COB 487 Final

The relationship among the board of directors, top management, and shareholders is referred to as

corporate governance.

The type of strategy which describes a company's overall direction in terms of its general attitude toward growth and the management of its various businesses and product lines is

corporate.

When a company's core competencies are superior to those of competitors, these are known as

distinctive competencies.

Which barrier to entry uses cost advantages associated with large size?

economies of scale

The type of strategy which achieves corporate and business unit objectives and strategies by maximizing resource productivity is

functional.

The corporation's task environment

includes those elements or groups within an organization's industry.

The task environment

includes those elements or groups within an organization's industry.

Outside directors are defined as

individuals on the board who are not employed by the board's corporation.

According to the text, which one of the following is NOT descriptive of a corporation's culture?

-A corporation's culture is a collection of beliefs, expectations, and values learned and shared by the corporation's members and transmitted from one generation of employees to another. -Culture gives a company a sense of identity. -Corporate cultures are only temporary and can be easily changed.*** -The culture reflects the company's values. -Cultures have a powerful influence on the behavior of managers and can strongly affect a corporation's ability to shift its strategic direction.

Which of the following is NOT descriptive of the threat of substitute products or services?

-If the cost of switching is low, substitutes may have a strong effect on an industry. -Substitute products appear to be different, but satisfy the same need as another product. -Substitutes limit the potential returns of an industry. -Possible substitute products or services may not appear to be easily substitutable. -Identifying substitutes is relatively easy since they look similar.***

Which of the following statements is true regarding the board of directors?

-The board is charged by law to act with due care. -If a director or the board as a whole fails to act with due care and, as a result, the corporation is in some way harmed, the careless director or directors can be held personally liable for the harm done. -All of these*** -Director liability insurance is often needed to attract people to become members of boards. -Directors must be aware of the needs of various constituent groups to balance all their interests.

The corporate mission is best described by which one of the following?

-a description of top management's responsibilities -a statement of what the organization would like to become -the purpose or reason for the corporation's existence*** -a description of the activities carried out by the organization -a statement of corporate objectives

Which of the following is NOT one of the general strategic types according to Miles and Snow?

-defenders -reactors -initiators*** -prospectors -analyzers

Which of the following is NOT a major force in the societal environment?

-economic forces -labor forces*** -technological forces -sociocultural forces -political-legal forces

Which one of the following is included in the firm's societal environment?

-economic forces**** -competitors -resources -governments -special interest groups

According to Miles and Snow, a company that operates in at least two different product-market areas in which one product is stable and the other one is variable, reflects which strategic orientation?

-initiators -analyzers -prospectors -reactors -defenders

Which of the following is NOT one of the four question areas Barney proposes in his VRIO framework used to evaluate a firm's key resources?

-organization -imitability -rareness -value -durability***

Strategic management is that set of managerial decisions and actions that determine the long-run performance of a corporation. Which one of the following is NOT one of the basic elements of the strategic management process?

-strategy formulation -statistical process control*** -strategy implementation -environmental scanning -evaluation and control

The requirements of a board of directors vary significantly by country and by state; however, there is a developing consensus as to what the major responsibilities should be. Which of the following is NOT one of the responsibilities?

-sustainability -strategy of the organization -risk vs. initiative and the overall risk profile of the organization -effective board leadership including the processes, makeup and output of the board -becoming directly involved in managerial decisions****

Which of the following is NOT one of the four triggering events listed in the text that are the stimulus for a strategic change?

-threat of a takeover -annual strategic planning conference*** -intervention by the organization's bank -awareness by management of decreased profitability -new CEO

Which of the following is NOT a task of the board of directors in strategic management?

-to influence -to evaluate -to initiate and determine -to implement*** -to monitor

All of the following are technological breakthroughs already having a significant impact on many industries EXCEPT

-virtual personal assistants. -smart, mobile robots. -alternative energy sources. -growing health consciousness.*** -genetically altered organisms.

What is the attribute of corporate culture that is the degree to which members of a unit accept the norms, values, or other culture content associated with the unit?

intensity

What are the two distinct attributes of corporate culture?

intensity and integration

Those critical strengths and weaknesses that are likely to determine if a firm will be able to take advantage of opportunities while avoiding threats are called

internal strategic factors.

Agency theory suggests that the majority of a board needs to be from outside the firm.

True

The emphasis of strategic management is on

monitoring and evaluating external opportunities and threats in light of a corporation's strengths and weaknesses

According to Barney's VRIO framework, the firm's exploitation of a competency pertains to

organization.

According to the text, one of the primary responsibilities of top management in strategic management is

providing executive leadership.

The Sarbanes-Oxley Act was designed to protect

shareholders from the excesses and failed oversight of firms.

Which societal force includes demographic trends?

sociocultural forces

Knowledge that is not easily communicated because it is deeply rooted in employee experience or in a corporation's culture is called

tacit knowledge.

Catalyst-level board of directors typically

take leading roles in establishing and modifying the company mission, objectives, and strategy.

Industry analysis is primarily concerned with a corporation's

task environment.

The U.S. major home appliance industry is an example of an industry

that was once fragmented, but now is consolidated.

From the perspective of the public, the primary job of the board of directors is

to closely monitor the actions of management.

A linked set of value-creating activities beginning with basic materials provided by suppliers and ending with distributors getting the final product into the hands of the ultimate consumer is called a

value chain.

Research suggests that strategic management evolves through four sequential phases in corporations. The first phase is

basic financial planning.

The type of strategy which emphasizes the improvement of the competitive position of a corporation's products or services in a particular industry or market segment served by a business unit is

business.

A corporation's ability to exploit its resources is referred to as its

capabilities.