Reference no: EM131119011
Ashworth College BU 470 Strategic Management Exam Over 150 Questions: Study Guide
One strategic responsibility of managers and employees at other levels throughout the organization is:
A. strategy implementation.
B. situation analysis.
C. strategy formulation.
D. developing the organization's vision.
__________ differences are fundamental differences between countries that encompass traditions, history, religious beliefs, and deep-seated values.
A. Colonial
B. Cultural
C. Transnational
D. Regional
Globalization has created challenges because of the __________ that is necessary to make it work.
A. investment
B. management
C. openness
D. staffing
Which of the following statements is NOT true regarding corporate strategies?
A. They are concerned with the broad and more long-term issues of the organization.
B. They are concerned with how the organization is going to compete in a specific business or industry.
C. They are concerned with the direction the organization is headed.
D. They are concerned with the business(es) that the organization is in and the businesses they want to be in.
One reason strategic management is important is because an organization's various divisions, departments, and work activities need to be coordinated and focused on:
A. achieving the organization's goals.
B. financial controls.
C. operational competencies.
D. external and internal factors.
According to Governance Metrics International (GMI) __________ had the highest overall rating for their governance structures and procedures.
A. Canada
B. Ireland
C. United Kingdom
D. New Zealand
Situation analysis allows the organization to focus on examining:
A. operational competencies.
B. financial controls.
C. the organization's top management.
D. external and internal factors.
The board of directors in an organization:
A. plays a significant role in corporate governance.
B. is responsible for the implementation of the organization's operating activities.
C. serves in the role of executive management.
D. is not an important part of the organization's strategic development.
__________ is/are the determination of the broad uses to which organizational resources will be deployed and the resolution of conflicts among the myriad participants in organizations.
A. Vision
B. Mission
C. Corporate governance
D. Goals
Types of strategies within organizations include:
A. situational strategies.
B. functional strategies.
C. product strategies.
D. global strategies.
Bases for understanding strategic management are all of the following EXCEPT:
A. managing strategically makes a difference in an organization's performance.
B. all organizations encounter changing situations.
C. single approaches to strategy development are superior to multiple approaches.
D. all strategies must be evaluated and changed over time.
__________ involves how a corporation uses its resources and protects stakeholders' interests.
A. Financial oversight
B. Corporate governance
C. Steering committee focus
D. Corporate counsel
__________ strategies are goal-directed plans and actions of the organization's functional areas.
A. Situational
B. Business
C. Competitive
D. Operational
In addition to expanding the role of board members, the Sarbanes-Oxley Act of 2002 also called for more disclosure and transparency of:
A. the corporate vision.
B. the corporate mission.
C. financial information.
D. the balanced scorecard.
An organization's __________ are its goal-directed plans and actions in which its capabilities and resources are matched with the opportunities and threats in its environment.
A. mission statements
B. vision statements
C. strategies
D. objectives
An example of a corporate strategy would involve the decision to:
A. increase the price of the Hummer.
B. spin Taco Bell off from Pepsi.
C. combine marketing functions in the Northeast and the Southeast.
D. increase the advertising budget for Coca-Cola.
The __________ is an elected group that represents a company's shareholders.
A. board of directors
B. senior management team
C. steering committee
D. corporate counsel
Strategic management affects all organizational members. However, the only issue that differs among organizational members is the:
A. stage of the strategic management process.
B. scope of the individual's actions.
C. development of the strategy.
D. administrative impacts.
The United States Congress could represent the __________ form of stakeholders.
A. political action groups
B. supplier
C. government
D. shareholder
Purchasing and sending electronic greeting cards through a web site could represent a(n) __________ for a traditional greeting card company like Hallmark.
A. organizational change
B. stable vision
C. physical change
D. product innovation
The three components that form the three critical success factors include:
A. the ability to embrace change, creativity and innovation capabilities, and being a world-class organization.
B. strategy formulation, strategy implementation, and strategy evaluation.
C. corporate, functional, and competitive strategies.
D. durability, imitability, and efficiency.
The ability to access information with great speed reflects the impact of:
A. the information revolution.
B. technological advances and breakthroughs.
C. globalization.
D. All of the answer choices are correct.
__________ view proposes that an organization's competitive advantage is temporary and can be gained only by peppering the competitive marketplace with rapid radical surprises.
A. Resource-based
B. Guerilla
C. Industrial organization
D. Environmental
The following are all components of an organizational vision EXCEPT:
A. a strong connection to the organization's core values and beliefs.
B. strategy based on the results of a focus group.
C. elaboration of a purpose for the organization.
D. summary of the organization's operations or what it does.
Which of the following factors is considered to make an organization's resources unique?
A. Durability
B. Imitability
C. Quality
D. Efficiency
Ethics can be defined as:
A. the obligation of organizational decision makers to make decisions and act in ways that recognize the interrelatedness of business and society.
B. the intentional and ongoing actions of an organization to continuously transform itself by acquiring information and knowledge.
C. the rules and principles that define right and wrong decisions and behavior.
D. making decisions and implementing strategies that allow an organization to develop and maintain a competitive advantage.
As you are studying your organization'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. Reduced need for physical assets
B. Vanishing distance and compressed time
C. Increased vulnerability
D. All of the answer choices are correct.
__________ is the ability to combine ideas in a unique way or to make unusual associations between ideas.
A. Resourcefulness
B. Strategic focus
C. Creativity
D. Interactivity
Which of the following best describes the competitive advantage perspective that looks at the impact of external factors?
A. Resource-based view
B. Guerilla view
C. Industrial organization view
D. Environmental view
The competitive advantage perspective that focuses on structural forces within an industry, the competitive environment of firms, and how these influence competitive advantage is the __________ view.
A. industrial-organizational
B. resource-based
C. guerilla
D. environmental
Change agents are:
A. manipulators that facilitate change to improve an organization's revenue.
B. those who initiate and oversee the change efforts.
C. the leader who single-handedly is responsible for an organization's success through authoritarian leadership.
D. All of the answer choices are correct.
A __________ statement is a statement of what specific organizational units do and what they hope to accomplish.
A. vision
B. strategy
C. technology
D. mission
__________ is the process of taking a creative idea and turning it into a product or process that can be used or sold.
A. Technology
B. Innovation
C. Invention
D. Discovery
Ms. Gibson has come up with the idea of offering free house painting if the job is not completed within the time agreed. Which of the following best describes the competitive advantage perspective that Ms. Gibson is proposing?
A. Resource-based view
B. Guerilla view
C. Industrial organization view
D. Environmental view
Which of the following is a characteristic of a world-class organization?
A. An authoritarian climate
B. A strong customer focus
C. A functional organization structure
D. A strong marketing department
The __________ should elaborate a purpose for the organization.
A. vision
B. competitive strategy
C. mission
D. strategy
If organizations have __________, they will do whatever it takes to operate at capacity.
A. high fixed costs
B. high variable costs
C. numerous competitors
D. equally balanced competitors
Recent census data showed that for the first time in the history of the United States there were more Americans over age __________ than under.
A. 25
B. 30
C. 21
D. 19
An element of the environment as information perspective is:
A. environmental relevancy.
B. environmental uncertainty.
C. environmental currency.
D. environmental texture.
In an external analysis, the primary role of the middle manager is to:
A. use information in terms of the "big picture."
B. act as an information gatherer and disseminator.
C. encourage workers to listen to the customer.
D. All of the answer choices are correct.
Which of the following is NOT one of the five competitive forces?
A. Competition forms substitute products
B. The threat of potential entry
C. The strength of industry forces
D. The bargaining power of buyers
Which of the general environmental sectors is affected when minimum wage laws are changed?
A. Economics
B. Demographics
C. Sociocultural
D. Political/legal
A supplier will have more bargaining power:
A. if it is able to provide the products that the industry is currently providing.
B. if the supplier's product is an important input to the industry.
C. if the supplier's products are differentiated or there are customer switching costs.
D. All of the answer choices are correct.
A buyer will have less bargaining power if all of the following factors apply EXCEPT:
A. buyers have limited information.
B. buyers face few switching costs.
C. the products purchased are highly differentiated and unique.
D. buyers purchase small volumes of the products.
One of the factors that shape the definition of exit barriers as factor(s) that keep companies competing in businesses, even when those businesses are failing, is __________ factors.
A. economic
B. strategic
C. emotional
D. all of the above
A challenge in conducting an external analysis is that:
A. forecasts aren't facts.
B. brand loyalty is low.
C. markets may be concentrated.
D. markets may be fragmented.
As an open system, an organization __________ and __________ its external environment.
A. reacts to; controls
B. interacts with; responds to
C. interacts with; controls
D. reacts to; responds to
The __________ is a trade alliance among countries.
A. Global Union
B. U.S. Economic Act of 1996
C. Association of Southeast Asian Nations
D. Consumer Product Safety Association
An external analysis enables the organization to examine:
A. opportunities and threats.
B. strengths and weaknesses.
C. product substitution and durability.
D. manufacturing and operations.
One challenge of conducting an external analysis is:
A. an external analysis can be time consuming.
B. the environment might be changing more rapidly than you can keep up with.
C. the internal analysis of the organization is very important to managing strategically.
D. it is time consuming and the environment changes very rapidly.
The Porter Five Forces model includes all of the following factors EXCEPT:
A. bargaining power of suppliers.
B. threat of new entrants.
C. threat of a decrease in research and development.
D. threat of substitute products.
Organizations are __________ systems, which means they interact with and respond to their environment.
A. open
B. organic
C. adaptive
D. external
Which of the following does NOT usually function as an entry barrier?
A. Economies of scale
B. Product differentiation
C. High strategic stakes
D. Switching costs
Managing __________ is an ongoing process.
A. emotionally
B. strategically
C. reactively
D. cooperatively
Which of the following would be considered substitute products?
A. Coke and Pepsi
B. Contacts and eyeglasses
C. The Internet and the World Wide Web
D. AT&T and Sprint
The law governing safe and hazard-free work environments is the:
A. Equal Employment Opportunity Act of 1972.
B. Americans with Disabilities Act of 1990.
C. Occupational Safety and Health Act of 1970.
D. Civil Rights Act of 1991.
Performance of ________ activities would not be possible without ________ activities.
A. core; support
B. primary; support
C. support; primary
D. strategic; support
Resources that the organization possesses and capabilities that the organization has developed, both of which can be developed into a sustainable competitive advantage, are known as:
A. weaknesses.
B. strengths.
C. opportunities.
D. threats.
Internal analysis is important for identifying and evaluating an organization's:
A. strengths and weaknesses.
B. goals and objectives.
C. distinctive offerings.
D. mission and vision.
Customer value is determined by:
A. a unique and different product.
B. a low-priced product.
C. the ability to respond to specific or distinct customer needs.
D. All of the answer choices are correct.
The most important part of an internal analysis involves:
A. setting organizational goals.
B. identifying distinctive and dynamic capabilities.
C. creating a competitive advantage.
D. evaluating resources, capabilities, and core competencies.
After a current product-market profile has been assessed, the next step is to
A. identify sources of competitive advantage and the disadvantage in the main product-market segments.
B. emphasize the interactions between the organization and customers.
C. conduct an external assessment of competitors.
D. All of the answer choices are correct.
An internal analysis involves an examination of the organization's:
A. mission and vision.
B. resources and capabilities.
C. strategic objectives.
D. functional and business strategies.
The ability of Honda to use its fuel-efficient and reliable engines in automobiles, motorcycles, and power generators is an example of:
A. contributing to superior customer value.
B. creating a product that is difficult for competitors to imitate.
C. developing an innovation that can be used in a number of ways.
D. simulating an effective system developed by a competitor.
_______ are the special and unique capabilities that distinguish an organization from its competitors.
A. Organizational strengths
B. Distinctive organizational capabilities
C. Competitive advantages
D. Core competencies
The organization's major value-creating skills and capabilities that are shared across multiple product lines or multiple businesses are called:
A. distinctive organizational capabilities.
B. competitive intelligence.
C. core opportunities.
D. core competencies.
All of the following constitute primary activities except:
A. procurement.
B. marketing and sales.
C. outbound logistics.
D. operations.
The various organizational routines and processes that determine how efficiently and effectively the organization transforms its inputs into outputs are called
A. strengths.
B. core competencies.
C. capabilities.
D. customer value.
Southwest's capability of quick gate turnaround time and exceptional employee-customer interactions is known as:
A. a distinctive organizational capability.
B. an exceptional opportunity.
C. a superior customer value.
D. a distinguished service.
The amenities and conveniences travelers want is an example of:
A. contributing to superior customer value.
B. a second-to-market philosophy.
C. operating under a benchmarking philosophy.
D. providing a system that is easily duplicated.
Which of the following are considered to be primary activities in a value chain analysis as outlined by Porter?
A. Inbound logistics
B. Procurement
C. Human resource management
D. Firm's infrastructure
The second step in identifying distinctive organizational capabilities through a capabilities assessment profile is:
A. describe all the organizational capabilities and competencies.
B. identify and agree on the key capabilities and competencies.
C. identify sources of competitive advantage and disadvantage in the main product-market segments.
D. sort the core capabilities and competencies according to strategic importance.
Characteristics of dynamic capabilities include all of the following except:
A. timely responsiveness.
B. reactive responsiveness.
C. rapid and flexible product innovation.
D. coordinating and deploying organizational resources and capabilities.
The question, "Does the capability provide tangible customer benefits?" occurs under what step of the capabilities assessment profile which identifies distinctive organizational capabilities?
A. Sort the core capabilities and competencies according to strategic importance.
B. Identify and agree on the key capabilities and competencies.
C. Describe all the organizational capabilities and competencies.
D. Prepare current product-market profile.
Factors like Coca-Cola's brand name "Coke" and Nike's "swoosh" symbol construct ________ resources for the organization.
A. physical
B. intangible
C. financial
D. invisible
The internal audit answers the questions of:
A. Do the various functions have the needed resources to perform their assigned work activities?
B. How well do they perform these assigned work activities?
C. What are the organization's primary opportunities and threats?
D. possessing the needed resources and then performing assigned work activities.
________ strategies are the short-term goal-directed decisions and actions of the organization's various functional areas.
A. Competitive
B. Coordinating
C. Corporate
D. Functional
The ________ strategy is one in which an organization continually innovates by finding and exploiting new product and market opportunities.
A. prospector
B. defender
C. analyzer
D. reactor
The ________ works hard to establish brand loyalty.
A. differentiator
B. cost leader
C. defender
D. reactor
Which of the following is a possible production-operations management strategy?
A. Selective specialization
B. Inventory management systems
C. User positioning
D. Market logistics
If Mr. Carol wanted to introduce high-performance work practices in his organization, which of the following practices would he adopt?
A. Centralized decision making
B. Fixed job assignments
C. Limited communication
D. Self-managed work teams
When a company builds a profitable business by "stealing" ideas from other successful peers, it is following a(n) ________ strategy.
A. prospector
B. defender
C. analyzer
D. reactor
Determining the optimum mix of equity or debt is a decision made by which organizational support process?
A. Financial-accounting systems
B. Corporate governance systems
C. Procurement systems
D. Product development systems
Designing which of the following systems involves making sure we have the information we need, when the information is needed, and in the form needed?
A. Marketing
B. Human resources
C. Information
D. Financial-accounting
When an organization hasn't developed a low cost or a differentiation competitive advantage, it is said to be
A. stuck-in-the-middle.
B. using an integrated strategy.
C. using a strategy of best cost.
D. pursuing a niche-based competitive advantage.
An organization's ________ strategies reflect its commitment to and treatment of its employees.
A. procurement
B. corporate
C. HR
D. competitive
Product design strategies typically involve an organization's ________ functional area.
A. finance
B. R&D
C. accounting
D. HR
The two main support processes in an organization are:
A. production systems and marketing systems.
B. procurement systems and HR systems.
C. financial accounting systems and HR systems.
D. information systems and financial accounting systems.
The ________ point(s) to the strategic issues organizational decision makers need to address in their pursuit of sustainable competitive advantage and high levels of performance.
A. portfolio analysis
B. distinctive capabilities
C. strengths
D. SWOT analysis
The marketing mix is commonly known as the
A. 4Ps
B. 5Ps
C. 7Ss
D. 4Ss
________ is when organizations battle or vie for some desired object or outcome.
A. Competition
B. Strategy
C. Goal
D. Objective
When an organization competes by providing unique products with features that customers value, perceive as different, and are willing to pay a premium price for, it is using a strategy of:
A. cost leadership.
B. focus.
C. differentiation.
D. niche.
Which of the following is NOT a possible dimension for identifying strategic groups?
A. Units sold
B. Price
C. Quality
D. Geographic scope
Ms. James has decided to use a computerized order taking and fulfillment system in the new location for her retail shop. She is demonstrating her ability to give attention to which of the following strategies?
A. Marketing
B. Human resources
C. Information
D. Financial-accounting
The ________ strategy is one in which an organization continually innovates by finding and exploiting new product and market opportunities.
A. prospector
B. defender
C. analyzer
D. reactor
The role of top-level decision makers in the strategic management process is to:
A. establish the overall operational goals.
B. develop the overall goal that the organization hopes to achieve.
C. establish functional strategies.
D. supervise line managers.