Test 2 Chapters 7-11 Study Guide
Which of the following is NOT an activity of strategic management process?
Establish compensation for future performance
Multipreneurs are businesspeople who have tried a succession of entrepreneurial start-ups without finding an area in which they could be successful.
False
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 prices.
False
Support activities, according to the value chain, are the actions a firm takes to directly provide a product or service to customers
False
The first step in starting your own business is the creation of a unique marketable idea.
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 details.
False
Transformational change refers to small refinements in current organizational practices or routines that do not challenge, but rather build on or improve, existing aspects and practices within the organization.
False
__________ is an entrepreneurial alliance between an innovator who has created at least one successful store and wants to grow and a partner who manages a new store of the same type in a new location.
Franchising
Which of these refers to small refinements in current organizational practices or routines that do not challenge, but rather build on or improve, existing aspects and practices within the organization?
Incremental change
__________ offer a way for a business to raise capital through federally registered and underwritten sales of shares in a company.
Initial public stock offerings
__________ are new venture creators working inside big companies; they are corporate entrepreneurs, using their company's resources to build a profitable line of business based on a fresh new idea.
Intrapreneurs
Which of the following describes the process of setting up organizational structures to address the needs of an organization and account for the complexity involved in accomplishing business objectives?
Organizational design
As a general rule of thumb, the more complex the potential change, the greater the need to involve employees in the process of planning and implementing change.
True
Culture change, among the most difficult kinds of changes to create within an organizational system, often involves reshaping and reimagining the core identity of the organization.
True
Demographics includes facts about income, education levels, age groups, and the ethnic and racial composition of a population.
True
Entrepreneurs are people with vision, drive, and creativity, who are willing to take the risk of starting and managing a business to make a profit.
True
People can add value to an organization by helping to reduce costs and providing something unique to customers.
True
Talent development and succession planning are two of the most critical human resource management processes within an organization.
True
The informal organization is emergent, meaning that it is formed through the common conversations and relationships that often naturally occur as people interact with one another in their day-to-day relationships.
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
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
To react to change more easily and develop products consumers want, managers and consultants engage in environmental scanning.
True
A 360-degree appraisal is the process of using __________ to gain a comprehensive perspective on one's performance.
every level involved with the employee
Which of the following is NOT a reason why small business thrives in the United States?
guaranteed profits
The skills, knowledge, and experience of an individual or group and its value to an organization refers to _____.
human capital
A firm's ______ environment includes components inside the firm and outside the firm.
competitive
A firm's _____ is the progression of activities it undertakes to create a product or service that consumers will pay for.
value chain
_____ are individual investors or groups of experienced investors who provide funding for start-up businesses.
Angel investors
Which of the following represents is one of the most difficult kinds of changes to create within an organizational system?
Cultural change
______ includes facts about income, education levels, age groups, and the ethnic and racial composition of a population.
Demographics
Which of the following argues that organizations exist as socially constructed systems in which people are constantly making sense of and enacting an organizational reality as they interact with others in a system?
Emergent approach
A small business and an entrepreneurial venture have similar goals.
False
A stability strategy involves developing plans to increase the size of the firm in terms of revenue, market share, or geographic reach.
False
Entrepreneurs, as a general group, dislike risk taking.
False
In collective bargaining, workers are paid while they are on strike.
False
In organizations today, success depends on talent acquisition outsourcing to external recruiters.
False
In the appreciative mindset, leaders assume that most people are inclined to resist change and therefore they need to be managed in a way that encourages them to accept change.
False
Which of these is a general description of how the firm will try to accomplish the firm's vision?
Mission statement
Which of the following SWOT factors are external to the firm?
Opportunities & threats
_____ is (are) the big-picture goals for the company.
Strategic Objectives
Which of the following refers to the systematic examination of a firm's internal and external situation that informs managerial decision-making?
Strategic analysis
Which of the following describe the high-level planning performed by company executives in order to set the overall direction of the company?
Strategic planning
__________ appraisals involve judgments about employee behavior.
Trait
A behavioral description interview explores what a job candidate has done in a previous position.
True
A firm's weaknesses are simply gaps in capabilities, and those gaps do not always have to be filled within the firm.
True
Performance management began as a simple tool to drive _____ but has evolved more recently into a tool used for _____.
accountability; employee development
The Equal Pay Act (EPA) of 1963
allows differences in pay in the case of a seniority system or merit system
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
The degree to which people are organized into subunits according to their expertise is referred to as:
specialization