PART I. MULTIPLE CHOICE (6 marks/ 30 questions, 0.
2 marks per
question)
1. A vision statement identifies the scope of a firm's operations in
product and market terms.
A. TRUE
B. FALSE
2. Strategic management focuses on integrating management,
marketing, finance and accounting, production and operations,
research and development, and information systems to achieve
organizational success.
A. TRUE
B. FALSE
3. The decision to expand or diversify operations is a strategy-
formulation issue
A. TRUE
B. FALSE
4. The final stage in strategic management is strategy
implementation.
A. TRUE
B. FALSE
5. What step in the strategic development process involves mobilizing
employees and managers to put strategies into action?
A) Strategy formulation
B) Strategy evaluation
C) Strategy implementation
D) Strategic advantage
E) Competitive advantage
6. Strategy implementation affects top and middle managers but not
lower-level employees.
A. TRUE
B. FALSE
7. Which phase of strategic management is called the action phase?
A) Strategy formulation
B) Strategy implementation
C) Strategy evaluation
D) Competing advantages
E) Measuring performance
8. Market penetration can be defined as the subdividing of a market into
distinct subsets of customers according to needs and buying habits.
A. TRUE
B. FALSE
9. ______ allows firms to sell products, advertise, purchase supplies,
bypass intermediaries, track inventory, and eliminate paperwork.
A) Social networking
B) E-commerce
C) Blogging
D) Viral video
E) "Trading down"
10. Stars, Question Marks, Cash Cows, and Dogs are the four quadrants
exhibited by the BCG Matrix.
A. TRUE
B. FALSE
11. Strategic management focuses on integrating management, marketing,
finance and accounting, production and operations, research and
development, and information systems to achieve organizational
success.
A. TRUE
B. FALSE
12. Strategy implementation is often considered to be the most difficult
stage in the strategic-management process because it requires
personal discipline, commitment, and sacrifice.
A. TRUE
B. FALSE
13. When analyzing the “W” in SWOT analysis, a manager might be
assessing:
A) New governmental policies
B) Good facilities of the company
C) Lack of experience of employees
D) A decrease in the price of competitors' products
E) None of the above
14. Which of the following is a management issue central to strategy
implementation?
A) Devising policies
B) Revising reward and incentive plans
C) Minimizing resistance to change
D) Developing an effective human resources function
E) All of the above
15. In today’s global climate, many companies may find it difficult to
survive by relying solely on domestic markets.
A. TRUE
B. FALSE
16. Market penetration can be defined as the subdividing of a market into
distinct subsets of customers according to needs and buying habits.
A. TRUE
B. FALSE
17. Organizations that conduct business operations across national
borders are called international firms or multinational corporations.
A. TRUE
B. FALSE
18. The strategic-management process is conceptually different for
multinational firms than for purely domestic firms.
A. TRUE
B. FALSE
19. With market segmentation, a firm can better operate with limited
resources.
A. TRUE
B. FALSE
20. The ______ opportunities and threats that face a multinational
corporation are almost limitless.
A) Social
B) Cultural
C) Environmental
D) Political
E) All of the above
21. A firm can usually serve two or more market segments with the same
strategy.
A. TRUE
B. FALSE
22. Organizations that conduct business operations across national
borders are called:
A) Protectionists
B) National firms
C) Multinational corporations
D) Domestic companies
E) All of the above
23. Horizontal integration is seeking ownership or increased control over
competitors.
A. TRUE
B. FALSE
24. Small, nonprofit organizations never need to develop mission
statements.
A. TRUE
B. FALSE
25. The process of performing an external audit needs to include:
A) Only top-level managers, as it is a planning function
B) As many managers and employees as possible
C) Primarily front-line supervisors
D) Between 15 to 20 managers for it to be valid
E) Stockholders and external government agencies
26. Cash Cows represent the organization’s best long-run opportunities for
growth and profitability.
A. TRUE
B. FALSE
27. Revlon closing its manufacturing plant in France and laying off 5
percent of its workforce is an example of:
A) Divestiture
B) Backward integration
C) Liquidation
D) Retrenchment
E) Forward integration
28. Collecting and evaluating information on competitors is essential for
successful:
A) Internal analysis
B) Strategy evaluation
C) Strategy formulation
D) Strategy implementation
E) Strategy correction
29. The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix, the
Strategic Position and Action Evaluation (SPACE) Matrix, the Boston
Consulting Group (BCG) Matrix, the Internal-External (IE) Matrix, and
the Grand Strategy Matrix are included in stage two of the strategy-
formulation framework.
A. TRUE
B. FALSE
30. Market penetration can be classified as either a conservative,
aggressive, or competitive strategy.
A. TRUE
B. FALSE
PART II. ESSAY (4 marks)
Compare and contrast vision statements with mission statements.
(2 Marks)
Define and give an example of three intensive strategies. (2 Marks)