MANA 4322 ORG STRATEGY EXAM ONE - 1,2,3

The general environment of the firm includes all of the following segments except

close competitors.

The hierarchy of organizational goals is in this order (least specific to most specific):

vision statements, mission statements, strategic objectives

The "organizational versus individual rationality" perspective suggests that

what is best for a functional area may not be best for the organization.

A supplier group would be most powerful when there is/are

few substitute products.

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

financial, environmental, and social.

Threat of substitute products comes from

firms in other industries that produce products or services that satisfy the same customer need.

In the value-net analysis, complementors are

firms that produce products or services that have a positive impact on the value of a firm's products or services.

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

forward integration.

Many organizations have a large number of functional areas with very diverse, and sometimes competing, interests. Such organizations will be most effective if

functional areas work together to attain overall goals.

Firms would be most likely to face intense rivalry with competitors when they

have high fixed costs, in a slow growth industry with high exit barriers

Which of the following would be considered part of a firm's general environment? A) decreased entry barriers B) increased trade deficit C) increased bargaining power of the firm's suppliers D) increased competitive intensity

increased trade deficit

The aging of the population of the United States

increases demand for products geared to retirees.

Stakeholders are

individuals, groups, and organizations who have a stake in the success of the organization.

According to the text, organizational control is an important managerial activity. Two types of control addressed are

informational and behavioral.

An organization is responsible to many different entities. In order to meet the demands of these groups organizations must participate in stakeholder management. Stakeholder management means that

interests of the stockholders are not the only interests that matter.

The value net is a game-theoretic approach that

is a way to analyze all the players in a game and analyze how their interactions affect a firm's ability to generate and appropriate value.

Gathering "competitive intelligence" A) is good business practice. B) is illegal. C) is considered unethical. D) minimizes the need to obtain information in the public domain.

is good business practice.

Buyer power will be greater when

it is concentrated or purchases large volumes relative to seller sales

Which of the following would be an entry barrier?

large economies of scale

The threat of new entrants is high when there are

low economies of scale

A danger of forecasting discussed in the text is that

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

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

managing the flow of capital, people, and information.

As firms work to become more efficient and effective in the global business environment, they are forced to continually innovate. Innovation in an organization

may enhance or destroy a firm's capabilities.

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

Product differentiation by incumbents act as an entry barrier because

new entrants will have to spend heavily to overcome existing customer loyalties.

The most intense rivalry results from

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

There are several perspectives of competition. One perspective is zero-sum thinking. Zero-sum thinking means that

one can only gain at the expense of someone else.

51. (p. 89-90) A marketing department that promises delivery faster than the production department's ability to produce is an example of a lack of understanding of the A. interrelationships among functional areas and firm strategies. B. need to maintain the reputation of the company. C. organizational culture and leadership. D. synergy of the business units.

A. interrelationships among functional areas and firm strategies.

39. (p. 81, 83-85) Advertising is a __________ activity. Supply of replacement parts is a __________ activity. A. primary; primary B. support; primary C. support; secondary D. primary; support

A. primary; primary

37. (p. 9) The four key attributes of strategic management include the idea that A. strategy must be directed toward overall organizational goals and objectives. B. strategy must be focused on long-term objectives. C. strategy must be focused on one specific area of an organization. D. strategy must focus on competitor strengths.

A. strategy must be directed toward overall organizational goals and objectives.

To illustrate interrelationships among different segments of the general environment: The persistence of large U.S. trade deficits (_______) has led to greater demand for protectionist measures, such as trade barriers and quotas (______). These measures lead to higher prices for U.S. consumers and fuel inflation (________).

B) macroeconomic, political/legal, macroeconomic

48. (p. 89) According to value-chain analysis, which of the following would be considered part of a firm's general administration? A. Human resource management. B. Information systems. C. Technology development. D. Procurement.

B. Information systems.

55. (p. 95) __________ are typically embedded in unique routines and practices that have evolved and accumulated over time - such as trust and effective work teams. A. Tangible resources B. Intangible resources C. Reputational resources D. Organizational capabilities

B. Intangible resources

42. (p. 83) XYZ Corp. is focusing on the objective of low-cost, high quality, on-time production by minimizing idle productive facilities and workers. The XYZ Corp. is taking advantage of a __________ system. A. Last In, First Out (LIFO) B. Just-in- time (JIT) C. First In, First Out (FIFO) D. Highly mechanized

B. Just-in- time (JIT)

35. (p. 82) Which of the following is NOT a limitation of SWOT (Strengths, Weaknesses, Opportunity, Threats) analysis? A. Organizational strengths may not lead to competitive advantage. B. SWOT's focus on the external environment is too broad and integrative. C. SWOT gives a one-shot view of a moving target. D. SWOT overemphasizes a single dimension of strategy.

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

38. (p. 81, 84) In assessing its primary activities, an airline would examine A. employee training programs. B. baggage handling. C. criteria for lease versus purchase decisions. D. the effectiveness of its lobbying activities.

B. baggage handling.

33. (p. 5) A CEO made a lot of mistakes such as committing errors in assessing the market and competitive conditions and improperly redesigning the organization into numerous business units. Such errors led to significant performance declines. According to the text, this example illustrates the __________ perspective of leadership. A. external control B. romantic C. internal mechanism D. operational

B. romantic

37. (p. 83) Inbound logistics include A. machining and packaging. B. warehousing and inventory control. C. repair and parts supply. D. promotion and packaging.

B. warehousing and inventory control.

40. (p. 83) Which of the following examples demonstrates how successful organizations manage their primary activities? A. By employing JIT inventory systems, Hewlett Packard has been able to cut lead time from five days to one. B. Motorola has revised its compensation system to reward employees who learn a variety of C. National Steel improved its efficiency by consolidating, reducing the number of job classifications, and broadening worker responsibilities. D. Walmart implemented a sophisticated information system that resulted in reduced inventory carrying costs and shortened customer response time.

By employing JIT inventory systems, Hewlett Packard has been able to cut lead time from five days to one.

46. (p. 86-87) Which of the following lists consists of support activities? A. Human resource management, technology development, customer service, and procurement. B. Human resource management, customer service, marketing and sales, and operations. C. Human resource management, technology development, procurement, and firm infrastructure. D. Customer service, information systems, technology development, and procurement.

C. Human resource management, technology development, procurement, and firm infrastructure.

43. (p. 84) ___________ is/are associated with collecting, storing, and distributing the product or service to buyers. They consist of warehousing, material handling, delivery operation, order processing, and scheduling. A. Services B. Inbound logistics C. Outbound logistics D. Operations

C. Outbound logistics

36. (p. 81, 86) In value-chain analysis, the activities of an organization are divided into two major categories of value activities: primary and support. Which of the following is a primary activity? A. Purchasing key inputs. B. Recruiting and training employees. C. Repairing the product for the consumer. D. Monitoring the cost of producing the product through a cost accounting system.

C. Repairing the product for the consumer.

45. (p. 86-87) Which of the following is a support activity? A. Inbound logistics. B. Operations. C. Technology development. D. Customer service.

C. Technology development.

39. (p. 10) "Effectiveness" is often defined as A. doing things right. B. stakeholder satisfaction. C. doing the right thing. D. productivity enhancement.

C. doing the right thing.

54. (p. 94) Examples of tangible resources (in the resource-based view of the firm) include: A. financial resources, human resources, and firm competencies. B. financial resources, physical resources, and the capacity to combine intangible resources. C. financial resources, physical resources, and technological resources. D. outstanding customer service, innovativeness of products, and reputation.

C. financial resources, physical resources, and technological resources.

53. (p. 93-94) The three key types of resources that are central to the resource-based view of the firm's are A. tangible resources, intangible resources, and organizational structure. B. culture, tangible resources, intangible resources. C. tangible resources, intangible resources, and organizational capabilities. D. tangible resources, intangible resources, and top management.

C. tangible resources, intangible resources, and organizational capabilities.

40. (p. 11) All of the following are ambidextrous behaviors EXCEPT: A. taking initiative and being alert to opportunities beyond the confines of one's own job. B. being cooperative and seeking opportunities to combine one's efforts with others. C. intensely focusing on one's own responsibilities and maximizing the output of one's department in an organization. D. being brokers, always looking to build internal linkages.

C. intensely focusing on one's own responsibilities and maximizing the output of one's department in an organization.

49. (p. 89) Although general administration is often viewed only as overhead expense, it can become a source of competitive advantage. Examples include all of the following EXCEPT A. negotiating and maintaining ongoing relations with regulatory bodies. B. effective information systems contributing significantly to a firm's overall cost leadership strategy. C. marketing expertise increasing a firm's revenues and enabling it to enter new markets. D. top management providing a key role in collaborating with important customers.

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

44. (p. 86) Customer service would include A. product promotion. B. product distribution. C. parts supply. D. procurement of critical supplies.

C. parts supply.

52. (p. 93) The resource-based view (RBV) of the firm combines two perspectives: A. the primary and support activities of the firm. B. the interrelationships among the primary activities of the firm and corporate management. C. the internal analysis of the firm as well as the external analysis of the industry and competitive environment. D. the industry and the competitive environment.

C. the internal analysis of the firm as well as the external analysis of the industry and competitive environment.

38. (p. 9) The four key attributes of strategic management include all of the following EXCEPT: A. including multiple stakeholder interests in decision making. B. incorporating both short-term and long-term perspectives. C. recognizing the trade-offs between effectiveness and efficiency. D. emphasis on the attainment of short-term objectives.

D

Effective leaders must engage in many different activities. According to the text, these activities include : A) setting a direction and designing the organization. B) developing an organization that is committed to excellence. C) developing an organization that is committed to ethical behavior.

D) all of the above

Strategy formulation and implementation is a challenging on-going process. To be effective, it should involve A) the CEO and the board of directors. B) the board of directors, CEO, and CFO. C) line and staff managers. D) all of the above

D) all of the above

41. (p. 83) Which of the following is not an advantage of Just-In- Time inventory systems? A. Reduced raw material storage costs. B. Minimized idle production facilities and workers. C. Reduced work-in- process inventories. D. Reduced dependence on suppliers.

D. Reduced dependence on suppliers.

50. (p. 89) For firm's such as Walgreen Co. (a chain of drugstores), information systems have been a source of competitive advantage by enabling them to A. differentiate service. B. automate some operations. C. respond to consumer needs. D. all of these.

D. all of these

32. (p. 5) The text addresses two perspectives of leadership as well as their implications. These two perspectives are A. romantic and unromantic. B. romantic and internal control. C. external control and unromantic. D. romantic and external control.

D. romantic and external control.

33. _____________ tracks the evolution of environmental trends, sequences of events, or streams of activities

Environmental monitoring

Which of the following is an example of the interrelationship between the general and competitive environments A) A decline in a nation's educational standards results in a decline in the nation's productivity. B) A country's technological inferiority results in its enactment of strong trade barriers against importation. C) Increased awareness of personal health leads to lower demand, and greater rivalry in the alcoholic beverages industry. D) Greater awareness of the environment results in environmental legislation.

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

Which of the following best demonstrates the interrelationships among different segments of the general environment? A) A new technology results in the development of a substitute product for your firm's product. B) Government deregulation results in different firms being able to offer the same product as your firm. C) The recession results in several of your competitors cutting prices and intensifying rivalry. D) Increased concern for the environment results in legislation that impacts your current packaging.

Increased concern for the environment results in legislation that impacts your current packaging.

Peter Senge, of M.I.T., recognized three types of leaders. _______________ are individuals that, although having little positional power and formal authority, generate their power through the conviction and clarity of their ideas.

Internal networkers

66. Effective vision statements include

a brief statement of the company's direction.

Which of the following firms would likely pose the least competitive threat?

a competitor to your product where a high switching cost exists

69. Strategic groups consist of

a group of firms within an industry that follow similar strategies.

62. Exit barriers arise from A) specialized assets with no alternative use. B) governmental and social pressures. C) strategic interrelationships with other business units within the same company. D) all of the above

all of the above

Environmental forecasting involves developing plausible projections about the ________ of environmental change. A) direction B) scope C) speed D) all of the above

all of the above

Firms must be concerned with many types of capital. In the broader sense, these could include ecological capital. B) material capital. C) human and social capital. D) all of the above.

all of the above.

According to a study by Harvard University and the Federal Reserve, information technology is responsible for _____ of the rapid productivity gains in recent years.

almost half

According to the text, the strategic management process entails three ongoing processes:

analysis, decisions, and actions

According to Henry Mintzberg, the realized strategies of a firm

are a combination of deliberate and emergent strategies

In order to increase their competitiveness, organizations must continually analyze their strategy and their competitive environments. According to the text, strategy analysis includes

assessing intellectual capital as well as analyzing the internal and external environment.

A large fabricator of building components purchased a steel company to provide raw materials for its production process. This is an example of

backward integration.

The aging of the population, changes in ethnic composition, and effects of the baby boom are

demographic changes.

Effectiveness" is often defined as

doing the right thing

56. The bargaining power of suppliers is enhanced under the following market condition:

dominance by a few suppliers

Members of Boards of Directors are

elected by the shareholders as their representatives

The four key attributes of strategic management include all of the following except

emphasis on the attainment of short-term objectives

Two key inputs to developing forecasts discussed in the text are

environmental scanning and competitor intelligence.

According to Michael Porter, management innovations such as total quality, bench marking, and business process re engineering cannot lead to sustainable competitive advantage because

every company is trying to implement them and hence it does not make a company different from others

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

readily available substitute products.

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

represent the interests of the shareholders.

Which is considered a force in the "Five Forces model"?

rivalry among competing firms

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

romantic

The text addresses two perspectives of leadership as well as their implications. These two perspectives are

romantic and external control.

Increasingly larger numbers of women entering the work force since the early 1970's is an example of

sociocultural changes

Sears has developed a sophisticated quantitative model and found that there were positive relationships between employee satisfaction, customer satisfaction, and financial results. According to the text, this is an example of ________________.

stakeholder symbiosis

Managers should do more than just focus on short-term financial performance. One concept that helps managers do this is stakeholder symbiosis. This means that

stakeholders are dependent on each other for their success.

Which of the following statements about strategic groups is false? A) two assumptions are made: (1) no two firms are totally different, (2) no two firms are exactly the same. B) strategic groupings are of little help to a firm in assessing mobility barriers that protect a group from attacks by other groups. C) strategic groups help chart the future directions of firms' strategies. D) strategic groups are helpful in thinking through the implications of each industry trend for the group as a whole.

strategic groupings are of little help to a firm in assessing mobility barriers that protect a group from attacks by other groups.

The "advance work" in the strategic management process consists of

strategy analysis

The four key attributes of strategic management include the idea that

strategy must be directed toward overall organizational goals and objectives.

47. (p. 88) Human resource management consists of activities involved in recruiting, hiring, training, development, and compensation of all types of personnel. It A. supports only individual primary activities. B. supports only individual support activities. C. supports both individual primary and support activities and the entire value chain. D. supports mostly support activities but does have some impact on primary activities.

supports both individual primary and support activities and the entire value chain.

The general and competitive environments A) are independent and dynamic over time. B) tend to be interrelated and dynamic over time. C) have similar impact on organizations of different industries. D) are independent and static over time.

tend to be interrelated and dynamic over time.

Delayed marriages, fewer people in relevant age groups, and rising interest rates dampening demand for houses illustrates

that more than one segment of the general environment may affect an industry.

Scanning the general environment would identify information on

the aging population and ethnic shifts.

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

the buyer's profit margin is low.

Firms must be aware of goals other than short-term profit maximization. One area of concern should be social responsibility which is

the expectation that business will strive to improve the overall welfare of society

All of the following are important elements of the political/legal segment of the general environment except A) the deregulation of utilities. B) The Americans with Disabilities Act (ADA). C) the increased use of Internet technology. D) increases in the federally mandated minimum wage

the increased use of Internet technology.

Emerging sociocultural changes in the environment include

the increasing educational attainment of women in the past decade.

The bargaining power of suppliers increases as

threat of forward integration by suppliers increases.

59. The text argues that a strategic perspective in an organization should be emphasized

throughout the organization

Leadership is a necessary (but not sufficient) condition for organizational success. Leaders should emerge at which level(s) of an organization?

throughout the organization