Reference no: EM133442827

Question 1

All of the following would be considered to be a part of a company's macro environment EXCEPT:

a. marketing channel forces

b. demographic forces

c. natural forces

d. technological forces

Question 2

Directors' responsibilities are unlikely to include .....................................

a. a fiduciary duty

b. a duty to keep proper accounting records

c. a duty of care

d. a duty to propose high dividends for shareholders

Question 3

An organization is said to have ______________ when it has several different businesses that are independent and that formulate their own strategies.

a. operational units

b. competitive advantages

c. strategic business units

d. legal subunits

Question 4

If the company's offer delivers greater value by exceeding the competitor's offer on important attributes, the company can charge a higher price and ________, or it can charge the same price and ________.

a. lose profits; gain more market share

b. earn higher profits; lose profits

c. earn higher profits; gain more market share

d. earn lower profits; gain higher profits

Question 5

The primary responsibilities of the board of directors include all but which of the following:

a. Appoint senior executives to manage the company in accordance with the established strategies, plans, policies, and procedures.

b. Define the company's mission and goals.

c. Establish or approve strategic plans and decisions to achieve these goals.

d. Make managerial decisions that will increase the company's stock price.

Question 6

Which of the following has the greatest potential to transform an industry's structure?

a. a change in a competitor's management

b. a change in a competitor's pricing structure

c. the exit of a competitor from the industry

d. the expansion of a distribution channel

Question 7

In the first step of strategic management, identifying the current strategies and goals provides ___________.

a. important information about an organization's specific resources and capabilities

b. a basis to determine if the goals need to be changed

c. an understanding of what the competition is doing

d. an idea of what trends and changes are occurring

Question 8

If your company were to make light bulbs to be used in photocopiers, you would most likely be selling to a ________________ market.

a. business

b. government

c. service

d. reseller

Question 9

Most companies prefer to aim competition against ________.

a. the market leader

b. weak competitors

c. new competitors

d. their biggest competitor

Question 10

Most large companies consist of four organizational levels: the ________, the division level, the business unit level, and the product level.

a. major stakeholder level

b. board of director level

c. corporate level

d. management team level

Question 11

How can a cost leader use e-business to reduce costs?

a. by using stand-alone locations only

b. by personally testing and evaluating job applicants

c. by adding a sales phone line and a sales force

d. by using Web-based inventory control systems that reduce storage costs

Question 12

________ are the two basic strategies for creating value and attaining a competitive advantage in an industry.

a. Diversification and niche marketing

b. Industry leadership and market dominance

c. Customer satisfaction and product innovation

d. Cost leadership and differentiation

Question 13

A firm should compete with ________ competitors in order to sharpen its abilities. Succeeding against these competitors often provides greater returns.

a. distant

b. mediocre

c. weak

d. strong

Question 14

What company has a competitive advantage in developing and marketing products because it stresses risk taking and innovation?

a. 3M

b. Wal-Mart

c. Southwest Airlines

d. Dell

Question 15

What e-business strategy uses both online and traditional stand-alone locations?

a. focus

b. clicks-and-bricks

c. differentiation

d. functional

Question 16

If your company were to make a product, such as a suit of clothes, and sell that product to a retailer, your company would have sold to the ___________ market.

a. service

b. reseller

c. business

d. government

Question 17

Differentiation as a strategy requires a firm to ___________.

a. aggressively search out efficiencies to maintain the lowest cost structure

b. aim at a cost advantage in a niche market

c. be unique in its product offering

d. aim to be similar to its competition in all operations

Question 18

What is a culture that supports the firm's chosen strategy?

a. a strong culture

b. a strategically appropriate culture

c. a weak culture

d. a somewhat physically powerful culture

Question 19

A ______________ is any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives.

a. marketing intermediary

b. supplier

c. public

d. competitive set

Question 20

The third step in strategic management is related to analysis of ____________.

a. the external environment

b. time pressures involved in serving the customer

c. the alternatives the firm faces

d. the internal environment

Question 21

Which of the following is the best example of a product disruption driving industry change?

a. introduction of Apple's iPad

b. merger of United and Continental

c. redesign of Toyota's Prius

d. AT&T's purchase of T-Mobile

Question 22

What drawback of a strong organizational culture should a manager consider when completing the strategic management process?

a. Employees have less understanding of the planning process.

b. It cancels out any organizational distinctive competency.

c. It can be more difficult to change.

d. Employee attitudes tend to be strong, but their organizational values are weak.

Question 23

What is a strategic design for how a company intends to profit from its strategies, work processes, and work activities?

a. competitive model

b. strategic model

c. strategic management model

d. business model

Question 24

In a SWOT analysis, strengths and weaknesses are ________, and the opportunities and threats are ________.

a. secondary; primary

b. external; internal

c. primary; secondary

d. internal; external

Question 25

What are the three main types of corporate strategies?

a. growth, stability, and renewal

b. concentration, integration, and diversification

c. retrenchment, turnaround, and clicks-and-bricks

d. cost leadership, differentiation, and focus