Management Study

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Chapter I

1. The principal driver(s) of shareholder value is (are)
a. profitability.
b. profit growth.
c. market share.
d. profitability and profit growth.
e. all of these choices.

2. A competitive advantage is considered to be a sustained competitive advantage when the a. advantage endures for a long time.
b. firm is able to spread the advantage to all of its business units. c. advantage is very large.
d. advantage was gained at a low cost.
e. managers who developed the advantage are still employed at the firm.

3. Which of the following dimensions are encompassed by a company's business model? a. Selecting customers
b. Defining and differentiating its product offerings
c. Determining how it will produce goods and services
d. Determining how it will grow the business over time
e. All of these choices.

4. The strategies that a company's managers pursue
a. have a major impact on the company's performance relative to its competitors. b. have little or no effect on overall profitability.
c. typically result in higher per-unit cost of production.
d. result in significant industry structural changes.
e. none of these choices.

5. Within a diversified company, the responsibilities of corporate-level strategic managers include a. translating the corporate mission statement into concrete strategies for individual business units. b. closely supervising the formulation of strategies at the functional level that support the company's business- and corporate-level strategies. c. allocating resources to functions within business units.

d. overseeing the development of strategies for the total organization and allocating resources among its different business areas. e. identifying and establishing relationships with supplier firms.

6. Profit growth is best measured
a. by the increase in share price.
b. by the return on investment.
c. by the increase in net sales.
d. over time.
e. by increases in liquidity.

7. Functional managers
a. are responsible for the specific business functions or operations that constitute a company or one of its divisions.
b. look at the overall picture of a corporation.
c. have no strategic role.
d. formulate generic strategies.
e. execute business-level decisions.

8. Strategy formulation refers to the
a. task of designing organizational structures and control systems. b. process by which strategies are put into action.
c. top-down planning process that gives rise to the implementation of emergent strategies. d. task of analyzing an organization's external and internal environment and then selecting an appropriate strategy.

e. process of choosing a realized strategy.

9. Strategic leadership is about
a. strategy formulation.
b. strategy implementation.
c. how to effectively manage a company's strategy and create competitive advantage. d. establishing effective contract processes.
e. reducing a company's operating costs.

10. Aaron planned to cut prices at his bicycle shop, but when a competing shop began to offer free repairs, Aaron decided to copy them. Aaron's new strategy (offer free repairs) is an example of a(n)

a. mistake.
b. emergent strategy.
c. deliberate strategy.
d. intended strategy.
e. unrealized strategy.

11. The scenario approach to strategic planning involves
a. devising plans for coping with a number of different possible future states of the world. b. homing in on a single prediction of future demand conditions using an iterative planning process.
c. functional managers setting key corporate objectives.
d. using computers to build virtual worlds for top-level managers. e. making planning the exclusive domain of top-level managers.

12. An effective business model
a. involves how a company selects its customers.
b. creates value for its customers.
c. achieves and sustains a high level of profitability.
d. produces goods and services.
e. all of these choices.

Chapter II

1. A group of firms all make writing...
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