Archive for October 2017

In the general environment, many relationships exist among the various elements. General environmental trends can have positive and negative impacts on various industries. For example, the aging population might have a ______ impact on the health care industry and a ______ impact on the baby product industry. These are called _____________ impacts.

In the general environment, many relationships exist among the various elements. General environmental trends can have positive and negative impacts on various industries. For example, the aging population might have a ______ impact on the health care industry and a ______ impact on the baby product industry. These are called _____________ impacts. 




A. negative; positive; demographic

B. positive; negative; technological

C. negative; positive; sociocultural

D. positive; negative; demographic



Answer: B

Interest-rate increases have a __________ impact on the residential home construction industry and a __________ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items.

Interest-rate increases have a __________ impact on the residential home construction industry and a __________ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items. 




A. positive; negligible

B. negative; negligible

C. negative; positive

D. positive; negative




Answer: B

Emerging sociocultural changes in the environment include ____________.

Emerging sociocultural changes in the environment include ____________. 




A. changes in the ethnic composition

B. the increasing educational attainment of women in the past decade

C. progressively less disposable income by consumers

D. changes in the geographic distribution of the population



Answer: B

SWOT analysis is a framework for analyzing the internal and external environment of a company. It consists of strengths, weaknesses, opportunities, and threats. According to a SWOT analysis, which of the following is not an aspect that the strategy of the firm must follow?

SWOT analysis is a framework for analyzing the internal and external environment of a company. It consists of strengths, weaknesses, opportunities, and threats. According to a SWOT analysis, which of the following is not an aspect that the strategy of the firm must follow? 




A. build on its weaknesses

B. remedy the weaknesses or work around them

C. take advantage of the opportunities presented by the environment

D. protect the firm from the threats





Answer: A

PPG Industries, the Pittsburgh-based manufacturer of paints, coatings, optical products, specialty materials, chemicals, glass, and fiber glass suffered serious failures in 1986 and 1987 when it attempted to diversify its offers. It used a technique to help it identify possible future strategies. What was it?

PPG Industries, the Pittsburgh-based manufacturer of paints, coatings, optical products, specialty materials, chemicals, glass, and fiber glass suffered serious failures in 1986 and 1987 when it attempted to diversify its offers. It used a technique to help it identify possible future strategies. What was it? 




A. crowdsourcing

B. scenario analysis

C. competitive intelligence

D. monitoring



Answer: B

A danger of forecasting discussed in the text is that _____________.

A danger of forecasting discussed in the text is that _____________. 




A. in most cases, the expense of collecting the necessary data exceeds the benefit

B. the retrospective nature of forecasting provides little information about the future

C. managers may view uncertainty as black and white while ignoring important gray areas

D. it can create legal problems for the firm if regulators discover the company is making forecasts




Answer: C

Gathering competitive intelligence ___________.

Gathering competitive intelligence ___________. 




A. is good business practice

B. is illegal

C. is considered unethical

D. minimizes the need to obtain information in the public domain



Answer: A

Which of the following is not an example of corporate competitive analysis?

Which of the following is not an example of corporate competitive analysis? 




A. Banks tracking home loans

B. Airlines changing hundreds of fares daily in response to competitor tactics

C. Car manufacturers offering sales incentives based on rival offers

D. Consumers comparing product offers online


Answer: D

Taking advantage of the increasing penetration of personal computers in American homes, the Mayo Clinic transformed itself as a provider of health-related knowledge and expertise. It took advantage of the ______ trends of the _______ in the prices of PCs and the ____________ presence of PCs in virtually every home in the U.S.

Taking advantage of the increasing penetration of personal computers in American homes, the Mayo Clinic transformed itself as a provider of health-related knowledge and expertise. It took advantage of the ______ trends of the _______ in the prices of PCs and the ____________ presence of PCs in virtually every home in the U.S. 




A. soft; increase; increasing

B. soft; decrease; decreasing

C. hard; decrease; decreasing

D. hard; decrease; increasing




Answer: D

Taking advantage of the increasing penetration of personal computers in American homes, the Mayo Clinic transformed itself as a provider of health-related knowledge and expertise. It took advantage of the ______ trends of the _______ in the prices of PCs and the ____________ presence of PCs in virtually every home in the U.S.

Taking advantage of the increasing penetration of personal computers in American homes, the Mayo Clinic transformed itself as a provider of health-related knowledge and expertise. It took advantage of the ______ trends of the _______ in the prices of PCs and the ____________ presence of PCs in virtually every home in the U.S. 




A. soft; increase; increasing

B. soft; decrease; decreasing

C. hard; decrease; decreasing

D. hard; decrease; increasing




Answer: D

Two of the key inputs to developing forecasts discussed in the text are:

Two of the key inputs to developing forecasts discussed in the text are: 




A. environmental scanning and stakeholder identification.

B. environmental scanning and competitor intelligence.

C. assessing internal strengths and environmental scanning.

D. environmental scanning and a SWOT analysis.




Answer: B

In large organizations, conflicts can arise between functional areas. In order to resolve these conflicts, strategic objectives:

In large organizations, conflicts can arise between functional areas. In order to resolve these conflicts, strategic objectives: 




A. put financial objectives above human considerations

B. align departments toward departmental goals

C. help resolve conflicts through their common purpose

D. cause debate and increase conflict




Answer: C

In contrast to the vision of an organization, its mission should:

In contrast to the vision of an organization, its mission should: 





A. be shorter in length

B. encompass both the purpose of the company as well as the basis of competition

C. encompass all the major rules and regulations of the corporate work force

D. be less detailed.



Answer: B

WellPoint Health Network states: WellPoint will redefine our industry: through a new generation of consumer-friendly products that put individuals back in control of their future. This is an example of a:

WellPoint Health Network states: WellPoint will redefine our industry: through a new generation of consumer-friendly products that put individuals back in control of their future. This is an example of a: 




A. strategic objective

B. vision statement

C. vague statement of direction

D. line manager's individual goal




Answer: B

Effective vision statements include:

Effective vision statements include: 




A. all strategic directions of the organization

B. a brief statement of the company's direction

C. strategic posturing and future objectives

D. financial objectives and projected figures



Answer: B

The hierarchy of organizational goals is in this order (least specific to most specific):

The hierarchy of organizational goals is in this order (least specific to most specific): 




A. vision statements, strategic objectives, mission statements

B. mission statements, strategic objectives, vision statements

C. vision statements, mission statements, strategic objectives

D. mission statements, vision statements, strategic objectives




Answer: C

Peter Senge, of MIT, recognized three types of leaders. __________ are individuals that, although having little positional power and formal authority, generate their power through the conviction and clarity of their ideas.

Peter Senge, of MIT, recognized three types of leaders. __________ are individuals that, although having little positional power and formal authority, generate their power through the conviction and clarity of their ideas. 




A. Local line leaders

B. Executive leaders

C. Internal networkers

D. Shop floor leaders




Answer: C

Many organizations have a large number of functional areas with very diverse and sometimes competing interests. Such organizations will be most effective if:

Many organizations have a large number of functional areas with very diverse and sometimes competing interests. Such organizations will be most effective if: 




A. each functional area focuses on achieving their own goals

B. functional areas work together to attain overall goals

C. goals are defined at the bottom and implemented at the top

D. management and employees have separate goals



Answer: B

Firms must be aware of goals other than short-term profit maximization. One area of concern should be social responsibility which is:

Firms must be aware of goals other than short-term profit maximization. One area of concern should be social responsibility which is: 




A. the expectation that business will strive to improve the overall welfare of society

B. the idea that organizations are solely responsible to local citizens

C. the fact that court costs could impact the financial bottom line

D. the idea that businesses are responsible to maintain a healthy social climate for their employees




Answer: A

Managers should do more than just focus on short-term financial performance. One concept that helps managers do this is stakeholder symbiosis. This means that:

Managers should do more than just focus on short-term financial performance. One concept that helps managers do this is stakeholder symbiosis. This means that: 




A. stakeholders are dependent on each other for their success

B. stakeholders look out for their individual interests

C. one can only gain at the expense of someone else

D. all stakeholders want to maximize shareholder returns




Answer: A

There are several perspectives of competition. One perspective is zero-sum thinking. Zero-sum thinking means that:

There are several perspectives of competition. One perspective is zero-sum thinking. Zero-sum thinking means that: 



A. all parts of the organization gain at no loss

B. in order for someone to gain others must experience no gain or benefit

C. one can only gain at the expense of someone else

D. everyone in the organization shares gains and losses equally




Answer: C

Procter and Gamble has perfected a technique for compacting cleaning powder into a liquid concentration. Consumers, retailers, shipping and wholesalers, and environmentalists all have benefited from the resulting change in consumer shopping habits and the revolution in industry supply-chain economics. According to the text, this is an example of __________.

Procter and Gamble has perfected a technique for compacting cleaning powder into a liquid concentration. Consumers, retailers, shipping and wholesalers, and environmentalists all have benefited from the resulting change in consumer shopping habits and the revolution in industry supply-chain economics. According to the text, this is an example of __________. 




A. zero-sum relationship among stakeholders

B. stakeholder symbiosis

C. rewarding stakeholders

D. emphasizing financial returns



Answer: B

Stakeholders are:

Stakeholders are: 



A. a new way to describe stockholders

B. individuals, groups, and organizations who have a stake in the success of the organization

C. creditors who hold a lien on the assets of the organization

D. attorneys and their clients who sue the organization




Answer: B

An organization is responsible to many different entities. In order to meet the demands of these groups, organizations must participate in stakeholder management. Stakeholder management means that:

An organization is responsible to many different entities. In order to meet the demands of these groups, organizations must participate in stakeholder management. Stakeholder management means that: 



A. interests of the stockholders are not the only interests that matter

B. stakeholders are second in importance to the stockholders

C. stakeholders and managers inevitably work at cross-purposes

D. all stakeholders receive financial rewards




Answer: A

Members of boards of directors are:

Members of boards of directors are: 



A. appointed by the Securities and Exchange Commission

B. elected by the shareholders as their representatives

C. elected by the public

D. only allowed to serve one term of four years




Answer: B

The three participants in corporate governance are:

The three participants in corporate governance are: 




A. the shareholders, board of directors, and employees

B. the shareholders, labor unions, and employees

C. the shareholders, board of directors, and management

D. the shareholders, banks and lending institutions, and management




Answer: C

According to Henry Mintzberg, the realized strategies of a firm:

According to Henry Mintzberg, the realized strategies of a firm: 




A. are a combination of deliberate and emergent strategies

B. are a combination of deliberate and differentiation strategies

C. must be based on the strategic plan of the company

D. must be kept confidential for competitive reasons




Answer: A

All of the following are ambidextrous behaviors EXCEPT:

All of the following are ambidextrous behaviors EXCEPT: 




A. taking initiative and being alert to opportunities beyond the confines of one's own job

B. being cooperative and seeking opportunities to combine one's efforts with others

C. intensely focusing on the responsibilities of one individual and maximizing the output of the department in the organization in which that individual works

D. being brokers, always looking to build internal linkages




Answer: C

Effectiveness is often defined as:

Effectiveness is often defined as: 




A. doing things right

B. stakeholder satisfaction

C. doing the right thing

D. productivity enhancement





Answer: C

The four key attributes of strategic management include all of the following EXCEPT:

The four key attributes of strategic management include all of the following EXCEPT: 




A. including multiple stakeholder interests in decision making

B. incorporating both short-term and long-term perspectives

C. recognizing the trade-offs between effectiveness and efficiency

D. emphasis on the attainment of short-term objectives





Answer: D

The four key attributes of strategic management include the idea that:

The four key attributes of strategic management include the idea that: 




A. strategy must be directed toward overall organizational goals and objectives

B. strategy must be focused on long-term objectives

C. strategy must be focused on one specific area of an organization

D. strategy must focus on competitor strengths





Answer: A

The organizational versus the individual rationality perspective suggests that:

The organizational versus the individual rationality perspective suggests that: 




A. what is good for a functional area is always good for the organization

B. what is good for the organization is always good for a functional area

C. what is best for a functional area may not be best for the organization

D. the incremental perspective may be best for functional areas while the "rational" perspective may be best for the organization





Answer: C

Management innovations such as total quality, benchmarking, and business process reengineering cannot lead to sustainable competitive advantage because:

Management innovations such as total quality, benchmarking, and business process reengineering cannot lead to sustainable competitive advantage because: 




A. companies that have implemented these techniques have lost money

B. there is no proof that these techniques work

C. they cost too much money and effort to implement

D. every company is trying to implement them and hence it does not make a company different from others




Answer: D

A CEO made a lot of mistakes in assessing the market and the competitive conditions and improperly redesigning the organization into numerous business units. Such errors led to significant performance declines. According to the text, this example illustrates the __________ perspective of leadership.

A CEO made a lot of mistakes in assessing the market and the competitive conditions and improperly redesigning the organization into numerous business units. Such errors led to significant performance declines. According to the text, this example illustrates the __________ perspective of leadership. 




A. external control

B. romantic

C. internal mechanism

D. operational




Answer: B
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