MGMT 4513 EXAM 1 QUESTIONS & ANSWERS
Which of the following is NOT a role of CEO described by Matt Blumberg?
a. To create and communicate strategy and vision
b. To build a team
c. To make sure the company executes its plan and has cash in bank
d. To maximize the compensation of top executives
d. To maximize the compensation of top executives
Which of the following is NOT a primary function of firm's vision statement?
a. Helps to resolve disputes in resource allocation
b. Informs all stakeholders why the company exists
c. Helps to avoid costly government-imposed fine
d. Motivates employees to give their best work
c. helps to avoid costly government-imposed fine
True or False? To be a good vision statement, it should be short &clear, inspirational,
and product-oriented.
a. True
b. False
False
Which of the following summarizes the difference between a firm's vision and mission?
a. A vision states what a firm wants to accomplish; a mission states how a firm plans to
accomplish this vision.
When applying the five forces model, the first step should ideally be:
d. defining the relevant industry.
, _____ are best described as decreases in cost per unit as output increases.
a. Economies of scale
Which of the following statements about industry analysis is NOT true?
c. Industry analysis is theoretically grounded upon resource-based view.
Value chain analysis consists of systematically analyzing a firm's key activities that for
analysis purposes are categorized into two groups:
a. primary activities and support activities.
Which of the following factors best describes the U.S. automotive industry being
characterized by high entry barriers?
c. Car manufacturers require large-scale production in order to be cost-competitive.
The primary objective of Porter's five forces framework is to:
b. explain and predict the potential profitability of an industry.
Generally, perfectly competitive industries such as paper and steel (commodities) are
deemed to be ________ in profits to more differentiated industries like pharmaceuticals
and cosmetics.
b. inferior
The heirarchy of organizational goals in this order (least to most specific)
Mission statements, vision statements, strategic objectives
Some excellent examples of mission statements are: "To be the happiest place on
earth" (Disney) any "restoring patients to full life" (Medtronic)
False
Organizational goals and objectives should be vague in order to allow changes in
strategy
False
Increasingly larger numbers of women entering the work force since the early 1970s is
an examle of
sociocultural changes
Which of the following is NOT a role of CEO described by Matt Blumberg?
a. To create and communicate strategy and vision
b. To build a team
c. To make sure the company executes its plan and has cash in bank
d. To maximize the compensation of top executives
d. To maximize the compensation of top executives
Which of the following is NOT a primary function of firm's vision statement?
a. Helps to resolve disputes in resource allocation
b. Informs all stakeholders why the company exists
c. Helps to avoid costly government-imposed fine
d. Motivates employees to give their best work
c. helps to avoid costly government-imposed fine
True or False? To be a good vision statement, it should be short &clear, inspirational,
and product-oriented.
a. True
b. False
False
Which of the following summarizes the difference between a firm's vision and mission?
a. A vision states what a firm wants to accomplish; a mission states how a firm plans to
accomplish this vision.
When applying the five forces model, the first step should ideally be:
d. defining the relevant industry.
, _____ are best described as decreases in cost per unit as output increases.
a. Economies of scale
Which of the following statements about industry analysis is NOT true?
c. Industry analysis is theoretically grounded upon resource-based view.
Value chain analysis consists of systematically analyzing a firm's key activities that for
analysis purposes are categorized into two groups:
a. primary activities and support activities.
Which of the following factors best describes the U.S. automotive industry being
characterized by high entry barriers?
c. Car manufacturers require large-scale production in order to be cost-competitive.
The primary objective of Porter's five forces framework is to:
b. explain and predict the potential profitability of an industry.
Generally, perfectly competitive industries such as paper and steel (commodities) are
deemed to be ________ in profits to more differentiated industries like pharmaceuticals
and cosmetics.
b. inferior
The heirarchy of organizational goals in this order (least to most specific)
Mission statements, vision statements, strategic objectives
Some excellent examples of mission statements are: "To be the happiest place on
earth" (Disney) any "restoring patients to full life" (Medtronic)
False
Organizational goals and objectives should be vague in order to allow changes in
strategy
False
Increasingly larger numbers of women entering the work force since the early 1970s is
an examle of
sociocultural changes
