(Test Bank) Strategic Management And Business Policy Globalization, Innovation And Sustainability

Bamford,Hoffman,Wheelen,Hunger, 16

Business

Test Bank

16th Edition

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Test Bank for Strategic Management And Business Policy Globalization, Innovation And Sustainability, The downloadable file consists of 372 pages, and the total size of the file is 1.8 MB. Purchase now only for highly discounted price.

Author(s): Bamford, Hoffman, Wheelen, Hunger

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Test Bank Strategic Management and Business Policy: Globalization, Innovation and Sustainability Sixteenth Edition Charles E. Bamford Thomas L. Wheelen Alan N. Hoffman J. David Hunger 1 Copyright © 2024 Pearson Education, Inc. Strategic Management and Business Policy, 16e (Wheelen) Chapter 1 Basic Concepts of Strategic Management 1) What was strategic management originally called? A) Business policy B) Planning C) Marketing strategy D) Short -term planning E) Operational planning Answer: A Difficulty: Easy Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 2) Research suggests that strategic management evolves through four sequential phases in corporations. The first phase is A) externally oriented planning. B) basic financial planning. C) internally oriented planning. D) forecast -based planning. E) strategic management. Answer: B Difficulty: Easy Learning Obj.: 1.1: Discuss the benefits of strategic manageme nt AACSB: Application of knowledge 3) The time horizon involved with regard to forecast -based planning is usually A) one year. B) one quarter. C) three to five years. D) less than one month. E) five to ten years. Answer: C Difficulty: Easy Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 4) A difference between basic financial planning and forecast -based planning is A) the time horizon is shorter in forecast -based planning. B) forecast -based planning incorporates environmental data and extrapolates current trends. C) basic financial planning utilizes consultants with sophisticated techniques. D) basic financial planning utilizes scenarios and contingency strategies. E) basic financial plannin g relies heavily on input from lower levels in the organization. Answer: B Difficulty: Moderate Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Analytical thinking 2 Copyright © 2024 Pearson Education, Inc. 5) Top -down planning that emphasizes formal strategy formulation and leaves the implementation issues to lower management levels is known as A) forecast -based planning. B) externally oriented planning. C) strategic management. D) basic financial planning. E) none of the above. Answer: B Difficulty: Moderat e Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 6) In the final phase of strategic management, strategic information is available to A) people throughout the organization. B) the top management responsible for decision -making. C) middle management. D) operational personnel. E) only those responsible for implementing the strategy. Answer: A Difficulty: Moderate Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 7) In a survey of 50 corporations, which of the following was rated as one of the three top benefits of strategic management? A) Clearer sense of strategic direction for the firm B) Higher levels of employee motivation C) Higher l evels of job satisfaction D) Improved productivity E) Lower employee turnover Answer: A Difficulty: Moderate Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 8) When an organization is involved in formal strategic planning, which is not one of the strategic questions that an organization generally may ask itself? A) Where is the organization now? B) Are we on target to hit our financial objectives next year? C) If no changes are made, where will the orga nization be in one year? D) If the evaluation is negative, what specific actions should management take? E) If no changes are made, where will the organization be in 10 years? Answer: B Difficulty: Moderate Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Analytical thinking 3 Copyright © 2024 Pearson Education, Inc. 9) In the Bain & Company survey of executives from more than 70 countries, which of the following was the number one tool used by decision makers? A) Customer relationship management B) Strategi c planning C) Marketing planning D) Financial management E) Budgeting Answer: B Difficulty: Challenging Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 10) Strategic planning within a small organization A) may be informal and irregular. B) must be elaborate to allow for future growth. C) should always be formalized and explicitly stated. D) should be done by the president only. E) is unnecessary and a waste of time. Answer: A Difficulty: Mo derate Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 11) Strategic planning in a large firm A) should be informal to allow complete understanding by the many participants. B) should be instigated only f rom the main corporate office. C) should be accomplished quickly to decrease the likelihood of it becoming outdated. D) should encourage a clear delineation between top management and lower -level managers. E) should be a formalized and sophisticated system. Answer: E Difficulty: Moderate Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 12) Strategic management is the set of managerial decisions that help determine the long -term perform ance of a corporation. Answer: TRUE Difficulty: Easy Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 13) As annual budgets become less useful at stimulating long -term success, managers attempt to propos e five -year plans. Answer: TRUE Difficulty: Easy Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 4 Copyright © 2024 Pearson Education, Inc. 14) One of the benefits of strategic management is a clearer sense of strategic direction for the firm. Answer: TRUE Difficulty: Moderate Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Analytical thinking 15) To be effective, strategic management must be a formal process. Answer: FALSE Difficulty: Challenging Learning Obj.: 1.1 : Discuss the benefits of strategic management AACSB: Analytical thinking 16) How does basic financial planning differ from forecast -based planning? Answer: The two differ in terms of the time horizons involved. While the time horizon for basic financial planning is usually a year, it is typically three to five years for forecast -based planning. In addition, basic financial planning relies almost enti rely on information generated internally, while forecast -based planning uses both internal and external information. Difficulty: Moderate Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 17) The integrated internationalization of markets and corporations is called A) normalization. B) economic integration. C) globalization. D) nationalization. E) regionalization. Answer: C Difficulty: Easy Learning Obj.: 1.2: Explain how globalization, innovati on, and environmental sustainability influence strategic management AACSB: Application of knowledge 18) The term used to describe new products, services, methods, and organizational approaches that allow businesses to achieve extraordinary returns is A) ROI. B) innovation. C) competitive advantage. D) sustainability. E) profit maximization. Answer: B Difficulty: Moderate Learning Obj.: 1.2: Explain how globalization, innovation, and environmental sustainability influence strategic management AACSB: Ap plication of knowledge 5 Copyright © 2024 Pearson Education, Inc. 19) The agreement between El Salvador, Guatemala, Honduras, Nicaragua, Costa Rica, and the United States is called A) EU. B) ASEAN. C) NAFTA. D) Mercosur. E) CAFTA. Answer: E Difficulty: Moderate Learning Obj.: 1.2: Explain how globalization, innovation, and environmental sustainability influence strategic management AACSB: Application of knowledge 20) Members of the European Union (EU) include all of the following EXCEPT A) Ireland. B) the United Kingdom. C) Belgiu m. D) France. E) Slovakia. Answer: B Difficulty: Easy Learning Obj.: 1.2: Explain how globalization, innovation, and environmental sustainability influence strategic management AACSB: Application of knowledge 21) Argentina is part of which trade allia nce? A) ASEAN B) Mercosur C) EU D) NAFTA E) CAFTA Answer: B Difficulty: Easy Learning Obj.: 1.2: Explain how globalization, innovation, and environmental sustainability influence strategic management AACSB: Application of knowledge 6 Copyright © 2024 Pearson Education, Inc. 22) The currency used to integrate the monetary systems of the European Union (EU) is called the A) peso. B) dollar. C) euro. D) franc. E) pound. Answer: C Difficulty: Easy Learning Obj.: 1.2: Explain how globalization, innovation, and environmental sustainabil ity influence strategic management AACSB: Application of knowledge 23) The triple bottom line refers to which of the following responsibilities of an organization? A) Responsibilities in the conservation of water, air, and oil B) Responsibilities in impa cting footprints, finance, and environment C) Responsibilities with respect to the physical environment, traditional profit/loss, and air D) Traditional profit/loss, social responsibility, and environmental responsibility E) Traditional social responsibili ty, responsibility to people, and to ethics Answer: D Difficulty: Challenging Learning Obj.: 1.2: Explain how globalization, innovation, and environmental sustainability influence strategic management AACSB: Application of knowledge 24) During the wor ldwide Covid -19 pandemic, supply lines that were tightly managed for minimal stock -on-hand unraveled as the world went into repeated lockdowns and then surges of consumer demand. This is an example of the downside of A) containerization. B) internationalization. C) globalization. D) localization. E) regionalization. Answer: C Difficulty: Moderate Learning Obj.: 1.2: Explain how globalization, innovation, and environmental sustainability influence strategic management AACSB: Application of knowledge 25) Certified B Corporations are businesses that meet certain social and environmental performance measures, along with public transparency aimed at creating a balance of profitability and sustainability. Answer: TRUE Difficulty: Moderate Learning Obj.: 1.2: Explain how globalization, innovation, and environmental sustainability influence strategic management AACSB: Application of knowledge 7 Copyright © 2024 Pearson Education, Inc. 26) Jobs, knowledge, and capital are now able to move across borders with far greater speed and far le ss friction than was possible only a few years ago. Answer: TRUE Difficulty: Moderate Learning Obj.: 1.2: Explain how globalization, innovation, and environmental sustainability influence strategic management AACSB: Analytical thinking 27) One member of the European Union (EU) is the United Kingdom. Answer: FALSE Difficulty: Moderate Learning Obj.: 1.2: Explain how globalization, innovation, and environmental sustainability influence strategic management AACSB: Application of knowledge 28) The goal of NAFTA is to improve trade among Canada, the United States, and Mexico. Answer: TRUE Difficulty: Moderate Learning Obj.: 1.2: Explain how globalization, innovation, and environmental sustainability influence strategic management AACSB: Application of knowledge 29) The triple bottom line is a term used to describe a business's sustainability. Answer: TRUE Difficulty: Moderate Learning Obj.: 1.2: Explain how globalization, innovation, and environmental sustainability influence strategi c management AACSB: Application of knowledge 30) Innovation is the machine that generates business opportunities in the market. Answer: TRUE Difficulty: Moderate Learning Obj.: 1.2: Explain how globalization, innovation, and environmental sustainabili ty influence strategic management AACSB: Application of knowledge 31) A Gallup study reported that companies that focused on business sustainability had 3.9 times the EPS growth rates as compared to organizations that did not focus on business sustainabi lity. Answer: TRUE Difficulty: Challenging Learning Obj.: 1.2: Explain how globalization, innovation, and environmental sustainability influence strategic management AACSB: Application of knowledge 8 Copyright © 2024 Pearson Education, Inc. 32) Briefly describe the concept of the triple bott om line and its role in sustainability. Answer: In 1994, John Elkington came up with the term, "triple bottom line" to describe a business's sustainability. Triple bottom line suggests that businesses prepare and report on three separate bottom lines in t heir annual report: • The traditional profit and loss that reports on financial performance. • A people account that looks at the social responsibility of the organization. • A planet account that identifies the organization's environmental responsibility. Difficulty: Moderate Learning Obj.: 1.2: Explain how globalization, innovation, and environmental sustainability influence strategic management AACSB: Application of knowledge 33) Which theory proposes that once an organization is successfully established in a particular environmental niche, it is unable to adapt to changing conditions? A) Population ecology B) Institution C) Citizenship D) Strategic choice E) Organizational learning Answer: A Difficulty: Moderate Learning Obj.: 1.3: Discuss the differences between the theories of organizations AACSB: Application of knowledge 34) The theory that proposes organizations can and do adapt to changing conditions by imitating other successful organizations is known as A) population ecology. B) institution theory. C) citizenship theory. D) strategic theory. E) sample theory. Answer: B Difficulty: Moderate Learning Obj.: 1.3: Discuss the differences between the theories of organizations AACSB: Application of knowledge 9 Copyright © 2024 Pearson Education, Inc. 35) The theory that proposes that organizations adjust defensively to a changing environment and use knowledge offensively to improve the fit between themselves and their environment is known as A) population ecology theory. B) institution theory. C) the strategic choice perspective. D) organizational learning theory. E) organizational citizenship theory. Answer: D Difficulty: Moderate Learning Obj.: 1.3: Discuss the differences between the theories of organizations AACSB: Application of knowledge 36) Organizational learning theory proposes that organizations can and do adapt to changing conditions by imitating other successful organizations. Answer: FALSE Difficulty: Easy Learning Obj.: 1.3: Discuss the differences between the theorie s of organizations AACSB: Application of knowledge 37) When Apple cuts into the sales of its own offerings with periodic introduction of new products, it is demonstrating A) strategy implementation. B) chaos formulation. C) contingency management. D) lo gical incrementalism. E) strategic flexibility. Answer: E Difficulty: Moderate Learning Obj.: 1.4: Discuss the activities where learning organizations excel AACSB: Application of knowledge 38) An organization skilled at creating, acquiring, and transf erring knowledge, aimed at modifying its behavior to reflect new knowledge and insights is a(n) A) learning organization. B) strategically managed corporation. C) innovative organization. D) hypercompetitive competitor. E) entrepreneurial firm. Answer: A Difficulty: Easy Learning Obj.: 1.4: Discuss the activities where learning organizations excel AACSB: Application of knowledge 10 Copyright © 2024 Pearson Education, Inc. 39) All of the following reflect activities of a learning organization EXCEPT A) experimenting with new approaches. B) learning from its own experiences and past history. C) solving problems systematically. D) alienating competitors in the industry. E) transferring knowledge quickly and efficiently throughout the organization. Answer: D Difficulty: Moderat e Learning Obj.: 1.4: Discuss the activities where learning organizations excel AACSB: Application of knowledge 40) According to Alfred Chandler, what type of industries are defined by "paths of learning" in which organizational strengths derive from le arned capabilities? A) Consumer products B) Automotive C) High -technology D) Infrastructure E) Personal services Answer: C Difficulty: Challenging Learning Obj.: 1.4: Discuss the activities where learning organizations excel AACSB: Application of knowl edge 41) Strategic rigidity is the ability to shift from one dominant strategy to another. Answer: FALSE Difficulty: Easy Learning Obj.: 1.4: Discuss the activities where learning organizations excel AACSB: Application of knowledge 42) A learning organization is skilled at solving problems systematically. Answer: TRUE Difficulty: Moderate Learning Obj.: 1.4: Discuss the activities where learning organizations excel AACSB: Application of knowledge 43) Explain briefly the concept of str ategic flexibility and how it relates to the idea of a learning organization. Answer: To compete successfully in a dynamic, complex environment, an organization must develop strategic flexibility, the ability to shift from one dominant strategy to another . In order to enhance its strategic flexibility, an organization has to make a long -term commitment to the development and nurturing of critical resources and capabilities. In addition, the organization should become adept at creating, acquiring, and trans ferring knowledge aimed at modifying its behavior to reflect new knowledge and insights — in other words, become a learning organization. Difficulty: Moderate Learning Obj.: 1.4: Discuss the activities where learning organizations excel AACSB: Applicati on of knowledge 11 Copyright © 2024 Pearson Education, Inc. 44) Which one of the following is not one of the basic elements of the strategic management process? A) Strategy formulation B) Strategy implementation C) Statistical process control D) Evaluation and re -assessment E) Environmental analysis Answer: C Difficulty: Easy Learning Obj.: 1.5: Describe the basic model of strategic management and its components AACSB: Application of knowledge 45) SWOT is a part of the ________ component of the strategic management process. A) environmental analysis B) business strategy C) functional strategy D) strategy formulation E) strategy implementation Answer: A Difficulty: Moderate Learning Obj.: 1.5: Describe the basic model of strategic management and its components AACSB: Application of knowledge 46) The S in SWOT stands for A) strategies. B) scanning. C) strengths. D) societal. E) sociocultural. Answer: C Difficulty: Easy Learning Obj.: 1.5: Describe the basic model of strategic management and its components AACSB: Ap plication of knowledge 47) A firm's task environment is also called its A) internal environment. B) technical environment. C) terminal environment. D) industry. E) customers. Answer: D Difficulty: Easy Learning Obj.: 1.5: Describe the basic model of strategic management and its components AACSB: Application of knowledge 12 Copyright © 2024 Pearson Education, Inc. 48) The variables structure, culture, and resources pertain to the A) external environment. B) internal environment. C) sociocultural forces. D) task environment. E) societal environment. Answer: B Difficulty: Moderate Learning Obj.: 1.5: Describe the basic model of strategic management and its components AACSB: Application of knowledge 49) The task environment A) includes those elements or groups within an organi zation's industry. B) encompasses the physical working areas of the organization. C) is an accounting of the many jobs within an organization. D) is an advisory committee to top -management. E) includes general forces that only indirectly affect an organiza tion's activities. Answer: A Difficulty: Moderate Learning Obj.: 1.5: Describe the basic model of strategic management and its components AACSB: Application of knowledge 50) Which one of the following is included in the firm's internal environment? A) Competitors B) Economic forces C) Resources D) Governments E) Special interest groups Answer: C Difficulty: Moderate Learning Obj.: 1.5: Describe the basic model of strategic management and its components AACSB: Application of knowledge 51) Key ________ in the internal environment form a set of core competencies that the organization can use to gain competitive advantage. A) opportunities B) trends C) weaknesses D) strengths E) threats Answer: D Difficulty: Moderate Learning Obj.: 1.5: Describ e the basic model of strategic management and its components AACSB: Application of knowledge 13 Copyright © 2024 Pearson Education, Inc. 52) The Strategic Management Model presents the following process for strategy formulation: A) Objectives — Policies — Strategies — Mission. B) Mission — Polic ies — Strategies — Objectives. C) Policies — Mission — Strategies — Objectives. D) Policies — Strategies — Objectives — Mission. E) Mission — Objectives — Strategies — Policies. Answer: E Difficulty: Moderate Learning Obj.: 1.5: Describe the basic model of strategic management and its components AACSB: Analytical thinking 53) The process of investigation, analysis, and structured decision making that provides an organization with the criteria for attaining a competitive advantage is known as A) strategy formulation. B) strategy implementation. C) strategy control. D) strategic analysis. E) strategy evaluation. Answer: A Difficulty: Moderate Learning Obj.: 1.5: Describe the basic model of strategic management and its components AACSB: Applicat ion of knowledge 54) The corporate mission is best described by which one of the following? A) A description of the activities carried out by the organization B) The purpose or reason for the corporation's existence C) A description of top management's re sponsibilities D) A statement of corporate objectives E) A statement of what the organization would like to become Answer: B Difficulty: Moderate Learning Obj.: 1.5: Describe the basic model of strategic management and its components AACSB: Application of knowledge 55) Which one of the following is an example of a mission with a narrow scope? A) Transportation (vs. railroads) B) Computers (vs. office equipment) C) Health care (vs. hospitals) D) Real estate (vs. apartments) E) Telecommunications (vs. television) Answer: B Difficulty: Challenging Learning Obj.: 1.5: Describe the basic model of strategic management and its components AACSB: Analytical thinking 14 Copyright © 2024 Pearson Education, Inc. 56) Mission describes what the organization is now, while ______ __ describe(s) what the organization would like to become. A) planning B) vision C) budgeting D) decisions E) strategizing Answer: B Difficulty: Moderate Learning Obj.: 1.5: Describe the basic model of strategic management and its components AACSB: App lication of knowledge 57) Which of the following is an example of a mission statement? A) Diversify product line to appeal to more people B) Increase sales by ten percent over last year C) Pay highest salaries to keep high quality employees D) Develop and sell quality appliances worldwide E) Divide a sales region into a group of sales districts Answer: D Difficulty: Challenging Learning Obj.: 1.5: Describe the basic model of strategic management and its components AACSB: Application of knowl edge 58) A goal differs from an objective because a goal A) is open -ended. B) is quantified. C) specifies measurable results. D) is clearly specified. E) provides a time horizon. Answer: A Difficulty: Challenging Learning Obj.: 1.5: Describe the basic model of strategic management and its components AACSB: Analytical thinking 59) Which of the following is an example of an objective? A) To diversify product line to appeal to more people B) To increase sales by ten percent over last year C) To pay highest salaries to keep high quality employees D) To develop and sell quality appliances worldwide E) To divide a sales region into a group of sales districts Answer: B Difficulty: Challenging Learning Obj.: 1.5: Describe the basic model of strategic management and its components AACSB: Application of knowledge