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31 Cards in this Set
- Front
- Back
Rational Logic is essential to making good strategic decisions, particularly in situations of great uncertainty or little precedent. |
False |
|
All strategy formulation, implementation and evaluation decisions have ethical ramifications. |
True |
|
A mission statement answers the question "What do we want to become?" whereas a vision statement answers "What is our business?" |
False |
|
Opportunities and threats are included within an organization's controllable activities through the strategic management process. |
False |
|
The following is not an activity of the strategy implementation phase of the strategic management process. |
Developing strategies |
|
Which of the following is called the action phase of the strategic management process? |
Strategy implementation |
|
Only a few managers can be involved in the process of performing an external audit |
False |
|
When interest rates fall, capital becomes more costly or unavailable, discretionary income falls and demand for discretionary good falls. |
False |
|
A firm's opportunities and threats result from the impact of external forces on the firm's diverse set of stakeholders, as well as on its products, services markets and natural environment. |
True |
|
In an EFE Matrix, opportunities often receive higher weights than threats, but threats too can receive hight weights if they are especially severe if threatening. |
True |
|
The strategic management process is conceptually the same for multinational firms as for purely domestic firms; however, multinational firms face unique and diverse risks that domestic firms do not. |
True |
|
To perform an external audit, a company first must: |
Gather competitive intelligence and information about external trends. |
|
Key social, cultural, demographic and environmental variables does not include: |
Size of government budgets |
|
The vision statement should be short-preferably one sentence. |
True |
|
An enduring statement of purpose that distinguishes one organization from other similar enterprises, the mission statement is a declaration of an organization's "reason for being." |
True |
|
An effective mission statement is usually broad in scope to allow for a range of feasible alternative objectives and strategies and to effectively reconcile differences among, and appeal to, the organization's diverse stakeholders. |
True |
|
A clear mission provides he foundation for developing a comprehensive vision statement. |
False |
|
Not a component of a mission statement. |
Competitiors |
|
Social policy doesn't concern what responsibilities the firm has to: |
Competitors |
|
The tangible, visible, and largely conscious forces that shape the workplace are captured by the organization's culture. |
False |
|
Compared tot the external audit, the process of performing an internal audit provides more opportunity for participants to understand how their jobs, departments, and divisions fit into the whole organization. |
True |
|
Internal Factor Evaluation Matrix provides a basis for identifying and evaluating relationships among the functional areas of a business. |
True |
|
The Resource-Based View approach to competitive advantage contends that external forces are more important for a firm than internal factors in achieving and sustaining competitive advantage. |
True |
|
A firm's strengths that cannot be easily matched or imitated by competitors are called: |
Distinctive competencies |
|
An IFE doesn't involve: |
Assigning a weight that ranges from 0.0 to 1.0 to each factor that indicates the relative importance of the factor to the firm's success regardless of the industry it is in. |
|
There are seven basic functions of marketing: customer analysis, selling product and service planning, pricing, distribution, marketing marketing research and opportunity analysis. |
True |
|
Dividend decisions concern issues such as the percentage of earnings paid to stockholders, the stability of dividends paid over time and the repurchase or issuance of stock. |
True |
|
A management information system receives raw material from both the external and internal evaluation of an organization. |
A limitation of financial ratios is the fact that they are based on the accounting data. |
|
Four common approaches to determine R&D budget allocations used successfully are: 1)finance as many project proposals as possible; 2) use a percentage-of-sales method; 3) budget for R&D about what competitors spend; or 4) decide how many successful new products are needed and work backwards to estimate the required R&D investment. |
True |
|
____________________ management deals with inputs, transformations and outputs that vary across industries and markets. |
Production/Operations |
|
The _______________ decision concerns determining the best capital structure for the firm and includes examining various methods by which the firm can raise capital. |
Financing |