Download BUAD 4020 Exam 1 Questions And Answers and more Exams Supply Management in PDF only on Docsity!
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The goal of NAFTA is complete economic integration. - correct answer ✅False A Gallop study reported that companies that focused on business sustainability had 3.9 times the EPS growth rates as compared to organizations that did not focus on business sustainability. - correct answer ✅True The internal environment includes the variables that are within the short-run control of top management. - correct answer ✅False A functional strategy may include competitive or cooperative strategies. - correct answer ✅False In the externally oriented planning phase, plans are developed by heavily involving the input of managers from lower levels. - correct answer ✅False
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A broad mission statement may limit the scope of a firm's activities in terms of the product or service offered. - correct answer ✅False Henry Mintzberg discovered that strategic formulation is a regular, continuous process. - correct answer ✅False The phenomenon that describes corporations as evolving through relatively long periods of stability punctuated by relatively short bursts of fundamental change is known as - correct answer ✅punctuated equilibrium. The organization's corporate mission statement - correct answer ✅should set the organization apart from its competitors. FedEx stipulates specific employee behaviors including how a driver dresses to how keys are held when approaching a customer's door. This is an example of a - correct answer ✅procedure.
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In a survey of 50 corporations, which of the following was rated as a benefit of strategic management? - correct answer ✅clearer sense of vision for the firm Usually, the strategic planning staff is charged with supporting only top management in the strategic planning process. - correct answer ✅False Agency theory suggests that the majority of a board needs to be from outside the firm. - correct answer ✅True Interlocking directorates are a useful method for gaining both inside information about an uncertain environment and objective expertise about potential strategies and tactics. They are, however, increasingly frowned upon because of the possibility of collusion. - correct answer ✅True The board of directors has an obligation to approve all decisions that might affect the long-run performance of the corporation. - correct answer ✅True
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Executive leadership is the directing of activities toward the accomplishment of corporate objectives. - correct answer ✅True Outside directors may be executives of other firms but are not employees of the board's corporation. - correct answer ✅True The combined chair/CEO position is being increasingly criticized because of the potential for conflict of interest. - correct answer ✅True Which of the following is NOT descriptive of interlocking directorates? - correct answer ✅Interlocking directorates are more common in small, family-owned companies. What percentage of the 100 largest companies listed in 2011 had boards of directors with at least one woman member? - correct answer ✅96%
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Surveys of large U.S. and Canadian corporations found outsiders make up what percentage of total board membership? - correct answer ✅80% Which of the following is a trend in corporate governance? - correct answer ✅Boards are establishing mandatory retirement ages for board members. Kohlberg's preconventional level is characterized by a person's adherence to an internal moral code. - correct answer ✅False The difference between ethical and discretionary responsibilities is that few people expect an organization to fulfill ethical responsibilities. - correct answer ✅False The broader concept of sustainability is closely aligned with Carroll's view of social responsibility. - correct answer ✅True
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Cultural norms and values seldom guide ethical behavior in business. - correct answer ✅False In any one strategic decision, the interests of one stakeholder group seldom conflict with another. - correct answer ✅False Being known as a socially responsible firm may provide a company with social capital that can be used for competitive advantage. - correct answer ✅True The first step in stakeholder analysis is identifying those who have only an indirect stake in the corporation. - correct answer ✅False Some people claim that morality is relative to some personal, social, or cultural standard and that there is no method for deciding whether one decision is better than another. This is called - correct answer ✅moral relativism
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obligations are - correct answer ✅discretionary responsibilities. According to the utilitarian approach, stakeholders who have a legal or moral claim on company resources have - correct answer ✅legitimacy The principle which argues that wrongs should be compensated in proportion to the offense suffered is called - correct answer ✅compensatory justice. The growing health consciousness is an example of a political-legal force. - correct answer ✅False According to Michael Porter, the weaker each of the competitive forces, the more limited companies are in their ability to raise prices and earn greater profits. - correct answer ✅False
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An industry matrix summarizes the key success factors within a particular industry. - correct answer ✅True Business intelligence is one of the fastest growing fields within strategic management. - correct answer ✅True A corporation uses environmental scanning to avoid strategic surprise. - correct answer ✅True Extrapolation rests on the assumption that the world is relatively dynamic and changes quickly in the short run. - correct answer ✅False A buyer may be powerful when changing suppliers costs a great deal. - correct answer ✅False
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The corporation's task environment - correct answer ✅includes those elements or groups within an organization's industry. An industry dominated by a few large firms, all of which struggle with product differentiation, is known as - correct answer ✅consolidated. In addition to Porter's Five Forces, another force added in the text is - correct answer ✅other stakeholders.
