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management chapter 1 > Chapter Final Quizzes > Flashcards

Chapter Final Quizzes Flashcards

1
Q

A term used in organizations whose operating units don’t meet all the SBU classification criteria are sometimes referred to as

A

Strategic growth units

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2
Q

A group of independent grocery stores merging into one company is an example of a strategic alliance

A

False

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3
Q

The Cally Company bought a company in Mexico to distribute its products in South American markets. The new company is called CalMex. This is an example of an

A

Acquisition

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4
Q

A multi-line of business organization is a company that:

A

operates in several industries

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5
Q

Diversification may lessen the impact of an industry downturn

A

True

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6
Q

In the Boston Consulting Group matrix, an SBU with high relative market share in a low growth industry would be classified as a

A

Cash Cow

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7
Q

Mergers/acquisitions involve short term commitments of companies to work together on a project

A

False

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8
Q

In the BCG matrix, which of the following is not a classification of an SBU?
cash cows
stars
problem children
stray cats

A

stray cats

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9
Q

Introducing new products to new markets is referred to as penetration strategy

A

False

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10
Q

In diversification strategies, management has the least knowledge of products and markets and may have limited knowledge of the financial resources needed to be successful

A

True

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11
Q

A manufacturer of men’s clothing is opening a chair of retail men’s clothing stores. This is an example of

A

vertical integration strategy

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12
Q

Diversification is favorable strategy when the current industry is experiencing significant growth

A

False

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13
Q

A retrentchment strategy and a divestment strategy are both interchangeable terms

A

False

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14
Q

In the GE Nine Cell Matrix, industry attractiveness is determined by which of the following

A

market size and growth

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15
Q

In a joint venture, organizations seek to combing strengths or overcome weaknesses of their individual struggles

A

true

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16
Q

Which of the following are outcomes of classifying each SBU into one of the 9 cells?

A

each SBU’s characteristics and strategic implications

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17
Q

Once an organization has defined its SBUs, strategic plans:

A

should be developed for each separate SBU

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18
Q

A stronger management team is needed for product development than diversification

A

False

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19
Q

In determining the strategy for each SBU, a firm must consider

A

synergies among SBUs

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20
Q

The strategic plan includes several __________ financial statements to help the entrepeneur or manager to estimate sales and profits

A

pro-forma

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21
Q

The statement of cash flow is arguably the most important financial statement for a business

A

True

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22
Q

The cash flow projection is an important tool as it indicates when the business expenses are too high or when you might need a short-term loan to deal with a cash shortage

A

True

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23
Q

Among the many financial ratios used in financial analysis, the three main categories are balance sheet ratios, profitability ratios, and

A

asset management ratios

24
Q

Companies that choose a differentiation strategy will enhance their product with unique features or provide additional services that allow the company to charge a higher price for their product. an example of this would be

A

automaker Tesla offering consumers premium quality electric vehicles

25
Q

For a single line of business, the corporate strategy and business level strategy are the same

A

True

26
Q

has long been part of 3M corporate strategy and has enabled the company to develop more than 55,000 products

A

Strong R&D Division

27
Q

Value Chain Analysis is a process where the company analyzes all the company from purchase of raw materials to manufacturing and marketing their products

A

True

28
Q

In business strategy, a market follower enters the market with a “copycat” product and with less marketing effort. Some refer to this as __________ and liken the process to a lion on the plains of Africa waiting for a gazelle before striking

A

market hunting

29
Q

The breakeven point in units is calculated as Breakeven point (units)= total fixed costs/(price-variable costs per unit)

A

True

30
Q

An example of a corporation operating in a single industry would be Home Depot

A

True

31
Q

There is a potential danger to operating in a single industry because if there should be an economic downturn

A

True

32
Q

Three of the most important financial statements include the income statement, balance sheet, and

A

statement of cash flow

33
Q

Companies or organizations with weak cultures often exhibit low employee turnover

A

False

34
Q

Each of the following is true regarding the income statement except

A

the income statement replaces the statement of cash flow

35
Q

Benchmarking measures value chain activities across an industry in order to determine best practices

A

true

36
Q

__________ the number of units that the firm must sell so total revenue equals total costs

A

break-even point

37
Q

Strategic planning and management has little to do with human resources

A

False

38
Q

Financial analysis measures past and projected future financial performance

A

True

39
Q

Research has found that implementation was improved by

A

simplifying measures and measuring the right things

40
Q

the culture of some visionary companies is like a cult-like culture around core ideologies and individuals who are charismatic individuals

A

False

41
Q

A circular organizational structure can be used to create organzational democracy

A

True

42
Q

Internal organizations often use hybrid forms of an organizational structure that may incorporate several types of structures

A

True

43
Q

Which of the following is an advantage of the divisional structure?

A

faster adaptation to changes in regional environmental changes

44
Q

Which of the following is a list of factors that affect resistance to change and innovation?

A

players, funding, policy, technology, customers, and accountability

45
Q

A matrix organization doesn’t work well in companies that need to manage a lot of projects

A

False

46
Q

An SBU organizational structure can lead to a proliferation of staff and duplication of activities

A

True

47
Q

Through the implementation process people are assigned tasks, given authority, and the resources need to create the activities to bring the plans to “life”

A

True

48
Q

One of the most important considerations in implementing plans is to foster ownership of the process

A

true

49
Q

Which of the following is an advantage of the matrix form of organization?

A

training opportunities for strategic managers

50
Q

structure refers to the formal arrangement of activities in an organization

A

true

51
Q

Action plans help assign responsibility for specific tasks to specific individuals

A

true

52
Q

In a divisional organizational structure, managers are given authority and responsibility to formulate implementation but not strategies for their division

A

False

53
Q

Clan members believe it is in their best interest to operate as a lone wolf to enhance creativity in the organization

A

False

54
Q

Subordinates that have dual assignments to the business/product line/project managers and their functional managers, fall under this structural design:

A

matrix structure

55
Q

Improvements are better ways of satisfying customers

A

True

56
Q

Individuals who are not willing to try news tasks or ways of doing tasks are

A

change resistors

management chapter 1 (4 decks)

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