general business data bank

51. Jerrica, a finance manager at LRV industries, is asked by her boss to develop a plan in the event that company sales drop by 20 percent or more. This type of plan is known as a(n):

a.	Contingency planning
b.	Financial planning
c.	Crisis planning
d.	Consumer protection
e.	Environmental planning

52. The two stages of crisis planning include:

a.	Prevention and control
b.	Planning and leading
c.	Prevention and preparation
d.	Preparation and control
e.	Leading and organizing

53. Jeff is a top manager at a textile factory. He is developing a crisis plan in the event that the company has a toxic spill or accident. Which of the following should Jeff undertake to prepare for such a crisis?

a.	Building relationships with neighboring businesses
b.	Detecting signals from the natural environment
c.	Polling employees on the likelihood of an environmental disaster
d.	Designating a crisis management team in the event of an environmental disaster
e.	Dismantling the company’s ties to the external media

54. ___________ are reasonable yet highly ambitious goals that are so clear, compelling, and imaginative that they fire up employees and engender excellence.

a.	Operational goals
b.	Stretch goals
c.	Strategic goals
d.	Tactical goals
e.	Bottom-up goals

55. A(n) _________ is a cross-functional group of managers and employees who work together to gain a deep understanding of specific business issues, with the aim of presenting insights related to that issue.

a.	Espionage team
b.	Functional team
c.	Task force
d.	Project team
e.	Intelligence team

56. At Save-tech, Sophia, director of marketing, is a member of a cross-functional group of managers and employees. The purpose of the group is to gain a deep understanding company’s competitive environment and periodically present these findings to top management. Sophia is involved in what type of team?

a.	Intelligence team
b.	Functional team
c.	Task force
d.	Project team
e.	Espionage team

57. One major limitation of goals and plans is:

a.	Goals and plans guide resource allocation
b.	Goals and plans may cause rigidity in a turbulent environment
c.	Goals and plans decrease employee motivation
d.	Goals and plans decrease employee commitment
e.	None of the above

58. The set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals is known as

a.	strategy formulation.
b.	strategic planning.
c.	strategic management.
d.	strategy implementation.
e.	strategy evaluation.

59. The plan of action that prescribes resource allocation and other activities for dealing with the environment and helping the organization attain its goals is known as a(n)

a.	goal.
b.	objective.
c.	mission.
d.	vision.
e.	strategy.

60. The condition that exists when the organization's parts interact to produce a joint effect that is greater than the sum of the parts acting alone is known as

a.	core competence.
b.	synergy.
c.	value creation.
d.	business-level strategy.
e.	multidomestic strategy.

61. ____ can be defined as the combination of benefits received and costs paid by the customer.

a.	Organizational benefits
b.	Value
c.	Cost-benefit diversity
d.	Synergy
e.	Core competence

62. When properly managed, ____ can create additional value with existing resources, providing a big boost to the bottom line.

a.	synergy
b.	competitors
c.	government contacts
d.	command structure
e.	cooperation among customers

63. ____ refers to the use of managerial tools to direct resources toward the achievement of strategic results.

a.	Strategy formulation
b.	Strategy coordination
c.	Strategy execution
d.	Strategy control
e.	Strategy planning

64. Which of the following refers to the planning and decision making that lead to the establishment of the organization's goals and of a specific strategic plan?

a.	Strategy formulation
b.	Strategy implementation
c.	Strategy coordination
d.	Strategy control
e.	SWOT

65. Fred has been assigned to conduct a SWOT analysis for his organization, Flintstones, Inc. As part of this assignment, Fred will

a.	conduct an external wage survey.
b.	search for the strengths, weaknesses, opportunities, and threats that impact his firm.
c.	choose a grand strategy for his firm.
d.	do a cost/benefit analysis.
e.	develop a mission.

66. Classy Clay has extremely creative employees who, in the opinion of the organization, keep the company ahead of the competition. The creativity of these employees would be classified as

a.	an internal weakness.
b.	an external opportunity.
c.	an external strength.
d.	an internal strength.
e.	a neutral factor.

67. Where does the information about opportunities and threats comes from?

a.	An analysis of the organization's internal environment
b.	A department by department study of the organization
c.	Scanning the external environments
d.	Employee grievances
e.	Financial ratios of the organization

68. Flush Away, Inc. is particularly concerned about pending legislation in Congress that would further regulate their organization. This legislation would be classified as

a.	an external opportunity.
b.	an internal strength.
c.	an external threat.
d.	an external weakness.
e.	a congressional chaos.

69. Barriers to entry are related to which competitive force?

a.	Rivalry among competitors
b.	Potential new entrants
c.	Threat of substitute products
d.	Bargaining power of buyers
e.	Bargaining power of suppliers

70. All of the following are Porter's competitive forces EXCEPT

a.	differentiation.
b.	bargaining power of buyers.
c.	bargaining power of suppliers.
d.	threat of substitute products.
e.	potential new entrants.

71. Which of the following is NOT one of Porter's competitive forces?

a.	Potential new entrants
b.	Bargaining power of suppliers
c.	Bargaining power of stockholders
d.	Bargaining power of customers
e.	Rivalry among competitors

72. Which of Porter's five forces is influenced by all of the other four?

a.	Threat of substitute products
b.	Rivalry among competitors
c.	Bargaining power of buyers
d.	Potential new entrants
e.	Bargaining power of suppliers

73. The ____ strategy involves strong central authority, cutting costs, and maintaining standard operating procedures to be more efficient than competitors.

a.	cost leadership
b.	differentiation
c.	focus
d.	internal growth
e.	liquidation

74. Some people argue that ____ is the most difficult and most important part of strategic management.

a.	SWOT analysis
b.	strategic formation
c.	strategic execution
d.	strategic analysis
e.	strategy evaluation

75. Persuasion, motivation, and changes in cultures and values are examples of which of the dimensions used to execute strategy?

a.	Visible leadership
b.	Structural design
c.	Human resources
d.	Information and control systems
e.	Candid communication

76. Which of the following is NOT one of the tools used for putting strategy into action?

a.	Visible leadership
b.	Diversification
c.	Human Resources
d.	Communication
e.	Clear roles and accountability

77. The ____ function recruits, selects, trains, transfers, promotes, and lays off employees to achieve strategic goals.

a.	Production
b.	Leadership
c.	information and control systems
d.	structural design
e.	human resource

78. After Sunshine Systems merged with RTD Enterprises, company executives noticed that due to increased employee collaboration between the two units, costs were down and revenues increased within both areas. This is an example of what business phenomenon?

a.	Strategy execution
b.	Portfolio strategy
c.	Core competency
d.	Synergy
e.	Delivering value

79. Which of the following is true regarding the impact of the Internet on Porter’s Five Forces affecting industry competition?

a.	Internet increases barriers to entry
b.	Internet decreases bargaining power of suppliers
c.	Internet shifts power away from end customers
d.	Internet cuts down on substitute product threats
e.	Internet blurs differences among competitors

80. Sugar manufacturers have been steadily losing business as a result of increasing use of high-fructose corn syrup in processed foods. However, sugar sales are beginning to increase again in recent months. This example most closely demonstrates which of Porter’s Five Forces?

a.	Bargaining power of suppliers
b.	Bargaining power of consumers
c.	Rivalry among competitors
d.	Threat of new entrants
e.	Threat of new substitutes

81. People need to understand how their individual actions can contribute to achieving an organizational strategy. This can be accomplished by delegating authority, creating teams, and defining roles. These actions are part of which tool for putting strategy into action?

a.	Visible leadership
b.	Candid communication
c.	Human resources
d.	Clear roles and accountability
e.	Bargaining power of employees