MGT 413 Final

Corrective action should do all of the following EXCEPT

Avoid external opportunities

Which function of management includes all of those activities undertaken to ensure actual operations conform to planned operations?

Controlling

Under which strategy would you offer products or services to a wide range of customers at the lowest price available on the market?

Cost Leadership - Low Cost

Which of the following industries is likely to be the most profitable?

High entry barriers, little competition

Which of the follow industries is likely to be the least profitable?

High threat of substitutes, high rivalry

When the products being purchased are standard or undifferentiated, it results in ________ bargaining power of consumers.

Higher

Without assumptions, planning would be

Impossible

If a firm has a bad sustainability record this will

Increase investor scrutiny of the firm

The ____ decision is the allocation and reallocation of capital and resources to projects, products, assets, and divisions of an organization

Investment

If economies of scales are an industry's primary entry barrier, a new entrants major risk is:

Its inability to produce in sufficient volume to match the cost advantages of established producers

Financial objectives invoke all of the following EXCEPT

Larger Market Share

If rivalry and buyer power on the online dating industry are going to increase in the future, which of the following statements is the most accurate?

Less attractive to potential entrants

Which of the following is NOT one of the steps involved in constructing a SWOT matrix

List the firm's external weaknesses.

When a domestic company first begins to export to India, it is an example of

Market Development

Which strategy seeks to increase market share for present products or services in present markets through greater marketing efforts

Market penetration

Pricing is one of the basic functions of

Marketing

The aircraft industry has long been dominated by two large aircraft manufacturers, Boeing and Airbus. The demand for major aircraft is low, and Boeing and Airbus aggressively compete for orders from airlines. What effect will these conditions have on the domestic airline industry?

More attractive because of the decreased supplier power

Which of the following is the process of influencing people to accomplish specific objectives?

Motivating

Which of the following is the last step in developing an IFE matrix

Obtain total weighted score

Strategy-evaluation activities should ideally be performed

On a continuous basis

A pattern of behavior developed by an organization as it learns to cope with its problems of external adaptation and intend integration, and that had 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

Organizational culture

Which function of management includes areas such as job design, job specifications, job analysis, and unity of command?

Organizing

What is the essential bridge between the present and the future that increases the likelihood of achieving desired results

Planning

Which strategy generally entails large research and development expenditures

Product Development

Which barrier to entry do corporations such as P&G use to force new entrants to spend heavily to overcome existing customer loyalty?

Product differentiation

What category of ratios includes return on total assets and return on stockholders' equity?

Profitability

Which strategy is effective when new, but related, products could be offered at highly competitive prices

Related Diversification

Consider the video games industry. Sony makes the PlayStation 2 video game system. She's used to make the competing Dreamcast video game system. At the same time, Sega made games that people could buy to play on their PlayStation 2

Rivals and Complementors

Which of the following is NOT one of the perspectives from which the Balanced Scorecard allows firms to evaluate strategies

Social Responsibility

Culture and ________ must work together.

Strategy

Which of the following is not descriptive of a high level of bargaining power suppliers?

Substitutes are readily available

When using the External Factor Evaluation (EFE) Matrix, what is done after multiplying each factors weight by its rating to determine a weighted score?

Summing the weighted scores for each variable to determine the total weighted score for the organization

Since ________ resources can more easily be bought and sold, ________ resources are often more important for gaining and sustaining competitive advantages.

Tangible; Intangible

Which ratio is calculated by dividing profits before interest and taxes by total interest charges?

Times-interest-earned ratio

Horizontal integration is seeking ownership or increased control over competitors

True

Porters Five Forces model helps to determine both the nature of competition in an industry and then industry's profit potential

True

Significant barriers to entry are not always sufficient to keep some new firms from entering industries with higher-quality products, lower prices, and substantial marketing resources.

True

The IFE Matrix is an evaluation of the effectiveness of the firms current strategies, not taking into account opportunities and threats

True

The process of performing an internal audit, compared to the external audit, provides more opportunity for participants to understand how their jobs, departments and divisions fit into the whole organization

True

All of the following are basics functions of marketing EXCEPT

Value chain analysis

In which situation would horizontal integration be an especially effective strategy?

When an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for "tending substantially" to reduce competition

The maximum weight for a factor in the IFE matrix is

1

What is the range for a firms total weighted score in an External Factor Evaluation Matrix

1-4

A total weighted score of ________ in an External Factor Evaluation (EFE) Matrix indicates that an organization is responding in an outstanding way to existing opportunities and threats in its industry

4.0

What is the cornerstone of effective strategy evaluation

Adequate and timely feedback

If suppliers are unreliable or too costly, which of these strategies may be appropriate?

Backward Integration

Which of these strategies is effective when the number of suppliers is small and the number of competitors is large

Backward Integration

One difference between Competitive Profile Matrix (CPM) and an External Factor Evaluation (EFE) is that

CPM includes both internal and external issues

In the BCG matrix, a division with a high related market share position in a low growth industry can be described as a

Cash Cow

Which of the following is NOT included in measuring organizational performance

Comparing results to competitors' expectations

Intel and AMD supply more than 90% of the microprocessors in all PC's sold today. Therefore, the microprocessor market is ____ and bargaining power of buyers i.e. PC manufacturers, over Intel and AMD is ____.

Consolidated, Low

All of the following are basic activities of management EXCEPT

Consolidating

The initial step in developing an IFE matrix is

Developing a full a narrow list of key internal factors

A firm's strengths that cannot be easily matched or imitated by competitors are called

Distinctive competencies

Which of the following is NOT a key question that can reveal internal strengths and weaknesses regarding a firms marketing function

Does the firm have good liquidity

A differentiation strategy can only be achieved with a large target market

False

A forward integration strategy is used by firms to gain control or ownership of suppliers

False

Allocating resources is one of the four basic activities (functions) performed by managers

False

Organizations should prepare contingency plans just for unfavorable events

False

Proponents of the resource-based view argue that external factors are more important than internal factors for a firm in achieving and sustaining competitive advantage.

False

Regardless of the number of key opportunities and threats included in an External Factor Evaluation Matrix, the highest possible total weighted score for an organization is 4.0, and the lowest possible total weighted score is 0.0

False

The Porters Five Forces model framework is a tool that is used to determine why some firms consistently outperform other firms in the same industry

False

_____ advantages refer to the benefits a firm may achieve by entering a new market or developing a new product or service prior to rival firms

First Mover

An independent group of suppliers, such as farmers, gather to form a cooperative to sell their products to buyers directly, replacing their former distributor. This is an example of

Forward integration

An organization's present strategies, objectives, vision, and mission, coupled with the external and internal audit information, provide a basis for

Generating and evaluating feasible alternative strategies

Responsibility for encouraging ethical decision making and ensuring ethical behavior in a firm lies

With both a firm's strategists and its managers.