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140 Cards in this Set
- Front
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When the ABC Corporation makes decisions that assist it in formulating and implementing plans that are designed to achieve its objectives, it is most likely engaging in _________.
A) strategic management B) strategy utilization C) strategic processing D) strategic formality |
A) strategic management
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Of the following, which one is least likely to be considered a critical task associated with an organization's strategic management process?
A) Evaluation of the process for use in future decision making B) Evaluation of options relative to the company's mission C) Decreasing the levels of hierarchy present within the company's management structure D) Developing a set of short-term objectives that are compatible with the company's grand strategies |
C) Decreasing the levels of hierarchy present within the company's management structur
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The We Have It Your Way Organization has an established "game plan" for its business operations. This game plan reflects the company's awareness of how and where it should compete and against whom the competition should take place. It can be stated this organization has an established _________.
A) level of strategy B) formality C) planning mode D) strategy |
D) strategy
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Of the following, which statement would most likely not be considered a dimension of strategic issues?
A) Strategic issues require large amounts of the firm's resources. B) Strategic issues always impact the firm's long-term income. C) Strategic issues require the firm's external environment be considered. D) Strategic issues are future-oriented. |
B) Strategic issues always impact the firm's long-term income.
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The decision making hierarchy of a firm typically contains _______ levels.
A) 3 B) 4 C) 2 D) infinite |
A) 3
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Which level of the decision making hierarchy is best identified as being composed principally of business and corporate mangers who must translate the statements of direction and intent into concrete objectives and strategies for the individual business units?
A) Corporate level B) Strategic level C) Business level D) Functional level |
C) Business level
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An organization's board of directors and administrative officers are most likely to be found at the ________ in its decision making hierarchy.
A) corporate level B) strategic level C) business level D) functional level |
A) corporate level
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At which hierarchy level would the decisions made be more value-oriented, more conceptual, and less concrete?
A) Functional level B) Corporate level C) Strategic level D) Business level |
B) Corporate level
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Common functional-level decisions would include all of the following except ___________.
A) generic versus brand name labeling B) amount of inventory to keep C) type of production equipment D) how to best enhance the firm's image and fulfill its social responsibilities |
D) how to best enhance the firm's image and fulfill its social responsibilities
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________ refers to the degree in which participants, responsibilities, authority, and discretion in decision making are specified.
A) Formality B) Strategic management C) Planning mode D) Company mission |
A) Formality
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At times very large organizations utilize strategic evaluation as part of their comprehensive, formal planning system. This approach, identified by Henry Mintzberg, is best referred to as the _________.
A) adaptive mode B) strategic management process C) entrepreneurial mode D) planning mode |
D) planning mode
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Of the following, which statement regarding the benefits of strategic management is incorrect?
A) An accurate assessment of the impact of strategy formulation requires nonfinacial criteria to be evaluated. B) The behavioral consequences of strategic management are similar to those found in a firm guided by an authoritarian leader. C) Strategy formulation activities enhance the firm's ability to prevent problems. D) Resistance to change is reduced. |
B) The behavioral consequences of strategic management are similar to those found in a firm guided by an authoritarian leader.
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Which one of the following would not be considered a type of unintended negative consequence of involvement in strategy formulation?
A) Management members may become neglectful of their operational responsibilities due to time constraints. B) Managers may shirk their responsibility for the decisions made. C) Employees may become disappointed and disillusioned over unattained expectations. D) The involvement of employees in strategy formulation improves their understanding of the productivity-reward relationship and thus heightens their motivation. |
D) The involvement of employees in strategy formulation improves their understanding of the productivity-reward relationship and thus heightens their motivation.
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Firms with multiple products, markets, or technologies tend to utilize _______ strategic management systems.
A) more complex B) less formal C) more formal D) less complex |
A) more complex
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Which one of the following would not be considered a key component of the strategic management model?
A) empowering policies B) functional tactics C) corporate level hierarchy D) company mission |
C) corporate level hierarchy
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When the Somewhat Unique Company analyzes the quantity and quality of its financial, human, and physical resources, it is most likely conducting a/an _________.
A) internal analysis B) long-term objective formulation C) grand strategy formulation D) external analysis |
A) internal analysis
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Strategic analysis and choice in single or dominant product/service businesses center on which of the following?
A) Evaluation of the process for use in future decision making B) Evaluation of options relative to the company's mission C) Identifying strategies that are most effective in building sustainable competitive advantage D) Development of short-term objectives to guide the operations |
C) Identifying strategies that are most effective in building sustainable competitive advantage
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The XYZ Organization has a statement of means for how it will accomplish its objectives. XYZ is most likely to have a package of long-term objectives known as its ___________.
A) generic strategy B) grand strategy C) mission statement D) functional tactics |
B) grand strategy
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___________ is concerned with tracking a strategy as it is being implemented so as to detect problems in its underlying premises.
A) Continuous improvement B) Empowerment C) Strategic control D) Strategic management |
C) Strategic control
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When a firm is facing conditions that are constantly changing and those conditions can and do affect the interrelated and interdependent strategic activities of that firm, it can be stated the business is most likely operating in a/an _______ environment.
A) dynamic B) grand strategy C) isolated D) static |
A) dynamic
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All of the following statements would be considered true of a company's mission statement except which one?
A) A company's mission is an enduring statement of a firm's intent. B) A mission statement typically identifies the firm's principal products and services. C) A mission statement identifies the scope of the firm's operations. D) The mission statement staunchly presents a firm's strategic intent. |
D) The mission statement staunchly presents a firm's strategic intent.
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Of the following, which aspect is least likely to be a consideration addressed in an organization's mission statement?
A) Who are the firm's primary customers? B) What image does the firm wish to project? C) Which areas of technology will be empathized? D) What are the number of levels the corporate hierarchy will contain |
D) What are the number of levels the corporate hierarchy will contai
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Which one of the following statements is least likely to represent a fundamental belief an organization would have to guide it in creating its mission statement? .
A) The primary products will be made available to the market at a price reflecting less than total cost so as to gain market share. B) The management philosophy of the business will result in a favorable public image. C) The products or services offered can satisfy the customers within a specific market segment. D) The business will provide financial rewards for those who are willing to invest in helping the company succeed. |
A) The primary products will be made available to the market at a price reflecting less than total cost so as to gain market share.
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The XYZ Organization's mission statement is focused around three indispensable components. Of the following, which one would not be considered one of these components?
A) The markets served by XYZ shall include oil and gas producers as well as producers of chemicals. B) XYZ shall hire only individuals with sufficient educational levels so as to be of benefit to our customers and shareholders. C) The customers of XYZ shall include global consumers of gas and oil products and domestic users of nontoxic chemicals. D) The technologies utilized by XYZ shall focus upon development of alternative sources of gas and oil so as to remain competitive within the industry. |
B) XYZ shall hire only individuals with sufficient educational levels so as to be of benefit to our customers and shareholders.
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Of the following statements, which one would not fit well in the segment of a corporate mission statement expressing the corporation's concern for public image?
A) Our organization is dedicated to the total success of our business as a worldwide competitor. B) We have a strong responsibility to the communities in which we work. C) Our organization must be responsive to the public's desire for improvement in the quality of life. D) We shall adhere to the philosophy of equal opportunity for all. |
A) Our organization is dedicated to the total success of our business as a worldwide competitor
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Purportedly, there are three economic goals that serve to guide the strategic direction of almost every business organization. ________ is least likely to be considered one of these goals?
A) Survival B) Profitability C) Sustained absolute advantage D) Growth |
C) Sustained absolute advantage
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When an organization makes a statement such as "We believe that meeting the needs of customers, suppliers, and neighbors is instrumental to fulfilling our mission" the organization is most likely identifying its _________.
A) vision statement B) company creed C) mission statement D) agency theory |
B) company creed
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Of the following statements, which one is least likely to be true regarding a company's statement of philosophy?
A) A company's statement of philosophy is often called its company creed. B) It reflects the guiding values and philosophical priorities to which strategic organizational managers are committed. C) This statement reflects the basic beliefs and aspirations of the organization. D) A company's statement of philosophy rarely if ever appears within the organization's mission statement. |
D) A company's statement of philosophy rarely if ever appears within the organization's mission statement.
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Which one of the following statements would be considered false when discussing the value a company places on its public image?
A) The chance of gaining negative public image does not inspire organizations into action. B) Public agitation stimulates organizations into taking corrective actions. C) Essentially, it is the public's opinion of an organization and its actions that count in the long run. D) Firms rarely address the issue of public image in an intermittent manner. |
A) The chance of gaining negative public image does not inspire organizations into action
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A major determinant of a firm's success is the extent to which the firm can relate functionally to its _________ environment.
A) internal B) competitive C) strategic D) external |
D) external
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Which one of the following would not be considered one of the newest trends in mission statement components?
A) Statements of company vision B) Inclusions of the top-level management team's work experience and ethics C) Reflection of sensitivity to consumers D) Expression of concern for quality |
B) Inclusions of the top-level management team's work experience and ethics
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Of the following, which one is best identified as a statement that presents a firm's strategic intent designed to focus the energies and resources of the company on achieving a desirable future?
A) Corporate philosophy statement B) Company creed C) Vision statement D) Mission statement. |
C) Vision statement
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All of the following statements would be considered to be true regarding company vision statements except ________.
A) vision statements are often combined with the mission statement B) vision statements are often designed to be memorable, one line statements C) vision statements are never presented with an organization's mission statement D) vision statements reflect an organization's strategic intent |
C) vision statements are never presented with an organization's mission statement
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The BYOB Organization has a highly dedicated team of strategic decision makers. Of the following, which one is least likely to be one of the duties or responsibilities handled by these individuals?
A) Hiring front line supervisors and managers B) Allocation of resources C) Monitoring the firm's success D) Determining the firm's mission |
A) Hiring front line supervisors and managers
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The board of directors of the TMJ Company takes great pride in the operations of this very successful company. Which of the following statements would most likely be considered false about TMJ's board of directors?
A) The board is comprised of strategic managers and stockholder representatives. B) The board is responsible for the creation of the company mission. C) The board rarely has to deal with potentially unethical business issues. D) The board establishes the compensation level of top officers and executives. |
C) The board rarely has to deal with potentially unethical business issues.
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If an organization is suffering from disruptions because the wishes of its owners and the actions of its managers do not coincide the problem is actually one of _______.
A) agency B) strategic intent C) board of director's discrepancy D) adverse selection |
A) agency
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When the costs of problems that arise if the philosophies of company agents and owners do not align are coupled with the costs associated with minimizing these problems, it is known as _________.
A) adverse selection B) moral hazard problems C) agency costs D) agency theory |
C) agency costs
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The owners of the Rounders Company are experiencing a problem because they are unable to gain sufficient information about the company to effectively monitor the actions of its executives. This type of problem is best known as a/an _______ problem.
A) agency B) moral hazard C) principal-agent D) adverse selection |
B) moral hazard
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________ is/are an agency problem caused by the limited ability of stockholders to precisely determine the competencies and priorities of executives at the time they are hired.
A) Agency costs B) Moral hazard C) Principal-agent discrepancy D) Adverse selection |
D) Adverse selection
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All of the following except ______ would be considered viable maneuvers an organization can undertake to minimize or correct agency problems.
A) provide frontload bonuses to executives B) define the agent's responsibilities in a contract C) pay executives a premium for their services D) create teams of executives across different units of the organization |
A) provide frontload bonuses to executives
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he Stormio Damage Repairio Corporation of Topeka is in the process of establishing its long-term objectives. These objectives will be used to guide the corporation toward achieving prosperity in its future years. All but which of the following areas would these long-term objectives need to address?
A) The ability of the firm to invest in capital equipment this year. B) The corporation's view of its responsibility to the public. C) The ability of the firm to attain acceptable levels of profits. D) The corporation's plans for methods of increasing development of its employees. |
A) The ability of the firm to invest in capital equipment this year.
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There are several qualities the long-term objectives developed by Stormio should posses that will improve their chances of being attained. All of the following except _________ would be considered one of these necessary qualities.
A) Understandable B) Flexible C) Measurable over time D) Encompass a one-year time span |
D) Encompass a one-year time span
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A set of measures directly linked to a company's strategy, financial performance, customer knowledge, internal business processes, and learning and growth is best known as that company's _________.
A) vision statement B) balanced scorecard C) strategic plan D) corporate mission |
B) balanced scorecard
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The Grinder Up Corporation is a waste disposal business based in Santa Fe. This corporation possesses unique capabilities that assist it in being able to sustain its current market position. These capabilities include having secured suppliers of scarce raw materials, continuing dominance in its market, excellence at efficiencies, and a high degree of capitalization. It is most likely that Grinder Up engages in which one of the following strategies?
A) Differentiation B) Focus C) Low-cost leadership D) Concentric diversification |
C) Low-cost leadership
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Strategies dependent on ______ are designed to appeal to customers with a special sensitivity for a particular product attribute.
A) differentiation B) focus C) vertical integration D) conglomerate diversification |
A) differentiation
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The strategy embraced by the Kun-Pow Fortune Cookie Company of Memphis strives to address the needs of a very select and specialized market segment. Kun-Pow is most likely to engage in which one of the following types of strategy?
A) Differentiation B) Generic C) Focus D) Concentrated growth |
C) Focus
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Of the value disciplines proposed by Michael Treacy and Fred Wiersema, which one is best identified as referring to providing customers with convenient and reliable products and services at competitive prices?
A) Customer intimacy B) Operational excellence C) Horizontal integration D) Product leadership |
B) Operational excellence
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Companies that implement a strategy of ________ continually tailor and shape products and services to fit an increasingly refined definition of the customer.
A) customer intimacy B) consumer differentiation C) operational excellence D) product leadership |
A) customer intimacy
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Companies that pursue the discipline of _______ strive to produce a continuous stream of state-of-the-art products and services.
A) low-cost leadership B) focus strategy C) concentric diversification D) product leadership |
D) product leadership
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Master or business strategies are often referred to as grand strategies. These types of strategies provide basic direction for strategic actions and are the basis for sustained efforts to achieve long-term objectives. Which one of the following would not be classed as a grand strategy?
A) Market development B) Innovation C) Differentiation D) Turnaround |
C) Differentiation
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A grand strategy in which a firm directs its resources to the profitable growth of a single product is best referred to as ______.
A) Concentric diversification B) Concentrated growth C) Product development D) Divestiture |
B) Concentrated growth
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All of the following are conditions that favor concentrated growth except which one?
A) The industry is resistant to technological advancements. B) The industry is in the maturity stage of the product life cycle. C) The firm is willing to settle for little if any growth. D) The firm's targeted markets are not product saturated. |
C) The firm is willing to settle for little if any growth.
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Which one of the following grand strategies is noted as presenting products, often with only cosmetic modifications, to customers in related marketing areas?
A) Market development B) Innovation C) Divestiture D) Product development |
A) Market development
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_________ involves the substantial modification of existing products or the creation of new but related products that can be marketed to current customers through established channels.
A) Innovation B) Differentiation C) Product development D) Market development |
C) Product development
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Which of the following is least likely to be true about the grand strategy of innovation?
A) Few firms utilize innovation as the fundamental means of relating to their markets. B) It is becoming less and less risky for companies to engage in innovation. C) Few innovative ideas prove profitable due to the associated costs involved. D) Costs of promoting a promising idea into a profitable product are quite high. |
B) It is becoming less and less risky for companies to engage in innovation.
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Very large firms are noted for initiating plans to acquire another business because it represents the most promising investment opportunity that is available to them. This type of strategic maneuver is best identified as _______.
A) conglomerate diversification B) divestiture C) concentric diversification D) turnaround |
A) conglomerate diversification
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The grand strategy that involves the reduction of costs and assets by a company in order to survive and recover from declining profits is best known as _______.
A) divestiture B) liquidation C) concentric diversification D) turnaround |
D) turnaround
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A _____ involves the sale of a firm or a major component of a firm.
A) conglomerate diversification strategy B) divestiture strategy C) liquidation strategy D) turnaround strategy |
B) divestiture strategy
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All of the following would be true statements regarding the concept of bankruptcy except which one of the following?
A) Liquidation bankruptcy is also known as Chapter 7. B) A strategy for a company to engage in to recapture its viability is referred to as reorganization bankruptcy. C) Liquidation involves the complete distribution of assets to creditors. D) Creditors receive full payment of monies owed according to the placement or ranking of the amounts due them. |
D) Creditors receive full payment of monies owed according to the placement or ranking of the amounts due them.
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A _____ is a grand strategy in which companies create a co-owned business that operates for their mutual benefit.
A) strategic alliance B) consortia C) joint venture D) keiretsus |
C) joint venture
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Which one of the following statements would be considered false about the concept of competitive advantage?
A) A prominent source of competitive advantage can be found in the business's low cost structure. B) Businesses become successful because they possess some advantage relative to their competitors. C) Businesses that create competitive advantage from differentiation usually experience above-average profitability within their industry. D) Businesses that engage other than a low-cost strategy usually experience below-average profitability. |
D) Businesses that engage other than a low-cost strategy usually experience below-average profitability.
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The business strategy decided upon by the Ripper Up Remodeling Corporation is one that engages in value chain activities, which are achieved at a cost that is well below its competitors. In this way, the competitors can require less money for its services than competitors can. It is safe to say this corporation is engaging a __________.
A) differentiation strategy B) strategic alliance strategy C) retrenchment strategy D) low-cost strategy |
D) low-cost strategy
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Major Lionel Minor began his own new home construction company when he retired from the Air Force five years ago. The company has rapidly grown to be very large and has reported earnings of over $40 million in the past year. Retired Major Minor attributes this high rate of success to his ability to service his customers at a low price. His organization has to meet several requirements in order to continually support and sustain this low-cost leadership status. Which of the following would not be one of these requirements?
A) Tight cost control B) Avoidance of economies of scale C) Incentives based on meeting quantitative targets D) Benchmarking orientation |
B) Avoidance of economies of scale
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A business strategy that seeks to build competitive advantage with its product or service by having it be unique from other available competitive products would be classed as __________ strategy.
A) differentiation B) market focus C) low-cost leadership D) speed-based |
A) differentiation
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All of the following would be considered organizational skills and resources that foster a differentiation strategy except which one?
A) Strong marketing abilities B) Products of services designed for ease of manufacture or delivery C) Corporate reputation for quality or technical leadership D) Creative talent and flair |
B) Products of services designed for ease of manufacture or delivery
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Sustainable activities that provide all of the following opportunities relative to key industry forces except _________ should become the basis for differentiation aspects within the business's competitive strategy.
A) less price sensitivity of buyers B) rivalry is reduced C) technological changes increase learning and investments D) brand loyalty is difficulty for newcomers to overcome |
C) technological changes increase learning and investments
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The Tick-Tock Clock Corporation is able to successfully meet the needs of its customers more rapidly than any of its competitors can. It is most likely this corporation is engaging in which one of the following business strategies?
A) Differentiation B) Speed-based C) Vertical integration D) Market focus |
B) Speed-based
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Through its use of speed-based strategy, the Tick-Tock Clock Corporation is most likely to gain its competitive advantage by being proficient in all but which one of the following activities?
A) Product development cycles B) Information sharing and technology C) Customer responsiveness D) Product cost leadership |
D) Product cost leadership
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The extent to which a business concentrates on a narrowly defined market is best referred to as ___________.
A) market focus B) low-cost leadership C) strategic alliance D) retrenchment |
A) market focus
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All of the following would be considered emerging industries of the last decade except _______.
A) online services B) solar heating C) airline services D) fiber optics |
C) airline services
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All of the following except which one would be considered a characteristic of the markets in emerging industries?
A) There are few entry barriers. B) There are low initial costs that escalate at time goes by. C) There is need for high-risk capital to be invested. D) There may be an inability to obtain sufficient raw materials. |
B) There are low initial costs that escalate at time goes by.
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For success in the emerging industry setting, business strategies require all but which one of these features?
A) The ability to shape the industry's structure B) The ability to rapidly improve product quality C) The early acquisition of a core group of loyal customers D) The ability to be self-sufficient |
D) The ability to be self-sufficient
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Which one of the following would not be considered a necessary requirement of business strategies for growing industries?
A) The ability to rapidly improve product quality B) The ability to differentiate the firm's products C) The ability to establish strong brand recognition D) Strong product design skills |
A) The ability to rapidly improve product quality
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________ strategies are those used by firms competing in markets where the growth rate of that market from year to year has reached or is close to zero.
A) Growth industry B) Emerging industry C) Mature industry D) Declining industry |
C) Mature industry
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At which one of the following stages of evolution would the industry firms most likely sell increasingly to experienced, repeat buyers, face competition that is more oriented to cost and service, and competition for market share intensifies?
A) Declining industry stage B) Mature industry stage C) Growth industry stage D) Emerging industry stage |
B) Mature industry stage
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Strategic elements of successful firms in maturing industries often include all of the following except which one?
A) Vertical integration B) International expansion C) Careful buyer selection D) Emphasis on process innovation |
A) Vertical integration
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Firms in a declining industry should choose strategies that emphasize all but which one of the following?
A) New investments B) Production efficiency C) Distribution efficiency D) Product innovation |
A) New investments
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A _______ industry is one in which no firm has a significant market share and can strongly influence industry outcomes.
A) declining B) fragmented C) maturing D) global |
B) fragmented
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Of the following, which one is least likely to be considered as a generic global competitive strategy?
A) Protected niche B) Global focus C) National focus D) National niche |
D) National niche
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The Times-R-Rough Corporation has decided to cut back on its product lines and reduce the size of its operations because it can no longer support commitments needed to sustain it. This business is most likely attempting to engage in _________.
A) divestiture B) conglomerate diversification C) retrenchment D) liquidation |
C) retrenchment
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Jerome Washington's company has decided to acquire two other businesses in order to increase its growth and earning potential. In essence, Jerome's company desires to become a multibusiness company. Which one of the following would be least likely to be considered another valid rationale for why the company would desire to take this action?
A) The company wants to be able to monopolize a portion of the market segment. B) The company wants to diversify risks. C) It wishes to increase vertical integration. D) It desires to have an instant market presence without waiting on the process of slow internal growth. |
A) The company wants to be able to monopolize a portion of the market segment.
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The market share of a business divided by the market share of its largest competitor equals the business's ________.
A) relative differentiation strategy B) BCG growth share matrix C) portfolio technique results D) relative competitive position |
D) relative competitive position
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According the BCG growth-share matrix, which of the following would be most likely to possess a low market share and a high growth rate?
A) Dog B) Question mark C) Cash cow D) Star |
B) Question mark
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The 1 4 U 2 N V Corporation currently possesses a low share of its available market. Additionally, this company's portfolio reveals it has extremely low market growth. This business is most likely to be classed as which one of the following according the BCG growth-share matrix?
A) Dog B) Question mark C) Star D) Cash cow |
A) Dog
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All of the following would be considered reasons for why the industry attractiveness-business strength matrix offers improvement over the BCG matrix except _________.
A) the terminology used is preferred and more understandable B) it reduces the need for strategy formulation C) the measures tap many additional factors D) it brings to light important considerations in strategy implementation |
B) it reduces the need for strategy formulation
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Which one of the following would not be classed as a necessary financial strength factor to be considered when a company is constructing its industry attractiveness-business strength matrix?
A) Solvency B) Cash flows C) Sales volatility D) Break-even point |
C) Sales volatility
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The Ride 'Em Cowboy Western Wear Corporation of Houston is very efficient in maintaining low overhead costs. This corporation has excellent skills in operational efficiency and cost management. However it faces few sources of advantage within its industry, with most of those being quite small. Under which of the following industry environments is this corporation most likely to be placed?
A) Specialization businesses B) Stalemate businesses C) Volume businesses D) Fragmented businesses |
B) Stalemate businesses
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usinesses with many sources of advantage that are characterized by high levels of skill in achieving differentiation such as product design and innovation would most likely be classed as which one of the following under the BCG's strategic environments matrix?
A) Volume business B) Fragmented business C) Stalemate business D) Specialization business |
D) Specialization business
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Which one of the following would not be considered a contribution to strategic analysis through the organizations' use of the portfolio approach?
A) It does not address how value is created across business units. B) It helps to convey large amounts of information about business units in a simplified format. C) It serves to convey rationales behind corporate strategies in an easily understandable manner. D) It simplifies priorities for sharing resources. |
A) It does not address how value is created across business units.
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In multibusiness organizations, there are many opportunities to build value or sharing. Which one of the following would be least likely to be considered a potential competitive advantage for organizations sharing common distribution channels?
A) Lower distribution costs B) Enhanced bargaining power for shelf space C) Improved input quality D) Enhanced bargaining power to achieve better profit margins |
C) Improved input quality
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When making evaluations of multibusiness companies, impediments to achieving enhanced value through operating opportunities are most likely to include all but which one of the following?
A) Input needs are different. B) Lower input costs C) Inputs are needed at different plant locations. D) Centralized purchasing is not responsive to the separate needs of the various plants. |
B) Lower input costs
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All of the following would be considered to be true statements regarding organizations that embrace the synergy approach except __________.
A) The businesses must be related in ways that make the core competencies beneficial. B) The combination of competencies must be difficult to recreate. C) Each company's core competencies should provide a relevant competitive advantage to the business. D) One of the businesses must possess all the stronger core competencies for the approach to work effectively. |
D) One of the businesses must possess all the stronger core competencies for the approach to work effectively.
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The ______ perspective sees multibusiness companies as creating value by influencing the businesses they own.
A) parenting framework B) synergy approach C) portfolio D) patching |
A) parenting framework
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There are various places organizations can look to obtain parenting opportunities that can become the focal points of strategic analysis across multiple businesses. Which one of the following would not be considered a place for this type of opportunity to be found?
A) Size and age of the company B) Common capabilities C) Internal weaknesses D) External relationships |
C) Internal weaknesses
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Excessive diversification, under or over investment during business cycle swings, and lengthy product life cycles are all examples of ______ found within the parenting framework.
A) linkages B) predictable errors C) major changes D) common capabilities |
B) predictable errors
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The executives of the Johnson Submarine Corporation are facing rapid changes taking place within the available market opportunities of the organization. These executives have decided to "remap" the business so as to better match these quick changes. This "remapping" approach is best referred to as _________.
A) patching B) strategic positioning C) retrenchment D) strategic processing |
A) patching
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All of the following are true about the concept of patching except which one of the following?
A) Patching is a process of remapping a business. B) Patching focuses on the role and ability of managers to create value in the management of multibusiness companies. C) Patching is a costly undertaking with an anticipated low return on the investment. D) Patching can take the form of splitting or combining chunks of the businesses. |
C) Patching is a costly undertaking with an anticipated low return on the investment.
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Critical business undertakings such as decision making, operational activities, and sales activities are often referred to as an organization's ________.
A) strategic positioning B) strategic processes C) maturation D) globalization |
B) strategic processes
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_________ is the way a business is designed and positioned to serve target markets.
A) Volume business B) Global focusing C) Strategic positioning D) A parenting framework |
C) Strategic positioning
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Of the following, which one would not be considered a type of simple rule for flexibility that can help executives manage the different aspects of seizing opportunities?
A) Boundary rules B) Timing rules C) Entrance rules D) Priority rules |
C) Entrance rules
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Measurable outcomes that are designed to be achievable in one year or less of the company's life are called ___________.
A) corporate missions B) downsizing C) short-term objectives D) reengineering |
C) short-term objectives
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Short-term objectives are more consistent when they clearly indicate all but which one of the following?
A) What is to be accomplished? B) How will it be accomplished? C) When will it be accomplished? D) Who will make the decisions? |
D) Who will make the decisions?
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The key, routine activities that must be undertaken in each business area - such as marketing, finance, and operations - that provide the business's products and services are called _________.
A) policies B) functional tactics C) short-term objectives D) golden parachutes |
B) functional tactics
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Functional tactics are different from business or corporate strategies in all but which one of the following ways?
A) Costs incurred B) Specificity C) Participants who develop them D) Time horizon |
A) Costs incurred
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The Up and At 'Em Clock Company of Vermont recently began to provide its employees with training and development that is provided by a Boston-based firm. The company has found this new method to be cost effective and time saving. It can be stated that the Up and At 'Em Clock Company is engaging the use of ________.
A) empowerment B) outsourcing C) functional tactics D) policy regeneration |
B) outsourcing
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________ are directives designed to guide the thinking, decisions, and actions of managers and subordinates in implementing a firm's strategy.
A) Short-term objectives B) Functional tactics C) Policies D) Golden handcuffs |
C) Policies
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The act of allowing an individual or team the right and flexibility to make decisions and initiate actions is best referred to as which one of the following?
A) Reengineering B) Empowerment C) Outsourcing D) Delegation |
B) Empowerment
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An organization's formal, written polices have several advantages. Which one of the following would not be considered one of these advantages?
A) They systematically enhance indirect control. B) They require managers to think through the policy's meaning and intended use. C) They make equitable treatment of problems more likely. D) They decrease the need for elaborate business strategy implementation processes. |
D) They decrease the need for elaborate business strategy implementation processes.
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The type of executive bonus compensation that is noted for promoting longer executive tenure than other forms is which one of the following?
A) Golden parachutes B) Cash based on internal business performance using financial measures C) Restricted stock plans D) Stock option grants |
C) Restricted stock plans
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When discussing executive bonus compensation plans, the right to purchase company stock at a fixed price at some future date is called ________.
A) stock options B) restricted stock C) golden handcuffs D) golden parachutes |
A) stock options
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Which of the following types of executive bonus compensation is most likely to have the shortcoming of achievement of compensation whether or not wealth is created for shareholders of the company?
A) Restricted stock plans B) Golden parachute C) Golden handcuffs D) Stock option grants |
B) Golden parachute
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All of the following would be considered a type of executive bonus compensation except ________.
A) Restricted stock plans. B) Golden handcuffs C) Cash D) Golden whips |
D) Golden whips
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Under which one of the following plan would the executive's compensation be based on the difference between the item's initial price and its selling or exercised price?
A) Stock options B) Restricted stock plan C) Golden parachute D) Golden handcuffs |
A) Stock options
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Of the following, which one is least likely to be considered true when discussing the concept of stock options?
A) Stock option plans often lack the benefits of plans that include true stock ownership. B) Smart use of stock options and other incentive compensation boosts organizational performance. C) Stock options provide no actual upside potential for executives. D) Executive stock option plans may induce management to undertake more risky projects. |
C) Stock options provide no actual upside potential for executives.
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A/An ________ is designed to provide benefits of direct executive stock ownership.
A) golden parachute plan B) restricted stock plan C) functional tactic plan D) outsourcing |
B) restricted stock plan
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All of the following statements except ________ would be considered true regarding the concept of restricted stock plans.
A) The executive is free to sell the company shares at any time. B) In a typical plan, the executive is given a specific number of company stock shares. C) These plans are contingent upon a certain vesting period. D) Performance provisions instilled within the plan can help ensure the executive is not compensated without achieving some level of shareholder wealth creation. |
A) The executive is free to sell the company shares at any time.
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_____________ refer(s) to either a restricted stock plan or to a bonus income deferred in a series of annual installments.
A) Golden parachute B) Stock option plans C) Golden handcuffs D) Functional tactics |
C) Golden handcuffs
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A form of bonus compensation that is designed to retain talented executives and which calls for a substantial cash payment if the executive quits, is fired, or retires is best known as a/an __________.
A) golden stock option B) golden parachute C) golden glove D) golden handcuff |
B) golden parachute
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All of the following except which one would be considered true about golden parachutes?
A) Golden parachutes may contain covenants that allow executives to cash in on noninvested stock compensation. B) The popularity of golden parachutes has grown over the last decade. C) Golden parachutes do not involve the maximization of stockholder wealth. D) The parachutes are considered golden because of the size of the cash payments involved. |
C) Golden parachutes do not involve the maximization of stockholder wealth.
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If an organization has the strategic goal of improving its operational efficiency, which one of the following compensation plans would it most likely incorporate?
A) Golden parachutes B) Restricted stock plans C) Cash D) Golden handcuffs |
C) Cash
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Managers who are in charge of the success of an organization's strategy typically are concerned with all but which one of the following?
A) Are our assumptions about key trends correct? B) Are objectives being met? C) Are we moving in the proper direction? D) How are we doing in comparison to our closest competitor? |
D) How are we doing in comparison to our closest competitor?
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Strategic control is concerned with tracking a strategy
A) as it is being implemented B) before it is implemented C) shortly after it is implemented D) long after it is implemented |
A) as it is being implemented
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Which one of the following would not be considered a basic type of strategic control?
A) Premise control B) Implementation control C) Feedback control D) Strategic surveillance |
C) Feedback control
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Which one of the following strategic controls would have the basic characteristics of a high degree of focusing, a high degree of formalization in data acquisition, can be used with company- and strategy-specific factors, and have key strategic thrusts and milestones as objects of control?
A) Premise control B) Implementation control C) Special alert control D) Strategic surveillance |
B) Implementation control
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Every strategy is based on certain assumptions and predications. ________ control is designed to check systematically and continuously whether or not what the strategy is based on is still valid.
A) Premise B) Implementation C) Special alert D) Strategic surveillance |
A) Premise
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_________ control is designed to monitor a broad range of events inside and outside the firm that are likely to affect the course of its strategy.
A) Premise B) Strategic surveillance C) Implementation D) Special alert |
B) Strategic surveillance
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Which one of the following is best described as being a thorough, often rapid reconsideration of the firm's strategy because of a sudden, unexpected event?
A) Implementation control B) Strategic surveillance control C) Special alert control D) Premise control |
C) Special alert control
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Which one of the following would not be considered a basic type of implementation control?
A) Strategic thrusts B) Milestone projectiles C) Strategic projects D) Milestone reviews |
B) Milestone projectiles
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Implementation control is enabled through all of the following operational systems except _______.
A) incremental innovation B) budgets C) key success factors D) schedules |
A) incremental innovation
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_________ is one of the basic types of strategic control.
A) Operational control B) Long-term control C) Special alert control D) Stakeholder control |
C) Special alert control
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Planning premises are primarily concerned with _____ and _____ factors
A) environmental and internal B) environmental and industry C) internal and strategic D) strategic and operational |
B) environmental and industry
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The two basic types of implementation controls are monitoring strategic thrusts and
A) milestone reviews B) post hoc reviews C) ad hoc review D) random reviews |
A) milestone reviews
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Managers must select premises whose change.
A) is unlikely B) is improbable C) is likely D) is conditional |
C) is likely
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An alternative approach linking operational and strategic control, named the balanced scorecard, was developed by which of the following persons?
A) David Kaplan and Robert Norton B) Daniel Norton and Robert Kaplan C) Robert Kaplan and David Norton D) Daniel Kaplan and Robert Norton |
C) Robert Kaplan and David Norton
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_________ is a management control system.
A) Balanced Scorecard B) Continuous improvement C) Innovation D) Incremental innovation |
A) Balanced Scorecard
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The balanced Scorecard incorporates feedback around internal business
A) inputs B) outputs C) processes D) systems |
B) outputs
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The Balanced Scorecard views the organization from ___ perspectives.
A) 2 B) 3 C) 4 D) 6 |
C) 4
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The question, "What are our core competencies and areas of operational excellence" is part of which perspective of the Balanced Scorecard?
A) The business process perspective B) The learning and growth perspective C) The customer perspective D) The financial perspective |
A) The business process perspective
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The question, "How are we doing for our shareholders" is part of which perspective of the Balanced Scorecard?
A) The business process perspective B) The learning and growth perspective C) The customer perspective D) The financial perspective |
D) The financial perspective
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A _____ helps executives and CEOs access specific information to monitor measurable outcomes related to the execution of their strategies.
A) Balanced Scorecard B) dashboard C) wiki D) gopher |
B) dashboard
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