BUAD 479 Chapters 1, 2, 3
Asking the question ________________ is synonymous with asking "What is our mission?" A. What is our business? B. What are we doing? C. What is our objective? D. Why are we here? E. Where are we going?
a
In multidivisional organizations, should divisional units perform strategic-management tasks, including the development of their own statement of vision and mission? A. Yes B. No C. Sometimes D. Under certain conditions or situations E. C and D above
a
Is the following statement true? A benefit of developing a comprehensive mission statement is that divergent views among managers can be revealed and resolved through the process. A. Yes B. Sometimes C. No D. Never E. Yes, when diversity among top managers is high
a
What is often considered to be the first step in strategic planning? A. Developing a vision statement B. Securing capital to operate C. Establishing objectives D. Devising a mission E. Obtaining shareholders or financial supporters
a
What source provides excellent online information and advice on approximately 1,700 stocks, more than 90 industries, the stock market, and the economy, including company income statements and balance sheets? A. Value Line Investment Survey B. Standard & Poor's NetAdvantage C. IBISWorld D. Lexis-Nexis Academic E. Mergent Online
a
Which of the following statements is false? A. Regarding weights in a CPM or EFE Matrix, be mindful that 0.08 is mathematically 25 percent higher than 0.06, so even small differences can reveal important perceptions regarding the relative importance of various factors. B. The ratings in a CPM refer to strengths and weaknesses, where 4 = major strength, 3 = minor strength, 2 = minor weakness, and 1 = major weakness. C. Critical success factors in a CPM include both internal and external issues; therefore, the ratings refer to strengths and weaknesses, where 4 = major strength, 3 = minor strength, 2 = minor weakness, and 1 = major weakness. D. Avoid assigning the same rating to firms included in a CPM analysis. E. The weights and total weighted scores in both a CPM and an EFE have the same meaning.
a
A meta-analysis of 20 years of empirical research on mission statements came to what conclusion? A. There is no relationship between mission statements and measures of financial organizational performance. B. There is a small positive relationship between mission statements and measures of financial organizational performance. C. There is a large negative relationship between mission statements and measures of financial organizational performance. D. There is a small negative relationship between mission statements and measures of financial organizational performance. E. None of the above
b
Consistent business success rarely happens by chance. How does it happen? A. By using analytical strategic management matrices in developing a strategic plan B. It most often results from careful planning followed by diligent, intelligent, hard work C. By motivating managers and employees effectively D. By effectively combining intuition with analytical thinking E. By forming effective alliances and coalitions
b
Dale McConkey said, "Plans are less important than planning." What does this statement mean? A. Honesty, integrity, and humility are vitally important in strategic planning. B. Communication, understanding, and commitment are vitally important in strategic planning. C. The strategic planning narrative is not that important. D. The strategic planning matrices are not that important. E. Manager and employee involvement in decision making is important.
b
Generally, in war, the best policy is to take a state intact; to ruin it is inferior to this. To capture the enemy's entire army is better than to destroy it; to take intact a regiment, a company, or a squad is better than to destroy it. For to win 100 victories in 100 battles is not the epitome of skill. What is the epitome of skill? A. To use shock and awe as rapid victory strategies B. To subdue the enemy without fighting C. To form alliances and coalitions to fight all your battles D. To win nearly all battles regardless of the number E. To win all battles regardless of the number
b
To build four new manufacturing plants in Europe is an example of a(n) ____________. A. opportunity B. strategy C. threat D. weakness E. strength
b
When should a vision statement reveal the type of business in which the firm engages? A. When the firm is a monopoly or oligopoly B. Always C. When the firm has diverse businesses D. When the firm has a mission statement as well E. Sometimes, depending on the firm top strategist's preferences
b
Which of the following statements is false? A. The ratings in a CPM refer to strengths and weaknesses, where 4 = major strength, 3 = minor strength, 2 = minor weakness, and 1 = major weakness. B. You may assign the same rating to firms included in a CPM analysis if the firms are similar on the respective factor. C. Regarding weights in a CPM or EFE Matrix, be mindful that 0.08 is mathematically 33 percent higher than 0.06, so even small differences can reveal important perceptions regarding the relative importance of various factors. D. The weights and total weighted scores in both a CPM and an EFE have the same meaning. E. Critical success factors in a CPM include both internal and external issues; therefore, the ratings refer to strengths and weaknesses, where 4 = major strength, 3 = minor strength, 2 = minor weakness, and 1 = major weakness.
b
Which of the following statements is true? A. Just because one firm receives a 3.20 overall rating and another receives a 2.80 in a CPM, it follows that the first firm is precisely 12.5 percent better than the second, and that the first firm is better in some areas. B. Just because one firm receives a 3.20 overall rating and another receives a 2.80 in a CPM, it does not necessarily follow that the first firm is precisely 14.3 percent better than the second, but it does suggest that the first firm is better in some areas. C. Just because one firm receives a 3.20 overall rating and another receives a 2.80 in a CPM, it does not necessarily follow that the first firm is precisely 12.5 percent better than the second, but it does suggest that the first firm is better in some areas. D. When one firm receives a 3.20 overall rating and another receives a 2.80 in a CPM, it follows that the first firm is precisely 14.3 percent better than the second. E. Just because one firm receives a 3.20 overall rating and another receives a 2.80 in a CPM, it does not necessarily follow that the first firm is precisely 14.3 percent better than the second, but it does suggest that the first firm is much better in many areas.
b
Who said: "Perfection is not attainable. But if we chase perfection, we can catch excellence." A. Chuck Noll, Head Coach Pittsburgh Steelers (1969-91) B. Vince Lombardi, Head Coach Green Bay Packers (1959-67) C. Tom Landry, Head Coach Dallas Cowboys (1960-88) D. President Barack Obama (2015) E. George S. Halas, Head Coach Chicago Bears (1933-42, 1946-55, 1958-67)
b
A fundamental strategy-evaluation activity includes what? A. Reviewing external and internal factors that are the bases for current strategies. B. Measuring performance. C. Reviewing external and internal factors that are the bases for current strategies, measuring performance, and taking corrective actions. D. Taking corrective actions. E. Monitoring employees.
c
According to Menz and Sheef, when are chief strategy officers (CSOs) most often hired? A. As top management team interdependence increases B. As the business portfolio increases (e.g., the firm becomes more diversified) C. When there is an increase in management interdependence and growth in acquisition activity D. When there is no chief operating officer (COO). E. All of the above
c
According to the chapter, an important question to answer in developing a strategic plan is: A. Where is the captain? B. How are we going to get there? C. Where are we now?, where do we want to go?, and how are we going to get there? D. Where do we want to go? E. Where are we now?
c
According to the chapter, the worst thing strategists can do is develop strategic plans themselves and then do what? A. Begin changing the plans. B. Place the plans on the corporate website. C. Present the plans to operating managers to execute. D. File the plans away in a file cabinet. E. Go on vacation.
c
Chapter 2 says "to have a vision that says 'to become the best retailing firm in the USA' " is _____________________. A. too short B. weak C. much too broad D. excellent E. admirable
c
External forces can be divided into five broad categories, including the following category: A. Ethics B. Sustainability C. Technology D. A & C E. B & C
c
Finish this sentence: According to Drucker, the most important time to ask seriously "What do we want to become?" and "What is our business?" is ____________________. A. when the company's vision statement has been altered B. when a company's long-term objectives have been established C. when a company has been successful D. when a company has been unsuccessful E. when a company buys another company
c
Guidelines, rules, and procedures established to support implementation efforts are called what? A. Strategies B. Objectives C. Policies D. Strengths E. Opportunities
c
In writing a mission statement, and trying to include the customer component, is it sufficient to simply include the word "customer" in the statement? A. Oftentimes B. Yes C. No D. Occasionally E. Sometimes
c
Most practitioners and academicians of strategic management feel that an effective statement should include ______ mission statement components. A. 6 B. 3 C. 9 D. 15 E. 12
c
Strategic management is based on the idea that organizations should monitor internal and external trends how often? A. Monthly B. Quarterly C. Continually D. Annually E. Periodically
c
The Industrial Organization view of strategic planning advocates that external (industry) factors are more important than internal ones for gaining and sustaining competitive advantage. Do the authors David and David agree? A. No. Internal factors are controllable and external factors are not. B. Yes. It is like an ocean tide rising or falling. No one can stop that flow. C. No. Matching key external opportunities and threats with key internal strengths and weaknesses provides the basis for successful strategy formulation. D. No. Internal factors (strengths and weaknesses) are more important. E. Yes. Michael Porter is correct.
c
The range of total weighted scores in a CPM Matrix is: A. 1.0 to 5.0. B. 0.0 to 5.0. C. 1.0 to 4.0. D. 1.0 to 6.0. E. 0.0 to 4.0.
c
The recommended length of a mission statement is how many words? A. Fewer than 500 B. Fewer than 75 C. Fewer than 150 D. Fewer than 25 E. Fewer than 300
c
The state in the United States with highest state taxes is ___________ and the state with the lowest state taxes is ______________. A. California; Mississippi B. California; Alaska C. New York; Wyoming D. California; South Dakota E. New York; Alaska
c
Unskilled leaders work out their conflicts in courtrooms and battlefields. Brilliant strategists rarely go to battle or to court; they generally achieve their objectives how? A. Through amassing superior forces against a rival's weak areas B. Through an all-out assault on the rival C. Through tactical positioning well in advance of any confrontation D. Through communication with the rival's leaders E. Through negotiation and compromise
c
When comparing mission statements of rival firms, perhaps the most important component to examine is what? A. Customers B. Employees C. Self-concept D. Concern for survival, growth, and profitability E. Philosophy
c
Which of the following statements is false? A. Excess specificity in a mission statement would limit the potential of creative growth for the organization. B. A good mission statement allows for the generation and consideration of a range of feasible alternative objectives and strategies without unduly stifling management creativity. C. Apple Computer's mission statement should not open the possibility for diversification by Apple into pesticides. D. A mission statement needs to be broad to reconcile differences effectively among, and appeal to, an organization's diverse stakeholders. E. An overly general mission statement that does not exclude any strategy alternatives could be dysfunctional.
c
Which statement(s) given below is/are false? A. During the process of developing vision and mission statements, some organizations use discussion groups of managers to develop and modify existing statements. B. The process of developing a mission statement should create an "emotional bond" and "sense of mission" between the organization and its employees. C. An outside person with expertise in developing such statements, who has unbiased views, should not actually manage the mission statement-development process. D. A & B above E. B & C above
c
______________ is "the science of planning and directing large-scale military operations, of maneuvering forces into the most advantageous position prior to actual engagement with the enemy." A. Mission development B. Formulating objectives C. Strategy D. Coordination E. Leadership
c
___________________ is the act of strengthening employees' sense of effectiveness by encouraging them to participate in decision making and to exercise initiative and imagination, and rewarding them for doing so. A. Leadership B. Involvement C. Empowerment D. Motivation E. Encouragement
c
A mission statement should include the following components: A. customers, products/services, markets, and technology B. survival/growth/profitability, philosophy, self-concept, and public image C. enduring, inspiring, and reconciliatory D. A and B above E. A, B, and C above
d
According to Chapter 1, ____________ may be the most important word in management. A. implementation B. strategy C. planning D. communication E. strategist
d
According to Michael Porter, the nature of competitiveness in a given industry can be viewed as a composite of the following forces: A. Rivalry among competing firms and potential entry of new competitors. B. Potential development of substitute products and bargaining power of consumers. C. Bargaining power of suppliers and bargaining power of distributors. D. A and B E. A, B, and C
d
A pitfall(s) to watch for and avoid in strategic planning, as listed in the chapter, is: A. using strategic planning to gain control over decisions and resources. B. doing strategic planning only to satisfy accreditation or regulatory requirements. C. failing to communicate the plan to employees, who continue working in the dark. D. All of the above E. A & B above
d
How many key external factors should be included in an EFE Matrix? A. 15 B. 25 C. 10 D. 20 E. 30
d
In an EFE Matrix, how much more important is a rating of 4 than a rating of 3? A. 50% B. 66% C. 25% D. 33% E. 20%
d
In writing a mission statement, if you say "We follow the golden rule in all that we do," as is stated in the L'Oreal statement, that sentence would satisfy what component? A. Ethics B. Self-concept C. Markets D. Philosophy E. Integrity
d
Recent research by Rose and Cray examined the strategic-management process and concluded that perhaps the most important "activity" is what? A. Deciding upon long-term and annual objectives B. Developing vision and mission statements C. Deciding upon internal strengths and weaknesses D. The feedback loop E. Deciding upon external opportunities and threats
d
The population of the world recently surpassed ___ billion; the United States has slightly more than ___ million people. A. 28; 910 B. 1; 110 C. 21; 910 D. 7; 310 E. 14; 610
d
The term strategic planning is used synonymously in this text with what other term? A. Long-range planning B. Strategy implementation C. Scenario planning D. Strategic management E. Strategy formulation
d
The weight column in an EFE Matrix must sum to what number? A. 2.0 B. The sum may vary between 1.0 and 5.0. C. 3.0 D. 1.0 E. 4.0
d
The "markets" component of mission statements refers to _____________. A. the industries in which the company operates B. the supplier and distributor network of the firm C. the sectors in which the company operates D. the regions in which the company operates E. the segments in which the company operates
d
To survive and prosper, a business must gain and sustain ___________ major competitive advantages over rival firms. A. two B. at least fifteen C. as many as one hundred D. at least several E. one
d
Two exemplary, hypothetical mission statements are provided near the end of Chapter 2 for what two companies? A. Apple and IBM B. Ford and General Motors C. Kroger and Publix D. Avon and L'Oreal E. Starbucks and Chipotle
d
Which of the following statements is true? A. Regardless of the number of key opportunities and threats included in an EFE Matrix, the highest possible total weighted score for an organization is 8.0 and the lowest possible total weighted score is 1.0. B. Regardless of the number of key opportunities and threats included in an EFE Matrix, the highest possible total weighted score for an organization is 10.0 and the lowest possible total weighted score is 0.0. C. Regardless of the number of key opportunities and threats included in an EFE Matrix, the highest possible total weighted score for an organization is 4.0 and the lowest possible total weighted score is 0.0. D. Regardless of the number of key opportunities and threats included in an EFE Matrix, the highest possible total weighted score for an organization is 4.0 and the lowest possible total weighted score is 1.0. E. Statements A through D are false.
d
A firm can achieve sustained competitive advantage by doing what? A. Continually adapting to changes in external trends and events and internal capabilities, competencies, and resources B. Effectively formulating, implementing, and evaluating strategies that capitalize on changes in trends and internal capabilities C. Monitoring employees continuously D. All of the above E. A and B
e
According to Michael Porter, the nature of competitiveness in a given industry can be viewed as a composite of the five forces. Which force is usually the most powerful? A. Bargaining power of suppliers B. Potential development of substitute products C. Bargaining power of consumers D. Potential entry of new competitors E. Rivalry among competing firms
e
According to Vern McGinnis, a mission statement should do what? A. Distinguish a given organization from all others B. Serve as a framework for evaluating both current and prospective activities C. Define what the organization is and what the organization aspires to be D. Be limited enough to exclude some ventures and broad enough to allow for creative growth E. All of the above
e
An MIS technique that involves using software to mine huge volumes of data to help executives make decisions is called: A. predictive analytics. B. machine learning. C. data mining. D. business analytics. E. All of the above
e
An advantage of a strong dollar include which of the following? A. Companies with substantial outside U.S. operations see their overseas expenses, such as salaries paid in euros, become cheaper. B. It gives U.S. companies greater firepower for international acquisitions. C. Companies importing goods have greater buying power because their dollars now go further overseas. D. A & B above E. A, B, and C above
e
An example of an economic variable is "value of the dollar" that recently hit a 7-year high compared with the yen, a 9-year high compared with the euro, a 5-year high compared with the Australian dollar, and an 11-year high compared with some other currencies. The high dollar results in what economic factor(s)? A. The high dollar makes it expensive for foreigners to travel to the United States. B. The high dollar makes it cheap for Americans to travel abroad. C. The high dollar makes U.S. goods more expensive in overseas markets. D. The high dollar worsens the U.S. trade deficit. E. All of the above
e
An excellent source of industry information, including Industry Profiles and trade statistics for many industries, is provided at what website? A. www.finance.aol.com B. www.google.industries.com C. www.finance.yahoo.com D. www.hoovers.industries.com E. http://globaledge.msu.edu/industries/
e
Are the interpretations of the weights in a CPM and EFE Matrix the same? A. Sometimes B. No C. Never D. Usually E. Yes
e
Good mission statements identify the utility of a firm's products to its customers. What is a synonym for utility? A. Usefulness B. Value C. Importance D. Importance and usefulness E. Value, importance, and usefulness
e
In an EFE Matrix, how much more important is a weight of 0.20 than a weight of 0.15? A. 25% B. 5.0% C. 50% D. .05% E. 33%
e
In an EFE Matrix, the average total weighted score is: A. 3.5. B. 2.0. C. 4.0. D. 3.0. E. 2.5.
e
King and Cleland recommend that organizations carefully develop a written mission statement in order to reap the following benefit: A. to provide a basis for the allocation of resources. B. to provide a basis for organizing work, departments, activities, and segments around a common purpose. C. to provide a basis for prioritization of key internal and external factors utilized to formulate feasible strategies. D. to make sure all employees/managers understand the firm's purpose or reason for being. E. All of the above
e
Official business failure calculations include what events? A. Bankruptcies and foreclosures B. Liquidations and court-mandated receiverships C. Reverse mortgages and buyouts D. All of the above E. A & B
e
Regarding vision statements, which statement below is false? A. Vision statements should be two sentences or less in length. B. Vision statements should do more than identify the product/service a firm offers. C. Vision statements should be written from a customer perspective. D. Vision statements should answer the question "What is our mission?" E. A and D above
e
Strengths and weaknesses can be determined by elements of being rather than performance. For example, ______________. A. a strength may involve ownership of natural resources B. a strength may be a historic reputation for quality C. a weakness may be a current ratio below 1.0 D. All of the above E. A & B above
e
The bargaining power of consumers can be the most important force affecting competitive advantage. Consumers gain increasing bargaining power under the following circumstance(s): A. If they can inexpensively switch to competing brands or substitutes B. If sellers are struggling in the face of falling consumer demand C. If they are particularly important to the seller D. If they are informed about sellers' products, prices, and costs E. All of the above
e
Which of the following activities are included in strategy implementation? A. Develop a strategy-supportive culture and create an effective organizational structure. B. Motivate employees and allocate resources. C. Redirect marketing efforts and prepare budgets. D. Establish annual objectives and devise policies. E. All of the above
e
Which of the following is listed in the chapter as a reason often given for poor or no strategic planning in a firm? A. Laziness B. No monetary rewards for doing planning C. No formal training in strategic management D. Overconfidence E. All of the above
e
Which of the following statements is false? A. Some organizations have no stated vision or mission statement. B. The proposed exemplary mission statement for Avon given near the end of the chapter consists of 3 sentences and 58 words total. C. An excellent mission statement could consist of two sentences and 30 words. D. All mission statements should include all nine components and all nine characteristics. E. An excellent mission statement could be shorter than an excellent vision statement.
e
Which of the following statements is true? A. An effective mission statement paves the way for an effective vision statement. B. First and foremost, mission statements should be employee-oriented, and then shareholder-oriented. C. A single-division organization could have several mission statements for different purposes. D. Mission statements should not be published for competitors to see. E. There is no one best mission statement for a particular organization.
e
Which of the following statements is true? A. Wild guesses oftentimes must be made in formulating strategies, but reasonable assumptions based on available information must always be made. B. Wild guesses should sometimes be made in formulating strategies, and reasonable assumptions based on available information must sometimes be made. C. Wild guesses should never be made in formulating strategies, but reasonable assumptions based on available information must oftentimes be made. D. Wild guesses should rarely be made in formulating strategies, but reasonable assumptions based on available information must usually be made. E. Wild guesses should never be made in formulating strategies, but reasonable assumptions based on available information must always be made.
e
Which statement given below is false? A. Some companies develop mission statements simply because owners or top management believe it is fashionable, rather than out of any real commitment. B. Some strategists spend almost every moment of every day on administrative and tactical concerns, ignoring the importance of a clear mission. C. Managers at Johnson & Johnson (J&J) meet regularly with employees to review, reword, and reaffirm the firm's vision and mission. D. A and C above E. None of the above
e
Which states have zero state income tax? A. Texas and Florida B. Nevada, Alaska, and Wyoming C. South Dakota and Washington D. A and B E. A, B, and C
e
Why are both profit and vision needed to motivate a workforce effectively? A. Vision is viewed negatively by some stakeholders of a firm. B. Top executive bonuses are oftentimes based on accomplishing a mission and vision. C. Manager and employee bonuses are usually based on profit. D. Profit and vision statements are usually found in an Annual Report. E. Profit is viewed negatively by some stakeholders of a firm.
e