MGT 498 FINAL EXAMINATION (30/30)

1) In a survey of 50 corporations, which of the following was rated as a benefit of strategic management?A. Clearer sense of vision for the firmB. Higher levels of employee motivationC. Higher levels of job satisfactionD. Improved productivityE. Lower employee turnover2) Research suggests that strategic management evolves through four sequential phases in corporations. The first phase isA. externally-oriented planningB. basic financial planningC. internally-oriented planningD. forecast-based planningE. strategic management3) Strategic management is that set of managerial decisions and actions that determine the long-run performance of a corporation. Which one of the following is NOT one of the basic elements of the strategic management process?A. Strategy formulationB. Strategy implementationC. Statistical process controlD. Evaluation and controlE. Environmental scanning4) The relationship among the board of directors, top management, and shareholders is referred to asA. corporate synergyB. corporate managementC. corporate governanceD. corporate strategyE. corporate responsibility5) The concept that proposes private corporations have responsibilities to society that extend beyond making a profit is known asA. flexible responsibilityB. social responsibilityC. social flexibilityD. managerial responsibilityE. profit maximization6) Who said that the social responsibility of business is a “fundamentally subversive doctrine” and that the one social responsibility of business is “to use its resources and engage in activities designed to increase its profits so long as it stays with the rules of the game…”?A. Adam SmithB. Edward FreemanC. Archie CarrollD. William C. NorrisE. Milton Friedman7) Which of the following is NOT descriptive of external environmental scanning?A. Used as a tool to ensure a corporation’s long-term healthB. Used to monitor, evaluate, and disseminate information from the external environment to key people within the corporationC. Used to identify opportunities and threatsD. It is a tool that corporations use to avoid strategic surpriseE. Used to identify strengths and weaknesses8) According to Porter, the corporation is most concerned withA. the intensity of competition within its industryB. the aggregate level of demand for a product lineC. a market’s position on its life cycleD. the amount of pressure from the societal environmentE. the level of government action in an industry9) When a company determines a competency’s competitive advantage, Barney refers to this issue asA. valueB. rarenessC. imitabilityD. organizationE. durability10) An acronym for the assessment of the external and internal environments of the business corporation in the process of strategy formulation/strategic planning isA. P.E.T.B. M.B.O.C. S.W.O.T.D. S.B.U.E. R.O.I.11) In the development of a SFAS matrix, the first step is toA. enter the ratings of how the company’s management is responding to each of the strategic factorsB. calculate the weighted scoresC. list the most important EFAS and IFAS itemsD. indicate short-term for the durationE. enter the weights for all of the internal factors12) The technique that illustrates how management can match the external opportunities and threats with its strengths and weaknesses to yield four sets of strategic alternatives is called a (an)A. IFAS TableB. EFAS TableC. SFAS TableD. TOWS MatrixE. Issues Priority Matrix13) Which strategy specifies the firm’s overall direction in terms of its general orientation toward growth, the industries or markets in which it competes, and the manner in which it coordinates activities and transfers resources among business units?A. CorporateB. FunctionalC. DivisionalD. OrganizationalE. Business14) Continuous improvement is an operations concept developed inA. the United StatesB. SwedenC. JapanD. GermanyE. Canada15) The process by which a firm approaches its cross-border activities and those of competitors, and plans to approach them in the future, is calledA. stagingB. international strategyC. competitive strategyD. cross-border configuration16) What question must managers ask concerning the relationship between economic logic and international strategy?A. Which geographic areas will we enter?B. How does our international strategy contribute to the economic logic of our business and corporate strategies?C. How does being international make our products more attractive to our customers?D. Which international market-entry strategies will we use?17) Which strategy is developed to pull together the various activities and competencies of each department so that corporate and business unit performance improves and resource productivity is maximized?A. Business strategyB. Competitive strategyC. Generic strategyD. Enterprise strategyE. Functional strategy18) The strategy that deals with product and process innovation and improvement is known as a ________ strategy.A. MarketingB. R&DC. operationsD. financialE. human resource management19) The hiring of new people with new skills, firing of people with inappropriate or substandard skills, and/or training existing employees to learn new skills are included the process ofA. trainingB. staffingC. structuringD. operatingE. financing20) The strategy implementation tool used to determine what actions are going to be taken, by whom, during what time frame, and with what expected results is called a(n)A. mission statementB. action planC. MBOD. TQME. succession plan21) Executives with a particular mix of skills and experiences may be classified as an executive type and paired withA. a specific personal characteristicB. a specific corporate strategyC. a certain educational backgroundD. a specific experience backgroundE. a specific industry22) According to the text, what is the “key” to effective management of change in culture? A. PlanningB. OperationalizationC. EvaluationD. StaffingE. Communication23) The sum total of the activities and choices required for the execution of a strategic plan is known as inA. strategic formulationB. environmental scanningC. strategy implementationD. evaluation and controlE. strategic development24) Who typically implements strategy in large, multi-industry corporations?A. The board of directorsB. Top managementC. Middle managementD. First level managementE. Everyone in the organization25) Which one of the following is NOT a part of the evaluation and control of performance?A. Establish corporate strategies.B. Determine what to measure.C. Establish standards for performance.D. Measure actual performance.E. Take corrective actions.26) The end result of activity is known asA. measurementB. gratuityC. performanceD. return on equityE. achievement27) Which is the MOST commonly used measure of corporate performance (in terms of profit)?A. EPSB. ROEC. DPSD. ROIE. ROVA28) Because of the belief that accounting-based numbers such as ROI, ROE, and EPS are not reliable indicators of a corporation’s economic value, which method of corporate performance is now preferred?A. Shareholder valueB. Basic earning powerC. Price/earnings ratioD. Profit margin on salesE. Return on assets29) Which company experienced a tarnished reputation and scandal after experiencing behavior substitution when employees altered their behavior on the job to fit the reward system?A. Sears, Roebuck, & Co.B. J.C. PenneyC. Neiman MarcusD. SaksE. Macy’s30) Suboptimization occurs whenA. a division or functional unit views itself as a separate entity and refuses to cooperate with other divisions or units to the detriment of the organization as a wholeB. there is a failure to produce at or near full capacityC. individuals are placed into positions not suited to their abilitiesD. managers tend to focus more of their attentions on those aspects which are measurable than on those which are notE. managers concentrate too much on short-term performance objectives