Question 1

Which of the following provides a summary of a firm's intended direction and shows,in broad terms,"what we want to become"?
A)mission statement
B)strategic plan
C)vision statement
D)marketing plan

Accepted Answer

C) A firm's vision statement is a general statement about the intended direction of the firm and what the business should look like in the future.In contrast,a mission statement answers the question "What business are we in?" Managers use mission statements to address vertical integration,geographic coverage,product scope,and competitive advantage.

Question 2

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

Accepted Answer

C) Managers use three types of strategies for the three different levels of a company.Corporate-level strategy identifies the portfolio of businesses that comprise a firm and how these businesses relate to each other.The next level is business unit or competitive strategic planning which addresses building and strengthening the firm's long-term competitive position in the marketplace.Functional or departmental strategic planning focuses on broad activities that each department within a firm will pursue.

Question 3

Winchester Rugs operates a web site called www.buyrugsdirect.com,so Winchester Rugs is most likely using a strategy of ________.
A)consolidation
B)geographic expansion
C)vertical integration
D)horizontal integration

Accepted Answer

C) A vertical integration strategy means that a firm expands by producing its own raw materials or in the case of Winchester Rugs,selling its products directly instead of using a retailer.Consolidation involves reducing the size of a firm,while geographic expansion involves taking a business overseas.Horizontal integration is a type of concentration strategy that occurs when a firm acquires control of a competitor in the same market.

Question 4

A diversification corporate strategy implies that a firm will ________.
A)expand by adding new product lines
B)reduce the company's size to increase market share
C)save money by producing its own raw materials
D)increase profits by offering one popular product

Accepted Answer

A) 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 5

Strategic management is best defined as the process of executing the firm's strategic plan by matching the firm's capabilities with its ________.
A)environmental demands
B)competitive standards
C)natural resources
D)hierarchical skills

Accepted Answer

A) Strategic management is the process of identifying and executing the organization's strategic plan,by matching the company's capabilities with the demands of its environment.Industry standards,resources,and corporate hierarchies are less relevant.

Question 6

A course of action that a firm can pursue to achieve its strategic aims is known as a ________.
A)vision
B)goal
C)strategy
D)mission

Accepted Answer

C) A strategy is a course of action taken by a firm to achieve strategic aims.For example,if Yahoo! decides it needs to raise money and focus on its applications,one strategy of the firm would be to sell Yahoo! Search.The vision is what a firm anticipates for the future,and the mission addresses the specific business of the firm.

Question 7

Which of the following is the most significant difference between managerial planning and the basic planning process?
A)evaluation of alternative methods
B)establishment of clear objectives
C)assessment of long-term goals
D)interference from corporate hierarchies

Accepted Answer

D) The basic planning process is the same in all situations whether planning a career,vacation,or sales technique.The planning process involves evaluating alternatives,establishing objectives,and assessing goals.However,managerial planning is hindered by the hierarchy of a corporation,which requires that plans meet budgetary requirements and match the long-term goals of the firm.

Question 8

Harley-Davidson sells a line of boots,helmets,and leather jackets indicating that the the firm is pursuing which of the following strategies?
A)conglomerate diversification
B)geographic expansion
C)related diversification
D)horizontal integration

Accepted Answer

C) Related diversification means diversifying so that a firm's lines of business still possess some kind of fit.Harley-Davidson sells apparel worn to ride the motorcycles the firm manufactures,so the firm is involved in related diversification.Conglomerate diversification means diversifying into products not related to the firm's current businesses,which would be the case if Harley Davidson started manufacturing computers or sewing machines.

Question 9

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) A mission statement addresses the question,"What business are we in?" Mission statements explain the scope of an organization's product or services,and they may also address issues of vertical integration,geographic coverage,and competitive advantage.In this example,the CEC's scope is improving "energy systems" through "public and private partnerships" in order to "promote a strong economy and a healthy environment." In contrast,a vision statement addresses an organization's intended direction and plans for the future.

Question 10

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 chart
D)EPS/EBIT table

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 11

Acquiring control of competitors in the same or similar markets with the same or similar products is known as ________.
A)market penetration
B)product development
C)vertical integration
D)horizontal integration

Accepted Answer

D) Horizontal integration occurs when a firm gains control of competitors in the same or similar markets.Market penetration refers to boosting sales of current products with aggressive selling and marketing.Product development is a concentration strategy that involves improving current products.Vertical integration is a strategy that involves expansion through raw material production or direct sales.

Question 12

Strategic planning primarily benefits a firm's managers by ________.
A)creating a hierarchy of decision-makers
B)establishing goals to be accomplished
C)allowing employees to provide input
D)clarifying the supply chain network

Accepted Answer

B) Strategic planning benefits a firm's managers by establishing the goals that need to be accomplished at every level of an organization.A firm's strategic plan directs the work that occurs within a firm.A hierarchy of goals is established from the top of an organization downward.

Question 13

A(n)________ is a firm's method for matching its internal strengths and weaknesses with external opportunities and threats to maintain a competitive advantage.
A)strategic plan
B)situation analysis
C)SWOT analysis
D)tactical plan

Accepted Answer

A) A strategic plan is a firm's plan for assessing internal strengths and weaknesses with external opportunities and threats.The essence of strategic planning involves asking,"Where are we now as a business,where do we want to be,and how should we get there?" Managers then develop specific strategies for taking a firm where it wants to be.

Question 14

What is the first step in the strategic management process?
A)formulating a strategy
B)defining the current business
C)translating a mission into goals
D)implementing an environmental scan

Accepted Answer

B) The first step in the strategic planning process is defining a firm's current business situation,which involves assessing what products are sold,where the products are sold,and how the products differ from those offered by the competition.This step is followed by performing internal and external audits,which may involve using an environmental scanning worksheet.A firm would then formulate a new mission and translate the mission into strategic goals before developing a strategy to achieve those goals.

Question 15

Which term indicates the course of action for getting from where you are to where you want to go?
A)goal
B)plan
C)proposition
D)assessment

Accepted Answer

B) A plan shows the course of action for getting from where you are to where you want to go-in other words,to the goal.Planning is always "goal-directed."

Question 16

Since most well-run firms utilize a hierarchy of goals to guide major decisions,________ is especially important to managers at every level to prevent departments from working at cross-purposes.
A)strategic planning
B)financial auditing
C)employee testing
D)employee benchmarking

Accepted Answer

A) Successful firms use a hierarchy of goals that are established at the top and trickle downward.Such a system enables the strategic plans of a firm to be made clear to each manager and employee.Strategic planning helps guide managers to make decisions in hiring,training,financing,and inventory that benefit the goals of the firm.

Question 17

The sales director at WebMD is calculating annual 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 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.

Question 18

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)workforce requirement matrix
B)environmental scanning worksheet
C)external resource system table
D)potential globalization network

Accepted Answer

B) 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.A SWOT chart is another tool frequently used by managers to assess a firm's strengths,weaknesses,opportunities,and threats.

Question 19

What is the first step in the basic planning process?
A)evaluating the possible alternatives
B)implementing a course of action
C)setting an objective
D)comparing options

Accepted Answer

C) The first step of any type of plan is to set an objective or a goal.Assessing alternatives and comparing options occur later in the process.Implementing the plan is one of the final steps of the planning process.

Question 20

All of the following are steps involved in the strategic management process EXCEPT ________.
A)evaluating the firm's internal and external situation
B)defining the business and developing a mission
C)crafting a course of action
D)offshoring low-skill jobs

Accepted Answer

D) The strategic management process includes seven different steps,which include evaluating internal and external strengths and weaknesses,defining the business,and crafting a course of action.While offshoring low-skill jobs may be a strategy for some firms to lower expenditures,it is not a specific step involved in the strategic management process.

Quiz 3: Human Resource Management Strategy and Analysis

Which of the following provides a summary of a firm's intended direction and shows,in broad terms,"what we want to become"?

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

Winchester Rugs operates a web site called www.buyrugsdirect.com,so Winchester Rugs is most likely using a strategy of ________.

A diversification corporate strategy implies that a firm will ________.

Strategic management is best defined as the process of executing the firm's strategic plan by matching the firm's capabilities with its ________.

A course of action that a firm can pursue to achieve its strategic aims is known as a ________.

Which of the following is the most significant difference between managerial planning and the basic planning process?

Harley-Davidson sells a line of boots,helmets,and leather jackets indicating that the the firm is pursuing which of the following strategies?

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

Acquiring control of competitors in the same or similar markets with the same or similar products is known as ________.

Strategic planning primarily benefits a firm's managers by ________.

A(n) ________ is a firm's method for matching its internal strengths and weaknesses with external opportunities and threats to maintain a competitive advantage.

What is the first step in the strategic management process?

Which term indicates the course of action for getting from where you are to where you want to go?

Since most well-run firms utilize a hierarchy of goals to guide major decisions,________ is especially important to managers at every level to prevent departments from working at cross-purposes.

The sales director at WebMD is calculating annual 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 involved?

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 is the first step in the basic planning process?

All of the following are steps involved in the strategic management process EXCEPT ________.