Capstone final exam
formal statements of organizational philosophy, characters, creeds, materials used for recruitment and selection, and socialization help an organization
link culture to strategy
Increased education and diversity of the workforce at all levels are reasons why
middle-level and lower-level managers, and even non-managers, should be involved in the strategic planning process.
Corrective actions are almost always ________ except when external and internal factors have not significantly changed and the firm is progressing satisfactorily toward achieving stated objectives.
needed
All of the following are mentioned by the authors as environmental strategies that a firm might adopt EXCEPT
reinvesting in environment-damaging businesses.
Many U.S. firms with a large percentage of their revenues derived in foreign countries prefer to leave their cash outside the United States because using those funds to pay dividends or purchase treasury stock would
require a big U.S. corporate income tax payment.
With regard to the visible or hidden issue, most executives agree that
some strategic information should remain confidential to top managers.
For upper-level executives _____ is the major variable used for compensation incentives
stock price
The match an organization makes between its internal sources and skills and the opportunities and risks created by its external factors can be defined as
strategy
All of the following are reasons strategy evaluation is more difficult today EXCEPT
the increasing time span for which planning can be done with any degree of certainty.
Financial ratios are used to compare a firm's performance over different time periods, to compare the firm's performance to industry averages, and to compare a firm's performance with
the performance of competitors.
The strategic planning process should be a learning process for all managers and employees.
true
Managers and employees today must be careful not to ignore, conceal, or disregard a pollution problem or they could
All of these
Resistance to change can manifest itself through
All of these
What corrective actions might a firm take during strategy evaluation?
All of these
Which of these is a basic activity of strategy evaluation?
All of these
why do changes in a company strategy often require changes in the way an organization is structured?
All of these
What are the three categories of approaches for managing and resolving conflict?
Avoidance, defusion, and confrontation
The Boston Consulting Group Matrix is designed specifically to enhance which type of firm's efforts to formulate strategies
Companies with more than one division
________ plans can be defined as alternative plans that can be put into effect if certain key events do not occur as expected.
Contingency
After completing an EPS/EBIT analysis, what conclusions would you make if the debt line is above the stock line throughout the range of EBIT on the graph?
Debt appears to be the best financing alternative.
A revised ________ should indicate how effective a firm's strategies have been in response to key opportunities and threats.
EFE matrix
What is the most widely used technique for determining the best combination of debt and stock?
Earnings Per Share/Earnings Before Interest and Taxes Analysis
The primary sources of capital are known as debt and EPS.
False
What type of organizational structure promotes specialization of labor and allows rapid decision making?
Functional structure
Firms located in which quadrant of the Grand Strategy Matrix are in an excellent strategic position?
I
The ________ is a network of the national standards institutes of 147 countries, one member per country.
ISO
All of the following statements are true EXCEPT
ISO has legal authority to enforce its regulations' implementation.
According to the Grand Strategy Matrix, organizations in which quadrant have a strong competitive position but are in a slow growth industry?
IV
Which stage of the strategy formation framework includes an IFE matric and competitive profile matrix?
Input
which of the following is a limitation associated with a SWOT Matrix?
It is a static assessment in time
Which of the following is NOT a guideline for an effective strategic planning process?
It should employ International Financial Reporting Standards (IFRS).
Many New Zealanders, supported by Australians, are outraged about which country's "large-scale" whaling operations in Antarctic.
Japan
Which of the following business actions is considered to be unethical?
Misleading labeling
A divisional structure by geographic area is the most appropriate when
Organizations have similar branch facilities located in widely dispersed area
In preparing projected statements, to project cost of goods sold in the income statement, which of these methods is recommended?
Percentage-of-Sales Method
Which method of determining a firm's net worth divides the market price of the firm's stock by the annual earnings per share, and multiplies this number by the firm's average net income for the past five years?
Price-Earnings Ratio Method
Which strategy formulation technique reveals the relative attractiveness of alternative strategies and thus provides an objective basis for selecting specific strategies?
Quantitative Strategic Planning Matrix
which matrix is included in the decision stage of the strategy formulation framework?
Quantitative strategic planning matric (QSPM)
In the Boston Consulting Group Matrix, how would a division with a low relative market share position in a high growth industry be described?
Question mark
what action involves reconfiguring or redesigning work jobs, and processes for the purpose of improving cost, quality, service and speed?
Reengineering
Business ethics, ________, and sustainability issues are interrelated and impact all areas of the comprehensive strategic-management model.
Social responsilbility
What are the two external dimensions of the SPACE Matrix?
Stability position and industry position
Which of the following statements about contingency plans is NOT true?
Strategists should plan for all possible contingencies.
________ are the individuals primarily responsible for ensuring that high ethical principles are espoused and practiced in an organization.
Strategists such as CEOs and business owners
What aims to balance long-term with short-term concerns, financial with nonfinancial concerns, and internal with external concerns?
The Balanced Scorecard approach
Which of the following is NOT an accepted approach for determining a business's worth?
The Return on Investment Method
Which one of the following statements regarding stock issuances is true?
They are not always better than debt for raising capital.
Which of the following is not given as an example of a decision that may require finance/accounting policies?
To be a price leader or a price follower
A rising tide of consciousness about the importance of business ethics is sweeping the United States and the rest of the world.
True
Four common corporate Valuation methods are the Net Worth Method, the Net Income Method, the Price-Earnings Ratio Method, and the Outstanding Shares Method.
True
In developing an organizational chart, avoid having a particular person reporting
True
More and more firms believe that ethics training and an ethics culture create strategic advantage.
True
T/F the major benefit of the Boston consulting group matrix is that it draws attention to the cash flow, investment characteristics, and needs of an organization's various divisions
True
Taking corrective actions does not necessarily mean that existing strategies will be abandoned, or even that new strategies must be formulated.
True
Which strategies are defensive tactics directed at reducing internal weaknesses and avoiding external threats?
WT
Considerable time and effort should be devoted to assuring objectives are well conceived because they represent the basis for
all of these
The amount by which retained earnings changes is obtained by subtracting
any dividends to be paid for that year from net income.
All of the following are principals of good organizational governance as established by BusinessWeek, EXCEPT
at least three directors are current or former company executives
The two internal dimensions represented on the axes of the SPACE matrix are
competitive position and financial position
A proactive environmental policy is likely to lead to
conservation of energy
The primary benefit sought from restructuring is
cost reduction
In low-earning periods, too much ________ in the capital structure of an organization can endanger stockholders' return and jeopardize company survival.
debt
The U.S. Chamber of Commerce supports a change from to IFRS to GAAP, saying it will help the United States compete in the world economy.
false
The rational change strategy is one that presents information to convince people of the need for change
false
The first step in performing projected financial analysis is to
forecast sales as accurately as possible.
The act of oversight and direction for an organization is referred to as
governance
All of the following are reasons that workplace romance can be detrimental to workplace morale and productivity EXCEPT
increased quality and quantity of work can occur.
The absence of a conflict can signal ___ within an organization
indifference and apathy
Projected financial analysis is an important strategy-implementation technique because
it allows an organization to examine the expected results of strategies being implemented.