Question 1

Which of the following is NOT one of the major outsourcing errors that should be avoided?

Accepted Answer

A)  failure to keep core activities inhouse 
B)  selecting the wrong vendor 
C)  writing a poor contract 
D)  micromanaging the outsourced activity to maintain control 
E)  overlooking personnel issues 
A)  failure to keep core activities inhouse 
B)  selecting the wrong vendor 
C)  writing a poor contract 
D)  micromanaging the outsourced activity to maintain control 
E)  overlooking personnel issues

Question 2

According to the text, which one of the following is NOT one of the reasons why innovations seem to occur more often in small firms rather than in large, established corporations?

Accepted Answer

A)  An entrepreneur in a small firm is more willing to accept greater risk than would a larger firm of diversified ownership. 
B)  Small firms are completely ignorant of risk management. 
C)  The greater the assets involved and the longer they are tied up, the more likely top management in large firms is to demand a high probability of success. 
D)  Companies operating in global industries must deal with a greater amount of risk than firms operating only in one country. 
E)  If the corporation's stock is widely held as in the case of large firms and experiences stock price declines due to some external assessment, it places the firm in jeopardy of being acquired. 
A)  An entrepreneur in a small firm is more willing to accept greater risk than would a larger firm of diversified ownership. 
B)  Small firms are completely ignorant of risk management. 
C)  The greater the assets involved and the longer they are tied up, the more likely top management in large firms is to demand a high probability of success. 
D)  Companies operating in global industries must deal with a greater amount of risk than firms operating only in one country. 
E)  If the corporation's stock is widely held as in the case of large firms and experiences stock price declines due to some external assessment, it places the firm in jeopardy of being acquired.

Question 3

Distinguish between a market development and a product development strategy.

Accepted Answer

Using a market development strategy, a c

Question 4

The flow of products into and out of the manufacturing process is a factor when developing a(n) ________ strategy.

Accepted Answer

A)  marketing 
B)  logistics 
C)  operations 
D)  financial 
E)  human resource management 
A)  marketing 
B)  logistics 
C)  operations 
D)  financial 
E)  human resource management

Question 5

When a company exchanges 200 shares of stock worth $20 each for 100 shares worth $40 each, they are using

Accepted Answer

A)  tracking stock. 
B)  holding stock. 
C)  an LBO. 
D)  reverse stock split. 
E)  split stock. 
A)  tracking stock. 
B)  holding stock. 
C)  an LBO. 
D)  reverse stock split. 
E)  split stock.

Question 6

A popular financial strategy in which a company is acquired in a transaction financed largely by debt and eventually paid with money generated from the acquired company's operations or by sale of its assets is

Accepted Answer

A)  illegal in most countries. 
B)  a good way to build a core competency. 
C)  an application of the capital asset pricing model. 
D)  the leveraged buyout. 
E)  an example of internal financing. 
A)  illegal in most countries. 
B)  a good way to build a core competency. 
C)  an application of the capital asset pricing model. 
D)  the leveraged buyout. 
E)  an example of internal financing.

Question 7

The purchasing strategy used by an automobile manufacturer when it orders seats for a specific car model from several vendors is

Accepted Answer

A)  sole sourcing. 
B)  multiple sourcing. 
C)  just-in-time sourcing. 
D)  backup sourcing. 
E)  parallel sourcing. 
A)  sole sourcing. 
B)  multiple sourcing. 
C)  just-in-time sourcing. 
D)  backup sourcing. 
E)  parallel sourcing.

Question 8

The follow-the-moon management philosophy allows project team members living in one country to pass their work to team members in another country in which the workday is just beginning.

Accepted Answer

A) True 
 B)False

Question 9

Give an example of a technological leader.

Accepted Answer

A technological leader is a company that

Question 10

Using a market development strategy, a company can capture a larger share of an existing market for current products or develop new markets for current products.

Accepted Answer

A) True 
 B)False

Question 11

The first step in constructing a corporate scenario is to

Accepted Answer

A)  develop a common-sized financial statement. 
B)  construct detailed pro forma financial statements. 
C)  decide upon how much risk management is willing to accept. 
D)  analyze the societal environment. 
E)  use industry scenarios to develop a set of assumptions about the task environment. 
A)  develop a common-sized financial statement. 
B)  construct detailed pro forma financial statements. 
C)  decide upon how much risk management is willing to accept. 
D)  analyze the societal environment. 
E)  use industry scenarios to develop a set of assumptions about the task environment.

Question 12

In a leveraged buyout, the acquired company, in effect, pays for its own acquisition.

Accepted Answer

A) True 
 B)False

Question 13

The strategy that deals with product and process innovation and improvement is known as a(n) ________ strategy.

Accepted Answer

A)  marketing 
B)  R&D 
C)  operations 
D)  financial 
E)  human resource management 
A)  marketing 
B)  R&D 
C)  operations 
D)  financial 
E)  human resource management

Question 14

According to Paul Nutt, a decision-making authority, what percent of decisions made by managers are failures?

Accepted Answer

A)  10 
B)  25 
C)  50 
D)  75 
E)  90 
A)  10 
B)  25 
C)  50 
D)  75 
E)  90

Question 15

What is a corporate scenario? What are the three steps in their construction?

Accepted Answer

Corporate scenarios are pro forma balanc

Question 16

The concept of ________ was taken one step further in JITII, in which vendor sales representatives usually have desks next to the purchasing company's factory floor, attend production status meetings, visit the R&D lab, and analyze the purchasing company's sales forecasts.

Accepted Answer

A)  multiple sourcing 
B)  outsourcing 
C)  sole sourcing 
D)  parallel sourcing 
E)  all of the above 
A)  multiple sourcing 
B)  outsourcing 
C)  sole sourcing 
D)  parallel sourcing 
E)  all of the above

Question 17

The technique used to help strategic managers choose among alternative choices by defining the task environment, developing a set of various forecasts, and using pro forma financial statements is called

Accepted Answer

A)  decision trees. 
B)  SWOT analysis. 
C)  industry scenarios. 
D)  corporate scenarios. 
E)  Capital Asset Pricing Model. 
A)  decision trees. 
B)  SWOT analysis. 
C)  industry scenarios. 
D)  corporate scenarios. 
E)  Capital Asset Pricing Model.

Question 18

Since the deregulation of the airline industry, major airlines have entered into a spirited battle for market share by cutting prices and offering special deals. This is an example of which strategy to avoid?

Accepted Answer

A)  follow the leader 
B)  hit another home run 
C)  arms race 
D)  do everything 
E)  losing hand 
A)  follow the leader 
B)  hit another home run 
C)  arms race 
D)  do everything 
E)  losing hand

Question 19

When a company spends a large amount of money on trade promotion in order to gain or hold shelf space in retail outlets, a company is using a ________ strategy.

Accepted Answer

A)  pull 
B)  push 
C)  financial 
D)  dedicated line 
E)  dynamic pricing 
A)  pull 
B)  push 
C)  financial 
D)  dedicated line 
E)  dynamic pricing

Question 20

The pricing, selling, and distributing of a product is referred to as a(n) ________ strategy.

Accepted Answer

A)  functional 
B)  marketing 
C)  operations 
D)  financial 
E)  human resource management 
A)  functional 
B)  marketing 
C)  operations 
D)  financial 
E)  human resource management

Which of the following is NOT one of the major outsourcing errors that should be avoided?

According to the text, which one of the following is NOT one of the reasons why innovations seem to occur more often in small firms rather than in large, established corporations?

Distinguish between a market development and a product development strategy.

The flow of products into and out of the manufacturing process is a factor when developing a(n) ________ strategy.

When a company exchanges 200 shares of stock worth $20 each for 100 shares worth $40 each, they are using

A popular financial strategy in which a company is acquired in a transaction financed largely by debt and eventually paid with money generated from the acquired company's operations or by sale of its assets is

The purchasing strategy used by an automobile manufacturer when it orders seats for a specific car model from several vendors is

The follow-the-moon management philosophy allows project team members living in one country to pass their work to team members in another country in which the workday is just beginning.

Give an example of a technological leader.

Using a market development strategy, a company can capture a larger share of an existing market for current products or develop new markets for current products.

The first step in constructing a corporate scenario is to

In a leveraged buyout, the acquired company, in effect, pays for its own acquisition.

The strategy that deals with product and process innovation and improvement is known as a(n) ________ strategy.

According to Paul Nutt, a decision-making authority, what percent of decisions made by managers are failures?

What is a corporate scenario? What are the three steps in their construction?

The concept of ________ was taken one step further in JITII, in which vendor sales representatives usually have desks next to the purchasing company's factory floor, attend production status meetings, visit the R&D lab, and analyze the purchasing company's sales forecasts.

The technique used to help strategic managers choose among alternative choices by defining the task environment, developing a set of various forecasts, and using pro forma financial statements is called

Since the deregulation of the airline industry, major airlines have entered into a spirited battle for market share by cutting prices and offering special deals. This is an example of which strategy to avoid?

When a company spends a large amount of money on trade promotion in order to gain or hold shelf space in retail outlets, a company is using a ________ strategy.

The pricing, selling, and distributing of a product is referred to as a(n) ________ strategy.

Basic Concepts in Strategic Management

Corporate Governance

Ethics and Social Responsibility in Strategic Management

Environmental Scanning and Industry Analysis

Internal Scanning and Organizational Analysis

Strategy Formulation: Situation Analysis and Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Implementation: Organizing for Action

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters

Exam 8: Strategy Formulation: Functional Strategy and Strategic Choice

Which of the following is NOT one of the major outsourcing errors that should be avoided?

According to the text, which one of the following is NOT one of the reasons why innovations seem to occur more often in small firms rather than in large, established corporations?

Distinguish between a market development and a product development strategy.

The flow of products into and out of the manufacturing process is a factor when developing a(n) ________ strategy.

When a company exchanges 200 shares of stock worth $20 each for 100 shares worth $40 each, they are using

A popular financial strategy in which a company is acquired in a transaction financed largely by debt and eventually paid with money generated from the acquired company's operations or by sale of its assets is

The purchasing strategy used by an automobile manufacturer when it orders seats for a specific car model from several vendors is

The follow-the-moon management philosophy allows project team members living in one country to pass their work to team members in another country in which the workday is just beginning.

Give an example of a technological leader.

Using a market development strategy, a company can capture a larger share of an existing market for current products or develop new markets for current products.

The first step in constructing a corporate scenario is to

In a leveraged buyout, the acquired company, in effect, pays for its own acquisition.

The strategy that deals with product and process innovation and improvement is known as a(n) ________ strategy.

According to Paul Nutt, a decision-making authority, what percent of decisions made by managers are failures?

What is a corporate scenario? What are the three steps in their construction?

The concept of ________ was taken one step further in JITII, in which vendor sales representatives usually have desks next to the purchasing company's factory floor, attend production status meetings, visit the R&D lab, and analyze the purchasing company's sales forecasts.

The technique used to help strategic managers choose among alternative choices by defining the task environment, developing a set of various forecasts, and using pro forma financial statements is called

Since the deregulation of the airline industry, major airlines have entered into a spirited battle for market share by cutting prices and offering special deals. This is an example of which strategy to avoid?

When a company spends a large amount of money on trade promotion in order to gain or hold shelf space in retail outlets, a company is using a ________ strategy.

The pricing, selling, and distributing of a product is referred to as a(n) ________ strategy.

Basic Concepts in Strategic Management

Corporate Governance

Ethics and Social Responsibility in Strategic Management

Environmental Scanning and Industry Analysis

Internal Scanning and Organizational Analysis

Strategy Formulation: Situation Analysis and Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Implementation: Organizing for Action

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters