Chapter 1 mgmt eh (62-102)

63) Supplier stakeholders are concerned with A) assurance of a continued relationship with the firm. B) employee benefits. C) safe working conditions. D) capital appreciation.

A) assurance of a continued relationship with the firm.

86) Netflix inculcates a strategic management perspective by A) emphasizing transparency. B) creating an environment of non-sharing. C) obliging a top-down management style. D) training only high potential employees.

A) emphasizing transparency.

65) Firms must be aware of goals other than short-term profit maximization. One area of concern should be social responsibility, which is the A) expectation that business will strive to improve the overall welfare of society. B) idea that organizations are solely responsible to local citizens. C) fact that court costs could impact the financial bottom line. D) idea that businesses are responsible for maintaining a healthy social climate for their employees.

A) expectation that business will strive to improve the overall welfare of society.

98) Our goal is to help save 100,000 more lives each year. (Varian Medical Systems) This is an example of a A) nonfinancial strategic objective. B) financial strategic objective. C) vision statement. D) mission statement.

A) nonfinancial strategic objective.

95) The vision and mission statements of a company set the overall direction of the organization. Strategic objectives serve what role? 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

85) To inculcate a strategic management perspective, managers must create management ________ to foster change. A) processes B) buy-back C) structures D) edicts

A) processes

74) Some benefits of sustainability projects include A) reducing risks. B) lagging behind regulations. C) displeasing communities. D) ignoring employee morale.

A) reducing risks.

93) Although such visions cannot be accurately measured by a specific indicator of how well they are being achieved, they do provide a fundamental statement of the ________ of an organization. A) values, aspirations, and goals B) expected returns and limitations C) outstanding debt D) credibility

A) values, aspirations, and goals

100) Which of the following is not an example of a financial strategic objective? A) Increase sales growth 6 percent to 8 percent and accelerate core net earnings growth from 13 percent to 15 percent per share in each of the next 5 years. (Procter & Gamble) B) Reduce volatile air emissions 15 percent by 2015 from 2010 base year, indexed to net sales. (3M) C) Generate Internet-related revenue of $1.5 billion. (AutoNation) D) Cut corporate overhead costs by $30 million per year. (Fortune Brands)

B) Reduce volatile air emissions 15 percent by 2015 from 2010 base year, indexed to net sales. (3M)

91) Effective vision statements include A) all strategic directions of the organization. B) a brief statement of the company's direction. C) strategic posturing and future objectives. D) financial objectives and projected figures.

B) a brief statement of the company's direction.

82) Internal networks generate their power through the ________ of their ideas. A) validity and correctness B) conviction and clarity C) validation and recognition D) approval and awareness

B) conviction and clarity

64) Community stakeholders are concerned primarily with A) product warranties. B) corporate citizenship behavior. C) capital appreciation. D) repayment of principal.

B) corporate citizenship behavior.

83) Executive leaders champion and guide ideas by A) reinforcing ideas that did not work. B) creating a learning infrastructure. C) validating their formal authority. D) increasing their personal power.

B) creating a learning infrastructure.

94) In contrast to the vision of an organization, its mission should A) be shorter in length. B) encompass both the purpose of the company as well as the basis of competition. C) encompass all the major rules and regulations of the corporate work force. D) be less detailed.

B) encompass both the purpose of the company as well as the basis of competition.

79) Peter Senge, of MIT, recognized three types of leaders. Which of the following describes individuals who champion and guide ideas, create learning infrastructure, and establish a domain for taking action? A) local line leaders B) executive leaders C) internal networkers D) shop floor leaders

B) executive leaders

97) Fortune Brands states they will cut corporate overhead costs by $30 million a year. This is an example of a A) nonfinancial strategic objective. B) financial strategic objective. C) vision statement. D) mission statement.

B) financial strategic objective.

71) Sustainability programs often find their success beyond company boundaries, thus ________ systems and ________ metrics cannot capture all of the relevant numbers. A) external; bio B) internal; process C) external; external D) internal; internal

B) internal; process

69) According to a CEO survey by Accenture, ________ are not mutually exclusive corporate goals. A) quality and profitability B) sustainability and profitability C) ROI and quality D) availability and ROI

B) sustainability and profitability

92) WellPoint Health Network states: WellPoint will redefine our industry through a new generation of consumer-friendly products that put individuals back in control of their future. This is an example of a A) strategic objective. B) vision statement. C) vague statement of direction. D) line manager's individual goal.

B) vision statement.

78) Peter Senge, of MIT, recognized three types of leaders. ________ are individuals that, although having little positional power and formal authority, generate their power through the conviction and clarity of their ideas. A) Local line leaders B) Executive leaders C) Internal networkers D) Shop floor leaders

C) Internal networkers

66) According to the text, the triple bottom line approach to corporate accounting includes which three components? 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

75) Many organizations have a large number of functional areas with very diverse and sometimes competing interests. Such organizations will be most effective if A) each functional area focuses on achieving their own goals. B) goals are defined at the bottom and implemented at the top. C) functional areas work together to attain overall goals. D) management and employees have separate goals.

C) functional areas work together to attain overall goals.

99) In large organizations, conflicts can arise between functional areas. In order to resolve these conflicts, strategic objectives A) put financial objectives above human considerations. B) align departments toward departmental goals. C) help resolve conflicts through their common purpose. D) cause debate and increase conflict.

C) help resolve conflicts through their common purpose.

88) Richard Branson of the Virgin Group believes that the ________ of a person should not dictate the level of influence their ideas should be accorded. A) age B) seniority C) position D) education

C) position

68) According to the Corporate Citizenship poll conducted by Cone Communications, most Americans say they would be likely to switch brands to one associated with a good cause, if there are similarities between A) price and availability. B) availability and quality. C) price and quality. D) price and durability.

C) price and quality.

81) Local line leaders have ________ responsibility. A) local B) executive C) profit-and-loss D) no

C) profit-and-loss

76) Strategy formulation and implementation is a challenging ongoing process. To be effective, it should not involve A) the CEO and the board of directors. B) the board of directors, CEO, and CFO. C) rivals. D) line and staff managers.

C) rivals.

73) The case for sustainability projects needs to be made on the basis of a more holistic and comprehensive understanding of all the ________ benefits. A) measurable and unmeasurable B) financial and physical C) tangible and intangible D) measurable and physical

C) tangible and intangible

70) The ROI on sustainability efforts can be difficult to quantify because A) an excess of necessary data for accurate calculation is readily available. B) benefits from such projects are tangible. C) the payback period is on a different time frame. D) the payback period is on the same time frame.

C) the payback period is on a different time frame.

96) Successful organizations are effective in motivating people. Employees work best when A) they are asked to do their best. B) work requirements are vague and unclear. C) they are striving toward specific goals. D) they are guided by an abstract mission statement.

C) they are striving toward specific goals.

80) Leadership is a necessary (but not sufficient) condition for organizational success. Leaders should emerge at which level(s) of an organization? A) only at the top B) in the middle C) throughout the organization D) only during times of change

C) throughout the organization

77) The text argues that a strategic perspective in an organization should be emphasized A) at the top of the organization. B) at the middle of the organization. C) throughout the organization. D) from the bottom up.

C) throughout the organization.

89) The hierarchy of organizational goals is in the following order (least specific to most specific): 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.

90) Vision statements are used to create a better understanding of the overall purpose and direction of the organization. Vision statements A) are very specific. B) provide specific objectives. C) set organizational structure. D) are massively inspiring.

D) are massively inspiring.

(CSR) initiatives is A) suppliers. B) rivals. C) government agencies. D) consumers.

D) consumers.

72) Traditional financial models are built around relatively easy-to-measure, monetized results; whereas, the benefits of sustainability projects involve A) clear tangibles. B) clear intangibles. C) fuzzy tangibles. D) fuzzy intangibles.

D) fuzzy intangibles.

84) Richard Branson, founder of the Virgin Group, empowers his companies through a(n) ________ structure in which anyone can bring forth new ideas. A) formal B) hierarchal C) multi-level D) informal

D) informal

101) In large organizations, the potential exists for different parts of an organization to pursue its own goals rather than the overall company goals. Proper ________ can help to resolve conflicts when they arise. A) mission statements B) vision statements C) organization structure D) objectives

D) objectives

87) For strategic management to be effective in achieving organizational goals, A) people throughout the organization must work in isolation. B) top managers only take an integrative, strategic perspective. C) leaders alone are responsible for the organizational outcome. D) people throughout the organization must strive toward overall goals.

D) people throughout the organization must strive toward overall goals.

62) Wall Street executives have received excessive bonus pay in the past. This concerns which of the following stakeholder groups most directly? A) government B) suppliers C) creditors D) stockholders

D) stockholders