Strategic Management 4810 final exam

Réussis tes devoirs et examens dès maintenant avec Quizwiz!

policy

"All of our locations will be open at least two evening per week until 830pm " is an example of an

physical resources, human resources, and organizational resources

3 Categories of a resource-based view

rational

A change strategy that attempts to convince people that the change is to their personal advantage is

distinctive competencies

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

a customer orientation

A good mission statement has

(1) rare, (2) hard to imitate, or (3) not easily substitutable.

A resource can be considered valuable to the extent that it is

rare, hard to imitate, or not easily substitutable

A resource is valuable if it is

Forward integration

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

include monetary amounts, numbers, percentages and ratios

An effective mission statement should do all of the following EXCEPT

answer the question: "what do we want to become?"

An organization's vision statement

competitive advantage

Anything that a firm does especially well compared to rival firms is referred to as

changed

Aspects of an existing culture that are antagonistic to a proposed strategy should be

larger market share

Financial objectives involve all of the following EXCEPT

vertical integration

Forward integration and backward integration are sometimes collectively referred to as

the invisible barrier in many firms that bars women and minorities from top-level management positions.

Glass ceiling refers to

by involvement in the strategic management process

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

individuals who will be affected by a change should be involved in the decision to make the change and in decisions about how to implement the change.

How do you get people to not resist change?

inconsistent.

If success for one organizational department means, or is interpreted to mean, failure for another department, then strategies may be

Backward integration

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

is important

In developing a mission statement, arousing emotion

Compare the firm's performance over different time periods. Compare the firm's performance to competitors. Compare the firm's performance to industry averages.

Strategists use financial ratios to make three critical comparisons:

subjective; objective

Strategy analysis largely involves making _____ decisions based on _____ information

Forward integration

Websites that sell products directly to consumers are examples of which type of strategy?

restructuring

What action involves reconfiguring or redesigning work, jobs and processes for the purpose of improving cost, quality, service and speed?

forecasts

What are educated assumptions about future trends and events called?

mission statements

What are enduring statements of purpose that distinguish one business from another?

sales net income EPS DPS

What are the Growth ratios?

Inventory Turnover Fixed Assets Turnover Total Assets Turnover Average Collection

What are the activity ratios?

relating to or concerned with the relation of living organisms to one another and to their physical surroundings.

What does ecological mean?

Average collection period

Which ratio would be considered an activity ratio?

product development

Which strategy is appropriate when an organization competes in an industry characterized by rapid technological developments?

Related diversification

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

market penetration

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

related diversification

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

strategy

____ is " the science of planning and directing large-scale military operations, of maneuvering forces into the most advantageous position prior to actual engagement with the enemy"

Culture

_____is the unique way an organization does business

competitive intelligence

A systematic and ethical process for gathering and analyzing information about the competitions activities and general trends to further a business' practices

4

A total weighted score of ____ in an External Factor Evaluation Matrix indicate that an organization is responding in an outstanding way to existing opportunities and threats in its industry.

does not exclude any strategy alternatives

An overly general mission statement that _____ could be dysfunctional

stock price

For upper level executives, ____ is the major variable used for compensation incentives.

link culture to strategy

Formal statements of organizational philosophy, charts, creeds, materials used for recruitment and selection and socialization help an organization

$1000

If total fixed costs are $10,000, variable costs per unit are $5, and the price per unit is $15, what is the breakeven quantity?

find that less brick and mortar is better

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

reconciliatory

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

an annual financial plan

The purpose of a mission statement is to declare all of these EXCEPT

is a continuous process

The strategic management process

logical, systematic, objective

The strategic management process represents a ____,____ and ____ approached by determining an enterprises futures direction

organizational resources, physical resources, human resources

The three all-encompassing internal resource categories used in the resource based view

Leverage ratio

The times-interest-earned ratio would be classified as a

operating stores with less square footage

There is a dramatic shift in mass retailing to

Tax inversion

To avoid paying US taxes, what do US companies do to save money?

debt

Too much ____ can endanger stockholders return

highly controversial

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

on the battlefield

Terms such as objectives, missions, strengths and weaknesses were first formulated to address problems

both internal and external issues

The critical success factors in Competitive profile matrix and EFE matrix include

social responsibility; profitability

The general public is especially interested in _____, where as stockholders are more interested in _______.

strategy

The match an organization makes between its internal resources and skills and the opportunities and risk created by its external factors can be defined as

a mission statement that is too specific

The potential for creative growth in an organization can be limited by

planning, organizing, motivating, staffing, and controlling

What are the basic activities of management?

debt to equity debt to total assets times interest earned LTD to equity

What are the leverage ratios

current and quick ratios

What are the liquidity ratios?

Policies

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

Gross Profit Margin Operating Profit Margin Net profit Margin ROA ROE PE

What are the profitability ratios?

Liquidity

What category of ratio measures a firm's ability to meet its short-term obligations?

profitability

What category of ratios includes return on total assets and return on stockholder's equity?

Growth

What category of ratios measures how effectively a firm can maintain its economic position in the growth of the economy and industry?

created similar patterns in consumption

What did mass communication and technology do to diverse cultures?

optimal capital structure (using WACC)

What financial decision determines the best capital structure?

Selling all of a company's assets, in parts, for their tangible worth

What is Liquidation?

Market segmentation can be defined as the subdividing of a market into distinct subsets of customers according to needs and buying habits.

What is Market Segmentation?

involves companies hiring other companies to take over various parts of their functional operations, such as human resources, information systems, payroll, accounting, customer service, and even marketing.

What is Outsourcing?

can be defined as alternative plans that can be put into effect if certain key events do not occur as expected.

What is a contingency plan?

the ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity.

What is comparative advantage?

is a process of doing business worldwide, so strategic decisions are made based on global profitability of the firm rather than just domestic considerations

What is globalization?

entails developing schematic representations that reflect how products or services compare to those of the competitors on dimensions most important to success in the industry.

What is perceptual mapping?

is a strategy that seeks increased sales by improving or modifying present products or services.

What is product development?

refers to countries imposing tariffs, taxes, and regulations on firms outside the country to favor their own companies and people.

What is protectionism?

concerns what responsibilities the firm has to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups.

What is social policy?

While the objectives can be described as the goals that have to be achieved by the organization, on the other hand, policies can be described as the tools that are used for achieving the objectives of the organization

What is the difference between policy and objective?

Identifying key external factors

What is the first step in designing an EFE Matrix?

Matrix

What is the most complex form of organizational structure?

refers to employees reporting any unethical violations they discover or see in the firm

What is whistle blowing ?

Joint venture

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

what are the basic beliefs, values, aspirations and ethical priorities of the firm?

What question is asked in conjunction with the philosophy component of a mission statement?

Horizontal integration

What refers to a strategy of seeking ownership of, or increased control over a firm's competitors?

policies

What term is used to describe specific guidelines, methods, procedures, rules, forms and administrative practices established to support and encourage work toward stated goals?

functional structure

What type of organizational structure promotes specialization of labor and allows rapid decision making?

outsourcing

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

higher

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

deter investment in new factories and also provides strong incentives for corporations

When you have high corporate tax rates, what happens?

strategists

Which individuals are most responsible for the success and failure of an organization?

The should use terms like "maximize" "minimize" and "as soon as possible"

Which of the following is NOT true about objectives?

All of the above

Which of the following is a management issue central to strategy implementation?

all of the above

Which of the following is part of the strategic management model ?

Financing

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

backward integration

Which of these strategies is effective when the number of suppliers is small and the number of competitors is large?

Times-interest-earned ratio

Which ratio is calculated by dividing profits before interest and taxes by total interest charges?

employee wage rates

According to drucker, a business' mission is the foundation for all of the following EXCEPT

What is our business?

According to drucker, which question is synonymous with asking "what is our mission?"

increased resistance to change

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

consolidating

All of the following are basic activities of management EXCEPT

value chain analysis

All of the following are basic functions of marketing EXCEPT

SEC reports

All of the following are mentioned as places where vision and mission statements can often be found EXCEPT

when the advantages of stable prices are not particularly important

Backward integration is effective in all of these cases EXCEPT

EPS/EBIT

Best technique for balancing debt and stock

adapt to change; constantly improve

Both business and military organizations must _____ and _____ to be successful

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

Business or military success is

not always bad

Conflict in an organization is

all of the above

Considerable time and effort should be denoted to assuring objectives are well conceived because they represent the basis for

all of the above

Considerable time and effort should be devoted to assuring objectives are well conceived because they represent the basis for

continually changing

Long term objectives should be all of the following EXCEPT

All of the above

Long-term objectives are needed at which level(s) in an organization

divisional

Medium-sized firms tend to use which type of structure

conflict; cooperation

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

more profitable

Organizations using strategic management are generally ____ than those that do not.

Divestiture

Proctor & Gamble's sale of many of its brands in order to focus on its core brands is an example of which type of strategy?

all of the above

Resistance to change can manifest itself through

liquidation

Selling all of a company's assets , in parts, because they are worth more dead than alive is called

objectives

Specific results an organization seeks to achieve in pursuing its basic mission are

be proactive

Strategic management enables an organization to _____, instead of just responding to threats in its business environment

market segmentation; product positioning rank

what are 2 variables that are marketing contributions to strategic management?

all of the above

which group would be classified as stakeholders?

using plans as a standard for measuring performance

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

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

All stakeholders

cannot be

All stakeholders claims on an organization ____ pursued with equal emphasis

is highest

Intensity of competition _____ in lower return industries

strengths

Internal _______ are controllable activities in an organization that are performed especially well

delivering materials just as they are needed

Just-in-time describes


Ensembles d'études connexes

Which of the following statements about prospecting is false?

View Set

Pharm Exam 2 (Enwequiz3 ATI, Endocrine Drugs Pptx, Pharm Medications)

View Set

PrepU Chp 28: Assessment of Hematologic Function and Treatment Modalities

View Set

Med-Surge: Immune and Infectious Diseases

View Set

Module 3 - Learning from others and reviewing the literature

View Set