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Modern Management, 13e (Certo/Certo)
Chapter 9 Strategic Planning: Strategies, Tactics, and Competitive Dynamics
1) The commitment principle is a management guideline that advises managers to totally commit
themselves to strategic planning.
Answer: FALSE
Page Ref: 197
Learning Outcome: Identify the steps of the strategic management process and describe
common organizational and business strategies
Objective: 1
Difficulty: Easy
Classification: Conceptual
2) Strategy is the end result of strategic planning.

Answer: TRUE
Page Ref: 197
Objective: 1
Difficulty: Easy
3) Strategic management is the process of ensuring an organization possesses and benefits from
the use of an appropriate organizational strategy.
Answer: TRUE
Page Ref: 197-198
Objective: 2
Difficulty: Easy
4) In general, the strategic management process is thought to consist of sequential and continuing
steps.
Answer: TRUE
Page Ref: 197-198
Objective: 2
Difficulty: Easy
1
Copyright © 2014 Pearson Education, Inc.
5) The first step in the strategic management process is the establishment of organizational
direction.
Answer: FALSE
Page Ref: 198
Objective: 2
Difficulty: Easy
6) Managers only perform environmental analysis to help them understand what is happening
outside their organization.
Answer: FALSE
Page Ref: 198-200
Objective: 3
Difficulty: Easy
7) The general environment of an organization's external environment contains international,

labor, customer, competitor, and supplier components.
Answer: FALSE
Page Ref: 199-200
Objective: 3
Difficulty: Easy
8) Demographics are the statistical characteristics of a population.

Answer: TRUE
Page Ref: 200
Objective: 3
Difficulty: Easy
9) The legal component of the general environment is related to government affairs.

Answer: FALSE
Page Ref: 200
Objective: 3
Difficulty: Easy
2
10) Motivations, status symbols, and attitudes of the other country are all important aspects of
the international component of the organization's operating environment.
Answer: TRUE
Page Ref: 201
Objective: 3
Difficulty: Easy
11) "In what kind of environment does the organization now exist?" is one of the four basic
questions required for critical question analysis.
Answer: TRUE
Page Ref: 204
AACSB: Reflective Thinking Skills
Objective: 4
Difficulty: Easy
12) SWOT is an acronym for Social Welfare Operating Test.

Answer: FALSE
Page Ref: 204
Objective: 4
Difficulty: Easy
13) The GE Multifactor Portfolio Matrix was designed to be more complete than the BCG
Growth-Share Matrix.
Answer: TRUE
Page Ref: 206
Objective: 4
Difficulty: Easy
3
14) According to the GE Multifactor Portfolio Matrix, businesses falling in cells that form a
diagonal from lower left to upper right are the strongest and the ones the company should invest
in and help to grow.
Answer: FALSE
Page Ref: 206
Objective: 4
Difficulty: Easy
15) Strategic implementation is the last step of the strategic management process.
Answer: FALSE
Page Ref: 208
Objective: 5
Difficulty: Easy
16) Tactical planning is long-range planning that emphasizes the current operations of various
parts of the organization.
Answer: FALSE
Page Ref: 208-209
Objective: 6
Difficulty: Easy
17) Because tactical plans are based primarily on a prediction of the future, and strategic plans
are based on known circumstances that exist within the organization, tactical plans are generally
less detailed than strategic plans.
Answer: FALSE
Page Ref: 208-209
Objective: 6
Difficulty: Easy
4
18) Because strategic planning focuses on the long term and tactical planning on the short term,
strategic plans cover a relatively long period of time whereas tactical plans cover a relatively
short period of time.
Answer: TRUE
Page Ref: 209
Objective: 6
Difficulty: Easy
19) Competitor motivation refers to the incentives that an organization has to take action.
Answer: TRUE
Page Ref: 210-211
Objective: 7
Difficulty: Easy
20) Competitor capability refers to a firm's ability to undertake an action.

Answer: TRUE
Page Ref: 211
Objective: 7
Difficulty: Easy
21) Long-range planning that focuses on the organization as a whole is ________.

A) operational planning
B) organizational planning
C) strategic planning
D) tactical planning
E) managerial planning
Answer: C
Page Ref: 197
Objective: 1
Difficulty: Easy
5
22) In strategic planning, managers consider the organization as a total unit and ask themselves
what must be done in the long term, which is usually ________.
A) three to five years into the future
B) in the coming year
C) one to two years into the future
D) five to ten years from now
E) five to twenty years from now
Answer: A
Page Ref: 197
Objective: 1
Difficulty: Easy
23) A management guideline that advises managers to commit funds for planning only if in the
foreseeable future they can anticipate a return on planning expenses as a result of the long-range
planning analysis is termed ________.
A) strategic planning
B) the commitment principle
C) organizational planning
E) the principle of the objective
Answer: B
Page Ref: 197
Objective: 1
Difficulty: Easy
24) A broad and general plan developed to reach long-term organizational objectives is a(n)
________.
A) tactic
B) scenario
C) operational plan
D) organizational goal
E) strategy
Answer: E
Page Ref: 197
Objective: 1
Difficulty: Easy
6
25) Which of the following is true about strategy?
A) Strategy is a general plan developed to reach short-term goals without any planning.
B) Organizational strategy focuses only on the marketing and financial aspects of a business.
C) Smaller organizations are more precise than large organizations in developing organizational
strategy in order to meet their goals sooner.
D) Strategy is actually the end result of strategic planning.
E) Research and development are not a part of an organization's strategy.
Answer: D
Page Ref: 197
Objective: 1
Difficulty: Easy
26) Axis Cars is an automobile company based out of Delaware. They need to follow an
organizational strategy to regain the market share they recently lost to Toyota. Which of the
following strategies will accomplish this objective?
A) They should increase people efficiency.
B) They should resize and downsize present models.
C) They should increase machine efficiency.
D) They should modernize the car batteries.
E) They should merge with another top-selling automobile brand.
Answer: B
Page Ref: 197
AACSB: Analytic Skills
Objective: 1
Difficulty: Moderate
Classification: Application
7
27) Pasta Central, a fast-food chain, has realized that if it wants to beat its leading competitor and
improve market share, it must improve its productivity. Which of the following strategies is most
likely to help Pasta Central to achieve this objective?
A) reassess their market
B) downsize
C) decrease machine efficiency
D) develop valuable real estate holdings
E) increase people efficiency
Answer: E
Page Ref: 197
Objective: 1
28) ________ is the process of ensuring that an organization possesses and benefits from the use
of an appropriate organizational strategy.
A) Strategic planning
B) Strategy visualization
C) Decision making
D) Strategic management
E) Integrated business planning
Answer: D
Page Ref: 197-198
Objective: 2
Difficulty: Easy
29) The last step in the strategic management process is ________.

A) establishment of an organizational direction
B) environmental analysis
C) strategy formulation
D) strategy implementation
E) strategic control
Answer: E
Page Ref: 198, 208
Objective: 2
Difficulty: Easy
8
30) The first step of strategic management is designed to ________.
A) establish an organizational direction
B) formulate strategy
C) study the organizational environment
D) advise managers to commit funds for planning
E) control the environment
Answer: C
Page Ref: 198-199
Objective: 3
31) The level of an organization's external environment that contains components having broad
long-term implications for managing the organization is the ________.
A) general environment
B) financial environment
C) demographic environment
D) internal environment
E) operating environment
Answer: A
Page Ref: 199
Objective: 3
Difficulty: Easy
32) The ________ component is that part of the general environment that indicates how
resources are being distributed and used within the environment.
A) social
B) economic
C) political
D) international
E) legal
Answer: B
Page Ref: 199-200
Objective: 3
Difficulty: Easy
9
33) The relative degrees of worth that society places on the way in which it exists and functions
are ________.
A) political ideologies
B) economic conditions
C) demographics
D) social values
E) environmental factors
Answer: D
Page Ref: 200
Objective: 3
Difficulty: Easy
34) Which of the following is true about social values?

A) Social values are the statistical characteristics of a population.
B) It includes changes in numbers of people among various population segments.
C) Changes in social values can influence the reception of goods and services within the
organization's environment.
D) Social values are helpful for developing a strategy aimed at recruiting new employees to fill
positions within an organization.
E) The relative degrees of worth that society places on the ways in which it functions can change
dramatically over time.
Answer: E
Page Ref: 200
Objective: 3
Difficulty: Difficult
35) Lobbying efforts by interest groups and progress on the passage of laws are examples of the
________ component of the general environment.
A) social
B) political
C) legal
D) technological
E) international
Answer: B
Page Ref: 200
Objective: 3
Difficulty: Easy
10
36) Which of the following components includes new approaches to producing goods and
services?
A) the technology component
B) the political component
C) the labor component
D) the legal component
E) the productive component
Answer: A
Page Ref: 200
Objective: 3
Difficulty: Easy
37) The level of an organization's external environment that contains components normally
having relatively specific and immediate implications for managing the organization is the
________.
A) demographic environment
B) general environment
C) industry environment
D) international environment
E) internal environment
Answer: C
Page Ref: 202
Objective: 3
Difficulty: Easy
38) Porter's model emphasizes ________.

A) strengths, weaknesses, opportunities, and threats
B) stars, dogs, cash cows, and question marks
C) competitive forces in an industry
D) business strength and industry attractiveness
E) environmental analysis
Answer: C
Page Ref: 202
Objective: 3
Difficulty: Easy
11
39) According to Porter, threat of new entrants refers to ________.
A) the power that customers have over the firms
B) the power that suppliers have over the firms
C) the extent to which customers may use services from another industry instead of the focal
industry
D) the ability of new firms to enter an industry
E) the intensity of the rules of an organization
Answer: D
Page Ref: 202
Objective: 3
Difficulty: Easy
40) According to Porter, ________ refers to the power that customers have over the firms
operating in an industry.
A) the threat of new entrants
B) buyer power
C) supplier power
D) the threat of substitute products
E) intensity of rivalry
Answer: B
Page Ref: 202
Objective: 3
Difficulty: Easy
41) Which level of the organization's environment exists inside the organization and normally
has immediate and specific implications for managing the organization?
A) the general environment
B) the internal environment
C) the operating environment
D) the external environment
E) the political environment
Answer: B
Page Ref: 202
Objective: 3
Difficulty: Easy
12
42) ________ is the purpose for which — and the reason why — an organization exists.
A) Organizational objective
B) Organizational strategy
C) Organizational mission
D) Organizational policy
E) Organizational rule
Answer: C
Page Ref: 203
Objective: 3
Difficulty: Easy
43) The document that is written by management and describes and explains what the purpose
for which the organization exists is the ________.
A) mission statement
B) strategic plan
C) operating plan
D) annual budget
E) vision statement
Answer: A
Page Ref: 203
Objective: 3
Difficulty: Easy
44) Which of the following statements accurately reflects the relationship between the mission
and the objectives?
A) The mission statement reflects and flows naturally from the objectives.
B) The objectives reflect and flow naturally from the mission.
C) There is no direct relationship between the mission and the objectives.
D) The mission statement stands alone and has no influence on the objectives.
E) The mission and the objectives influence each other.
Answer: B
Page Ref: 203
Objective: 3
Difficulty: Easy
13
45) ________ is the process of determining appropriate courses of action for achieving
organizational objectives and thereby accomplishing organizational purpose.
A) Establishment of organizational direction
B) Strategy implementation
C) Strategy control
D) Strategy formulation
E) Environmental analysis
Answer: D
Page Ref: 203-204
Objective: 3
Difficulty: Easy
46) The answer to which of the following critical questions indicates whether the organization is
progressing satisfactorily or not?
A) What are the purposes and objectives of the organization?
B) Where is the organization presently going?
C) In what kind of environment does the organization now exist?
D) What can be done to better achieve organizational goals in the future?
E) What does our SWOT analysis show?
Answer: B
Page Ref: 204
Objective: 4
Difficulty: Easy
47) Which of the following is true about a star SBU?

A) Star SBUs may barely support themselves; in some cases, they actually drain off cash
resources generated by other SBUs.
B) Star SBUs provide the organization with large amounts of cash because their market is not
growing significantly.
C) An SBU that is a star has a small share of a high-growth market.
D) An SBU that is a star has a high share of a high-growth market and typically needs large
amounts of cash to support rapid and significant growth.
E) Because the market of star SBUs is not growing significantly, the cash is generally used to
meet the financial demands of the organization in other areas.
Answer: D
Page Ref: 205
Objective: 5
Difficulty: Easy
14
48) An SBU with a large market share of a low-growth market is a ________.
A) star
B) dog
C) cash cow
D) question mark
E) low-cost leader
Answer: C
Page Ref: 205
Objective: 5
Difficulty: Easy
49) An SBU of FlexiTech Inc. manufactures CD drives. Although it has a large share in the
market and the product makes significant profits for the company, market growth potential is
limited. Under which quadrant of the BCG Growth-Share Matrix does the CD manufacturing
unit fall?
A) dog
B) question-mark
C) star
D) cash cow
E) low-cost leader
Answer: D
Page Ref: 205
Objective: 5
15
50) GenEx Group manufactures a variety of products for different markets. One of its SBUs,
GenEx Textiles, is one of its leading revenue generators. GenEx Textiles is the leading player in
the market for textiles. However, the parent company has realized that growth prospects in the
textile industry is limited. The company has already exploited the market to the fullest and
sustained growth in the future is unlikely. In fact, a substantial amount of the revenue generated
from this textile business is used to fund other SBUs of the parent company. GenEx Textiles is
an example of a ________ for the GenEx Group.
A) star
B) dog
C) cash cow
D) question mark
E) cost-leader
Answer: C
Page Ref: 205
Objective: 5
51) Which of the following is true about a cash cow?

A) Cash cows can barely support themselves; in some cases, they actually drain off cash
resources generated by other SBUs.
B) An SBU that is a cash cow has a small share of a high-growth market.
C) An SBU that is a cash cow has a large share of a market that is growing only slightly.
D) An SBU that is a cash cow has a high share of a high-growth market and typically needs large
amounts of cash to support rapid and significant growth.
E) Cash cows generate large amounts of cash for the organization and are usually segments in
which management can make additional investments and earn attractive returns.
Answer: C
Page Ref: 205
Objective: 5
Difficulty: Easy
16
52) An SBU with a small market share of a high-growth market is a ________.
A) star
B) dog
C) cash cow
D) question mark
E) low-cost leader
Answer: D
Page Ref: 205
Objective: 5
Difficulty: Easy
53) Kreme Industries has an SBU Kreme Makeups, Inc., that offers a wide variety of makeup
products and accessories for women. Although market growth rate is high, the SBU's current
market share is low and it needs substantial investment. The parent company is trying to decide
if Kreme Makeups has long-term sustainability before investing any more cash in it. In the
context of the BCG matrix, this SBU of Kreme Industries would be classified as a ________.
A) question mark
B) cash cow
C) dog
D) star
E) low-cost leader
Answer: A
Page Ref: 205
Objective: 5
54) An SBU with a relatively small market share of a low-growth market is a ________.
A) star
B) dog
C) cash cow
D) question mark
E) low-cost leader
Answer: B
Page Ref: 205-206
Objective: 5
Difficulty: Easy
17
55) Which of the following strategy formulation tools was specifically developed to expand on
the BCG Growth-Share Matrix?
A) Porter's Model for Industry Analysis
B) the critical questions analysis
C) SWOT analysis
D) the GE Multifactor Portfolio Matrix
E) environmental analysis
Answer: D
Page Ref: 206
Objective: 5
Difficulty: Easy
56) Which of the following strategy formulation tools outlines the primary forces that determine
competitiveness within an industry and illustrates how those forces are related?
A) Porter's Model for Industry Analysis
B) the BCG Growth-Share Matrix
C) SWOT analysis
D) the GE Multifactor Portfolio Matrix
E) the Delphi technique
Answer: D
Page Ref: 206
Objective: 5
18
57) Which of the following is true about the GE Multifactor Portfolio Matrix?
A) Businesses falling in the cells that form a diagonal from lower left to upper right in the matrix
are strong businesses that should be invested in regularly.
B) Businesses in the cells below and to the right of the diagonal are medium-strength businesses
that should be invested in only selectively.
C) The GE Multifactor Portfolio Matrix does not consider factors such as various types of risk
associated with product development.
D) In the matrix, businesses above and to the left of the diagonal are the weakest and serious
candidates for divesture.
E) This tool helps managers develop organizational strategy that is based primarily on market
attractiveness and business strengths.
Answer: E
Page Ref: 206
Objective: 5
Difficulty: Easy
58) With the GE Multifactor Portfolio Matrix, the businesses falling in the cells that form a
diagonal from lower left to upper right are ________.
A) the strongest and the ones the company should invest in and help grow
B) the strongest and the ones the company should sell
C) medium-strength and should be invested in only selectively
D) the lowest in strength and serious candidates for divestiture
E) the lowest in strength and serious candidates for retrenchment
Answer: C
Page Ref: 206
Objective: 5
Difficulty: Easy
19
59) Which strategy is an organization following when it focuses on making an organization more
competitive by developing a product or products that customers perceive as being different from
products offered by competitors?
A) cost leadership
B) differentiation
C) focus
D) stability
E) divestiture
Answer: B
Page Ref: 207
Objective: 5
Difficulty: Easy
60) The Razzmatazz Group of companies plans to launch a new flavor of crackers that is distinct
and unusual. Which of the following strategies is the company following to become more
competitive?
A) stability
B) cost leadership
C) divestiture
D) focus
E) differentiation
Answer: E
Page Ref: 207
Objective: 5
61) When an organization focuses on making itself more competitive by producing products
more cheaply than competitors can, it is following a ________.
A) stability strategy
B) differentiation strategy
C) focus strategy
D) cost leadership strategy
E) divestiture strategy
Answer: D
Page Ref: 207
Objective: 5
Difficulty: Easy
20
62) In an attempt to offer better deals to customers and thereby increase its market share, Dun's
Burgers integrates backward to buy out its main supplier of beef. Dun's Burgers is using which
of the following strategies to attract customers?
A) focus
B) technology enhancement
C) differentiation
D) cost leadership
E) focused differentiation
Answer: D
Page Ref: 207
Objective: 5
63) Dun's Burgers has decided to open takeaway counters across the city that will be open until
11 p.m. to cater to people who return late from work. This turns out to be an excellent strategy as
Dun's becomes a hot favorite with the people who work late shifts. This is an example of
________.
A) differentiation strategy
B) technology enhancement strategy
C) cost leadership strategy
D) divestiture strategy
E) focus strategy
Answer: E
Page Ref: 207
Objective: 5
21
64) ________ is a strategy that emphasizes making an organization more competitive by
targeting a particular customer.
A) Differentiation
B) Cost leadership
C) Stability
D) Focus
E) Divestiture
Answer: D
Page Ref: 207
Objective: 5
Difficulty: Easy
65) ________ is a strategy adopted by management to increase the amount of business that an
SBU is currently generating.
A) Differentiation
B) Divestiture
C) Retrenchment
D) Growth
E) Focus
Answer: D
Page Ref: 207
Objective: 5
Difficulty: Easy
66) A business strategy that is generally applied to star or question mark SBUs is ________.
A) stability
B) focus
C) retrenchment
D) growth
E) divestiture
Answer: D
Page Ref: 207
Objective: 5
Difficulty: Easy
22
67) ________ is a strategy adopted by management to maintain or slightly improve the amount
of business that an SBU is generating.
A) Focus
B) Stability
C) Retrenchment
D) Growth
E) Divestiture
Answer: B
Page Ref: 208
Objective: 5
Difficulty: Easy
68) Which business strategy is generally applied to cash cows?

A) divestiture
B) stability
C) growth
D) retrenchment
E) focus
Answer: B
Page Ref: 208
Objective: 5
Difficulty: Easy
69) ________ is the strategy through which management attempts to strengthen or protect the
amount of business an SBU is generating.
A) Differentiation
B) Divestiture
C) Retrenchment
D) Growth
E) Focus
Answer: C
Page Ref: 208
Objective: 5
Difficulty: Easy
23
70) ________ strategy is generally applied to cash cows or stars that are beginning to lose market
share.
A) Focus
B) Retrenchment
C) Stability
D) Divestiture
E) Growth
Answer: B
Page Ref: 208
Objective: 5
Difficulty: Easy
71) In a retrenchment strategy, managers attempt to ________.

A) eliminate an SBU
B) increase the amount of business of a "star"
C) maintain or slightly improve the amount of business an SBU is generating
D) develop new products that are perceived by customers as different
E) strengthen or protect the amount of business an SBU is generating
Answer: E
Page Ref: 208
Objective: 5
Difficulty: Easy
72) ________ is a strategy adopted to eliminate an SBU that is not generating a satisfactory
amount of business and that has little hope of doing so in the near future.
A) Growth
B) Divestiture
C) Retrenchment
D) Stability
E) Focus
Answer: B
Page Ref: 208
Objective: 5
Difficulty: Easy
24
73) The Forrester Group of companies has many products, including a fertilizer manufacturing
unit. While this unit has never been a source of high revenues in the past, the SBU has
increasingly become an area of concern. For the last few years, this SBU has not generated
enough business for the Forrester Group and the parent company does not see things changing in
the future without substantial investment. In a market with low growth potential, its already low
market share has declined further. Which of the following strategies is the Forrester Group likely
to choose for this SBU?
A) stability
B) focus
C) retrenchment
D) growth
E) divestiture
Answer: E
Page Ref: 208
Objective: 5
74) ________ is usually applied to SBUs that are dogs or question marks that have failed to
increase market share but still require significant amounts of cash.
A) Focus
B) Divestiture
C) Growth
D) Stability
E) Retrenchment
Answer: B
Page Ref: 208
Objective: 5
Difficulty: Easy
25
75) One of the SBUs under the Retro Group of companies is not generating a satisfactory amount
of business. Extensive analysis shows that the company is losing its market share because its
competitors have more sustainable processes. Analysts also feel that the growth prospects in this
industry are extremely limited. Which of the following organizational strategies should the
company adopt?
A) focus
B) stability
C) retrenchment
D) growth
E) divestiture
Answer: E
Page Ref: 208
Objective: 5
76) ________, the fourth step of the strategic management process, is putting formulated
strategies into action.
A) Strategy implementation
B) Environmental analysis
C) Strategic control
D) Strategy formulation
E) Strategic feedback
Answer: A
Page Ref: 208
Objective: 5
Difficulty: Easy
77) Which of the following is the ability to manage people during implementation?
A) allocating skill
B) interacting skill
C) monitoring skill
D) organizing skill
E) tactical skill
Answer: B
Page Ref: 208
Objective: 5
Difficulty: Easy
26
78) Which of the following is the ability to use information to determine whether a problem has
arisen that is blocking implementation?
A) allocating skill
B) interacting skill
C) monitoring skill
D) organizing skill
E) tactical skill
Answer: C
Page Ref: 208
Objective: 5
Difficulty: Easy
79) ________ is the ability to create throughout the organization a network of people who can
help solve implementation problems as they occur.
A) Organizing skill
B) Interacting skill
C) Monitoring skill
D) Allocating skill
E) Tactical skill
Answer: A
Page Ref: 208
Objective: 5
Difficulty: Easy
80) The last step of the strategic management process, consisting of monitoring and evaluating
the strategic management process as a whole, is ________.
A) strategy implementation
B) strategy formulation
C) strategic control
D) environmental analysis
E) strategic action
Answer: C
Page Ref: 208
Objective: 5
Difficulty: Easy
27
81) ________ is short-range planning that emphasizes the current operations of various parts of
the organization.
A) Operational planning
B) Intermediate planning
C) Strategic planning
D) Strategic control
E) Tactical planning
Answer: E
Page Ref: 208-209
Objective: 6
Difficulty: Easy
82) Mary has just formulated the annual budget for her department. She has outlined how the
funds must be allocated and spent over the next one year. This would most likely be categorized
as ________.
A) strategic planning
B) intrinsic planning
C) intermediate planning
E) strategic control
Answer: D
Page Ref: 208-209
Objective: 6
28
83) Which of the following sentences about the differences between strategic planning and
tactical planning is true?
A) Tactical plans cover a relatively long period of time whereas strategic plans cover a relatively
short period of time.
B) Strategic planning emphasizes analyzing the future and tactical planning emphasizes
analyzing the everyday functioning of the organization.
C) Tactical plans are generally less detailed than strategic plans.
D) Facts on which to base tactical plans are usually more difficult to gather than are facts on
which to base strategic plans.
E) Tactical plans are usually developed by upper-level management and strategic plans by lower-
level management.
Answer: B
Page Ref: 209
Objective: 6
Difficulty: Easy
84) ________ refers to the process by which firms undertake strategic and tactical actions and
how competitors respond to these actions.
A) Strategic control
B) Environmental analysis
C) Competitive dynamics
D) Strategy implementation
E) SWOT analysis
Answer: C
Page Ref: 209-210
Objective: 7
Difficulty: Easy
85) ________ refers to how mindful a company is of its competitor's actions.

A) Strategic control
B) Competitor motivation
C) Competitor awareness
D) Competitor capability
E) Strategic implementation
Answer: C
Page Ref: 210
Objective: 7
Difficulty: Easy
29
86) Briefly discuss the strategic management process.
Answer: Strategic management is the process of ensuring that an organization possesses and
benefits from the use of an appropriate organizational strategy, and consists of five sequential
steps.
1. The first step in the process is environmental analysis, which is the study of organizational
environment to pinpoint environmental factors that can significantly influence organizational
operations. The environment is divided into three distinct levels for analysis - general, operating,
and internal.
2. The second step of the process is establishing organizational direction based upon the
environmental analysis. Two important ingredients of organizational direction are organizational
mission and organizational objectives. In this step, the mission and the mission statement are
developed. From the mission flow the objectives of the organization.
3. The third step is strategy formulation, which is the process of determining appropriate courses
of action for achieving organizational objectives, and thereby accomplishing organizational
purpose.
4. The next step, strategy implementation, is putting formulated strategies into action.
5. The fifth and final step is strategy control, which consists of monitoring and evaluating the
strategic management process to ensure that it is operating properly.
Page Ref: 198-208
Objective: 2
Difficulty: Easy
87) What are the main strategy formulation tools of strategic management?
Answer: Strategy formulation is the process of determining appropriate courses of action for
achieving organizational objectives, and thereby accomplishing organizational purposes.
1. One tool of strategy formulation is Critical Question Analysis. This process asks four basic
questions about the present purposes and objectives of the organization, its present direction and
environment, and actions that can be taken to achieve organizational goals in the future.
2. Another tool is SWOT analysis, a strategy development tool that identifies and matches the
organization's internal strengths and weaknesses with external opportunities and threats.
3. The third strategy formulation tool is a business portfolio analysis that bases business
strategies primarily upon the market share that a significant organizational segment enjoys, and
the growth of the market in which the business exists.
Page Ref: 203-208
Objective: 3
30
88) What is the BCG Growth-Share Matrix? Explain what stars, question marks, cash cows, and
dogs are. According to the BCG Growth-Share Matrix, what should managers do with each of
these?
Answer: The Boston Consulting Group (BCG), a leading manufacturing consulting firm,
developed and popularized a portfolio analysis tool that helps managers develop organizational
strategy based on market share of businesses and the growth of markets in which businesses
exist.
The first step in using the BCG Growth-Share Matrix is identifying the organization's strategic
business units (SBUs). A strategic business unit is a significant organization segment that is
analyzed to develop organizational strategy aimed at generating future business or revenue.
After SBUs have been identified for a particular organization, the next step in using the BCG
Matrix is to categorize each SBU within one of the four matrix quadrants: star, cash cow,
question mark, and, dog.
1. An SBU that is a star has a high share of a high-growth market and typically needs large
amounts of cash to support rapid and significant growth. Stars also generate large amounts of
cash for the organization and are usually segments in which management can make additional
investments and earn attractive returns.
2. An SBU that is a cash cow has a large share of a market that is growing only slightly.
Naturally, these SBUs provide the organization with large amounts of cash, but because their
market is not growing significantly, the cash is generally used to meet the financial demands of
the organization in other areas, such as the expansion of a star SBU.
3. An SBU that is a question mark has a small share of a high-growth market. They are dubbed
question marks because it is uncertain whether management should invest more cash in them to
gain a larger share of the market or deemphasize or eliminate them. Management will choose the
first option when it believes it can turn the question mark into a star, and the second when it
thinks further investment would be fruitless.
4. An SBU that is a dog has a relatively small share of a low-growth market. They may barely
support themselves; in some cases, they actually drain off cash resources generated by other
SBUs.
Page Ref: 205-206
Objective: 3
31
89) Compare and contrast strategic and tactical planning.
Answer:
1. Strategic planning is long-range planning (three to five years) that focuses on the organization
as a whole and tactical planning is short-range (one year or less) planning that emphasizes the
current operations of various parts of the organization.
2. Because upper-level managers generally have a better understanding of the organization as a
whole than lower-level managers do, and because lower-level managers generally have a better
understanding of the day-to-day organizational operations than upper-level managers do,
strategic plans are usually developed by upper-level management and tactical plans by lower-
level management.
3. Strategic planning emphasizes analyzing the future and tactical planning emphasizes analyzing
the everyday functioning of the organization. Because of this, facts on which to base strategic
plans are usually more difficult to gather than are facts on which to base tactical plans.
4. Strategic plans are generally less detailed than tactical plans because strategic plans are based
primarily on a prediction of the future and tactical plans on known circumstances that exist
within the organization.
Page Ref: 209
Objective: 6
90) What is competitive dynamics? Briefly describe the factors that influence a firm's action or
reaction?
Answer: Competitive dynamics refers to the process by which firms undertake strategic and
tactical actions and how competitors respond to these actions. The study of competitive
dynamics is important in order to understand why managers undertake such actions. Inevitably, it
is these actions and reactions that influence a firm's ultimate financial performance.
Research suggests that three primary factors influence a firm's action or reaction: awareness,
motivation, and capability. Competitor awareness refers to how mindful a company is of its
competitor's actions. Competitor motivation refers to the incentives that an organization has to
take action. Competitor capability refers to a firm's ability to undertake an action.
Page Ref: 209-211
Objective: 7
32
Another random document with
no related content on Scribd:
Third Session, Thirty-Seventh Congress.
Excluding Colored Persons from Cars.

In Senate—1863, February 27—Pending a supplement to the
charter of the Washington and Alexandria Railroad Company, Mr.
Sumner offered this proviso to the first section:
That no person shall be excluded from the cars on account of color.
Which was agreed to—yeas 19, nays 18, as follows:
Yeas—Messrs. Arnold, Chandler, Clark, Fessenden, Foot, Grimes,
Harris, Howard, King, Lane of Kansas, Morrill, Pomeroy, Sumner,
Ten Eyck, Trumbull, Wade, Wilkinson, Wilmot, Wilson, of
Massachusetts—19.
Nays—Messrs. Anthony, Bayard, Carlile, Cowan, Davis,
Henderson, Hicks, Howe, Kennedy, Lane of Indiana, Latham,
McDougall, Powell, Richardson, Saulsbury, Turpie, Willey, Wilson
of Missouri—18.
March 2.—The House concurred in the amendment without
debate, under the previous question.
First Session, Thirty-Eighth Congress.
In Senate—1864, February 10—Mr. Sumner offered the following:

Resolved, That the Committee on the District of Columbia be
directed to consider the expediency of further providing by law
against the exclusion of colored persons from the equal enjoyment of
all railroad privileges in the District of Columbia.
Which was agreed to—yeas 30, nays 10.
February 24—Mr. Willey, from the Committee on the District of
Columbia, made this report, and the committee were discharged.
The Committee on the District of Columbia, who were required by
resolution of the Senate, passed February 8, 1864, “to consider the
expediency of further providing by law against the exclusion of
colored persons from the equal enjoyment of all railroad privileges in
the District of Columbia,” have had the matter thus referred to them
under consideration, and beg leave to report:
The act entitled “An act to incorporate the Washington and
Georgetown Railroad Company,” approved May 17, 1862, makes no
distinction as to passengers over said road on account of the color of
the passengers, and that in the opinion of the committee colored
persons are entitled to all the privileges of said road which other
persons have, and to all remedies for any denial or breach of such
privileges which belongs to any person.
The committee therefore ask to be discharged from the further
consideration of the premises.
March 17—The Senate considered the bill to incorporate the
Metropolitan Railroad Company, in the District of Columbia, the
pending question being an amendment, offered by Mr. Sumner, to
add to the fourteenth section the words:
Provided, That there shall be no regulation excluding any person
from any car on account of color.
Which was agreed to—yeas 19, nays 17, as follows:
Yeas—Messrs. Anthony, Brown, Clark, Conness, Fessenden, Foot,
Foster, Grimes, Harlan, Howe, Lane of Kansas, Morgan, Morrill,
Pomeroy, Ramsey, Sumner, Wade, Wilkinson, Wilson—19.
Nays—Messrs. Buckalew, Carlile, Davis, Doolittle, Harding,
Harris, Hendricks, Johnson, Lane of Indiana, Powell, Riddle,
Saulsbury, Sherman, Ten Eyck, Trumbull, Van Winkle, Willey—17.
The bill then passed the Senate.
June 19—The House refused to strike out the proviso last adopted
in the Senate—yeas 60, nays 76.
And the bill passed the House and was approved by the President.
Second Session, Thirty-Seventh Congress.
Colored Persons as Witnesses.

In Senate—Pending the confiscation bill, June 28, 1862.
Mr. Sumner moved these words as an addition to the 14th section:
And in all the proceedings under this act there shall be no
exclusion of any witness on account of color.
Which was rejected—yeas 14, nays 25, as follows:
Yeas--Messrs. Chandler, Grimes, Harlan, Howard, King, Lane of
Kansas, Morrill, Pomeroy, Sumner, Trumbull, Wade, Wilkinson,
Wilmot—14.
Nays—Messrs. Anthony, Browning, Carlile, Clark, Collamer,
Cowan, Davis, Dixon, Doolittle, Fessenden, Foot, Foster, Harris,
Henderson, Lane of Indiana, Nesmith, Pearce, Powell, Sherman,
Simmons, Stark, Ten Eyck, Willey, Wilson of Missouri, Wright—25.
Pending the consideration of the supplement to the emancipation
bill for the District of Columbia,
1862, July 7—Mr. Sumner moved a new section:
That in all the judicial proceedings in the District of Columbia
there shall be no exclusion of any witness on account of color.
Which was adopted—yeas 25, nays 11.
The bill then passed—yeas 29, nays 6; (Messrs. Carlile, Davis,
Kennedy, Powell, Wilson, of Missouri, Wright.)
July 9—The bill passed the House—yeas 69, nays 36. There was no
separate vote on the above proposition.
Pending the consideration in the Senate of the House bill in
relation to the competency of witnesses in trials of equity and
admiralty,
1862, July 15—Mr. Sumner offered this proviso to the first section:
Provided, That there shall be no exclusion of any witness on
account of color. Which was rejected—yeas 14, nays 23.
First Session, Thirty-Eighth Congress.
1864, June 25—Pending the civil appropriation bill, in Committee

of the Whole, Mr. Sumner offered this proviso:
Provided, That in the courts of the United States there shall be no
exclusion of any witness on account of color.
Mr. Buckalew moved to add:
Nor in civil actions because he is a party to or interested in the
issue tried.
Which was agreed to; and the amendment as amended was agreed
to—yeas 22, nays 16.
The Senate subsequently concurred in this amendment—yeas 29,
nays 10.
IN HOUSE.
June 29—The question being on agreeing to the amendment,

Mr. Mallory moved to add this proviso to the section amended in
the Senate:
Provided, That negro testimony shall only be taken in the United
States courts in those States the laws of which authorize such
testimony.
Which was rejected—yeas 47, nays 66.
The amendment of the Senate was then agreed to—yeas 67, nays
48.
COLORED SCHOOLS.
June 8.—The House passed a bill to provide for the public
instruction of youth in Washington city, with an amendment
providing for separate schools for the colored children, by setting
apart such a proportion of the entire school fund as the number of
colored children between the ages of six and seventeen bear to the
whole number of children in the District. The bill, with amendments,
passed both Houses without a division.
On all of these questions of color, the Democrats invariably, on test
votes, were found against any concession of rights to the negro.
These were frequently aided by some Republicans, more
conservative than their colleagues, or representing closer districts
where political prejudices would affect their return to their seats. It
will be observed that on nearly all these questions Senator Charles
Sumner took the lead. He was at that time pre-eminently the Moses
of the colored man, and led him from one right to another through
Senatorial difficulties, which by the way, were never as strong as that
in the House, where Thaddeus Stevens was the boldest champion of
“the rights of the black man.” In the field, rather in the direction of
what should be done with the “contrabands” and escaped slaves, the
Secretary of War, General Cameron, was their most radical friend,
and his instructions were so outspoken that Lincoln had to modify
them. As early as December 1, 1861, General Cameron wrote:
“While it is plain that the slave property of the South is justly
subjected to all the consequences of this rebellious war, and that the
Government would be untrue to its trust in not employing all the
rights and powers of war to bring it to a speedy close, the details of
the plan for doing so, like all other military measures, must, in a
great degree, be left to be determined by particular exigencies. The
disposition of other property belonging to the rebels that becomes
subject to our arms is governed by the circumstances of the case. The
Government has no power to hold slaves, none to restrain a slave of
his liberty, or to exact his service. It has a right, however, to use the
voluntary service of slaves liberated by war from their rebel masters,
like any other property of the rebels, in whatever mode may be most
efficient for the defence of the Government, the prosecution of the
war, and the suppression of rebellion. It is clearly a right of the
government to arm slaves when it may become necessary as it is to
take gunpowder from the enemy. Whether it is expedient to do so is
purely a military question. The right is unquestionable by the laws of
war. The expediency must be determined by circumstances, keeping
in view the great object of overcoming the rebels, re-establishing the
laws, and restoring peace to the nation.
“It is vain and idle for the Government to carry on this war, or
hope to maintain its existence against rebellious force, without
enjoying all the rights and powers of war. As has been said, the right
to deprive the rebels of their property in slaves and slave labor is as
clear and absolute as the right to take forage from the field, or cotton
from the warehouse, or powder and arms from the magazine. To
leave the enemy in the possession of such property as forage and
cotton and military stores, and the means of constantly reproducing
them, would be madness. It is, therefore, equal madness to leave
them in peaceful and secure possession of slave property, more
valuable and efficient to them for war than forage, cotton and
military stores. Such policy would be national suicide. What to do
with that species of property is a question that time and
circumstances will solve, and need not be anticipated further than to
repeat that they cannot be held by the Government as slaves. It
would be useless to keep them as prisoners of war; and self-
preservation, the highest duty of a Government, or of individuals,
demands that they should be disposed of or employed in the most
effective manner that will tend most speedily to suppress the
insurrection and restore the authority of the Government. If it shall
be found that the men who have been held by the rebels as slaves are
capable of bearing arms and performing efficient military service, it
is the right, and may become the duty, of this Government to arm
and equip them, and employ their services against the rebels, under
proper military regulations, discipline and command.
“But in whatever manner they may be used by the Government, it
is plain that, once liberated by the rebellious act of their masters,
they should never again be restored to bondage. By the master’s
treason and rebellion he forfeits all right to the labor and service of
his slave; and the slave of the rebellious master, by his service to the
Government, becomes justly entitled to freedom and protection.
“The disposition to be made of the slaves of rebels, after the close
of the war, can be safely left to the wisdom and patriotism of
Congress. The representatives of the people will unquestionably
secure to the loyal slaveholders every right to which they are entitled
under the Constitution of the country.”
[Subsequent events proved the wisdom of this policy, and it was
eventually adopted by an Administration which proclaimed its policy
“to move not ahead but with the people.”]
President Lincoln and his Cabinet modified the above language so
as to make it read:
“It is already a grave question what shall be done with those slaves
who were abandoned by their owners on the advance of our troops
into southern territory, as at Beaufort district, in South Carolina. The
number left within our control at that point is very considerable, and
similar cases will probably occur. What shall be done with them? Can
we afford to send them forward to their masters, to be by them
armed against us, or used in producing supplies to sustain the
rebellion? Their labor may be useful to us; withheld from the enemy
it lessens his military resources, and withholding them has no
tendency to induce the horrors of insurrection, even in the rebel
communities. They constitute a military resource, and, being such,
that they should not be turned over to the enemy is too plain to
discuss. Why deprive him of supplies by a blockade, and voluntarily
give him men to produce them?
“The disposition to be made of the slaves of rebels, after the close
of the war, can be safely left to the wisdom and patriotism of
Congress. The Representatives of the people will unquestionably
secure to the loyal slaveholders every right to which they are entitled
under the Constitution of the country.”
Secretary Cameron was at all times in favor of “carrying the war
into Africa” and it was this stern view of the situation which
eventually led him to sanction measures which brought him into
plainer differences with the Administration. Lincoln took offense at
the printing of his report before submitting it to him. As a result he
resigned and went to Russia as Minister, on his return being again
elected to the United States Senate—a place which he filled until the
winter of 1877, when he resigned, and his son, J. Donald Cameron,
was elected to the vacancy, and re-elected for the term ending in
1885. General B. F. Butler was the author of the “contraband” idea. A
year later the views of the Administration became more radical on
questions of color, and July 22, 1862, Secretary Stanton ordered all
Generals in command “to seize and use any property, real or
personal, which may be necessary or convenient for their several
commands, for supplies, or for other military purposes; and that
while property may be destroyed for proper military objects, none
shall be destroyed in wantonness or malice.
“Second. That military and naval commanders shall employ as
laborers, within and from said States, so many persons of African
descent as can be advantageously used for military or naval
purposes, giving them reasonable wages for their labor.
“Third. That, as to both property, and persons of African descent,
accounts shall be kept sufficiently accurate and in detail to show
quantities and amounts, and from whom both property and such
persons shall have come, as a basis upon which compensation can be
made in proper cases; and the several departments of this
Government shall attend to and perform their appropriate parts
towards the execution of these orders.”
The manner and language employed by General McClellan in
promulgating this order to the Army of the Potomac, led to his
political differences with the Administration, and in the end caused
him to be the Democratic candidate for President in 1864, against
Lincoln. His language is peculiar and some of it worthy of
presentation as of political importance. He said:
“Inhabitants, especially women and children, remaining peaceably
at their homes, must not be molested; and wherever commanding
officers find families peculiarly exposed in their persons or property
to marauding from this army, they will, as heretofore, so far as they
can do with safety and without detriment to the service, post guards
for their protection.
“In protecting private property, no reference is intended to
persons held to service or labor by reason of African descent. Such
persons will be regarded by this army, as they heretofore have been,
as occupying simply a peculiar legal status under State laws, which
condition the military authorities of the United States are not
required to regard at all in districts where military operations are
made necessary by the rebellious action of the State governments.
“Persons subject to suspicion of hostile purposes, residing or being
near our forces, will be, as heretofore, subject to arrest and
detention, until the cause or necessity is removed. All such arrested
parties will be sent, as usual, to the Provost Marshal General, with a
statement of the facts in each case.
“The general commanding takes this occasion to remind the
officers and soldiers of this army that we are engaged in supporting
the Constitution and the laws of the United States and suppressing
rebellion against their authority; that we are not engaged in a war of
rapine, revenge, or subjugation; that this is not a contest against
populations, but against armed forces and political organizations;
that it is a struggle carried on with the United States, and should be
conducted by us upon the highest principles known to Christian
civilization.”
At this time such were the prejudices of Union soldiers against
negroes, because of growing political agitation in the North, that
many would loudly jeer them when seen within the lines. The feeling
was even greater in the ranks of civilians, and yet Congress moved
along, step by step. The 37th abolished slavery in the District of
Columbia; prohibited it in all the territories; confirmed the freedom
of the slaves owned by those in arms against the government;
authorized the employment of colored men in fortifications, their
enlistment, etc.; and enacted an additional article of war, which
prohibited any officer from returning or aiding the return of any
fugitive slave. These were rapid strides, but not as rapid as were
demanded by the more radical wing of the Republican party. We
have shown that most of them were opposed by the Democrats, not
solidly sure where they were plainly political, but this party became
less solid as the war advanced.
Senator Wilson was the author of the bill to abolish slavery in the
District of Columbia. It excited much debate, and the range of the
speeches covered the entire question of slavery. Those from the
Border States opposed it (a few Republicans and all Democrats) but
some of the Democrats of the North supported it. The vote in the
Senate was 29 for to 6 against. In the House Frank P. Blair, Jr.,
advocated colonization in connection with the bill, but his idea met
with little favor. Crittenden, Wickliffe and Vallandigham were
prominent in opposition. Its most prominent advocates were Stevens
of Pennsylvania, and Bingham of Ohio. The vote was 92 for to 38
against.
The bill of Arnold, of Illinois, “to render freedom national and
slavery sectional,” the leading idea in the platform of the convention
which nominated Lincoln, prohibited slavery in “all the Territories of
the United States then existing, or thereafter to be formed or
acquired in any way.” It was vehemently opposed, but passed with
some modifications by 58 ayes to 50 noes, and it also passed the
Senate.
In the Spring of 1862 General David Hunter brought the question
of the enlistment of colored troops to a direct issue by raising a
regiment of them. On the 9th of June following, Mr. Wickliffe of
Kentucky, succeeded in getting the House to adopt a resolution of
inquiry. Correspondence followed with General Hunter. He
confessed the fact, stated that “he found his authority in the
instructions of Secretary Cameron, and said that he hoped by fall to
enroll about fifty thousand of these hardy and devoted soldiers.”
When this reply was read in the House it was greeted with shouts of
laughter from the Republicans, and signs of anger from the others. A
great debate followed on the amendment to the bill providing for the
calling out of the militia, clothing the President with full power to
enlist colored troops, and to proclaim “he, his mother, and wife and
children forever free,” after such enlistment. Preston King, of New
York, was the author of this amendment. Davis, of Kentucky, and
Carlisle of West Virginia, were prominent Senators in opposition;
while Ten Eyck, of New Jersey, Sherman of Ohio, and Browning of
Illinois sought to modify it. Garrett Davis said in opposition:
“Do you expect us to give our sanction and approval to these
things? No, no! We would regard their authors as our worst enemies;
and there is no foreign despotism that could come to our rescue, that
we would not fondly embrace, before we would submit to any such
condition of things.”
Senator Fessenden of Maine, in advocacy of the amendment, said:
“I tell the President from my place here as a Senator, and I tell the
generals of our army, they must reverse their practices and course of
proceeding on this subject. * * * Treat your enemies as enemies, as
the worst of enemies, and avail yourselves like men of every power
which God has placed in your hands, to accomplish your purpose,
within the rules of civilized warfare.”
The bill passed, so modified, as to give freedom to all who should
perform military service, but restricting liberty to the families of such
only as belonged to rebel masters. It passed the House July 16th,
1862, and received the sanction of the President, who said:—“And
the promise made must be kept!” General Hunter for his part in
beginning colored enlistments, was outlawed by the Confederate
Congress. Hunter followed with an order freeing the slaves in South
Carolina.
In January, 1863, pursuant to a suggestion in the annual report of
Secretary Stanton, who was by this time as radical as his predecessor
in office, the House passed a bill authorizing the President to enroll
into the land and naval service such number of volunteers of African
descent as he might deem useful to suppress the rebellion, and for
such term as he might prescribe, not exceeding five years. The slaves
of loyal citizens in the Border States were excluded from the
provisions of this bill. In the Senate an adverse report was made on
the ground that the resident already possessed these powers.
In January, 1863, Senator Wilson, who was by this time chairman
of the Military Committee of the Senate, secured the passage of a bill
which authorized a draft for the National forces from the ranks of all
male citizens, and those of foreign birth who had declared their
intentions, etc. The bill contained the usual exemptions.
CONFEDERATE USE OF COLORED MEN.
In June, 1861, the rebel Legislature of Tennessee passed this

enlistment bill, which became a law:
Sec. 1. Be it enacted by the General Assembly of the State of
Tennessee, That from and after the passage of this act the Governor
shall be, and he is hereby, authorized, at his discretion, to receive
into the military service of the State all male free persons of color
between the ages of fifteen and fifty, or such numbers as may be
necessary, who may be sound in mind and body, and capable of
actual service.
2. That such free persons of color shall receive, each, eight dollars
per month, as pay, and such persons shall be entitled to draw, each,
one ration per day, and shall be entitled to a yearly allowance each
for clothing.
3. That, in order to carry out the provisions of this act, it shall be
the duty of the sheriffs of the several counties in this State to collect
accurate information as to the number and condition, with the
names of free persons of color, subject to the provisions of this act,
and shall, as it is practicable, report the same in writing to the
Governor.
4. That a failure or refusal of the sheriffs, or any one or more of
them, to perform the duties required, shall be deemed an offence,
and on conviction thereof shall be punished as a misdemeanor.
5. That in the event a sufficient number of free persons of color to
meet the wants of the State shall not tender their services, the
Governor is empowered, through the sheriffs of the different
counties, to press such persons until the requisite number is
obtained.
6. That when any mess of volunteers shall keep a servant to wait
on the members of the mess, each servant shall be allowed one
ration.
This act to take effect from and after its passage.
W. C. Whitthorne,
Speaker of the House of Representatives.
B. L. Stovall,
Speaker of the Senate.
Passed June 28, 1861.

1862, November 2—Governor Joseph E. Brown, of Georgia, issued
a call announcing that if a sufficient supply of negroes be not
tendered within ten days, General Mercer will, in pursuance of
authority given him, proceed to impress, and asking of every planter
of Georgia a tender of one fifth of his negroes to complete the
fortifications around Savannah. This one-fifth is estimated at 15,000.
1863. The Governor of South Carolina in July, issued a
proclamation for 3,000 negroes to work on the fortifications, “the
need for them being pressing.”
THE CHANGING SENTIMENT OF CONGRESS.
In the Rebel House of Representatives, December 29th, Mr.

Dargan, of Alabama, introduced a bill to receive into the military
service all that portion of population in Alabama, Mississippi,
Louisiana, and Florida, known as “Creoles.”
Mr. Dargan supported the bill in some remarks. He said the
Creoles were a mixed-blooded race. Under the treaty of Paris in
1803, and the treaty of Spain in 1810, they were recognized as
freemen. Many of them owned large estates, and were intelligent
men. They were as much devoted to our cause as any class of men in
the South, and were even anxious to go into service. They had
applied to him to be received into service, and he had applied to Mr.
Randolph, then Secretary of War. Mr. Randolph decided against the
application, on the ground that it might furnish to the enemy a
pretext of arming our slaves against us. Some time after this he was
again applied to by them, and he went to the present Secretary of
War, Mr. Seddon, and laid the matter before him. Mr. Seddon
refused to entertain the proposition, on the ground that it did not
come up before him through the military authorities. To obviate this
objection, Gen. Maury, at Mobile, soon afterwards represented their
wishes to the War Department. Mr. Seddon refused the offer of their
services, on the ground that it would be incompatible with the
position we occupied before the world; that it could not be done.
Mr. Dargan said he differed with the Secretary of War. He cared
not for “the world.” He cared no more for their opinions than they
did for ours. He was anxious to bring into service every free man, be
he who he may, willing to strike for our cause. He saw no objection to
employing Creoles; they would form a potent element in our army. In
his district alone a brigade of them could be raised. The crisis had
been brought upon us by the enemy, and he believed the time would
yet come when the question would not be the Union or no Union, but
whether Southern men should be permitted to live at all. In resisting
subjugation by such a barbarous foe he was for employing all our
available force. He would go further and say that he was for arming
and putting the slaves into military service. He was in favor even of
employing them as a military arm in the defence of the country.
1864. The Mayor of Charleston, Charles Macbeth, summons all
slaveholders within the city to furnish to the military authorities
forthwith, one-fourth of all their male slaves between the ages of
fifteen and fifty, to labor upon the fortifications. The penalty
announced, in case of failure to comply with this requisition is a fine
of $200 for every slave not forthcoming. Compensation is allowed at
the rate of $400 a year.
All free male persons of color between the ages of fifteen and fifty
are required to give themselves up for the same purpose. Those not
complying will be imprisoned, and set to work upon the fortifications
along the coast. To free negroes no other compensation than rations
is allowed.
NEGROES IN THE ARMY.
The Richmond press publish the official copy of “An act to increase
the efficiency of the army by the employment of free negroes and
slaves in certain capacities,” lately passed by the Rebel Congress. The
negroes are to perform “such duties as the Secretary of War or
Commanding General may prescribe.” The first section is as follows:
The Congress of the Confederate States of America do enact, That
all male free negroes, and other free persons of color, not including
those who are free under the treaty of Paris, of 1803, or under the
treaty of Spain, of 1819, resident in the Confederate States, between
the ages of eighteen and fifty years, shall be held liable to perform
such duties with the army, or in connection with the military
defences of the country, in the way of work upon the fortifications, or
in government works for the production or preparation of materials
of war, or in military hospitals, as the Secretary of War or the
Commanding General of the Trans-Mississippi Department may,
from time to time, prescribe; and while engaged in the performances
of such duties shall receive rations and clothing and compensation at
the rate of eleven dollars a month, under such rules and regulations
as the said Secretary may establish: Provided, That the Secretary of
War or the Commanding General of the Trans-Mississippi
Department, with the approval of the President, may exempt from
the operations of this act such free negroes as the interests of the
country may require should be exempted, or such as he may think
proper to exempt on the ground of justice, equity or necessity.
The third section provides that when the Secretary of War shall be
unable to procure the services of slaves in any military department,
then he is authorized to impress the services of as many male slaves,
not to exceed twenty thousand, as may be required, from time to
time, to discharge the duties indicated in the first section of the act.
The owner of the slave is to be paid for his services; or, if he be
killed or “escape to the enemy,” the owner shall receive his full value.
Governor Smith, of Virginia, has made a call for five thousand
male slaves to work on the batteries, to be drawn from fifty counties.
The call for this force has been made by the President under a
resolution of Congress.
“CONFEDERATE” LEGISLATION UPON NEGRO

PRISONERS AND THEIR WHITE OFFICERS WHEN
CAPTURED.[27]
1863, May 1—An act was approved declaring that the
commissioned officers of the enemy ought not to be delivered to the
authorities of the respective States, (as suggested in Davis’s
message;) but all captives taken by the Confederate forces ought to
be dealt with and disposed of by the Confederate Government.
President Lincoln’s emancipation proclamations of September 22,
1862, and January 1, 1863, were resolved to be inconsistent with the
usages of war among civilized nations, and should be repressed by
retaliation; and the President is authorized to cause full and
complete retaliation for every such violation, in such manner and to
such extent as he may think proper.
Every white commissioned officer commanding negroes or
mulattoes in arms against the Confederate States shall be deemed as
inciting servile insurrection, and shall, if captured, be put to death,
or be otherwise punished, at the discretion of the court.
Every person charged with an offence made punishable under the
act shall be tried by the military court of the army or corps of troops
capturing him; and, after conviction, the President may commute
the punishment in such manner and on such terms as he may deem
proper.
All negroes and mulattoes who shall be engaged in war or taken in
arms against the Confederate States, or shall give aid or comfort to
the enemies of the Confederate States, shall, when captured in the
Confederate States, be delivered to the authorities of the State or
States in which they shall be captured, to be dealt with according to
the present or future laws of such State or States.
Passage of the Thirteenth Amendment.
The first amendment to the Constitution growing out of the war,

and one of its direct results, was that of abolishing slavery. It was
first introduced to the House December 14th, 1863, by James M.
Ashley of Ohio. Similar measures were introduced by James M.
Wilson, Senators Henderson, Sumner and others. On the 10th of
February, Senator Trumbull reported Henderson’s joint resolution
amended as follows:
“That the following article be proposed to the Legislatures of the
several States, as an amendment to the Constitution of the United
States, which, when ratified by three-fourths of said Legislatures,
shall be valid to all intents and purposes as a part of the said
Constitution, namely:
“Art. 13, Sec. 1. Neither slavery nor involuntary servitude except as
a punishment for crime, whereof the party shall have been duly
convicted, shall exist within the United States, or any place subject to
their jurisdiction.
“Sec. 2. Congress shall have power to enforce this article by
appropriate legislation.”
The Senate began the consideration of the question March 28th,
Senator Trumbull opening the debate in favor of the amendment. He
predicted that within a year the necessary number of States would
ratify it. Wilson of Massachusetts made a long and able speech in
favor. Davis of Kentucky and Saulsbury of Delaware led the
opposition, but Reverdy Johnson, an independent Democratic
Senator from Maryland, surprised all by his bold support of the
measure. Among other things he said:
“I think history will bear me out in the statement, that if the men
by whom that Constitution was framed, and the people by whom it
was adopted, had anticipated the times in which we live, they would
have provided by constitutional enactment, that that evil and that sin
should in some comparatively unremote day be removed. Without
recurring to authority, the writings public or private of the men of
that day, it is sufficient for my purpose to state what the facts will
justify me in saying, that every man of them who largely participated
in the deliberations of the Convention by which the Constitution was
adopted, earnestly desired, not only upon grounds of political
economy, not only upon reasons material in their character, but
upon grounds of morality and religion, that sooner or later the
institution should terminate.”
Senator McDougall of California, opposed the amendment. Harlan
of Iowa, Hale of New Hampshire, and Sumner, made characteristic
speeches in favor. Saulsbury advocated the divine right of slavery. It
passed April 8th, by 38 ayes to 6 noes, the latter comprising Davis
and Powell of Kentucky; McDougall of California; Hendricks of
Indiana; Saulsbury and Riddle of Delaware.
Arnold of Illinois, was the first to secure the adoption in the House
(Feb. 15, 1864,) of a resolution to abolish slavery; but the
Constitutional amendment required a two-thirds vote, and this it was
difficult to obtain, though all the power of the Administration was
bent to that purpose. The discussion began May 31st; the vote was
reached June 15th, but it then failed of the required two-thirds—93
for to 65 against, 23 not voting. Its more pronounced advocates were
Arnold, Ashley, Broomall, Stevens, and Kelly of Pennsylvania;
Farnsworth and Ingersoll of Illinois, and many others. Its ablest
opponents were Holman, Wood, Mallory, Cox and Pendleton—the
latter rallying nearly all of the Democrats against it. Its Democratic
friends were McAllister and Bailey of Pennsylvania; Cobb of
Wisconsin; Griswold and Odell of New York. Before the vote was
announced Ashley changed his vote so as to move a reconsideration
and keep control of the question. At the next session it was passed,
receiving every Republican and 16 Democratic votes, 8 Democrats
purposely refraining, so that it would surely pass.

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2) Strategy is the end result of strategic planning.

7) The general environment of an organization's external environment contains international,

8) Demographics are the statistical characteristics of a population.

9) The legal component of the general environment is related to government affairs.

12) SWOT is an acronym for Social Welfare Operating Test.

20) Competitor capability refers to a firm's ability to undertake an action.

21) Long-range planning that focuses on the organization as a whole is ________.

29) The last step in the strategic management process is ________.

34) Which of the following is true about social values?

38) Porter's model emphasizes ________.

47) Which of the following is true about a star SBU?

51) Which of the following is true about a cash cow?

68) Which business strategy is generally applied to cash cows?

71) In a retrenchment strategy, managers attempt to ________.

85) ________ refers to how mindful a company is of its competitor's actions.

Excluding Colored Persons from Cars.

In Senate—1864, February 10—Mr. Sumner offered the following:

Colored Persons as Witnesses.

1864, June 25—Pending the civil appropriation bill, in Committee

June 29—The question being on agreeing to the amendment,

CONFEDERATE USE OF COLORED MEN.

In June, 1861, the rebel Legislature of Tennessee passed this

Passed June 28, 1861.

THE CHANGING SENTIMENT OF CONGRESS.

In the Rebel House of Representatives, December 29th, Mr.

NEGROES IN THE ARMY.

“CONFEDERATE” LEGISLATION UPON NEGRO

The first amendment to the Constitution growing out of the war,

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