Semester Examination
Instructions
1. When there is little fit between a strategic alternative under study and the corporate culture, which of the following would NOT be one of the considerations taken into account?
A. Take a chance on bypassing the culture by implementing the strategic alternative
B. Manage around the culture
C. Try to change the culture to fit the strategy
D. Change the strategy to fit the culture
E. Ignore the corporate culture
Answer: __________
2. Michael E. Porter advises that a division with strong marketing abilities, product engineering, creative flair, strong capability in basic research, and a corporate reputation for quality or technological leadership should use a __________ strategy to enhance its prospects for success.
A. focus
B. differentiation
C. overall cost leadership
D. vertical growth
Answer: __________
3. An organization skilled at creating, acquiring, and transferring knowledge and modifying its behavior to reflect new knowledge and insights is a:
A. learning organization.
B. strategically managed corporation.
C. contingency management entity.
D. logical incrementalism company.
Answer: __________
4. What strategic planning process does research suggest to be the best for multidivisional corporations operating in a relatively stable environment?
A. Top-down strategic planning
B. Bottom-up strategic planning
C. Concurrent strategic planning
D. Functional area strategic planning
Answer: __________
5. A linked set of value-creating activities beginning with basic materials provided by suppliers and ending with distributors getting the final product into the hands of the ultimate consumer is called a:
A. value chain.
B. continuum of sustainability.
C. strategic capability.
D. fully integrated activity set.
E. strategic group.
Answer: __________
6. Price reductions, promotion cutbacks, and competitor dropouts characterize the __________ stage of the business life cycle.
A. introduction
B. growth
C. maturity
D. decline
E. closing
Answer: __________
7. Exxon, BP, and Amoco are popular brands of gasoline. These large companies produce essentially the same product and sell it at essentially the same price. As such, these companies are part of the following industry structure type: __________________.
A. pure monopoly
B. pure competition
C. pure oligopoly
D. monopolistic competition
E. differentiated oligopoly
Answer: __________
8. When one unit of a company sells a product to another unit, the price charged is the __________ price.
A. delivered
B. transfer
C. uniform
D. transaction
Answer: __________
9. A stock trading company that had its offices in the World Trade Center in 2001 could have used a(n) __________ to make different assumptions about market events, such as future bull markets, bear markets, day trader legislation, dot-com companies driving the market, etc. There is little chance that it would have assumed a deadly terrorist attack.
A. SWOT analysis
B. societal audit
C. industry forecast
D. scenario analysis
E. competitive analysis
Answer: __________
10. Voice of the customer (VOC) measurements can be collected using:
A. complaint forms.
B. customer shopping habits.
C. value analyses.
D. service vendor analyses.
E. demographic analysis.
Answer: __________
11. The following information pertains to Voyager Company: total assets $50,000; total current liabilities $10,000; total expenses $60,000; total liabilities $15,000; total revenues $80,000. If invested capital is defined as total assets, the return on investment is:
A. 160 percent.
B. 25 percent.
C. 57 percent.
D. 40 percent.
Answer: __________
12. Bull Company manufactures a part for its production cycle. The costs per unit of this part are: direct material $3; direct labor $5; variable factory overhead $4; and fixed factory overhead $2. The fixed factory overhead costs are unavoidable. Assuming no other use of the facilities, the highest price that Bull Company should pay for this part in a make-buy decision is:
A. $12.
B. $14.
C. $8.
D. $11.
Answer: __________
13. The primary difference between variable and absorption costing is the accounting for:
A. beginning inventory costs.
B. fixed manufacturing overhead.
C. selling and administrative costs.
D. variable manufacturing overhead.
Answer: __________
14. Which of the following is NOT a major benefit of budgeting?
A. It compels managers to think ahead.
B. It provides definite expectations that are the best framework for judging subsequent
performance.
C. It aids managers in coordinating their efforts, so that the objectives of the organization as
a whole match the objectives of its parts.
D. It allows managers to operate day-to-day, reacting to current events rather than planning
for the future.
Answer: __________
15. The most common treatment of end-of-year immaterial factory overhead variances is to:
A. ignore them.
B. allocate the variances among inventories and cost of goods sold.
C. capitalize the variances as a cost of finished goods inventory.
D. close the variances to cost of goods sold in the current period.
Answer: __________
16. Jeffery believes that his actions strongly affect the results achieved in his organization. As the result, Jeffery is described as having a __________, which tends to make Jeffery __________.
A. low internal locus of control; highly self-motivated and active politically
B. high internal locus of control; eager for information and likely to seek leadership
opportunities
C. strong belief in Theory X; dogmatic
D. strong belief in Theory Y; highly autocratic
E. charismatic leadership style; most comfortable when his work situation is highly
structured
Answer: __________
17. _______ conversation refers to people talking across boundaries and hierarchical levels about the group o organization's vision, critical strategic themes, and the values that can help achieve desired outcomes.
A. Purpose-directed
B. Strategic
C. Empowered
D. Leader
E. Group
Answer: __________
18. Sam, a chief information officer, spent two years developing a web-based purchasing system that has been operating very successfully for several months. Under his former boss, it was to be the model for a broader web-based system to meet several corporate needs. Tom, the new executive vice president, and Sam's new boss, doesn't understand technology, believes that the Internet is a fad, and that Sam shouldn't waste time expanding web-based systems to other corporate needs. Sam is very frustrated by Tom's decision. To address this issue, Sam needs to:
A. lead with love.
B. lead with fear.
C. develop his own emotional intelligence.
D. expand his own capacity for leadership.
E. try to shift Tom's mental model.
Answer: __________
19. Sally is a leader who assesses the situation and adapts her behavior and style to match her followers' needs, maturity, training, and cohesion. She can best be described as:
A. task oriented.
B. relationship oriented.
C. focused on extroversion.
D. using the contingency approach.
E. using the path-goal theory.
Answer: __________
20. Which of the following theories places emphasis on the characteristics of the follower in determining the leadership style used?
A. Contingency Theory
B. Follower Theory
C. Path-Goal Theory
D. Situational Theory
Answer: __________
