Ch.1-4 Test Strategic Management
A total weighted score of ____ in an External Factor Evaluation (EFE) Matrix indicates that an organization is responding in an outstanding way to existing opportunities and threats in its industry.
4.0
The goal of strategic management is to...
Achieve and maintain competitive advantage
In recent yrs, the speedy flow of info through tech has...
Created a borderless world with global competitors, customers, and citizens
___ can reveal the demographic characteristics of an organization's customers.
Customer profiling
What is the first step in designing an External Factor Evaluation (EFE) Matrix?
Identifying key external factors
What types of skills are especially critical for successful strategy implementation?
Interpersonal
Strategic management focuses on integrating management, _____, and info systems to achieve organizational success
Marketing, finance, accounting, production, operations, research and development (all of the above)
What can be defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives?
Strategic management
Which of these basic questions should a vision statement answer?
What do we want to become?
According to Drucker, which question is synonymous with asking, "What is our mission?"
What is our business?
A good mission statement has...
a customer orientation
External audits attempt to identify key variables that offer ___ responses.
actionable
The strategic management process is becoming more widely used by...
all of the above
An effective information management system ____ information in such a way that it answers important operating and strategic questions.
all of the above (collects, codes, stores, synthesizes)
Which group would be classified as stakeholders?
all of the above (governments, creditors, suppliers, employees)
In the process of developing a mission statement, it is important to involve...
as many managers as possible
According to Roger Schroeder, which basic function within production and operations deals with aggregate planning and scheduling?
capacity
The IFE Matrix should be _____ in multi-divisional firms.
constructed for each autonomous division
What is the first step in the comprehensive strategic management model?
developing vision and mission statements
the initial step to implementing value chain analysis is...
dividing a firm's operations into specific activities or business processes
What are educated assumptions about future trends and events called?
forecasts
During what stage of strategic management are a firm's specific internal strengths and weaknesses determined?
formulation
In which phase of strategic management are LONG-TERM objectives especially important?
formulation (top management)
To perform an external audit, a company must first...
gather competitive intelligence and info about external trends
According to the comprehensive strategic management model, which step immediately follows the establishment of long-term objectives?
generating, evaluating, and selecting strategies
What category of ratios measures how effectively a firm can maintain its economic position in the growth of the economy and industry?
growth
In which phase of strategic management are ANNUAL objectives especially important?
implementation (employees)
Without assumptions, planning would be...
impossible
Competition in virtually all industries is...
intense
Strategy evaluation is necessary because...
internal and external factors are constantly changing
The strategic management process...
is a continuous process
In developing a mission statement, arousing emotion....
is important
What category of ratios measures a firm's ability to meet its short-term obligations?
liquidity
The strategic management process represents a(n) ___,____, and ___ approach for determining an enterprise's future direction.
logical, systematic, objective
The Industrial Organization (I/O) approach to competitive advantage advocates that external factors are ____ internal factors in a firm achieving competitive advantage.
more important than
Which of the following is the process of influencing people to accomplish specific objectives?
motivating
A resource is valuable if it is rare, hard to imitate, or....
not easily substitutable
In most industries, the major costs of producing a product or service are incurred within...
operations
The three all-encompassing internal resource categories used in the resource-based view are physical resources, human resources, and...
organizational resources
Which function of management includes areas such as job design, job specifications, job analysis, and unity of command?
organizing
Which component of a mission statement addresses the basic beliefs, values, aspirations, and ethical priorities of the firm?
philosophy
What is the essential bridge between the present and the future that increases the likelihood of achieving desired results?
planning
An organization should take a __ approach in its industry
proactive rather than reactive
What category of ratios includes return on total assets and return on stockholders' equity?
profitability
After a draft mission statement has been developed it is important to...
request modifications, additions, and deletions
Sometimes ____ is used to refer to strategic formulation, implementation, and evaluation, with ___ referring only to strategic formulation.
strategic management; strategic planning
Collecting and evaluating information on competitors is essential for successful...
strategy formulation
What step in the strategic management process involves mobilizing employees and managers to put strategies into action?
strategy implementation
The process whereby a firm determines the costs associated with organizational activities from purchasing raw materials to manufacturing products to marketing those products is called...
value chain analysis
Distribution includes...
warehousing