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