Multiple Choice Answers

1. The planning process begins with which of these?
a. The development of operational goals
b. The development of a mission statement
c. Communication of goals to the rest of the organization
d. A company-wide meeting

2. “We respect our employees and value their diversity” is an example of a statement you are most likely to find in the organization’s
a. mission.
b. strategic goals.
c. tactical goals.
d. strategic plans.

3. ____ goals lead to the attainment of ____ goals, which in turn lead to the attainment of ____ goals.
a. Operational, strategic, tactical
b. Tactical, operational, strategic
c. Strategic, tactical, operational
d. Operational, tactical, strategic

4. Managers use ____ to direct employees and resources toward achieving specific outcomes that enable the organization to perform efficiently and effectively.
a. strategic goals
b. operational goals
c. growth goals
d. financial results

5. All of the following are characteristics of effective goal setting EXCEPT
a. goals should be challenging but not unreasonably difficult.
b. goals should be set for every aspect of employee behavior.
c. specific and measurable.
d. cover key results area.

6. The ultimate impact of goals depended on the extent to which goal achievement is linked to
a. rewards.
b. salary increases.
c. promotions.
d. all of these.

7. ____ is the first step in the MBO process.
a. Setting goals
b. Developing action plans
c. Appraising overall performance
d. Reviewing progress

8. In using MBO, objectives should be set
a. by the supervisor.
b. by the employee.
c. jointly by the supervisor and the employee.
d. by the accounting department.

9. Which of the following is NOT one of the benefits of MBO?
a. Performance can be improved at all company levels.
b. Employees are motivated.
c. Efforts are focused on activities that will lead to goal attainment.
d. Operational goals are able to displace strategic goals.

10. ____ define boundaries within which to make a decision.
a. Programs
b. Policies
c. Rules
d. Procedures
Chapter 8

11. ____ can be defined as the combination of benefits received and costs paid by the customer.
a. Organizational benefits
b. Value
c. Cost-benefit diversity
d. Synergy

12. A corporate-level strategy is concerned with the question
a. what business are we in?
b. how do we compete?
c. how do we support our chosen strategy?
d. where do we market our products?

13. Which of these questions is central to a functional-level strategy?
a. What business are we in?
b. How do we compete?
c. How do we support our chosen strategy?
d. What business do we buy?

14. How business units and product lines fit together in a logical way is the essence of
a. business-level strategy.
b. portfolio strategy.
c. competitive strategy.
d. financial strategy.

15. Which of the following strategies involve an attempt to distinguish the firm’s products or services from others in the industry?
a. Cost leadership
b. Differentiation
c. Focus
d. Internal growth

16. With a(n) ____ strategy, the organization concentrates on a specific regional market or buyer group.
a. cost leadership
b. differentiation
c. focus
d. internal growth

17. Which of the following refers to a strategy that combines global coordination to attain efficiency with flexibility to meet specific needs in various countries?
a. Domestic strategy
b. Global strategy
c. Transnational strategy
d. Multidomestic strategy

18. When an organization expands into a totally new line of business, it is implementing a strategy of:
a. Related diversification
b. Unrelated diversification
c. Cross-functional diversification
d. Product line diversification

19. General Products Inc. is a small clothing designer and manufacturer located in the United States. A vast majority of the company’s revenues comes from U.S. sales, although about ten percent of the company’s revenue come from sales to Canada. General Products Inc. can best be described as using which global corporate strategy?
a. Globalization strategy
b. Multidomestic strategy
c. Export strategy
d. Transnational strategy

20. FLY Industries is a global conglomerate company headquartered in the United States that does business in over fifty countries. The company seeks to balance global efficiencies and local responsiveness by hiring locally as well as from home. It can best be described as using which global corporate strategy?
a. Globalization strategy
b. Multidomestic strategy
c. Export strategy
d. Transnational strategy