Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

According to Henry Fayol an effective plan should have four qualities, namely unity, continuity, accuracy, and _____.

Accepted Answer

A)  sustainability 
B)  flexibility 
C)  accountability 
D)  consistency 
E)  synergy

Question 3

_____ is a corporate-level strategy that emphasizes on reinvesting a company's profits in strengthening its competitive position in its current industry.

Accepted Answer

A)  Concentration on a single industry 
B)  Forward vertical integration 
C)  Diversification 
D)  Backward vertical integration 
E)  International expansion

Question 4

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 5

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 6

Discuss the five major threats of Michael Porter's five forces model.

Accepted Answer

The answer of Discuss the five major threats of Michael...

Question 7

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 8

An agreement in which managers pool or share their organization's resources and know-how with a foreign company, and the two organizations share the rewards and risks of starting a new venture is called a(n) _____.

Accepted Answer

A)  takeover agreement 
B)  franchise sharing 
C)  license lending 
D)  strategic alliance 
E)  foreign subsidiary

Question 9

In performing a SWOT analysis, a firm realized that its managers were untrained to handle the requirements of its new division. The firm would classify this as a(n) _____.

Accepted Answer

A)  strength 
B)  weakness 
C)  opportunity 
D)  threat 
E)  advantage

Question 10

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 11

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 high levels of performance than those that pursue a low-cost or a differentiation strategy. 
B)  Focusing on 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.

Question 12

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 13

Functional goals and strategies should be independent of divisional and corporate goals and strategies.

Accepted Answer

A) True 
 B)False

Question 14

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 15

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 16

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 17

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 18

There has been a rapid increase in the percentage of 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 setup 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

Question 19

Though not formally written, an organization allows its employees to dress casually on Fridays. This is a(n) _____ of the organization.

Accepted Answer

A)  policy 
B)  rule 
C)  standard operating procedure 
D)  standing plan 
E)  ethical code

Question 20

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...

Exam 8: The Manager As a Planner and a Strategist

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

According to Henry Fayol an effective plan should have four qualities, namely unity, continuity, accuracy, and _____.

_____ is a corporate-level strategy that emphasizes on reinvesting a company's profits in strengthening its competitive position in its current industry.

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) _____.

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

Discuss the five major threats of Michael Porter's five forces model.

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.

An agreement in which managers pool or share their organization's resources and know-how with a foreign company, and the two organizations share the rewards and risks of starting a new venture is called a(n) _____.

In performing a SWOT analysis, a firm realized that its managers were untrained to handle the requirements of its new division. The firm would classify this as 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 _____.

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

Functional goals and strategies should be independent of divisional and corporate goals and strategies.

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.

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

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.

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.

Though not formally written, an organization allows its employees to dress casually on Fridays. This is a(n) _____ of the organization.

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