Chapter 3 All, Chapter 2 All, Chapter 1 All

A firm's intangible resources refer to its capability to deploy tangible resources over time and leverage the resources effectively.

FALSE

A mission statement, according to the text, is a long-term, overarching vision that is massively inspiring and only discusses the purpose of the company.

FALSE

Although changes in the general environment may often adversely or favorably impact a firm, they seldom alter an entire industry.

FALSE

Even with all of the advances in recent years, forecasting is typically considered more of an art than a science and it is of little use in generating accurate predictions.

FALSE

Intellectual capital is becoming less important in today's economy. It is not a concern of managers throughout organizations.

FALSE

Leverage ratios do not provide measures of a firm's ability to meet its long-term financial obligations.

FALSE

Support activities offer support for primary activities, but not other support activities.

FALSE

The following are excellent examples of mission statements: "Restoring patients to full life" (Medtronics) and "to be the happiest place on earth" (Disney).

FALSE

The following is an example of a symbiotic approach to strategic management: "We are here to serve the shareholder and create shareholder value. I insist the only person who owns the company is the person who paid good money for it." (Former Chrysler Vice Chairman Robert Lutz)

FALSE

The only individuals concerned with the performance of a company are the stakeholders.

FALSE

Which of the following is an example of the interrelationship between the competitive and general environments?

Increased awareness of personal health leads to lower demand, and greater rivalry in the alcoholic beverages industry.

XYZ Corp. is centering on the objective of low-cost, high quality, on-time production by curtailing idle productive facilities and workers. The XYZ Corp. is taking advantage of a ____________ system

Just-In-Time (JIT)

Which of the following is not a limitation of SWOT (Strengths, Weaknesses, Opportunity, Threats) analysis?

SWOT's focus on the external environment is too broad and integrative

A key benefit of the "balanced scorecard" is that it complements financial indicators with operational measures of internal processes, customer satisfaction, and the organization's innovation and improvement activities.

TRUE

Competition tends to be more intense among firms within a strategic group than between strategic groups.

TRUE

Competitors can be deterred entry into an industry through the advantages created by information systems.

TRUE

In some industries, high switching costs can act as an important barrier to entry

TRUE

Stockholder value does not mean the same thing as customer value.

TRUE

Strategic management acknowledges the trade-offs between efficiency and effectiveness.

TRUE

Technological innovations can create entirely new industries and alter the boundaries of industries.

TRUE

The power of suppliers will be enhanced if they are able to maintain a credible threat of forward integration.

TRUE

To allow for changes in strategy, Organizational goals and objectives should be clearly stated.

TRUE

Strategy implementation and formulation is a challenging, on-going process. To be effective, it should involve

all of the above

An organization's mission, in contrast to its vision, should

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

Developing forecasts, as discussed in the text, include two key inputs, which are

environmental scanning and competitor intelligence.

Vision statements are used to create a higher understanding of the organization's overall direction and purpose. Vision statements

evoke powerful and compelling mental images.

The "balanced scorecard" supplies top managers with a _____________ view of the business.

fast but comprehensive

The "triple bottom line" approach to corporate accounting, according to the text, includes which three components

financial, environmental, and social

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

forward integration.

Which of the following lists is comprised of support activities:

human resource management, information systems, procurement, and firm infrastructure

Which of the following would be thought of as part of a firm's general environment?

increased trade deficit

A marketing department that promises delivery quicker than the production department's ability to produce is an example of a lack of understanding of the

interrelationships among functional areas and firm strategies

A company's ability to meet its short-term financial obligations is measured by which of the following categories?

liquidity ratios

A risk of forecasting discussed in the text is that

managers may view uncertainty as black and white while ignoring important gray areas.

Although firm infrastructure is quite frequently viewed only as overhead expense, it can become a source of competitive advantage. Examples include all of the following except:

marketing expertise increasing a firm's revenues and enabling it to enter new markets.

Interest rate increases have a ________ impact on the residential home construction industry and a ___ effect on industries that produce consumer necessities, such as prescription drugs or basic grocery items.

negative; negligible

The most extreme rivalry results from

numerous equally balanced competitors, slow industry growth, high fixed or storage costs.

The competencies or skills that a firm employs to transform inputs into outputs are:

organizational capabilities.

As seen in Porter's Five Forces model, conditions under which a supplier group can be powerful include all the following except

readily available substitute products.

Members of an organization's board of directors should, while working to prioritize and fulfill their responsibilities,

represent the interests of the shareholders.

The CEO of Lucent Technologies made a lot of mistakes, such as committing errors in assessing the market and competitive conditions, as well as improperly redesigning the organization into 11 business units. Such errors led to performance declines. According to the text, this example illustrates the _________________ perspective of leadership.

romantic

An array of firm resources include interpersonal relations among managers in the firm, its culture, and its reputation with its customers and suppliers. Such competitive advantages are based upon

social complexity.

The "advance work" in the strategic management process is comprised of

strategy formulation

The bargaining power of the supplier is less than that of the buyer when

the buyer's profit margin is low

As our world increases in complexity, the global environment is increasingly challenging and competitive. The key to effective globalization is

the flow of capital, people, and information

Which of the following lists is the hierarchy of organizational goals in order from least specific to most specific?

vision statements, mission statements, strategic objectives.