Strategic Management - OBC1

All of the following would be considered organizational skills and resources that foster a differentiation strategy except which one?

Products of services designed for ease of manufacture or delivery

Strategic advantages of a functional organization structure would include all but which one of the following?

Promotes functional rivalry

According the BCG growth-share matrix, which of the following would be most likely to possess a low market share and a high growth rate?

Question mark

Which one of the following would not be considered a method a firm can engage in to enhance an eco-efficient strategy?

Reducing waste while enlarging product packaging size

The type of executive bonus compensation that is noted for promoting longer executive tenure than other forms is which one of the following?

Restricted stock plans

All of the following would be considered true about a firm at the start of its globalization process except which one?

Restructuring of the firm's hierarchy must be undertaken prior to entering the global marketplace

Simon Ize is the owner of a company (2-Shine Simon Ize-It) that specializes in a variety of floor waxing and polishing products. His company managers are in the process of finding answers to such questions as: How well is our current strategy working? and What is our current situation? In order to obtain the answers to these types of questions Simon's company is most likely to conduct which one of the following?

SWOT analysis

Which one of the following would not be classed as a necessary financial strength factor to be considered when a company is constructing its industry attractiveness-business strength matrix?

Sales volatility

As a corporation grows into that of being a global operation, it can expect to undergo the need for various progressively involved strategy levels. At which level should a corporation most likely expect to face the challenge of foreign licensing and technology transfer?

Second level

Tom's sandwich shop in Metuchen, New Jersey is likely to most effectively engage in which of the following types of organizational structure?

Simple

Businesses with many sources of advantage that are characterized by high levels of skill in achieving differentiation such as product design and innovation would most likely be classed as which one of the following under the BCG's strategic environments matrix?

Specialization business

The Tick-Tock Clock Corporation is able to successfully meet the needs of its customers more rapidly than any of its competitors can. It is most likely this corporation is engaging in which one of the following business strategies?

Speed-based

The ________ structure is where the corporate entity is a broad collection of often unrelated businesses and divisions such that the corporate entity must act as a financial overseer

holding company

Common functional-level decisions would include all of the following except ___________.

how to best enhance the firm's image and fulfill its social responsibilities

Strategic disadvantages associated with a divisional organizational structure would include all of the following except _________.

retains functional specialization within each division

Measurable outcomes that are designed to be achievable in one year or less of the company's life are called ___________.

short-term objectives

When discussing executive bonus compensation plans, the right to purchase company stock at a fixed price at some future date is called ________.

stock options

The We Have It Your Way Organization has an established "game plan" for its business operations. This game plan reflects the company's awareness of how and where it should compete and against whom the competition should take place. It can be stated this organization has an established _________.

strategy

Sustainable activities that provide all of the following opportunities relative to key industry forces except _________ should become the basis for differentiation aspects within the business's competitive strategy.

technological changes increase learning and investments

The social factors that affect a firm involve all of the following except _______.

the propensity of people to spend

_________ involves the substantial modification of existing products or the creation of new but related products that can be marketed to current customers through established channels.

Product development

The decision making hierarchy of a firm typically contains _______ levels

3

Of the following statements, which one is least likely to be true regarding a company's statement of philosophy? A) A company's statement of philosophy is often called its company creed.

A company's statement of philosophy rarely if ever appears within the organization's mission statement

Of the following, which one is false regarding a functional organizational structure?

An organization using this type of structure has no need for integrating activities.

Major Lionel Minor began his own new home construction company when he retired from the Air Force five years ago. The company has rapidly grown to be very large and has reported earnings of over $40 million in the past year. Retired Major Minor attributes this high rate of success to his ability to service his customers at a low price. His organization has to meet several requirements in order to continually support and sustain this low-cost leadership status. Which of the following would not be one of these requirements?

Avoidance of economies of scale

All of the following except which one would be considered a weakness to a business such as the one owned by Simon Ize?

Brand name

Which level of the decision making hierarchy is best identified as being composed principally of business and corporate mangers who must translate the statements of direction and intent into concrete objectives and strategies for the individual business units?

Business level

Which one of the following statements would be considered false about the concept of competitive advantage?

Businesses that engage other than a low-cost strategy usually experience below-average profitability

At which hierarchy level would the decisions made be more value-oriented, more conceptual, and less concrete?

Corporate level

Functional tactics are different from business or corporate strategies in all but which one of the following ways?

Costs incurred

Of the following, which one is least likely to be considered a critical task associated with an organization's strategic management process?

Decreasing the levels of hierarchy present within the company's management structure

Of the following, which one is least likely to be classed as creating or contributing to the control problems a global firm may face?

Different financial environments simplify the various sources of finance

Political constraints are placed on firms through a variety of avenues except which one of the following?

Discretionary responsibility

Which one of the following would not be classed as one of the major trends driving decisions about effective organizational structures in the 21st century?

Diversity

Which type of organizational structure is best identified as having a set of relatively autonomous units or divisions that are governed by a central corporate office yet each unit or division has its own functional specialists who provide services or products that are different from the other units

Divisional structure

The Denard Corporation currently possesses a low share of its available market. Additionally, this company's portfolio reveals it has extremely low market growth. This business is most likely to be classed as which one of the following according the BCG growth-share matrix?

Dog

The construction company owned by Tom and Adam Smith - T & A Contracting- faces many challenges posed by its external environment. Of the following, which factor is most likely to be classed as belonging in the remote environment of T & A Contracting?

Ecological

________ factors concern the nature and direction of the economy in which a firm operates.

Economic

The act of allowing an individual or team the right and flexibility to make decisions and initiate actions is best referred to as which one of the following?

Empowerment

There are several qualities the long-term objectives developed by Stormio should posses that will improve their chances of being attained. All of the following except _________ would be considered one of these necessary qualities.

Encompass a one-year time span

The most prominent factor found in the remote environment of businesses is most often that of the reciprocal relationship between those businesses and the ecology. Specific ecological concerns focus on all but which one of the following?

Fair labor standards

The strategy embraced by the Kun-Pow Fortune Cookie Company of Memphis strives to address the needs of a very select and specialized market segment. Kun-Pow is most likely to engage in which one of the following types of strategy?

Focus

________ refers to the degree in which participants, responsibilities, authority, and discretion in decision making are specified.

Formality

Which one of the following would not be considered a factor that contributes to the increase in the complexity found within today's global environment?

Global organizations are able to fully utilize differences in industry structures that are encountered

All of the following would represent possible threats to the 2-Shine Simon Ize-It Company except which one of the following?

Improved buyer or supplier relationships

Defining the boundaries of an industry can be a very difficult task. This difficulty stems from all of the following except which one?

Industries are very static in nature.

All but which one of the following would be considered a limiting factor or influence to a SWOT analysis?

It can recognize that a strength is always a source of competitive advantage

Of the following, which one is least likely to be considered a strategic advantage derived from a matrix organizational structure?

It can trigger turf battles.

Which one of the following would not be considered a contribution to strategic analysis through the organizations' use of the portfolio approach?

It does not address how value is created across business units.

All of the following except which one would be classed as true statements regarding the matrix organizational structure?

It is fairly simple to implement within an organization.

The tangible assets of a firm such as Gary's Two-Can Tan Company would include all but which one of the following?

Its trademark

The Grinder Up Corporation is a waste disposal business based in Santa Fe. This corporation possesses unique capabilities that assist it in being able to sustain its current market position. These capabilities include having secured suppliers of scarce raw materials, continuing dominance in its market, excellence at efficiencies, and a high degree of capitalization. It is most likely that Grinder Up engages in which one of the following strategies?

Low-cost leadership

Which one of the following grand strategies is noted as presenting products, often with only cosmetic modifications, to customers in related marketing areas?

Market development

The primary niche market approach for a company that wants to export is to do which one of the following?

Modify select product performance to meet special foreign demands

Of the value disciplines proposed by Michael Treacy and Fred Wiersema, which one is best identified as referring to providing customers with convenient and reliable products and services at competitive prices?

Operational excellence

Of the following statements, which one would not fit well in the segment of a corporate mission statement expressing the corporation's concern for public image?

Our organization is dedicated to the total success of our business as a worldwide competitor.

________ are directives designed to guide the thinking, decisions, and actions of managers and subordinates in implementing a firm's strategy.

Policies

Primary activities conducted by a firm are those that are involved in the creation, marketing, and transfer of the product to the buyer. Which one of the following would not be considered a primary activity?

Procurement

Through its use of speed-based strategy, the Tick-Tock Clock Corporation is most likely to gain its competitive advantage by being proficient in all but which one of the following activities?

Product cost leadership

The Ride 'Em Cowboy Western Wear Corporation of Houston is very efficient in maintaining low overhead costs. This corporation has excellent skills in operational efficiency and cost management. However it faces few sources of advantage within its industry, with most of those being quite small. Under which of the following industry environments is this corporation most likely to be placed?

Stalemate businesses

When the ABC Corporation makes decisions that assist it in formulating and implementing plans that are designed to achieve its objectives, it is most likely engaging in

Strategic Managment

Which of the following is best identified as being an adaptation of the divisional structure in which various divisions are grouped together based on some common elements?

Strategic business units

Of the following, which statement would most likely not be considered a dimension of strategic issues?

Strategic issues always impact the firm's long-term income.

Utilizing a SWOT analysis diagram, one would expect to find which piece of information about the company in question in Cell 2?

Supports a turnaround-oriented strategy

Purportedly, there are three economic goals that serve to guide the strategic direction of almost every business organization. ________ is least likely to be considered one of these goals?

Sustained absolute advantage

Which of the following is a false statement regarding the fourth set of factors - technological changes- in a firm's remote environment?

Technological changes rarely influence or promote innovation within firms

The quasi-science of anticipating environmental and competitive changes and estimating their importance to an organization's operations is best identified as which one of the following?

Technological forecasting

The Stormio Damage Repairio Corporation of Topeka is in the process of establishing its long-term objectives. These objectives will be used to guide the corporation toward achieving prosperity in its future years. All but which of the following areas would these long-term objectives need to address?

The ability of the firm to invest in capital equipment this year.

The board of directors of the TMJ Company takes great pride in the operations of this very successful company. Which of the following statements would most likely be considered false about TMJ's board of directors?

The board rarely has to deal with potentially unethical business issues.

Which one of the following statements would be considered false when discussing the value a company places on its public image?

The chance of gaining negative public image does not inspire organizations into action.

Jerome Washington's company has decided to acquire two other businesses in order to increase its growth and earning potential. In essence, Jerome's company desires to become a multibusiness company. Which one of the following would be least likely to be considered another valid rationale for why the company would desire to take this action?

The company wants to be able to monopolize a portion of the market segment.

All of the following statements would be considered true of a company's mission statement except which one?

The mission statement staunchly presents a firm's strategic intent.

Which one of the following statements is least likely to represent a fundamental belief an organization would have to guide it in creating its mission statement?

The primary products will be made available to the market at a price reflecting less than total cost so as to gain market share.

An organization's formal, written polices have several advantages. Which one of the following would not be considered one of these advantages?

They decrease the need for elaborate business strategy implementation processes

________ attempts to understand how a business creates customer value by examining the contributions of different activities within a business to that value.

Value chain analysis

Of the following, which aspect is least likely to be a consideration addressed in an organization's mission statement?

What are the number of levels the corporate hierarchy will contain

Short-term objectives are more consistent when they clearly indicate all but which one of the following?

Who will make the decisions?

The XYZ Organization's mission statement is focused around three indispensable components. Of the following, which one would not be considered one of these components?

XYZ shall hire only individuals with sufficient educational levels so as to be of benefit to our customers and shareholders.

The key, routine activities that must be undertaken in each business area - such as marketing, finance, and operations - that provide the business's products and services are called _________.

functional tactics

A corporation with a/an ________ is likely to adopt a global systems approach to its strategic decision making that empathizes global integration.

geocentric orientation

All of the following would be considered emerging industries of the last decade except _______.

airline services

A set of measures directly linked to a company's strategy, financial performance, customer knowledge, internal business processes, and learning and growth is best known as that company's _________.

balanced scorecard

When an organization makes a statement such as "We believe that meeting the needs of customers, suppliers, and neighbors is instrumental to fulfilling our mission" the organization is most likely identifying its _________.

company creed

An organization's board of directors and administrative officers are most likely to be found at the ________ in its decision making hierarchy.

corporate level

Companies that implement a strategy of ________ continually tailor and shape products and services to fit an increasingly refined definition of the customer.

customer intimacy

A business strategy that seeks to build competitive advantage with its product or service by having it be unique from other available competitive products would be classed as __________ strategy.

differentiation

Strategies dependent on ______ are designed to appeal to customers with a special sensitivity for a particular product attribute.

differentiation

For the past two years the Broken Arrow Corporation has been planning to expand its operations in order to reach out to the market arenas of the world. Its future plans include continuation of its standardized product line to be offered within the new marketplaces. Essentially, the Broken Arrow Corporation desires to _____________.

embrace globalization

When the values and priorities of the parent organization guide the strategic decision making of all its international operations, it can be said there is a/an _______ present within the organization.

ethnocentric orientation

A/An ______ is one in which competition crosses national borders on a worldwide basis

global industry

The general conditions for competition that influences businesses, which provide similar products and services is best referred to as a/an ________.

industry environment

All of the following would be considered reasons for why the industry attractiveness-business strength matrix offers improvement over the BCG matrix except _________.

it reduces the need for strategy formulation

The business strategy decided upon by the Ripper Up Remodeling Corporation is one that engages in value chain activities, which are achieved at a cost that is well below its competitors. In this way, the competitors can require less money for its services than competitors can. It is safe to say this corporation is engaging a __________.

low-cost strategy

The extent to which a business concentrates on a narrowly defined market is best referred to as ___________.

market focus

The 2-Shine Simon Ize-It Company wants to know the major favorable situations that exist in its environment. Essentially, the company wants to gain understanding of its _________.

opportunities

The Up and At 'Em Clock Company of Vermont recently began to provide its employees with training and development that is provided by a Boston-based firm. The company has found this new method to be cost effective and time saving. It can be stated that the Up and At 'Em Clock Company is engaging the use of ________.

outsourcing

The ______ perspective sees multibusiness companies as creating value by influencing the businesses they own.

parenting framework

All of the following except _________ would be considered rationales for why an organization may wish to globalize its operations in the international marketplace.

realization of domination of the domestic market

The market share of a business divided by the market share of its largest competitor equals the business's ________.

relative competitive position

The _______ is a method of analyzing and identifying a firm's strategic advantages based on examining its distinct combination of assets, skills, capabilities, and intangibles as an organization

resource-based view