Question 1

Which of the following summarizes a company's main tasks at the present time?
A)mission statement
B)strategic plan
C)code of ethics
D)vision statement

Accepted Answer

A)Vision statements usually describe in broad terms what the business should be in the future.A company's mission statement summarizes what the company's main tasks are now.

Question 2

A company's ________ strategy identifies the portfolio of businesses that comprise the company and the ways in which these businesses relate to each other.
A)functional
B)business unit
C)corporate-level
D)competitive

Accepted Answer

C)A company's corporate-level strategy identifies the sorts of businesses that will comprise the company and the ways in which these businesses relate to each other.Other types of strategic planning include business unit (or competitive)planning and functional planning.

Question 3

What does a company's business-level strategy identify?
A)how to build and strengthen the business's long-term competitive position in the marketplace
B)the portfolio of businesses that comprise the company
C)the basic courses of action that each department will pursue in order to help the business attain its competitive goals
D)what characteristics make the firm unique in the industry

Accepted Answer

A)A competitive or business-level strategy identifies how to build and strengthen the business's long-term competitive position in the marketplace.It identifies,for instance,how Pizza Hut will compete with Papa John's or how Walmart will compete with Target.

Question 4

Which of the following is a simple guide used to compile relevant information about economic,competitive,and political trends that may affect a firm?
A)organization chart
B)workforce requirement matrix
C)external resource system table
D)environmental scanning worksheet

Accepted Answer

D)Environmental scanning worksheets are often used by managers when external and internal audits need to be performed as part of the strategic management process.An environmental scanning worksheet provides a simple format for compiling information about political,economic,and competitive trends that may affect a company.

Question 5

What does a company's corporate-level strategy identify?
A)the company's long-term competitive position in the marketplace
B)the portfolio of businesses that comprise the company
C)the possibility of becoming a low-cost leader
D)the sources of uniqueness in the industry

Accepted Answer

B)A company's corporate-level strategy identifies the sorts of businesses that will comprise the company and the ways in which these businesses relate to each other.Companies can pursue several generic corporate strategic options when deciding on what basis to build their business portfolio.

Question 6

Which type of strategy identifies how to build and strengthen a firm's long-term competitive position in the marketplace?
A)functional
B)business-level
C)corporate-level
D)vertical integration

Accepted Answer

B)A competitive or business-level strategy identifies how to build and strengthen the business's long-term competitive position in the marketplace.A company's corporate-level strategy identifies the sorts of businesses that will comprise the company and the ways in which these businesses relate to each other.

Question 7

During the strategic planning process,environmental scanning worksheets are used for ________.
A)providing employees with job performance data
B)gathering information about economic trends
C)formulating a mission and vision statement
D)assessing the implementation of a strategy

Accepted Answer

B)The environmental scanning worksheet is a simple guide for compiling relevant information about the company's environment including economic,competitive,and political trends that may affect the company.

Question 8

What does a company's functional-level strategy identify?
A)how to build and strengthen the business's long-term competitive position in the marketplace
B)the portfolio of businesses that comprise the company
C)the basic courses of action that each department will pursue in order to help the business attain its competitive goals
D)how the company can become a low-cost leader

Accepted Answer

C)Functional strategies identify the basic courses of action that each department will pursue in order to help the business attain its competitive goals.A business-level strategy identifies how to build and strengthen the business's long-term competitive position in the marketplace.

Question 9

Vision statements focus on the ________.
A)past
B)present
C)future
D)impossible

Accepted Answer

C)Managers sometimes formulate a vision statement to summarize how they see the essence of their business down the road.The vision statement is a general statement of the firm's intended direction and shows,in broad terms,"what we want to become."

Question 10

A team of managers has been assigned the task of developing and implementing a strategic plan using the strategic management process.The team has already defined the current business and mission.What should the team most likely do next?
A)write a new mission statement
B)perform a SWOT analysis
C)evaluate the firm's vision
D)assess the firm's performance

Accepted Answer

B)The first step in the strategic management process is to define the current business and assess what products or services a firm sells and where they are sold.After this initial step,a manager should perform external and internal audits with a SWOT analysis or an environmental scanning worksheet.Writing a new mission statement and developing new strategies occur later in the process.

Question 11

A company's ________ strategy identifies the basic courses of action that each department will pursue in order to help the business attain its competitive goals.
A)functional
B)business-level
C)corporate-level
D)competitive

Accepted Answer

A)Functional strategies identify the basic courses of action that each department will pursue in order to help the business attain its competitive goals.A business-level strategy identifies how to build and strengthen the business's long-term competitive position in the marketplace.

Question 12

The ________ of the California Energy Commission indicates that the organization assesses and acts through public and private partnerships to improve energy systems that promote a strong economy and a healthy environment.
A)mission statement
B)strategic plan
C)code of ethics
D)vision statement

Accepted Answer

A)Vision statements usually describe in broad terms what the business should be in the future.A company's mission statement summarizes what the company's main tasks are now.

Question 13

Holt Tractor Company needs a new strategic plan as a result of losing market share to other farm equipment companies.A management team at the firm is following the steps of the strategic management process.So far,the team has performed external and internal audits.What is the next step in the strategic management process?
A)evaluating the firm's performance
B)defining the business and its mission
C)formulating a new mission statement
D)developing a competitive strategy

Accepted Answer

C)The strategic management tasks are (1)defining the business and developing a mission; (2)evaluating the firm's internal and external strengths,weaknesses,opportunities,and threats; (3)formulating new business and mission statements; (4)translating the mission into strategic goals;and (5)formulating strategies or courses of action.Therefore,the team needs to develop a new mission statement next.

Question 14

The sales director at WebMD is developing goals regarding sales revenue targets and the number of new medical-related content providers that the firm needs to maintain a competitive advantage.In which step of the strategic management process is the sales director most likely involved?
A)performing external and internal audits
B)defining the business and its mission
C)translating a mission into strategic goals
D)evaluating strategic decisions

Accepted Answer

C)The sales director is in the process of translating the firm's mission,which is to maintain a competitive advantage,into strategic goals,which in this case involve sales revenue targets.This step is the fourth one in the strategic process,and it occurs after the firm's business and mission have been defined and after audits have been performed.Implementation and evaluation occur after strategic goals are developed.

Question 15

A ________ statement indicates the firm's intended direction and evokes emotional feelings in organization members.
A)performance
B)strategic
C)mission
D)vision

Accepted Answer

D)Managers sometimes formulate a vision statement to summarize how they see the essence of their business down the road.The vision statement is a general statement of the firm's intended direction and shows,in broad terms,"what we want to become."

Question 16

Last year,General Motors began a strategy to improve product quality and customer satisfaction.Recent reports show that GM's product recalls for the first half of the year are higher than for the entire previous year.GM explains that the figures support the corporate commitment to quality and satisfaction.In which step of the strategic management process is GM currently focusing?
A)defining the business and its mission
B)translating the mission into strategic goals
C)formulating a strategy
D)evaluating performance

Accepted Answer

D)Evaluating the outcome of strategic decisions is the final step of the strategic management process.GM has already defined its mission,developed goals,and formulated a strategy.

Question 17

A diversification corporate strategy implies that a firm will ________.
A)become an industry's low-cost leader
B)expand by adding new product lines
C)save money by producing its own raw materials
D)reduce the company's size to increase market share

Accepted Answer

B)A diversification corporate strategy suggests that a firm will expand by adding new product lines.For example,PepsiCo has diversified over the years by adding chips and Quaker Oats to its product offerings.Consolidation refers to reducing a firm's size,while concentration implies that a firm will offer one product or product line.

Question 18

A ________ lays out what a business strives to be while a ________ lays out what it should be now.
A)mission;vision
B)vision;mission
C)goal;strategy
D)CEO;CFO

Accepted Answer

B)Vision statements usually describe in broad terms what the business should be,and the company's mission statement summarizes what the company's main tasks are now.Managers sometimes formulate a vision statement to summarize how they see the essence of their business down the road.

Question 19

The primary tool used by managers who are performing external and internal audits as part of the strategic management process is the ________.
A)BCG matrix
B)QSPM matrix
C)SWOT analysis
D)EPS/EBIT analysis

Accepted Answer

C)The SWOT chart is a tool frequently used by managers who are responsible for performing external and internal audits.During the strategic management process,a SWOT chart is used to compile and organize a firm's strengths,weaknesses,opportunities,and threats.

Question 20

What is the first step in the strategic management process?
A)performing internal audits
B)defining the current business
C)translating the mission into strategic goals
D)implementing a long-term strategy

Accepted Answer

B)The first strategic management tasks are (1)defining the business and developing a mission; (2)evaluating the firm's internal and external strengths,weaknesses,opportunities,and threats; (3)formulating new business and mission statements; (4)translating the mission into strategic goals;and(5)formulating strategies or courses of action.

Quiz 3: Human Resource Strategy and Analysis

Which of the following summarizes a company's main tasks at the present time?

A company's ________ strategy identifies the portfolio of businesses that comprise the company and the ways in which these businesses relate to each other.

What does a company's business-level strategy identify?

Which of the following is a simple guide used to compile relevant information about economic,competitive,and political trends that may affect a firm?

What does a company's corporate-level strategy identify?

Which type of strategy identifies how to build and strengthen a firm's long-term competitive position in the marketplace?

During the strategic planning process,environmental scanning worksheets are used for ________.

What does a company's functional-level strategy identify?

Vision statements focus on the ________.

A team of managers has been assigned the task of developing and implementing a strategic plan using the strategic management process.The team has already defined the current business and mission.What should the team most likely do next?

A company's ________ strategy identifies the basic courses of action that each department will pursue in order to help the business attain its competitive goals.

The ________ of the California Energy Commission indicates that the organization assesses and acts through public and private partnerships to improve energy systems that promote a strong economy and a healthy environment.

The sales director at WebMD is developing goals regarding sales revenue targets and the number of new medical-related content providers that the firm needs to maintain a competitive advantage.In which step of the strategic management process is the sales director most likely involved?

A ________ statement indicates the firm's intended direction and evokes emotional feelings in organization members.

A diversification corporate strategy implies that a firm will ________.

A lays out what a business strives to be while a lays out what it should be now.

The primary tool used by managers who are performing external and internal audits as part of the strategic management process is the ________.

What is the first step in the strategic management process?