CHAPTER 8 IMPLEMENTING STRATEGIES

1. This directly affects the lives of plant managers, division managers, department managers, sales
managers, product managers, project managers, personnel managers, staff managers, supervisors,
and all employees.
Strategy implementation

2. It is the extent to which companies can track individuals’ movements on the Internet—and even be able
to identify an individual by name and e-mail address.
Current Marketing Issue

3. They monitor blogs to determine, evaluate, and influence opinions being formed by customers.
Marketers

4. They must get their customers involved in their company Web site and solicit suggestions from
customers in terms of product development, customer service, and ideas.
Marketers

5. It focuses on showing customers how a product or service can improve their lives, especially during
tough economic times.
purpose-based marketing

6. It is Subdividing a market into distinct subsets of customers according to needs and buying habits.
Market segmentation

7. It allows a firm to operate with limited resources because mass production, mass distribution, and mass
advertising are not required.
Market segmentation

8. It is a key to matching supply and demand, which is one of the thorniest problems in customer service.
Segmentation

9. It often reveals that large, random fluctuations in demand actually consist of several small, predictable,
and manageable patterns.
Segmentation

10. It allows factories to produce desirable levels without extra shifts, overtime, and subcontracting.
Matching supply and demand

11. It also minimizes the number and severity of stock-outs.

Matching supply and demand

12. It makes market segmentation easier today because consumers naturally form “communities” on the
Web.
Internet

13. Its decisions directly affect the marketing mix variables: product, place, promotion, and price.

14. It entails developing schematic representations that reflect how your products or services compare to
competitors’ on dimensions most important to success in the industry.
Product Positioning

15. It entails developing schematic representations that reflect how your products or services compare to
competitors’ on dimensions most important to success in the industry.
Positioning

16. This could be used to examine three or more criteria simultaneously, but this technique requires
computer assistance and is beyond the scope of this text.
Multidimensional scaling

17. It usually means a strategy that is not clearly perceived to have any distinguishing characteristics.
middle
18. It play an important role in strategy implementation by providing information to capital acquisition,
developing projected financial statements, budgeting, and business evaluation.
Finance and Accounting

19. It often requires additional capital.

strategy implementation

20. Besides net profit from operations and the sale of assets, two basic sources of capital for an
organization are?
debt and equity
21. It is the most widely used technique for determining whether debt, stock, or a combination of debt and
stock is the best alternative for raising capital to implement strategies.
Earnings Per Share/Earnings Before Interest and Taxes (EPS/EBIT) analysis

22. This analysis can be used to determine if all stock, all debt, or some combination of stock and debt is
the best capital financing alternative.
Earnings Per Share/Earnings Before Interest and Taxes (EPS/EBIT) analysis

23. Another consideration when using EPS/EBIT analysis is?

Flexibility

24. It is a central strategy-implementation technique because it allows an organization to examine the

expected results of various actions and approaches.
Projected financial statement analysis

25. This type of analysis can be used to forecast the impact of various implementation decisions
Projected financial statement analysis

26. It is central to strategy implementation because integrative, intensive, and diversification strategies are
often implemented by acquiring other firms.
Evaluating the worth of a business

27. For net income, many firms use the term _____, and many others use the term.
Earnings, profits

28. It is a document that details how funds will be obtained and spent for a specified period of time.
financial budget

29. Fundamentally, it is a method for specifying what must be done to complete strategy implementation
successfully.
financial budget

30. It should not be thought of as a tool for limiting expenditures but rather as a method for obtaining the
most productive and profitable use of an organization’s resources.
Financial budgeting

31. It can be viewed as the planned allocation of a firm’s resources based on forecasts of the future.
financial budget

32. The first approach in evaluating the worth of a business is determining its?
net worth or stockholders’ equity

33. The second approach to measuring the value of a firm grows out of the belief that the worth of any
business should be based largely on the future benefits its owners may derive through its?
net profits

34. To use this method, divide the market price of the firm’s common stock by the annual earnings per
share and multiply this number by the firm’s average net income for the past five years.
Price-earnings ratio method

35. To use this method, simply multiply the number of shares outstanding by the market price per share
and add a premium.
Outstanding shares method

36. It start by subtracting the company’s liabilities from its assets to determine owners’ equity. Then
exclude any intangible assets.
Book Value

37. It is the process of estimating the value of a company or investment based on the money, or cash
flows, it’s expected to generate in the future.
Discounted Cash Flows

38. It is Enterprise Value = Debt+Equity-Cash .

Enterprise Value

39. It is simply a per-share dollar amount that a person or firm is willing to pay to control (acquire) the other
company.
Premium

40. It means selling off a percentage of your company to others in order to raise capital; consequently, it
dilutes the owners’ control of the firm.
Going public
 41. These individuals are generally charged with developing new products and improving old products in a
way that will allow effective strategy implementation.
Research and development (R&D) personnel

42. These people perform tasks that include transferring complex technology, adjusting processes to local
raw materials, adapting processes to local markets, and altering products to particular tastes and
specifications.
R&D employees and managers

43. It replaces personal selling as the dominant selling strategy.

mass marketing

44. A good ____ ____ can allow a firm to reduce costs.

information system

45. Both affect consumer and industrial products and services shorten product life cycles.
Technological Improvements

46. This is a glamorous and exciting strategy but also a dangerous one.
Market New Technological Products

47. This approach entails allowing a pioneer firm to develop the first version of the new product and to
demonstrate that a market exists.
Innovative Imitator of Successful Products

48. This strategy requires excellent R&D personnel and an excellent marketing department.
Innovative Imitator of Successful Products

49. As a new product is accepted by customers, price becomes increasingly important in the buying
decision. Also, mass marketing replaces personal selling as the dominant selling strategy.
Low-cost Producer of Similar but Less Expensive Products

50. It may be the most important factor in differentiating successful from unsuccessful firms.
effective management information system (MIS)

51. It can lead to cost reduction.

Effective information systems

52. It is much quicker, cheaper, and effective than traditional focus groups and surveys.
Online community

53. Companies and organizations should encourage their employees to create ______ ______ that allows
users to add, delete, and edit content regarding frequently asked questions and information across the
firm’s whole value chain of activities.
wikis—Web sites

CHAPTER 9 STRATEGY REVIEW EVALUATION AND CONTROL

1. It is the process of determining the effectiveness of a given strategy in achieving the organizational
objectives and taking corrective actions whenever required.
STRATEGY REVIEW EVALUATION AND CONTROL

2. It allows an organization to establish benchmarks of progress and to monitor more effectively.

STRATEGY REVIEW EVALUATION AND CONTROL

3. Organizational conflicts and inter-departmental bickering may be a sign of strategic inconsistency. A

strategy must not present inconsistent goals and policies.
Consistency

4. It refers to examining sets of trends, as well as individual trends, in evaluating strategies.

Consonance

5. It is the final broad test of strategy, that is, whether the strategy can be attained within the limits of
physical, human and financial resources of the organization.
Feasibility

6. In evaluating strategy, organizations may examine the nature of positional advantages associated with
the strategy.
Advantage

7. It normally are the result of superiority in one of three areas: (1) resources, (2) skills, or (3) position.
Competitive advantages
8. It is an advanced technology, intellectual property, or strategic partnerships that provide them with a
competitive edge.
Resources

9. It is an specialized capabilities or expertise that differentiate an organization from its competitors.

Skills

10. It refers to the strategic positioning of the organization within its industry or market.
Position

11. It is necessary for all sizes and kinds of organizations.

Strategy evaluation

12. It should initiate managerial questioning of expectations and assumptions, should trigger a review of
objectives and values, and should stimulate creativity in generating alternatives and formulating criteria
of evaluation.
Strategy evaluation

13. These should be performed on a continuing basis, rather than at the end of specified periods of time or
just after problems occur.
Strategy-evaluation activities

14. This activity includes comparing expected results to actual results, investigating deviations from plans,
evaluating individual performance, and examining progress being made toward meeting stated
objectives.
measuring organizational performance

15. It should focus on changes in the organization’s management, marketing, finance/accounting

production/operations, R&D, and management information systems strengths and weaknesses.
revised IFE Matrix

16. It should indicate how effective a firm’s strategies have been in response to key opportunities and
threats.
revised EFE Matrix

17. These does not necessarily mean that existing strategies will be abandoned or even that new strategies
must be formulated.
Taking corrective actions

18. These requires making changes to competitively reposition a firm for the future.
Taking corrective actions

19. It is often emotionally based and not easily overcome by rational argument.
Resistance to change

20. It may be based on such feelings as loss of status, implied criticism of present competence, fear of
failure in the new situation, annoyance at not being consulted, lack of understanding of the need for
change, or insecurity in changing from well-known and fixed methods.
Resistance

21. It is an important strategy-evaluation tool. It is a process that allows firms to evaluate strategies from
four perspectives: financial performance, customer knowledge, internal business processes, and
learning and growth.
Balanced Scorecard

22. It requires that firms seek answers to the following questions and utilize that information, in conjunction
with financial measures, to adequately and more effectively evaluate strategies being implemented.
Balanced Scorecard analysis

23. It ranks the best and worst performers on various factors, such as return on investment, sales volume,
and profitability.
Fortune

24. It is to change the world by making business better. We achieve that by providing trusted information,
telling great stories, and building world-class communities. We measure performance by rigorous
benchmarks, and we hold companies accountable.
Fortune’s mission

25. Our goal is to make Fortune a force for good through its second century and beyond.
Fortune’s mission

26. It should be designed to provide a true picture of what is happening.

 Strategy evaluation

27. It should not dominate decisions; it should foster mutual understanding, trust, and common sense.
strategy-evaluation process

28. These require a more elaborate and detailed strategy-evaluation system because it is more difficult to
coordinate efforts among different divisions and functional areas.
Large organizations

30. It can be defined as alternative plans that can be put into effect if certain key events do not occur as
expected. Also be referred to as ‘Plan B’.
Contingency

31. It permitted quick response to change , it prevented panic in crisis situation.

Contingency planning

32. It made managers more adaptable by encouraging them to appreciate just how variable the future can
be.
Contingency planning

33. It is defined by the American Accounting Association (AAA) as “a systematic process of objectively
obtaining and evaluating evidence regarding assertions about economic actions and events to
ascertain the degree of correspondence between these assertions and established criteria, and
communicating the results to interested users.
Auditing

34. They examine the financial statement of firms to determine whether they have been prepared according
to generally accepted accounting principles (GAAP) and whether they fairly represent the activities of
the firm.
Auditors

35. They use a set of standards called generally accepted auditing standards (GAAS).
Independent auditors

36. It is an objective evaluation of a strategic plan, or plans, implemented by senior executives and
important stakeholders with the goal of achieving an organization's long-term goals.
strategic audit

37. It contend that top executives are the only persons in the firm with the collective experience, acumen,
and fiduciary responsibility to make key strategy decisions.
top-down approach

38. It argue that lower- and middle-level managers and employees who will be implementing the strategies
need to be actively involved in the process of formulating the strategies to ensure their support and
commitment.
Bottom-up approach

CHAPTER 10 BUSINESS ETHICS/SOCIAL RESPONSIBILITY/ENVIRONMENTAL SUSTAINABILITY

1. It refers to actions an organization takes beyond what is legally required to protect or enhance the well-
being of living things.
Social responsibility

2. It refers to the extent that an organization’s operations and actions protect, mend, and preserve rather
than harm or destroy the natural environment.
Sustainability

3. It can be defined as principles of conduct within organizations that guide decision making and behavior.
Business ethics

4. It is a document that provides behavioral guidelines that cover daily activities and decisions within an
organization.
code of business ethics

5. It needs to permeate organizations.

ethics culture

6. To help create an ethics culture, Citicorp developed a business ethics board game that is played by
thousands of employees worldwide. It is Called?
The Word Ethic
7. It refers to policies that require employees to report any unethical violations they discover or see in the
firm.
Whistle-blowing

8. It is defined by Black’s Law Dictionary as the offering, giving, receiving, or soliciting of any item of value
to influence the actions of an official or other person in discharge of a public or legal duty.
Bribery

10. It is a gift bestowed to influence a recipient’s conduct. It is a crime in most countries of the world,
including the United States.
Bribery

11. It is considered both illegal and unethical in the United States, but in some foreign countries, paying
bribes and kickbacks is acceptable.
Paying bribes

12. It is even considered bribery in some countries.

Tipping

13. In what country does romantic relationships at work are largely viewed as private matters and most
firms have no policies on the practice.
Europe

14. In Europe, romantic relationships at work are largely viewed as private matters and most firms have no
policies on the practice.
Love Affairs at Work

15. He may contend that it is irresponsible for a firm to give monies to charity.
Friedman

16. This term embraces managerial philosophy and thinking at the highest level of the firm, which is why
the topic is covered in this textbook.
social policy

17. It concerns what responsibilities the firm has to employees, consumers, environmentalists, minorities,
communities, shareholders, and other groups.
Social policy

18. Using foreign workers is known as ______ _______ in Japanese.?

gaikokujin roudousha

19. It is defined as “surroundings in which an organization operates, including air, water, land, natural
resources, flora, fauna, humans, and their interrelation.
environment

20. It is one among many companies today that annually provides a sustainability report that reveals how
the firm’s operations impact the natural environment.
Wal-Mart Stores

21. They recently issued a set of detailed reporting guidelines specifying what information should go into
sustainability reports.
Global Reporting Initiative

22. This proxy advisory firm reports that an increasing number of shareholder groups are pushing firms to
provide sustainability information annually.
Institutional Shareholder Services

23. A few years ago, firms could get away with placing _____ terminology on their products and labels
using such terms as organic, green, safe, earth-friendly, nontoxic, and/or natural because there were
no legal or generally accepted definitions.
“green”

24. It iis imposing strict regulations requiring firms to conserve energy.

Obama administration

25. It touch all aspects of a business’s operations, including workplace risk exposures, packaging, waste
reduction, energy use, alternative fuels, environmental cost accounting, and recycling practices.
Environmental concerns

26. These could include developing or acquiring green businesses, divesting or altering environment-
damaging businesses, striving to become a low-cost producer through waste minimization and energy
conservation, and pursuing a differentiation strategy through green-product features.
Environmental strategies
 27. They reports that companies actively consider environmental training in employees they hire.
Wall Street Journal

28. It contends that most business schools currently do not, but should, incorporate environmental training
in all facets of their core curriculum, not just in special elective courses.
Aspen Institute

29. More firms are becoming environmentally _____ doing more than the bare minimum to develop and
implement strategies that preserve the environment.
proactive

30. The old undesirable alternative of being environmentally ____ changing practices only when forced to
do so by law or consumer pressure more often today leads to high cleanup costs, liability suits, reduced
market share, reduced customer loyalty, and higher medical costs.
reactive

31. This views environmental pressures as opportunities and includes such actions as developing green
products and packages, conserving energy, reducing waste, recycling, and creating a corporate culture
that is environmentally sensitive.
proactive policy

32. Based in Geneva, Switzerland, this organization is a network of the national standards institutes of 147
countries, one member per country.
International Organization for Standardization (ISO)

33. It is the world’s largest developer of sustainability standards

International Organization for Standardization (ISO)
34. These are sovereign decisions by the regulatory authorities, governments, and/or companies
concerned.
Adoptions

35. It refers to a series of voluntary standards in the environmental field.

ISO 14000

36. It is a set of standards adopted by thousands of firms worldwide to certify to their constituencies that
they are conducting business in an environmentally friendly manner.
ISO 1400

37. This offer a universal technical standard for environmental compliance that more and more firms are
requiring not only of themselves but also of their suppliers and distributors.
ISO 14001 standards

38. This requires that a community or organization put in place and implement a series of practices and
procedures that, when taken together, result in an environmental management system (EMS).
ISO 14001 standard

39. It is not a technical standard and as such does not in any way replace technical requirements
embodied in statutes or regulations. It also does not set prescribed standards of performance for
organizations.
ISO 14001

40. They are pouring money into developing electric plug-in vehicles.
General Motors and Chrysler

41. This Chinese auto maker recently unveiled the country’s first all-electric vehicle for mass market.
BYD Co.

42. It is creating an electric car network for the islands that by 2012 is expected to wean the state from
near-complete dependence on oil for its energy needs.
Hawaii

CHAPTER 11 GLOBAL/INTERNATIONAL ISSUES

1. Organizations that conduct business operations across national borders are called?
international firms or multinational corporations

2. They face unique and diverse risks, such as expropriation of assets, currency losses through exchange
rate fluctuations, unfavorable foreign court interpretations of contracts and agreements, social/political
disturbances, import/ export restrictions, tariffs, and trade barriers.
Multinational corporations (MNCs)
3. It is a common organizational objective and often an expectation of shareholders because it is a
measure of organizational success.
Growth in revenues and profits

4. It can be more difficult because different cultures have different norms, values, and work ethics.
Strategy implementation

5. It can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of
markets.
Foreign operations

6. It can allow firms to establish low-cost production facilities in locations close to raw materials and/or
cheap labor.
Foreign operations

7. Foreign operations may result in reduced tariffs, lower taxes, and favorable political treatment.
Foreign operations

8. It can enable firms to learn the technology, culture, and business practices of other people and to make
contacts with potential customers, suppliers,creditors, and distributors in foreign countries.
Joint ventures

9. It can be achieved from operation in global rather than solely domestic markets.
Economies of scale

10. Most economists argue that ______ harms the world economy because it inhibits trade among
countries and invites retaliation.
Protectionism

11. It allow higher sales volumes and lower-price offerings.

Larger-scale production and better efficiencies

12. It refers to countries imposing tariffs, taxes, and regulations on firms outside the country to favor their
own companies and people.
Protectionism

13. It is a process of doing business worldwide, so strategic decisions are made based on global
profitability of the firm rather than just domestic considerations.
Globalization

14. It includes designing, producing, and marketing products with global needs in mind, instead of
considering individual countries alone.
global strategy

15. It integrates actions against competitors into a worldwide plan.

global strategy

16. Two consecutive quarters ofa decline in real gross domestic product is commonly used as a definition
of a?
Recession

17. To compete successfully in world markets, they must obtain a better knowledge of historical, cultural,
and religious forces that motivate and drive people in other countries.
U.S. managers

18. It is an authoritarian society in terms of schools, churches, businesses, and families. Employers seek
workers who are agreeable, respectful, and obedient, rather than innovative, creative, and independent.
Mexico

19. They are paternalistic, providing workers with more than a paycheck, but in return they expect
commitment. Weekly food baskets, free meals, free bus service, and free day care are often part of
compensation.
Mexican employers

20. It is a fundamental cultural concept in Japan, often translated as “harmony”.

Wa

21. Their culture focuses on interdependence over independence: It emphasizes harmony over personal
desires. Cooperation over dissent. collective well-being. Individuals prioritize group harmony over
personal desires. Cooperation over dissent.
Japanese

22. It is the face one presents in public

 Tatemai

23. It is one’s true feelings.

Hone

24. They often complain that American executives chatter too much.
British executives

25. They feel they are being treated like children when asked to wear name tags
Europeans

26. They are used to interrupting one another.

Executives in India

27. The average corporate tax rate among European Union countries is?
26 percent

28. The Asia-Pacific region has a ___ percent average corporate tax rate?
30 percent

29. The United States and Japan have a ___ percent average rate?
38 percent

30. He suggests that the U.S. government should utilize corporate income tax incentives to reward
companies investing in American occupation, especially high-tech positions.
Ralph Gomory

31. _______ companies that move facilities overseas could help maintain living standards and strengthen
the economy of U.S.

32. These are a vital factor in investment decisions. Balancing incentives and penalties can help promote
investment within a country.
corporate tax rates

33. The lowest corporate tax rates among developed countries reside in _____, and are lowering tax rates
further to attract investment.
Europe

34. Gomory says the United States must use the corporate income tax to ____ companies that invest in
jobs here, especially high-tech jobs, and must _____ companies that move facilities overseas.
reward, penalize

35. It is an integrationan integration of twoof two or more parties that seek the development of a single
enterprise or project for profit, sharing the risks associated with its development.
joint venture

36. Seeks to meet the needs of customers worldwide, with the highest value at the lowest cost.
global strategy

37. In one’s industry, it is an important strategic-management activity. Knowing how to use that information
for one’s competitive advantage is even more important.
Monitoring globalization

38. These are high across the United States and around the world.
Unemployment rates

39. In China, business behavior revolves around_________, or personal relations.

guanxi

40. . In South Korea, activities involve concern for_________, or harmony based on respect of hierarchical
relationships, including obedience to authority.
inhwa

41. In what country it is generally true that the farther north on the continent, the more participatory the
management style.
Europe

42. They are unionized and enjoy more frequent vacations and holidays than U.S. workers.
European workers

43. This is typically a part of employment contracts in Europe.

 Guaranteed permanent employment

44. In Japan, these are used only among family members and intimate friends; even longtime business
associates and coworkers shy away from using this.
First names

45. They have a low tolerance for silence, whereas Asian managers view extended periods of silence as
important for organizing and evaluating one’s thoughts.
U.S. managers

46. They are much more action oriented than their counterparts around the world; they rush to
appointments, conferences, and meetings—and then feel the day has been productive.
U.S. managers

47. This country has gained a reputation for defending women from sexual harassment and minorities from
discrimination, but not all countries embrace the same values.
United States

48. American managers in China have to be careful about how they arrange office furniture because
Chinese workers believe in ________, the practice of harnessing natural forces.
feng shui

49. The practice of harnessing natural forces.

feng shui

50. U.S. managers in Japan have to be careful about_____________, whereby Japanese workers expect
supervisors to alert them privately of changes rather than informing them in a meeting.
Nemaswashio

51. It is an authoritarian society in terms of schools, churches, businesses, and families. Employers seek
workers who are agreeable, respectful, and obedient, rather than innovative, creative, and independent.
Mexico

52. They tend to be activity oriented rather than problem solvers.

Mexican workers

53. They desire harmony rather than conflict; desire for harmony is part of the social fabric in worker–
manager relations.
Mexicans

54. The Japanese place great importance on group loyalty and consensus, a concept called?
Wa

55. It requires that all members of a group agree and cooperate; this results in constant discussion and
compromise.
Wa

56. It is an important business activity in Japan because it strengthens Wa.

Entertaining

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

58. This chapter has provided some basic global information that can be essential to consider in developing
a strategic plan for any organization.
GLOBAL/INTERNATIONAL ISSUES