Question 1

The first step in the strategic management process is the establishment of organizational direction.

Accepted Answer

A) True 
 B)False

Question 2

In general,the strategic management process is thought to consist of sequential and continuing steps.

Accepted Answer

A) True 
 B)False

Question 3

Motivations,status symbols,and attitudes of the other country are all important aspects of the international component of the organization's operating environment.

Accepted Answer

A) True 
 B)False

Question 4

________ is the process of ensuring that an organization possesses and benefits from the use of an appropriate organizational strategy.

Accepted Answer

A) Strategic planning 
B) Strategy visualization 
C) Decision making 
D) Strategic management 
E) Integrated business planning 
A) Strategic planning 
B) Strategy visualization 
C) Decision making 
D) Strategic management 
E) Integrated business planning

Question 5

Demographics are the statistical characteristics of a population.

Accepted Answer

A) True 
 B)False

Question 6

Which strategy is an organization following when it focuses on making an organization more competitive by developing a product or products that customers perceive as being different from products offered by competitors?

Accepted Answer

A) cost leadership 
B) differentiation 
C) focus 
D) stability 
E) divestiture 
A) cost leadership 
B) differentiation 
C) focus 
D) stability 
E) divestiture

Question 7

Which level of the organization's environment exists inside the organization and normally has immediate and specific implications for managing the organization?

Accepted Answer

A) the general environment 
B) the internal environment 
C) the operating environment 
D) the external environment 
E) the political environment 
A) the general environment 
B) the internal environment 
C) the operating environment 
D) the external environment 
E) the political environment

Question 8

Which of the following is true about the GE Multifactor Portfolio Matrix?

Accepted Answer

A) Businesses falling in the cells that form a diagonal from lower left to upper right in the matrix are strong businesses that should be invested in regularly. 
B) Businesses in the cells below and to the right of the diagonal are medium-strength businesses that should be invested in only selectively. 
C) The GE Multifactor Portfolio Matrix does not consider factors such as various types of risk associated with product development. 
D) In the matrix,businesses above and to the left of the diagonal are the weakest and serious candidates for divesture. 
E) This tool helps managers develop organizational strategy that is based primarily on market attractiveness and business strengths. 
A) Businesses falling in the cells that form a diagonal from lower left to upper right in the matrix are strong businesses that should be invested in regularly. 
B) Businesses in the cells below and to the right of the diagonal are medium-strength businesses that should be invested in only selectively. 
C) The GE Multifactor Portfolio Matrix does not consider factors such as various types of risk associated with product development. 
D) In the matrix,businesses above and to the left of the diagonal are the weakest and serious candidates for divesture. 
E) This tool helps managers develop organizational strategy that is based primarily on market attractiveness and business strengths.

Question 9

Which of the following is true about a star SBU?

Accepted Answer

A) Star SBUs may barely support themselves; in some cases,they actually drain off cash resources generated by other SBUs. 
B) Star SBUs provide the organization with large amounts of cash because their market is not growing significantly. 
C) An SBU that is a star has a small share of a high-growth market. 
D) An SBU that is a star has a high share of a high-growth market and typically needs large amounts of cash to support rapid and significant growth. 
E) Because the market of star SBUs is not growing significantly,the cash is generally used to meet the financial demands of the organization in other areas. 
A) Star SBUs may barely support themselves; in some cases,they actually drain off cash resources generated by other SBUs. 
B) Star SBUs provide the organization with large amounts of cash because their market is not growing significantly. 
C) An SBU that is a star has a small share of a high-growth market. 
D) An SBU that is a star has a high share of a high-growth market and typically needs large amounts of cash to support rapid and significant growth. 
E) Because the market of star SBUs is not growing significantly,the cash is generally used to meet the financial demands of the organization in other areas.

Question 10

Competitor capability refers to a firm's ability to undertake an action.

Accepted Answer

A) True 
 B)False

Question 11

According to Porter,threat of new entrants refers to ________.

Accepted Answer

A) the power that customers have over the firms 
B) the power that suppliers have over the firms 
C) the extent to which customers may use services from another industry instead of the focal industry 
D) the ability of new firms to enter an industry 
E) the intensity of the rules of an organization 
A) the power that customers have over the firms 
B) the power that suppliers have over the firms 
C) the extent to which customers may use services from another industry instead of the focal industry 
D) the ability of new firms to enter an industry 
E) the intensity of the rules of an organization

Question 12

Which of the following is true about strategy?

Accepted Answer

A) Strategy is a general plan developed to reach short-term goals without any planning. 
B) Organizational strategy focuses only on the marketing and financial aspects of a business. 
C) Smaller organizations are more precise than large organizations in developing organizational strategy in order to meet their goals sooner. 
D) Strategy is actually the end result of strategic planning. 
E) Research and development are not a part of an organization's strategy. 
A) Strategy is a general plan developed to reach short-term goals without any planning. 
B) Organizational strategy focuses only on the marketing and financial aspects of a business. 
C) Smaller organizations are more precise than large organizations in developing organizational strategy in order to meet their goals sooner. 
D) Strategy is actually the end result of strategic planning. 
E) Research and development are not a part of an organization's strategy.

Question 13

A business strategy that is generally applied to star or question mark SBUs is ________.

Accepted Answer

A) stability 
B) focus 
C) retrenchment 
D) growth 
E) divestiture 
A) stability 
B) focus 
C) retrenchment 
D) growth 
E) divestiture

Question 14

According to Porter,________ refers to the power that customers have over the firms operating in an industry.

Accepted Answer

A) the threat of new entrants 
B) buyer power 
C) supplier power 
D) the threat of substitute products 
E) intensity of rivalry 
A) the threat of new entrants 
B) buyer power 
C) supplier power 
D) the threat of substitute products 
E) intensity of rivalry

Question 15

With the GE Multifactor Portfolio Matrix,the businesses falling in the cells that form a diagonal from lower left to upper right are ________.

Accepted Answer

A) the strongest and the ones the company should invest in and help grow 
B) the strongest and the ones the company should sell 
C) medium-strength and should be invested in only selectively 
D) the lowest in strength and serious candidates for divestiture 
E) the lowest in strength and serious candidates for retrenchment 
A) the strongest and the ones the company should invest in and help grow 
B) the strongest and the ones the company should sell 
C) medium-strength and should be invested in only selectively 
D) the lowest in strength and serious candidates for divestiture 
E) the lowest in strength and serious candidates for retrenchment

Question 16

The document that is written by management and describes and explains what the purpose for which the organization exists is the ________.

Accepted Answer

A) mission statement 
B) strategic plan 
C) operating plan 
D) annual budget 
E) vision statement 
A) mission statement 
B) strategic plan 
C) operating plan 
D) annual budget 
E) vision statement

Question 17

Which of the following is the ability to manage people during implementation?

Accepted Answer

A) allocating skill 
B) interacting skill 
C) monitoring skill 
D) organizing skill 
E) tactical skill 
A) allocating skill 
B) interacting skill 
C) monitoring skill 
D) organizing skill 
E) tactical skill

Question 18

________ is short-range planning that emphasizes the current operations of various parts of the organization.

Accepted Answer

A) Operational planning 
B) Intermediate planning 
C) Strategic planning 
D) Strategic control 
E) Tactical planning 
A) Operational planning 
B) Intermediate planning 
C) Strategic planning 
D) Strategic control 
E) Tactical planning

Question 19

SWOT is an acronym for Social Welfare Operating Test.

Accepted Answer

A) True 
 B)False

Question 20

________ strategy is generally applied to cash cows or stars that are beginning to lose market share.

Accepted Answer

A) Focus 
B) Retrenchment 
C) Stability 
D) Divestiture 
E) Growth 
A) Focus 
B) Retrenchment 
C) Stability 
D) Divestiture 
E) Growth

Exam 9: Strategic Planning: Strategies, Tactics, and Competitive Dynamics

The first step in the strategic management process is the establishment of organizational direction.

In general,the strategic management process is thought to consist of sequential and continuing steps.

Motivations,status symbols,and attitudes of the other country are all important aspects of the international component of the organization's operating environment.

________ is the process of ensuring that an organization possesses and benefits from the use of an appropriate organizational strategy.

Demographics are the statistical characteristics of a population.

Which strategy is an organization following when it focuses on making an organization more competitive by developing a product or products that customers perceive as being different from products offered by competitors?

Which level of the organization's environment exists inside the organization and normally has immediate and specific implications for managing the organization?

Which of the following is true about the GE Multifactor Portfolio Matrix?

Which of the following is true about a star SBU?

Competitor capability refers to a firm's ability to undertake an action.

According to Porter,threat of new entrants refers to ________.

Which of the following is true about strategy?

A business strategy that is generally applied to star or question mark SBUs is ________.

According to Porter,________ refers to the power that customers have over the firms operating in an industry.

With the GE Multifactor Portfolio Matrix,the businesses falling in the cells that form a diagonal from lower left to upper right are ________.

The document that is written by management and describes and explains what the purpose for which the organization exists is the ________.

Which of the following is the ability to manage people during implementation?

________ is short-range planning that emphasizes the current operations of various parts of the organization.

SWOT is an acronym for Social Welfare Operating Test.

________ strategy is generally applied to cash cows or stars that are beginning to lose market share.

Introducing Modern Management

Managing

Managers and Society

Management and Diversity

Managing in the Global Arena

Management and Entrepreneurship

Principles of Planning

Making Decisions

Fundamentals of Organizing

Responsibility, Authority, and Delegation

Human Resource Management

Organizational Change: Stress,Conflict and Virtuality

Influencing and Communication

Leadership

Motivation

Groups and Teams

Managing Organization Culture

Encouraging Creativity and Innovation

Controlling, Information, and Technology

Production and Control

Filters