Strategic Management Test 1 (Ch 1-7)

Dr. Milton​ Friedman's traditional views of business responsibility include all of the following EXCEPT​ ____________.

- social responsibility is a necessary evil for business - a firm should look to fulfilling its social responsibilities.

Which of the following is NOT in agreement with the concepts of organizational learning​ theory?

An organization must shift from a horizontally designed company to a more​ top-down company.

All of the following terms are correct about environmental scanning EXCEPT​ ________.

managers avoid using environmental scanning in corporations because they thrive on implementing strategies that reduce the element of surprise and they ignore the​ long-term health in the organization

The basic model of strategic management consists of all the four basic components EXCEPT​ ________.

marketing department

An​ organization's ________ is the purpose or reason for the​ organization's existence.

mission

________ constitutes​ one's rules of personal behavior based on religious or philosophical grounds.​ ________ is defined as the consensually accepted standards of behavior for an​ occupation, a​ trade, or a profession.

morality; ethics

In​ ________ an organization adjusts defensively to the changing environment around them and uses knowledge offensively to improve that relationship.

organizational learning theory

Which of the following was cited as the most common reason that executives from 111 corporations reported that they bend the rules to attain their​ objectives?

organizational performance required it.

​________ forces allocate power and provide constraining and protecting laws and regulations.

political-legal

The theory of​ ________ suggests that once a company is successfully established in a specific environmental​ niche, that company is not able to adapt to changing conditions.

population ecology

According to L.​ Kohlberg, which level of moral development is characterized by a concern for​ self?

preconventional

Archie Carroll proposed that managers of business organizations have four responsibilities. All of the following are responsibilities of business that Carroll proposed EXCEPT​ ________.

profit maximization

Strategic management consists of four basic interacting components.​ However, the​ _______________ planning model predicts that as environmental uncertainty​ increases, corporations that work diligently to analyze and predict more accurately the changing situation in which they operate will outperform those that do not.

rational

Which of the following indicates how well each company is responding to current and expected key success factors in the industry environment within the industry​ matrix?

total weighted score

​________________ indicates how well each company is responding to current and expected key success factors in the industry environment within the industry matrix.

total weighted score

Successful CEOs are noted for having a clear strategic​ vision, a strong passion for their​ company, an ability to communicate with others and have many characteristics of​ _______________________________ leaders.

transformational

According to Michael​ Porter's approach to industry​ analysis, a corporation must scan the environment and assess the importance of five forces. All of the following are forces explained by Porter EXCEPT the​ ________.

weakness of the existing product

In agreement with the concepts of organizational learning​ theory, an increasing number of companies are realizing that they must shift to​ __________________________.

a more top-down organization

All of the following statements are correct about the individual rights approach EXCEPT​ ________.

a problem with the individual rights approach is the difficulty in recognizing all the benefit and costs of any particular decision

Which of the following terms is used to describe the relationship among groups in determining the direction and performance of the​ corporation?

corporate governance

Research indicates that there is a strong association between​ ________________________.

corporate performance and competitive intelligence activities

Although neither the composition of boards nor the board leadership structure has been consistently linked to firm financial​ performance, better governance​ ___________________.

does lead to higher credit ratings and stock prices.

In a fragmented​ industry, as new competitors enter the​ industry, prices​ ________ as a result of the competition.

drop

In a legal​ sense, the board is required to direct the affairs of the corporation but not to manage them. Which of the following terms describes how the board of directors is charged by law to​ act?

due care

Archie Carroll proposed that the managers of business organizations have four responsibilities. Carroll lists these four responsibilities in order of priority. Which of the following does Carroll note has the highest​ priority?

economic

In order to determine which​ group's interest has​ priority, the corporation may need to craft​ a(an) ________________, an overarching strategy that explicitly articulates the​ firm's ethical relationship with its stakeholders.

enterprise strategy

​A(n) ________ is an overarching strategy that explicitly articulates the​ firm's ethical relationship with its shareholders.

enterprise strategy

Which of the following components of the strategic management process is used to​ monitor, evaluate, and disseminate information from the external and internal environments to key people in the​ organization?

environmental scanning

​_______________ is an overarching term encompassing the​ monitoring, evaluation, and dissemination of information relevant to the organizational development of strategy.

environmental scanning

A​ person's _______________________ is affected by his or her level of moral​ development, certain personality​ variables, and such situational factors as the job​ itself, the​ supervisor, and the organizational culture.

ethical behavior

Which of the following is the directing of activities toward the accomplishment of corporate​ objectives?

executive leadership

All of the following were reported by the Association of Corporate Directors as the most important issues boards should address EXCEPT​ ________.

federal laws

In a declining​ industry, the industry tends to consolidate around​ ________ competitors; whereas the competitors are larger.

fewer

Strategic​ _______________ demands a​ long-term commitment to the development and nurturing of critical resources and capabilities.

flexibility

Which of the following statements is NOT true about a consolidated​ industry?

focus is on positioning, not differentiation

​A(n) ________ is where no firm has a large market​ share, and each firm serves only a small piece of the total market in competition with others.

fragmented industry

All of the following statements about mission statements are true EXCEPT​ ________.

individuals and groups consider vision and mission as the same concept and they are useless when combined into a single mission statement

​A(n) ________ matrix gives the weight for each factor based on how important that factor is for success within the industry.

industry

Which of the following refers to an​ in-depth examination of key factors within a​ corporation's task​ environment?

industry analysis

New​ products, services,​ methods, and organizational approaches that allow the business to achieve extraordinary returns. This approach is called​ _________________.

innovation

​________ is considered the machine that generates business opportunities in the market. Managers also use this to describe new​ products, services, and methods of organizational approaches that allow businesses to achieve extraordinary returns.

innovation

Michael​ Porter, an authority on competitive​ strategy, contends that a corporation is most concerned with the intensity of competition within its industry. The level of this intensity is determined by basic competitive forces driving the​ industry, which include all of the following EXCEPT​ ________________.

intensity of innovation among competitors

The​ ________ approach proposes that decision makers be​ equitable, fair, and impartial in the distribution of costs and benefits to individuals and groups. The​ ________ approach proposes that actions and plans should be judged by their consequences.

justice; utilitarian

The height of exit barriers does which of the​ following?

keeps a company from leaving an industry

All of the following are true about key success factors needed to create an industry matrix EXCEPT​ ________.

key success factors remain the same from industry to industry

A(n) ________ is skilled at​ creating, acquiring, and transferring knowledge and modifying its behavior to reflect new knowledge.

learning organization

To be​ competitive, it is important that corporations become​ _______________.

less bureaucratic and more flexible

Strategic​ ________________ is essential for learning organizations to avoid stagnation through continuous​ self-examination and experimentation

management

Which group supported a more open nominating process that enabled shareholders to vote out directors who ignore shareholder​ interests?

AFL-CIO

Which of the following is NOT one of the four main activities of a learning​ organization?

Accepting that stagnation can have a positive impact on a company as well as negative

As a firm or business unit develops​ strategies, programs, and the​ like, it often must go back to revise or correct decisions made earlier in the process. This​ process, called​ "feedback/learning", occurs at which stage of the strategic management​ process?

After environmental​ scanning, strategy​ formulation, strategy​ implementation, and evaluation and control.

Which of the following is NOT a current trend in regard to boards of​ directors?

Board members​ self-nominating or nominations only by other board members

The term corporate governance refers to the relationship among which of the following groups in determining the direction and performance of the​ corporation?

Board of​ Directors, top​ management, stakeholders.

Laws and standards defining the responsibilities of boards of directors vary from country to country. Board members in​ ________ face more than 100 provincial and federal laws governing director​ liability; whereas, the​ ________ has no clear national standards or federal laws.

Canada; United States

Which of the following terms is used to describe companies that are willing to replace popular produces prior to a​ competitor?

Cannibalize

Which of the following statements is NOT true about a fragmented​ industry?

Competitors have no reason to differentiate their products from one​ another's in order to avoid the fierce price competition.

Environmental uncertainty can be BEST described by which of the​ following?

Environmental uncertainty is the degree of complexity plus the degree of change that exists in an​ organization's external environment.

All of the following are true about external strategic factors EXCEPT which of the​ following?

External strategic factors do not have an impact the external environment and include trends in the economic part of the societal​ environment, which can have an obvious impact on business​ activity; trends in the technological part of the societal environment can also have a great impact on multiple industries.

________ referred to the social responsibility of a business as a​ "fundamentally subversive​ doctrine"; whereas​ ________ proposed that the managers of business organizations have four​ responsibilities: economic,​ legal, ethical, and discretionary.

Friedman; Carroll

Which of the following is NOT a​ political-legal variable in the societal​ environment?

GDP trends

Of the​ following, which is NOT a responsibility of a board of​ directors?

General succession planning and human resource responsibilities

In a research​ study, investors indicated they are willing to pay more for a​ corporation's stock because of certain reasons. Of the​ following, which is NOT a primary reason they would pay​ more?

Good governance automatically reduces accounting and auditing costs.

________ presented two​ principles, the categorical​ imperatives, to guide our actions.

Immanuel Kant

________ proposes that a company can adapt to changing conditions by mimicking other successful companies.

Institution theory

Today, the term used to describe a​ business's sustainability is the triple bottom line. Which of the following correctly identify​ "the triple bottom​ line?"

Profit/Loss; People; Planet

Which strategic type is characterized as companies with fairly broad product lines that focus on product innovation and market​ opportunities?

Prospectors

Large corporations categorize the natural and societal environments in any one geographic region into five areas and focus their scanning in each area on trends that have​ corporate-wide relevance. This is called a​ ______________________ analysis.

STEEP

To answer questions about​ competitors, competitive intelligence professionals utilize a number of analytical techniques. Of the​ following, which is NOT one of the techniques used to analyze​ competitors?

STEEP Analysis

Which of the following is NOT an environmental force of STEEP​ analysis?

Task

According to Michael​ Porter, what​ impact, if​ any, do competitive forces within an industry have on a​ company's ability to raise prices and earn greater​ profits?

The strength of the competitive forces determines ultimate profit potential and long run return on invested capital.

Which of the following statements is an example of why individuals or groups might act​ unethically?

There is no worldwide standard of conduct for business people

All of the following statements are examples of sustainable business practices EXCEPT​ ________.

a company that moves its operation offshore to a developing nation that has fewer governmental restrictions

Which of the following statements is true about a fragmented​ industry?

a cleaning service is an example of a fragmented industry

In order for a business corporation to be sustainable - that ​is, to be successful over a long period of time-it must satisfy​ ______________________________.

all of its​ economic, legal,​ ethical, and discretionary responsibilities.

All EXCEPT​ ________ are becoming more common on boards in the United States and the United Kingdom than in the past.

board members older than age 70

Corporations are fundamentally governed by the​ ________ overseeing top​ management, with the concurrence of the shareholder.

board of directors

The​ ________ holds top management responsible for the strategy and implementation of that strategy at the firm.

board of directors

________ countries tend to be less transparent and have a higher degree of​ corruption; whereas​ ________ countries tend to be more transparent and have a lower degree of corruption.

relationship-based; rule-based

Society increasingly expects boards of directors to balance the economic goal of profitability with​ ________.

social needs of society

Moral relativism claims that morality is relative to some​ personal, social, or cultural standard and that there is no method for deciding whether one decision is better than another. Which of the following is NOT a form of moral​ relativism?

societal relativism

As​ ________ evolve, the discretionary responsibilities of today can become the ethical responsibilities of tomorrow..

societal values

A​ corporation's task environment includes numerous groups with interest in a​ company's activities. These groups are referred to as​ ________ because they affect or are affected by the achievement of the​ firm's objectives.

stakeholders

The willingness to reject unfamiliar as well as negative information is called​ ________________ myopia.

strategic

________ describes the ability to shift from one dominant strategy to another.

strategic flexibility

A(n) ________ is a set of business units or firms that pursue similar strategies with similar resources.

strategic group

All of the following are true about constructing strategic group maps EXCEPT​ ________.

strategic groups in many industries are singled out and mapped by plotting the market position of one industry on a​ two-dimensional graph

Although​ ________ is fundamentally concerned with​ strengths, weaknesses,​ opportunities, and​ threats, the methods to analyze each has developed substantially in the past two decades.

strategic management

Many large corporations have​ a(n) ________ charged with supporting both top management and the business units in the strategic planning process.

strategic planning staff

​________ is a category of firms based on a common strategic orientation and a combination of​ structure, culture, and processes consistent with that strategy.

strategic type

Which of the following most accurately describes what the company is capable of​ becoming, and is often communicated in the​ company's vision​ statement?

strategic vision

A​ ________ is a product that appears to be​ unique, but it can satisfy the same need as another product found by consumers in the marketplace.

substitute product

The variables that can significantly affect the overall competitive positions of companies within any particular industry are known as​ key__________________________ factors.

success

Crane and Matten point out that the concept of​ ________ should be broadened to include​ economic, social, and environmental concerns. They argue that it is sometimes impossible to address this issue of the natural environment without considering the social and economic aspects of relevant communities and their activities.

sustainability

Various theories have been proposed to account for how organizations obtain fit with their environment. Which of the following is NOT one of the dominant​ theories?

tactical choice perspective

The​ ________ environment includes those elements or groups that directly affect a corporation​ and, in​ turn, are affected by it.

task

The​ political-legal part of the societal environment has a significant impact not only on the level of competition within an industry but also on which strategies might be successful. All of the following are correct about an​ organization's political-legal part of the societal environment EXCEPT​ ________.

the United​ States' $66 trillion global economy operates through a set of rules established by multidomestic corporations​ (MNC)

All of the following are correct about the code of ethics EXCEPT​ ________.

the code of ethics outlines various corporate ethical​ policies, but it does not specify how an organization expects its employees to behave while on the job

globalization

the integrated internationalization of markets and corporations

All of the following are true about industries that are in the growth or mature markets EXCEPT​ ________.

the tobacco industry is an example of an industry currently in the growth to maturity stage of the product life cycle

The term used to describe a​ business's sustainability is​ ________.

the triple bottom line