76) An organization that has a low relative market share position and competes in a slow-growth industry is referred to as a
A) dog.
B) star.
C) question mark.
D) cowboy.
E) cash cow.
77) According to the Grand Strategy Matrix, organizations in which .quadrant have a strong competitive position but are in a slow-growth industry,
A) IV.
B) I.
D) V.
E) III.
78) The top row of a QSPM consists of alternative strategies derived from all of these except
A) BCG Matrix.
B) CPM Matrix.
C) Space Matrix.
D) Grand Strategy Matrix.
E) IE Matrix.
79) How are objectives in the areas of profitability, growth and market share commonly established?
A) Geographic location
B) Customer groups
C) Business segment
D) Product
E) all of the above
80) _______ is not a major factor that commonly prohibits effective resource allocation.
A) Underprotection of resources
B) Lack of sufficient knowledge
C) Vague strategy targets
D) Reluctance to take risks
E) Organizational politics
81) Which approach for managing and resolving conflict involves exchanging members of conflicting parties of that each can gain an appreciation of the others point of view?
A) Resistance
B) Confrontation
C) Defusion
D) Avoidance
E) Compliance
82) Which approach for managing and resolving conflict involves playing down differences between conflicting parties while accentuating similarities and common interests?
A) Defusion
B) Resistance
C) Compliance
D) Avoidance
E) Confrontation
83) Why do changes in company strategy often require changes in the way an organization is structured?
A) Structure dictates how goals and objectives will be established.
B) Structure dictates strategy.
C) Structure dictates how resources will be allocated.
D) Structure dictates how money is spent.
E) Structure dictates authority over projects.
84) What percentage of companies are reported to have some form of bonus plan?
A) 40 percent
B) 95 percent
C) 80 percent
D) 75 percent
E) 25 percent
85) Resistance to change can manifest itself through
A) filing unfounded grievances.
B) sabotaging production machines.
C) unwillingness to cooperate.
D) absenteeism.
E) all of the above
86) Which strategy could be best defined as an effective, multi-method technique of studying and altering a firm’s culture?
A) Delivering
B) Benchmarking
C) Educative change strategy
D) Triangulation
E) Process management
87) What percent of strategies formulated are successfully implemented?
A) Approximately 66 percent
B) Less than 10 percent
C) Between 40 to 60 percent
D) About 30 percent
E) More than 80 percent
88) Why is market segmentation an important variable in the strategy-implementation process?
A) Company strategies do not require increased sales through new markets and products.
B) It allows a firm to minimize per-unit profits and per-segment sales.
C) It directly affects marketing mix variables.
D) It allows a firm to operate with no resources.
E) all of the above
89) Which of the following is (are) true about two different market segments?
A) They are most effective when a firm squats between two segments.
B) They are always in different geographic locations.
C) They are usually incompatible.
D) They usually require different marketing strategies.
E) They can usually be served with the same marketing strategy.
90) What is a central strategy-implementation technique that allows an organization to examine the expected results of various actions and approaches?
A) Financial budgeting
B) EPS/EBIT
C) External analysis
D) TOWS analysis
E) Projected financial statement analysis
91) Which of these is the most common type of budgeting time frame?
A) Annual
B) Monthly
C) Daily
D) Every decade
E) Quarterly
92) What is a limitation of using financial budgets?
A) They are sometimes used as instruments of tyranny.
B) They can become a substitute for objectives.
C) They can hide inefficiencies if done only on precedent.
D) They can be so detailed that they are cumbersome and expensive.
E) all of the above
93) What best describes how much a company is worth?
A) Static
B) Known only to the firm’s accountants
C) Explicit accounting standards
D) An exact science
E) An educated guess
94) What is the best definition of goodwill?
A) Value associated with benefits from environmental programs
B) Excess of current assets over liabilities
C) Value attached to the firms reputation
D) Premiums paid for acquisition
E) Excess of assets over liabilities
95) If success for one organizational department means failure for another department, then strategies may be
A) advantageous.
B) failures.
C) synergistic.
D) inconsistent.
E) inconsonant
96) Corrective actions are not needed when
A) changes have occurred in the firm’s internal strategic position.
B) the industry is slowing down.
C) the firm is not progressing satisfactorily toward achieving stated objectives.
D) external and internal factors have not significantly changed.
E) competitive factors are on the rise.
97) What is the basis for quantitative financial evaluation?
A) Financial ratios
B) Reduction in costs
C) The EPS/EBIT Analysis
D) Present value analysis
E) Capital Asset Pricing Model
98) Corrective action should do all of the following except
A) improve internal weaknesses.
B) avoid external threats.
C) capitalize upon internal strengths.
D) strengthen an organization’s competitive position.
E) avoid external opportunities.
99) What aims to balance long term with short term concerns, financial with non-
financial concerns, and internal with external concerns?
A) Contingency planning
B) Measuring performance
C) reviewing Bases of Strategy
D) The Balanced Scorecard approach
E) Taking corrective action
100) Which type of auditors are specifically responsible for safeguarding the as-
sets of a company?
A) Research auditors
B) Government auditors
C) External auditors
D) Independent auditors
E) Internal auditors
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