Question 1

Which of the following is NOT a goal of financial strategies?

Accepted Answer

A) Examine the financial implication of corporate and business level strategic options and identify the best financial course of action. 
B) Provide the corporation with the appropriate financial structure and funds to achieve its overall objectives. 
C) Institute a new product development plan to generate profit potential. 
D) Provide competitive advantage through a lower cost of funds and a flexible ability to raise capital to support a business strategy. 
E) Attempt to maximize the financial value of the firm. 
A) Examine the financial implication of corporate and business level strategic options and identify the best financial course of action. 
B) Provide the corporation with the appropriate financial structure and funds to achieve its overall objectives. 
C) Institute a new product development plan to generate profit potential. 
D) Provide competitive advantage through a lower cost of funds and a flexible ability to raise capital to support a business strategy. 
E) Attempt to maximize the financial value of the firm.

Question 2

What are the strategies to avoid proposed by the authors?

Accepted Answer

The strategies to avoid are as follows:

Question 3

When crafted correctly, an effective policy accomplished all but which of the following?

Accepted Answer

A) It forces trade-offs between competing resource demands. 
B) It tests the strategic soundness of a particular action. 
C) It grants employees freedom to experiment within its constraints. 
D) It sets boundaries within which employee must operate while granting them freedom to experiment within those constraints. 
E) All of the above 
A) It forces trade-offs between competing resource demands. 
B) It tests the strategic soundness of a particular action. 
C) It grants employees freedom to experiment within its constraints. 
D) It sets boundaries within which employee must operate while granting them freedom to experiment within those constraints. 
E) All of the above

Question 4

There is mounting evidence that when an organization is facing a dynamic environment, the best strategic decisions are arrived at through consensus when everyone agrees on one alternative.

Accepted Answer

A) True 
 B)False

Question 5

The automobile industry is currently experimenting with the strategy of mass customization in which pre-assembled sub-assemblies are delivered as they are needed to a company's assembly line workers.

Accepted Answer

A) True 
 B)False

Question 6

If a company wishes to be a technological leader and also maintain a cost advantage, the appropriate R&D strategy would be to

Accepted Answer

A) increase the cost of the product. 
B) lower the cost of the product or value activities by learning from the leader's experience. 
C) avoid R&D costs through imitation. 
D) create low-cost ways of performing value activities. 
E) innovate in other activities to increase buyer value. 
A) increase the cost of the product. 
B) lower the cost of the product or value activities by learning from the leader's experience. 
C) avoid R&D costs through imitation. 
D) create low-cost ways of performing value activities. 
E) innovate in other activities to increase buyer value.

Question 7

Purchasing a product or service from an outside contractor that had been previously provided internally is called

Accepted Answer

A) vertical integration. 
B) horizontal integration. 
C) transaction costing. 
D) outsourcing. 
E) geographic integration. 
A) vertical integration. 
B) horizontal integration. 
C) transaction costing. 
D) outsourcing. 
E) geographic integration.

Question 8

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

Accepted Answer

Corporate scenarios are pro forma balanc

Question 9

In evaluating a strategic alternative, if there is little fit with the company's culture, what are management's options?

Accepted Answer

In evaluating a strategic alternative, m

Question 10

According to Porter, to achieve a differentiation competitive strategy by following the functional strategy of technological leadership a business unit should

Accepted Answer

A) pioneer the lowest-cost product design. 
B) innovate in other activities to increase buyer value. 
C) avoid R&D costs through imitation. 
D) create low-cost ways of performing value activities. 
E) be the first firm down the learning curve. 
A) pioneer the lowest-cost product design. 
B) innovate in other activities to increase buyer value. 
C) avoid R&D costs through imitation. 
D) create low-cost ways of performing value activities. 
E) be the first firm down the learning curve.

Question 11

Avon is an example of a company that demonstrated having a diverse workforce

Accepted Answer

A) can be a competitive advantage. 
B) can lower productivity. 
C) can be an effective IT strategy. 
D) can hinder quality. 
E) hinders growth. 
A) can be a competitive advantage. 
B) can lower productivity. 
C) can be an effective IT strategy. 
D) can hinder quality. 
E) hinders growth.

Question 12

The purchasing strategy in which two suppliers are the sole suppliers of different parts, but are also the backup suppliers for each other's parts 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 13

Which one of the following is NOT true of risk?

Accepted Answer

A) It is composed of the length of time the asset will be unavailable for other uses. 
B) It is the probability that the strategy will be effective. 
C) Managers who own a significant amount of stock in their firms are less likely to engage in risk-taking actions. 
D) It is the amount of assets the corporation must allocate to that strategy. 
E) The greater the assets involved, the more likely top management is to demand a high probability of success. 
A) It is composed of the length of time the asset will be unavailable for other uses. 
B) It is the probability that the strategy will be effective. 
C) Managers who own a significant amount of stock in their firms are less likely to engage in risk-taking actions. 
D) It is the amount of assets the corporation must allocate to that strategy. 
E) The greater the assets involved, the more likely top management is to demand a high probability of success.

Question 14

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 work day is just beginning.

Accepted Answer

A) True 
 B)False

Question 15

A popular financial strategy in which a company is acquired in a transaction financed largely by debt ∙ eventually paid off 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 16

Some executives show a self-serving tendency to attribute the firm's problems not to their own poor decisions, but to environmental events out of their control such as government policies or a poor economic climate.

Accepted Answer

A) True 
 B)False

Question 17

An example of the use of the leader R&D functional strategy to achieve a low-cost competitive advantage is Dean Foods Company.

Accepted Answer

A) True 
 B)False

Question 18

Penetration pricing attempts to hasten market development and offers the pioneer the opportunity to use the experience curve to gain market share with a low price and dominate the industry.

Accepted Answer

A) True 
 B)False

Question 19

As it relates to operations, AMT stands for

Accepted Answer

A) Automated Manufacturing Technology. 
B) Advanced Manufacturing Technology. 
C) Asymptotic Manufacturing Technology. 
D) Advanced Monotone Technology. 
E) Automated Manufacturing Technician. 
A) Automated Manufacturing Technology. 
B) Advanced Manufacturing Technology. 
C) Asymptotic Manufacturing Technology. 
D) Advanced Monotone Technology. 
E) Automated Manufacturing Technician.

Question 20

The use of the Internet to market goods directly to the customer allows a company to use dynamic pricing.

Accepted Answer

A) True 
 B)False

Which of the following is NOT a goal of financial strategies?

What are the strategies to avoid proposed by the authors?

When crafted correctly, an effective policy accomplished all but which of the following?

There is mounting evidence that when an organization is facing a dynamic environment, the best strategic decisions are arrived at through consensus when everyone agrees on one alternative.

The automobile industry is currently experimenting with the strategy of mass customization in which pre-assembled sub-assemblies are delivered as they are needed to a company's assembly line workers.

If a company wishes to be a technological leader and also maintain a cost advantage, the appropriate R&D strategy would be to

Purchasing a product or service from an outside contractor that had been previously provided internally is called

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

In evaluating a strategic alternative, if there is little fit with the company's culture, what are management's options?

According to Porter, to achieve a differentiation competitive strategy by following the functional strategy of technological leadership a business unit should

Avon is an example of a company that demonstrated having a diverse workforce

The purchasing strategy in which two suppliers are the sole suppliers of different parts, but are also the backup suppliers for each other's parts is

Which one of the following is NOT true of risk?

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 work day is just beginning.

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

Some executives show a self-serving tendency to attribute the firm's problems not to their own poor decisions, but to environmental events out of their control such as government policies or a poor economic climate.

An example of the use of the leader R&D functional strategy to achieve a low-cost competitive advantage is Dean Foods Company.

Penetration pricing attempts to hasten market development and offers the pioneer the opportunity to use the experience curve to gain market share with a low price and dominate the industry.

As it relates to operations, AMT stands for

The use of the Internet to market goods directly to the customer allows a company to use dynamic pricing.

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 a goal of financial strategies?

What are the strategies to avoid proposed by the authors?

When crafted correctly, an effective policy accomplished all but which of the following?

There is mounting evidence that when an organization is facing a dynamic environment, the best strategic decisions are arrived at through consensus when everyone agrees on one alternative.

The automobile industry is currently experimenting with the strategy of mass customization in which pre-assembled sub-assemblies are delivered as they are needed to a company's assembly line workers.

If a company wishes to be a technological leader and also maintain a cost advantage, the appropriate R&D strategy would be to

Purchasing a product or service from an outside contractor that had been previously provided internally is called

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

In evaluating a strategic alternative, if there is little fit with the company's culture, what are management's options?

According to Porter, to achieve a differentiation competitive strategy by following the functional strategy of technological leadership a business unit should

Avon is an example of a company that demonstrated having a diverse workforce

The purchasing strategy in which two suppliers are the sole suppliers of different parts, but are also the backup suppliers for each other's parts is

Which one of the following is NOT true of risk?

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 work day is just beginning.

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

Some executives show a self-serving tendency to attribute the firm's problems not to their own poor decisions, but to environmental events out of their control such as government policies or a poor economic climate.

An example of the use of the leader R&D functional strategy to achieve a low-cost competitive advantage is Dean Foods Company.

Penetration pricing attempts to hasten market development and offers the pioneer the opportunity to use the experience curve to gain market share with a low price and dominate the industry.

As it relates to operations, AMT stands for

The use of the Internet to market goods directly to the customer allows a company to use dynamic pricing.

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