Review Test Submission: Ch1 Practice

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Md Ismail Haidar
2015 Fall - MGMT 5380_01_2 - Strategic Management
Ch1 Practice
9/13/15 12:07 PM
9/13/15 12:28 PM
Completed
16 out of 30 points
21 minutes out of 1 hour
Student answers and score are not visible to the instructor.
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Answered Questions

Question 1
0 out of 1 points

In smaller, new venture firms, returns are sometimes measured in terms of

Selected Answer:

d.

return on sales.
Answers:

a.

return on assets.
b.

the amount and speed of growth.

c.

return on equity.
d.

return on sales.

Question 2
0 out of 1 points

Organizational culture refers to

Selected
Answer:
Answers:

a.

the complex set of ideologies, symbols, and core values that are shared
throughout the firm.
a.

the complex set of ideologies, symbols, and core values that are shared
throughout the firm.
b.

All of these options are correct.

c.

the social energy that drives, or fails to drive, the organization.

d.

what people do when no one else is looking.

Question 3
1 out of 1 points

William Ackman is a hedge fund manager who owned a large share of J.C. Penney stock. He
was also a member of the Penney board. He tried to get the CEO fired, but the board and top
management said he breached his boardroom duties when he publicly disclosed information on
the CEO search and financial condition of the company. He resigned from the board of
directors. This is an example of a contentious relationship between
Selected
Answer:

the capital market stakeholders and the organizational stakeholders.

Answers:

a.

d.

all the stakeholders.

b.

the organizational stakeholders and the product market stakeholders.

c.

the capital market stakeholders and the product market stakeholders.

d.

the capital market stakeholders and the organizational stakeholders.

Question 4
1 out of 1 points

Strategic leaders, ______, often work long hours, and their work is filled with ambiguous
decision situations.
Selected Answer:

c.

regardless of their location in the organization

Answers:

a.

at the top of the organization

b.

in the finance area

c.

regardless of their location in the organization

d.

in the operations area

Question 5
1 out of 1 points

A prominent national accounting firm runs television advertisements showing an accountant

working alone late in the office on a client's project, while clenching a long-stemmed rose in his
teeth and grinning ecstatically. The message of the ad is that this firm's accountants love their

work. This ad seeks to convey a sense of the organization's ____ to the viewers.
Selected Answer:

a.

culture
Answers:

a.

culture
b.

vision
c.

mission
d.

personality

Question 6
0 out of 1 points

The strategic management process is

Selected
Answer:
Answers:

a.

a set of activities that will assure a sustainable competitive advantage and aboveaverage returns for the firm.
a.

a set of activities that will assure a sustainable competitive advantage and aboveaverage returns for the firm.
b.

a decision-making activity concerned with a firm's internal resources, capabilities,

and competencies, independent of the conditions in its external environment.
c.

a process directed by top management with input from other stakeholders that
seeks to achieve above-average returns for investors through effective use of the
organization's resources.
d.

the full set of commitments, decisions, and actions required for the firm to
achieve above-average returns and strategic competitiveness.

Question 7
1 out of 1 points

The goal of the organization's ______ is to point the firm in the direction of where it would like
to be in the years to come.
Selected Answer:

b.

vision
Answers:

a.

strategy

b.

vision
c.

culture
d.

mission

Question 8
1 out of 1 points

To have the potential to become sources of competitive advantage, resources and capabilities
must be non-substitutable, valuable, ______, and
Selected Answer:

c.

rare; costly to imitate.

Answers:

a.

unique; easy to imitate.

b.

easy to imitate; difficult to implement.

c.

rare; costly to imitate.

d.

easy to implement; unique.

Question 9
0 out of 1 points

Essentially, _______ has become one of the world's largest markets with 700 million potential
consumers.
Selected Answer:

c.

China
Answers:

a.

Japan
b.

the European Union

c.

China
d.

the United States

Question 10
1 out of 1 points

Product market stakeholders include

Selected Answer:

b.

suppliers.
Answers:

a.

employees.
b.

suppliers.
c.

the firm's chief executive officer.

d.

shareholders.

Question 11
0 out of 1 points

The culmination of the strategic management process is

Selected Answer:

c.

analysis.
Answers:

a.

strategy formulation.
b.

strategy implementation.
c.

analysis.
d.

performance.

Question 12
0 out of 1 points

If McDonald's were to map the profit pool in the quick-service restaurant industry, it would do
all of the following EXCEPT
Selected
Answer:

focus on unattractive industries ignored by competitors.

Answers:

a.

b.

define the industry's boundaries and size.

b.

focus on unattractive industries ignored by competitors.

c.

select the strategy to use where the largest profit pools are located.

d.

estimate the profit potential in each part of the value chain.

Question 13
0 out of 1 points

Before liquidating, Circuit City took several actions to try to satisfy its ______ stakeholders.
Selected Answer:

a.

governmental
Answers:

a.

governmental
b.

capital market
c.

organizational
d.

product market

Question 14
1 out of 1 points

Strategic leaders are

Selected
Answer:

located in different areas and levels.

Answers:

a.

b.

the CEO, COO, and CFO only.

b.

located in different areas and levels.

c.

located at different levels, but only in the operating area of the organization.
d.

located only at the executive level.

Question 15
0 out of 1 points

If McDonald's is considering growing potatoes, the step of the profit pool analysis is the one
that
Selected Answer:

c.

estimates the pool's overall size.

Answers:

a.

estimates the size of the value-chain activity in the pool.

b.

reconciles the calculations.

c.

estimates the pool's overall size.

d.

defines the pool's boundaries.

Question 16
1 out of 1 points

It is important to emphasize that, primarily because they are related to how a firm interacts with
its stakeholders, almost all strategic management process decisions have
Selected Answer:

d.

ethical dimensions.
Answers:

a.

political dimensions.
b.

local dimensions.
c.

global dimensions.
d.

ethical dimensions.

Question 17
1 out of 1 points

Product market stakeholders include the firm's customers, and the principal concern of this
stakeholder group is
Selected
Answer:

a.

obtaining reliable products at the lowest possible price.

Answers:

a.

obtaining reliable products at the lowest possible price.

b.

increasing the profitability of the firm.

c.

maximizing the firm's return on investment.

d.

receiving the highest-quality products and services in the industry.

Question 18
1 out of 1 points

The ability to effectively and efficiently access and use information is

Selected
Answer:

a.

an important source of competitive advantage in virtually all industries.

Answers:

a.

an important source of competitive advantage in virtually all industries.

b.

vitally important at the point where a domestic firm enters the global market.
c.

critically important mainly in high technology industries.

d.

the minimum required for survival in virtually any industry.

Question 19
0 out of 1 points

PGG Mining is making a strategic decision whether to shut down a coal mine in Pennsylvania.
It is important to consider that the decision
Selected
Answer:

d.

All of these choices are important to consider.

Answers:

a.

has ethical implications for organizational stakeholders.

b.

need not be socially responsible if the firm is making below-average returns

from the mine.
c.

should be based solely on the results of profit-pool mapping.

d.

All of these choices are important to consider.

Question 20
1 out of 1 points

Knowledge is composed of all the following EXCEPT

Selected Answer:

d.

insight.
Answers:

a.

information.
b.

intelligence.
c.

expertise.
d.

insight.

Question 21
0 out of 1 points

______ innovation is a term used to describe how rapidly and consistently new, informationintensive technologies replace older ones.
Selected Answer:

a.

Diffusion
Answers:

a.

Diffusion
b.

Disruptive
c.

Global
d.

Perpetual

Question 22
0 out of 1 points

The I/O model is grounded in

Selected Answer:

a.

psychology.
Answers:

a.

psychology.
b.

accounting.
c.

anthropology.
d.

economics.

Question 23
1 out of 1 points

Greenleaf Property Management has been earning below-average returns for the last three years.
Which of the following statements are true?
Selected
Answer:
Answers:

a.

Greenleaf will not be able to minimally satisfy all stakeholders.

a.

Greenleaf will not be able to minimally satisfy all stakeholders.

b.

Greenleaf will need to prioritize the demands of its stakeholders based on the
political influence each wields.
c.

Greenleaf will be able to at least minimally satisfy the demands of each

stakeholder.
d.

Greenleaf will be able to satisfy its multiple stakeholders easily as long as the
stakeholders are committed to the strategic mission of the firm.

Question 24
0 out of 1 points

The rate of technological diffusion is increasing. Which of the following was fastest in
penetrating 25 percent of homes in the U.S. market?
Selected Answer:

a.

personal computer
Answers:

a.

personal computer
b.

Internet
c.

television
d.

telephone

Question 25
1 out of 1 points

Above-average returns are

Selected
Answer:
Answers:

b.

returns in excess of what an investor expects to earn from other investments

with a similar level of risk.
a.

higher profits than the firm earned the previous year.

b.

returns in excess of what an investor expects to earn from other investments

with a similar level of risk.
c.

higher profits than the industry averaged over the last 10 years.
d.

profits in excess of what an investor expects to earn from a historical pattern of

performance of the firm.

Question 26
0 out of 1 points

______ is a capacity for a set of resources to perform a task or an activity in an integrative

manner.
Selected Answer:

c.

A core competence
Answers:

a.

A capability
b.

Organizational intelligence
c.

A core competence
d.

Sustainable competitive advantage

Question 27
1 out of 1 points

The primary drivers of hypercompetition are

Selected
Answer:

the emergence of a global economy and rapid technological change.

Answers:

a.

b.

increased global competition and decreased tariffs.

b.

the emergence of a global economy and rapid technological change.

c.

rising global socio-economic instability and increased inflation.

d.

increased availability of capital and increased competition.

Question 28
1 out of 1 points

The resource-based model of the firm argues that

Selected
Answer:
Answers:

b.

resources that are valuable, rare, costly to imitate, and non-substitutable form
the basis of a firm's core competencies.
a.

all resources have the potential to be the basis of sustainable competitive

advantage.

b.

resources that are valuable, rare, costly to imitate, and non-substitutable form
the basis of a firm's core competencies.
c.

the key to competitive success is the structure of the industry in which the firm
competes.
d.

resources alone can be a source of sustainable competitive advantage.

Question 29
0 out of 1 points

Globalization has led to

Selected
Answer:

d.

lower operational efficiency as firms must transport raw materials and finished
goods farther.

Answers:

a.

higher product quality.

b.

declining returns from investment in research and development.

c.

increasing loyalty of customers for products made domestically.

d.

lower operational efficiency as firms must transport raw materials and finished
goods farther.

Question 30
1 out of 1 points

In a diversified firm, corporate-level strategy is concerned with

Selected
Answer:
Answers:

c.

determining in which businesses to compete and how resources will be

allocated between businesses.
a.

operating each individual business under the corporate umbrella.

b.

determining how each functional department of the firm will operate.

c.

determining in which businesses to compete and how resources will be

allocated between businesses.
d.

coordinating the vision and mission of each subsidiary firm.

Sunday, September 13, 2015 12:28:37 PM CDT