Exam 1 MG-630 University of North Alabama Comprehensive Questions With 100% Correct Answers Pass.

Which of the following is not one of the steps in the strategic management process? - correct answers A. Execute the strategy B. Control the strategy as necessary C. Conduct an internal analysis D. All of the above are steps in the strategic management process. Correct Answer: D Which strategic planning approach has been endorsed by most strategy scholars? - correct answers Scientific perspective Which of the following distinctions is not typically associated with strategic decision-making? - correct answers It involves decisions made by the CEO, not the top management team. Top management teams - correct answers A. usually make better decisions as a group than the CEO could make alone. B. may include middle managers. C. may include members of the board of directors. D. All of the above. Correct Answer: D A firm's industry - correct answers can be difficult to define. The decline in unit costs of a product that occurs as the absolute volume of production increases is known as - correct answers A. factor analysis. B. industry economies. C. economies of scope. D. None of the above. Correct Answer: D When firms that provide key raw materials to an industry constantly negotiate for higher prices, the - correct answers bargaining power of suppliers is high. U.S. legislation that increased regulation of financial markets and credit rating agencies is known as the - correct answers Dodd-Frank Act. A recession - correct answers may actually help some industries. Opponents of anthropogenic climate change contend that - correct answers human activity is not a primary cause of changes in global climate patterns. The unconscious reference to one's own cultural values as a standard of judgment is known as - correct answers the self-reference criterion. When implemented properly, outsourcing can - correct answers A. cut costs. B. refocus the core business. C. improve firm performance. D. All of the above. Correct Answer: D The Internet - correct answers a. has unleashed a number of successful business models. c. can be factored into most successful business models. b. has unleashed a number of unsuccessful business models. d. All of the above Correct Answer: D The systematic collection and analysis of information about relevant environmental trends is known as - correct answers environmental scanning. The competing priorities of an organization's stakeholders are known as - correct answers A. the organization's goals. B. the mission. C. the organization's objectives. D. None of the above Correct Answer: D A situation in which a firm's managers fail to act in the best interest of the shareholders is known as - correct answers the agency problem. The CEO also serving as chair of the board is known as - correct answers CEO duality. Which of the following options is commonly viewed as risk averse? - correct answers Operate in unrelated industries. When a firm expands downstream, it is engaging in a process called - correct answers forward integration. A scenario in which a local franchisee pays a franchisor in another country for the right to use the franchiser's brand names, promotion, materials, and procedures is known as - correct answers international franchising. A strategy seeks to develop and sustain competitive advantage. - correct answers True. Strategy refers to top management's plans to develop and sustain competitive advantage—a state whereby a firm's successful strategies cannot be easily duplicated by its competitors—so that the organization's mission is fulfilled. Strategic management refers to formulating successful strategies for an organization. - correct answers False. Strategic management considers more than just strategy; it is a process that includes top management's analysis of the environment in which the organization operates prior to formulating a strategy, as well as the plan for implementation and control of the strategy. Each step in the strategic management process is independent so that changes in one step will not substantially affect other steps. - correct answers False. All steps in the strategic management process are interrelated. The intended strategy and the realized strategy can never be the same. - correct answers False. If a strategy is implemented just as it was planned, then the intended and realized strategies will be the same. This is possible, but not common. Whereas industrial organization theory emphasizes the influence of industry factors of firm performance, resource-based theory emphasizes the role of firm factors. - correct answers True. Industrial organization emphasizes the influence of the industry environment upon the firm. Resource-based theory views performance primarily as a function of a firm's ability to utilize its resources. Strategic decisions are made solely by and are ultimately the responsibility of the chief executive alone. - correct answers False. Although the chief executive alone is responsible for strategic decisions, he or she usually forms a top management team to assist in making the decisions. Strategies are formulated in the strategic management stage that occurs immediately after - correct answers the assessment of internal strengths and weaknesses. The strategy originally planned by top management is called the - correct answers intended strategy. The notion that successful firms tend to be the ones that adapt to influences in their industries is based on - correct answers industrial organization theory. The notion of distinctive competence is consistent with - correct answers resource-based theory. To contribute to sustained competitive advantage, firm resources should be - correct answers A. valuable and rare. B. not subject to perfect imitation. C. without strategically relevant resources. D. all of the above. Correct Answer: D Which of the following is not a characteristic of strategic decisions? - correct answers A. They are long-term in nature. B. They involve choices. C. They involve trade-offs. D. All of the above are characteristics of strategic decisions. Correct Answer: D