sm midterm

true

Strategy changes may be highly ineffective, but not counterproductive, if a supportive culture does not exist.

true

Successful strategists minimize their own political exposure on issues that are highly controversial and in circumstances where opposition from major power centers is likely.

WO

Which strategies aim at improving internal weaknesses by taking advantage of external opportunities?

related diversification

Which strategy should an organization use when its products are currently in the declining stage of the product's life cycle?

Japanese

Who are the world's longest-living people?

true

Without reasonable assumptions, the strategy-formulation process could not proceed effectively.

culture

________ includes the set of shared values, beliefs, attitudes, customs, norms, rites, rituals, personalities, heroes, and heroines that describe a firm.

true

A clear mission statement describes the values and priorities of an organization.

true

A mission statement should be broad enough to reconcile differences among an organization's various stakeholders.

false

AT&T's mission statement focuses on telephones rather than on communication.

Generating, evaluating, and selecting strategies

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

have claims and concerns about an organization, but these claims and concerns vary.

All stakeholders

strategy evaluation

An important activity in ________ is taking corrective action.

false

Chapter 13 bankruptcy is similar to Chapter 11, but available only to large corporations.

false

Despite some exceptions, business strategy is very different than military strategy.

warehousing

Distribution includes

false

Diversification strategies are becoming more popular as organizations are finding it easier to manage diverse business activities.

false

Erosion of the U.S. manufacturing base is reflected in the sharp increase in labor union membership in the last decade.

true

Excess specificity can stifle creativity in the formulation of an acceptable mission or purpose.

market development

Gap's opening of its first five stores in China is an example of which type of strategy?

the utility

Good mission statements identify the ________ of a firm's products to its customers.

true

In 2014-2016, companies are aggressively boosting their dividends paid to shareholders.

true

In order to exploit common use of a well-known brand name, most companies favor related diversification strategies.

true

In order to motivate a workforce effectively, both profit and vision are needed.

question mark

In the Boston Consulting Group (BCG) Matrix, how would a division with a low relative market share position in a high growth industry be described?

y-axis

In the Boston Consulting Group (BCG) Matrix, which element represents the industry growth rate in sales, measured in percentage terms?

false

Intelligence gathering is an unethical business practice.

values

Life-directing attitudes that serve as behavioral guidelines are called

false

Management by intuition can be defined as operating from the "I've-already-made-up-my-mind-don't-bother-me-with-the-facts mode."

true

One of the fundamental strategy evaluation activities is reviewing the external and internal factors on which strategies are based.

true

Political forecasts can be the most important part of an external audit for firms that depend heavily on government contracts.

Divestiture

Procter & Gamble's (P&G) sale of many of its brands in order to focus on its core brands is an example of which type of strategy?

true

Relative market share position is given on the x-axis of the Boston Consulting Group (BCG) Matrix.

false

Step 1 of the Quantitative Strategic Planning Matrix (QSPM) assigns weights to each key external and internal factor.

false

Stockton, California, is the largest U.S. city to declare bankruptcy.

true

Strategy analysis and choice largely involves making subjective decisions based on objective information.

more important than

The Industrial Organization (I/O) approach to competitive advantage advocates that external factors are ________ internal factors in a firm achieving competitive advantage.

false

The Internal Factor Evaluation (IFE) Matrix should be developed on a multiple business unit basis in multidivisional firms.

false

The United States has been more active than other nations in protectionist measures and has engaged in many "Buy American" policies.

vision statement

The ______ should be established before the mission statement.

false

The controlling function of management is synonymous with strategy formulation.

internal and external issues

The critical success factors in a Competitive Profile Matrix and EFE Matrix include

true

The frequency of cooperative arrangements between rival firms has been increasing.

dividing a firm's operations into specific activities or business processes.

The initial step to implementing value chain analysis is

competitive position and financial position

The two internal dimensions represented on the axes of the SPACE Matrix are

false

The utility statement, "Do not offer me attractive looks; offer me clothes," is relevant in developing a mission statement.

true

There are seven basic functions of marketing: customer analysis, selling products and services, product and service planning, pricing, distribution, marketing research, and opportunity analysis.

mission statements

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

strategies

What are the means by which long-term objectives will be achieved?

managing by crisis

What principle is based on the belief that the true measure of a really good strategist is the ability to solve problems?

summing the weighted scores

When using External Factor Evaluation (EFE) Matrix, what is done after multiplying each factor's weight by its rating to determine a weighted score?

average collection period

Which ratio would be considered an activity ratio?

true

According to William King, a task force of managers from different units of the organization should be charged with determining the 20 most important strengths and weaknesses that should influence the future of the organization.

all of these

An effective information management system ________ information in such a way that it answers important operating and strategic questions.

the product of both attention to changing external and internal conditions and the insightful adaptations to those conditions.

Business or military success is

false

By occasionally monitoring external events, companies should be able to identify when change is required.

gather competitive intelligence and information about external trends.

To perform an external audit, a company first must