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1 A process of formulating, implementing, and evaluating cross-functional decisions that enable the organization to define and achieve its

mission, and ultimately create value is called: [Hint]

A marketing. B financial management. C strategic management. D production and operations management.

2 . Which of the following stages of the strategic management framework model would MOST CORRECTLY be matched to the descriptive phrase "determines the future direction of the organization and how it will achieve its mission and vision?" [Hint]
A Perform situation analysis. B Set objectives and craft strategy. C Implement strategy. D Assess value creation and provide feedback.

3 . Which stage of the strategic management framework model follows the set objectives and craft strategy stage? [Hint]
A Develop mission and vision. B Perform situation analysis. C Assess value creation and provide feedback. D Implement strategy.

4 . Which of the following types of statements would address such questions as "Why do we exist?" or "What is our business?" [Hint]
A Mission statement. B Vision statement. C Governance statement. D Marketing statement.

5 . A manager is concerned with determining the opportunities and threats portion of his or her organization's SWOT analysis. Which of the following audits would reveal the needed data the best? [Hint]
A Internal audit. B External audit. C Financial audit. D Management audit.

6 . Which of the following are considered to be specific, measurable standards of performance that the organization seeks to achieve? [Hint]

A B C D

Mission. Vision. Goals. Objectives.

7 . Which of the following levels of strategy can focus on or determine the organization's business scope? [Hint]
A Corporate or organizational level strategy. C Business unit level strategy. B Functional level strategy. D Geo-level strategy.

8 . Once a strategy has been set, a manager must set short-term objectives, reexamine the organization's structure and corporate culture in light of the new strategy, make the right resource decisions in support of the strategy, and manage the human side of the change process. Which of the following steps of the strategic management framework best describes the stage in which the above actions take place? [Hint]
A Perform situation analysis. B Set objectives and craft strategy. C Implement strategy. D Assess value creation and provide feedback.

9 . According to the text, which of the following WOULD NOT be among the characteristics of business and corporate level strategic decisions? [Hint]
A Directive. B Cross-functional. C Resource-dependent. D Marketing dependent.

10 .

Which of the following would be among the benefits of a strategic management process? [Hint]

A More forward-looking, future-oriented thinking results in more effective strategies and financial performance, thereby enhancing value creation. B The process always ensures that profits will be made. C The process is day-to-day oriented, therefore, provides guidance to the lowest level employee. D The process focuses energies on domestic rather than global issues, thereby encouraging growth alternatives.

Chapter 2

Which of the following drives the strategy process? [Hint]

A Technology. B Customers. C Owners. D Value creation.

2.

All of the following would be considered to be a part of the C-E-O cycle EXCEPT: [Hint]

A capital. B owners. C employees. D customers.

3.

______________ is a function of benefits received relative to price paid. [Hint]

A Customer satisfaction B Customer demand C Customer value D Customer profit

4.

All of the following would be among the paths to market leadership EXCEPT: [Hint]

A operational excellence. B SIC positioning by the government. C customer intimacy. D product leadership.

5 . All of the paths to excellence in market leadership require a certain degree of functional excellence. Which of the following paths to excellence in market leadership would require functional excellence in marketing, sales, and flexibility of operations? [Hint]
A Operational excellence. B Product leadership. C Customer intimacy. D Superior strategy.

6 . If an organization were to have ____________, it would have compensation that is tied to organizational performance. [Hint]
A contingent compensation

B fringe compensation C employee compensation D stakeholder compensation

7 . Which of the following forms of employee compensation focuses, as its primary base, on bottom line profits? [Hint]
A B C D Gain sharing. Profit sharing. Stock-based compensation. Psychological compensation.

8.
A B C D

Which of the following statements BEST describes how value is created for owners? [Hint]

When demand exceeds supply and sales increase. When marginal revenues equal marginal costs. When everyday low pricing techniques outwit and surpass competitors. When the worth of their investment increases beyond the cost of the capital invested.

9.
A B C D

Value for owners is received: [Hint]

before taxes and after margins have been passed. only after other stakeholders have gotten a share. before other stakeholders lay claim to any profits. at the same time as employees receive their benefits.

10 .
A B C D

___________ for all stakeholders comes from building the enterprise itself. [Hint]

Lasting value Short-term value Parallel value Dynamic profits

Developing a Mission and Understanding


In which of the following stages of the strategic management framework model would it be proper to consider "the form of growth strategy that the firm might wish to pursue" as a component of that stage? [Hint]

A Develop mission and vision. B Perform situation analysis. C Set objectives and craft strategy.

D Implement strategy.

2 . In which of the following common components of a mission statement would a manager be expected to deal with relationships with the environment? [Hint]
A B C D Value creation. Principal products and services. Self-image. Public image.

3.
A B C D

Which of the following is MOST LIKELY to be a function of a mission statement? [Hint]

To provide a blueprint for increasing profits. To support the core values of the organization. To serve as a means for controlling employees. To serve as the direct means for meeting competition.

4 . If Merck makes a statement in their annual report that the organization wishes "to preserve and improve human life," this statement is MOST CLOSELY associated with which of the following? [Hint]
A B C D A goal. An objective. A strategy. A core purpose.

5.

Which of the following would MOST APPROPRIATELY be identified as a core value? [Hint]

A To be a partner for success with a client. B To build relationships and develop innovative solutions that help dynamic people and organizations. C Integrity or passion for excellence. D To help our clients realize their aspirations.

6 . Which of the following growth strategies would be most appropriate for a company that sought as its objective to achieve growth by taking existing products into new markets or market segments? [Hint]
A B C D Market penetration. Market development. Product development. Diversification.

7 . If a firm acquires one or more of its competitors for the purpose of growing, which of the following integration strategies would the firm be pursuing? [Hint]
A B C D Backward integration. Forward integration. Horizontal integration. Dual integration.

8.
A B C D

All of the following would be considered to be retrenchment strategies EXCEPT: [Hint]

cost cutting. divestment. liquidation. joint venture.

9 . The term "uniqueness" is a term MOST CLOSELY associated with which of the following generic strategies? [Hint]
A B C D Cost leadership. Differentiation. Focus. Everyday low prices (EDLP).

10 . Which of the following e-business strategies would be most appropriate for the present business model being used by eBay and other consumer-oriented auction sites? [Hint]
A B C D Business to consumer (B2C). Business to business (B2B). Consumer to consumer (C2C). Consumer to business (C2B).

The Internal Audit


1.
A B C D
Which of the following BEST DESCRIBES the purpose of the internal audit? [Hint]

To discover opportunities and threats. To identify competitively relevant strengths and weaknesses. To enhance the prospect of global expansion. To discover the mission of the organization.

2 . Which of the following would MOST LIKELY be a question asked during the "Perform Situation Analysis" stage of the strategic management framework model? [Hint]

A B C D

What is the purpose of the vision statement? Which expansion strategy is most appropriate? What are core competencies and how do they relate to strategy? Which functional unit should be in charge of strategy implementation?

3 . All of the following would be considered to be among the four stages of the internal auditing process EXCEPT: [Hint]
A B C D assessment of performance. analysis of value chain activities. understanding core competencies. determine opportunities and threats.

4 . During which of the following stages of the internal audit process would "consider both financial and non-financial measures of value creation" most likely be found? [Hint]
A B C D Assessment of performance. Analysis of value chain activities. Understanding core competencies. Determine strengths and weaknesses.

5 . According to the chapter, it is useful to calculate return on equity (ROE) in three parts (three measures). All the following would be among those three parts (measures) EXCEPT: [Hint]
A B C D efficiency. effectiveness. cash flow. leverage.

6 . The ratio name for "the extent to which a firm can meet its short-term obligations without relying on the sale of its inventories" is called the: [Hint]
A B C D debt-to-equity ratio. quick ratio. inventory turnover. gross profit margin.

7.

The value chain is primarily a tool to help managers: [Hint]

A build stock portfolios. B reduce dependence on distributors. C visualize and analyze their organization's value-creating activities.

D secure overseas alliances.

8 . Which of the following would MOST CLOSELY be associated with the core competency skills test of extendibility? [Hint]
A A core competency must make a significant contribution to perceived customer benefits of the end product. B A core competency provides potential access to a wide variety of markets. C A core competency must provide competitor differentiation. D A core competency must be profitable.

9 . All of the following would be considered to be among the risks that firms are vulnerable to if the firm ignores core competencies and focuses exclusively on end products EXCEPT: [Hint]
A B C D the danger of governmental intervention. the danger of underinvestment in developing core competencies. imprisoned resources. bounded innovation.

10 . To determine whether a potential strength is real and competitively relevant, a manager must address four questions. One of these questions is: [Hint]
A B C D the question of sales personnel. the question of advertising response. the question of managerial control. the question of value.

he External Audit
Which of the following subjects would be a potential area for examination in the Perform Situation Analysis stage (second stage) of the strategic management framework model?

A Mission development.

Vision development or initiation.

C Develop and conduct an external audit.

Crafting strategy.

2.
[Hint]

All of the following would be considered to be challenges of the external audit process EXCEPT:

the environmental audit is almost always too expensive to conduct correctly.

the environmental change is accelerating and the significance of changes may be difficult to determine. an external audit cannot tell the future.

manager's strongly held beliefs inhibit detection and rational interpretation of issues and organizational limitations.

3 . The macro environment includes four clusters of general forces outside the control of the organization. Which of the following would be one of those clusters? [Hint]
Competito rs. Suppliers.

Technolog y. Customer s.

The external landscape for an organization is characterized in the chapter with a drawing (figure) that shows two concentric ovals. Which of the following combinations would BEST describe the major forces shown in those two concentric ovals? [Hint]

4.

The internal environment and supply chains. The macro and task environments.

The marketing mix and internal environment. The stakeholder organizations and shareholder wealth.

5.
[Hint]

Suppliers, competitors, customers, substitute products, and new entrants are all forces within the:

macro environment of the external landscape. internal environment of the marketing landscape. task environment of the external landscape. global environment of the external landscape.

6.

The organization's task environment is often related closely to: [Hint]

its technology base.

its industry.

its position in the general economy. its sociological cluster.

Industry scope, according to the chapter, has four dimensions. Which of the following would be one of those dimensions? [Hint]

7.

Parallel scope.

Demographic scope. E-commerce scope. Vertical scope.

8 . Which of the following industry scope forms pertains to whether physically separate markets should be treated as being served by the same industry or distinct industries? [Hint]
Horizontal scope. Vertical scope.

Geographical scope. Competitor scope.

9 . Which of the following WOULD NOT be among the forces driving industry competitiveness according to Michael Porter? [Hint]
Bargaining power of suppliers.

Substitute products.

Bargaining power of top management of the firm.

Bargaining power of customers.

10 . Which of the following entry barriers faced by new competitors attempting to enter an established industry would be characterized by the phrase "customer loyalty to the brand?" [Hint]
Economies of scale. Product differentiation. Capital requirement. Distribution channels.