chap 7-9
  • 1. What is the most difficult stage of strategic management?
A) Market research
B) Strategy formulation
C) Strategy implementation
  • 2. Successful strategy formulation guarantees:
A) None of the above
B) Financial success
C) Employee satisfaction
  • 3. What personal qualities are critical for strategy implementation?
A) Risk-taking and networking
B) Discipline, commitment, and sacrifice
C) Creativity and intuition only
  • 4. Annual objectives are:
A) Employee evaluation metrics
B) Short-term, measurable milestones
C) Marketing slogans
  • 5. Key characteristics of annual objectives include:
A) Quantitative, understandable, challenging, compatible, obtainabl
B) Secret, long-term, unmeasurable
C) Vague, flexible, broad
  • 6. Policies in strategy implementation are:
A) Employee bonuses
B) Financial statements
C) Guidelines and procedures supporting annual objectives
  • 7. Resource allocation refers to:
A) Monitoring competitors
B) Setting organizational culture
C) Distributing financial, human, physical, and technological resources
  • 8. Conflict during strategy implementation is:
A) Always destructive
B) Unavoidable and can be constructive
C) Avoided by ignoring opinions
  • 9. A functional organizational structure:
A) Combines functions and divisions
B) Is used by multi-divisional firms
C) Groups employees by function or department
  • 10. A disadvantage of functional structure is:
A) Simple management
B) Poor communication across functions
C) Clear accountability
  • 11. A divisional structure is suitable for:
A) Single-product firms
B) Firms with no departments
C) Large firms with diverse products or markets
  • 12. Matrix structure combines:
A) Human resources and marketing
B) Functional and divisional structures
C) Strategic and operational planning
  • 13. Strategic Business Unit (SBU) structures are used by:
A) Firms with many divisions (>10)
B) Small family businesses
C) Single-product firms
  • 14. Reengineering involves:
A) Outsourcing production
B) econfiguring work processes for efficiency, quality, service, and speed
C) Hiring new managers
  • 15. Resistance to change can be managed by:
A) Anticipating and involving employees in decisions
B) Increasing workload
C) Eliminating communication
  • 16. Linking performance and pay to strategy:
A) Focuses on external competition
B) Reduces motivation
C) Encourages employee alignment with strategic objectives
  • 17. Promoting diversity in HR:
A) Focuses only on marketing
B) Reduces productivity
C) Enhances competitiveness and insights
  • 18. Segmenting and targeting markets:
A) Ignoring customer preferences
B) Reducing marketing expenses
C) Dividing customers and selecting groups to serve
  • 19. Product positioning is:
A) Outsourcing production
B) Hiring skilled employees
C) Creating a unique image and value proposition in customers’ mind
  • 20. Perceptual mapping helps:
A) Calculate financial ratios
B) Compare products/services to competitors in customers’ minds
C) Allocate resources
  • 21. Capital structure refers to:
A) Human resources allocation
B) A firm’s physical assets
C) The proportion of debt to equity on the balance sheet
  • 22. EPS stands for:
A) Earnings post-sale
B) Earnings per share
C) Employee productivity score
  • 23. EBIT stands for:
A) Estimated Business Income Trend
B) Earnings Before Interest and Taxes
C) Earnings Before Internal Training
  • 24. EAT stands for:
A) Earnings After Taxes
B) Expenses and Taxes
C) Economic Asset Total
  • 25. EPS/EBIT analysis helps determine:
A) Optimal organizational structure
B) Best marketing strategy
C) Most appropriate capital structure
  • 26. Projected financial statements:
A) Show past performance
B) Are irrelevant for strategy implementation
C) Show expected financial impact of recommendations
  • 27. Percentage-of-sales method is used to:
A) Evaluate market share
B) Determine employee salaries
C) Forecast COGS and operating expenses
  • 28. Corporate valuation determines:
A) A firm’s cash value for mergers, acquisitions, or internal management
B) Customer satisfaction
C) Employee productivity
  • 29. Net Worth Method values a firm based on:
A) Market share
B) Net income multiple
C) Stockholders’ equity minus goodwill and intangibles
  • 30. Price-Earnings (P/E) Ratio Method uses:
A) Cash flow only
B) Market valuation of earnings
C) Book value
  • 31. Outstanding Shares Method calculates:
A) Market capitalization
B) Revenue growth
C) Debt-to-equity ratio
  • 32. Financial ratio analysis monitors:
A) Liquidity, leverage, activity, profitability, and growth
B) HR policies
C) Marketing effectiveness
  • 33. IPO stands for:
A) Initial Public Offering
B) Internal Process Optimization
C) Investment Planning Overview
  • 34. Issuing bonds is a way to:
A) Merge with another company
B) Reduce employee turnover
C) Raise capital through debt instruments
  • 35. Strategy evaluation is important because:
A) It guarantees profits
B) Even the best strategies can become obsolete
C) It replaces strategy formulation
  • 36. Strategy evaluation should be:
A) Done every five years
B) Continuous
C) A year-end activity only
  • 37. Reviewing the underlying bases of strategy involves:
A) Writing marketing plans
B) Re-examining EFE and IFE matrices
C) Forecasting market trends
  • 38. Measuring organizational performance compares:
A) Employees’ personal goals
B) Expected results to actual results
C) Marketing spend
  • 39. Corrective actions are taken to:
A) Focus solely on marketing
B) Punish managers
C) Realign operations with strategic objective
  • 40. The Balanced Scorecard measures performance across:
A) HR satisfaction only
B) Market share only
C) Financial, customer, internal processes, learning and growth, and social responsibility
  • 41. Corporate governance refers to:
A) Marketing strategy
B) Oversight and direction of the firm by the board of directors
C) Employee relations
  • 42. Board of Directors are elected by:
A) Employees
B) Competitors
C) Shareholders
  • 43. One duty of the board of directors is:
A) Product design
B) Control and oversight of CEO performance
C) Pricing strategy
  • 44. Smaller boards (fewer than 10 members) are:
A) More efficient
B) Not recommended
C) Required by law
  • 45. Strategic management challenges include:
A) Only financial planning
B) Only marketing decisions
C) Art vs. science issue, visibility, contingency planning, auditing
  • 46. Contingency planning is:
A) Annual budgeting
B) Developing alternative plans for unexpected events
C) Marketing research
  • 47. Auditing in strategy evaluation ensures:
A) Accountability and integrity
B) Market share growth
C) Customer satisfaction
  • 48. Effective strategic management requires:
A) Thick documents only
B) People process, not paper process
C) Strict bureaucracy
  • 49. Challenging assumptions helps:
A) Simplify reporting
B) Reduce creativity
C) Encourage critical thinking and reality check
  • 50. Strategy evaluation and governance analogy:
A) A teacher grading exams
B) A chef cooking a meal
C) A car’s dashboard and driver monitoring metrics
  • 51. Matching structure with strategy means:
A) Aligning organizational structure to support strategy
B) Selecting suppliers
C) Choosing marketing tools
  • 52. Alfred Chandler’s insight states:
A) Strategy changes require no structural changes
B) Changes in strategy lead to changes in organizational structure
C) Structure is independent of strategy
  • 53. A disadvantage of divisional structure is:
A) Simple reporting lines
B) Potential for inconsistent policies
C) Better market responsiveness
  • 54. Advantages of matrix structure include:
A) Enhanced communication and resource sharing
B) Simple reporting
C) No dual authority
  • 55. A disadvantage of matrix structure is:
A) Better resource sharing
B) Dual lines of authority, high overhead, potential confusion
C) Better market responsiveness
  • 56. When constructing organizational charts, the chain of command should be:
A) Ignored
B) Flexible
C) Clear
  • 57. Span of control refers to:
A) Number of people reporting to a manager
B) Budget allocation
C) Number of products produced
  • 58. Decentralization is recommended:
A) Only for HR
B) Especially with divisional structures
C) Never
  • 59. Restructuring in production/operations involves:
A) Downsizing to improve efficiency
B) Financial auditing
C) Increasing employee numbers
  • 60. Key issue in production location decisions is:
A) Stock prices
B) Employee benefits
C) Costs and logistics
  • 61. Balancing work life and home life in HR:
A) Reduces productivity
B) Supports employee well-being and morale
C) Focuses only on top managers
  • 62. Creating a strategy-supportive culture means:
A) Reducing operational costs
B) Aligning culture with strategic objectives
C) Following tradition only
  • 63. Engaging customers in social media helps:
A) Track financial performance
B) Reduce marketing costs
C) Gain insights and understand perceptions
  • 64. EPS is calculated as:
A) Net Income × Shares Outstanding
B) Net Income / Number of Shares Outstanding
C) EBIT / Taxes
  • 65. EBIT is also called:
A) Earnings After Tax
B) Dividends
C) Operating Income
  • 66. EAT is calculated by:
A) EPS × Shares
B) EBT - Taxes
C) EBIT - Interest
  • 67. The purpose of EPS/EBIT graph analysis is to:
A) Identify financing option that maximizes EPS
B) Determine employee pay
C) Forecast marketing campaigns
  • 68. Projected financial statements are usually prepared for:
A) 3 years
B) 10 years
C) 5 years
  • 69. Retained earnings are calculated by:
A) Net Income - Dividends
B) EPS × Shares
C) Net Income + Dividends
  • 70. Cash is used as a plug figure in:
A) Tax calculations
B) Balance sheet
C) Cash flow only
  • 71. Net Income Method of valuation uses:
A) Total assets
B) Market price
C) Net Income × 5
  • 72. Financial ratio analysis is important to:
A) Identify strengths and weaknesses
B) Set marketing goals
C) Determine product pricing
  • 73. Liquidity ratios measure:
A) Ability to meet short-term obligations
B) Profitability only
C) Market share
  • 74. Leverage ratios measure:
A) Product positioning
B) Degree of debt financing
C) Short-term obligations
  • 75. Activity ratios evaluate:
A) Efficiency in using assets
B) Profit margin only
C) Employee satisfaction
  • 76. Profitability ratios assess:
A) Firm’s ability to generate profit
B) Operational efficiency
C) Market growth
  • 77. Growth ratios measure:
A) Market positioning
B) Rate of increase in financial performance
C) Customer satisfaction
  • 78. IPOs help companies:
A) Reduce product cost
B) Expand HR policies
C) Raise capital by selling stock to the public
  • 79. Issuing bonds requires:
A) Selling products
B) Reducing dividends
C) Offering fixed interest payments to investors
  • 80. Capital structure decisions impact:
A) Customer segmentation
B) HR policies only
C) EPS and cost of capital
  • 81. Strategy evaluation helps organizations:
A) Reduce costs only
B) Focus solely on marketing
C) Proactively adapt to internal and external changes
  • 82. Reviewing underlying bases of strategy asks whether:
A) Marketing is effective
B) Employees are satisfied
C) External opportunities/threats and internal strengths/weaknesses are still accurate
  • 83. Quantitative criteria in measuring performance include:
A) Customer satisfaction
B) Market share, profitability, sales
C) Product quality
  • 84. Qualitative criteria in performance measurement include:
A) Financial ratios
B) ROI
C) Employee morale, product quality, customer service
  • 85. Corrective actions should:
A) Ignore market trends
B) Realign operations and capitalize on strengths/opportunities
C) Only reduce costs
  • 86. Balanced Scorecard includes which additional category beyond Kaplan & Norton’s four?
A) Marketing effectiveness
B) Financial ratio
C) Community/Social Responsibility/Ethics/Environment
  • 87. Corporate governance ensures:
A) Marketing effectiveness
B) Operational efficiency
C) Lawful, ethical conduct and oversight by the board
  • 88. CEO rarely being the chairperson is recommended because:
A) Simplifies accounting
B) Prevents conflict of interest
C) Improves marketing
  • 89. Visible strategies foster:
A) Employee confusion
B) Less transparency
C) Commitment and support from stakeholders
  • 90. Hidden strategies may be necessary to:
A) Enhance collaboration
B) Avoid competitor retaliation
C) Improve transparency
  • 91. Art vs. science issue in strategic management refers to:
A) Intuitive judgment vs. analytical decision-making
B) Governance vs. operations
C) Marketing vs. production
  • 92. Guidelines for effective strategic management emphasize:
A) Bureaucracy and rigidity
B) People process, learning, data-supported words, simplicity
C) Paperwork over dialogue
  • 93. Challenging assumptions encourages:
A) Status quo
B) Simplifying reporting
C) Critical thinking and accurate assessment of reality
  • 94. Open-mindedness in strategy planning:
A) Creates rigidity
B) Encourages inquiry and learning
C) Reduces efficiency
  • 95. Limiting the number of strategies pursued at once prevents:
A) Data analysis
B) Innovation
C) Overextension and inefficiency
  • 96. Ethics in strategic management ensures:
A) Hidden strategies
B) Reduced planning
C) Good business practices and trust
  • 97. The Balanced Scorecard is like:
A) A training module
B) A marketing report
C) A car dashboard showing multiple performance metric
  • 98. Taking corrective actions is similar to:
A) Marketing the product
B) Adjusting the steering or speed to stay on course
C) Issuing new stock
  • 99. ontinuous strategy evaluation ensures:
A) Compliance with law
B) Sustained competitive advantage
C) Employee satisfaction
  • 100. Governance and evaluation help the firm:
A) Monitor progress, correct course, and ensure long-term success
B) Focus solely on HR
C) Avoid all risk
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