MGT 498

MGT 498 Final Exam
1) In a survey of 50 corporations, which of the following was rated as a benefit of strategic management?
Clearer sense of vision for the firm
Higher levels of employee motivation
Higher levels of job satisfaction
Improved productivity
Lower employee turnover
2) Research suggests that strategic management evolves through four sequential
phases in corporations. The first phase is
externally-oriented planning
basic financial planning
internally-oriented planning
forecast-based planning
strategic management
3) Strategic management is that set of managerial decisions and actions that determine
the long-run performance of a corporation. Which one of the following is NOT one of
the basic elements of the strategic management process?
Strategy formulation
Strategy implementation
Statistical process control
Evaluation and control
Environmental scanning
4) The relationship among the board of directors, top management, and shareholders is
referred to as
corporate synergy
corporate management
corporate governance
corporate strategy
corporate responsibility
5) The concept that proposes private corporations have responsibilities to society that
extend beyond making a profit is known as
flexible responsibility
social responsibility
social flexibility
managerial responsibility
profit maximization
6) Who said that the social responsibility of business is a “fundamentally subversive
doctrine” and that the one social responsibility of business is “to use its resources and
engage in activities designed to increase its profits so long as it stays with the rules of
the game…”?
Adam Smith
Edward Freeman
Archie Carroll
William Norris
Milton Friedman
7) Which of the following is NOT descriptive of external environmental scanning?
Used as a tool to ensure a corporation’s long-term health
Used to monitor, evaluate, and disseminate information from the external
environment to key people within the corporation
Used to identify opportunities and threats
It is a tool that corporations use to avoid strategic surprise
Used to identify strengths and weaknesses
8) According to Porter, the corporation is most concerned with
the intensity of competition within its industry
the aggregate level of demand for a product line
a market’s position on its life cycle
the amount of pressure from the societal environment
the level of government action in an industry
9) When a company determines a competency’s competitive advantage, Barney refers
to this issue as
10) An acronym for the assessment of the external and internal environments of the
business corporation in the process of strategy formulation/strategic planning is
11) In the development of a SFAS matrix, the first step is to
enter the ratings of how the company’s management is responding to each of the
strategic factors
calculate the weighted scores
list the most important EFAS and IFAS items
indicate short-term for the duration
enter the weights for all of the internal factors
12) The technique that illustrates how management can match the external
opportunities and threats with its strengths and weaknesses to yield four sets of
strategic alternatives is called a (an)
IFAS Table
EFAS Table
SFAS Table
TOWS Matrix
Issues Priority Matrix
13) Which strategy specifies the firm’s overall direction in terms of its general
orientation toward growth, the industries or markets in which it competes, and the
manner in which it coordinates activities and transfers resources among business units?
14) Continuous improvement is an operations concept developed in
the United States
15) The process by which a firm approaches its cross-border activities and those of
competitors, and plans to approach them in the future, is called
international strategy
competitive strategy
cross-border configuration
16) What question must managers ask concerning the relationship between economic
logic and international strategy?
Which geographic areas will we enter?
How does our international strategy contribute to the economic logic of our
business and corporate strategies?
How does being international make our products more attractive to our
Which international market-entry strategies will we use?
17) Which strategy is developed to pull together the various activities and competencies
of each department so that corporate and business unit performance improves and
resource productivity is maximized?
Business strategy
Competitive strategy
Generic strategy
Enterprise strategy
Functional strategy
18) The strategy that deals with product and process innovation and improvement is
known as a ________ strategy.
human resource management
19) The hiring of new people with new skills, firing of people with inappropriate or
substandard skills, and/or training existing employees to learn new skills are included
the process of
20) The strategy implementation tool used to determine what actions are going to be
taken, by whom, during what time frame, and with what expected results is called a(n)
mission statement
action plan
succession plan
21) Executives with a particular mix of skills and experiences may be classified as an
executive type and paired with
a specific personal characteristic
a specific corporate strategy
a certain educational background
a specific experience background
a specific industry
22) According to the text, what is the “key” to effective management of change in
23) The sum total of the activities and choices required for the execution of a strategic
plan is known as in
strategic formulation
environmental scanning
strategy implementation
evaluation and control
strategic development
24) Who typically implements strategy in large, multi-industry corporations?
The board of directors
Top management
Middle management
First level management
Everyone in the organization
25) Which one of the following is NOT a part of the evaluation and control of
Establish corporate strategies.
Determine what to measure.
Establish standards for performance.
Measure actual performance.
Take corrective actions.
26) The end result of activity is known as
return on equity
27) Which is the MOST commonly used measure of corporate performance (in terms of
28) Because of the belief that accounting-based numbers such as ROI, ROE, and EPS
are not reliable indicators of a corporation’s economic value, which method of corporate
performance is now preferred?
Shareholder value
Basic earning power
Price/earnings ratio
Profit margin on sales
Return on assets
29) Which company experienced a tarnished reputation and scandal after experiencing
behavior substitution when employees altered their behavior on the job to fit the reward
Sears, Roebuck, & Co.
Neiman Marcus
30) Suboptimization occurs when
a division or functional unit views itself as a separate entity and refuses to
cooperate with other divisions or units to the detriment of the organization as a whole
there is a failure to produce at or near full capacity
individuals are placed into positions not suited to their abilities
managers tend to focus more of their attentions on those aspects which are measurable than on those which are not
managers concentrate too much on short-term performance objectives