Question 1

Anything that a firm does especially well compared to rival firms is referred to as
a. unsustainable advantage.
b. Anything that a firm does especially well compared to rival firms is referred to as
c. Competitive advantage
d. an external opportunity.
e. opportunity cost.

Question 2

Long-term objectives should be all of the following EXCEPT
a. consistent
b. reasonable.
c. challenging.
d. measurable.
e. continually changing.

Question 3

According to your text, backward integration is effective in all of these cases except
a. when an organization competes in an industry that is growing rapidly.
b. when present suppliers have high profit margins.
c. when an organization needs to acquire a needed resource quickly.
d. when an organization has both capital and human resources to manage the new business of supplying its own raw materials.
e. when the advantages of stable prices are not important.

Question 4

The ideal length of a vision statement is
a. several paragraphs.
b. one page.
c. several sentences.
d. as long as is necessary to convey the message.
e. one sentence.

Question 5

Which of the following is not part of an external audit?
a. Analyzing financial ratios
b. Studying the political environment
c. Analyzing competitors
d. Analyzing social, cultural, demographic and natural environment forces
e. Analyzing available technologies

Question 6

From an economical standpoint and in general, what happens to American goods in overseas markets when there is a strong dollar?
a. They are cheaper.
b. They are desirable.
c. They are more expensive.
d. They are more attractive
e. They are less expensive.

Question 7

What is defined as the number and significance of markets that a firm competes in with rivals.

a. entry of new rivarly
b. market commonality
c. market development
d. market development
e. market competition

Question 8

According to your text, a systematic and ethical process for gathering and analyzing information about the competition's activities and general trends to further a business' own goals is called
a. competitive intelligence.
b. industrial espionage.
c. unethical business practices.
d. artificial intelligence.
e. competitive advantage.

Question 9

Horizontal integration be an especially effective strategy in which of the following situations?
a. when decreased economies of scale provide major competitive advantages
b. when competitors are succeeding due to managerial expertise or having particular resources an organization possesses
c. when an organization has neither the capital nor human talent needed to successfully manage an expanded organization
d. when an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for " tending substantially & quot; to reduce competition
e. when an organization competes in a slowing industry

Question 10

According to your text, how does life in Mexico compare to life in the United States?
a. It is faster.
b. It is more hectic.
c. It is more competitive.
d. It is more punctuality-driven.
e. It is slower.

Question 11

The first step in developing an IFE Matrix is:
a. Listing key internal strengths and weaknesses
b. Determining the organization's structure
c. Summing the weighted scores for each variable
d. Assigning a weight to each factor
e. Identifying the organization's functions of business

Question 12

Which one of the following is usually the most powerful regarding Porter's the five competitive forces?
a. Bargaining power of suppliers
b. Potential development of substitute products
c. Rivalry among employees
d. Rivalry among competing firms
e. Bargaining power of consumers

Question 13

Internal ________ are controllable activities in an organization that are performed especially well.
a. incompetencies
b. objectives
c. opportunities
d. factors
e. strengths

Question 14

When considering the impact of the I/O, theorists agree that the following contributes LEAST to firm's performance?
a. Level of competitiveness
b. Economies of scale
c. Barriers to market entry
d. Product differentiation
e. Internal resources

Question 15

When developing a mission statement, after a draft mission statement has been developed, it is important to
a. ask managers to prepare a mission statement for the organization.
b. vote on the mission statement.
c. ask managers to seek support for the mission statement from their subordinates.
d. request modifications, additions, and deletions to the mission statement.
e. ask managers to read several articles about mission statements as background information.

Question 16

According to the strategic-management model, a clear ________ is needed before long-term

objectives can be established.
a. short-term objective
b. evaluation strategy
c. mission statement
d. audit policy
e. implementation plan

Question 17
During what stage of strategic management are a firm's specific internal strengths and weaknesses determined?
a. Evaluation
b. Implementation
c. Formulation
d. Feedback
e. Goal Setting

Question 18

Which of the following is a process of doing business worldwide, so strategic decisions are made based on global profitability of the firm rather than just domestic considerations?
a. World recession
b. Assimilation
c. Multinational corporation
d. Globalization
e. Protectionism

Question 19

Which phase of strategic management is called the action phase?
a. Strategy formulation
b. Strategy implementation
c. Strategy evaluation
d. Measuring performance
e. Competing advantages

Question 20

When you consider these two institutions, both business and military organizations must ________ and ________ to be successful.
a. adapt to change; continually improve
b. be impervious to change; stay the course
c. consider improvement as necessary; do what is best
d. shun change; stay the course
e. be impervious to change; continually improve

Question 21

Divestiture is a type of strategy that would be classified as
a. Conservative
b. Competitive
c. Defensive
d. Aggressive
e. Offensive

Question 22

When considering an external audit, the process needs to include
a. stockholders and external government agencies.
b. as many managers and employees as possible.
c. between 15 to 20 managers for it to be valid.
d. only top level managers, as it is a planning function
e. primarily front-line supervisors

Question 23

Regarding the BCG Matrix, a _________division that has a low relative market share position and competes in a slow-growth industry is referred to as a
a. Dog.
b. Star.
c. Cowboy
d. Question Mark.
e. Cash Cow.

Question 24

Consider the following statements and which one is accurate regarding business intelligence?
a. Intelligence gathering is an unethical business practice.
b. Running an intelligence program requires many people.
c. Business intelligence is not equal to espionage.
d. Collecting intelligence about competitors violates antitrust laws.
e. Running an intelligence program requires many computers and other resources.

Question 25

According to your text business or military success is
a. generally the happy result of accidental strategies.
b. undermined by the element of surprise.
c. the product of both attention to changing external and internal conditions and the insightful adaptations to those conditions.
d. none of the above.
e. unrelated to external conditions.

Question 26

Emotions can be a blessing and a curse in business, but in developing a mission statement, arousing emotion
a. is important.
b. is not a benefit.
c. is counterproductive.
d. is futile.
e. should be avoided if possible.

Question 27

A mission statement is very important, therefore in the process of developing a mission statement, it is important to involve
a. lower-level management only.
b. upper-level management only.
c. as many managers as possible.
d. everyone that is going to be a part of the organization
e. as few managers as possible to reduce to confusion

Question 28

Americans place an exceptionally high priority on ________ whereas many foreigners place more worth on ________.
a. time; relationships
b. relationships; time
c. silence; relationships
d. formality; informality
e. silence; time

Question 29

An activity ratio would be considered
a. Current ratio
b. Debt-to-equity
c. Earnings per share
d. Net profit margin
e. Average collection period

Question 30

What are enduring declarations of purpose that distinguish one business from other similar firms?
a. Objectives
b. Policies
c. Mission statements
d. Rules
e. Employee conduct guidelines

Question 31

In accordance to Michael Porter, which strategy offers products or services to a niche group of customers at the lowest price available on the market?
a. Cost Leadership - Low Cost
b. Cost Leadership - Best Value
c. Focus - Low Cost
d. Focus - Best Value
e. Differentiation Question

32 Which of the following does the text call an up-front investment in success?
a. Staffing
b. Controlling
c. Motivating
d. Organizing
e. Planning

Question 33

A firm's strengths that cannot be easily matched or imitated by competitors are called a. internal audits.
b. distinctive competencies.
c. interrelated properties.
d. external audits.
e. internal properties.

Question 34

Regarding tax rates, which of the following nations has the highest corporate tax rate?
a. The USA
b. France
c. Great Britain
d. Germany
e. Ireland

Question 35

When designing an EFE Matrix, what is the initial/first step?
a. Determining four competitors
b. Identifying key external factors in the industry
c. Summing the weighted score for each competitor
d. Drawing the horizontal and vertical lines for the matrix
e. Calculating the sales of each competitor.