Mgt 490 Exam – Flashcards
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According to the strategic management model, external analysis should occur prior to internal analysis.
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T
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The gap between intended and realized strategies usually results from middle management ineffectiveness.
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F
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Most strategic management scholars have endorsed an "artistic" perspective on strategy formulation.
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F
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The notion of strategy assumes a. that managers have time to develop formal strategic plans. b. that managers understand the source of the organization's competitive advantage. c. that experts in strategic planning are employed by the organization. d. All of the above.
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B
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Which of the following is not one of the steps in the strategic management process? a. execute the strategy b. control the strategy as necessary c. conduct an internal analysis d. All of the above are steps in the strategic management process.
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D
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Which of the following is not a factor usually associated with an effective strategy? a. Top managers rely on the assistance of outside strategic planners for creativity and analysis. b. Plans for putting the strategy into action are designed with specificity before it is implemented. c. Strategic managers understand how the organization's resources translate into strengths and weaknesses. d. Possible future changes in the proposed strategy are evaluated before the strategy is adopted.
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A
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A gap between the intended and realized strategies a. rarely exists. b. exists only when management does a poor job of research. c. suggests middle management ineffectiveness. d. None of the above.
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D
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Which of the following is consistent with the artistic perspective on strategy? a. The lack of environmental predictability and the fast pace of change render elaborate strategy planning as suspect at best. b. Strategists should incorporate large doses of creativity and intuition in order to design a comprehensive strategy for the firm. c. Strategic planning exercises may be time poorly spent. d. All of the above are consistent with the artistic perspective.
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D
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Which of the following perspectives assumes that the firm's unique combination of strategic resources is the primary influence on firm performance? a. industrial organization theory c. contingency theory b. resource-based theory d. None of the above
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B
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Which of the following distinctions is not associated with strategic decision-making? a. It represents a systematic, comprehensive analysis. b. It involves choices. c. It is both short-term and long-term oriented. d. It is distinctively opportunistic.
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C
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The primary industry includes a firm's key business units, whereas the secondary industry includes the firm's less significant business units.
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F
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The objective of Porter's five forces model is to a. assess firm profitability. b. assess the potential for profits within an industry. c. emphasize the intensity of rivalry within an industry. d. None of the above.
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B
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A young industry that is beginning to form is in the a. growth stage. c. maturity stage. b. shakeout stage. d. decline stage.
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A
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Which of the following is not one of Porter's five industry forces? a. bargaining power of buyers b. threat of substitute products c. intensity of rivalry among incumbent firms d. None of the above.
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D
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Firms are under considerable pressure to satisfy customers when switching costs a. are high. c. are the same as in substitute industries. b. are low. d. None of the above.
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B
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The threat of new entrants to an industry is a function of a. the existence of economies of scale. c. government policy or the lack thereof. b. capital requirements in the industry. d. All of the above.
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D
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Switching costs are incurred by a. the buyer. c. both the buyer and the seller. b. the seller. d. neither the buyer nor the seller.
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A
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Which of the following does not increase the bargaining power of buyers? a. Buyers face few switching costs. b. Buyers earn low profits. c. Buyers have incomplete information. d. Buyers have the ability to engage in backward integration.
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C
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Which of the following does not increase the bargaining power of suppliers? a. a lack of substitute products b. differentiation among the suppliers' products c. domination of the supplying industry by a few competitors d. All of the above increase the bargaining power of suppliers.
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D
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Which of the following is not a limitation of Porter's five forces model? a. It is based on the assumptions of industrial organization theory. b. It does not allow for the role of partnerships. c. It does not account for the fact that a large firm may be able to influence industry structure. d. It assumes that firm resources explain firm performance.
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D
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Macroenvironmental analysis includes an examination of industry forces.
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F
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Macroenvironmental forces are assessed in terms of their direct effects on a particular firm.
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F
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Leaders in an industry always prefer less government regulation.
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F
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Societal values, trends, traditional, and religious practices are examples of social forces.
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T
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Social traditions can define practices that influence business organizations and last for centuries.
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T
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Which of the following is not an element within the macroenvironment? a. industry forces c. economic forces b. social forces d. political-legal forces
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A
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Macroenvironmental analysis considers effects of various forces on a. firms outside the industry. c. the industry as a whole. b. firms that might enter the industry. d. All of the above.
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C
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Factors such as the growth or decline in GDP and changes in exchange rates are classified as a. international forces. c. social forces. b. economic forces. d. None of the above.
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B
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High inflation rates a. hurt all industries, but some more than others. b. hurt all industries equally. c. may actually help some industries. d. None of the above.
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C
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Societal values, trends, traditional, and religious practices are examples of a. consumer forces. c. social forces. b. industry forces. d. None of the above.
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C
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Scientific improvements and innovations are examples of a. social forces. c. technological forces. b. engineering credibility. d. None of the above.
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C
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Top managers should be concerned with both the shareholders' primary goal of profits and the goals of the other stakeholders.
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T
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Corporate ethics refers to the expectation that business firms should serve both society and the financial interests of the shareholders.
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F
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A situation in which a firm's managers fail to act in the best interest of the shareholders is known as the agency problem.
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T
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Individuals or groups who are affected by or can influence an organization's operations are called a. shareholders. c. organizational constituencies. b. stakeholders. d. None of the above.
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B
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Specific, quantifiable versions of goals constitute a. the organization's programs. c. the organization's objectives. b. the mission. d. None of the above.
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C
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Which of the following might represent the goals of customers? a. The company should provide high quality products and services at the most reasonable prices possible. b. The company should maintain a healthy financial posture and a policy of on-time payment of debt c. The company should produce a higher-than-average return on equity. d. The company should provide goods and services with minimum environmental costs, increase employment opportunities, and contributing to social and charitable causes.
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A
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Social responsibility and managerial ethics a. are synonymous. c. are relative easy to assess. b. are related, but different concepts. d. None of the above.
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B
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Which view of ethics suggests that decisions should be based on existing norms of behavior, including cultural, community, or industry factors? a. rights view c. religious view b. cultural view d. None of the above.
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D
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Firms often seek to reduce risk by operating in a single industry.
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F
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Transforming the corporation into a leaner, more effective firm is known as turnaround.
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T
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Which of the following options is commonly viewed as risk averse? a. operate in unrelated industries c. operate in a single industry b. operate in related industries d. None of the above.
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A
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Increasing revenues, production capacity, and the work force is consistent with a. an external growth strategy. c. horizontal related integration. b. an internal growth strategy. d. horizontal related diversification.
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B
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Synergy may occur when there are a. similarities in product or service lines. b. relationships in the distribution channels. c. complimentary managerial or technical expertise across business units. d. All of the above.
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D
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When a firm expands downstream, it is engaging in a process called a. forward integration. c. backward integration. b. conglomerate diversification. d. related diversification.
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A
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Which of the following is not an advantage of a strategic alliance? a. It minimizes increases in the organizational bureaucracy. b. It allows a firm to share in the benefits of the alliance without bearing all of the costs. c. It allows a firm to guarantee a return proportionate to the contributions it makes to the alliance. d. All of the above are advantages of strategic alliances.
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C
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Selling or "spinning off" one or more of the firm's business units is called a. corporate restructuring. c.divestment. b. turnaround. d. retrenchment.
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C
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According to the BCG matrix, market share should be reduced systematically with a.cash cows. c.dogs. b. question marks. d. None of the above.
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D
