TEST 2 CHAPTER 4/5/6

1) a firm strength that cannot be easily matched or imitated by competitors are called distictive
competencies
2) who should perform an internal audit- representative managers and employees from
throughout the firm
3) Financial ratio analysis exemplifies the complexity of relationships among functional areas of
business
4) The three all-encompassing internal resource categories used in the resource-based view are
physical resource, human resource and organizational resources
5) Organizational resources include all except employee training
6) A resources is valuable if it rare, hard to imitate or not easily substitutable
7) A pattern of behaviour developed by an organization as it learn to cope with its problem of
external adaptation and internal intergartion and that has worked well enough to be
considered valid and to be taught to new members as the correct way to perceive, think and
feel – organizational culture
8) What is the essential bridge between present and future that increase the likelihood of
achieving desired results? Planning
9) All of the following are the basic activities of management except consolidating
10) Which of the following does the text call an up front investment in success – planning
11) Which fuction of management includes areas such as job design, job specifications, job
analysis and unity of command? Organizing
12) Synergy : exists when everyone pulls together asa team that knows what it wants to achieve.
13) Which management functions include breaking tasks into jobs, combining jobs to form dept
and delegating authority? Organizing
14) Which function of management is concerned with span of control and chain of command:
organizing
15) Which of the following is the process of influencing people to accomplish specific task?
Motivating
16) Which of the following is the process of influencing people to accomplish specific objectives?
Motivating
17) Which function of management includes all those activities undertaken to ensure that
operation conform to planned operation : controlling
18) Pricing is one of the basic functions of marketing
19) Customer profiling can reveal the demographic characteristics of an organization customers
20) All of the following are the basic function of marketing except value chain analysis
21) Selling includes all of these marketing activities except : customer analysis
22) What marketing function include test marketing: product and service planning
23) Distribution include warehousing
24) Which of the following is not a key question that can reveal internal strength and weakness
regarding a firm marketing function: does the firm have good liquidity?
25) The investment decision is the allocation and reallocation of capital and resources to
projects, products, assets and division of organization
26) Which of the three finance and accounting decisions involves determining the best capital
structure for the firm: financing decision
27) What category of ratios measures a firm ability to meet its short term obligations? Liquidity
28) What category of ratios include return on assets and return on stockholders equity?
Profitability
29) What category of ratios measures how effectively a firm can maintain its economic position
in the growth of the economy and industry? Growth
30) Which ratio would be considered an activity ratio? Average collection period
31) Which ration is calculated by dividing profits before interest and taxes by total interest
charges? Times-interest-earned ratio
32) The times-interest-earned ration would be classified as leverage ratio
33) Which of the basic function within production and operation deals with aggregate planning
and scheduling: capacity
34) Production and operations management deals with inputs, transformation and outputs that
vary across industries and markets
35) In most industries, the major costs of producing a product or service are incurred within
operations
36) Financing/percentage of sales method/how many successful new products is a commonly
used approach to determine r&d budget allocations.
37) Which is not one of the 4 common approaches: use percentage -of-costs-methods
38) For many firms a key decision with great bearing on R&D spending is whether to be a first
mover or late follower
39) Information ties all business functions together and provides the basis for all managerial
40) An effective information management system( collect/codes/stores/synthesize) information
in such way that it answer important operating and strategic questions
41) The process whereby a firm determines the costs associated with organizational activities
from purchasing raw materials to manufacturing products to marketing those products called
value chain analysis
42) The initial step to implementing value chain analysis os dividing firm operation into specific
activities/ business process
43) Which of the following is the first step in developing IFE Matrix? Listing key internal strengths
and weakness
44) The IFE Matrix should be constructed for each autonomous division in multidivisional firms.
CHAPTER 5: STRATEGIC IN CHOICE

1) Long term objectives are needed at which level of an organization? Corporate, divisional and
functional
2) Financial objectives involve all of the following except larger market share
3) What principle is based on the belief that the true measure of a really good strategist is the
ability to solve problem? Managing by crisis
4) What principle is built on the idea that there is no general plan for which way to go and what
to do? Managing by subjectives
5) Yum Brands owns virtually all of its outside US restaurants
6) Which of these strategies is effective when the number of suppliers is small and the number
of competitors is large? Back integration
7) Backward intergartion is effective in all of these cases except when the advantages of stable
prices are not particulary important
8) What refers to a strategy of seeking ownership of or increased control over a firm
competitors. Horizontal intergartion
9) In which situation would horizontal integration be an especially effective strategy? When an
organization can gain monopolistic characteristics in a particular area of region without being
challenged by the federal government for tending substantially to reduce competitionwhich
strategy seek to increase market share for present products or services in the present
markets through greater marketing efforts? Market penetration
10) When a domestic company first begins export to India, it is an example of market
development
11) Which strategy generally entails large research and development expenditures? Product
development
12) All of the following situations are condusive to market development except when new
channels of distribution are expensive and unreliable
13) Which strategy is appropriate when an organization competes in an industry characterized by
rapid technological developments? Product developments
14) Gap’s opening of its first five stores in china is an example of which type of strategy? Market
developmenta pasta manufacturer purchase of some pet food brands is an example of
unrelated diversification
15) Which of the following is not a guideline for when an organization should use an unrelated
diversification strategy? When existing markets for an organization present product are not
yet saturated
16) Procter and gamble sale of many of its brands in order to focus on core brands: divestiture
17) Staples 170 stores closings in North America in 2014 is an example of retrenchment
18) What kind of strategy is retrenchment ? turnaround strategy
19) Bankruptancy can be an effective type of retrenchment strategy
20) Retrenchment would be an effective strategy when an organization is plagued by inefficiency,
low profitability, poor employee morale and pressure from stockholders to improve
performance
21) Which term refers to selling a division or part of an organization? Divestiture
22) Which strategy should be implemented when a division is responsible for an organization
overall performance? Divestiture
23) Selling all of company assests in parts for their tangible worth is called liquidation
24) Which strategy would be effective when the stockholders of a firm can minimize their losses
by selling the organization assets? Liquidation
25) Under which strategy would you offer products or service to a wide range of customers at
lowest price available on the market? Cost leadership-low cost
26) According to porter, which strategy offer products or services to a niche group of customers
at lowest price available on the market? Cost leadership – best value
27) Under which condition would a cost leadership strategy be especially effective? When the
products of rival sellers are essentially identical and supplies are readily available from any of
several eager sellers.
28) Under which condition would a differentiation strategy be especially effective? When
technological change is fast paced and competition revolves around rapidly evolving product
features.
29) The controversial practices of a company borrowing money simply to fund dividend payouts
to itself is known as dividend recapitalization
30) When the private equity firm clayton, Dubilier and rice bought David bridal from the private
equity firm leonard green and partner lp this is an example of a secondary buyout
31) What occurs when 2/m companies form a temporary partnership or consortium fro the
purposeof capitalizing on some opportunity? Joint venture
32) All of the following are cooperative arrangement except marketing plan
33) Which of the following is not a reason joint venture fail? Venture risk was minimized
34) Which strategy would be the most appropriate when the distictive competencies of two or
more firms complement each others especially well? Joint venture
35) When two org of about equal size unite to form one enterprise, which of these occurs?
Merger
36) Mergers and acquisitions are created for all of the following reasons except to shift company
profits to us from countries with low corporate tax rates
37) There were far more global mergers and acquisitions in 2014 than in any year since 2007
38) Which of the following is noted in the text as a serious obstacle for many small business
owners? Lack of strategic management knowledge
CHAPTER 6: STRATEGY ANALYSIS AND CHOICE

1) Strategy analysis and choice involves making subjective decision based on objective
information
2) An organization present strategies, objectives, vision and mission, coupled with external
and internal audit information provide a basis for evaluating structural strategies but not
generating those strategies
3) Which stage in the strategy formulation framework focuses on generating feasible
alternatives strategies? Matching
4) Which stage of the strategy formulation framework involve the quantitative strategic
planning matrix? Stage 3
5) Which stage of the strategy formulation framework includes an IFE Matrix and the
Competitive Profile Matrix? Input
6) Which stage of strategy formulation framework include IFE Matrix? Input stage
7) The match an organization makes between its internal resources and skills and the
opportunities and risks created by its external factor can be defined as strategy
8) Which matrix is included in the decision stage of the strategy formulation framework?
QSPM
9) Which section of the SWOT Matrix involves matching internal strengths with external
opportunities? SO cell
10) Which strategies aim at improving internal weakness by taking advantage of external
opportunities. WO Strategy
11) Which strategies are defensive tactics directed at reducing internal weakness avoid
external threat: WT strategy
12) How many cell in the SWOT Matrix? 9 cells
13) Which of the following is not one of the steps involved in constructing a SWOT Matrix?
List the firm external weakness
14) Which of the following is a limitation associated with SWOT Matrix? It is a static
assessment in time
15) Which of these is not a SPACE Matrix quadrant? Offensive
16) The two internal dimension represented on the axes of space matrix are competitive
position and financial position
17) What are the two external dimensions of the SPACE Matrix? Stability position and
industry position
18) The positive rated dimension on the SPACE Matrix are financial position and industry
position
19) What types of strategies would you recommend when a firm SPACE Matrix directional
vector has the coordinates(-2, +3): conservative
20) In the Space analysis, what does a (+6,+3) strategy profile portray? A strong industry
position
21) The BCG Matrix is designed specifically to enhance which type of firm efforts to
formulate strategies? Companies with more than one division
22) In the BCG Matrix, which element represents the industry growth rate in sales measured
in percentage term? Y AXIS
23) In the BCG Matrix, how would a division with a low relative market share position in a
high growth industry? Question mark
24) In the BCG Matrix, when a division of an organization has a high relative market share
and is in fast growing industry, it is called a star.
25) In the BCG Matrix, a division with a high relative market share position in a low growth
industry can be described as? Cash cows
26) In the BCG Matrix, which strategy would be most appropriate for a division classified as
dogs?Retrechment
27) Forward Integration would be appropriate strategy for which of the following types of
division in the BCG Matrix? Star
28) All of the following are limitation of BCG Matrix except the matrix requires at least 3
years worth of data
29) Which of the following analytical tools consists of nine-cell matrix: internal-extrenal
matrix
30) Both the internal-external matrix and bcg matrix are called portfolio matrices
31) What analytical tool has 4 quadrants based on two dimensions: competitive position and
market growth? Grand strategy matrix
32) Firms located in which quadrant of the grand strategy matrix are in an excellent strategic
position? Quadrant 1
33) According to the grand strategy matrix, which strategy is recommended for a firm with
rapid market growth and strong competitive position? Market penetration
34) For companies located in Quadrant 3 of the grand strategy matrix, the first strategy
recommended is extensive cost and assets reduction(retrenchment)
35) Although a firm positioned in quadrant 2 of the grand strategy matrix is in growing
industry, it is unable to compete effectively and needs to determine why the firm current
approach is ineffective and how to best changeto improve competitiveness.
36) According to the grand strategy matrix, organizations in which quadrant have a strong
competitive position but in low growth industry? Quadrant 4
37) The top row of QSPM consists of alternative strategies derived from all of the following
except CPM
38) Which analytical tool determines the relative attractiveness of various strategies based
on the extent to which key internal and external critical success factors are capitalized
upon or improved? QSPM
39) Which of the following is the first step in developing a QSPM? Make a list of the firm key
external opportunities and threwats and internal strength and weakness in the left
column of the QSPM
40) What term is defined as the product of multiplying the weight by attractiveness scores in
each row of the QSPM? Total attractiveness scores
41) What is the highest number of strategies that can be examined at one time with the
QSPM? No limit
42) Which of these is a limitation of QSPM? It requires intuitive informed judgements
43) Which strategy formulation techniques reveals the relative attractiveness of the
alternative strategies and thus provide an objective basis for selecting specific strategies?
QSPM
44) Cultures includes the set of shared values, beliefs, attitude, customs, norms,rites, rituals,
personality, heroes and heroines that describe a firm.
45) Culture is the unique way an organization does business
46) An affective way to gain commitment and achieve desired results is to shift from specific
to general issues and concern.
47) Successful strategists minimize their own political exposure on issues that are highly
controversial and in circumstances where opposition from major power centers is likely
48) Which of the board director duty fall under the category of control and oversight over
management? Select ceo
49) The act of oversight and direction for an organization is referred to as governance
50) Today, board of directors are composed mostly of outsider
51) All of the following are the principle of good organizational governance, as established by
business week except at least 3 directors are current or former company company
excutives.