or deficiency

​A(n) ________ competency is a collection of competencies that crosses divisional​ boundaries, is widespread within the​ corporation, and is something that the corporation can do exceedingly​ well; whereas​ ________ competency exists when competencies are superior to the competencies of a competitor. A. explicit​ knowledge; time model B. business​ model; core C. tacit​ knowledge; blockbuster model D. efficiency​ model; value chain E. core; distinctive

core; distinctive

All of the following are true about trends in corporate information systems and technology EXCEPT​ ________. A. higher knowledge requirements derived from greater emphasis on service in the marketplace B. decrease in intranets for internal communication C. increase in use of extranets for logistics and distributions D. increase in the use of Internet for marketing E. increasing globalization of trade and corporate activity

decrease in intranets for internal communication

Archie Carroll proposed that the managers of business organizations have four​ responsibilities: economic,​ legal, ethical, and discretionary. The​ ________ responsibilities of a business​ organization's management are to produce goods and services of value to society so that the firm can repay its creditors and increase the wealth of its​ shareholders; whereas the​ ________ responsibilities are defined by governments in laws that management is expected to obey. A. discretionary; legal B. ethical; discretionary C. economic; legal D. discretionary; ethical E. ​legal; ethical

economic; legal

​A(n) ________ force regulates the exchange of​ materials, money,​ energy, and​ information; whereas​ ________ force generates​ problem-solving inventions. A. political-legal; sociocultural B. sociocultural; economic C. economic; technological D. technological; sociocultural E. sociocultural; political-legal

economic; technological

All of the following statements are true about globalization EXCEPT​ ________. A. as more industries become​ global, strategic management allows managers to position a company for​ long-term competitive advantage B. globalization is the integrated internationalization of markets and corporations C. globalization has not impacted the way businesses do business D. as more industries become​ global, strategic management is becoming an increasingly important way to keep track of international developments E. the worldwide availability of the Internet and supply chain logistical improvements permits companies to locate anywhere and work with multiple partners to serve any market

globalization has not impacted the way businesses do business

An organization can use​ __________ ratio to determine the total margin an organization requires to cover expenses beyond the cost of goods sold and continue to earn a profit in the workplace. A. gross profit margin B. return on investment C. return on equity D. fixed asset turnover E. earnings per share

gross profit margin

An example of​ a(n) ________ is the number of​ employees, the employee​ skills, and employee motivation at an organization. A. human asset B. intangible asset C. location D. tangible asset E. plant

human asset

In​ ________ industries such as information​ technology, competitive advantage comes from an​ up-to-date knowledge of environmental trends and competitive​ activity, coupled with a willingness to risk a current advantage for a possible new advantage. A. consolidated B. multidomestic C. fragmented D. regional E. hypercompetitive

hypercompetitive

All of the following statements are true about the Board of Directors EXCEPT​ ________. A. the board of directors is charged by law to act with due care B. corporations have found that they need​ directors' and​ officers' liability insurance to attract people to become members of boards of directors C. in a legal​ sense, the board of directors is required to manage the affairs of the corporation D. if a director or the board as a whole fails to act with due care​ and, as a​ result, the corporation is in some way​ harmed, the careless director or directors can be held personally liable for the harm done E. a survey of outside directors revealed that more than​ 40% had been named as part of lawsuits against corporations

in a legal​ sense, the board of directors is required to manage the affairs of the corporation

​A(n) ________ is useful to an organization because it indicates how much of the growth rate of sales can be sustained by internally generated funds. A. gross domestic product​ (GDP) B. common-size statement C. constant dollar D. index of sustainable growth E. prime interest rate

index of sustainable growth

A(n) ________ occurs when two corporations have directors who also serve on the board of a third​ firm, such as a bank. A. indirect interlock B. due care C. codetermination D. interlocking directorate E. staggered board

indirect interlock

An examination of the important stakeholder​ groups, like suppliers and​ customers, in a particular​ corporation's task environment is a part of the​ ________. A. externalities B. carbon footprint C. industry analysis D. natural environment E. societal environment

industry analysis

An example of​ a(n) ________ is a job shop and the item is normally processed​ sequentially, but the work and sequence of the process vary. A. operating leverage B. continuous system C. experience curve D. intermittent system E. economies of scale

intermittent system

​A(n) ________ is an information network within an organization that also has access to the Worldwide Internet. A. ​radio-frequency identification​ (RFID) tag B. IFAS Table C. intranet D. extranet E. supply chain management

intranet

All of the following are leverage ratios EXCEPT​ ________. A. long-term debt to capital structure B. inventory turnover C. debt-to-equity ratio D. times interest earned E. debt-to-asset ratio

inventory turnover

All of the following are correct statements about intermittent systems EXCEPT​ ________. A. job shops are not very labor intensive and a job shop has a fairly high​ break-even point B. after the sales at a job shop break​ even, the huge variable costs as a percentage of total costs keep the profit per unit at a very low level C. strategic managers understand that after a job​ shop's sales reach​ break-even, the huge variable costs as a percentage of total costs keep the profit per unit at a low level D. intermittent systems process items​ sequentially, but the work and sequence of the process vary E. the advantage of a job shop compared to other firms in the marketplace is that it can operate at low levels and maintain profitability in the marketplace

job shops are not very labor intensive and a job shop has a fairly high​ break-even point

Learning organizations are skilled at each of the following main activities EXCEPT​ ________. A. experimenting with new approaches B. solving problems systematically C. learning from the past history instead of the experiences of others D. transferring knowledge quickly and efficiently within the organization E. learning from their own experiences

learning from the past history instead of the experiences of others

When compensation committee members are significant​ shareholders, they tend to offer the CEO​ ________ but with a higher incentive component than do compensation committee members who own little to no stock. A. mandatory retirement ages B. reduction in rubberstamping management proposals C. ​self-nomination practices D. less salary E. anti-takeover defenses

less salary

Managers divide the competition into four categories because it enables the strategic manager not only to monitor the effectiveness of certain strategic​ orientations, but also to develop scenarios of future industry developments. All of the following are categories used to divide competition EXCEPT​ ________. A. reactors B. analyzers C. prospectors D. messengers E. defenders

messengers

All of the following are components of strategy formulation EXCEPT​ ________. A. specifying specific objectives B. monitoring performance results C. crafting the corporate mission D. setting policy guidelines E. defining the competitive advantages of the business strategy

monitoring performance results

To the extent that pressure for coordination is strong and the pressure for local responsiveness is weak for the​ ________ within a particular​ industry, that industry will tend to become global. A. multidomestic B. fragmented C. exit barrier D. global E. multinational

multinational

An executive manager that makes​ long-run future strategic decisions with characteristics that are unusual and typically have no precedent to follow would most likely make decisions that are​ ________. A. planning B. adaptive C. rare D. directive E. consequential

rare

The​ ________ includes physical​ resources, wildlife, and climate that are an inherent part of existence on​ Earth; whereas the​ ________ is​ mankind's social system that includes general forces that do not directly touch on the​ short-run activities of the​ organization, but that can influence its​ long-term decisions. A. natural​ environment; societal environment B. societal​ environment; environmental scanning C. environmental​ scanning; natural environment D. industry​ analysis; task environment E. task​ environment; industry analysis

natural​ environment; societal environment

All of the following are activity ratios EXCEPT​ ________. A. asset turnover B. days of inventory C. net working capital turnover D. fixed asset turnover E. net profit margin

net profit margin

An organization measures how effectively the net working capital generates sales in an organization through the​ _________ ratio. A. days of inventory B. asset turnover C. net working capital turnover D. inventory turnover E. accounts receivable turnover

net working capital turnover

All of the following are examples of economic variables in the societal environment EXCEPT​ ________. A. interest rates B. inflation rates C. money supply D. GDP trends E. patent protection

patent protection

Based on the degree of involvement in strategic management the most passive boards are referred to as​ ____________________. A. phantom B. rubber stamp C. nominal participation D. minimal review E. catalyst

phantom

The theory that suggests that once an organization is successfully established in a particular environmental​ niche, it is unable to adapt to changing conditions is the​ ________ theory. A. strategic flexibility B. institution C. population ecology D. organizational learning E. strategic choice perspective

population ecology

The utilitarian approach proposes that actions and plans should be judged by their consequences. Research reveals that stakeholders who have the ability to affect the company have​ ________; whereas stakeholders that have​ ________ have a legal or moral claim on company resources. A. power; legitimacy B. power; urgency C. urgency; legitimacy D. morality; urgency E. legitimacy; morality

power; legitimacy

​A(n) ________ provides a checklist of questions that enables a systematic analysis to be made of various corporate functions and activities. A. trade association B. strategic audit C. institutional theory D. learning organization E. performance evaluation

strategic audit

A(n) ________ is a set of business units or firms that​ "pursue similar strategies with similar​ resources." Categorizing firms in any one industry into a set of strategic groups is a great way to understand the competitive environment. A. new entrant B. entry barrier C. strategic group D. EFAS Table E. industry scenario

strategic group

All of the following are examples of how information systems and technology can contribute to corporate performance EXCEPT​ ________. A. strategic managers fail to use information technology as a strategic weapon in gaining a competitive advantage in the marketplace B. information systems technology helps managers focus on productivity improvements because information technology systems can help customer support and it also helps in distribution functions and logistics C. information systems and technology are used to automate individual​ tasks, such as keeping track of client expenses D. information systems and technology is used to enhance marketing and operations in the workplace E. information systems or technology is used to automate and enhance back office processes

strategic managers fail to use information technology as a strategic weapon in gaining a competitive advantage in the marketplace

All of the following are true statements about useful economic measures EXCEPT​ ________. A. strategic managers never adjust for inflation when the organization competes in emerging economies B. strategic managers use the gross domestic product when the strategic manager prepares a scenario for the pro forma financial statements C. it is important for a strategic manager who operates in emerging economies adjust for inflation D. to make effective strategic​ decisions, a strategic manager should note the level of the prime interest rate at the time of the case E. strategic managers adjust sales and net income for inflation to arrive at a​ "true" financial performance inconstant dollars when the company is analyzed over many years

strategic managers never adjust for inflation when the organization competes in emerging economies

Sometimes referred to as operational​ planning, ________ often involves​ day-to-day decisions in resource allocation. A. the internal environment B. environmental scanning C. strategy implementation D. strategic factors E. strategy formulation

strategy implementation

The board of directors is responsible for all of the following tasks and responsibilities EXCEPT​ ________. A. strategy of the organization B. succession planning for the board but not for top management C. risk versus initiative and the overall risk profile of the organization D. board leadership including the​ processes, makeup, and output of the board E. sustainability

succession planning for the board but not for top management

The concept of​ ________ argues that a​ firm's ability to continuously renew itself for​ long-term success and survival is dependent not only upon the greater economic and social system of which it is a​ part, but also upon the natural ecosystem in which the firm is embedded. A. externalities B. complementor C. sustainability D. industry E. defender

sustainability

Strategic managers scan the​ ________ to analyze relevant elements in the​ environment, and the analysis takes the form of individual reports written by various people in different divisions of the firm. A. societal environment B. industry analysis C. task environment D. environmental environment E. natural environment

task environment

All of the following are true about top management responsibilities EXCEPT​ ________. A. top​ management's job is multidimensional and is oriented toward the welfare of the total organization B. tasks are typically divided among the​ lower-level employees C. a diversity of skills and abilities among top management is important D. top management responsibilities involve getting things accomplished through and with others to meet the corporate objectives E. specific top management tasks vary from firm to firm and are developed from an analysis of the​ mission, objectives,​ strategies, and key activities of the corporation

tasks are typically divided among the​ lower-level employees

​A(n) ________ is an employee who works​ regularly, but not exclusively from home. A. telecommuter B. virtual team C. concurrent engineering D. autonomous work teams E. flexible manufacturing

telecommuter

All of the following are correct about the EFAS Table EXCEPT​ ________. A. strategic managers use the EFAS Table to organize the external factors into the generally accepted categories of opportunities and threats B. strategic managers use the EFAS Table to analyze how well a particular​ company's management is responding to specific factors in light of the perceived importance of these factors to the company C. in Column 4 of the EFAS​ Table, the total weighted score for an average firm is always a 3.0 D. in Column 1 of the EFAS​ Table, managers list the 8 to 10 most important opportunities and threats facing the company E. the EFAS Table is ideal because after managers complete the EFAS​ Table, they need to scan the societal and task environments and identify a number of likely internal factors for their particular corporation

the EFAS Table is ideal because after managers complete the EFAS​ Table, they need to scan the societal and task environments and identify a number of likely internal factors for their particular corporation

All of the following statements are true about agency theory EXCEPT​ ________. A. the agency theory states that a majority of a board needs to be from outside the firm so that top management is prevented from acting selfishly to the detriment of the shareholders B. the agency theory proposes​ that, because of their long tenure with the​ corporation, insiders tend to identify with the corporation and its success C. proponents of the agency theory argue that managers in​ management-controlled firms select less risky strategies with quick payoffs to keep their jobs D. the agency theory proposes that​ management-controlled firms with weak boards are more likely to go into debt to diversify into unrelated markets E. according to the agency​ theory, the likelihood that problems will occur increases when stock is widely​ held, when the board of directors is composed of people who know little of the company or who are personal friends with top management

the agency theory proposes​ that, because of their long tenure with the​ corporation, insiders tend to identify with the corporation and its success

All of the following are examples of entry barriers EXCEPT​ ________. A. switching costs B. access to distribution channels C. capital requirements D. the brewing industry E. economies of scale

the brewing industry

The issues involved in researching a case situation include all of the following EXCEPT​ _____________. A. the case method offers the opportunity to move from a broader to a less precise analysis of the overall corporation B. cases present actual business situations C. cases enable examination of both unsuccessful corporations D. case method provides a feel for implementing strategic decisions E. most of the consulting companies use case analysis as their primary means of selecting candidates for​ on-site interviews

the case method offers the opportunity to move from a broader to a less precise analysis of the overall corporation

All of the following are true about trends in the economic part of the societal environment EXCEPT​ ________. A. trends in the economic part of the societal environment impact only the natural activity in the environment versus the business activity in the environment of the organization B. the rapid economic development of​ Brazil, Russia,​ India, and China impacts world trade C. higher mortgage rates reduce the demand of new mortgage loans D. rising interest rate tends to be reflected in higher mortgage rates E. a trend in the economic part of the societal environment is an increase in interest​ rates, and an increase in interest rates results in fewer sales of larger products

trends in the economic part of the societal environment impact only the natural activity in the environment versus the business activity in the environment of the organization

Recall that many of those who prefer that the Chairman and CEO positions be combined agree that the outside directors should elect a lead director. All of the following are correct statements about the lead director EXCEPT​ ________. A. of those U.S. companies combing the Chairman and CEO​ positions, the majority had a lead director B. the lead director becomes less important because only a small percentage of U.S. boards held regular executive sessions without the CEO being present C. the lead director is consulted by the​ Chair/CEO regarding board affairs and coordinates the annual evaluation of the CEO D. the lead director position is popular in the United​ Kingdom, where it originated E. a lead director creates a balance in power when the CEO is also the Chair of the Board

the lead director becomes less important because only a small percentage of U.S. boards held regular executive sessions without the CEO being present

All of the following statements are true about the organizational learning theory EXCEPT​ ________. A. in agreement with the concepts of organizational learning​ theory, an increasing number of companies are realizing they must shift from a vertically​ organized, top-down type of organization to a more horizontally​ managed, interactive organization B. the organizational learning theory expands the strategic choice perspective to include people at all levels becoming involved in providing input into strategic decisions C. all organizations adjust defensively to a changing environment D. the organizational learning theory proposes that organizations can and do adapt to changing conditions by imitating other successful organizations E. organizations use information offensively to improve the fit between itself and its environment

the organizational learning theory proposes that organizations can and do adapt to changing conditions by imitating other successful organizations

All of the following are true about strategic audits EXCEPT​ ________. A. the strategic audit is useful to strategic managers because it provides a checklist of questions by area of concern B. the strategic audit is useful to managers because it provides a method that permits a strategic manager to review the​ company's external opportunities and threats that exist in the marketplace C. strategic managers use strategic audits to conduct an organizational analysis to ascertain a​ company's strengths and weaknesses D. strategic managers use the strategic audit to observe the organizational resources and capabilities in terms of the functional areas of​ marketing, finance,​ R&D, operations, human​ resources, and information systems E. in Part IV of the strategic​ audit, strategic managers can examine corporate​ structure, culture, and other resources that impact the organization

the strategic audit is useful to managers because it provides a method that permits a strategic manager to review the​ company's external opportunities and threats that exist in the marketplace

All of the following statements are true about quality of life and human diversity EXCEPT​ ________. A. there is an increase in racial diversity that leads to an increase in the performance in organizations in the United States B. human resource managers are concerned with hiring and promoting individuals and groups without regard to ethnic background C. good human resource managers work to ensure that individuals are treated fairly on the job and they ensure that employees are not harassed by prejudiced​ co-workers or managers D. there is a trend in U.S. companies to decrease the percentage of minorities and women hired in the U.S. workforce E. strategic managers who redesign their plants and offices to improve energy efficiency improve the quality of work life and raise labor productivity in the workplace

there is a trend in U.S. companies to decrease the percentage of minorities and women hired in the U.S. workforce

All of the following are true statements about inside directors EXCEPT​ ________. A. inside directors are sometimes called management directors B. the board of directors in a typical U.S. corporation has an average of two inside directors C. inside directors account for​ 20% of the board members in large United States corporations D. there is a trend in the United States to increase the number of inside directors E. inside directors are typically officers or executives employed by the corporation

there is a trend in the United States to increase the number of inside directors

Strategic Audit examines all of the following aspects EXCEPT​ ________________. A. in Column 4 of the EFAS​ Table, the total weighted score for an average firm is always a 3.0 B. using the EFAS Table to analyze how well a particular​ company's management is responding to specific factors in light of the perceived importance of these factors to the company C. using the EFAS Table is ideal because after managers complete the EFAS​ Table, they need to scan the societal and task environments and identify a number of likely internal factors for their particular corporation D. summarizing external environmental factors. E. using the EFAS Table to organize the external factors into the generally accepted categories of opportunities and threats

using the EFAS Table is ideal because after managers complete the EFAS​ Table, they need to scan the societal and task environments and identify a number of likely internal factors for their particular corporation

A​ ________ is an​ organization's assets and it is considered the basic building blocks of an​ organization; whereas​ a(n) ________ refers to a​ corporation's ability to exploit its resources. A. replicability; business model B. durability; imitability C. ​resource; capability D. distinctive​ competency; core competency E. competency; core competency

​resource; capability