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Question 1: Why is doing strategic planning so difficult?

  • People seldom agree on where the company stands right now and how it is performing because they are biased, have a limited perspective, and often have personal or hidden agendas, that is, politics gets in the way of candor and truth
  • Information the company and its people possess is incomplete, dated, often inaccurate, and sometimes not useful, while the information they most need is often unavailable
  • The planning horizon is typically three to five years into the future, a future that is unknown, ambiguous, and changing before our very eyes
  • It takes too much effort, time, and money, and besides, "the company is doing fine"
  • All of the above

Question 2: Which of the following is not a concentration strategy?

  • Develop innovative products
  • Invest in developing a new technology
  • Acquire a company in another industry
  • Expand internationally
  • Conglomerate-diversification strategy

Question 3: Vision statements that include a timeframe in which the vision might be achieved are more useful than those that don't.

  • True
  • False

Question 4: Which of the following is a good reason to have a formal set of corporate values?

  • It helps earn the public trust
  • It communicates to all employees how to behave
  • It fosters loyalty in consumers
  • It develops a culture based on those values
  • All of the above

Question 5: Which of the following is not a key personality trait of leadership?

  • Being visionary
  • Having strong moral and ethical principles
  • Humility
  • Being liked
  • Having integrity

Question 6: Every company that does business in the US must have its financial statements audited.

  • True
  • False

Question 7: Mergers and acquisitions are the same.

  • True
  • False

Question 8: A company's purpose is its vision statement.

  • True
  • False

Question 9: Which of the following is not regulated?

  • Education
  • Electric utilities
  • Computers
  • Prescription drugs
  • Airline safety

Question 10: A company's publicly stated underlying purpose has value because it:

  • Motivates employees
  • Attracts the right kind of person to want to work for the company
  • Generates positive public relations
  • Expresses values with which employees identify
  • All of the above

HR Management, Management Studies

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