a. reduced trainingb. aggressive recruitment
c. rapidly rising wagesd. increased job creation
ANSWER: a
17. How is the successful implementation of strategy judged?
a. by whether it satisfies top management’s expectations
b. by whether it realizes organizational goals and objectives
c. by whether it engages employees to do their best
d. by whether it meets financial targets and ratios
ANSWER: d
18. Salad-O is a fast food outlet located in a shopping mall that tries to compete with Greens-Away by offering gourmet salad dressings. Which of Porter’s competitive strategies is Salad-O applying?
a. low-cost providerb. broad differentiation
c. market niche with lower costd. market niche with differentiation
ANSWER: b
19. “Our company is committed to honesty and improving society.” What type of statement does this quote describe?
a. attitudeb. policy
c. strategicd. value
ANSWER: d
20. Some organizations drift aimlessly during times of economic turmoil. What might be a concrete reason for an organization to be so unfocused?
a. The organization did not produce a vision statement to unite its employees.
b. The organization did not complete its long-term plan for the next three to five years.
c. The organization did not conduct a succession plan for its older managers.
d. The organization did not build a culture that supported work–life balance.
ANSWER: a
21. What is the process called that formulates organizational goals, objectives, action plans, and the mission statement?
a. formulationb. analysis
c. strategyd. planning
ANSWER: c
22. According to your textbook, what are the three types of corporate strategies?
a. liquidation, bankruptcy, and growthb. mergers, acquisitions, and joint ventures
c. growth, restructuring, and stabilityd. turnaround, bankruptcy, and divestiture
ANSWER: c
23. In order for senior managers to determine who the company’s customers are, where they are located, and what product or service characteristics the customers value, the managers must develop a statement of the fundamental benefits of the products or services being offered in the marketplace. What is this statement known as?
a. value propositionb. vision statement
c. value statementd. vision proposition
ANSWER: a
24. Southwest Airlines has used multiple strategies since its inception in 1974. Why has its current focus on organizational culture been such an effective strategy for the airline?
a. Southwest’s culture is variable and substitutable like the strategies it applies.
b. Southwest’s culture is inspirational so that its employees achieve greater work–life balance.
c. Southwest’s culture is unique, and strategic mimicry by other airlines is not possible.
d. Southwest’s culture is responsible for its low-cost, low-price, no-frills flights strategy.
ANSWER: c
25. Which concept refers to a list that produces the sequential steps required to get the job done?
a. principlesb. procedures
c. programd. policies
ANSWER: b
26. Which of the following is typical of an organization that follows Porter’s best-cost provider strategy?
a. a hamburger served by a waiter on a plate with potato salad
b. a hamburger and fries in a paper bag served by the drive-through operator
c. a hamburger and baked potato placed on a tray and served by the takeout counter clerk
d. a hamburger and baby greens salad in a plastic bubble package bought at the grocery store
ANSWER: a
27. An organization is influenced by a variety of elements from the external environment. On the other hand, which of the following appears to be derived from the internal environment of the organization?
a. technologyb. sociocultural factors
c. HR diversity management policyd. changing demographics
ANSWER: c
28. Rand Solar Technologies Ltd. is planning its future. In the process, the senior leadership team is preparing the organization’s objectives, competitive scopes, and action plans to achieve its goals. What is the leadership team doing?