1.
Firms must be aware of goals other than short-term profit
maximization. One area of concern should be social responsibility
which is:
the expectation that business will strive to improve the overall welfare
of society
2. __________ may be considered the advance work that must be done in
order to effectively formulate and implement strategies.
Strategy analysis
3. The value net is a game-theoretic approach that _____________.
is a way to analyze all the players in a game and analyze how their
interactions affect the ability of a firm to generate and appropriate value
4. Business-level strategy focuses on (1) what businesses to compete
in, and (2) the management of the business portfolio to create
synergy among its businesses.
False
5. Five-Forces analysis implicitly assumes a zero-sum game, a
perspective that can be short-sighted
True
6.
Former Chrysler vice chairman Robert Lutz observed that companies
exist to serve the shareholder and create shareholder value. He insisted that
the only person who owns the company is the person who paid good money
for it. This is an example of a symbiotic approach to stakeholder
management.
False
7.
Which of the following statements about strategic groups is FALSE?
Strategic groupings are of little help to a firm in assessing mobility
barriers that protect a group from attacks by other groups.
Question 8
A danger of forecasting discussed in the text is that________________
managers may view uncertainty as “black and white” while ignoring
important “gray areas”.
Question 9
Even with all of the advances in recent years, forecasting is typically
considered more of an art than a science and it is of little use in generating
accurate predictions.
False
Question 10
Which of the following would be an entry barrier?
large economies of scale
Question 11
According to Henry Mintzberg, a management scholar, most firms
realize their original intended strategy.
False
Question 12
Shell, NEC, and Procter and Gamble have been measuring their
performance according to what has been called a triple bottom line. This
technique involves an assessment of financial, social, and environmental
performance.
True
Question 13
In general, the threat of substitutes is heightened because the Internet
____________.
introduces new ways to accomplish the same task
Question 14
Environmental scanning and competitor intelligence provide important
inputs for forecasting activities.
True
Question 15
The four key attributes of strategic management include the idea that:
strategy must be directed toward overall organizational goals and
objectives
Question 16
An automobile manufacturer acquires a rental car company. This is an
example of _____.
forward integration
Question 17
New communication technology can impact seemingly unrelated
industries such as the airline industry. This would be an example of a
______________.
threat of substitute products
Question 18
The most intense rivalry results from _____________.
numerous equally balanced competitors, slow industry growth, high
fixed or storage costs
Question 19
The aging of the population is a hard trend.
True
Question 20
Competitive intelligence generally does not benefit very much from
gathering information on competitors from sources in the public domain.
False
Question 21
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.
False
Question 22
A mission statement encompasses both the purpose of the
organization as well as its basis of competition, and the basis of its
competitive advantage.
True
Question 23
The hierarchy of organizational goals is in this order (least specific to
most specific):
vision statements, mission statements, strategic objectives
Question 24
Environmental scanning and competitor intelligence provide important
inputs for forecasting activities.
True
Question 25
The strategic groups in the worldwide automobile industry have been
very stable and unchanging in recent years.
False
Question 26
The text argues that a strategic perspective in an organization should
be emphasized:
throughout the organization
Question 27
Effectiveness is often defined as:
doing the right thing
Question 28
The three primary participants in corporate governance are: (1) the
shareholders, (2) the management (led by the chief executive officer), and (3)
the employees.
False
Question 29
Examples of __________ include: To be the happiest place on earth
(Disneyland), and Restoring patients to full life (Medtronic).
vision statements
Question 30
Business-level strategy focuses on (1) what businesses to compete in,
and (2) the management of the business portfolio to create synergy among
its businesses.
False
Question 31
The text addresses two perspectives of leadership as well as their
implications. These two perspectives are:
romantic and external control
