Mgt 487 Chapter 1 Flashcards

Flashcard maker : Lily Taylor
1) Situation analysis involves the process of
A) analyzing the external environment only.
B) evaluating the internal aspects of the organization.
C) analyzing the current environment of the organization.
D) designing and choosing appropriate organizational strategies.
E) None of the answer choices is correct.
analyzing the current environment of the organization.
2) Theories developed about the efficiency and effectiveness of organizations were written by
A) Frederick Taylor.
B) Max Weber.
C) Chester Barnard.
D) All of the answer choices are correct.
E) None of the answer choices is correct.
Frederick Taylor, Max Weber, and Chester Barnard.
3) Examples of an organization’s functional units include all of the following except
A) competencies.
B) research and development.
C) marketing.
D) production.
E) All of the answer choices are correct.
competencies.
4) One strategic responsibility of managers and employees at other levels throughout the organization is
A) strategy formulation.
B) situation analysis.
C) strategy implementation.
D) developing the organization’s vision.
E) None of the answer choices is correct.
strategy implementation
5) Bases for understanding strategic management are all of the following except
A) single approaches to strategy development are superior to multiple approaches.
B) all organizations encounter changing situations.
C) managing strategically makes a difference in an organization’s performance.
D) All of the answer choices are correct.
E) None of the answer choices is correct.
single approaches to strategy development are superior to multiple approaches.
6) An example of a corporate strategy would involve
A) the decision to increase the price of the Hummer.
B) the decision to combine marketing functions in the Northeast and the Southeast.
C) the decision to spin Taco Bell off from Pepsi.
D) the decision to increase the advertising budget for Coca-Cola.
E) None of the answer choices is correct.
the decision to spin Taco Bell off from Pepsi.
7) The board of directors in an organization
A) is responsible for the implementation of the organization’s operating activities.
B) serves in the role of executive management.
C) plays a significant role in corporate governance.
D) is not an important part of the organization’s strategic development.
E) None of the answer choices is correct.
plays a significant role in corporate governance.
8) Mr. Smith has been summoned to the next No Leaks Plumbing’s, a publicly-held company, Board of Directors’ meeting to explain why his new delivery strategy has cost the company $10,000. This is an example of which of the following Board of Directors responsibilities?
A) Overseeing the company’s management
B) Governing the organization’s decisions and actions
C) Protecting the interests of the shareholders
D) All of the answer choices are correct.
E) None of the answer choices is correct.
All of the answer choices are correct.
9) An organization’s strategies should be designed so that they incorporate
A) opportunities, threats, resources, and capabilities.
B) opportunities and threats.
C) resources and capabilities.
D) only traditional values of past organizations.
E) None of the answer choices is correct.
opportunities, threats, resources, and capabilities.
10) The Sarbanes-Oxley Act of 2002 is a U.S. federal law designed to protect investors by improving the accuracy and reliability of
A) the corporate vision.
B) the corporate mission.
C) the balanced scorecard.
D) corporate disclosures.
E) All of the answer choices are correct.
corporate disclosures.
11) Mr. Smith has been losing money on the free delivery of orders more than $1,000 and is determining if there are other ways to outcompete his largest competitor. Mr. Smith is at which of the following steps in the strategic management process?
A) Strategy implementation
B) Strategy reformulation
C) Strategy formulation
D) Strategy evaluation
E) Situation analysis
Strategy evaluation
12) Which of the following is not a major element of the strategic management process?
A) Assigning administrative tasks
B) Undertaking a situation analysis
C) Implementing strategy
D) Evaluating strategy
E) Formulating strategy
Assigning administrative tasks
13) The ability to access information with great speed reflects the impact of
A) globalization.
B) the information revolution.
C) technological advances and breakthroughs.
D) All of the answer choices are correct.
E) None of the answer choices is correct.
the information revolution.
14) Instant interactivity reflects the environment of
A) vanishing distance.
B) constant change.
C) reduced need for physical assets.
D) compressed time.
E) All of the answer choices are correct.
compressed time.
15) Ethics is both a(n) ________ and ________ issue and should be part of the strategic management process
A) personal; organizational
B) inconsequential; organizational
C) organizational; contemporary
D) None of the answer choices is correct.
E) All of the answer choices are correct.
personal; organizational
16) Which of the following is a characteristic of a world-class organization?
A) A functional organizational structure
B) A bureaucratic organization structure
C) A strong marketing department
D) A strong customer focus
E) An authoritarian climate
A strong customer focus
17) An example of ethical behavior by an organization would be
A) a toy company that makes products that might be life threatening.
B) a company that develops a fund-raising campaign that would help its primary consumer group.
C) a chemical company dumping toxic waste into a lake.
D) a cigarette manufacturer that fails to warn potential consumers about the hazards of tobacco.
E) None of the answer choices is correct.
a company that develops a fund-raising campaign that would help its primary consumer group.
18) Purchasing and sending electronic greeting cards through a web site could represent a(n) ________ for a traditional greeting card company like Hallmark
A) stable vision
B) physical change
C) organizational change
D) All of the answer choices are correct.
E) None of the answer choices is correct.
organizational change
19) ________ is the determination of the broad uses to which organizational resources will be deployed and the resolution of conflicts among the myriad of participants in organizations
A) Objectives
B) Vision
C) Mission
D) Goals
E) Corporate governance
Corporate governance
20) Strategy concepts have been utilized outside of businesses in
A) chess.
B) the military.
C) games such as Battleship.
D) All of the answer choices are correct.
E) None of the answer choices is correct.
chess, the military, games such as Battleship.
21) The organization type which first utilized strategy is
A) the retail organization.
B) the entertainment organization.
C) the military organization.
D) All of the answer choices are correct.
E) None of the answer choices is correct.
the military organization.
22) ________ and ________ are critical to strategic success in the new business environment
A) Formulation; innovation
B) Innovation; creativity
C) Turbulence; stagnation
D) All of the answer choices are correct.
E) None of the answer choices is correct
Innovation; creativity
23) As you are studying Picture Perfect Painting’s context, it seems clear that the company will have to prepare itself for continual turbulence and change. Which of the following best describes the driving forces for change that could affect the company’s future?
A) Vanishing distance and compressed time
B) Increased vulnerability
C) Reduced need for physical assets
D) All of the answer choices are correct.
E) None of the answer choices is correct.
Vanishing distance and compressed time
24) Which of the following is not a characteristic of strategic management that makes it different from other types of management?
A) It is interdisciplinary.
B) It concerns the present direction of the organization.
C) It has an external focus.
D) It has an internal focus.
E) None of the answer choices is correct
It concerns the present direction of the organization.
25) ________ is defined as a structured transition in what an organization does and how it does it
A) Organizational change
B) Strategic management
C) Globalization
D) Strategy
E) Technology
Organizational change
26) Functional strategies are the goal-directed plans and actions of the organization’s various functional departments
FALSE
27) Preparation of strategic plans are a typical board responsibility
FALSE
28) Companies that use strategic management tend to have higher levels of performance.
TRUE
29) Strategy involves only the examination of an organization’s goals.
FALSE
30) Strategy should be developed from a number of approaches rather than a single approach.
TRUE
31) Business strategies are concerned with the broad and more long-term choices of “what business(es) are we in or do we want to be in, and what do we want to do with these businesses?”
FALSE
32) Significant changes in legal mandates, investor activism, and corporate strategy have changed the roles of many boards in the strategic management process.
TRUE
33) The fields of economics and organization studies provided the earliest academic bases for strategic management.
TRUE
34) An organization’s strategy is its goal-directed decisions and actions in which its capabilities and resources are matched with the opportunities and threats in its environment.
TRUE
35) Strategy implementation is the process of evaluating how the strategy has been implemented, as well as the outcomes of the strategy.
FALSE
36) The Surprise Principle of War calls for striking at the enemy at a time or a place that’s unexpected.
TRUE
37) An organization’s simple action can be considered a strategy.
FALSE
38) In the industrial organization (I/O) view, the focus of strategic analysis is on the internal situation of the organization.
FALSE
39) Ethics involves the principles that define right and wrong decisions and behavior in a work setting
TRUE
40) The industrial organization (I/O) view proposes that an organization’s competitive advantage is only temporary and can be gained only by peppering the competitive marketplace with rapid radical surprises.
FALSE
41) An organizational vision is a broad comprehensive picture of what a leader wants an organization to become.
TRUE
42) Factors critical to success in the new business environment are the ability to embrace change, creativity and innovation capabilities, and being a world-class organization.
TRUE
43) The resource-based view focuses on the structural forces within an industry, the firm’s competitive environment, and how these influence competitive advantage.
TRUE
44) A situation analysis is the first step in the sequential strategic management process
TRUE
45) Strategy formulation is the responsibility of managers and employees at other levels throughout the organization.
FALSE
46) The CEO’s typical role is that of the chief strategist.
TRUE
47) Milton Friedman is an advocate of a contemporary view of social responsibility.
FALSE
48) Technology has significantly impacted how a creative idea is turned into a product or process that can be used or sold.
TRUE
49) A company’s board of directors’ legal obligation is to represent the shareholders and protect their interests
TRUE
50) Globalization is one of the driving forces in the twenty-first century business environment
TRUE

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