Exam #2 Ch. 6-10

The two sources of debt financing are angle investors and venture capitalists. True of false?

False

A global strategy is based on the assumption that the world is extremely interconnected, and that patterns of consumption and product are fairly homogenous worldwide. True or false?

True

A plan includes decisions about when and how actions should be accomplished and what resources will be required to complete the actions. True or false?

True

.... are individual investors or groups of experienced investors who provide funding for start-up businesses.

angel investors

Entrepreneurs are typically innovators who start companies to pursue their ideas for new product or service. True or false?

true

____ factors are characteristics of the firm itself. a. external b. competitive c. economic d. internal e. socio-cultural

d. Internal

Internal factors are things in the global environment that may impact a firm's operations or success, examples are a rise in interest rates, or a natural disaster. True or false?

False

The DHL Global Connected Index, which trades the flow of capital, information, trade, and human resources, indicates that the degree of globalization continues to decline. True or false?

False

A business-level strategy is the framework a firm uses to organize this activities, and it is developed by the firm's top managers. True or false?

True

An entrepreneur is a person who opens and manages his or her own business. True or false?

True

Because tariffs are usually passed along to the consumer in the form of higher prices, imposing tariffs on imported goods gives domestic companies a price advantage and protects them from foreign competition. True or false?

True

More than half of small businesses have between one and four employees. True of false?

True

The first step in starting your own business is:

a self assessment

The difference between small business owners and entrepreneurs is that small business owners : a. assumes the risk of the business b. is accurately described by all of the above c. manages the business d. is responsible for the profits of the business e. files taxes for the business

a. assumes the risk of the business

Which of the following leadership profiles describe degree to which the leader is self-centered and uses a face-saving approach? a. humane-oriented b. self-protective c. autonomous d. team oriented e. charismatic

b. self-protective

_____ is (are) the big-picture goals for the company a. opportunities b. strategic objectives c. mission d. external competencies e. vision

b. strategic objectives

Which of these is an expression of what a business's founders want that business to accomplish? a. mission statement b. vision statement c. SMART framework d. strategic analysis e. SWOT

b. vision statement

While a fim's______ is a general statement about its vales, a firm's____ is more specific. a. mission statement; objective statement b. vision statement; mission statement c. SWOT; SMART framework d. SMART framework; SWOT e. mission statement; vision statement

b. vision statement; mission statement

Which of the following model of change proposed the sequence of "Unfreeze, Move, Refreeze"? a. appreciative Inquiry Model b. Complex Adaptive Systems c. Lewin's Change Model d. Bureaucratic Model e. Kotter's Change Model

c. Lewin's Change Model

Which of the following leadership profiles describe the degree to which the leader can inspire and motivate others, according to the GLOBE project? a. humane-oriented b. self-protective c. charismatic d. team-oriented e. autonomous

c. charismatic

Which of the following defines those markets in non-developed countries that present tremendous potential for multinationals? a. born globals b. global markets c. emerging markets d. EDI markets e. social stratisfaction markets

c. emerging markets

Which of these is a general description of how the firm will try to accomplish the firm's vision? a. objective statement b. strategic analysis c. SWOT d. mission statement e. SMART framework

d. mission statement

Which of the following represents the first step in the planning process? a. implement plan b. review results c. design plan d. set goals

d. set goals

When Sally assesses the external competitive environment facing her firm, she labels anything that would make it harder for her firm to be successful as a(n) _______. a. external competencies b. weaknesses c. opportunities d. threats e. strengths

d. threats

Jill Hansom borrowed $40,000 from a credit union to start a company that makes and sells peach salsa. Hansom used _____ financing.

debt

Which of these is a general description of how the firm will try to accomplish the firm's vision? a. SWOT b. Strategic analysis c. objective statement d. SMART framework e. Mission statement

e. Mission statement

Multipreneurs are businesspeople who have tried a succession of entrepreneurial start-ups without finding an area in which they could be successful. True or false.

Flase

Which of the following represents the changes in the overall formal relationships, or the architecture of relationships, within an organization? a. structural change b. transformation change c. technological change d. culture change e. incremental change

a. Structural change

Which of the following is based on the assumption that the world is extremely interconnected, and that patterns of consumption and production are fairly homogenous worldwide? a. a global strategy b. a regional strategy c. a regional and local strategy d. a social stratification strategy e. a local strategy

a. a global strategy

Once Arnold Patel had decided he wanted to quit working as a Web designer for a large advertising agency and go into some kind of business for himself, he did a self-assessment, which indicated that he had an entrepreneurial spirit. His next step will be to: a. find the idea for his business b. determine where the funding will come from c. choose a form of business organization d. look for customers e. create a business plan

a. find the idea for his business

Kathy Elliot has decided that she will start an Internet company to sell reliable used cars to customers nationwide. She has decided to use the sole proprietorship business format. Elliot's next step is to write a formal _____ before she applies for a business loan.

business plan

___ refers to factors that prevent new firms from successfully competing in the industry. a. Supplier power b. Generic strategies c. Barriers to entry d. Threat to substitutes e. Employee power

c. Barriers to entry

Which of the following is not an activity of strategic management process? a. measure and evaluate performance b. strategic analysis c. establish compensation for performance d. vision and mission e. create and choose strategies

c. establish compensation for performance

Which of the following is not an activity of strategic management process? a. measure and evaluate performance b. strategic analysis c. establish compensation for performance d. vision and mission e. create and choose strategies

c. establish compensation for performance

A_______ is something that a firm is trying to accomplish. a. SWOT b. SMART framework c. goal d. plan e. strategy

c. goal

ABC Products is interested in identifying what technological opportunities exists for their business. ABC should use which of the following strategic analysis tools? a. SWOT b. PESTEL c. Porter's 5 forces d. vision and mission e. resources and capabilities

b. PESTEL

____ is a tool that reminds managers to look at several distinct categories in the macro environment a. value chain b. PESTEL c. VIRO d. SWOT e. Porter's

b. PESTEL

According to the GLOBE project, countries in the Latin American cluster tend to be more collective, have high power distance, and have high uncertainty avoidance. True or false?

True

An advantage of a small manufacturing firm over a large manufacturer is the speed with which new products can be introduced to the marketplace. True or false?

True

Demographics includes facts about income, education levels, age groups, and the racial composition of a population. True or false?

True

Entrepreneurs are people with vision, drive, and creativity, who are willing to take the risk of starting and managing a businesses to make a profit. True or false?

True

Exporting is one of the easiest ways to go international. True or false?

True

The mission statement takes the why of a vision statement and gives a broad description of how the firm will try to make its vision a reality. True or false?

True

The most common use of a business plan is to persuade lenders and investors to finance the venture. True or false?

True

Andy Yocum was looking to start a small business so he could be his own boss. While golfing one day, he saw prime advertising space on the flags on the course. He has decided to call his new venture Invision Golf Group, Inc. What should he include in his business plan? a. a mangement plan b. the elements of the company that make it unique c. an analysis of the market in which the company will operate d. a financial plan e. all of the above

e. all of the above

Which term defines the collective programming of the mind which distinguishes the member of one group or category of people from another? a. individualism b. immigration c. expatriate d. power distance e. culture

e. culture

Who provides the start-up financing for the majority of new small businesses?

the business owner and his or her family and friends

When researchers examined the ongoing assumption that all residents of a given country will behave according to broad cultural norms, they found that 80% of variation in cultural values is actually within countries. True of false?

True

All of the following are characteristics of an entrepreneurial personality EXCEPT: a. problem-solving skills b. the willingness to be a follower rather than a leader c. a high energy level d. the willingness to take risks e. creativity

b. the willingness to be a follower rather than a leader

The mission statement takes the____ of a vision statement and gives a broad description of_____ the firm will try to make its vision a reality. a. where;what b. who;what c. why;how d. what;where e. how;why

c. why;how

The movement of people from their home country to other countries refers to:

immigration

______ is at the core of most business failures

inadequate planning

___is at the core of most business failures.

inadequate planning

A firm's ______ environment contains elements that can impact the firm but are generally beyond its direct control. These elements are characteristics of the world at large and are factors that all businesses must contend with, regardless of the industry they are in or type of business they are.

macro

ABC Products is good at marketing its sports products. This describes ABC's - external competencies - threats - strengths - opportunities - weaknesses

strengths

____ includes facts about income, education levels, age groups, and the ethnic and racial composition of a population.

Demographics

James is the owner of a small toy manufacturing company. James primarily focuses on buying and selling products using the Internet. Which of the following best describes James' business practice? a. licensing b. global strategy c. FDI d. exporting e. E-commerce

E-commerce

A firm's internal environment contains elements that can impact the firm but are generally beyond its direct control. True of false?

False

A strong rivalry in an industry increases the profit potential for all firms because consumers have many firms from which to purchase products or services and can make at least part of their purchasing decisions based on price. True or false?

False

Compare to Hofstede, the only two cultural dimensions unique to the GLOBE project are performance orientation and future orientation. True or false?

False

Entrepreneurs, as a general group, dislike risk taking. True or false?

False

A global strategy is based on the assumption that the world is extremely interconnected, and that patterns of consumption and product are fairly homogeneous worldwide. True or false?

True

A firm's resources and capacities are the unique skills and assets it possesses. True or false?

True

A firm's weaknesses are simply gaps in capabilities, and those gaps do not always have to be filled within the firm. True or false?

True

A_______ is a decision to carry out a particular action in order to achieve a specific goal. a. plan b. mission c. strategy d. strategic objective e. SMART framework

a. plan

Which of the following strategy is one in which the company decides that it makes sense to organize its functional activities, such as marketing, finance, etc. around the geographical regions that play a critical role in terms of: a. A regional strategy b. A local strategy c. A social stratification strategy d. A global strategy

a. regional strategy

The World Trade Organization's most important functions are all of these EXCEPT: a. providing training to less-developed countries to implement agreements. b. financing the infrastructure development project in less developed countries. c. providing the mechanism for countries to negotiate trade agreements. d. monitoring trade agreements e. providing the means to handle trade disputes

b. financing the infrastructure development project in less developed countries.

The worldwide phenomenon whereby the countries of the world are becoming more interconnected and where trade barriers are disappearing refers to: a. emerging markets b. globalization c. global strategy d. immigration e. cultural practices

b. globalization

A firm's decision on how to serve customers and compete against rivals is called__ a. competitive advantage b. strategic groups c. strategic positioning d. substitutes e. its weaknesses

c. strategic positioning

Garden Tools, Inc. (GTI) offers customers its product or service at a lower price than its rivals can. GTI can be described as utilizing which of the following strategy? a. Local strategy b. Global Strategy c. Regional Strategy d. Cost-leadership strategy e. Differentiation strategy

d. Cost-leadership strategy

Which of the following SWOT factors are external to the firm? a. threats and weaknesses b. threats and strengths c. weaknesses and opportunities d. opportunities and threats e. strengths and weaknesses

d. Opportunities and threats

Businesses close down for many reasons. Which of the following is NOT a typical reason for a business failure?

expenses were lower than the owner expected

Culture tells people who they are, which behaviors are appropriate, and which are not acceptable in any society. True or false?

true

In PESTEL, factors are characterized as opportunities or threats. True or false?

False

Research finds that while education is necessary for job placement, it plays no role in socializing individuals into expected norms in their society. True or false?

False

Strategy and goals statements together are the first building blocks in defining why a firm exists and in developing a plan to accomplish what the firm wants to accomplish. True of false?

False

The first step in starting your own business is the creation of a unique marketing idea. True of false?

False

The top managers in organizations prefer to deal with the steps of strategic management one at a time to be able to provide the necessary attention to detail. True or false?

False

Threats offer positive potential, however, sometimes a firm is not equipped to take advantage of them which is why considering the entire SWOT is important before deciding what to do. True or false?

False

The strategic management process is the set of activities that firm managers undertake in order to try to put their firms in the best possible position to complete successfully in the marketplace. True or false?

True

The strategy cycle is a process managers use to achieve an advantage in the marketplace, and the measurement and evaluation stage tells managers whether the advantage is being achieved. True or false?

True

To achieve a competitive advantage over rivals in the industry, the successful cost leader tightly controls costs throughout its value chain activities. True or false?

True

To react to change more easily and develop products consumers want, managers and consultants engage in environmental scanning. True or false?

True

Which of the following describe the degree to which social benefits are unequally distributed and those patterns are perpetuated for life? a. social stratification b. social institution c. cultural practice d. cultural intelligence e. cultural stereotyping

a. social stratification

Which term describes the set of activities that firm managers undertake in order to try to put their firms in the best possible position to compete successfully in the marketplace. a. strategic management process b. SWOT c. value chain d. strategic positioning e. strategic analysis

a. strategic management process

In the retail industry, ABC tries to add value to their products and services so they can attract customers who are willing to pay a higher price. ABC can be described as utilizing which of the following strategy? a. global strategy b. differentiation strategy c. regional strategy d. local strategy e. cost-leadership strategy

b. Differentiation strategy

When a company decides to shrink its operations to reduce costs in order to survive, it is deploying a _____ strategy. a. integration b. defensive c. stability d. growth e. intensive

b. defensive

Navin Jain sold stock to investors in order to finance Sparkart, LLC, a company that markets software to track how many times music is played and shared among peers. Jain used ..... financing. a. entrepreneurial b. equity c. liquid d. venture e. debt

b. equity

Which of the following SWOT factors are internal to the firm? a. Threats and weaknesses b. Weaknesses and opportunities c. Threats and strengths d. Strengths and weaknesses e. Opportunities and threats

d. Strengths and weaknesses

A firm's___ environment includes components inside the firm and outside the firm. a. economic b. external c. socio-cultural d. competitive e. internal

d. competitive

Which of the following is NOT an activity of the strategic management process? a. create and choose strategies b. measure and evaluate performance c. vision and mission d. establish compensation for performance e. strategic analysis

d. establish compensation for performance

Which of the following is the final step of strategic management process? a. Strategic analysis b. create and choose strategies c. mission and vision d. measure and evaluate performance e. develop objectives

d. measure and evaluate performance

Michael Bronner made a fortune in the direct market business as the co founder and CEO of Bronner Slosberg Humphrey, a wildly successful direct-marketing firm. His newest venture, Upromise, Inc., enlists some of America's largest corporations to help families pay for college and is extremely successful. Entrepreneur Bronner would more than likely have which of the following characteristics? a. Ambitious b. Independent c. Self-confident d. visionary e. all of the above

e. all of the above

Which of the following is a general description of how the firm will try to accomplish the firm's vision? a. SWOT b. strategic analysis c. objective statements d. SMART framework e. Mission statement

e. mission statement

A_____ strategy is a strategy for a company to maintain its current income, market share, or geographic reach. a. defensive b. growth c. retrenchment d. divestiture e. stability

e. stability

Which term describes the process that firms use to study and understand the many different layers and aspects of their competitive environment? a. strategic positioning b. VRIO c. SWOT d. Value Chain e. Strategic analysis

e. strategic analysis

_______ is a mid-level planning that consists of broad ideas of what the country should do to pursue its mission. a. functional planning b. strategic planning c. operational planning d. system-based planning e. tactical planning

e. tactical planning

Which of the following describe the government policies through which countries agree to eliminate cross-border barriers to trade and to promote global integration? a. tariffs b. cultural practices c. globalization d. global strategy e. trade agreements

e. trade agreements

When Allison Logue found out her children were allergic to corn, she started looking for sweets and starches that were corn-free and was dismayed to find very few such products on the market. As a result, she has started her own small business to produce and market corn-free desserts. It is a small market, and Logue plans to keep her business small. Logue is an example of a(n):

micropreneur