MGMT Final Exam

A strategic _____ is a carefully crafted set of steps that a firm intends to follow in order to be successful

plan_

Farmers rely heavily on cheap labor provided by illegal immigrants. A tightening of the immigration policy would reduce their profit margins and potentially increase the prices of agricultural products. For these farmers, this aspect of illegal immigration represents the _____ segment of PESTEL analysis.

political

An automobile manufacturing company wants to be the first company in the world to launch a car that would require no human intervention to run on the road. It wants to do so by year 2020. The company has the required technology and the required finances to come up with such a car. Therefore, the plan seems to be feasible. The fact that the plan is viable and practicable reflects the _____ dimension of a goal.

realistic

The integral part to a company's strategic plan that describes the process through which a company hopes to earn profits is the:

Business model

TorF. Trends and events of the external environment seldom affect the overall state of an organization.

False1

TorF. Competitive aggressiveness is the tendency to avoid competitors rather than directly challenge them.

False2

TorF. Innovations always require brand new skills thus making existing skills obsolete.

False3

TorF. The triple bottom line framework highlights areas such as social responsibility.

False4

TorF. High industry concentration increases the chances of bitter rivalry between an industry's competitors.

False5

TorF. Suppliers tend to be less powerful if there are no effective substitutes for what the supplier group provides.

False6

TorF. Rivalry tends to be fierce among an industry's competitors if exit barriers in the industry are low.

False7

A(n) _____ fee refers to the upfront fee paid by an organization which gets the right to use another organization's brand name, products, and processes

Franchise

An organization which gets the right to use another organization's brand name, products, and processes is referred to as a _____.

Franchisee

Marty's, a clothing company, has a number of outlets which are owned and managed by private individuals. These outlets are allowed to use the brand name and products of Marty's after paying a fee to the company. They also pay a part of their revenues to Marty's. Each of these outlets is a:

Franchisee_

A _____ is an organization which grants the right to use its brand name, products, and processes to other organizations.

Franchisor

_____ is one of the five forces of Michael Porter's five forces analysis.

Industry rivalry

Which of the following statements describes the "realistic" aspect of a goal?

The achievement of the goal is feasible.

Which of the following statements describes financial measures as a part of the balanced scorecard?

They relate to organizational effectiveness and profits

Which of the following statements describes internal business process measures as a part of the balanced scorecard?

They relate to organizational efficiency

TorF. The history of strategic management can be traced back several thousand years.

True1

TorF. A few organizations wield such power and influence that they can shape some elements of the general environment.

True10

TorF. PESTEL analysis is an important tool for organizing factors within the general environment and identifying how these factors influence industries and the firms within them.

True11

TorF. Realized strategies are a product of a firm's intended strategy, deliberate strategy, and emergent strategy.

True2

TorF.Internal business process measures of performance relate to customer attraction, satisfaction, and retention.

True3

TorF. Some large organizations promote autonomy by empowering a division to make its own decisions, set its own objectives, and manage its own budgets.

True4

TorF. the common element in all entrepreneurs is that they do something new and can make something out of opportunities that others cannot.

True5

TorF. An organization that wants to encourage autonomy should foster a work environment with high levels of employee satisfaction and low levels of turnover.

True6

TorF. Innovativeness of an organization can be gauged by considering how many patents has the firm obtained.

True7

TorF. The most effective goals are those that are specific, measurable, aggressive, realistic, and time-bound.

True8

As buyers, large companies like Walmart have the power to insist on price concessions because their sales volumes are so high.

True9

An automobile manufacturing company wants to be the first company in the world to launch a car that would require no human intervention to run on the road. It wants to do so by year 2020. The task presents a challenge to the engineering skills of the organization. The fact that the task presents a challenge to the organization reflects the _____ dimension of a goal.

Aggressive

Rivalry between competitors of an industry tends to be fierce when:

Competitors are not differentiated from each other

An organization's _____ describes the reasons for an organization's existence.

Mission Statements

Quattro is a pizza shop that delivers pizzas without any extra charge. It also refunds the entire amount of the order when the pizza was not delivered within 30 minutes from the order placement. After two years it stopped this policy, but it still delivers pizzas without any extra charge. The fact that it stopped the policy of refunds in case of a delay of more than 30 minutes is an example of a _____ strategy.

Non-realized

_____ analysis is an important tool that executives can rely upon to organize factors within the general environment and identify how these factors influence industries and the firms within them.

PESTEL

Dormer is the only fine dining restaurant in a small town. The opening of a new restaurant is viewed as a threat by some of the employees at Dormer. Others see it as an opportunity for Dormer to strengthen itself by looking out for its weaknesses and ironing them out. This is an example of strategy as:

Perspective

A company that manufactures soaps could not sell its products despite spending a good amount on advertisements. Therefore, management decided to use the concept of direct marketing. They thought of appointing a large number of salespersons who would do door-to-door selling of the product. This is an example of a strategic:

Plan

An automobile manufacturing company wants to be the first company in the world to launch a car that would require no human intervention to run on the road. The fact that the company has an explicit goal reflects the _____ dimension of a goal.

Specfic

The Hebrews leaving Egypt, the Greek soldiers inside of the Trojan Horse, and King Arthur's famous round table are all examples of:

Strategy an Ancient Times

Viewing strategy as position involves only the actions of a single firm.

Strategy as a plan, ploy, and pattern

Which of the following segments of PESTEL analysis is the "Moore's Law" associated with?

Technological

Strategic management is described as being part science and part ______.

art

Textbook publishers can charge high prices because students enrolled in a class must purchase the specific book that the professor has selected. Used copies are sometimes a lower-cost option, but textbook publishers have cleverly worked to undermine the used textbook market by releasing new editions after very short periods of time. According to Porter what "force" do used books industry represent?

buyers

When unemployment rises, discretionary income plummets. That hurts businesses selling costly but non-essential goods. This example represents the _____ segment of PESTEL analysis.

economic

Michael Porter's five forces analysis is an important tool:

for understanding the main competitive forces at work in an industry

_____ are CEOs who lack fame but possess positive reputations.

hidden gems

Which of the following is one of the five forces of Michael Porter's five forces analysis?

suppliers to an industry

New entrants are more likely to join an industry if:

switching costs for consumers are low