Strategic Management: Chapters 1-4

According to Henry Mintzberg, the realized strategies of a firm: (Ch.1) a. are a combination of deliberate and emergent strategies b. are a combination of deliberate and differentiation strategies c. must be based on the strategic plan of the company d. must be kept confidential for competitive reasons

a. are a combination of deliberate and emergent strategies

SWOT analysis is a framework for analyzing the internal and external environment of a company. It consists of strengths, weaknesses, opportunities, and threats. According to a SWOT analysis, which of the following is not an aspect that the strategy of the firm must follow? (Ch.2) a. build on its weaknesses b. remedy the weaknesses or work around them c. take advantage of the opportunities presented by the environment d. protect the firm from the treats

a. build on its weaknesses

Human capital includes the capabilities, knowledge, skills and ______________ of an individual. (Ch.4) a. experience b. tasks c. physical attributes d. personal life

a. experience

In general, the threat of substitutes is heightened because the internet __________. (Ch.2) a. introduces new ways to accomplish the same task b. lowers switching costs c. lowers barriers to entry d. increases output per unit of cost

a. introduces new ways to accomplish the same task

Gathering competitive intelligence _____________. (Ch.2) a. is good business practice b. is illegal c. is considered unethical d. minimizes the need to obtain information in the public domain

a. is good business practice

The most intense rivalry results from __________. (Ch.2) a. numerous equally balanced competitors, slow industry growth, high fixed or storage costs b. few competitors, slow industry growth, lack of differentiation, high fixed or storage costs c. numerous equally balanced competitors, manufacturing capacity increases only in large increments, low exit barriers d. a high level of differentiation

a. numerous equally balanced competitors, slow industry growth, high fixed or storage costs

The vision and mission statements of a company set the overall direction of the organization. Strategic objectives serve what role? (Ch.1) a. operationalize the mission statement b. modify the mission statement c. are a shorter version of the mission statement d. are only clarified by the board of directors

a. operationalize the mission statement

Pfizer pharmaceutical patents provide ________ which supports inimitability. (Ch.3) a. physical uniqueness b. path dependency c. causal ambiguity d. social complexity

a. physical uniqueness

Which of these is not an example of socially complex organizational phenomena? (Ch.3) a. poor firm culture b. interpersonal relations among firm managers c. firm reputations among firm managers d. good reputation with customers

a. poor firm culture

The four key attributes of strategic management include the idea that: (Ch.1) a. strategy must be directed toward overall organizational goals and objectives b. strategy must be focused on long-term objectives c. strategy must be focused on one specific area of an organization d. strategy must focus on competitor strengths

a. strategy must be directed toward overall organizational goals and objectives

Which of the following is likely to be a result of unique, valuable, and difficult for rivals to copy competitive advantages? (Ch.1) a. a targeted outcome b. a sustainable outcome c. a focused outcome d. a popular outcome

b. a sustainable outcome

According to the text, the strategic management process entails three ongoing processes: (Ch.1) a. analyses, actions, and synthesis b. analyses, decisions, and actions c. analyses, evaluation, and critique d. analyses, synthesis, and antithesis

b. analyses, decisions, and actions

Managing a knowledge intensive workforce is very challenging. The best way for a firm to manage its workforce is to __________. (Ch.4) a. retain knowledge workers b. balance efforts in the attraction, selection, and retention of top talent c. attract the brightest employees d. ensure that it pays higher salaries than its rivals

b. balance efforts in the attraction, selection, and retention of top talent

In the knowledge economy, if a large portion of company value is in intellectual and human assets, the difference between the market value and book value of the company should ___________ a company with mostly physical and financial assets. (Ch.4) a. be equal to b. be larger than c. be smaller than d. not be correlated with

b. be larger than

Tacit knowledge ________. (Ch.4) a. is the same as explicit knowledge b. can be accessed only with the consent of the employees c. is found mostly at the lower levels of the organization d. can be codified but not reproduced

b. can be accessed only with the consent of the employees

Sales and engineering departments often have whose members who interact with their peers rather than across groups. This is best described as ________ in social network analysis. (Ch.4) a. a structural hole b. closure within the departments and a structural hole between them c. a bridging relationship d. closure

b. closure within the departments and a structural hole between them

In recent years, major airlines have changed hundreds of fares daily in response to competition. This pricing tactic is an example of using_________. (Ch.2) a. scenario analysis b. competitive intelligence c. switching costs d. corporate espionage

b. competitive intelligence

The management of intellectual property involves all of the following EXCEPT ________. (Ch.4) a. patents b. converting explicit knowledge to tacit knowledge c. contracts with confidentiality and noncompete clauses d. copyrights and trademark

b. converting explicit knowledge to tacit knowledge

The best measure of a company's ability to meet imminent financial obligations is known as the (Ch.3) a. debt ratio b. current ratio c. total asset turnover d. profit margin

b. current ratio

Two of the key inputs to developing forecasts discussed in the text are: (Ch.2) a. environmental scanning and stakeholder identification b. environmental scanning and competitor intelligence c. assessing internal strengths and environmental scanning d. environmental scanning and a SWOT analysis.

b. environmental scanning and competitor intelligence

In the resource-based view of the firm, examples of tangible resources include: (Ch.3) a. financial resources, human resources, and firm competencies b. financial resources, physical resources, and technological resources c. financial resources, physical resources, and the capacity to combine intangible resources d. outstanding customer services, innovativeness of products, and reputation

b. financial resources, physical resources, and technological resources

In the slow-growing airline industry, there are many equally balanced competitors selling products that lack differentiation. This marketplace is most likely to experience high ___________. (Ch.2) a. bargaining power of suppliers b. intensity of rivalry among competitors c. threat of new entrants d. threat of substitute products

b. intensity of rivalry among competitors

Microsoft has improved the ________ part of its value chain by providing formal reviews of its suppliers, which has helped to clarify expectations for them. (Ch.3) a. general administration b. procurement c. human resource management d. technology development

b. procurement

In value-chain analysis, the activities of an organization are divided into two major categories of value activities: primary and support. Which of the following is a primary activity? (Ch.3) a. purchasing key inputs b. repairing the product for the consumer c. recruiting and training employees d. monitoring the cost of producing the product through a cost accounting system

b. repairing the product for the consumer

A potential downside of ________ can arise when an individual uses the contacts they develop to pursue their own interests and agendas that may be inconsistent with the organization objectives. (Ch.4) a. electronic teams b. social capital c. social network analysis d. mentoring

b. social capital

Zero sum thinking is in direct contrast with ________ thinking. (Ch.1) a. emergent strategic b. symbiosis c. leadership d. creative

b. symbiosis

If a supplier group wants to gain market power, according to the Porter five-forces model, what conditions must exist? (Ch.2) a. there is low differentiation by the supplier b. there is a lack of importance of the buyer to the supplier group c. there is not a dominance by a few suppliers d. there is a significant importance of the buyer to the supplier group

b. there is a lack of importance of the buyer to the supplier group

Strategic management should take place at what organizational level? (Ch.1) a. at the top of the organization b. throughout the organization c. from the bottom up in an organization d. at the middle of the organization

b. throughout the organization

Ratios that reflect whether or not a firm is efficiently using its resources are known as (Ch.3) a. leverage ratios b. turnover ratios c. liquidity ratios d. profitability ratios

b. turnover ratios

Which of the following firms would likely pose the least competitive threat? (Ch.2) a. a firm in the same industry and in the same strategic group b. a firm that produces substitute goods to your product line c. a competitor to your product where a high switching cost exists d. a firm in the same industry and in the nearest strategic group looking to join your group

c. a competitor to your product where a high switching cost exists

According to the text, intellectual capital is the difference between the market value and the book value of a firm. Intellectual capital can be increased by __________. (Ch.4) a. increasing retention of below average workers b. decreasing labor costs c. attracting and retaining knowledgeable workers d. increasing the turnover of employees

c. attracting and retaining knowledgeable workers

For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have four attributes. Which of the following is not one of these attributes? (Ch.3) a. rare b. valuable c. easy for competitors to substitute d. difficult for competitors to imitate

c. easy for competitors to substitute

In order to take advantage of investment in human capital, a firm should __________. (Ch.4) a. rotate workers through functions in the company as quickly as possible b. refrain from training individual employees c. establish practices that will enhance employee retention d. keep employees in the same position forever

c. establish practices that will enhance employee retention

The three components of the triple bottom line approach to corporate accounting include _______, environmental, and social performance measures. (Ch.1) a. social b. stakeholder c. financial d. marketing

c. financial

The balanced scorecard, developed by Kaplan and Norton, helps to integrate ________. (Ch.3) a. financial analysis and the reputation of a firm b. intangible resources and operational measures c. financial analysis and stakeholder perspectives d. short-term perspectives and strategic positioning

c. financial analysis and stakeholder perspectives

According to the text, the triple bottom line approach to corporate accounting includes three components: (Ch.1) a. financial, environmental, and customer b. financial, organizational, and customer c. financial, environmental, and social d. financial, organizational, and psychological

c. financial, environmental, and social

Threat of substitute products comes from _________. (Ch.2) a. other companies in the same industry b. foreign companies which can use cheap labor in their countries c. firms in other industries that produce products or services that satisfy the same customer need d. new companies in the same industry

c. firms in other industries that produce products or services that satisfy the same customer need

The creation of knowledge assets is typically characterized by __________. (Ch.4) a. high upfront costs and subsequent high variable costs b. high fixed costs and high variable costs c. high upfront costs and low variable costs d. low upfront costs and high variable costs

c. high upfront costs and low variable costs

Toyota uses Just-in-Time systems. These are considered part of which primary activity in the value chain? (Ch.3) a. service b. operations c. inbound logistics d. outbound logistics

c. inbound logistics

The makeup of goods and services in the Gross Domestic Products of developed countries has changed over the last decade. More than 50 percent of the value of GDP of developed countries is based on __________. (Ch.4) a. clothing and apparel b. capital accumulation c. knowledge d. financial management

c. knowledge

There are several perspectives of competition. One perspective is zero-sum thinking. Zero-sum thinking means that: (Ch.1) a. all parts of the organization gain at no loss b. in order for someone to gain others must experience no gain or benefit c. one can only gain at the expense of someone else d. everyone in the organization shares gains and losses equally

c. one can only gain at the expense of someone else

Which of the following is not an advantage of Just-In-Time inventory systems? (Ch.3) a. reduced raw material storage costs b. minimized idle production facilities and workers c. reduced dependence on suppliers d. reduced work-in-progress inventories

c. reduced dependence on suppliers

Which is considered a force in the Five-Forces model? (Ch.2) a. increased deregulation in an industry b. the threat of government intervention c. rivalry among competing firms d. recent technological innovation

c. rivalry among competing firms

Larger numbers of women entering the work force since the early 1970s is an example of ________. (Ch.2) a. demographic changes b. political and legal environmental changes c. sociocultural changes d. technological developments

c. sociocultural changes

__________ may be considered the advance work that must be done in order to effectively formulate and implement strategies. (Ch.1) a. goal setting b. corporate entrepreneurship c. strategy analysis d. organizational design

c. strategy analysis

The resource-base view (RBV) of the firm combines two perspectives: (Ch.3) a. the primary and support activities of the firm b. the interrelationships among the primary activities of the firm and corporate management c. the internal analysis of the firm and the external analysis of the industry and competitive environment d. the industry and the competitive environment

c. the internal analysis of the firm and the external analysis of the industry and competitive environment

Generally, employees are most likely to stay with an organization if __________. (Ch.4) a. the employer provides high salaries to technology professionals b. the firm is in a high tech industry c. the organization mission and values align with the employees mission and values d. the mission and values of the organization change often

c. the organization mission and values align with the employees mission and values

The three participants in corporate governance are: (Ch.1) a. the shareholders, board of directors, and employees b. the shareholders, labor unions, and employees c. the shareholders, board of directors, and management d. the shareholders, banks and lending institutions, and management

c. the shareholders, board of directors, and management

If another major airline enters the marketplace, competitor profits can be affected. Which of the following aspects of the Porter five-forces model is described by this phenomenon? (Ch.2) a. the bargaining power of suppliers b. the threat of substitute products c. the threat of new entrants d. the intensity of rivalry among competitors

c. the threat of new entrants

The hierarchy of organizational goals is in this order (least specific to most specific): (Ch.1) a. vision statements, strategic objectives, mission statements b. mission statements, strategic objectives, vision statements c. vision statements, mission statements, strategic objectives d. mission statements, vision statements, strategic objectives

c. vision statements, mission statements, strategic objectives

Management innovations such as total quality, benchmarking, and business, process reengineering cannot lead to sustainable competitive advantage because: (Ch.1) a. companies that have implemented these techniques have lost money b. there is no proof that these techniques work c. they cost too much money and effort to implement d. every company is trying to implement them and hence it does not make a company different from others

d. every company is trying to implement them and hence it does not make a company different from others

In studying the general environment, organizations look at the effects of currency exchange rates on their business activity. In the general environment, the evaluation of exchange rates fall under which category? (Ch.2) a. demographic b. political/legal c. economic d. global

d. global

In a retail service industry, which of the following is not a primary value-chain activity? (Ch.3) a. purchasing goods b. operating stores c. partnering with vendors d. human resource management

d. human resource management

Which of the following lists consists of support activities? (Ch.3) a. human resource management, technology development, customer service, and procurement b. human resource management, customer service, marketing and sales, and operations c. customer service, information systems, technology development, and procurement d. human resource management, technology development, procurement, and firm infrastructure

d. human resource management, technology development, procurement, and firm infrastructure

Buyer power will be greater when ________. (Ch.2) a. the products purchased are highly differentiated b. there are high switching costs c. the industry product is very important to the quality of the buyer end products or services d. it is concentrated or when a buyer group purchases large volumes relative to seller sales

d. it is concentrated or when a buyer group purchases large volumes relative to seller sales

All activities associated with transforming inputs into the final product form, such as machining, packaging and assembly, are known as ______ in the value chain. (Ch.3) a. just-in-time inventory management b. outbound logistics c. inbound logistics d. operations

d. operations

Advertising is a __________ activity. Supply of replacement parts is a __________ activity. (Ch.3) a. support; primary b. support; secondary c. primary; support d. primary; primary

d. primary; primary

In the Five-Forces model, conditions under which a supplier group can be powerful include all the following EXCEPT: (Ch.2) a. lack of importance of the buyer to the supplier group b. high differentiation by the supplier c. dominance by a few suppliers d. readily available substitute products

d. readily available substitute products

In which view of leadership, is the leader seen as the key force in determining the success of the organization? (Ch.1) a. internal b. external c. personal d. romantic

d. romantic

Social capital has downsides. Which of the following is a downside? (Ch.4) a. high social capital may breed groupthink, that is, a tendency to question shared beliefs b. socialization processes is inexpensive c. individuals may become more willing to collaborate on joint projects d. social capital may both breed groupthink and the socialization processes to create it (orientation, training, etc.) can be expensive

d. social capital may both breed groupthink and the socialization processes to create it (orientation, training, etc.) can be expensive