Capstone final exam

formal statements of organizational philosophy, characters, creeds, materials used for recruitment and selection, and socialization help an organization

link culture to strategy

Increased education and diversity of the workforce at all levels are reasons why

middle-level and lower-level managers, and even non-managers, should be involved in the strategic planning process.

Corrective actions are almost always ________ except when external and internal factors have not significantly changed and the firm is progressing satisfactorily toward achieving stated objectives.

needed

All of the following are mentioned by the authors as environmental strategies that a firm might adopt EXCEPT

reinvesting in environment-damaging businesses.

Many U.S. firms with a large percentage of their revenues derived in foreign countries prefer to leave their cash outside the United States because using those funds to pay dividends or purchase treasury stock would

require a big U.S. corporate income tax payment.

With regard to the visible or hidden issue, most executives agree that

some strategic information should remain confidential to top managers.

For upper-level executives _____ is the major variable used for compensation incentives

stock price

The match an organization makes between its internal sources and skills and the opportunities and risks created by its external factors can be defined as

strategy

All of the following are reasons strategy evaluation is more difficult today EXCEPT

the increasing time span for which planning can be done with any degree of certainty.

Financial ratios are used to compare a firm's performance over different time periods, to compare the firm's performance to industry averages, and to compare a firm's performance with

the performance of competitors.

The strategic planning process should be a learning process for all managers and employees.

true

Managers and employees today must be careful not to ignore, conceal, or disregard a pollution problem or they could

All of these

Resistance to change can manifest itself through

All of these

What corrective actions might a firm take during strategy evaluation?

All of these

Which of these is a basic activity of strategy evaluation?

All of these

why do changes in a company strategy often require changes in the way an organization is structured?

All of these

What are the three categories of approaches for managing and resolving conflict?

Avoidance, defusion, and confrontation

The Boston Consulting Group Matrix is designed specifically to enhance which type of firm's efforts to formulate strategies

Companies with more than one division

________ plans can be defined as alternative plans that can be put into effect if certain key events do not occur as expected.

Contingency

After completing an EPS/EBIT analysis, what conclusions would you make if the debt line is above the stock line throughout the range of EBIT on the graph?

Debt appears to be the best financing alternative.

A revised ________ should indicate how effective a firm's strategies have been in response to key opportunities and threats.

EFE matrix

What is the most widely used technique for determining the best combination of debt and stock?

Earnings Per Share/Earnings Before Interest and Taxes Analysis

The primary sources of capital are known as debt and EPS.

False

What type of organizational structure promotes specialization of labor and allows rapid decision making?

Functional structure

Firms located in which quadrant of the Grand Strategy Matrix are in an excellent strategic position?

I

The ________ is a network of the national standards institutes of 147 countries, one member per country.

ISO

All of the following statements are true EXCEPT

ISO has legal authority to enforce its regulations' implementation.

According to the Grand Strategy Matrix, organizations in which quadrant have a strong competitive position but are in a slow growth industry?

IV

Which stage of the strategy formation framework includes an IFE matric and competitive profile matrix?

Input

which of the following is a limitation associated with a SWOT Matrix?

It is a static assessment in time

Which of the following is NOT a guideline for an effective strategic planning process?

It should employ International Financial Reporting Standards (IFRS).

Many New Zealanders, supported by Australians, are outraged about which country's "large-scale" whaling operations in Antarctic.

Japan

Which of the following business actions is considered to be unethical?

Misleading labeling

A divisional structure by geographic area is the most appropriate when

Organizations have similar branch facilities located in widely dispersed area

In preparing projected statements, to project cost of goods sold in the income statement, which of these methods is recommended?

Percentage-of-Sales Method

Which method of determining a firm's net worth divides the market price of the firm's stock by the annual earnings per share, and multiplies this number by the firm's average net income for the past five years?

Price-Earnings Ratio Method

Which strategy formulation technique reveals the relative attractiveness of alternative strategies and thus provides an objective basis for selecting specific strategies?

Quantitative Strategic Planning Matrix

which matrix is included in the decision stage of the strategy formulation framework?

Quantitative strategic planning matric (QSPM)

In the Boston Consulting Group Matrix, how would a division with a low relative market share position in a high growth industry be described?

Question mark

what action involves reconfiguring or redesigning work jobs, and processes for the purpose of improving cost, quality, service and speed?

Reengineering

Business ethics, ________, and sustainability issues are interrelated and impact all areas of the comprehensive strategic-management model.

Social responsilbility

What are the two external dimensions of the SPACE Matrix?

Stability position and industry position

Which of the following statements about contingency plans is NOT true?

Strategists should plan for all possible contingencies.

________ are the individuals primarily responsible for ensuring that high ethical principles are espoused and practiced in an organization.

Strategists such as CEOs and business owners

What aims to balance long-term with short-term concerns, financial with nonfinancial concerns, and internal with external concerns?

The Balanced Scorecard approach

Which of the following is NOT an accepted approach for determining a business's worth?

The Return on Investment Method

Which one of the following statements regarding stock issuances is true?

They are not always better than debt for raising capital.

Which of the following is not given as an example of a decision that may require finance/accounting policies?

To be a price leader or a price follower

A rising tide of consciousness about the importance of business ethics is sweeping the United States and the rest of the world.

True

Four common corporate Valuation methods are the Net Worth Method, the Net Income Method, the Price-Earnings Ratio Method, and the Outstanding Shares Method.

True

In developing an organizational chart, avoid having a particular person reporting

True

More and more firms believe that ethics training and an ethics culture create strategic advantage.

True

T/F the major benefit of the Boston consulting group matrix is that it draws attention to the cash flow, investment characteristics, and needs of an organization's various divisions

True

Taking corrective actions does not necessarily mean that existing strategies will be abandoned, or even that new strategies must be formulated.

True

Which strategies are defensive tactics directed at reducing internal weaknesses and avoiding external threats?

WT

Considerable time and effort should be devoted to assuring objectives are well conceived because they represent the basis for

all of these

The amount by which retained earnings changes is obtained by subtracting

any dividends to be paid for that year from net income.

All of the following are principals of good organizational governance as established by BusinessWeek, EXCEPT

at least three directors are current or former company executives

The two internal dimensions represented on the axes of the SPACE matrix are

competitive position and financial position

A proactive environmental policy is likely to lead to

conservation of energy

The primary benefit sought from restructuring is

cost reduction

In low-earning periods, too much ________ in the capital structure of an organization can endanger stockholders' return and jeopardize company survival.

debt

The U.S. Chamber of Commerce supports a change from to IFRS to GAAP, saying it will help the United States compete in the world economy.

false

The rational change strategy is one that presents information to convince people of the need for change

false

The first step in performing projected financial analysis is to

forecast sales as accurately as possible.

The act of oversight and direction for an organization is referred to as

governance

All of the following are reasons that workplace romance can be detrimental to workplace morale and productivity EXCEPT

increased quality and quantity of work can occur.

The absence of a conflict can signal ___ within an organization

indifference and apathy

Projected financial analysis is an important strategy-implementation technique because

it allows an organization to examine the expected results of strategies being implemented.