Question 1

A(n) _____ broadly defines an organization's purpose-what it is seeking to achieve from its activities-identifies what is unique or important about its products to its employees and customers, and also distinguishes or differentiates the organization in some ways from its competitors.

Accepted Answer

A)  business plan 
B)  mission statement 
C)  SWOT analysis 
D)  general advertisement 
E)  strategic plan

Question 2

Which of the following will most likely be an opportunity according to an organization's SWOT analysis?

Accepted Answer

A)  The company can probably take over one of its bankrupt competitors. 
B)  The sales of the organization's products are the highest in the industry. 
C)  The organization is growing rapidly without any direction. 
D)  The government has passed a law which will increase labor costs. 
E)  The organization faces increased competition in its market.

Question 3

In order to cater to local tastes and culinary traditions, and often in respect of particular laws or religious beliefs, McDonald's offers customized versions of its menu to suit different countries. This is an example of _____.

Accepted Answer

A)  international strategy 
B)  global strategy 
C)  multidomestic strategy 
D)  low-cost strategy 
E)  unrelated diversification strategy

Question 4

Implementing is a process managers use to identify and select appropriate goals and courses of action for an organization.

Accepted Answer

A) True 
 B)False

Question 5

List and briefly explain the different methods of international expansion. Arrange the methods according to the level of foreign involvement and investment and degree of risk starting from the least to the highest.

Accepted Answer

The answer of List and briefly explain the different methods...

Question 6

The second and intermediate step in an organization's planning process, which is also called strategy formulation, is to analyze the current situation and develop a strategy.

Accepted Answer

A) True 
 B)False

Question 7

Selling the same standardized product and using the same basic marketing approach in each national market is called _____.

Accepted Answer

A)  unrelated diversification strategy 
B)  multidomestic strategy 
C)  national strategy 
D)  focused-differentiation strategy 
E)  global strategy

Question 8

Selling to a foreign organization the rights to use a brand name and operating know-how in return for a lump-sum payment and a share of the profits is referred to as:

Accepted Answer

A)  licensing. 
B)  franchising. 
C)  strategic alliance. 
D)  exporting. 
E)  importing.

Question 9

Typically ______-level goals and strategies require intermediate- and short-term plans.

Accepted Answer

A)  functional 
B)  business 
C)  divisional 
D)  corporate 
E)  global

Question 10

The pharmaceutical industry is extremely dynamic. A company that releases a product to the general public with the intention of keeping prices high may see quick competition arising from other products made from different compounds that perform the same functions as the company's product. According to the five forces model, this type of threat is called _____.

Accepted Answer

A)  the level of rivalry among organizations in an industry 
B)  the potential for entry into an industry 
C)  the power of large suppliers 
D)  the power of large customers 
E)  the threat of substitute products

Question 11

The SUV division of a major automobile corporation decides to release a new model a month ahead of its stated release and notifies all the departments associated with the division. The departmental managers must alter their _____ to accommodate the earlier release date.

Accepted Answer

A)  functional-level plan 
B)  business-level plan 
C)  divisional-level plan 
D)  corporate-level plan 
E)  strategic-level plan

Question 12

A functional-level plan states the goals that the managers of each function will pursue to help their division attain its ______ goals, which, in turn, will allow the entire company to achieve its ______ goals.

Accepted Answer

A)  departmental-level; functional 
B)  business-level; department 
C)  divisional-level; divisional 
D)  business-level; corporate 
E)  functional-level; corporate

Question 13

Planning is important for an organization since a plan can be used as a device for controlling managers within an organization.

Accepted Answer

A) True 
 B)False

Question 14

Discuss the five steps involved in implementing an organizational strategy.

Accepted Answer

The answer of Discuss the five steps involved in implementing...

Question 15

The divisional head of an organization decides to set up the division's technical support center in another country in order to lower costs. This is an example of a functional-level strategy.

Accepted Answer

A) True 
 B)False

Question 16

Employees tend to be motivated and perform better if they are taken in by the vision of the top managers of their organizations. It therefore becomes essential for top managers to develop a strong sense of _____.

Accepted Answer

A)  goal orientation 
B)  strategic leadership 
C)  strategy formulation 
D)  business planning 
E)  organizational affluence

Question 17

A business-level plan details the short-term divisional goals that will allow the division to meet corporate goals.

Accepted Answer

A) True 
 B)False

Question 18

In a first of its kind, a multinational tire manufacturer introduces a new range of premium tires that can handle extreme temperatures better at a higher price. The tires are designed keeping in mind the climatic conditions in the Middle East and products are marketed only in the Middle East. The manufacturer is pursuing ____.

Accepted Answer

A)  a focused differentiation strategy 
B)  a focused low-cost strategy 
C)  a general differentiation strategy 
D)  a general low-cost strategy 
E)  both a low-cost and a differentiation strategy

Question 19

The level of foreign involvement and investment and degree of risk is least in wholly owned foreign subsidiaries.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements about simultaneously pursuing both a low-cost strategy and a differentiation strategy is true?

Accepted Answer

A)  Organizations stuck in the middle tend to have higher levels of performance than those that pursue a low-cost or a differentiation strategy. 
B)  Focusing on the differentiation of a product will result in reduced costs for a company. 
C)  Extremely well managed companies may be able to keep low costs and differentiate their products. 
D)  Managers try to gain a competitive advantage by focusing only on driving the company's costs down below the costs of industry rivals. 
E)  Managers try to gain a competitive advantage by focusing only on distinguishing an organization's products from the products of competitors on dimensions such as product design, quality, or after-sales service.

Exam 8: The Manager As a Planner and a Strategist

A(n) _____ broadly defines an organization's purpose-what it is seeking to achieve from its activities-identifies what is unique or important about its products to its employees and customers, and also distinguishes or differentiates the organization in some ways from its competitors.

Which of the following will most likely be an opportunity according to an organization's SWOT analysis?

In order to cater to local tastes and culinary traditions, and often in respect of particular laws or religious beliefs, McDonald's offers customized versions of its menu to suit different countries. This is an example of _____.

Implementing is a process managers use to identify and select appropriate goals and courses of action for an organization.

List and briefly explain the different methods of international expansion. Arrange the methods according to the level of foreign involvement and investment and degree of risk starting from the least to the highest.

The second and intermediate step in an organization's planning process, which is also called strategy formulation, is to analyze the current situation and develop a strategy.

Selling the same standardized product and using the same basic marketing approach in each national market is called _____.

Selling to a foreign organization the rights to use a brand name and operating know-how in return for a lump-sum payment and a share of the profits is referred to as:

Typically ______-level goals and strategies require intermediate- and short-term plans.

The SUV division of a major automobile corporation decides to release a new model a month ahead of its stated release and notifies all the departments associated with the division. The departmental managers must alter their _____ to accommodate the earlier release date.

A functional-level plan states the goals that the managers of each function will pursue to help their division attain its goals, which, in turn, will allow the entire company to achieve its goals.

Planning is important for an organization since a plan can be used as a device for controlling managers within an organization.

Discuss the five steps involved in implementing an organizational strategy.

The divisional head of an organization decides to set up the division's technical support center in another country in order to lower costs. This is an example of a functional-level strategy.

Employees tend to be motivated and perform better if they are taken in by the vision of the top managers of their organizations. It therefore becomes essential for top managers to develop a strong sense of _____.

A business-level plan details the short-term divisional goals that will allow the division to meet corporate goals.

The level of foreign involvement and investment and degree of risk is least in wholly owned foreign subsidiaries.

Which of the following statements about simultaneously pursuing both a low-cost strategy and a differentiation strategy is true?