1. Military strategy is based on an assumption of whereas business strategy is based on an assumption of A.conflict; cooperation B.cooperation; conflict C.cooperation; competition D.conflict; competition E.competition; conflict 2. A small nonprofit organization would probably develop a vision statement, but not a mission statement. (True /False) 3. All of the following are political, governmental, and legal variables that can represent key opportunities or threats to organizations EXCEPT A.legislation on equal employment. B.environmental regulations. C.population changes by race, age, sex, and level of affluence. D.tariffs. E.level of defense expenditures. 4. To sustain the competitive advantage gained by being a first mover, a firm needs to be a cost leader. (True / False) 5. The following excerpt from a mission statement illustrates which of the nine essential components of a mission statement? "We believe our first responsibility is to the doctors, nurses, patients, mothers, and all others who use our products and services." A. Customers B. Concern for Public Image C.Markets D. Technology E. Concern for Employees 6. Under which strategy would you offer products or services to a wide range of customers at the lowest price available on the market? A.Focus - Best Value B. Cost Leadership - Low Cost C.Differentiation D.Cost Leadership - Best Value E.Focus - Low Cost7. An IFE Matrix can be developed in steps. A.three B.six C.five D.four E.two 8. One difference between a Competitive Profile Matrix (CPM) and an External Factor Evaluation (EFE) is that A.CPM is only used in small firms. B.CPM ratings range from 1 to 10. C.CPM is performed only for the company, whereas EFE is performed for both the company and its competitors. D. the weights and total weighted scores have different meanings. E.CPM includes both internal and external issues. 9. A low value of the dollar means lower exports and higher imports. (True / False) 10. Whereas the mission statement answers the question, "What do we want to become?" the vision statement answers the question, "What is our business?" (True/False) 11. Which component of a mission statement addresses the basic beliefs, values, aspirations, and ethical priorities of the firm? A. Concern for public image B.Philosophy C. Customers D. Technology E. Self-concept 12. The IFE Matrix should be in multidivisional firms. A.developed before the EFE Matrix B.revised monthly C.all-inclusive D.constructed only for the major divisions E.constructed for each autonomous division13. Which of these basic questions should a vision statement answer? A.What is our core strength? B.What is our business? C.What do we want to become? D.What are our challenges? E.Who are our competitors? 14. Which of the following illustrates the self-concept component of a mission statement? A.In this respect, the company will conduct its operations prudently and will provide the profits and growth which will assure our ultimate success. B. To earn our customer's loyalty, we listen to them, anticipate their needs, and act to create value in their eyes C.We are committed to leapfrogging ongoing competition within 1,000 days by unleashing the constructive and creative abilities and energies of each of our employees. D.Our emphasis is on North American markets, although global opportunities will be explored. E.To compensate its employees with remuneration and fringe benefits competitive with other employment opportunities in its geographical area and commensurate with their contributions toward efficient corporate operations. 15. Which group would NOT be classified as stakeholders? A.Suppliers B. Creditors C.Employees D. Governments E. Universities 16. The total assets turnover ratio is calculated by dividing sales by fixed assets. (True / False) 17. A resource is valuable if it is rare, hard to imitate, or A.expensive. B.inefficient. C.easily substitutable. D.inexpensive. E.not easily substitutable.18. The strategic-management process A.applies mostly to small businesses. B.occurs once a year. C.is a semiannual process. D.applies mostly to companies with sales greater than $100 million. E.is a continuous process. 19. What is the first step in the comprehensive strategic-management model? A.Establishing long-term objectives B. Measuring and evaluating performance C.Developing vision and mission statements D.Performing external audits E.Performing internal audits 20. According to Porter, what is usually the most powerful of the five competitive forces? A.Potential entry of new competitors B.Bargaining power of consumers C.Rivalry among competing firms D.Potential development of substitute products E. Bargaining power of suppliers 21. GoPro laid off one-fifth of its workforce and exited the drone market. This is an example of A.retrenchment. B.liquidation. C.divestiture. D.backward integration. E.forward integration. 22. The controlling function of management is synonymous with strategy formulation. (True / False) 23. Which of the following is NOT a guideline for when an organization should use an unrelated diversification strategy? A.When revenues derived from an organization's current products or services would increase significantly by adding the new unrelated, products B.When the new products have countercyclical sales patterns compared to an organization's present products C.When an organization competes in a highly competitive and/or a no-growth industry D.When existing markets for an organization's present products are not yet saturated E.When an organization's present channels of distribution can be used to market the new products to current customers24. A systematic and ethical process for gathering and analyzing information about the competition's activities and general trends to further a business' own goals is called A.unethical business practices. B.artificial intelligence. C.competitive intelligence. D.industrial espionage. E.competitive advantage. 25. When an industry relies heavily on government contracts, which forecasts can be the most important part of an external audit? A.Multinational B.Economic C. Competitive D. Technological E. Political 26. Which of the following is NOT a reason joint ventures fail? A. The venture may begin to compete more with one of the partners than the other. B.Managers who must collaborate daily in operating the venture are not involved in forming or shaping the venture. C. The venture may benefit the partnering companies, but may not benefit the customers who then complain about poorer service or criticize the companies in other ways. D. Venture risk was minimized. E. The venture may not be supported equally by both partners. 27. In which situation would horizontal integration be an especially effective strategy? A.When an organization competes in a slowing industry B.When an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for "tending substantially" to reduce competition C.When an organization has neither the capital nor human talent needed to successfully manage an expanded organization D.When decreased economies of scale provide major competitive advantages E.When competitors are succeeding due to managerial expertise or having particular resources an organization possesses28. The goal of strategic management is to A.achieve and maintain competitive advantage. B.maintain competitive advantage C.achieve competitive advantage. D.eliminate and abolish competitive advantage. E.eliminate competitive advantage 29. If an organization chooses to have both a mission and a vision, the mission statement should be established first. (True / False) 30. Significant barriers to entry are not always sufficient to keep some new firms from entering industries with higher-quality products, lower prices, and substantial marketing resources. (True / False) 31. Strategic management offers all of the following benefits EXCEPT A.increased synergy. B.enhanced communication. C.increased resistance to change. D.more effective allocation of time and resources. E.increased discipline 32. Strategic management enables an organization to instead of just responding to threats in its business environment. A.be proactive B.avoid responsibility for shaping its future C.relinquish control over its destiny D.be immune to threats E.be reactive 33.Which strategy is appropriate when an organization competes in an industry characterized by rapid technological developments? A.Product development B.Retrenchment C.Market penetration D.Backward integration E. Liquidation34. When using External Factor Evaluation (EFE) Matrix, what is done after multiplying each factor's weight by its rating to determine a weighted score? A.Determining the preferred strategic factors B.Drawing the horizontal and vertical lines for the matrix C.Summing the weighted score for each competitor D.Summing the weighted scores for each variable to determine the total weighted score for the organization E.Identifying key external factors 35. Unrelated diversification may be an especially effective strategy when an organization's basic industry is experiencing increasing annual sales and profits. (True / False) 36. Which of the following is NOT true of vision statements? A. Vision statements should be written from a customer perspective. B.A vision statement should reveal the type of business the firm engages. C. The vision statement needs to be doable, but challenging. D. Vision statements should indicate the expected amounts of profits the firm wants to make. E.A vision statement should describe a desired future state. 37. Because of the success of the iPad and the iphone, Apple has tremendous brand recognition. Brand recognition is one of Apple's A.strategies. B.threats. C.strengths. D.opportunities. E.weaknesses. 38. All of the following situations are conducive to market development EXCEPT A.when an organization's basic industry is rapidly becoming global in scope. B.when new untapped or unsaturated markets exist. C.when an organization has excess production capacity. D.when an organization is successful at what it does. E.when new channels of distribution are expensive and unreliable. 39. Assumptions have no place in planning. (True / False)40. Who should perform an internal audit? A. The organization's accounting department B. The chief executive officer C.A small team of top-level managers D.A private auditing firm E. Representative managers and employees from throughout the firm 41. Allocating resources is one of the four basic activities (functions) performed by managers. (True / False) 42. Which statement best describes intuition? A.It should be coupled with analysis in decision making. B.It alone should be used in decision making. C.It is management by ignorance. D.It is better than analysis in decision making. E. It represents a minor factor in decision making integrated with analysis. 43. Uber has fewer fixed assets than the typical taxi fleet company. This type of benefit that a company such as Uber has is called a(n) A.competitive advantage. B.first-mover advantage. C.asset margin. D.business moat E.strategic advantage. 44. When a domestic company first begins to export to India, it is an example of A.forward integration. B.market development. C.concentric diversification. D.horizontal integration. E.backward integration. 45. Which of the following is NOT a key question that can reveal internal strengths and weaknesses regarding a firm's marketing function? A.Are markets segmented effectively? B.Are the firm's products and services priced appropriately? C.Does the firm have an effective sales organization? D.Does the firm have good liquidity? E. Has the firm's market share been increasing?46. Strategic management focuses on integrating functional areas to achieve organizational success. Which of the following is NOT one of the functional areas that is the focus of strategic management? A.finance and accounting B.production and operations C.marketing D.research and development E.organizational behavior 47. Which of the three finance and accounting decisions involves determining the best capital structure for the firm? A. Dividend B. Capital budgeting C.Investment D. Financing E.Implementation 48. ties all business functions together and provides the basis for all managerial decisions. A.Information B.Marketing C.Technology D. Workforce E.Management 49. In general, technological change creates opportunities, but not threats. (True/ False) 50. What are enduring statements of purpose that distinguish one business from other similar firms? A.Policies B.Employee conduct guidelines C.Mission statements D.Rules E.Objectives