Strategic Management
Chapter Exam Questions
Course Introduction
Strategic Management is a comprehensive course that explores the formulation, implementation, and evaluation of strategies that enable organizations to achieve long-term objectives in a competitive environment. Through the analysis of real-world case studies and theoretical frameworks, students learn to assess an organizations internal and external environments, identify strategic issues, and develop actionable plans. The course emphasizes critical thinking, decision-making, and leadership skills needed to manage dynamic business challenges and drive sustainable success in diverse industries.
Recommended Textbook
Essentials of Management 9th Edition by Andrew J. DuBrin
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Chapter 1: The Managers Job
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Q1) Interpersonal skills are important for top-level managers as well as team leaders.
A)True
B)False Answer: True
Q2) C-level manager is a recent term used to describe a top-level manager.
A)True
B)False Answer: True
Q3) According to Mintzberg, management is a practice, rather than a science or a profession because
A) science is about the development of systematic knowledge through research.
B) management follows an ethical code.
C) the major purpose of management is to help get things done.
D) both a & c
Answer: D
Q4) One purpose of controlling is to check up on performance.
A)True
B)False Answer: True
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Chapter 2: International Management and Cultural Diversity
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Q1) A network group is composed of employees throughout the company who affiliate on the basis of group characteristics such as race, ethnicity, gender, sexual orientation, or physical ability status.
A)True
B)False Answer: True
Q2) A problem tied to global outsourcing is that American employers can offer low wages to domestic employees backed by the threat that their work could be sent offshore.
A)True
B)False Answer: True
Q3) A major force behind global outsourcing is the pressure discount retailers such as Wal-Mart exert on manufacturers to keep their prices low.
A)True
B)False Answer: True
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Chapter 3: Ethics and Social Responsibility
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Sample Questions
Q1) The ethical dilemma of choosing between two rights refers to
A) choosing between the lesser of two evils.
B) deciding which of two employee rights is the most important.
C) deciding to offer a bribe or lose out on an important opportunity.
D) choosing between the two types of sexual harassment.
Answer: A
Q2) Corporate social responsibility has three components according to professors Basu and Palazzo:
A) cognitive, linguistic, and cognitive
B) ethical, social, authoritative.
C) reflective, analytic, corporative
D) conceptual, sensing, assertive
Answer: A
Q3) Economically viable refers to such financial benefits as attaining reduced costs from energy savings, gaining governmental subsidies, and avoiding penalties..
A)True
B)False
Answer: True
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Chapter 4: Essentials of Planning
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Q1) Using the planning model, how would you plan an event for 500 people.
Q2) Suppose that Starbucks opens a nation-wide chain of carwashes, called Starbucks Car Wash. After two years, the executive team sells of the car washes, and invests the cash back into building more Starbucks stores. The strategy illustrated is referred to as A) high speed.
B) sticking to core competencies.
C) product diversification.
D) a strategic alliance.
Q3) Firms must constantly change in order to be aligned with their key environments. A)True B)False
Q4) Save-A-Lot has become one of the most successful grocery chains by serving the poor and offering low prices. This is an example of A) focus strategy.
B) premium pricing.
C) product differentiation
D) cost leadership
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Chapter 5: Problem Solving and Decision Making
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Q1) The purpose of visualization for making better decisions under crisis is to A) rehearse in your mind how you will react to the crisis.
B) think of all the times you have failed in the past.
C) engage in a pleasant fantasy to reduce your stress.
D) imagine how angry your boss will be if your fail.
Q2) A powerful approach to developing an innovative organization is to systematically gather ideas from people inside and outside the firm.
A)True B)False
Q3) Describe what actions an organization can take to encourage employees to think more creatively.
Q4) A well-planned and highly structured organization reduces the number of nonprogrammed decisions by formulating policies. A)True B)False
Q5) Conflict and tension that put people on edge can also foster creativity. A)True B)False
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Chapter 6: Quantitative Techniques for Planning and Decision Making
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Q1) Break-even analysis assumes that unit costs vary in relation to sales volume. A)True
B)False
Q2) The overconfidence trap in making forecasts leads a person to overestimate the accuracy of his or her forecasts.
A)True
B)False
Q3) Suppose a small-business owner wants to repaint the walls inside the office. The office manager suggests buying a premium brand of paint because such paint stays fresher looking longer and does not chip as readily. What would a data-driven manager say?
Q4) Maintaining the right level of inventory is a major factor influencing the financial health of an organization. A)True B)False
Q5) The prudence trap in making forecasts leads a person to make overly optimistic forecast so as not to appear too conservative. A)True B)False
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Chapter 7: Job Design and Work Schedules
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Q1) An emerging trend is to for companies to hire people to work at various activities rather than fill a specific job slot.
A)True
B)False
Q2) Control over method in job enrichment refers to a worker being permitted to determine when he or she will perform a particular task.
A)True
B)False
Q3) In the job characteristics model, a significant task is one requiring an above-average degree of mental ability.
A)True
B)False
Q4) Which of the following is the least effective method for preventing cumulative trauma disorder?
A) use the computer mouse whenever possible
B) rotate jobs to reduce repetitive hand and body movements
C) install equipment that minimizes awkward hand and body movements
D) use voice recognition systems as a substitute for keyboarding
Q5) Describe telecommuting, along with some of its advantages and disadvantages.
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Chapter 8: Organization Structure, Culture, and Change
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Q1) The radical redesign of work to achieve substantial improvements in performance is called:
A) reengineering
B) job design
C) downsizing
D) resistance to change
Q2) People resist change because they fear an unfavorable outcome, such as less money or personal inconvenience.
A)True
B)False
Q3) A bureaucracy is characterized by a hierarchy of authority.
A)True
B)False
Q4) The foundation of an organizational culture is the organization's
A) relative diversity.
B) values.
C) resource allocation and rewards.
D) degree of change.
Q5) Identify and describe the most common forms of departmentalization. Give company examples where you can.
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Chapter 9: Staffing and Human Resource Management
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Q1) Giving out negative information about a former employee is considered to be legal so long as the person receiving the information has a legitimate interest in receiving the information.
A)True
B)False
Q2) Suppose your job is to establish a performance evaluation system for your company that has 300 employees. Describe the system you would install.
Q3) An example of a knock out question for a flight attendant would be
A) "Would you want a child of yours to be an airplane pilot?"
B) "Are you currently employed?"
C) "Who invented the airplane?"
D) "Are you afraid of flying?"
Q4) E-learning training programs tend to be well structured, and give the learner the opportunity to interact with the training material.
A)True
B)False
Q5) Describe the various ways in which employers recruit, or search, for potential job candidates.
Q6) Describe how a firm can use the organization staffing model.
Page 11
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Chapter 10: Leadership
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Sample Questions
Q1) Situational Leadership II explains that effective leadership depends on two independent behaviors:
A) delegating and empowering
B) trusting and believing
C) supporting and directing.
D) directing and coaching
Q2) Under a policy of open-book management, workers are
A) expected to be totally honest with management.
B) exposed to financial details of the firm.
C) empowered to set their own wage rates.
D) expected to manage the financial aspects of their organizational units.
Q3) Research results associated with empowerment varied with the country and culture.
A)True
B)False
Q4) An important influence tactic for leaders is to guide group members through expressing and demonstrating values that guide behavior.
A)True
B)False
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Chapter 11: Motivation
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Q1) A Gallup Organization poll indicated that the vast majority of workers felt completely engaged in their work, including feeling a full commitment to the employer.
A)True
B)False
Q2) According to recent evidence about employee engagement, most American workers are
A) so engaged in their work they risk becoming alcoholics.
B) usually engaged in their work for the first four hours of the day.
C) so unengaged in their work they are a liability to their employer.
D) not fully engaged in their work.
Q3) Stock options give the people granted the option the opportunity to
A) purchase stock at a later date at a price established now.
B) share directly in the profits of the firm.
C) purchase company stock anytime at a specific discount.
D) purchase stock of any company through online trading.
Q4) One implication of need theory is that people are usually content, provided they have satisfied their needs at the first three levels.
A)True
B)False
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Chapter 12: Communication
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Q1) A characteristic of a learning organization is that it learns from its experiences instead of repeating the same mistakes.
A)True
B)False
Q2) Chance encounters between managers and employees work well as a(n)
A) formal communication channel.
B) informal communication channel.
C) substitute for management by walking around.
D) substitute for a bulletin board.
Q3) Which one of the following is an example of downward communication?
A) open-door policy
B) complaint program
C) town-hall meeting
D) a message from the CEO sent to all employees
Q4) The general purpose of nonverbal communication is to
A) get through to people who have difficulty receiving verbal messages.
B) express the feeling behind a message.
C) control the reactions of the receiver.
D) repeat what was expressed verbally.
Q5) Identify and describe seven communication barriers in the workplace.
Page 14
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Chapter 13: Teams, Groups, and Teamwork
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Q1) Group cohesiveness and commitment begin to develop during the ____ stage of group development.
A) forming
B) storming
C) norming
D) performing
Q2) Trying too hard to be a good team player can retard a person's career because the person may fail to gain individual recognition.
A)True
B)False
Q3) A major reason that NASA sends astronauts to wilderness training is that
A) wilderness training is conducted on a terrain resembling the moon.
B) most astronauts cannot sit still for classroom training.
C) teamwork is critical for accomplishing their mission and survival.
D) most astronauts are naturally loners rather than team players.
Q4) During the performing stage issues concerning interpersonal relations and task assignments are put aside as the group becomes a well-performing unit.
A)True
B)False
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Chapter 14: Information Technology and E-Commerce
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Q1) The main purpose of the dashboard for managers is to indicate when work processes are moving too slowly or too rapidly.
A)True
B)False
Q2) An example of how information technology has enhanced business models would be Cisco Systems being able to sell servers directly over the Internet instead of using dealers.
A)True
B)False
Q3) A major purpose of social networking for business is
A) to establish a means for people to connect to the company's brand.
B) to make new friends.
C) to locate old friends.
D) to form interest groups.
Q4) In the virtual office, employees
A) work without a team leader.
B) complete one task before moving on to another.
C) are all part-time or temporary workers.
D) coordinate their activities although physically separate.
Q5) How has the Internet enhanced globalization?
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Chapter 15: Essentials of Control
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Q1) A caution about cost cutting is that it can lead to A) low morale and lower quality goods and services.
B) the image of a cheap company
C) both a & b
D) increase the cost of supplies
Q2) A cost-effective control system
A) provides a satisfactory return on investment.
B) provides financial penalties for departments that exceed budget.
C) eliminates the need for hiring outside consultants.
D) approaches being totally automated.
Q3) Activity-based costing for a military measure such as cost per tank mile would take into account such costs as research and development times, salaries, deterioration of equipment, and support workers back at the base.
A)True
B)False
Q4) An important part of the balanced scorecard is to provide workers with a complete picture of the organization.
A)True
B)False
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Chapter 16: Managing Ineffective Performers
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Q1) A recommended approach for dealing with difficult people is to submit to most of their demands by granting them concessions.
A)True
B)False
Q2) A core principle of discipline and punishment is for the manager to
A) make clear his or her analysis of the worker's personal weaknesses.
B) focus on the person, not the unsatisfactory performance.
C) focus on unsatisfactory performance, not the person.
D) ignore the first two offenses.
Q3) A consultant observed that an explosive sexual harassment case usually
A) has a domino effect leading to more cases of sexual harassment.
B) encourages other types of deviant behavior on the job.
C) increases productivity temporarily because of the excitement.
D) decreases productivity temporarily because of gossip and distraction.
Q4) Middle manager Demetrius engages in organizational citizenship behavior when he helps an employee from another department who is struggling with understanding a jammed office copier.
A)True
B)False
Q5) Explain why so many employees become substandard performers.
Page 18
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Chapter 17: Enhancing Personal Productivity and Managing
Stress
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Q1) Customer service agent Mary is distracted, a little frantic, and impatient because of the overwhelming amount of information she has to process. It appears that she is experiencing the attention deficit trait.
A)True
B)False
Q2) A major time waster is
A) interruptions from others.
B) telecommuting.
C) the Pareto principle.
D) sending emails.
Q3) Luke, an industrial sales representative, works smarter not harder when he
A) carefully plans his customer visits to reduce travel time.
B) offers kickbacks to major customers.
C) adds five hours to his weekly work schedule.
D) asks his boss for a raise so he can work fewer hours.
Q4) During a period of peak performance, the worker
A) ignores small details about the job.
B) does whatever is necessary to please the boss.
C) acts temporarily like a Type A personality.
D) is totally absorbed in the task.
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