87 free test bank for strategic management 14th edition by pearce

5 Typically how many strategic decision levels are there in the corporate decision-making hierarchy of a large corporation.. 4 Strategic issues require which level of management decision

87 Free Test Bank for Strategic Management 14th Edition by Pearce

Multiple Choice Questions - Page 1

(p 3) Strategic management compromises nine critical tasks Which of the following is NOT one of the tasks?

1 A Development of medium-term objectives compatible with grand

strategies

2 B Assessment of the company's external environment

3 C Selection of a particular set of long-term objectives and grand strategies

4 D Evaluate the success of the strategic process

(p 7) Dividend policies are decided at the

1 A Corporate level

2 B Business level

3 C Functional level

4 D Operational level

(p 3) A strategy is a company's

1 A Game plan

2 B Pricing policy

3 C Value statement

4 D Long-term objective

(p 4) A(n) strategy reflects a company's awareness of how, when and where is should , against whom it should _ and for what purpose it should _

1 A cooperate

2 B ally

3 C compete

4 D plan

(p 6) The functional level of decision making is characterized by:

1 A The board of directors deriving corporate goals

2 B Managers of product, geographic and functional areas

3 C The CEO developing a company profile

4 D Business managers interpreting the mission into operational objectives (p 5) Which of the following applies to strategic issues?

1 A Consider only the firm's external environment

2 B Are future oriented

3 C Concern allocation of insignificant amounts of company resources

4 D Do not have long-term impact on the firm's prosperity

(p 6) A business, which by definition is a profit center that

focuses on a specific combination of products, markets, and

technologies, is also known as a

1 A Subsidiary

2 B Sister unit

3 C Strategic business unit

4 D Corporate unit

(p 4) A(n) _ provides a framework for managerial decisions

1 A Vision

2 B Organizational structure

3 C Strategy

4 D Long-term objective

(p 5) Strategic decisions are based on what managers _, rather than on what they _

1 A Forecast; know

2 B React to; anticipate

3 C Know; forecast

4 D Compromise with; analyze

(p 6) Which of these managers tries to identify and secure the most profitable and promising market segment?

1 A Functional managers

2 B Corporate managers

3 C Business managers

4 D Operative

(p 5) In the middle of the decision-making hierarchy is the _ level

1 A Corporate

2 B Functional

3 C Business

4 D Strategic

(p 3) Strategic management involves the _, directing, _ and controlling of a company's strategy-related decisions and actions

1 A Financing; marketing

2 B Planning; financing

3 C Marketing; planning

4 D Planning; organizing

(p 5) Which level of strategy uses a portfolio approach?

1 A Business

2 B Operational

3 C Corporate

4 D Functional

(p 3) The _ comprises economic and social conditions, political priorities and technological developments, all of which must be anticipated, monitored, assessed and incorporated into the executive's decision making

1 A Remote external environment

2 B Task environment

3 C Operating environment

4 D Internal environment

(p 5) Strategic decisions ostensibly commit the firm for

1 A 1-2 years

2 B The short term

3 C 3-4 years

4 D A long time, typically five years

(p 5) Typically how many strategic decision levels are there in the corporate decision-making hierarchy of a large corporation?

1 A 5 or more

2 B 4

3 C 3

4 D 2

(p 6) Which level of strategy is at the bottom of the

decision-making hierarchy?

1 A Corporate

2 B Business

3 C Functional

4 D Operational

(p 3) A _is a company's game plan

1 A Strategy

2 B Pricing policy

3 C Value statement

4 D Long-term objective

(p 3) Which of the following is NOT a part of a firm's immediate external environment?

1 A Technological development

2 B Competitors

3 C Suppliers

4 D Government agencies

(p 4) Strategic issues require which level of management

decisions?

1 A Operative

2 B Top

3 C Front-line

4 D Middle

(p 7) Which level of decisions encompasses greater risk, cost and profit potential?

1 A Business

2 B Lower echelon

3 C Corporate

4 D Functional

(p 7) Decisions concerning plant location, distribution channels, geographic coverage and market segmentation are typically

made at:

1 A The corporate level

2 B The business level

3 C The functional level

4 D The Board level

(p 4) Strategic issues require large amounts of the company’s

1 A strengths

2 B opportunities

3 C suppliers

4 D resources

(p 7) Decisions at which level of management tend to be more value-oriented, more conceptual, and less concrete?

1 A Functional

2 B Corporate

3 C Operative

4 D Business

(p 4-5) Some business decisions are strategic and therefore deserve strategic management attention Which of the following is one of the six strategic issue dimensions?

1 A Requires front-line employee decisions

2 B Is not likely to have a significant impact on long-term prosperity of the firm

3 C Necessitates considering factors in the firm's external environment

4 D Is spontaneous

(p 3) Which of the following is an element of a firm's remote

external environment?

1 A Competition

2 B Suppliers

3 C Government agencies

4 D Economic and social conditions

(p 5) In a multi-business firm, -level executives determine the businesses in which the firm should be involved

1 A Business

2 B Functional

3 C Corporate

4 D Operative

(p.3) Large-scale, future-oriented plans, for interacting with the competitive environment to achieve company objectives refers to its

1 A Strategy

2 B Goals

3 C Competitive analysis

4 D Dynamic policies

(p 5) Strategic issues are oriented

1 A future

2 B present

3 C past

4 D timelessly

(p 6) At Office Supply, Inc., -level managers would be responsible for determining whether the company should be involved in home furnishings or electronic appliance businesses, whereas -level managers would be responsible for

determining how the firm will compete in the selected product-market arena

1 A Business; corporate

2 B Corporate; functional

3 C Functional; business

4 D Corporate; business

(p 3) The set of decisions and actions that result in the

formulation and implementation of plans designed to achieve a company's objectives is defined as:

1 A Strategic policy

2 B Business policy

3 C Strategic management

4 D Tactics

(p 7) Corporate-level decisions are characterized by:

1 A Decreased risk

2 B Doing things right

3 C Short-time horizons

4 D Greater cost

(p 6) Which strategic level is typically responsible for developing annual objectives and short-term strategies?

1 A Functional level

2 B Corporate level

3 C Business level

4 D Board of Directors level

(p 6) Which level of strategy is in the middle of the decision-making hierarchy?

1 A Corporate

2 B Functional

3 C Business

4 D Strategic

(p 5) All businesses exist in a(n) _ system

1 A open

2 B closed

3 C insular

4 D protected

(p 5) The Walt Disney Company is a multibusiness company It typically would have levels of strategy

1 A 5 or more

2 B 4

3 C 3

4 D 2

(p 6) Functional managers are typically responsible for which of the following?

1 A Annual objectives

2 B Tactics

3 C Corporate goals

4 D Mission

(p 3) The immediate external environment includes:

1 A Competitors

2 B S B U s

3 C Divisions

4 D Management

(p 5) Strategic decisions have effects on firms

1 A Temporary

2 B Short-lived

3 C Enduring

4 D Limited

(p 5) The top of the decision-making hierarchy comprises all of these EXCEPT

1 A Board of directors

2 B Front-line managers

3 C The CEO

4 D Administrative officers

(p 5) To a large extent, attitudes at the corporate level reflect the concerns of

1 A Stockholders and society at large

2 B Top managers

3 C The CEO

4 D The federal government

(p 6) Who determines the basis on which a company can

compete in the selected product-market arena?

1 A Functional-level strategic managers

2 B Corporate-level strategic managers

3 C Business-level strategic managers

4 D Operational managers supervising operative

(p 6) Which of the following is NOT a level in the decision-making hierarchy of a firm?

1 A Business

2 B Corporate

3 C Operative

4 D Functional

(p 7) Whereas corporate and business-level managers center their attention on _, managers at functional-level center their attention on

1 A Operational issues; strategic issues

2 B Doing things right; doing the right things

3 C Entrepreneurial mode; adaptive mode

4 D Doing the right things; doing things right

87 Free Test Bank for Strategic Management 14th Edition by Pearce Multiple Choice Questions - Page 2

(p 13) Which of the following is a generic strategy option?

1 A Vertical integration

2 B Diversification

3 C Differentiation

4 D Retrenchment

(p 10) The behavioral consequences of strategic management are similar to those of

1 A authoritative decision making B centralized decision making

2 C autocratic decision making

3 D participative decision making

(p 13) The results that an organization seeks over a multiyear period are its

1 A Generic strategies

2 B Grand strategies

3 C Mission statements

4 D Long-term objectives

(p 9) The informal, intuitive and limited approach to strategic management associated with owner-managers of smaller firm refers to the mode of formality

1 A Entrepreneurial

2 B Functional

3 C Planning

4 D Adaptive

(p 12) Which of the following is a major function of the strategic management model?

1 A It helps make profits for the firm

2 B It helps in identifying key issues faced by the firm

3 C It helps in deciding which products to sell

4 D It depicts the sequence and relationships of the major components of the strategic management process

(p 10) Managers at the _ level typically have principal

responsibilities for developing environmental analysis and

forecasting, establishing business objectives and developing business plans prepared by staff groups

1 A Corporate

2 B Functional

3 C Operational

4 D Business

(p 13) Horizontal integration is an example of a

1 A Generic strategy

2 B Grand strategy

3 C Functional level strategy

4 D SBU strategy

(p 13) The general plan of major actions through which a firm intends to achieve is long-term objectives is called its:

1 A Generic strategy

2 B Long-term goal

3 C Grand strategy

4 D Mission

(p 13) Which of the following is an example of a grand strategy?

1 A Decentralization

2 B Policy making

3 C Conglomerate integration

4 D Horizontal integration

(p 12) Social responsibility is a critical consideration for a

company's strategic decision makers since

1 A Stockholders demand it

2 B The mission statement must express how the company intends to contribute to the societies that sustain it

3 C It increases a company's profits

4 D It helps make decisions

(p 16) One implication of viewing strategic management as a process is that strategy formulation and implementation are:

1 A Sequential

2 B Simultaneous

3 C Random

4 D Reversible

(p 16) Influential individuals and groups that are vitally interested

in the actions of the business are called

1 A Stockholders

2 B Stakeholders

3 C Strategists

4 D Customers

(p 12) Description of the company's product, market and

technological areas of emphasis is contained in the

1 A Assessment of the external environment

2 B Company profile

3 C Company mission

4 D Interactive opportunity analysis

(p 14) Broad, precedent-setting decisions that guide or substitute for repetitive or time-sensitive managerial decision making are called

1 A Goals

2 B Strategies

3 C Objectives

4 D Policies

(p 9) Which one of these forces DOES NOT determine how

much formality is needed in strategic management?

1 A Size

2 B Country of origin

3 C Complexity of environment

4 D Production process

(p 13) The doubling of EPS within 5 years with increases in each intervening year is called a(n):

1 A Mission

2 B Long-term objective

3 C Action plan D Short-term objective

(p 18) The strategy management process is:

1 A Stationary

2 B Dynamic

3 C Static

4 D Radical

(p 12) Which one of the following is NOT an interactive segment

of a firm's external environment?

1 A Functional

2 B Remote

3 C Industry

4 D Operating

(p 17) Strategic management processes need which of the

following to enhance future decision making?

1 A Testing

2 B Feedback

3 C Discontinuity

4 D Projecting

(p 9) The adaptive mode refers to

1 A Strategic formality associated with the large firms that operate under a comprehensive, formal planning system

2 B Strategic formality associated with medium-sized firms that emphasize the incremental modification of existing competitive approaches

3 C Strategic formality associated with global firms that emphasize cultural value systems

4 D Informal, intuitive and limited approach to strategic management with owner-manager of smaller firms

(p 15) _ is concerned with tracking a strategy as it is being implemented, detecting problems or changes in its underlying premises and making necessary adjustments

1 A Restructuring strategy

2 B Strategic control

3 C Internal analysis

4 D Functional tactics

(p 15) _ is a critical stage in strategy implementation

wherein managers attempt to recast their organization

1 A Continuous improvement

2 B Restructuring

3 C Strategic control

4 D Strategy formulation

(p 9) There are commonly identified modes based upon formality in strategic management

1 A 4

2 B 2

3 C 5

4 D 3

(p 9) The planning mode refers to the

1 A Strategic formality associated with the large firms that operate under a comprehensive, formal planning system

2 B Strategic formality associated with medium-sized firms that emphasize the incremental modification of existing competitive approaches

3 C Strategic formality associated with global firms that emphasize cultural value systems

4 D Informal, intuitive and limited approach to strategic management with owner-manager of smaller firms

(p 14) The minimum equity position required for all new

McDonald's franchises is an example of:

1 A A goal

2 B A procedure

3 C A policy

4 D An objective

(p 9) The ideal strategic management team includes decision makers from

1 A All three company levels (corporate, business and functional)

2 B Just the functional level since they are closest to the customers

3 C Just the corporate and business levels given that they focus on doing the right thing

4 D Just the top management since they understand the big picture

(p 9) Which of these is NOT a mode of formality?

1 A Adaptive

2 B Planning

3 C Functional

4 D Entrepreneurial

(p 9) Firms that are basically under the control of a single

individual and produce a limited number of products/services are referred to as following mode

1 A Entrepreneurial

2 B Planning

3 C Adaptive