question

Don't come out of the blue; they are derived from the firm's vision, mission and objectives.

answer

alternative strategies

question

The first stage of the strategy-formulation framework.

answer

input stage

question

The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix, the Strategic Position and Action Evaluation (SPACE) Matrix, the Boston Consulting Group (BCG) Matrix, the Internal-External (IE) Matrix and the Grand Strategy Matrix are included in _________ of the strategy-formulation framework.

answer

stage two

question

When completing the ___________ of the strategy-formulation framework, the SWOT Matrix, the SPACE Matrix, the BCG Matrix, IE Matrix, and Grand Strategy Matrix can be completed in any order.

answer

matching stage

question

Strategies are based on using a firm's internal strengths to take advantage of external opportunities and threats.

answer

strengths-opportunities

question

One of the steps of the SWOT Matrix

answer

list the firm's key external opportunities.

question

The most important determinants of an organization's overall strategic position are considered to be the two internal dimensions,______________ and _________________ and the two external dimensions, ____________________.

answer

financial position (FP) competitive position (CP), industry position (IP) and stability position (SP)

question

Classifications of market penetration

answer

conservative, aggressive, or competitive strategy

question

A strategy in a SPACE Matrix most often include product development, market development, market penetration and related diversification.

answer

conservative strategies

question

A strategy a firm should pursue if the coordinates of a SPACE directional vector are (+2,+3).

answer

aggresive strategies

question

Given on the x-axis of the BCG Matrix.

answer

relative market share position

question

The size of the circle in a BCG Matrix that corresponds to the generated by that business unit.

answer

proportion of corporate revenue

question

Stars, Question Marks, Cash Cows and Dogs are the four quadrants exhibited by this.

answer

SPACE matrix

question

The major overall benefit of the _____________ is that it draws attention to the cash flow, investment characteristics and needs of an organization's various divisions.

answer

BCG matrix

question

The ____________ does not reflect whether or not various divisions or their industries are growing over time.

answer

BCG matrix

question

Having no temporal qualities, the is a snapshot of an organization at a given point in time.

answer

BCG matrix

question

It requires more information about the divisions than the BCG Matrix.

answer

IE matrix

question

It can be divided into three major regions that have different strategy implications: grow and build, hold and maintain, and harvest or divest.

answer

IE matrix

question

When a Quadrant I firm is too heavily committed to a single product, then related diversification may reduce the risks associated with a narrow product line.

answer

grand strategy matrix

question

To objectively evaluate feasible alternative strategies identified in Stage 2, theuses input information derived from Stage 1.

answer

QSPM

question

Defined as the product of multiplying the weights by the Attractiveness Scores in each row. Are computed in the fifth step of the QSPM.

answer

total Attractiveness Scores

question

A positive feature is that it requires intuitive judgments and educated assumptions.

answer

QSPM

question

May be highly effective and productive if a supportive culture exists.

answer

strategy changes

question

Minimize their own political exposure on issues that are highly controversial and in circumstances where opposition from major power centers is likely.

answer

successful strategists

question

Shifting focus from specific issues to more general ones may increase strategists' options for gaining ________________.

answer

organizational commitment

question

Today boards of directors are composed mostly of ____________ who are becoming more involved in an organization's strategic management.

answer

outsiders

question

Strategy analysis and choice largely involves making ________ decisions based on ________ information.

answer

subjective; objective

question

Which stage of the strategy-formulation framework involves the Quantitative Strategic Planning Matrix?

answer

stage 3

question

Each of the nine techniques included in the strategy formulation framework rely on the use of

answer

intuition and analysis.

question

Which stage of the strategy-formulation framework contains the Internal-Factor Evaluation Matrix?

answer

input stage

question

Which section of the SWOT Matrix involves matching internal strengths with external opportunities?

answer

the SO cell

question

Which strategies use a firm's strengths to avoid or reduce the impact of external threats?

answer

ST

question

How many cells are in a SWOT Matrix?

answer

Nine

question

Which of the following is a limitation associated with a SWOT Matrix?

answer

the matrix has no temporal qualities.

question

What type of strategy would divestiture be classified as?

answer

defensive

question

What are the two external dimensions of the SPACE Matrix?

answer

stability position and industry position

question

What type of strategies would you recommend when a firm's SPACE Matrix directional vector has the coordinates (-2, +3)?

answer

conservative

question

The BCG Matrix is designed specifically to enhance which type of firm's efforts to formulate strategies?

answer

companies with more than one division

question

How would a division with a low relative market share position in a high growth industry be described?

answer

question Mark

question

A division with a high relative market share position in a low-growth industry can be described as a

answer

cash Cow.

question

The managing of forces during the action, whereas Strategy formulation is the positioning of forces before the action.

answer

strategy implementation

question

Unlike strategy formulation, what varies considerably among different types and sizes of organizations.

answer

strategy implementation

question

What is as important as vertical consistency in developing annual objectives.

answer

Horizontal consistency

question

Clarifies what can and cannot be done in pursuit of an organization's objectives.

answer

policies

question

What are the classifications for various approaches of managing and resolving conflict.

answer

avoidance, diffusion and confrontation

question

Holding a meeting at which conflicting parties present their views and work through their differences is part of what managing conflict.

answer

confrontation technique

question

Tasks and activities are grouped together by business function in a what?

answer

functional organizational structure

question

It is possible that competition between divisions may become so intense that it is dysfunctional and leads to limited sharing of ideas and resources for the common good of the firm.

answer

divisional structure

question

The most complex of all organizational structures is what?

answer

a matrix structure

question

When developing an _______________, it is not wise to recommend a dual title for just one executive.

answer

organizational chart

question

In terms of number of employees, ______________ usually involves decreasing the size of the firm.

answer

restructuring

question

The focus of restructuring is _____________.

answer

cost reduction

question

On average, CEOs at ___________ companies are paid less than CEOs at American or European companies.

answer

Japanese

question

Convincing individuals that the change is to their personal advantage.

answer

rational change strategy

question

_______________requires coordination among a few individuals, but strategy implementation requires coordination among many.

answer

strategy formulation

question

Type of communication is essential for developing bottom-up support.

answer

top-down flow

question

Distorting the records can be a result of overemphasis on achieving objectives.

answer

undesirable conduct

question

_______________ according to the priorities indicated by approved objectives is detrimental to the strategic-management process.

answer

not allocating resources

question

Well-run organizations are not able to completely avoid ____________.

answer

conflict

question

Exchanging members of conflicting parties so each can gain an appreciation of the other's point of view exemplifies a _____________.

answer

confrontation approach

question

This leads to short-term and narrow thinking.

answer

a functional structure

question

This is an organization can effectively cater to the requirements of clearly defined customer groups.

answer

divisional structure by customer

question

With the ______________ it is common for functional resources to not be duplicated.

answer

matrix structure

question

In developing an _________________ avoid having a particular person reporting to more than one person above them in the chain of command.

answer

organizational chart,

question

This does not usually affect the organizational structure or chart, nor does it imply job loss or employee layoffs.

answer

reengineering

question

Cornerstones of reengineering

answer

decentralization, reciprocal interdependence and information sharing.

question

People's anxieties are raised with the thought of change because they fear __________________.

answer

economic loss, inconvenience, uncertainty and a break in normal social patterns

question

When the rational type change strategy is successful, ______________ can be relatively easy.

answer

strategy implementation

question

Strategists should strive to create ____________________.

answer

a work environment in which change is recognized as necessary and beneficial so that individuals can more easily adapt to change

question

This plagues a force change strategy.

answer

low commitment and high resistance

question

Organizational change today should be viewed as a ________________.

answer

continuous project

question

Changing a strategy to fit an existing culture is not as effective ______________________.

answer

as changing a firm's culture to fit a new strategy

question

Strategists should strive to _________________upon aspects of an existing culture that are support proposed strategies.

answer

preserve, emphasize, and build

question

Ways to alter an organization's culture.

answer

recruitment, promotion, and mentoring

question

When attachments to a culture are severed in an organization's attempt to change direction, employees and managers often experience deep feelings of _____.

answer

grief

question

Production processes typically constitute more than ______________.

answer

70 percent of a firm's total assets

question

Just In Time (JIT) significantly reduces the costs of ________________.

answer

implementing strategies

question

Besides reducing worker alienation and stimulating productivity, ESOPs allow firms other benefits, such as _____________.

answer

substantial tax savings

question

ESOPs do not work well in firms with _______________.

answer

fluctuating payrolls and profits

question

Being long-term in nature, strategy implementation affects ___________________.

answer

top, middle managers and lower-level employees

question

Given that much information on individuals is available _________, the extent to which companies can track individuals' movements on the Internet is of increasing concern to consumers today.

answer

online

question

The marketing mix component variables are _________.

answer

product, place, promotion, and price

question

The most common bases for segmenting markets.

answer

geographic and demographic

question

Generally simpler and easier than segmenting industrial markets.

answer

segmenting consumer markets

question

The next step after segmenting markets so a firm can target particular customer groups is _______________.

answer

to find out what customer groups want and expect

question

Involves examining three or more criteria simultaneously in a product-positioning analysis.

answer

multidimensional scaling

question

It is never okay for firms to create expectations that exceed the ___________________if it will attract customers.

answer

service the firm can or will offer

question

Besides net profit from operations and the sale of assets, two basic sources of funds for an ongoing enterprise.

answer

debt and equity

question

Additional capital is often required for _________________.

answer

successful strategy implementation

question

In times of depressed stock prices, stock issuances debt may prove to be the most suitable alternative for.

answer

obtaining capital

question

When performing __________________, the income statement should be prepared before the balance sheet .

answer

projected financial analysis

question

The cash account is used as the plug figure in projected ____________________.

answer

balance sheets

question

A document that details how funds will be obtained and spent for a specified period of time.

answer

financial budget

question

The most common type of financial budget .

answer

annual budget

question

As a balance sheet entry, _______________represents when a firms pays more than the book value to purchase another firm.

answer

goodwill

question

It is generally not recommended for companies with less than _______________ to go public.

answer

$10 million in sales

question

Going public means selling off a percentage of your company to other in order to ______________.

answer

raise capital

question

According to research, the most successful new product companies use a research and development strategy that ties internal strengths to external opportunities and is linked with _________________.

answer

corporate objectives

question

A major effort in _________ may be very risky if technology is changing rapidly and the market is growing slowly.

answer

research & development

question

A current trend in R management involves the _________________ whereby firms, even major competitors, are joining forces to develop new products.

answer

lifting of the veil of secrecy

question

With ________________, in some cases it is possible to do away with the workplace by allowing employees to work at home or anywhere, anytime.

answer

information technology

question

What level of management is directly affected by strategy implementation?

answer

Plant managers Sales managers Project managers Division managers

question

Which two variables rank as marketing's most important contributions to strategic management?

answer

market segmentation and product positioning.

question

Why is market segmentation an important variable in strategy implementation?

answer

it allows a small firm to compete successfully with a large firm. It allows a firm to operate with limited resources. Mass production, mass distribution and mass advertising are not always required. Market segmentation decisions directly affect marketing mix variables.

question

Why is market segmentation an important variable in the strategy-implementation process?

answer

it directly affects marketing mix variables.

question

Matching of which factors would allow factories to produce desirable levels without extra shifts, overtime or subcontracting?

answer

iupply and demand

question

Which variable would be considered part of the "place" element of the marketing mix?

answer

sales territory

question

Which is not a required step in product positioning?

answer

serve two segments with the same strategy

question

Multidimensional scaling is used to determine

answer

product positioning.

question

Which of these is not a rule of thumb when using product positioning as a strategy-implementation tool?

answer

try to serve more than one segment with the same strategy

question

In the low earnings period, too much ________ in the capital structure of an organization can endanger stockholders' return and jeopardize company survival.

answer

debt

question

What is the most widely used technique for determining the best combination of debt and stock?

answer

earnings per share/earnings before interest and tax analysis

question

What becomes a more attractive financing technique when cost of capital is high?

answer

stock issuance

question

A benefit of using projected balance sheets and income statements.

answer

an organization can compute projected financial ratios under various scenarios.

question

What is a central strategy-implementation technique that allows an organization to examine the expected results of various actions and approaches?

answer

projected financial statement analysis

question

In preparing projected statements, to project cost of goods sold and the expense items in the income statement, which of these methods is recommended?

answer

percentage-of-sales method

question

Retained earnings is obtained by subtracting

answer

any dividends to be paid for that year from net income.

question

Which of these is the most common type of budgeting time frame?

answer

annual

question

What is the most common type of financial budget?

answer

cash

question

_________________ is important to effective strategy evaluation.

answer

adequate, timely feedback

question

According to Richard Rumelt, _______________ are mostly based on a firm's external assessment.

answer

consonance and advantage

question

_______________is becoming increasingly difficult with the passage of time, given technological advances.

answer

strategy evaluation

question

Competitive advantages normally are the result of superiority in one of three areas: ______________.

answer

resources, skills, or position

question

Strategy evaluation should be performed on a _________basis rather than at the end of specified periods of time.

answer

continuous

question

Strengths, weaknesses, opportunities and threats should _______________ for change because it is not really a question of whether these factors will change, but rather when they will change and in what ways.

answer

continually be monitored

question

_______________ are always used to evaluate strategies.

answer

specific financial ratios

question

Most quantitative evaluation criteria are geared to _______________ rather than long-term.

answer

annual objectives

question

_______________ in strategy evaluation is necessary to keep an organization on track toward achieving stated objectives.

answer

corrective action

question

According to research, _________________ is one of the best ways to overcome individuals' resistance to change.

answer

participation in strategy-evaluation activities

question

Each year, Fortune publishes ________________ on both the United States and other countries.

answer

strategy evaluation research

question

Timely approximate information is generally more desirable as a basis for strategy evaluation than ________________ .

answer

accurate information that does not depict the present

question

There is no __________________ system for all organizations.

answer

one ideal strategy-evaluation

question

Strategies cannot and should not try to cover all bases by planning ______________.

answer

for all possible contingencies

question

Identifying both ____________________that could possibly derail the strategy or strategies is the first step of effective contingency planning.

answer

beneficial and unfavorable events

question

Too much emphasis on _______________ may be expensive and counterproductive.

answer

evaluating strategies

question

According to Rumelt, ___________________ are largely based on a firm's internal assessment.

answer

consistency and feasibility

question

The decreasing time span for which planning can be done with any degree of certainty is ______________________ .

answer

a reason strategy evaluation is more difficult today

question

Regardless of the size of the organization, a certain amount of ______________________ at all levels is essential to effective strategy evaluation.

answer

management by wandering around

question

Changes in the organization's ____________________ should all be the focus of a revised IFE matrix in strategy evaluation.

answer

management, marketing, finance/accounting, production/operations, R and MIS strengths and weaknesses

question

When measuring organizational performance, you need to compare _______________.

answer

expected results to actual results

question

Measuring organizational performance includes comparing ___________________________.

answer

expected results to actual results, investigating deviations from plans, evaluating individual performance and examining progress being made toward meeting stated objectives

question

Measuring organizational performance includes comparing expect results _____________________.

answer

to actual results, investigating deviations from plans, evaluating individual performance, and examining progress being made toward meeting stated objectives

question

Alvin Toffler argues that environments are becoming so dynamic and complex that they threaten people and organizations with future shock, in his thought-provoking books entitled _______________________.

answer

future shock and the third wave

question

The basic form of a __________________ will vary for different organizations or industries.

answer

balanced scorecard

question

The most admired company in the world in 2009 was __________.

answer

Nike

question

The test of an effective evaluation system is ___________________.

answer

its usefulness not its complexity

question

________________ are alternative plans that can be put into effect if certain key events do not occur as expected.

answer

contingency plans

question

______________ should be as simple as possible.

answer

contingency plans

question

A frequently used tool in strategy evaluation is the _______.

answer

audit

question

The accounting switch from _______________ in the U.S. is going to cost businesses millions of dollars in fees and upgraded software systems and training.

answer

GAAP to IFRS

question

GAAP standards comprise 25,000 pages, whereas _____ standards comprise 5,000 pages.

answer

IFRS

question

Which of these is a basic activity of strategy evaluation?

answer

reviewing the underlying internal and external factors that represent the bases of current strategies. Measuring organizational performance. Taking corrective actions.

question

All of these are Richard Rumelt's criteria to evaluate a strategy except:

answer

advantage. consistency. feasibility. (distinctiveness) consonance.

question

Which of the following is not a reason for the increasing difficulty of evaluating strategies?

answer

(Product life cycles are longer) Domestic and world economies are less stable. Product development cycles are shorter. Technological advancement is more rapid. Change is occurring more frequently.

question

Competitive advantage normally is the result of superiority in resources, skills and

answer

position

question

If success for one organizational department means failure for another department, then strategies may be

answer

inconsistent

question

Corrective actions are almost always _______ except when external and internal factors have not significantly changed and the firm is progressing satisfactorily toward achieving stated objectives.

answer

needed

question

A revised ________ should indicate how effective a firm's strategies have been in response to key opportunities and threats.

answer

EFE matrix

question

What is the basis for quantitative financial evaluation?

answer

financial ratios

question

Who asserts that organizations have no obligations to do any more for society than is legally required?

answer

Milton Friedman

question

Who proclaim that organizations have tremendous social obligaitons?

answer

Ralph Nader

question

What is the family of standard concerns the extent to which a firm minimized harmful effects on the environment caused by its activities and continually monitors and improves its own environmental performance

answer

ISO 14000

question

What is a set of standards adopted by thousands of firms worldwide to certify to their constitutencies that they are conducting business in an environmentally friendly manner?

answer

ISO 14001

question

The underpinnings of hinge on managers gaining an understanding of competitors, markets, prices, suppliers, distributors, governments, creditors, shareholders, and customers worldwide

answer

strategic management

question

The price and quality of a firm's products and services must be competitive on a, not just on a local basis

answer

worldwide basis

question

Organizations that conduct business operations across national borders

answer

multinational corporations

question

Risks of Multinational Organizations

answer

expropriation of assets currency losses through exchange rate fluctuations social/political disturbances import/export restrictions tariffs trade barriers

question

process of doing business worldwide, so strategic decisions are made based on global profitability of the firm rather than just domestic considerations

answer

globalization

question

Global strategy

answer

includes designing, producing, and marketing products with global needs in mind, instead of considering individual countries alone integrates actions against competitors into a worldwide plan

question

Many foreigners place more worth on ___________.

answer

relationships

question

Israelis are accustomed to fast-paced meetings and have little patience for __________ American and small talk.

answer

informality

question

Mexicans do not feel compelled to _____________ that are not associated with a particular person in authority they work for or know well.

answer

follow the rules

question

Mexicans are very so business titles and rank are important.

answer

status conscious

question

Group loyalty and consensus

answer

Wa

question

Germans

answer

strict agendas

question

Egypt

answer

business moves at a slow pace

question

Indians

answer

punctuality is important; don't trust the legal systems, your word is good

question

Japanese

answer

personal relationships

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