Test bank of fred r david – strategic management, 13th edition ch11

The Middle East is considered to be one of the regions most vulnerable to climate change impact because of its water scarcity... Which of the following is important because organizations

21)

In his books entitled Future Shock and The Third Wave, Alvin Toffler argued that environments are

becoming so dynamic and complex that they threaten people and organizations with future shock

The Middle East is considered to be one of the regions most vulnerable to climate change impact because

of its water scarcity

make budget changes

Which of the following is important because organizations face dynamic environments in which key external and internal factors often change quickly and dramatically?

every two years

Evaluating individual performance

What aims to balance long term with short term concerns, financial with non-financial concerns, and internal with external concerns?

95)

Secrecy limits rival firms from imitating or duplicating the firm's strategies

ESSAY Write your answer in the space provided or on a separate sheet of paper

FALSE 6) TRUE 7) FALSE 8) FALSE 9) TRUE 10) TRUE 11) FALSE 12) TRUE 13) FALSE 14) FALSE 15) FALSE 16) FALSE 17) TRUE 18) FALSE 19) TRUE 20) FALSE 21) TRUE 22) TRUE 23) FALSE 24) FALSE 25) TRUE

26) TRUE 27) TRUE 28) TRUE 29) TRUE 30) FALSE 31) TRUE 32) TRUE 33) TRUE 34) FALSE 35) FALSE 36) TRUE 37) TRUE 38) FALSE 39) FALSE 40) TRUE 41) FALSE 42) TRUE 43) FALSE 44) TRUE 45) FALSE

46) TRUE 47) TRUE 48) TRUE 49) FALSE 50) TRUE 51) FALSE 52)

D 53)

A 54)

B 55)

C 56)

A 57)

B 58)

B 59)

B 60)

B 61)

A 62)

E 63)

C 64)

A 65)

C

66)

C 67)

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E 69)

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A 72)

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B 76)

A 77)

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D 80)

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A 82)

B 83)

B 84)

E 85)

E

achieved

104)

Possible answers include domestic and world economies were more stable in years past; both product life cycles and product development cycles were longer; technological advancement was slower; change occurred less frequently; there were fewer competitors; foreign companies were weak; and there were more regulated industries Other reasons include a dramatic increase in the environment's complexity; the increasing number of variables; the rapid rate of obsolescence of even the best plans; the increase in the number of both domestic and world events affecting organizations; and the decreasing time span for whichplanning can be done with any degree of certainty

105)

Rumelt's four criteria for evaluating strategies are consistency, consonance, feasibility and advantage Students should take their answers from Table 11-1 on page 351, which provides descriptions of each 106)

The activities that comprise strategy evaluation are 1) reviewing bases of an organization's strategy, 2) measuring organizational performance and 3) taking corrective actions Please refer to pages 355-358 for descriptions of each activity

108)

The Balanced Scorecard is a process that allows firms to evaluate strategies from four perspectives

financial performance, customer knowledge, internal business processes, and learning and growth It aims

to balance long-term concerns with short-term concerns, financial with non-financial concerns, and internalwith external concerns It should answer the following questions

1 How well is the firm improving and creating value along measures such as innovation, technological leadership, product quality, operational process efficiencies, and so on?

2 How well is the firm sustaining and even improving upon its core competencies and

111)

People who perform audits can be divided into three groups independent auditors, government auditors and internal auditors An example of an independent auditor is the CPA at Arthur Andersen public

accounting firm The National Audit Court and the Central Autiting Organization are examples of

government auditors in the Arab world Employees within an organization who are responsible for

safeguarding company assets, for assessing the efficiency of company operations and for ensuring the generally accepted business procedures are examples of internal auditors

112)

The Middle East and North Africa is considered one of the most vulnerable regions to climate change The

2007 Intergovernmental Panel on Climate Change (IPCC) report estimates an increase in temperature in the Middle East and North Africa up to 2 degrees Celsius in the next fifteen to twenty years, and over 4 degrees Celsius by the end of the century

The projected higher temperature and reduced precipitation is expected to have a combined effect that will increase the likelihood of droughts The vulnerability of the region to climate change is aggravated by the significant dependence on climate-sensitive agriculture, the concentration of population and economic activity in flood-prone urban coastal zones, and the presence of conflict-ridden areas where climate-

induced resource scarcity could escalate violence and political instability even beyond the region's

boundaries