MGT 498 Final Exam Answer.docx

MGT 498 Final Exam A MGT 498 Final Exam Answer 1) In a survey of 50 corporations, which of the following was rated as a benefit of strategic management? A. Clearer sense of vision for the firm 2) Research suggests that strategic management evolves through four sequential phases in corporations. The first phase is B. basic financial planning 3) Strategic management is that set of managerial decisions and actions that determine the long-run performance of a corporation. Which one of the following is NOT one of the basic elements of the strategic management process? C. Statistical process control 4) The relationship among the board of directors, top management, and shareholders is referred to as C. corporate governance 5) The concept that proposes private corporations have responsibilities to society that extend beyond making a profit is known as B. social responsibility 6) Who said that the social responsibility of business is a "fundamentally subversive doctrine" and that the one social responsibility of business is "to use its resources and engage in activities designed to increase its profits so long as it stays with the rules of the game..."? E. Milton Friedman 7) Which of the following is NOT descriptive of external environmental scanning? B. Used to monitor, evaluate, and disseminate information from the external environment to key people within the corporation 8) According to Porter, the corporation is most concerned with A. the intensity of competition within its industry 9) When a company determines a competency's competitive advantage, Barney refers to this issue as A. value 10) An acronym for the assessment of the external and internal environments of the business corporation in the process of strategy formulation/strategic planning is C. S.W.O.T. 11) In the development of a SFAS matrix, the first step is to C. list the most important EFAS and IFAS items 12) The technique that illustrates how management can match the external opportunities and threats with its strengths and weaknesses to yield four sets of strategic alternatives is called a (an) D. TOWS Matrix 13) Which strategy specifies the firm's overall direction in terms of its general orientation toward growth, the industries or markets in which it competes, and the manner in which it coordinates activities and transfers resources among business units? A. Corporate 14) Continuous improvement is an operations concept developed in C. Japan 15) The process by which a firm approaches its cross-border activities and those of competitors, and plans to approach them in the future, is called B. international strategy 16) What question must managers ask concerning the relationship between economic logic and international strategy? B. How does our international strategy contribute to the economic logic of our business and corporate strategies? 17) Which strategy is developed to pull together the various activities and competencies of each department so that corporate and business unit performance improves and resource productivity is maximized? E. Functional strategy 18) The strategy that deals with product and process innovation and improvement is known as a ________ strategy. B. R&D 19) The hiring of new people with new skills, firing of people with inappropriate or substandard skills, and/or training existing employees to learn new skills are included the process of B. staffing 20) The strategy implementation tool used to determine what actions are going to be taken, by whom, during what time frame, and with what expected results is called a(n) B. action plan 21) Executives with a particular mix of skills and experiences may be classified as an executive type and paired with D. a specific experience background 22) According to the text, what is the "key" to effective management of change in culture? E. Communication 23) The sum total of the activities and choices required for the execution of a strategic plan is known as in C. strategy implementation 24) Who typically implements strategy in large, multi-industry corporations? E. Everyone in the organization 25) Which one of the following is NOT a part of the evaluation and control of performance? A. Establish corporate strategies. 26) The end result of activity is known as C. performance 27) Which is the MOST commonly used measure of corporate performance (in terms of profit)? D. ROI 28) Because of the belief that accounting-based numbers such as ROI, ROE, and EPS are not reliable indicators of a corporation's economic value, which method of corporate performance is now preferred? A. Shareholder value 29) Which company experienced a tarnished reputation and scandal after experiencing behavior substitution when employees altered their behavior on the job to fit the reward system? A. Sears, Roebuck, & Co. 30) Suboptimization occurs when A. a division or functional unit views itself as a separate entity and refuses to cooperate with other divisions or units to the detriment of the organization as a whole