Deck 4: Internal Scanning: Organizational Analysis

Question 1

Which one of the following is NOT one of the components that a SBU of any size or level must have?

A) unique mission
B) identifiable competitors
C) external market focus
D) a coordinator of all SBUs
E) control of its business functions

Answer 1

D

Question 2

What is the attribute of corporate culture that promotes the extent to which units within an organization share a common culture?

A) integration p.63)
B) strength
C) intensity
D) coordination
E) unity

Answer 2

A

Question 3

The structure of a corporation is often defined in terms of communication, authority, and work flow. Which of the following describes a typical functional structure?

A) Work is divided into subunits on the basis of areas like manufacturing and marketing.
B) Most appropriate for large corporations with many product lines in several related industries, with employees acting as specialists attempting to gain synergy among divisional activities.
C) Most appropriate for small, entrepreneur-dominated company with one or two product lines that operates in a small niche market, with employees acting as jack-of-all trades.
D) Employees having two or more superiors, a project manager and a functional manager.
E) Most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as specialists but with no attempt at gaining synergy among the divisions.

Answer 3

A

Question 4

The concept that refers to a manufacturing facility's ability to reduce unit production costs of a new product by some fixed percentage as production increases is referred to as

A) the R & D mix.
B) the experience curve.
C) technological competence.
D) break-even analysis.
E) technology transfer.

Question 5

Which one of the following best describes a divisional structure?

A) Work is divided into subunits on the basis of such functions as manufacturing and marketing.
B) Most appropriate for large corporations with many product lines in several related industries, with employees acting as functional specialists attempting to gain synergy among divisional activities.
C) Most appropriate for small, entrepreneur-dominated company with one or two product lines that operates in a small niche market, with employees acting as jack-of-all trades.
D) Employees having two or more superiors, a project manager and a functional manager.
E) Most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as functional specialists but with no attempt at gaining synergy among the divisions.

Question 6

A core competency can be easily imitated to the extent that it is transparent, transferable, and

A) durable.
B) cheap.
C) replicable.
D) tautological.
E) qualitative.

Question 7

Which one of the following best describes a conglomerate structure?

A) Work is divided into subunits on the basis of such functions as manufacturing and marketing.
B) Most appropriate for large corporations with many product lines in several related industries, with employees acting as functional specialists attempting to gain synergy among divisional activities.
C) Most appropriate for small, entrepreneur-dominated company with one or two product lines that operates in a small niche market, with employees acting as jack-of-all trades.
D) Employees having two or more superiors, a project manager and a functional manager.
E) Most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as functional specialists but with no attempt at gaining synergy among the divisions.

Question 8

According to the resource-based view of the firm, which of the following is one of the two characteristics of resources and capabilities that are important in sustaining competitive advantage?

A) timeliness.
B) certainty.
C) translucence.
D) durability.
E) permeability.

Question 9

As compared to a firm with low financial leverage, a firm with a high amount of financial leverage in an expanding market should have

A) lower profits.
B) higher profits
C) higher earnings per share.
D) lower earnings per share.
E) higher sales revenue.

Question 10

What is the attribute of corporate culture that is the degree to which members of a unit accept the norms, values, or other culture content associated with the unit?

A) integration
B) strength
C) intensity
D) coordination
E) unity

Question 11

The VRIO framework evaluates a firm's competencies by examining the variables of value, rareness, imitability, and

A) organization.
B) objective.
C) operating cash flow.
D) outsourcing.
E) ownership.

Question 12

The process of taking a new technology from the laboratory to the marketplace is called

A) economies of scope versus operating leverage.
B) the R & D mix.
C) technological competence.
D) technological discontinuity.
E) technology transfer.

Question 13

The analysis and ranking of possible investments in terms of additional outlays and additional needed receipts is called

A) financial leverage.
B) investment evaluation.
C) strategic study.
D) break-even analysis.
E) capital budgeting.

Question 14

That part of an industry's value chain that is most important to a company and the point where its greatest expertise and capabilities lay is called the company's

A) distinctive competency.
B) technological competence.
C) center of gravity.
D) core competency.
E) key capability.

Question 15

The particular strengths and weaknesses that will help determine the future of the company are called

A) SWOT.
B) competitive forces.
C) internal strategic factors.
D) quality accounting.
E) factor analysis.

Question 16

A graph showing time plotted against the dollar sales of a product as it moves from introduction through growth and maturity to decline is called

A) marketing position.
B) product life cycle.
C) market segmentation.
D) marketing mix.
E) marketing leverage.

Question 17

Flexible manufacturing emphasizes

A) high-volume output of mass produced products.
B) the cost advantages of intermittent system with the customer-oriented advantages of continuous system.
C) the learning curve is longer since technology is automated.
D) economies of scope over economies of scale.
E) economies of scale over economies of scope.

Question 18

The business model in which a company sells products, such as razors, at break-even pricing in order to sell higher-margin products, such as razor blades, is called the

A) time model.
B) multi-component system.
C) customer solutions model.
D) switchboard model.
E) efficiency model.

Question 19

Which of the following best describes a simple structure?

A) Work is divided into subunits on the basis of such functions as manufacturing and marketing.
B) Most appropriate for large corporations with many product lines in several related industries, with employees acting as functional specialists attempting to gain synergy among divisional activities.
C) Most appropriate for small, entrepreneur-dominated company with one or two product lines that operates in a small niche market, with employees acting as jack-of-all trades.
D) Employees having two or more superiors, a project manager and a functional manager.
E) Most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as functional specialists but with no attempt at gaining synergy among the divisions.

Question 20

The particular combination of product, place, promotion, and price is called

A) marketing position.
B) product life cycle.
C) market segmentation.
D) marketing mix.
E) marketing leverage.

Question 21

Weight in column 2 of the IFAS Table refers to

A) management's current response to a particular factor.
B) a particular factor's probable impact on that company's strategic position.
C) the significance of a particular company within a particular industry.
D) how well a company is performing in the industry.
E) whether a factor is important in the long or short term.

Question 22

The technique recommended by the text to summarize an analysis of internal factors is called

A) IFAS.
B) EFAS.
C) SFAS.
D) SWOT.
E) the issues priority matrix.

Question 23

According to the text, the current trend regarding unions is that

A) they are experiencing a renewed sense of power.
B) U.S. membership is declining.
C) they have less significance for the management of multinational corporations.
D) they are maintaining an adversarial position to try to hold onto their membership.
E) corruption and scandal still taint their existence.

Question 24

The term that describes putting once isolated specialists together to work and compare notes in a collective design effort is called

A) simultaneous strategy.
B) participatory planning.
C) jointly-designed objectives.
D) concurrent engineering.
E) cooperative design.