CHAPTER 1

1. Strategic management focuses on integrating management, ______, and information systems to

achieve organizational success.
a. marketing
b. Finance and accounting
c. production and operations
d. all of the above

2. The goal of strategic management is to

a. achieve competitive advantage.

b. maintain competitive advantage.
c. achieve and maintain competitive advantage.
d. eliminate and abolish competitive advantage.

3. What can be defined as the art and science of formulating, implementing and evaluating cross-
functional decisions that enable an organization to achieve its objectives?
a. Strategy formulation
b. Strategy evaluation
c. Strategy implementation
d. Strategic management

4. In which phase of strategic management are annual objectives especially important?

a. Reduction
b. Formulation
c. Implementation
d. Evaluation

5. What step in the strategic management process involves mobilizing employees and managers to
put strategies into action?
a. Strategy formulation
b. Strategy evaluation
c. Strategy implementation
d. Strategic advantage
6. An organization should take a(n) ________ approach in its industry.

a. adversarial rather than a collegial

b. collegial rather than an adversarial
c. reactive rather than a proactive
d. proactive rather than a reactive
7. Which of the following is NOT a reason given for poor or no strategic planning in an organization?
a. Planning is viewed as a waste of time
b. Trust of management makes it unnecessary
c. Content with current success
d. Too busy "firefighting" to plan ahead

8. Which of the following is NOT a pitfall an organization should avoid in strategic planning?
a. Failing to communicate the plan to employees
b. Involving all managers rather than delegating planning to a "planner"
c. Top managers not actively supporting the strategic-planning process
d. Doing strategic planning only to satisfy accreditation or regulatory requirements

9. Organizations using strategic management are generally ______ than those that do not.
a. more profitable
b. more complex
c. less profitable
d. less successful

10. What are guides to decision making that address repetitive or recurring situations called?
a. Strategies
b. Rules
c. Policies
d. Objectives

CHAPTER 2

11. It includes designing, producing, and marketing products with global news in mind, instead of
considering individual countries alone.m
a. Globalization
b. Global Strategy
c. Multinational Corporations

12. What country have a culture of remaining silent when asked with disturbing questions?
a. Africa
b. China
c. Japan
d. India

13. Listed are the advantages of doing business globally EXCEPT:

a. Firms can gain new customers
b. Economies of scale can be achieved from operation in global than domestic markets
 c. Competitors in foregin markets may not exist or may be less intense
d. Foreign operation could be seized by nationalistic factions

14. This country has paternalistic employers.

a. China
b. Vietnam
c. Indonesia
d. Mexico

15. They rarely do business with companies or people they do not know
a. Japanese
b. Vietnamese
c. Chinese
d. Korean

16. They do not like to disappoint nor to say “no,” verbally or nonverbally,
a. Japanese
b. Indian
c. Korean
d. Vietnamese

17. It is an important consideration when deciding where to locate manufacturing facilities, retail
stores, and other operations.
a. Target Market
b. Culture and Traditions
c. Corporate Taxes
d. Regional organization

18. It is a valued personal trait when conducting business in the United States, but it is not revered in
many of the world’s societies.
a. Practicality
b. Punctuality
c. Reliability
d. Loyalty

19. They place an exceptionally high priority on time, viewing time as an asset.
a. Americans
b. Chinese
c. Japanese
d. Indian
20. They place great importance on concept called Wa, which is about group loyalty and consensus.

a. Chinese
b. Japanese
c. Indian
d. Mexican

CHAPTER 3

21. Which one of the following is NOT one of the arguments against social responsibility as used by
economist Milton Friedman?
a. Spending money for social responsibility is spending the stockholder's money for a general
social interest.
b. Businesses can actually do very little in terms of social responsibility.
c. Spending money on social responsibility is acting from motives other than economic and
may, in the long-run, cause harm to the very society the firm is trying to help.
d. There is one and only one social responsibility of business -- to use its resources and engage
in activities designed to increase its profits so long as it stays within the rules of the game.

22. The concept that proposes private corporations have responsibilities to society that extend
beyond making a profit is known a
a. flexible responsibility
b. social responsibility.
c. social flexibility.
d. managerial responsibility.

23. Who said that the social responsibility of business is a "fundamentally subversive doctrine" and
that the one social responsibility of business is "to use its resources and engage in activities
designed to increase its profits so long as it stays with the rules of the game..."?

a. Adam Smith
b. Edward Freeman
c. Archie Carroll
d. Milton Friedman

24. Economist Milton Friedman has argued that a business's only responsibility is to
a. maximize profits and stay within the rules of the game.
b. sustain its market share.
c. promote the welfare of society.
d. satisfy its employees.

25. Friedman's position on social responsibility

 a. proposes that a lack of social responsibility results in increased government regulations.
b. appears to be losing traction with business executives.
c. suggests that a lack of social responsibility reduces a firm's efficiency.
d. explains why firms are using their social responsibility actions for competitive advantage

26. He proclaims that organizations have tremendous social obligations.

a. Ralph Nader
b. Milton Friedman
c. Archie Carroll
d. Adam Smith

27. Being socially responsibility

a. provides a company with a more positive overall reputation.
b. has opened doors in local communities.
c. has enhanced the company's reputation with consumers.
d. all of the above

28. Which of the following is NOT one of the examples provided as an organizational benefit received
from being socially responsible?
a. They can attract outstanding employees who prefer working for a responsible firm.
b. They are more likely to be welcomed into a foreign country.
c. They are more likely to attract capital infusions from investors who view reputable
companies as desirable long-term investment.
d. They are guaranteed to maximize resource productivity and reduce the average payback
period of investment.

29. It refers to employees reporting any unethical violations they discover or see in the firm
a. Bribery
b. Fraud
c. Whistle-blowing
d. Corruption

30. It concerns what responsibilities the firm has to employees, consumers, environmentalists,
minorities, communities, shareholders, and other groups
a. Social Policy
b. Environmental Sustainability
c. Sustainable Reports
d. Ethics Culture

31. It reveals how a firm’s operations impact the natural environment

a. Ethics Culture
 b. Social Responsibility
c. Environmental Sustainability
d. Sustainability Reports

32. 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
a. ISO 14001
b. Environmental Management System
c. Sustainability Reports
d. ISO 27001

33. It is the extent that an organization’s operations and actions protect, mend, and preserve rather
than harm or destroy the natural environment
a. Morality
b. Sustainability
c. Social responsibility
d. Ethics

34. It is a principles of conduct within organizations that guide decision making and behavior
a. Corporate Governance
b. Social Responsibility
c. Morality
d. Business Ethics

35. Which of the following is not included on the seven principles of admirable business ethics?
a. Honor Commitments and obligations
b. Do unto others as you would have them do unto you
c. Misrepresent, exaggerate, or mislead
d. Be a visibly responsible community citizen

CHAPTER 4

36. What are the two kinds of resources?

a. Tangible and Intangible Resources
b. Good and Bad Resources
c. High and Low Resources
d. Resource Portfolio and Asset Resource

37. It is the full set of resources a firm hold.

a. Asset Resource
b. Resource Portfolio
 c. Tangible Resource
d. Intangible Resource

38. This is a product of integrating several different resources to complete a task or a series of related
tasks
a. Cables
b. Incapabilities
c. Capabilities
d. Manufacturing

39. These are capabilities the firm emphasizes and performs especially well while pursuing its vision
a. Distinctive Competencies
b. Core Competencies
c. Competitive Advantage
d. Non-substitutable

40. They are held by few if any competitors (Coca-cola secret recipe)
a. Common
b. Valuable
c. Rare
d. Non-substitutable

41. Forward integration and backward integration are sometimes collectively referred to as
a. Horizontal integration
b. Diversification
c. Vertical integration
d. Hierarchial integration

42. Websites that sell products directly to consumers are examples of which type of strategy?
a. Backward integration
b. Product development
c. Forward integration
d. Horizontal integration

43. Which of these strategies is effective when the number of suppliers is small and the number of
competitors is large?
a. Conglomerate diversification
b. Forward integration
c. Concentric diversification
d. Backward integration
44. A strategy of seeking ownership or increased control of a firm’s suppliers is
a. Backward integration
b. Forward integration
c. Horizontal integration
d. Vertical integration

45. Which strategy is appropriate when an organization competes in an industry characterized by

rapid technology developments?
a. Retrenchment
b. Product Development
c. Liquidation
d. Market Penetration

CHAPTER 5

46. It exemplifies the complexity of relationships among the functional areas of business
a. Government auditing
b. External auditing
c. Financial ratio analysis
d. Environmental scanning
47. A firm's strengths that cannot be easily matched or imitated by competitors are called
a. internal audits.
b. distinctive competencies.
c. external audits.
d. interrelated properties.

48. Which of the following are NOT mentioned as an example of cultural products?
a. Sagas
b. Rituals
c. Rites
d. Emotions

49. A standardized set of behaviors used to manage anxieties is called a

a. Ritual
b. Folktale
c. Rite
d. Metaphor

50. What is the term for a historical narrative describing the unique accomplishments of a group and
its leaders?
a. Myth
b. Story
 c. Saga
d. Rite

51. What is the first step in the comprehensive strategic-management model?

a. Developing vision and mission statements
b. Performing External Audits
c. Performing Internal Audits
d. Measuring and evaluating performance

52. The purpose of a mission statement is to declare all of these except

a. An annual financial plan
b. A statement of purpose
c. A statement of beliefs
d. Whom an organization wants to serve

53. Effective and carefully planned mission statement

a. Require major changes every few months
b. Do not require revision
c. Require infrequent major changes, but are always subject to revision
d. Require major changes every few years

54. Which group should be classified as stakeholders?

a. Government
b. Creditors
c. Suppliers
d. All of the above

55. In the process of developing a mission statement, it is important to involve

a. The board of directors only
b. Lower-level management only
c. As many managers as possible
d. Upper-level management only

56. As indicated in the strategic-management model, a clear ________ is needed before alternative
strategies can be formulated and implemented.
a. short-term objective
b. implementation plan
c. audit policy
d. mission statement

57. Effective and carefully planned mission statements

a. require major changes every few months.
 b. require major changes every few quarters.
c. require major revision every few years.
d. require infrequent major changes, but are always subject to revision

58. Which of the following is NOT one of the nine recommended components of a mission statement?
a. Strategies
b. Self-concept
c. Employees
d. Markets

59. According to the comprehensive strategic-management model, which step immediately follows
the establishment of long-term objectives?
a. Developing vision and mission statements
b. Performing external audits
c. Performing internal audits
d. Generating, evaluating, and selecting strategies

60. Which component of a mission statement addresses the firm's distinctive competence or major
competitive advantage?
a. Technology
b. Philosophy
c. Concern for public image
d. Self-concept

61. According to Campbell and Yeung, what is/are most likely associated with behavior and the
present?
a. Mission
b. Values
c. Long-term objectives
d. Vision

62. After a draft mission statement has been developed, it is important to

a. ask managers to read several articles about mission statements as background information.
b. vote on the mission statement.
c. ask managers to prepare a mission statement for the organization.
d. request modifications, additions, and deletions.

63. A(n) ________ with expertise in developing vision and mission statements and with unbiased
views, can at times manage the process more effectively than an internal group or committee of
managers.
a. external auditor
b. outside process analyst
 c. internal auditor
d. outside facilitator

64. The process of developing a vision and mission statement often includes which of these as the first
activity?
a. Requesting that managers modify the current documents
b. Asking managers to read selected articles about vision and mission statements
c. Asking managers to prepare a vision statement for the organization
d. A brainstorming session on whether the organization should have only a vision statement

65. In the process of developing a mission statement, it is important to involve

a. as few managers as possible.
b. as many managers as possible.
c. upper-level management only.
d. lower-level management only.
e. the board of directors only.

CHAPTER 6

66. It involves administering surveys, analyzing consumer information, developing customer profiles,
etc.
a. Product and Service Planning
b. Distribution
c. Marketing Research
d. Customer Analysis

67. It can uncover critical stregths and weaknesses

a. Distribution
b. Marketing Research
c. Customer Analysis
d. Cost/Benefit Analysis

68. Its function is to determine the amount of funds that are retained in a firm compared to the
amount paid out to tstockholders
a. Investment Decision
b. Financing Decisions
c. Dividend Decisions

69. The____ contends that internal resources are more important for a firm than external factors in
achieving and sustaining competitive advantage.
 a. Organizational Culture
b. Marketing
c. Resource-Based View Approach
d. Internal Audit

70. Which of the following is not one of the basic activities in the functions of management
a. Planning
b. Supervising
c. Motivating
d. Controlling

71. This includes various marketing activities such as advertising, sales promotion, publicity, personal
selling, sales force management, customer relations, and dealer relations.
a. Selling
b. Customer Analysis
c. Product and Service Planning
d. Marketing Research

72. This consists of all those activities that transform inputs into goods and services
a. Value Chain Analysis
b. Production/Operations Function
c. Management Information Systems
d. Benchmarking

73. an analytical tool used to determine whether a firm's value chain activities are competitive
compared to rivals and thus conducive to winning in the marketplace
a. Value Chain Analysis
b. Production/Operations Function
c. Management Information Systems
d. Benchmarking

74. It collects, synthesizes, codes, stores, and presents information in a manner that it answers
questions about operation and strategies?
a. Marketing Research
b. Management Audit
c. Management Information Systems
d. Customer Analysis

75. The question “Are facilities, resources, and markets strategically located?” is part of what
checklist?
a. Research and Development Audit
b. Marketing Audit
 c. Management Audit
d. Production and Operations Audit

76. The question “Are present channels of distribution reliable and cost effective?” is part of what
checklist?
a. Finance and accounting audit
b. Marketing Audit
c. Production and Operations Audit
d. Management Audit

77. The question “Are management information and computer systems adequate?” is part of what
checklist?
a. Research and development audit
b. Marketing Audit
c. Production and Operations Audit
d. Management Audit

78. The question “Are present products technologically competitive?” is part of what checklist?
a. Production and Operations Audit
b. Marketing Audit
c. Research and Development Audit
d. Management Audit

79. It is especially important when a firm is striving to implement a market development or forward
integration strategy.
a. Distribution
b. Pricing
c. Marketing research
d. Product planning
e.
80. It is significant when a company is pursuing product development or diversification.
a. Customer analysis
b. Pricing
c. Product and Service Planning
d. Sales promotion