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After a firm has identified its key stakeholders in stakeholder impact analysis, the immediate next step is to


A) recognize the opportunities and threats the stakeholders present.
B) identify stakeholders' interests and claims.
C) formulate a stakeholder strategy.
D) address the stakeholders' concerns.

E) All of the above
F) A) and B)

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A firm is required by society and its shareholders to meet its ethical and philanthropic responsibilities.

A) True
B) False

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Hannah is the Chief Operating Officer of the startup AppPalace. In which of the following scenarios does Hannah exhibit strategic leadership?


A) Hannah directs the company to produce an app for reptile enthusiasts, a community she happens to be a part of. Even though the app ends up losing significant amounts of money, Hannah is proud of the product and uses it every day.
B) Citing budget concerns, Hannah ignores the directions from AppPalace's CEO to double the size of the customer support staff. As a result, the company misses its third quarter customer satisfaction target but exceeds its net profit expectations by 5 percent.
C) Hannah schedules a meeting with the manager of the marketing department and overcomes his skepticism about a new campaign aimed at customers in the 55+ age group. Over the next three months, AppPalace gains 250,000 new users in that group.
D) With a major pitch to potential investors coming up, Hannah works alone for 10 hours a day until she writes the perfect sales pitch. Even though the rest of her team doubts that they can meet the performance goals Hannah has set, she makes the presentation anyway.

E) All of the above
F) C) and D)

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What makes scenario planning more flexible than top-down strategic planning?

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Similar to top-down strategic planning, ...

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Discuss the pyramid of corporate social responsibility (CSR).

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The pyramid summarizes the four componen...

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In the top-down strategic planning approach, all strategic intelligence and decision-making responsibilities rest primarily on the


A) functional managers.
B) chief executive officer.
C) external stakeholders.
D) general manager.

E) C) and D)
F) A) and C)

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Who among the following is responsible for making business strategies in a large conglomerate?


A) the board of directors at the headquarters
B) the shareholder of the company
C) the lower-level employees in the company
D) the general managers of individual business units

E) A) and B)
F) A) and C)

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The best example of a firm's external stakeholder is a(n)


A) government agency that regulates the prices of products manufactured by the firm.
B) board member from a wholly-owned foreign subsidiary of the firm.
C) shareholder who has invested money in the firm but is not employed by the firm.
D) employee of the firm who is responsible for a contract project.

E) All of the above
F) None of the above

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Which of the following best qualifies as a firm's internal stakeholder?


A) an auditor assigned to the firm by a federal government agency
B) a labor union with whom the firm's employees can affiliate
C) a manager taking care of the firm's operations in a foreign market
D) a competitor manufacturing the same products as that of the firm

E) C) and D)
F) B) and D)

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Strategic thinking is different from strategic planning in that


A) strategic thinking includes all types of information sources while strategic planning does not.
B) strategic thinking relies more on hard data than strategic planning.
C) strategic thinking is regimented and confining, whereas strategic planning is more flexible.
D) strategic thinking can create an illusion of control, whereas strategic planning avoids this.

E) A) and B)
F) C) and D)

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Top-down strategic planning as an approach to the strategic management process will be most effective when the


A) environment is constantly changing.
B) size of the firm is large.
C) probability of black swan events is high.
D) top management wants to decentralize decision making.

E) B) and D)
F) B) and C)

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PowerPills is a highly successful vitamin manufacturer. At the close of its most recent fiscal year, the company's balance sheet showed cash holdings of $110 million. Which of the following actions will provide the most benefit for stakeholders?


A) Reinvest profits into expanding the company and creating more jobs.
B) Reward the CEO with a significant bonus payment.
C) Save the excess cash as a precaution against black swan events.
D) Buy out the leading competitor to reduce competition and maintain price stability.

E) C) and D)
F) None of the above

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InTex manufactures medical devices. The firm's profitability depends on several variables that are subject to occasional change, including the cost of parts and labor, changes in medical practices, and the price of oil used in both manufacturing and shipping. To account for the potential impact of changes to any of these variables, InTex managers should implement a(n) ________ approach.


A) top-down strategic planning
B) scenario planning
C) upper-echelon
D) strategic business units

E) A) and D)
F) B) and C)

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Differentiate between a firm's intended, realized, and emergent strategies.

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Top-level executives design an intended ...

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Which of the following summarizes the difference between corporate strategy and business strategy?


A) Corporate strategy deals with how to compete; business strategy deals with where to compete.
B) Corporate strategy deals with when to compete; business strategy deals with how to compete.
C) Corporate strategy deals with how to compete; business strategy deals with when to compete.
D) Corporate strategy deals with where to compete; business strategy deals with how to compete.

E) A) and B)
F) A) and C)

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What does the upper-echelons theory propagate?

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According to the upper-echelons theory, ...

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The executives at Red Couture Inc. are developing strategic plans to address plausible future situations like rise in the prices of cotton and synthetic fabrics by 20 percent, appreciation in the value of the dollar, increase in the cost of labor by 30 percent, and increase in demand for the company's products. By doing so, the company will be well prepared with its planned responses if any of these situations occurs in the future. Thus, Red Couture is employing ________ as the approach to the development of strategy.


A) scenario planning
B) top-down strategic planning
C) reverse engineering
D) pattern recognition

E) None of the above
F) C) and D)

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Which of the following is an assumption that top-down strategic planning rests on?


A) We can predict the future from the past.
B) Time cannot be compressed at will.
C) Decisions made in the past do not affect our future.
D) Change is constant.

E) B) and D)
F) All of the above

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Perpetual Batteries recently came under criticism when a newspaper article revealed that the company's production plant had leaked a chemical compound into a sensitive wetland ecosystem. Although use of the chemical was not technically prohibited by law, the local government levied a small fine for cleaning up the spill. Environmental groups, however, argued that continued use of the chemical was damaging to the local wildlife and threatened to organize a boycott against Perpetual Batteries. What should Perpetual Batteries do to ensure that it meets its ethical responsibilities?


A) Pay the fine levied by the local government and resume operations.
B) Move its production facilities to an area that is less concerned with environmental issues.
C) Take out an advertisement arguing that use of the chemical is perfectly legal.
D) Design batteries without the chemical and market them as environmentally friendly.

E) B) and C)
F) All of the above

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Ivan is the founder of a firm producing self-driving vehicles. Because the industry is so new and chaotic, Ivan favors a top-down strategic planning approach in which he exerts strong control over all aspects of the business, from product development and design to manufacturing and marketing. What is wrong with this scenario?


A) The self-driving vehicle industry is changing too much for the top-down approach to be effective.
B) The top-down approach can only be applied to specific business functions.
C) The top-down approach leaves other employees uncertain about their roles in the company.
D) The top-down approach is expensive to maintain, leaving the company at a competitive disadvantage.

E) A) and B)
F) A) and C)

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