Deck 3: Human Resource Strategy and Analysis

Question 1

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

Answer 1

B
Explanation: 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 2

Vision statements focus on the ________.

A) past
B) present
C) future
D) impossible

Answer 2

C
Explanation: 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 3

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

Answer 3

B
Explanation: 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.

Question 4

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

Question 5

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) evaluating the firm's opportunities
B) formulating a new business direction
C) deciding on strategic goals
D) evaluating the strategic plan

Question 6

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

Question 7

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 evaluated the firm's internal and external strengths.What is the next step in the strategic management process?

A) evaluating the strategic plan
B) choose specific strategies
C) formulating a new business direction
D) decide on strategic goals

Question 8

A ________ statement indicates the firm's intended direction.

A) performance
B) strategic
C) mission
D) vision

Question 9

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

Question 10

The primary tool used by managers who audit a firm's environment as part of the strategic management process is the ________.

A) BCG matrix
B) QSPM matrix
C) SWOT analysis
D) EPS/EBIT analysis

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

Question 12

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

Question 13

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) deciding on strategic goals
B) evaluating the firm's strengths and weaknesses
C) formulating a new business direction
D) evaluating the strategic plan

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

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

Question 21

Sweet Leaf Tea,a Texas-based maker of bottled iced tea,is a small but fast-growing firm that has gained a loyal following for its use of fresh,organic ingredients in its beverages.Although beverage industry experts recommended that Sweet Leaf replace the organic cane sugar and honey it uses with less costly high-fructose corn syrup,Sweet Leaf refused because of the company's mission to provide a high-quality,organic beverage to consumers.The 11-year-old company has 50 employees,and its products are available in 30% of the U.S.market.Sweet Leaf Tea recently received multimillion dollar investments which will enable the business to expand its national presence. Which of the following,if TRUE,would most likely undermine the argument that Sweet Leaf Tea should implement a corporate-level strategy of vertical integration?

A) Sweet Leaf Tea lacks the facilities or knowledge to produce the raw ingredients for its beverages.
B) Market research suggests that Sweet Leaf Tea customers primarily purchase only one flavor of tea.
C) Most loyal customers of Sweet Leaf Tea purchase the beverage at neighborhood convenience stores.
D) Sweet Leaf Tea has decided to lower its prices by replacing cane sugar with corn syrup in some of its beverages.

Question 22

Starbucks announced that it will be closing approximately 600 of its stores.This information suggests the firm is most likely using a(n)________ strategy.

A) consolidation
B) diversification
C) integration
D) expansion

Question 23

A firm's functional strategies identify the broad activities that each ________ will pursue in order to help the firm accomplish its competitive goals.

A) employee
B) executive
C) department
D) HR manager

Question 24

The ________ manager is in a good position to supply "competitive intelligence"-information on what competitors are doing.

A) middle
B) financial
C) functional
D) human resources

Question 25

Winchester Rugs operates a website called www.buyrugsdirect.com,so Winchester Rugs is most likely implementing a strategy of ________.

A) consolidation
B) geographic expansion
C) vertical integration
D) concentration

Question 26

Companies like Ferrari are known as ________ because they carve out a market niche and compete by providing a product that customers can obtain in no other way.

A) cost leaders
B) focusers
C) market leaders
D) visionaries

Question 27

A vision statement is broader and more future-oriented than a mission statement.

Question 28

Marriott Hotels is considering the acquisition of a furniture-making business.What type of strategy is Marriott most likely pursuing?

A) consolidation
B) diversification
C) concentration
D) geographic expansion

Question 29

The basic steps in the management planning process include setting objectives,reviewing alternative courses of action,and evaluating which options are best.

Question 30

Which term refers to any factors that allow a firm to differentiate its product or service from those of its competitors to increase market share?

A) functional strategy
B) competitive advantage
C) corporate strategy
D) related diversification

Question 31

Sweet Leaf Tea,a Texas-based maker of bottled iced tea,is a small but fast-growing firm that has gained a loyal following for its use of fresh,organic ingredients in its beverages.Although beverage industry experts recommended that Sweet Leaf replace the organic cane sugar and honey it uses with less costly high-fructose corn syrup,Sweet Leaf refused because of the company's mission to provide a high-quality,organic beverage to consumers.The 11-year-old company has 50 employees,and its products are available in 30% of the U.S.market.Sweet Leaf Tea recently received multimillion dollar investments which will enable the business to expand its national presence. Which of the following,if TRUE,would best support the argument that Sweet Leaf Tea should implement a corporate-level strategy of concentration?

A) Sweet Leaf Tea can expand its customer base and reduce costs by selling its products directly at Sweet Leaf stores.
B) Sweet Leaf Tea can develop a national name by adding new product lines, such as organic snack foods and organic coffee.
C) Sweet Leaf Tea's marketing research indicates that customers would purchase the organic beverages more frequently if the prices were lower.
D) Sweet Leaf Tea can achieve growth by aggressively selling its beverages in current markets where loyal customers will help boost word-of-mouth.

Question 32

Walmart competes on price,while Target competes on style.Walmart follows a competitive strategy based on ________,while Target follows a strategy based on ________.

A) cost leadership; differentiation
B) focusing; cost leadership
C) geographic location; focusing
D) differentiation; niche leadership

Question 33

All of the following are services that human resource managers provide EXCEPT ________.

A) conducting employee opinion surveys
B) overseeing database recovery systems
C) details on competitor's incentive plans
D) pending legislation about labor laws

Question 34

A firm that expands by producing its own raw materials or acquiring a retail outlet to sell its own products is most likely using a strategy of ________.

A) consolidation
B) geographic expansion
C) vertical integration
D) diversification

Question 35

Conducting employee opinion surveys is the only task assigned to most HR departments.

Question 36

Sweet Leaf Tea,a Texas-based maker of bottled iced tea,is a small but fast-growing firm that has gained a loyal following for its use of fresh,organic ingredients in its beverages.Although beverage industry experts recommended that Sweet Leaf replace the organic cane sugar and honey it uses with less costly high-fructose corn syrup,Sweet Leaf refused because of the company's mission to provide a high-quality,organic beverage to consumers.The 11-year-old company has 50 employees,and its products are available in 30% of the U.S.market.Sweet Leaf Tea recently received multimillion dollar investments,which will enable the business to expand its national presence. Which of the following,if TRUE,best supports the idea that Sweet Leaf Tea has implemented a competitive strategy of differentiation?

A) Other brands of bottled iced tea compete with Sweet Leaf Tea by offering new flavors at competitive prices.
B) Sweet Leaf Tea sells both lemonade and tea in a variety of flavors that appeal to consumers of all ages.
C) Loyal customers of Sweet Leaf Tea seek products that are USDA certified organic despite the associated higher costs.
D) New Sweet Leaf Tea customers are initially attracted to the unique label and logo on the bottles.

Question 37

A mission statement is a general statement of a company's intended direction that evokes emotional feelings in the organization's members.

Question 38

Compiling information about a company's environment is more easily accomplished with a SWOT chart than an environmental scanning worksheet.

Question 39

The first step in management planning is setting goals.

Question 40

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

A) consolidation
B) diversification
C) geographic expansion
D) horizontal integration

Question 41

Consolidation keeps the company's strategy up-to-date by assessing progress toward strategic goals and taking corrective action as needed.

Question 42

Which of the following best describes the general purpose of a strategic plan?

A) obtaining global resources
B) monitoring employee recruiting
C) maintaining a competitive advantage
D) providing opportunities for expansion

Question 43

Linking HR policies and practices with strategic goals in order to improve business performance is known as ________.

A) strategic human resource management
B) supply chain management
C) succession planning
D) behavior modeling

Question 44

Firms that open facilities overseas are implementing a functional strategy of geographic expansion.

Question 45

Which of the following is NOT part of strategic human resource management?

A) training employees
B) recruiting the right people
C) formulating strategic plans and goals
D) conducting a job analysis

Question 46

Which of the following is the most likely source of a company's hierarchy of goals?

A) structure of the firm's HR department
B) assessment center of the firm
C) basic planning process of the firm
D) organizational chart of the firm

Question 47

By emphasizing the safety of its cars,Volvo stands out as an example of a firm that is implementing a differentiation strategy.

Question 48

A business-level strategy is implemented by Pizza Hut,Domino's,Papa John's,and Little Caesar's in their competition with each other for pizza customers.

Question 49

In order to generate the desired workforce skills,competencies,and behaviors that a firm needs to achieve its strategic goals,human resource management must first develop ________.

A) HR tools
B) HR strategies
C) company norms
D) employee cultures

Question 50

Cost leadership,differentiation,and focus strategies are types of corporate-level strategies.

Question 51

Identify the three levels of strategic planning and describe the function of each level.What is the relationship between human resource strategy and a firm's strategic plans?

Question 52

What is strategic management? Define the term.List and describe the seven steps in the strategic management process.

Question 53

Explain the difference between a vision and a mission.What role does a firm's vision statement play in corporate and competitive strategies?

Question 54

McDonald's addressed its lagging profitability by first closing stores operating below its guidelines.McDonald's used a consolidation strategy.

Question 55

A vertical integration strategy means that the firm will expand by adding new product lines.

Question 56

Which of the following is a course of action that answers the question,"Are we in the right business given our strengths and weaknesses and the challenges that we face?"

A) case study
B) mission
C) strategy
D) vision

Question 57

The primary purpose of strategic human resource management is to ________.

A) develop human resource policies that align with industry standards
B) link an organization's strategic plan with its human resource strategies
C) create stringent appraisal systems that highlight employee weaknesses
D) use offshoring to reduce human resource costs and to initiate global strategies

Question 58

Which term refers to the employee skills and behaviors that a firm needs to achieve its strategic goals?

A) task analyses
B) mission statements
C) supervisory objectives
D) workforce requirements

Question 59

A diversification corporate strategy involves expanding a firm by producing necessary raw materials.

Question 60

What is a competitive advantage? How does HR management affect a firm's competitive advantage? In your answer,provide examples of competitive advantages held by specific firms.

Question 61

A ________ metric focuses on measuring the activities that contribute to achieving the company's strategic aims.

A) strategy-based
B) high-performance
C) human resource
D) benchmark

Question 62

In a brief essay,discuss the importance of strategic planning and setting hierarchical goals.

Question 63

The employee manual at Go-Tech states that the firm "complies with all laws,regulations,and principles of ethical conduct." This statement is an example of a Go-Tech ________.

A) policy
B) strategy
C) mission
D) procedure

Question 64

Strategic human resource management means formulating and executing HR systems that produce the employee competencies and behaviors the company needs to achieve its strategic aims.

Question 65

HR scorecards present managers with desktop graphs and charts of how a firm's HR strategies compare to those of other firms in the same industry.

Question 66

All of the following are commonly used HR metrics EXCEPT ________.

A) health care costs per employee
B) absence rate
C) cost per new hire
D) communication expenses

Question 67

Human resource strategies are the ________ used to produce the desired workforce skills,competencies,and behaviors needed to support a firm's strategic goals.

A) visions and missions
B) policies and practices
C) theories and evaluations
D) objectives and plans

Question 68

Which term refers to a process for assigning financial and nonfinancial goals to the chain of activities required for achieving the company's strategic aims?

A) HR ratio analysis
B) strategy mapping
C) behavior modeling
D) HR scorecard

Question 69

All of the following are HR tools used to translate a firm's strategic goals into HR policies and activities EXCEPT ________.

A) scatter plot
B) strategy map
C) digital dashboard
D) HR scorecard

Question 70

Employees' skills and commitment create a competitive advantage in service industries,but technology is the primary key to a competitive advantage in manufacturing industries.

Question 71

In a brief essay,explain how the strategy map,the HR scorecard,and the digital dashboard are used in strategic human resource management.

Question 72

Mona,an HR manager,is using the HR scorecard process to quantify a strategy map.Which of the following tasks is Mona LEAST likely to perform?

A) informing all employees of their goals
B) holding structured interviews with participants
C) monitoring and assessing employee performance
D) assigning financial and nonfinancial goals to activities

Question 73

An HR specialist conducting an HR audit should review which of the following when auditing recruitment and selection practices?

A) disciplinary procedures
B) FLSA compliance
C) workers' compensation
D) background check policies

Question 74

As an HR manager with Northern Airlines,Stan reviews graphs and charts on his computer to understand the relationship between HR activities,employee behaviors,and strategic outcomes.Which of the following tools does Stan most likely use?

A) strategy map
B) HR scorecard
C) digital dashboard
D) corporate scatter plot

Question 75

As an HR manager,you would most likely use a strategy map to ________.

A) outline a presentation for top executives
B) quantify the financial and nonfinancial goals of a firm
C) understand the chain of activities that contributes to a firm's success
D) assess the effects of employee training programs on retention rates

Question 76

Which area of an HR audit is most likely being assessed by an HR specialist who is reviewing job descriptions and the employment status of current employees?

A) employee relations
B) roles and head count
C) mandated benefits
D) group benefits

Question 77

Which of the following terms refers to a set of human resource management policies and practices that promote organizational effectiveness?

A) human resource metric
B) corporate-level strategy
C) strategic human resource map
D) high-performance work system

Question 78

The specific human resource policies and practices used to support a firm's strategic goals are known as human resource strategies.

Question 79

Suzanne,an employee at Sound Wave Systems,believes that the firm's warehouse is an unsafe environment due to slippery floors and faulty stair rails.After consulting the employee manual,Suzanne writes a letter about the situation to her immediate supervisor.Suzanne is most likely following the firm's ________.

A) policies
B) strategies
C) missions
D) procedures

Question 80

Goals are initiated by the bottom level of an organization according to the hierarchy of goals approach to strategic planning.