Management-Behavior mid-term Study-guide 2011 1) All of these are pitfalls an organization should avoid in strategic planning EXCEPT Answer:

Using plans as a standard for measuring performance. 2) The strategic-management process represents a(n) ________, ________, and ________ approach for determining an enterprise's future direction. Answer: Logical; systematic; objective 3) ________ is used to refer to strategic formulation, implementation and evaluation, with ________ referring only to strategic formulation. Answer: Strategic management; strategic planning 4) Which statement best describes intuition? Answer: It should be coupled with analysis in decision-making. 5) The act of strengthening employees' sense of effectiveness by encouraging and rewarding them for participating in decision-making and exercising initiative and imagination is referred to as Answer: Empowerment. 6) The first step in strategic planning is generally Answer: Developing a vision statement. 7) According to McGinnis, a mission statement should be all of the following EXCEPT Answer: it should be specific enough to control creative growth

8) Which group would be classified as stakeholders? Answer: Governments, Creditors, Suppliers, Employees, All of theses 9) What is the best time to develop a mission statement? Answer: When the firm is successful 10) Which component of a mission statement addresses the firm's distinctive competence or major competitive advantage? Answer: Self-concept 11) A business' mission is the foundation for all of the following EXCEPT Answer: employee wage rates 12) All of the following are political, governmental, and legal variables that can represent key opportunities or threats to organizations EXCEPT

Answer: population changes by race, age, sex, and level of affluence 13) What level of bargaining power do consumers have when the products being purchased are standard or undifferentiated? Answer: High 14) Intensity of competition ________ in lower-return industries. Answer: is highest 15) A systematic and ethical process for gathering and analyzing information about the competition's activities and general trends to further a business' own goals is called Answer: competitive intelligence. 16) Which of the three finance/accounting decisions concerns determining the best capital structure for the firm and includes examining various methods by which the firm can raise capital? Answer: Financing 17) ________ exemplifies the complexity of relationships among the functional areas of business. Answer: Financial ratio analysis 18) Which function of management is concerned with span of control and chain of command? Answer: Organizing 19) Which of the following does the text call an up-front investment in success? Answer: Planning 20) Under which strategy would you offer products or services to a wide range of customers at the lowest price available on the market? Answer: Cost Leadership Low Cost 21) Starbucks reaching a deal with Green Mountain Coffee Roasters for that firm to sell packs of Starbucks Tazo-branded coffee and tea in their brewers is an example of which type of strategy? Answer: Forward integration 22) Which of the following is most likely NOT included in the functional level of a small company? Answer: Department managers 23) Which stage of the strategy-formulation framework involves the Quantitative Strategic Planning Matrix? Answer: Stage 3 24) Which strategies are defensive tactics directed at reducing internal weaknesses and avoiding

external threats? Answer: WT 25) In the BCG Matrix, how would a division with a low relative market share position in a high growth industry be described? Answer: Question Mark 26) What are the means by which long-term objectives will be achieved? Answer: Strategies 27) The Internet has transferred power from ________ to ________. Answer: businesses, individuals 28) Who is referred to as the father of modern management? Answer: Drucker 29) The general public is especially interested in ________, whereas stockholders are more interested in ________. Answer: social responsibility; profitability 30) What is the first step in designing an EFE Matrix? Answer: Identifying key external factors in the industry 31) The process whereby a firm determines the costs associated with organizational activities from purchasing raw materials to manufacturing products to marketing those products is called Answer: value chain analysis. 32) Which strategy is effective when new, but related, products could be offered at highly competitive prices? Answer: Related diversification 33) Which of the following is NOT one of the steps involved in constructing a SWOT Matrix? Answer: List the firm's external weaknesses. 34) Which of the following is NOT a pitfall an organization should avoid in strategic planning? Answer: Involving all managers rather than delegating planning to a "planner" 35) When developing a mission statement, what is needed before people can focus on specific strategy formulation activities? Answer: Negotiation, Compromise, Eventual agreement, All of the theses 36) Which of the following sectors of the economy would be most impacted by technological developments? Answer: Aeronautics 37) ________ management deals with inputs, transformations, and outputs that vary across

industries and markets. Answer: Production/operations 38) All of the following situations are conducive to market development EXCEPT Answer: when new channels of distribution are expensive and unreliable 39) For companies located in Quadrant III of the Grand Strategy Matrix, the first strategy recommended is Answer: extensive cost and asset reduction. 40) According to Webster's New World Dictionary, ________ is "the science of planning and directing large-scale military operations, of maneuvering forces into the most advantageous position prior to actual engagement with the enemy." Answer: strategy