BUS 450
When conducting strategic planning, some firms prefer to keep strategies hidden because ______.
. participants in a visible strategic process become more attractive to rival firms, which may lure them away
What is considered the cornerstone of effective strategy evaluation?
Adequate and timely feedback
Which responsibility are board members addressing when they stimulate corporate growth so that the firm will survive, guard against equity dilution, and declare proper dividends?
Advancement of stockholders' rights
Which of the following is NOT true of boards today?
Boards are less proactive and more reactive.
Which of the following is included in Business Week's principles of good governance?
C. Do not allow the CEO to be chairperson of the board.
Which of the following is NOT true concerning board membership?
Companies are increasing their number of board members.
What are the five issues, beyond financial, a firm uses to evaluate its strategies when developing a balanced scorecard?
Customers, Managers/Employees, Operations/ Processes, Community/Social Responsibility, and Business Ethics/Natural Environment
Which of the following is not true concerning contingency plans?
D. Strategists should try to cover all bases for all possible contingencies.
Which of the following should NOT be included as a non-financial measure of a Balanced Scorecard?
EPS
Going public is not recommended for companies with sales of less than ______.
Examine the underlying bases of a firm's strategy, compare expected results with actual results, and take corrective actions to ensure the performance conforms to plans.
Which of the following is NOT a potential problem associated with using only quantitative criteria for evaluating strategies?
Human factors are seldom the underlying causes of declining performance.
Which of the following is NOT true about the balanced scorecard?
It aims to balance company and individual objectives.
Which of the following is suggested to make strategic planning more effective?
It should be a people process more than a paper process.
Which of the following is not a guideline for effective strategic management, as offered by Lenz?
Keep the process routine.
Which strategy-evaluation activity includes comparing expected results with actual results, investigating deviations from plans, evaluating individual performance, and examining progress toward meeting stated objectives?
Measuring organizational performance
Which of the following is a current trend in the U.S. regarding Boards of Directors?
Much greater board member accountability with smaller boards
Competitive advantages are generally the result of superiority in one (or more) of three areas. Which of the following is one of them?
Position
Which of the following is not a reason to be completely open with the strategy process and its decisions?
Secrecy promotes democracy.
The strategy evaluation process includes three basic activities. Which of the following is one of them?
Take corrective actions to ensure that performance conforms to plans.
Which of the following is NOT conducted in the strategy-evaluation activity of measuring organizational performance?
Taking corrective action
Which strategy-evaluation activity requires making changes to competitively reposition a firm for the future?
Taking corrective action
Which strategy-evaluation activity requires making changes to competitively reposition a firm for the future?
Taking corrective actions
Which of the following is a condition under which corrective actions may not be needed?
The firm is progressing satisfactorily toward achieving its stated objectives.
The strategic planning process should ______.
The strategic planning process should ______.
When are positional advantages self-sustaining?
When key external and internal factors remain stable
To minimize the impact of potential threats, organizations should develop ______.
contingency plans
A key role of strategists is to ______.
facilitate continuous organizational learning and change
The Balanced Scorecard strategy evaluation and control technique derives its name from the need of firms to balance ______.
financial and nonfinancial measures
The act of oversight and direction provided by a Board of Directors is referred to as ______.
governance
The basic form of the balanced scorecard ______.
may differ for different organizations
Most strategy literature advocates that strategic management is______.
more a science than an art
Strategy-evaluation activities should be performed ______.
on a continuing basis
Part of the rationale behind balanced scorecard is the difference between financial and non-financial measures: financial measures better _____, whereas nonfinancial metrics better ______.
report what has happened, predict the future
Strategy scientists ______.
see strategic management as a deliberate process
The medium for explaining strategic issues and organizational responses should be ______.
words supported by numbers
Effective strategic management requires ______.
open-mindedness
