Strategic Management Test 1

Front 1

Rational Logic is essential to making good strategic decisions, particularly in situations of great uncertainty or little precedent.

Back 1

False

Front 2

All strategy formulation, implementation and evaluation decisions have ethical ramifications.

Back 2

True

Front 3

A mission statement answers the question "What do we want to become?" whereas a vision statement answers "What is our business?"

Back 3

False

Front 4

Opportunities and threats are included within an organization's controllable activities through the strategic management process.

Back 4

False

Front 5

The following is not an activity of the strategy implementation phase of the strategic management process.

Back 5

Developing strategies

Front 6

Which of the following is called the action phase of the strategic management process?

Back 6

Strategy implementation

Front 7

Only a few managers can be involved in the process of performing an external audit

Back 7

False

Front 8

When interest rates fall, capital becomes more costly or unavailable, discretionary income falls and demand for discretionary good falls.

Back 8

False

Front 9

A firm's opportunities and threats result from the impact of external forces on the firm's diverse set of stakeholders, as well as on its products, services markets and natural environment.

Back 9

True

Front 10

In an EFE Matrix, opportunities often receive higher weights than threats, but threats too can receive hight weights if they are especially severe if threatening.

Back 10

True

Front 11

The strategic management process is conceptually the same for multinational firms as for purely domestic firms; however, multinational firms face unique and diverse risks that domestic firms do not.

Back 11

True

Front 12

To perform an external audit, a company first must:

Back 12

Gather competitive intelligence and information about external trends.

Front 13

Key social, cultural, demographic and environmental variables does not include:

Back 13

Size of government budgets

Front 14

The vision statement should be short-preferably one sentence.

Back 14

True

Front 15

An enduring statement of purpose that distinguishes one organization from other similar enterprises, the mission statement is a declaration of an organization's "reason for being."

Back 15

True

Front 16

An effective mission statement is usually broad in scope to allow for a range of feasible alternative objectives and strategies and to effectively reconcile differences among, and appeal to, the organization's diverse stakeholders.

Back 16

True

Front 17

A clear mission provides he foundation for developing a comprehensive vision statement.

Back 17

False

Front 18

Not a component of a mission statement.

Back 18

Competitiors

Front 19

Social policy doesn't concern what responsibilities the firm has to:

Back 19

Competitors

Front 20

The tangible, visible, and largely conscious forces that shape the workplace are captured by the organization's culture.

Back 20

False

Front 21

Compared tot the external audit, the process of performing an internal audit provides more opportunity for participants to understand how their jobs, departments, and divisions fit into the whole organization.

Back 21

True

Front 22

Internal Factor Evaluation Matrix provides a basis for identifying and evaluating relationships among the functional areas of a business.

Back 22

True

Front 23

The Resource-Based View approach to competitive advantage contends that external forces are more important for a firm than internal factors in achieving and sustaining competitive advantage.

Back 23

True

Front 24

A firm's strengths that cannot be easily matched or imitated by competitors are called:

Back 24

Distinctive competencies

Front 25

An IFE doesn't involve:

Back 25

Assigning a weight that ranges from 0.0 to 1.0 to each factor that indicates the relative importance of the factor to the firm's success regardless of the industry it is in.

Front 26

There are seven basic functions of marketing: customer analysis, selling product and service planning, pricing, distribution, marketing marketing research and opportunity analysis.

Back 26

True

Front 27

Dividend decisions concern issues such as the percentage of earnings paid to stockholders, the stability of dividends paid over time and the repurchase or issuance of stock.

Back 27

True

Front 28

A management information system receives raw material from both the external and internal evaluation of an organization.

Back 28

A limitation of financial ratios is the fact that they are based on the accounting data.

Front 29

Four common approaches to determine R&D budget allocations used successfully are: 1)finance as many project proposals as possible; 2) use a percentage-of-sales method; 3) budget for R&D about what competitors spend; or 4) decide how many successful new products are needed and work backwards to estimate the required R&D investment.

Back 29

True

Front 30

____________________ management deals with inputs, transformations and outputs that vary across industries and markets.

Back 30

Production/Operations

Front 31

The _______________ decision concerns determining the best capital structure for the firm and includes examining various methods by which the firm can raise capital.

Back 31

Financing