Question 1

SWOT analysis is a planning exercise in which managers identify external environmental strengths and weaknesses.

Accepted Answer

A) True 
 B)False

Question 2

A _____ enables managers to make midcourse corrections if environmental changes warrant or to change the thrust of the plan altogether if it no longer seems appropriate?

Accepted Answer

A)  standing plan 
B)  long-term plan 
C)  rolling plan 
D)  contingency plan 
E)  general plan

Question 3

In large organizations the functional level of management is also known as the _____ of management.

Accepted Answer

A)  business level 
B)  corporate level 
C)  divisional level 
D)  departmental level 
E)  top level

Question 4

Though a company's netbook prices are higher than other netbooks with the same configuration, the company offers features that are exclusive only to its netbooks. The company is following a differentiation strategy.

Accepted Answer

A) True 
 B)False

Question 5

Discuss the four qualities of an effective plan as emphasized by Henri Fayol.

Accepted Answer

The answer of Discuss the four qualities of an effective...

Question 6

A beverage manufacturer enters the snack food business with the purchase of a popular potato chip company. This is an example of diversification.

Accepted Answer

A) True 
 B)False

Question 7

Holding specific individuals or groups responsible for the attainment of corporate, divisional, and functional goals is the last step in implementing strategy.

Accepted Answer

A) True 
 B)False

Question 8

To determine an organization's missions and goals, managers must first _____.

Accepted Answer

A)  perform a SWOT analysis 
B)  apply the Five Forces Model 
C)  define its business 
D)  develop a long-term plan 
E)  develop a short-term plan

Question 9

In the Five Forces Model, the _____ that companies compete against one another for customers, the _____ the level of profits is likely to be for that industry.

Accepted Answer

A)  more; lower 
B)  more; higher 
C)  less; lower 
D)  less; equal 
E)  more; equal

Question 10

A winery decides to manufacture its own bottles instead of purchasing them from a bottle manufacturing company to reduce costs. The winery is employing a forward vertical integration strategy.

Accepted Answer

A) True 
 B)False

Question 11

Japanese consumer electronics company Sony Corporation and the Swedish telecommunications company Ericsson combining a part of their resources to manufacture mobile phones is an example of a(n) _____.

Accepted Answer

A)  joint venture 
B)  acquisition 
C)  wholly owned subsidiary 
D)  merger 
E)  hostile takeover

Question 12

Cameo Ltd., a record label company, subsequently entered the airline industry to expand business. This example of a record label company entering the airline industry is an example of _____.

Accepted Answer

A)  vertical integration 
B)  unrelated diversification 
C)  related diversification 
D)  horizontal integration 
E)  concentration

Question 13

Allowing a foreign organization to take charge of manufacturing and distributing a product in its country or world region in return for a negotiated fee is referred to as:

Accepted Answer

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

Question 14

A(n) _____ strategy indicates how a division intends to compete against its rivals in an industry.

Accepted Answer

A)  corporate-level 
B)  business-level 
C)  functional-level 
D)  departmental-level 
E)  international-level

Question 15

Policies, rules, and standard operating procedures (SOPs) are all types of _____ plans.

Accepted Answer

A)  single-use 
B)  functional 
C)  rolling 
D)  standing 
E)  scenario

Question 16

When establishing goals, setting a completion time acts as a demotivator.

Accepted Answer

A) True 
 B)False

Question 17

Entering a new industry or buying a company in a new industry that is not related in any way to an organization's current businesses or industries is called unrelated diversification.

Accepted Answer

A) True 
 B)False

Question 18

Because of the hostile external environment, AKY Consulting treats its multiyear corporate-level plan as a _____ plan in order to maintain flexibility without losing sight of the need to plan for the long term.

Accepted Answer

A)  fixed 
B)  general 
C)  standing 
D)  rolling 
E)  business

Question 19

Most electronic goods have the option of changing the operating language. This is done by manufacturers so that the same electronic device can be supplied and marketed around the world. The manufacturers in this case are applying a(n) _____.

Accepted Answer

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

Question 20

There has been a rapid increase in the percentage of the population of a third-world nation switching to cellular technology in recent years. A major multinational telecommunication services company decides to take advantage of this change and plans to set up an industry in the country with the intention of dominating the country's telecommunication market. This is an example of a _____.

Accepted Answer

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

Exam 8: The Manager As a Planner and a Strategist

SWOT analysis is a planning exercise in which managers identify external environmental strengths and weaknesses.

A _____ enables managers to make midcourse corrections if environmental changes warrant or to change the thrust of the plan altogether if it no longer seems appropriate?

In large organizations the functional level of management is also known as the _____ of management.

Though a company's netbook prices are higher than other netbooks with the same configuration, the company offers features that are exclusive only to its netbooks. The company is following a differentiation strategy.

Discuss the four qualities of an effective plan as emphasized by Henri Fayol.

A beverage manufacturer enters the snack food business with the purchase of a popular potato chip company. This is an example of diversification.

Holding specific individuals or groups responsible for the attainment of corporate, divisional, and functional goals is the last step in implementing strategy.

To determine an organization's missions and goals, managers must first _____.

In the Five Forces Model, the _ that companies compete against one another for customers, the _ the level of profits is likely to be for that industry.

A winery decides to manufacture its own bottles instead of purchasing them from a bottle manufacturing company to reduce costs. The winery is employing a forward vertical integration strategy.

Japanese consumer electronics company Sony Corporation and the Swedish telecommunications company Ericsson combining a part of their resources to manufacture mobile phones is an example of a(n) _____.

Cameo Ltd., a record label company, subsequently entered the airline industry to expand business. This example of a record label company entering the airline industry is an example of _____.

Allowing a foreign organization to take charge of manufacturing and distributing a product in its country or world region in return for a negotiated fee is referred to as:

A(n) _____ strategy indicates how a division intends to compete against its rivals in an industry.

Policies, rules, and standard operating procedures (SOPs) are all types of _____ plans.

When establishing goals, setting a completion time acts as a demotivator.

Entering a new industry or buying a company in a new industry that is not related in any way to an organization's current businesses or industries is called unrelated diversification.

Because of the hostile external environment, AKY Consulting treats its multiyear corporate-level plan as a _____ plan in order to maintain flexibility without losing sight of the need to plan for the long term.

Most electronic goods have the option of changing the operating language. This is done by manufacturers so that the same electronic device can be supplied and marketed around the world. The manufacturers in this case are applying a(n) _____.