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MGT603 Strategic Management Solved MCQs from Book by David (chap 7b)

Multiple Choice
The Nature of Strategy Implementation

1. Which of the following skills is most important for successful strategy implementation?
a. Conceptual
b. Motivating
c. Integrative
d. Analytical
e. Planning
Ans: b

133. Strategy formulation
a. is managing forces during the action.
b. focuses on effectiveness.
c. is primarily an operational process.
d. requires coordination among many people.
e. all of the above.
Ans: b

134. Which of these is true about strategy implementation?
a. It is positioning forces before the action.
b. It focuses on effectiveness.
c. It is primarily an operational process.
d. It is primarily an intellectual process.
e. All of these.
Ans: d

135. On what does strategy implementation focus?
a. Effectiveness
b. Intellectual skills
c. Efficiency
d. Coordination among a few people
e. All of these
Ans: c

136. Strategy implementation is primarily a(n) __________ process.
a. intellectual
b. operational
c. analytical
d. intuitive
e. top-management
Ans: b

Annual Objectives
137. How are objectives in the areas of profitability, growth and market share commonly established?
a. Business segment
b. Geographic location
c. Customer groups
d. Product
e. All of the above
Ans: e

138. All of the following are tasks of strategy implementation except
a. establishing long-term objectives.
b. establishing annual objectives.
c. establishing policies.
d. allocating resources.
Ans: a

139. Establishing objectives is a
a. top-level activity.
b. centralized activity.
c. decentralized activity.
d. centralized-decentralized activity.
Ans: c

140. Considerable time and effort should be devoted to assuring objectives are well conceived because they represent the basis for
a. monitoring processes.
b. establishing divisional priorities.
c. allocating resources.
d. all of the above.
Ans: d

141. Because annual objectives __________________, they are important for strategy implementation.
a. represent the basis for allocating resources
b. are a primary mechanism for evaluating managers
c. help establish organizational, divisional and departmental strategies
d. All of these
e. None of these
Ans: d

142. Which of the following is not true about objectives?
a. They should be communicated throughout the organization.
b. They should have an appropriate time dimension.
c. They should incorporate policies.
d. They should be measurable.
Ans: c

143. Which of the following terms should be avoided when writing objective statements?
a. Maximize
b. Minimize
c. As soon as possible
d. Adequate
e. All of the above
Ans: e

144. Which of these would not be a good objective statement?
a. Increase production of product A by 15 percent yearly
b. Reduce overhead costs 2 percent yearly
c. Increase the number of customers yearly by 50
d. Increase inventory sufficient to meet yearly increases in demand
e. All of the above are good objective statements
Ans: d

145. What should annual objectives be?
a. As specific as possible
b. As general as possible
c. Tied into short-term profits
d. Similar to long-term objectives
Ans: a

146. A(n) __________ would not be considered a policy.
a. rule
b. form
c. milestone
d. administrative practice
e. method
Ans: c

147. Policies are not necessary to
a. encourage.
b. limit.
c. evaluate.
d. guide.
e. support.
Ans: c

148. The term policy does not incorporate the term
a. objective.
b. procedure.
c. dorm.
d. constraint.
e. method.
Ans: a

149. What are guidelines, methods, procedures, rules, forms and administrative practices known as?
a. Long-term objectives
b. Policies
c. Annual objectives
d. Strategies
e. Goals
Ans: b

150. __________ policies apply throughout an organization.
a. Corporate
b. Divisional
c. Departmental
d. Financial
Ans: a

151. Which of the following could be a marketing policy?
a. Offer management development seminars
b. Raise the dividend payout yearly
c. Monitor process improvements weekly
d. Offer a limited warranty
e. Issue bonds
Ans: d

152. Which of the following issues may not require a management policy?
a. To establish a high- or low-safety stock of inventory
b. To encourage moonlighting
c. To offer numerous or few employee benefits
d. To discourage insider trading
e. To promote from within to or to hire from the outside
Ans: b

 Resource Allocation

153. ____________ is a central management activity that allows for strategy execution.
a. Policy-making
b. Goal-setting
c. Establishing annual objectives
d. Resource allocation
e. Conflict
Ans: d

154. All organizations have what four types of resources?
a. Buildings, money, human and goodwill
b. Human, computers, boards of directors and physical
c. Financial, physical, human and technological
d. Accounting, marketing, management and financial
Ans: c

155. Which of the following are not resources that can be used by an organization to achieve desired objectives?
a. Financial resources
b. Natural resources
c. Technological resources
d. Physical resources
Ans: b

156. ________________ is not a major factor that commonly prohibits effective resource allocation.
a. Underprotection of resources
b. Company politics
c. Vague strategy targets
d. Reluctance to take risks
Ans: a

Managing Conflict

157. A disagreement between two or more parties on one or more issues is called a(n)
a. integrated solution.
b. conflict.
c. compromise.
d. ­­­diffusion.
e. avoidance.
Ans: b

158. Conflict in an organization is
a. always bad.
b. always good.
c. sometimes good and sometimes bad.
d. a sign of bankruptcy.
e. avoidable.
Ans: c

159. What are three categories of approaches for managing and resolving conflict?
a. Avoidance, diffusion and confrontation
b. Avoidance, payoff and diffusion
c. Confrontation, ignorance and objectivity
d. Buy, sell and hold
e. There are no good ways to manage conflict
Ans: a

160. Which of the following is not a category of approaches for minimizing and resolving conflict?
a. Consistency
b. Avoidance
c. Confrontation
d. Diffusion
Ans: a

161. Physically separating the conflicting individuals (groups) represents the __________ conflict management/resolution approach.
a. consistency
b. diffusion
c. infusion
d. avoidance
e. confrontation
Ans: d

162. Holding a meeting at which conflicting parties present their views and work through their differences represents a(n) __________ approach to conflict management.
a. infusion
b. compromise
c. diffusion
d. avoidance
e. confrontation
Ans: e

163. What strategy includes playing down the differences between conflicting parties while accenting their similarities and common interests, or compromising so that there is neither a clear winner nor loser?
a. Avoidance
b. Diffusion
c. Confrontation
d. Infusion
e. None of the above
Ans: b

164. Which of the following statements is false?
a. Conflict is unavoidable in large organizations.
b. Avoiding conflict is an approach for minimizing and resolving conflict.
c. Conflict can have positive consequences in all organizations.
d. Conflict is avoidable in small organizations.
e. One can defuse conflict by playing it down.
Ans: d

165. Why do changes in company strategy often require changes in the way an organization is structured?
a. Structure dictates how goals and objectives will be established
b. Structure dictates authority over projects
c. Structure dictates how resources will be obtained
d. Structure dictates strategy
Ans: a


Matching Structure with Strategy

166. What type of organizational structure do most small businesses follow?
a. Divisional structure by product
b. Functional structure
c. Divisional structure by customer
d. Matrix structure
e. Process type structure
Ans: b

167. Medium-sized firms tend to use a __________ structure.
a. divisional
b. matrix
c. SBU
d. functional
e. process
Ans: a

168. Which of the following statements is false?
a. Small firms tend to be functionally structured.
b. Small firms tend to be centralized.
c. Medium-sized firms tend to be divisionally structured.
d. Medium-sized firms tend to be decentralized.
e. Large firms that use an SBU structure often violate the unity-of-command principle.
Ans: e

169. For a given strategy or type of organization, ____________ optimal organizational design or structure.
a. matrix structure is the
b. functional structure is the
c. division structure is the
d. SBU structure is the
e. there is no one
Ans: e

170. What is the major disadvantage of a functional structure?
a. It forces accountability to the top
b. It enhances career development opportunities
c. It is often characterized by high employee morale
d. All of the above
Ans: a

171. __________ is not one of the basic ways a divisional structure can be organized.
a. By geographic area
b. By product or service
c. By customer
d. By process
e. By cost
Ans: e

172. Which organizational structure is the most commonly used in the United States?
a. Decentralized
b. Divisional
c. Functional
d. Strategic business unit
e. Matrix
Ans: c

173. A _______________ structure is the most simple and inexpensive.
a. departmental
b. Strategic business unit
c. functional
d. decentralized
e. process
Ans: c

174. Accountability is clearest in the ____________ structure.
a. matrix
b. divisional
c. functional
d. centralized
e. unorganized
Ans: b

175. Which of these is an advantage of a divisional organizational structure?
a. Clear efficiency
b. Inexpensive to implement
c. Career development opportunities for managers
d. Simplicity
e. Functionality
Ans: c

176. A divisional structure by product form of organization is most effective when
a. special emphasis needs to be placed on specific customers.
b. an organization offers many products.
c. different marketing approaches are required for various products.
d. All of the above
Ans: d

177. A divisional structure by geographic area is most appropriate when
a. organizations have similar branch facilities located in widely dispersed areas.
b. an organization offers only a limited number of products or services.
c. strict control and attention to product lines are needed.
d. an organization has many skilled managers.
e. the firm serves one geographic area.
Ans: a

178. A major disadvantage of a __________ structure is the role of the group vice president being ambiguous.
a. functional
b. divisional
c. strategic business unit (SBU)
d. matrix
e. process
Ans: c

179. When a few major customers are of paramount importance and many different services are provided to these customers, the best divisional structure is
a. by geographic area.
b. by customer.
c. by product.
d. by process.
e. by cost.
Ans: b

180. Which is the most costly type of structure?
a. Departmental
b. Divisional
c. Functional
d. Centralized
e. SBU
Ans: e

181. A bussing company that organizes activities around customer groups such as colleges, secondary schools and private schools is an example of which type of structure?
a. Divisional
b. Centralized
c. Strategic business unit
d. Matrix
e. Customer design
Ans: a

182. Which of the following characteristics does not contribute to the overall complexity of a matrix structure?
a. Dual lines of budget authority
b. Violation of the unity-of-command principle
c. Extensive delegation of authority
d. Shared authority
e. Synergy
Ans: c

183. __________ is the most complex structure.
a. Divisional
b. SBU
c. Matrix
d. Functional
e. Geographic
Ans: c


Restructuring, Reengineering, and E-Engineering

184. Restructuring is also referred to as
a. starting over.
b. delayering.
c. diversifying.
d. job security.
e. integrating.
Ans: b

185. ________________ is concerned primarily with shareholder well-being rather than employee well-being.
a. Benchmarking
b. Reengineering
c. Product redesign
d. Process management
e. Restructuring
Ans: e

186. All of these except ________________ are known as restructuring.
a. process management
b. downsizing
c. right-sizing
d. delayering
e. benchmarking
Ans: a

187. ____________ involves reconfiguring or redesigning work, jobs and processes for the purpose of improving costs, quality, service and speed.
a. Restructuring
b. Downsizing
c. Reengineering
d. Delayering
e. Benchmarking
Ans: c

188. Which of these involves comparing a firm against the best firms in the industry on a wide variety of performance-related criteria?
a. Restructuring
b. Process redesign
c. Reengineering
d. Delayering
e. Benchmarking
Ans: e

189. The primary benefit sought from restructuring is
a. employee involvement.
b. cost reduction.
c. increased morale.
d. increased number of hierarchical levels in the organization.
Ans: b

190. What percent of employees say they want nothing to do with management, i.e., sentiment against joining management ranks?
a. 20
b. 39
c. 48
d. 80
e. 65
Ans: d

191. Which of these is not a cornerstone of reengineering?
a. Decentralization
b. Reciprocal interdependence
c. Information sharing
d. Delayering
Ans: d


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