MGT603

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MGT603_ STRATEGIC MANAGEMENT

QUIZ LEC_1 TO 22

SOLVED BY MAQSOOM_RAZA

VUZS TEAM

www.vuzs.net

MGT603 Question # 1Which statement is CORRECT about strategic-managementprocess?

Select correct option:

It occurs once a yearIt is a continuous processIt applies mostly to large businessIt applies mostly to small businesses

RF; handout P#1 Strategic management is a on-going process which is in existencethrough out the life of organization

MGT603 Question # 2Which of the following period strategic management wasconsidered to be cure for all problems?


Mid 1950s to mid 1960sMid 1960s to mid 1970sMid 1970s to mid 1980sMid 1980s to mid 1990s

RF; handout P#3 In 1960; s and 70 it was consider to be panacea forproblemsMGT603 Question # 3The mission statement answers which of thefollowing Question?


What is our business? How can we improve ourselves?What do we want to become?Who are our stakeholders? RF;(Strategic management Fred R David international

edition page#9)

MGT603 Question # 4Intuition is based on all of the following factors EXCEPT:


Past experiences
http://www.vuzs.net/http://www.vuzs.net/

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JudgmentsUncertaintiesFeelings

RF; handout P#5 Intuition rests on:

1. Past experiences2. Judgment

3. Feelings

MGT603 Question # 5Internal analysis involves gathering and analyzing the information about all areasof a firm EXPECT:Select correct option:Research and developmentManagement information systemMarketing

CompetitorsMGT603 Question # 6A desired future state that the organization attempts to realize. Identify the termrelevant to the given statement.Select correct option:GoalStrategyPolicyProcedure

books.google.com.pk/books?id=FG2ZNPjdrnYC&pg=PA160&lpg=PA160&dq=A+desired+future+state+that+the+organization+attempts+to+realize%94.+Identify+the+term+relevant+to+the+given+statement&source=bl&ots=-LQFfSGB4Y&sig=DEJ6MvCLgOFgHUcYSb9_sNFYn18&hl=en&ei=hsOFTJ7aJYTGvQOozK35Dg&sa=X&oi=book_result&ct=result&resnum=9&ved=0CDMQ6AEwCA#v=onepage&q&f=false

MGT603 Question # 7Selling includes all of the following marketing activitiesEXCEPT:Select correct option:

AdvertisingPricingSales promotionCustomer relations

www.bls.gov/oco/ocos020.htm

MGT603 Question # 8Which of the following is not a pitfall an organization should avoid in strategic

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planning?Select correct option:Failing to involve key employees in all phases of planning

Involving all managers rather than delegating planning to a plannerTop managers not actively supporting the strategic planning process

Doing strategic planning only to satisfy accreditation or regulatory requirements

webcache.googleusercontent.com/search?q=cache:oiTreWKJgpgJ:shc-staffweb.hct.ac.ae/skhartabil/Skhartabil/TEACHING%2520RESOURCES/STRATEGIC%2520MANAGEMENT/Exams/chapter01.doc+Which+of+the+following+is+not+a+pitfall+an+organization+should+avoid+in+strategic+planning&cd=6&hl=en&ct=clnk&gl=pk&client=firefox-a

MGT603 Question # 9Which management function includes breaking tasks intojobs, combining jobs to form departments and delegating authority?Select correct option:

MotivatingStaffingOrganizingPlanning

RF;The organizing function of management can be viewed as consisting of three sequentialactivities: breaking tasks down into jobs (work specialization), combining jobs to formdepartments (departmentalization), and delegating authority. Breaking tasks down into

jobs requires development of job descriptions and job

MGT603 Question # 10Which category of ratios measures how effectively a firm can maintain itseconomic position in the growth of the economy and industry?Select correct option:LiquidityLeverage

ActivityGrowthRF;Growth ratios measure the firm's ability to maintain its economic position in thegrowth of the economy and industry.

MGT603 Question # 11 Corporate social policy should be designed and articulatedduring which phase of strategic management?Select correct option:ImplementationFormulationEvaluationManagementRF;

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Corporate social policy should be designed and articulated during strategy formulation,set and administered during strategy implementation

MGT603 Question # 12 Following are the examples of the sectors that are moretechnologically oriented EXCEPT:

Select correct option:TextilePharmaceuticalTelecommunicationsBeverages

MGT603 Question # 13For the past four years the ABC Corporation has been planning to expand itsoperations in order to reach out to the world market. Essentially, the ABCCorporation desires to do what?

Select correct option:Become an online businessBecome a brick-n-mortar businessEmbrace globalizationBecome a click-n-mortar business

MGT603 Question # 14Which of the following is the first step in the controlling function of management?Select correct option:Take corrective actions

Restrict breaks employees takeEvaluate expense reportsEstablish performance standardsMGT603 Question # 15Which of the following marketing entity is NOT an intermediary?Select correct option:Brokers

AgentsProducerVendors

MGT603 Question # 16All of the following fall under Pricing decisions EXCEPT:Select correct option:DiscountsCredit termsMarkupsDealer relationsRational: dealer relation is including the selling decision

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MGT603 Question # 17Which of the following is best identified as a statement that presents a firm's bigpicture statement, describing a desired end-state, general in scope, and notrestrictive?

Select correct option:Corporate philosophy statementCompany creedVision statementMission statement

A vision statement is sometimes called a big picture of your company in the future butits so much more than that.MGT603 Question # 18Which of the following are the five forces that affect the level of competition in anindustry?

Select correct option:Threat of entrants; power of buyers; power of suppliers; threat of substitutes;competitive rivalryThreat of buyers; power of entry; power of substitutes; threat of suppliers; threat ofrecessionThreat of recession; power of buyers; power of suppliers; threat of management failure;competitive rivalryThreat of entry; power of buyers; power of suppliers; threat of substitutes; governmentactionFive forces -- the bargaining power of customers, the bargaining power of suppliers, thethreat of new entrants, and the threat of substitute products -- combine with other

variables to influence a fifth force, the level of competition in an industry

MGT603 Question # 19Identify the stages of strategic management process in a precise sequence.Select correct option:Strategy evaluation, strategy formulation & strategy implementationStrategy evaluation, strategy implementation & strategy formulationStrategy formulation, strategy implementation & strategy evaluationStrategy implementation, strategy evaluation & strategy formulation

1. Strategy Formulation

2. Strategy Implementations

3. Strategy Evaluation

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alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} MGT603Question # 20Which of the following is not a key MGT603 Question that can reveal internal

strengths and weaknesses of the marketing department?Select correct option:Does the firm have an effective sales organization?Are markets segmented effectively?

Are the firms products and services priced appropriately?Does the firm have good liquidity?

Thanks for ZUBAIR BROTHER AND ANIQA TO RESOLVE

MGT603 Question # 21Which of the following can be the weakness of an organization?Select correct option:Price warPoor location of businessIncreased trade barriersInnovative substitute product

MGT603 Question#22Developing a vision and a mission statement isimportantbecause of the following reasons EXCEPT:Selectcorrectoption:TheyareusefulforlargefirmsonlyTheyestablishorganizationalcultureTheyarethebasisforallocatingresourcesTheytranslateobjectivesintoworkstructure

MGT603 Question#23Departmentalization can be done on the basis of manyfactorsEXCEPT:Selectcorrectoption:Functions

Number of employeesStrategic business unitsDivisionsThe most common forms of departmentalization are functional, divisional, strategicbusiness unit, and matrix.

MGT603 Question#24Assigning rating 3 to an internal factor in IFE matrix indicates what?

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Selectcorrectoption:

Major weaknessMinor weaknessMinor strength

Major strength a minor strength (rating 5 - 3),

MGT603 Question#25Whichofthefollowingcanbeconsideredoneofthefactorsofexternalopportunitiesandthreatsofanorganization?Selectcorrectoption:Production/operationsResearch&developmentCompetitivetrendsManagementinformationsystem

External opportunities and external threats refer to economic, social, cultural,demographic, environmental, political, legal, governmental, technological, andcompetitive trends and events that could significantly benefit or harm an organization inthe future.

MGT603 Question#26Ethnicbalanceisaffectedduetowhichofthefollowing?Selectcorrectoption:Changeinethnicvalues

Awarenessofethnicnorms

MigrationofthepeopletowardsdifferentareasIntroductionofnewlawsrelatingtoethnicityref, Ethnic balance changes due to the migration of the people from different areas todifferent areas. This affects the ethical behavior very much.

MGT603 Question#27Buyerscanexercisehighbargainingpowerovertheirsuppliersunderwhichoneofthefollowingconditions?Selectcorrectoption:WhentherearemanygoodsubstitutesofrawmaterialTherearefewbuyersinthemarket

TheyhavefewsupplierstochoosefromThereisahighconcentrationofsuppliersif vendors are less in the market and the organizations that have to purchase from thosevendors are more then the demand for those suppliers will be more as the firms have topurchase from that less suppliers. The reverse is the case if suppliers are more andbuyers are less.MGT603 Question#28Whichofthefollowinggroupsrepresentsthestakeholdersofacompany?

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Selectcorrectoption:TheownersofthecompanyThepeoplewhopurchasesthesharesofthecompanyThepeoplewhohaveaspecialstakeorclaimonthecompany

Arethepeoplewhoareinthemanagementacompany?

Second, a mission statement needs to be broad to effectively reconcile differencesamong and appeal to an organization's diverse stakeholders, the individuals and groupsof persons who have a special stake or claim on the company.MGT603 Question#29Inwhichofthefollowingphaseofstrategicmanagement,annualobjectivesareespeciallyimportant?Selectcorrectoption:

FormulationEvaluationImplementation

Management

Strategy implementation requires a firm to establish annual objectives, devise policies,motivating employees and allocate resources so that formulated strategies can beexecuted.MGT603 Question#30Whichofthefollowingarisewhenacompanycantakeadvantageofconditionsinitsenvironmenttoformulateandimplementstrategiesthatenableittobecomemoreprofitable?Selectcorrectoption:

StrengthsOpportunitiesWeaknessesThreats

MGT603Question#31Local,state,andnationalelections,worldoil,currency,andlabormarkets,numberofpatents,specialtariffsaretheexamplesofwhichoneofthefollowing?Selectcorrectoption:Economicforces Social,culturaland,demographicforcesPolitical,governmental,andlegalforcesCompetitiveforcesSome Political, Governmental, and Legal VariablesLocal, state, and national elections

MGT603 Question#32Whichgroupwouldbeclassifiedasastakeholder?Selectcorrectoption:

CommunitiesBanks

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SuppliersAllofthegivenoptionsStakeholders include employees; managers; stockholders; boards of directors;customers; suppliers; distributors; creditors; governments (local, state, federal, andforeign); unions; competitors;

MGT603 Question#33Whichofthefollowingstatementisreferred,Pricefluctuation?Selectcorrectoption:

DecreaseinpricesIncreaseinpricesFluctuationinthepricesofaparticularcommodityFluctuationingeneralpricelevelPrice fluctuation refers to general price fluctuation.

MGT603 Question#34Whichofthefollowingistheprocessofinfluencingpeopletoaccomplishspecificobjectives?Selectcorrectoption:

StaffingMotivatingControllingOrganizing

Motivating ,Influencing people to accomplish specific objectives

MGT603 Question#35DefensivestrategiesincludeallofthefollowingEXCEPT:Selectcorrectoption:

RetrenchmentAcquisitionDivestitureLiquidationDefensive Strategies In addition to integrative, intensive, and diversification strategies,organizations also could pursue retrenchment, divestiture, or liquidation.

MGT603 Question#36Effectivemissionstatementsdonthaveoneofthefollowingfeatures:Selectcorrectoption:GeneraterangeoffeasiblestrategicalternativesReconcileinterestsamongdiversestakeholdersWhatdoesthefirmwanttobecome

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Providecriteriaforselectingstrategies

Page #17 under the head of Effective mission statements should bMGT603 Question#37Whatisthefirststepinthecomprehensivestrategic-managementmodel?

Selectcorrectoption:PerformingexternalauditsDevelopingvisionandmissionstatementsPerforminginternalauditsMeasuringandevaluatingperformancePage #29 under the head of Comprehensivestrategic-managementmodelMGT603 Question#38Differenttypesofconsumersarecreatedduetonewtrends, whichinturnrequirewhichtypeofproducts?Selectcorrectoption:Differentproducts

DifferentservicesDifferentstrategiesAllofthegivenoptions

MGT603 Question#39Asystemofseveralritesconnectedwithasingleoccasionoreventisknownas:Selectcorrectoption:MythCeremonialSagaLegend

Ceremonial A system of several rites connected with a single occasion or evenMGT603 Question#40In Competitive Profile Matrix, therating 4 indicates what?Selectcorrectoption:Major weakness Majors trengthMinor strengthMinor weaknessref. or a major strength (rating 5 ,4)

MGT603 Question # 41Which of the following environment includes all those factors which affect theorganization and itself affected by the organization?


External environmentSocial environment

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Task environmentInternal environmentTask environment includes all those factors which affect the organization and itselfaffected by the organizationMGT603 Question # 42Of the following, which one would NOT be considered one of the components of a

mission statement?


The target market for XYZ is oil and gas producers as well as producers of chemicals

XYZ shall hire only those individuals who have with sufficient educational levelsso as to be of benefit to our customers

The customers of XYZ shall include global and local consumers of gas and oil productsand domestic users of nontoxic chemicals

The technologies utilized by XYZ shall focus upon development of alternative sources ofgas and oil so as to remain competitive within the industry

MGT603 Question # 43Which of the followings deals with the management of inputs, transformationsand outputs that vary across industries and markets?Select correct option:MarketingFinanceOperation

Distributionref. Production/operations management deals with inputs, transformations, and outputsthat vary across industries and markets.

MGT603 Question # 44Which of the following statement applies to Vision Statement?


Describes the purpose of existence of an organization

Identify the customers of the organization The key measure or measures of theorganizations success Depict the values of an organization

MGT603 Question # 45Which of the following is NOT included in the strategic management model?


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Measure and evaluate performance.Perform internal research to identify customers.Establish long-term objectives.Develop mission and vision statements.

MGT603 Question # 46What is the range for a firms total weighted score in an External FactorEvaluation Matrix?Select correct option:0 to 50 to 41 to 51 to 4ref. total weighted score for the organization, Highest possible weighted score for theorganization is 4.0; the lowest, 1.0. Average = 2.5

MGT603 Question # 47All of the following are the broad categories of External forces EXCEPT:Select correct option:Economic forcesSocioeconomic forcesTechnological forcesCompetitive forcesref. External forces can be divided into five broad categories: Economic forces; Social,cultural, demographic, and environmental forces; Political, governmental, and legalforces; Technological forces; and Competitive forces.

MGT603 Question # 48Which of the following statements is NOT correct about a mission statement?


It contains the definition of the company's businessIt is called the picture

MGT603 Question # 49Which one of the followings best describes this statement; The conditions that a

company must satisfy in order to be able to enter an industry?Select correct option:Economies of scaleBarriers to entryDifferentiationCompetitive environmentRef:http://highered.mcgraw-hill.com/sites/0073054224/student_view0/chapter4/multiple_choice_q uiz.html

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MGT603 Question # 50Which one of the following area can be the weakness of a firm?Select correct option:Changing lifestyle

High oil pricesIneffective MarketingIncreasing pollutionref. can allow an organization to avoid substantial losses by revealing weak productsand ineffective marketing approaches before large-scale production begins.MGT603 Question # 51A planned activity aimed at discovery of new knowledge with the hope ofdeveloping new or improved products and services and translation of its findingsinto a plan or design of new or improved products and services is known as:Select correct option: MarketingResearch and development

Production Managementinformation system

MGT603 Question # 52Non-financial benefits of strategic management includes all of the followingEXCEPT:Select correct option: Better awareness of external threats

Enhanced awareness of threatsReduced resistance to changeIncrease in sales

Non-Financial benefits:Increased employee productivityImproved understanding ofcompetitors strategiesGreater awareness of external threats Understanding ofperformance reward relationships Better problem-avoidance Lesser resistance tochange

MGT603 Question # 53Which one of the following is NOT a basic mission of a competitive intelligenceprogram?

Select correct option:To provide a general understanding of an industryTo provide a general understanding of a companys competitorsTo identify industry executives who could be hired by the firm To identify potential moves a competitor might make that would endanger a firmP#43

MGT603 Question # 54In adapting to change an organization must monitor which of the following?

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Select correct option:Ongoing processesInternal and external eventsTimely changesAll of the given options

Adapting to change Organizational survival depends on: Continuous monitoring ofinternal and external factoWell-timed changes Effective adaptation calls for a long-runfocus Incremental rise in degree of changeMGT603 Question # 55Which of these is the allocation and reallocation of capital and resources toprojects, products, assets and divisions of an organization? Select correct option:Investment decisionFinancing decisionsRestructuring decisionsStrategic decisionThe investment decision, also called capital budgeting, is the allocation and reallocation

of capital and resources to projects, products, assets, and divisions of an organization.MGT603 Question # 56Assessment of competitive rivalry does NOT include an understanding of whichof the following?Select correct option:Mergers and acquisition in industryMarket growth ratesExit barriers and operational efficiency of competitorThe management structure of an organization

MGT603 Question # 57Which one of the following dimensions is NOT a recommended component of amission statement?Select correct option:Self-conceptMarketsStrategiesCustomersref. Components of a Mission Statement 1. Customers: 2. Products or services: 3.Markets: 4. Technology: 5. Concern for survival, growth, and profitability: 6. Philosophy:7. Self-concept: 8. Concern for public image: 9. Concern for employees:MGT603 Question # 58Rehman industries are analyzing the technological forces for the firm which mayprovide it opportunities and threats for which of the following stage/s of strategicmanagement process?Select correct option:Strategy formulationStrategy implementationStrategy evaluation

All of the given options

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ref.Technological forces represent major opportunities and threats that must beconsidered in formulating strategies.

MGT603 Question # 59

The organizations that conduct business operations across national borders areknown as which of the following?Select correct option:Domestic firmsMultinational corporationsParent companiesFranchises

MGT603 Question # 60A Good mission statement identifies the utility of a firm's products to itscustomers;

which of the following represents this statement?Select Correct option:Organizations philosophyCustomer orientationSocial policyDeclaration of attituderef. A Customer Orientation, Good mission statements identify the utility of a firm'sproducts to its customers.

MGT603 Question # 61During which stage of strategic management, firms specific internal strengths

and weaknesses are determined?Select correct option:FormulationImplementationEvaluationFeedbackRF;(Strategic management Fred R David international edition page#14)

MGT603 Question # 62All of the following are included in the five functions of the management process

EXCEPT: Select correct option:

PlanningOrganizingLeadingDelegatingref. Planning

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OrganizingLeadingControlling

MGT603 Question # 63

Which of the following step in the strategic development process involvesmobilizing employees and managers to put strategies into action?Select correct option:Formulating strategyStrategy evaluationImplementing strategyStrategy planningStrategy implementation is often called the action stage of strategic management.Implementing means mobilizing employees and managers in order to put formulatedstrategies into action. It is often considered to be most difficult stage of strategicmanagement. It requires personal discipline, commitment and

MGT603 Question # 64Which of the following are the factors that concern the nature and direction of theeconomy in which a firm operates?Select correct option:TechnologicalEcologicalSocialEconomic

MGT603 Question # 65Political variables have a significant effect on which one of the following?Select correct option:Formulation and implementation of strategyFormulation and Evaluation of a strategyImplementation and evaluation of a strategyFormulation, implementation and evaluation of a strategyref. The increasing global interdependence among economies, markets, governments,and organizations makes it imperative that firms consider the possible impact of politicalvariables on the formulation and implementation of competitive strategies.

MGT603 Question #66Which one variable falls under the category of the Social, Cultural, Demographic,and Environmental Variable?Select correct option:Propensity of people to spendBuying habits Level of disposable incomeIncome differences by regionref. Trust in government Attitudes toward governmentAttitudes toward work Buyinghabits Ethical concerns Attitudes toward saving Sex roles Attitudes toward investing

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MGT603 Question #67Which of the following statement is TRUE about a Vision statement ofacompany? Select correct option:It concentrates on futureIt defines the customers

It identify critical processesIt informs about the desired level of performanceref. A vision statement is sometimes called a picture of your company in the future butits so much more than that.

MGT603 Question #68All of the following statements are true about a firms mission statement EXPECT:Select correct option:

A mission statement does not directly contribute positively to financial performance.A mission statement directly contributes positively to financial performance.

A mission statement should not provide useful criteria for selecting among alternative strategies.Primary reason to develop a mission statement is not to attract the customers(zh,vuzs)Reference:A business mission should provide useful criteria for selecting among alternativestrategies. A clear mission statement provides a dynamic in orientation, allowing

judgments about the most promising growth directions and those consideredless promising.

http://www.hamariweb.com/articles/article.aspx?id=2144http://management4best.blogspot.com/2010/03/vision-versus-mission.html

http://www.zainbooks.com/books/management/strategic-management_6_characteristics-of-a-mission-statement.htm

MGT603 Question #69Which of the following is NOT a component of external environment analysis?Select correct option:Customer satisfaction feedbackGlobal impactsLegal issues within the industryCompetitive position of rival companies

MGT603 Question #70The general conditions for competition that influence business firms, whichprovide similar products and services is known:Select correct option:Remote environmentInternational environmentExternal environment
http://www.hamariweb.com/articles/article.aspx?id=2144http://management4best.blogspot.com/2010/03/vision-versus-mission.htmlhttp://www.zainbooks.com/books/management/strategic-management_6_characteristics-of-a-mission-statement.htmlhttp://www.zainbooks.com/books/management/strategic-management_6_characteristics-of-a-mission-statement.htmlhttp://www.hamariweb.com/articles/article.aspx?id=2144http://management4best.blogspot.com/2010/03/vision-versus-mission.htmlhttp://www.zainbooks.com/books/management/strategic-management_6_characteristics-of-a-mission-statement.htmlhttp://www.zainbooks.com/books/management/strategic-management_6_characteristics-of-a-mission-statement.html

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Industry environment

MGT603 Question #71Which of the following is the best example for achieving long-term objectives?Select correct option:

StrengthsStrategiesPoliciesOpportunities

to design strategies to achieve long-term objectives, and to develop policies to achieveannual objectives.MGT603 Question #72Which type of trend can be exemplified bythe increase in average level of education in a society?


SocialEconomicCulturalTechnological

Key Social, Cultural, Demographic, and Environmental Variables Attitudes towardinvesting Racial equality Use of birth control Average level of education

MGT603 Question # 73Principles of conduct that guide decision-making are known as: Select correctoption:

Human rightsBusiness ethicsThe constitutionSocial responsibility

Business ethics can be defined as principles of conduct within organizations that guidedecision making and behavior. MGT603 Question # 74Various job titles of a strategist may includes all of the following EXCEPT:


OwnerForemanChancellorChief executive officer

MGT603 Question # 75Where an organization takes into account the effect of its strategic decisions onthe society, the firm is taking care of which of these?

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Select correct option:Corporate governanceBusiness policyBusiness ethics

Social policy

The words social policy embrace managerial philosophy and thinking at the highestlevels of an organization. For this reason, social policy affects the development of abusiness mission statement. Social issues mandate that strategists consider not onlywhat the organization owes its various stakeholders but also what responsibilities thefirm has to consumers, environmentalists, minorities, communities, and other groups.

MGT603 Question # 78Which of the following can be best described as short-term in nature?


Mission statementsAnnual objectivesStrategiesVision statement

Annual objectives are short-term milestones that organizations must achieve to reachlong-term objectives

MGT603 Question # 79Which of the following are developed in strategyimplementation phase ofstrategic management?


Vision and missionAnnual objectivesStrengths and weaknessesOpportunities and threats

Strategy implementation requires a firm to establish annual objectives, devise policies,motivating employees and allocate resources so that formulated strategies can beexecuted.MGT603 Question # 80The social factors that affect a firm involve all of the following EXCEPT:

Select correct option:Attitudes of people in the external environmentLifestyles of peoplePer capita income

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Values and beliefs of persons outside the firm

MGT603 Question # 81Which of the following is NOT included in the strategic management model?


Measure and evaluate performance.Perform internal research to identify customers.Establish long-term objectives.Develop mission and vision statements.

P#49 demonstrate the strategic management model

MGT603 Question # 82Which of the following is not a strategy-implementation activity?


Long term goals and objectivesDeveloping strategy supportive cultureRedirecting marketing effortsDeveloping and utilizing information system

MGT603 Question # 83All of these are pitfalls an organization should avoid in strategicplanningEXCEPT:

Select correct option:Using plans as a standard for measuring performance.Using strategic planning to gain control over decisions and resourcesFailing to involve key employees in all phases of planningBeing so formal in planning that flexibility and creativity are stifled

1. Using strategic planning to gain control over decisions and resources 2. Doingstrategic planning only to satisfy accreditation or regulatory requirements 3. Too hastilymoving from mission development to strategy formulation 4. Failing to communicate theplan to employees, who continue working in the dark 5. Top managers making manyintuitive decisions that conflict with the formal plan 6. Top managers not activelysupporting the strategic-planning process 7. Failing to use plans as a standard formeasuring performance 8. Delegating planning to a "planner" rather than involving allmanagers 9. Failing to involve key employees in all phases of planning 10. Failing tocreate a collaborative climate supportive of change 11. Viewing planning to beunnecessary or unimportant 12. Becoming so engrossed in current problems thatinsufficient or no planning is done13. Being so formal in planning that flexibility andcreativity are stifled.

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MGT603 Question # 84For industries and firms that depend heavily on government contracts orsubsidies, political forecasts can be the most important part of an external audit.Test marketing is commonly applied by which of the following companies? Selectcorrect option: Industrial goods companies Consumer goods companies Public sector

companies Private sector companies

Test marketing is used more frequently by consumer goods companies than byindustrial goods companies

MGT603 Question # 85Which of the following identified that strategic management encourages forwardthinking, favorable attitudes towards change and discipline to the management ofbusiness?


GreeleyGreenlyGreenleyGreenwich Greenly stated that strategic management offers the following benefits: 1. Itallows for identification, prioritization, and exploitation of opportunities. 2. It provides anobjective view of management problems. 3. It represents a framework for improvedcoordination and control of activities. 4. It minimizes the effects of adverse conditionsand changes.

MGT603 Question # 86During which stage of strategic management, firms specific internal strengthsand weaknesses are determined?


FormulationImplementationEvaluationFeedbackMGT603 Question # 87Which statement is CORRECT about strategic-management process?Select correct option:

It occurs once a yearIt is a continuous processIt applies mostly to large businessIt applies mostly to small businesses

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MGT603 Question # 89Which of the following is the first step in the controlling function of management?


Take corrective actionsRestrict breaks employees takeEvaluate expense reportsEstablish performance standards

Controlling consists of four basic steps: 1. Establishing performance standards 2.Measuring individual and organizational performance 3. Comparing actual performanceto planned performance standards 4. Taking corrective actions MGT603 Question #90What marketing function includes test marketing?

Select correct option: selling products/services

pricingcustomer analysisproduct/service planningProduct and Service Planning Product and service planning includes activities suchas test marketing;

MGT603 Question #91Opportunity analysis is one of the basic functions of :

Select correct option: MarketingManagement

Computer information systemsProduction/operations

Marketing: Marketing can be described as the process of defining, anticipating, creating,and fulfilling customers needs and wants for products and services. There are sevenbasic functions of marketing: (1) Customer analysis, (2) Selling products/services, (3)Product and service planning, (4) Pricing, (5) Distribution, (6) Marketing research,and (7) Opportunity analysis.

MGT603 Question #92Which component of a mission statement addresses the firms distinctivecompetence or major competitive advantage?

Select correct option:TechnologyPhilosophyCustomersSelf-concept

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Components and corresponding MGT603 Questions that a mission statement shouldanswer are given here.Self-concept: What is the firms distinctive competence ormajor competitive advantage?

MGT603 Question #93

Which of the following are the guidelines of decision making?

Select correct option LawsRulesPolicesGoals Broadly defined, policy refers to specific guidelines, methods, procedures, rules,forms, and administrative practices established to support and encourage work towardstated goals.

MGT603 Question #94Which of the following best describes this statement; a Systematic and ethical

process for gathering and analyzing information about the competitionsactivities and general business trends to further a business own goals?

Select correct option

External assessmentIndustry analysisCompetitive intelligence programBusiness ethics

Competitive Intelligence Programs Systematic and ethical process for gathering and

analyzing information about the competitions activities and general business trends tofurther a business own goals.

MGT603 Question #95Choose the economic variable from the list.

Select correct option Attitudes toward businessAttitudes toward product qualityPopulation changes by raceStock market trendsKey Economic Variables to Be Monitored Unemployment trends Worker productivitylevels Value of the dollar in world markets Stock market trends Foreign countries'economic conditions

MGT603 Question # 96In the process of developing a mission statement, which of the following isCORRECT?


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To involve as few managers as possibleTo involve as many managers as possibleTo involve upper-level management onlyTo involve the board of directors only

The Process of Developing a Mission StatementA clear mission is needed before alternative strategies can be formulated and

implemented.Mission is important to have as broad a range of participation as possible among

managers in developing the mission.

MGT603 Question # 97What refers to a strategy of seeking ownership of or increased control over afirms competitors?


Conglomerate diversificationBackward integrationHorizontal integrationConcentric diversification

Allow a firm to gain control over:Distributors (forward integration)Suppliers (backward integration)Competitors (horizontal integration)

MGT603 Question # 98Which of the following is the greatest advantage of international operations?


Reduced tariffs and taxesAccess to global business practicesGaining new customers

Less-intense competition

MGT603 Question # 99All of the specified approaches could be used to determine R&D budgetallocation EXCEPT:

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Select correct option:Financing as many projects as possibleUsing percentage-of-sales methodBudgeting irrelative to competitorsDeciding how many successful new products are needed

Four approaches to determining R&D budget allocations commonly are used:(1) Financing as many project proposals as possible,(2) Using a percentage-of-sales method,(3) Budgeting about the same amount that competitors spend for R&D, or(4) Deciding how many successful new products are needed and working backward toestimate therequired R&D investment.

MGT603 Question # 100Financial ratios are helpful in analyzing the relationship among which of thefollowing?Select correct option:

All assets and liabilitiesProfits and costsAll functional areas of businessSales and profitability

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MGT603