Chapter4
1. A management __________ receives raw material from both the external and internal evaluation of an organization. a. advisor b. information system c. consultant d. strategic system e. accountant
information system
The only certain thing about the future of any organization is change.
True
1. Opportunity analysis is one of the basic functions of a. marketing. b. management. c. computer information systems. d. production/operations. e. research and development.
marketing.
Empirical indicators are resources that are either rare, hard to imitate, or a. expensive. b. inexpensive. c. easily substitutable. d. not easily substitutable. e. inefficient.
not easily substitutable.
The internal resource categories used in the resource-based approach are physical resources, human resources and a. financial resources. b. shareholder resources. c. organizational resources. d. natural resources. e. technological resources
organizational resources
1. Which function of management includes areas such as job design, job specification, job analysis and unity of command? a. planning b. organizing c. motivating d. staffing e. controlling
organizing
1. Which management function includes breaking tasks into jobs, combining jobs to form departments and delegating authority? a. motivating b. staffing c. organizing d. controlling e. planning
organizing
1. The Robinson-Patman Act affects a company's a. pricing methods. b. trucking methods. c. cost of products. d. employee costs. e. culture.
pricing methods.
1. What marketing function includes test marketing? a. selling products/services b. pricing c. customer analysis d. product/service planning e. distributing
product/service planning
1. What category of ratios includes return on total assets and return on stockholders' equity? a. leverage b. activity c. profitability d. growth e. liquidity
profitability
1. A standardized, detailed set of techniques and behaviors that manage anxieties, but seldom produce intended, technical consequences of practical results are called a. folktales. b. rites c. metaphors d. rituals e. values
rituals
1. What are historical narratives describing the unique accomplishments of a group and its leaders, usually in heroic terms. a. rites b. sagas c. stories d. myths e. folktales
sagas
1. Americans place an exceptionally high priority on __________ whereas many foreigners place more worth on __________. a. time; relationships b. relationships; time c. silence; time d. silence; relationships e. close personal distance; ample personal distance
time; relationships
1. Who does a planning horizon of two to five years applies to? a. top management b. general management c. middle management d. lower management e. all levels of management
top management
1. The process whereby a firm determines the costs associated with organizational activities from purchasing raw materials to manufacturing products to marketing those products is called a. the resource-based approach. b. value chain analysis. c. strategic cost analysis. d. the internal factor evaluation matrix. e. cost-benefit analysis.
value chain analysis.
1. Distribution includes a. customer analysis. b. pricing. c. warehousing. d. advertising. e. test marketing
warehousing.
1. Synergy is a. synthetic energy. b. when a team effort is used to achieve desired results. c. when individuals work separately to achieve desired results. d. when financial expectations of the firm are decided upon. e. employee energy.
when a team effort is used to achieve desired results.
Test marketing is used more frequently by industrial companies than consumer goods companies.
False
The controlling function of management is synonymous to strategy formulation.
False
1. ______ has been successful in determining R&D budget allocations. a. Financing as many project proposals as possible b. Using the percentage of sales method c. Budgeting for R&D about what competitors spend d. Deciding how many successful new products are needed e. All of the above have been used
All of the above
The management function of organizing is included in human resource management.
False
The idea that paying dividends results in a higher stock price is a myth.
True
1. All of the following are key questions that can reveal internal strengths and weaknesses in the management department except: a. Is the organization's structure appropriate? b. Are reward and control mechanisms effective? c. Are the organization's products positioned well among competing products? d. Does the firm use strategic management concepts? e. Do managers delegate authority well?
Are the organization's products positioned well among competing products?
1. Which function of management includes all of those activities undertaken to ensure actual operations conform to planned operations? a. Planning b. Organizing c. Motivating d. Staffing e. Controlling
Controlling
1. _______ can reveal the demographic characteristics of an organization's customers. a. Customer profiling b. Test marketing c. Market development d. The vision statement e. Telemarketing
Customer profiling
1. __________ become(s) __________ only when they are evaluated, filtered, condensed, analyzed and organized for a specific purpose, problem, individual, or time. a. Information; data b. Information; material c. Data; information d. Data; competitive advantages e. competitive advantages; material
Data; information
1. A firm's strengths that cannot be easily matched or imitated by competitors are called a. internal audits. b. distinctive competencies. c. external audits. d. special properties. internal properties
Distinctive competencies.
1. Which of the following is not a key question that can reveal internal strengths and weaknesses of the marketing department? a. Does the firm have an effective sales organization? b. Is our product quality good? c. Are markets segmented effectively? d. Are the firm's products and services priced appropriately? e. Does the firm have good liquidity?
Does the firm have good liquidity?
1. Which of the following is not a cultural product? a. Rites b. Emotions c. Rituals d. Sagas e. Symbols
Emotions
Allocating resources is one of the five basic activities (functions) performed by managers.
False
Although a useful step in the strategic management process, value chain analysis can rarely help a firm monitor whether its prices and costs are competitive
False
Capacity decisions concern the design of the physical production system.
False
Distribution becomes especially important when a firm is striving to implement a product development or backward integration strategy.
False
Distribution involves warehousing, marketing research, distribution channels, wholesaling and retailing.
False
Financial ratio analysis rarely has to go beyond the actual calculation and interpretation of ratios.
False
Financial ratios are not applicable to nonprofit organizations.
False
In most industries, only minor costs of producing a product or service are incurred within operations, so production/operations does not have great value as a competitive weapon in a company's overall strategy.
False
Leverage ratios measure a firm's ability to meet maturing short-term obligations.
False
Organizing is the cornerstone of effective strategy formulation.
False
Pfizer, which has the world's largest drug sales force, was planning on increasing their sales force by 15% in 2005.
False
Planning should be performed mostly by middle management and then presented to top management for analysis and approval.
False
Spending on research and development is steadily decreasing in the United States.
False
Successful strategy formulation generally rests upon the ability of an organization to sell some product or service.
False
Three areas, according to James Van Horne, comprise the functions or basic decision areas of finance: the investment decision, the financing decision and the earnings decision.
False
Total assets turnover ratio is calculated by dividing sales by fixed assets.
False
_______ exemplifies the complexity of relationships among the functional areas of business. a. Government audit b. External audit c. Financial ratio analysis d. Environmental scanning e. Distribution strategy
Financial ratio analysis
1. Which of the following is the first step in developing an IFE Matrix? a. Determining the organization's structure b. Summing the weighted scores for each variable c. Identifying the organization's strengths and weaknesses d. Identifying the organization's functions of business e. Determining the lead strategist
Identifying the organization's strengths and weaknesses
1. Which of the following ties all business functions together and provides the basis for all managerial decisions? a. Management b. Marketing c. Information d. Technology e. Workforce
Information
1. Which of these is the allocation and reallocation of capital and resources to projects, products, assets and divisions of an organization? a. Investment decision b. Dividend decisions c. Financing decisions d. Restructuring decisions e. Strategic decision
Investment decision
1. What category of ratios measures a firm's ability to meet maturing short-term obligations? a. Profitability b. Liquidity c. Leverage d. Activity e. Growth
Liquidity
Who should perform an internal audit? a. A private auditing firm b. The organization's accounting department c. Managers from different units of the organization d. A team of top-level managers and lower-level employees e. The chief executive officer
Managers from different units of the organization
1. ________ is not considered to be a function of marketing. a. Market segmentation b. Marketing research c. Customer analysis d. Opportunity analysis e. Distribution
Market segmentation
1. Which of the following is the process of influencing people to accomplish specific objectives? a. Staffing b. Motivating c. Planning d. Controlling e. Organizing
Motivating
1. In Europe, it is generally true that the farther __________ on the continent, the more participatory the management style. a. south b. east c. west d. north e. southeast
North
1. What is an up-front investment in success? a. Planning b. Organizing c. Motivating d. Staffing e. Controlling
Planning
1. What is the essential bridge between the present and the future that increases the likelihood of achieving desired results? a. Motivating b. Planning c. Controlling d. Staffing e. Organizing
Planning
1. _______ management deals with inputs, transformations and outputs that vary across industries and markets. a. Marketing b. Financial c. Research and Development d. Production/operations e. Distribution
Production/operations
The functions of information systems are growing in importance because organizations are becoming more complex, decentralized and globally dispersed.
True
1. According to Roger Schroeder, which of the following is not a basic function of production management? a. Capacity b. Inventory c. Workforce d. Transportation e. Quality
Transportation
A form of customer analysis is administering customer surveys.
True
A limitation of financial ratios is the fact that they are based on accounting data.
True
A new trend is to base advertising rates solely on sales rates with regard to advertising products or services on the Internet.
True
A ritual is a standardized, detailed set of techniques and behaviors that manage anxieties but seldom produce intended, technical consequences of practical importance
True
Activity ratios measure how effectively a firm is using its resources.
True
An opportunity analysis is an appraisal of the costs, benefits and risks associated with marketing decisions.
True
Benchmarking is an analytical tool used to determine whether a firm's value chain activities are competitive compared to rivals
True
Controlling is the management function that is most important for the evaluation stage of the strategic management process.
True
Dividend decisions concern issues such as the percentage of earnings paid to stockholders, the stability of dividends paid over time and the repurchase or issuance of stock.
True
Five major stakeholders that affect pricing decisions are consumers, governments, suppliers, distributors and competitors.
True
Increased efficiency, quality, productivity and job satisfaction can come from cross-training workers.
True
Internal Factor Evaluation Matrix is a summary step when conducting an internal strategic-management audit.
True
Internal R&D and contract R&D are the two basic forms of R&D in organizations.
True
Linkages between a firm's culture and strategies often determine success.
True
Marketing research is the systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services.
True
Motivation is one explanation why some people work hard and others do not.
True
The Internal Factor Evaluation Matrix should include from 10 to 20 key factors
True
The Internet was the fastest-growing segment of U.S. advertising spending in 2004 compared to 2003.
True
The purpose of organizing is to achieve coordinated effort by defining task and authority relations.
True
There are seven basic functions of marketing: customer analysis, selling, product and service planning, pricing, distribution, marketing research and opportunity analysis.
True
Value Chain Analysis can enable a firm to better identify its own strengths and weaknesses especially as compared to competitors' Value Chain Analyses
True
ºFour common approaches to determine R&D budget allocations used successfully are: (1) finance as many project proposals as possible; (2) use a percentage-of-sales method; (3) budget for R&D about what competitors spend; or (4) decide how many successful new products are needed and work backwards to estimate the required R&D investment.
True
1. Life-directing attitudes that serve as behavioral guidelines are called a. values. b. rites. c. beliefs d. metaphors e. legend
Values
1. _______ is a major component in motivation. a. Forecasting b. Organizational structure c. Recruiting d. Management development e. Communication
communication
1. All of the following are basic duties of a manager except: a. staffing. b. planning. c. consolidating. d. organizing. e. motivating.
consolidating
1. The IFE Matrix should be _____________ in multidivisional firms. a. constructed for each division b. all-inclusive c. constructed only for the major divisions d. developed before the EFE Matrix e. revised monthly
constructed for each division
1. Selling includes all of these marketing activities except: a. advertising. b. dealer relations. c. customer analysis. d. publicity. e. sales promotion.
customer analysis.
1. Staffing involves all of these activities except: a. recruiting. b. transferring. c. customer analysis. d. managing union relations. e. training and developing.
customer analysis.
Organizational resources include all of the following except: a. employee training. b. firm structure. c. planning processes. d. information systems. e. copyrights.
employee training.
1. A pattern of behavior developed by an organization as it learns to cope with its problems of external adaptation and internal integration that has worked well enough to be considered valid and to be taught to new members as the correct way to perceive, think and feel is called a. dysfunctional behavior. b. groupthink. c. behavior modification. d. organizational culture. e. internal audit effect.
organizational culture.
1. Which function of management is concerned with span of control and chain of command? a. planning b. organizing c. controlling d. directing e. evaluating
organizing
1. The initial step to implementing value chain analysis is a. attaching a cost to each discrete activity. b. establishing costs in terms of time. c. establishing costs in terms of money. d. converting the cost data into information by looking for competitive cost strengths and weaknesses. e. dividing a firm's operations into specific activities or business processes.
dividing a firm's operations into specific activities or business processes.
1. The first step in the controlling function of management is to a. take corrective actions. b. restrict breaks employees take. c. evaluate expense reports. d. establish performance standards. e. measure individual and organizational performance.
establish performance standards.
1. What category of ratios measures how effectively a firm can maintain its economic position in the growth of the economy and industry? a. profitability b. liquidity c. leverage d. activity e. growth
growth
1. Which decision concerns determining the best capital structure for the firm and includes examining various methods by which the firm can raise capital. a. investment b. dividends c. financing d. capital budgeting e. implementation
implementation
