Question 1

Many organizations have a large number of functional areas with very diverse and sometimes competing interests. Such organizations will be most effective if

Accepted Answer

A)   each functional area focuses on achieving their own goals.
B)   goals are defined at the bottom and implemented at the top.
C)   functional areas work together to attain overall goals.
D)   management and employees have separate goals.E) A) and B)
F) A) and C)

Question 2

Effective vision statements include

Accepted Answer

A)   all strategic directions of the organization.
B)   a brief statement of the company's direction.
C)   strategic posturing and future objectives.
D)   financial objectives and projected figures.E) A) and D)
F) C) and D)

Question 3

Corporate level strategy focuses on what businesses to compete in and

Accepted Answer

A)   how business can be managed to achieve synergy.
B)   how business can be managed to reduce synergy.
C)   how the firm can work as a stand-alone entity.
D)   how the firm can create more value by operating alone.E) A) and C)
F) A) and B)

Question 4

The vision and mission statements of a company set the overall direction of the organization. Strategic objectives serve what role?

Accepted Answer

A)   operationalize the mission statement
B)   modify the mission statement
C)   are a shorter version of the mission statement
D)   are only clarified by the board of directorsE) B) and D)
F) B) and C)

Question 5

Supplier stakeholders are concerned with

Accepted Answer

A)   assurance of a continued relationship with the firm.
B)   employee benefits.
C)   safe working conditions.
D)   capital appreciation.E) A) and C)
F) A) and B)

Question 6

Procter and Gamble has perfected a technique for compacting cleaning powder into a liquid concentration. Consumers, retailers, shipping and wholesalers, and environmentalists all havebenefited from the resulting change in consumer shopping habits and the revolution in industry supply-chain economics. According to the text, this is an example of

Accepted Answer

A)   zero-sum relationship among stakeholders.
B)   stakeholder symbiosis.
C)   rewarding stakeholders.
D)   emphasizing financial returns.E) B) and C)
F) All of the above

Question 7

While working to prioritize and fulfill their responsibilities, members of the board of directors of an organization should

Accepted Answer

A)   represent their own interests.
B)   represent the interests of the shareholders.
C)   direct all actions of the CEO.
D)   emphasize the importance of short-term goals.E) B) and C)
F) A) and D)

Question 8

Which of the following is not an example of a financial strategic objective?

Accepted Answer

A)   Increase sales growth 6 percent to 8 percent and accelerate core net earnings growth from 13 percent to 15 percent per share in each of the next 5 years. (Procter & Gamble) 
B)   Reduce volatile air emissions 15 percent by 2015 from 2010 base year, indexed to net sales. (3M) 
C)   Generate Internet-related revenue of $1.5 billion. (AutoNation) 
D)   Cut corporate overhead costs by $30 million per year. (Fortune Brands) E) None of the above
F) B) and D)

Question 9

New value creation is a major engine for economic growth and is the main focus of ________ strategy.

Accepted Answer

A)   portfolio
B)   corporate-level
C)   business-level
D)   entrepreneurialE) A) and C)
F) B) and D)

Question 10

The final realized strategy of a firm is a combination of deliberate and time-tested strategies only.

Accepted Answer

A) True 
 B)False

Question 11

Stockholders as a stakeholder group are interested primarily in

Accepted Answer

A)   payment of interest and repayment of principal.
B)   value and warranties.
C)   dividends and capital appreciation.
D)   taxes and compliance with regulations.E) None of the above
F) All of the above

Question 12

The four key attributes of strategic management include all of the following except

Accepted Answer

A)   including multiple stakeholder interests in decision making.
B)   incorporating both short-term and long-term perspectives.
C)   recognizing the trade-offs between effectiveness and efficiency.
D)   emphasis on the attainment of short-term objectives.E) None of the above
F) A) and D)

Question 13

Management innovations such as total quality, just-in-time, benchmarking, business process reengineering, and outsourcing are important but not enough for building sustainable competitive advantage.

Accepted Answer

A) True 
 B)False

Question 14

Management innovations such as total quality, benchmarking, and business process reengineering cannot lead to sustainable competitive advantage because

Accepted Answer

A)   companies that have implemented these techniques have lost money.
B)   there is no proof that these techniques work.
C)   they cost too much money and effort to implement.
D)   every company is trying to implement them.E) All of the above
F) C) and D)

Question 15

The innovation paradox implies that consistency in products and services provokes a tension with the need for new products. This results in a conflict between

Accepted Answer

A)   stability and change.
B)   structure and culture.
C)   rewards and metrics.
D)   stability and metrics.E) None of the above
F) All of the above

Question 16

According to the text, the triple bottom line approach to corporate accounting includes which three components?

Accepted Answer

A)   financial, environmental, and customer
B)   financial, organizational, and customer
C)   financial, environmental, and social
D)   financial, organizational, and psychologicalE) B) and C)
F) None of the above

Question 17

Much research has supported the notion that individuals work much harder when they are asked to do their best rather than when they are striving toward a specific goal.

Accepted Answer

A) True 
 B)False

Question 18

Ensuring effective corporate governance requires an effective and engaged board of directors, uninvolved shareholders, and proper managerial rewards and incentives.

Accepted Answer

A) True 
 B)False

Question 19

There are several perspectives of competition. One perspective is zero-sum thinking. Zero-sum thinking means that

Accepted Answer

A)   all parts of the organization gain at no loss.
B)   in order for someone to gain others must experience no gain or benefit.
C)   one can only gain at the expense of someone else.
D)   everyone in the organization shares gains and losses equally.E) A) and B)
F) A) and C)

Question 20

Fortune Brands states they will cut corporate overhead costs by $30 million a year. This is an example of a

Accepted Answer

A)   nonfinancial strategic objective.
B)   financial strategic objective.
C)   vision statement.
D)   mission statement.E) A) and D)
F) None of the above

Exam 1: Strategic Management Creating Competitive Advantages

Fortune Brands states they will cut corporate overhead costs by $30 million a year. This is an example of a

Correct Answer
verified

Correct Answer
verified

Stockholders as a stakeholder group are interested primarily in

Correct Answer
verified

Supplier stakeholders are concerned with

Correct Answer
verified

The final realized strategy of a firm is a combination of deliberate and time-tested strategies only.

Correct Answer
verified

The four key attributes of strategic management include all of the following except

Correct Answer
verified

Management innovations such as total quality, just-in-time, benchmarking, business process reengineering, and outsourcing are important but not enough for building sustainable competitive advantage.

Correct Answer
verified

Ensuring effective corporate governance requires an effective and engaged board of directors, uninvolved shareholders, and proper managerial rewards and incentives.

Correct Answer
verified

While working to prioritize and fulfill their responsibilities, members of the board of directors of an organization should

Correct Answer
verified

Corporate level strategy focuses on what businesses to compete in and

Correct Answer
verified

New value creation is a major engine for economic growth and is the main focus of ________ strategy.

Correct Answer
verified

According to the text, the triple bottom line approach to corporate accounting includes which three components?

Correct Answer
verified

Which of the following is not an example of a financial strategic objective?

Correct Answer
verified

Management innovations such as total quality, benchmarking, and business process reengineering cannot lead to sustainable competitive advantage because

Correct Answer
verified

Effective vision statements include

Correct Answer
verified

Many organizations have a large number of functional areas with very diverse and sometimes competing interests. Such organizations will be most effective if

Correct Answer
verified

Much research has supported the notion that individuals work much harder when they are asked to do their best rather than when they are striving toward a specific goal.

Correct Answer
verified

The innovation paradox implies that consistency in products and services provokes a tension with the need for new products. This results in a conflict between

Correct Answer
verified

There are several perspectives of competition. One perspective is zero-sum thinking. Zero-sum thinking means that

Correct Answer
verified

The vision and mission statements of a company set the overall direction of the organization. Strategic objectives serve what role?

Correct Answer
verified

Exam 1: Strategic Management Creating Competitive Advantages

Fortune Brands states they will cut corporate overhead costs by $30 million a year. This is an example of a

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Stockholders as a stakeholder group are interested primarily in

Correct AnswerverifiedShow Answer

Supplier stakeholders are concerned with

Correct AnswerverifiedShow Answer

The final realized strategy of a firm is a combination of deliberate and time-tested strategies only.

Correct AnswerverifiedShow Answer

The four key attributes of strategic management include all of the following except

Correct AnswerverifiedShow Answer

Management innovations such as total quality, just-in-time, benchmarking, business process reengineering, and outsourcing are important but not enough for building sustainable competitive advantage.

Correct AnswerverifiedShow Answer

Ensuring effective corporate governance requires an effective and engaged board of directors, uninvolved shareholders, and proper managerial rewards and incentives.

Correct AnswerverifiedShow Answer

While working to prioritize and fulfill their responsibilities, members of the board of directors of an organization should

Correct AnswerverifiedShow Answer

Corporate level strategy focuses on what businesses to compete in and

Correct AnswerverifiedShow Answer

New value creation is a major engine for economic growth and is the main focus of ________ strategy.

Correct AnswerverifiedShow Answer

According to the text, the triple bottom line approach to corporate accounting includes which three components?

Correct AnswerverifiedShow Answer

Which of the following is not an example of a financial strategic objective?

Correct AnswerverifiedShow Answer

Management innovations such as total quality, benchmarking, and business process reengineering cannot lead to sustainable competitive advantage because

Correct AnswerverifiedShow Answer

Effective vision statements include

Correct AnswerverifiedShow Answer

Many organizations have a large number of functional areas with very diverse and sometimes competing interests. Such organizations will be most effective if

Correct AnswerverifiedShow Answer

Much research has supported the notion that individuals work much harder when they are asked to do their best rather than when they are striving toward a specific goal.

Correct AnswerverifiedShow Answer

The innovation paradox implies that consistency in products and services provokes a tension with the need for new products. This results in a conflict between

Correct AnswerverifiedShow Answer

There are several perspectives of competition. One perspective is zero-sum thinking. Zero-sum thinking means that

Correct AnswerverifiedShow Answer

The vision and mission statements of a company set the overall direction of the organization. Strategic objectives serve what role?

Correct AnswerverifiedShow Answer

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Correct Answer
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