Question 1

._____ reflect(s)a firm's position in its marketplace.

Accepted Answer

A)  Earnings per share 
B)  Profit-to-sales ratio 
C)  Unit volume in sales 
D)  Ratio of inputs to outputs 
E)  Capital structure 
A)  Earnings per share 
B)  Profit-to-sales ratio 
C)  Unit volume in sales 
D)  Ratio of inputs to outputs 
E)  Capital structure

Question 2

The five forces model of competition is a tool developed by Michael Porter to help managers analyze their _____.

Accepted Answer

A)  competitive environment 
B)  economic environment 
C)  mission statement 
D)  corporate governance 
E)  social responsibility 
A)  competitive environment 
B)  economic environment 
C)  mission statement 
D)  corporate governance 
E)  social responsibility

Question 3

While evaluating and controlling the strategic plan,organizations _____.

Accepted Answer

A)  identify past and present strategies 
B)  diagnose present performance 
C)  determine and implement an appropriate organizational structure 
D)  create mission statement 
E)  monitor progress toward long-range objectives and mission 
A)  identify past and present strategies 
B)  diagnose present performance 
C)  determine and implement an appropriate organizational structure 
D)  create mission statement 
E)  monitor progress toward long-range objectives and mission

Question 4

Contingency plans can be prepared for all possibilities.

Accepted Answer

A) True 
 B)False

Question 5

An organization's _____ is the broadest and highest level of objectives.

Accepted Answer

A)  mission 
B)  rule 
C)  procedure 
D)  policy 
E)  functional strategy 
A)  mission 
B)  rule 
C)  procedure 
D)  policy 
E)  functional strategy

Question 6

Before deciding if a strategic change is necessary or desirable,the past and present strategies used by the organization need to be clearly identified.

Accepted Answer

A) True 
 B)False

Question 7

The strategy formulation phase of the strategic management process begins with _____.

Accepted Answer

A)  analyzing the organizational factors 
B)  choosing a functional strategy 
C)  choosing a corporate strategy 
D)  developing the short-range objectives 
E)  identifying the mission 
A)  analyzing the organizational factors 
B)  choosing a functional strategy 
C)  choosing a corporate strategy 
D)  developing the short-range objectives 
E)  identifying the mission

Question 8

_____ is a distinct business that has its own set of competitors and can be managed reasonably independently of other businesses within the organization.

Accepted Answer

A)  Shell corporation 
B)  Dummy corporation 
C)  Holding company 
D)  Business cluster 
E)  Strategic business unit 
A)  Shell corporation 
B)  Dummy corporation 
C)  Holding company 
D)  Business cluster 
E)  Strategic business unit

Question 9

Companies that use the focus strategy direct their attention to a narrow market segment.

Accepted Answer

A) True 
 B)False

Question 10

MBO is a philosophy based on converting personal objectives into organizational objectives.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is true of functional strategies?

Accepted Answer

A)  Functional strategies outline the specific long-range actions to be taken by the organization. 
B)  Functional strategies are initiated at the highest level in an organization. 
C)  Input by lower levels of management is essential to the successful implementation of functional strategies. 
D)  These strategies are chosen during the evaluation phase of the strategic management process. 
E)  They are also called competitive strategies. 
A)  Functional strategies outline the specific long-range actions to be taken by the organization. 
B)  Functional strategies are initiated at the highest level in an organization. 
C)  Input by lower levels of management is essential to the successful implementation of functional strategies. 
D)  These strategies are chosen during the evaluation phase of the strategic management process. 
E)  They are also called competitive strategies.

Question 12

What is a strategic business unit (SBU)?

Accepted Answer

A strategic business unit (SBU)is a dist

Question 13

What are the steps involved in SWOT analysis?

Accepted Answer

The steps involved in SWOT analysis are

Question 14

Which of the following is true of SWOT analysis?

Accepted Answer

A)  It is a tool used to formulate an organization's mission statement. 
B)  Broad environmental factors are those that are close to an organization. 
C)  An organization's strengths and weaknesses are identified by methodically assessing the organization's external environment. 
D)  It provides a general overview of whether the overall situation is healthy or unhealthy. 
E)  Broad environmental factors consist of stockholders, suppliers, competitors, labor unions, customers, and potential new entrants. 
A)  It is a tool used to formulate an organization's mission statement. 
B)  Broad environmental factors are those that are close to an organization. 
C)  An organization's strengths and weaknesses are identified by methodically assessing the organization's external environment. 
D)  It provides a general overview of whether the overall situation is healthy or unhealthy. 
E)  Broad environmental factors consist of stockholders, suppliers, competitors, labor unions, customers, and potential new entrants.

Question 15

Which of the following is true about management by objectives (MBO)?

Accepted Answer

A)  It assumes that achieving self-formulated objectives will reduce job performance. 
B)  It is a philosophy that prioritizes personal objectives and ignores organizational objectives. 
C)  It works best when the objectives of each organizational unit are derived from the objectives of the next higher unit in the organization. 
D)  It requires the top management to be solely responsible for the objective-setting process. 
E)  It originated from the writings of Frederick Taylor. 
A)  It assumes that achieving self-formulated objectives will reduce job performance. 
B)  It is a philosophy that prioritizes personal objectives and ignores organizational objectives. 
C)  It works best when the objectives of each organizational unit are derived from the objectives of the next higher unit in the organization. 
D)  It requires the top management to be solely responsible for the objective-setting process. 
E)  It originated from the writings of Frederick Taylor.

Question 16

Which of the following is true of planning?

Accepted Answer

A)  Most planning is carried out on a formal basis. 
B)  Planning should not involve personnel from all areas of the organization. 
C)  Planning enables a manager or an organization to passively affect rather than actively accept the future. 
D)  Planning needs of an organization are independent of the environment, size, and type of business. 
E)  Long-range planning is possible at any level in the organization. 
A)  Most planning is carried out on a formal basis. 
B)  Planning should not involve personnel from all areas of the organization. 
C)  Planning enables a manager or an organization to passively affect rather than actively accept the future. 
D)  Planning needs of an organization are independent of the environment, size, and type of business. 
E)  Long-range planning is possible at any level in the organization.

Question 17

Which of the following is true of strategic management?

Accepted Answer

A)  It is the application of the basic planning process at the lowest levels of the organization. 
B)  Through the strategic management process, lower-levels of management determine the long-run direction and performance of the organization. 
C)  Middle- and lower-level managers should be excluded from strategic management. 
D)  It is possible to prepare a formal plan with a well-defined strategy and not practice strategic management. 
E)  It ensures that the strategic plans that are developed are independent of the changes that occur internally and in the environment. 
A)  It is the application of the basic planning process at the lowest levels of the organization. 
B)  Through the strategic management process, lower-levels of management determine the long-run direction and performance of the organization. 
C)  Middle- and lower-level managers should be excluded from strategic management. 
D)  It is possible to prepare a formal plan with a well-defined strategy and not practice strategic management. 
E)  It ensures that the strategic plans that are developed are independent of the changes that occur internally and in the environment.

Question 18

Which of the following is true of diversification?

Accepted Answer

A)  It is a substrategy of the retrenchment strategy. 
B)  Concentric diversification is diversification into unrelated areas. 
C)  It should be adopted by an organization facing major environmental threats with strong internal resources. 
D)  It aims to make the product or service unique in its category, thus permitting the organization to charge higher-than-average prices. 
E)  An organization that faces positive market opportunities but is constrained by relatively weak internal resources should adopt this strategy. 
A)  It is a substrategy of the retrenchment strategy. 
B)  Concentric diversification is diversification into unrelated areas. 
C)  It should be adopted by an organization facing major environmental threats with strong internal resources. 
D)  It aims to make the product or service unique in its category, thus permitting the organization to charge higher-than-average prices. 
E)  An organization that faces positive market opportunities but is constrained by relatively weak internal resources should adopt this strategy.

Question 19

During the implementation phase of the strategic management process,organizations typically _____.

Accepted Answer

A)  identify their mission 
B)  set their long-run objectives 
C)  choose a corporate strategy 
D)  choose an appropriate organizational structure 
E)  identify past and present strategies 
A)  identify their mission 
B)  set their long-run objectives 
C)  choose a corporate strategy 
D)  choose an appropriate organizational structure 
E)  identify past and present strategies

Question 20

_____ is a type of retrenchment strategy.

Accepted Answer

A)  Turnaround 
B)  Diversification 
C)  Vertical integration 
D)  Merger and acquisition 
E)  Cannibalization 
A)  Turnaround 
B)  Diversification 
C)  Vertical integration 
D)  Merger and acquisition 
E)  Cannibalization

._____ reflect(s)a firm's position in its marketplace.

The five forces model of competition is a tool developed by Michael Porter to help managers analyze their _____.

While evaluating and controlling the strategic plan,organizations _____.

Contingency plans can be prepared for all possibilities.

An organization's _____ is the broadest and highest level of objectives.

Before deciding if a strategic change is necessary or desirable,the past and present strategies used by the organization need to be clearly identified.

The strategy formulation phase of the strategic management process begins with _____.

_____ is a distinct business that has its own set of competitors and can be managed reasonably independently of other businesses within the organization.

Companies that use the focus strategy direct their attention to a narrow market segment.

MBO is a philosophy based on converting personal objectives into organizational objectives.

Which of the following is true of functional strategies?

What is a strategic business unit (SBU)?

What are the steps involved in SWOT analysis?

Which of the following is true of SWOT analysis?

Which of the following is true about management by objectives (MBO)?

Which of the following is true of planning?

Which of the following is true of strategic management?

Which of the following is true of diversification?

During the implementation phase of the strategic management process,organizations typically _____.

_____ is a type of retrenchment strategy.

Management in a Diverse Workplace

The Management Movement

Developing Communication Skills

Decision-Making Skills

Ethical, social, and Legal Responsibilities of Management

International Business

Organizing Work

Organizational Structure

Understanding Work Groups and Teams

Staffing

Employee Training and Development

Motivating Employees

Developing Leadership Skills

Managing Conflict and Stress

Managing Change and Culture

Management Control

Appraising and Rewarding Performance

Operations Management and Planning

Operations Control

Filters

Exam 7: The Basics of Planning and Strategic Management

._____ reflect(s)a firm's position in its marketplace.

The five forces model of competition is a tool developed by Michael Porter to help managers analyze their _____.

While evaluating and controlling the strategic plan,organizations _____.

Contingency plans can be prepared for all possibilities.

An organization's _____ is the broadest and highest level of objectives.

Before deciding if a strategic change is necessary or desirable,the past and present strategies used by the organization need to be clearly identified.

The strategy formulation phase of the strategic management process begins with _____.

_____ is a distinct business that has its own set of competitors and can be managed reasonably independently of other businesses within the organization.

Companies that use the focus strategy direct their attention to a narrow market segment.

MBO is a philosophy based on converting personal objectives into organizational objectives.

Which of the following is true of functional strategies?

What is a strategic business unit (SBU)?

What are the steps involved in SWOT analysis?

Which of the following is true of SWOT analysis?

Which of the following is true about management by objectives (MBO)?

Which of the following is true of planning?

Which of the following is true of strategic management?

Which of the following is true of diversification?

During the implementation phase of the strategic management process,organizations typically _____.

_____ is a type of retrenchment strategy.

Management in a Diverse Workplace

The Management Movement

Developing Communication Skills

Decision-Making Skills

Ethical, social, and Legal Responsibilities of Management

International Business

Organizing Work

Organizational Structure

Understanding Work Groups and Teams

Staffing

Employee Training and Development

Motivating Employees

Developing Leadership Skills

Managing Conflict and Stress

Managing Change and Culture

Management Control

Appraising and Rewarding Performance

Operations Management and Planning

Operations Control

Filters