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CHAPTER 08
STRATEGY FORMULATION: FUNCTIONAL STRATEGY AND STRATEGIC CHOICE
True/False
1.
A core competency is a skill that a corporation can do exceedingly well.
Answer: T
Insourcing is purchasing from someone else a product or service that has been previously
provided internally.
Answer: F

(p.165)

2.

(p.166)

3.

Outsourcing might lead to companies being locked into long-term contracts with outside suppliers
that are no longer competitive.
(p.167)
Answer: T
4.
A product strategy deals with pricing, selling, and distributing a product.
Answer: F
A financial strategy examines the financial implications of corporate and business-level strategic
options and identifies the best financial course of action.
Answer: T

(p.168)

5.

An operations strategy determines how and where a product or service is to be manufactured, and
the level of vertical integration in the product process.
Answer: T

(p.169)

6.

(p.171)

7.
The continuous improvement system was developed in China.
Answer: F

(p.172)

8.
The importance of sole sourcing was supported by Michael Porter.
Answer: F

(p.174)

9.
Logistics strategy deals with the flow of products into and out of the manufacturing process.
Answer: T

(p.174)

10.

The follow-the-moon management philosophy allows project team members living in one country
to pass their work to team members in another country in which the work day is just beginning.
(p.176)
Answer: F
11.

Corporate scenarios are pro forma balance sheets and income statements that forecast the effect
each alternative strategy and its various programs will likely have on division and corporate return
on investment.
(p.178)
Answer: T
12.
The first step in developing a corporate scenario is to develop common-size financial statements.
Answer: F
The third step in developing a corporate scenario is to construct detailed pro forma financial
statements for each strategic alternative.
Answer: T

(p.178)

13.

Risk is composed not only of the probability that the strategy will be effective, but also of the
amount of assets the corporation must allocate to that strategy and the length of time the assets
will be unavailable for other uses.
Answer: T

(p.179)

14.

195

(p.180)

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15.
Using a figurate options approach, when the future is highly uncertain, its pays to have a broad
range of options open.
Answer: F

(p.181)

16.
Top management can propose a political strategy to influence its key stakeholders.
Answer: T

(p.181)

17.
If the strategy is incompatible with the corporate culture, the likelihood of its success is high.
Answer: F

(p.182)

18.

In evaluating a strategic alternative, decision makers can decide to ignore the alternatives
incompatibility with organizational culture and manage around the culture.
Answer: T

(p.182)

19.
Strategic volition is the evaluation of alternative strategies and selection of the best alternative.
Answer: F

(p.183)

20.
One criteria in strategic alternative evaluation is mutual exclusivity.
Answer: T

(p.184)

Multiple Choice
21.
Which strategy is developed to pull together the various activities and competencies of each
department so that corporate and business unit performance improves?
a.
b.
c.
d.
e.
22.

23.

business strategy
competitive strategy
generic strategy
enterprise strategy
functional strategy

Functional strategy and strategic choice is a part of _____ in the strategy management model.
a.
b.
c.
d.
e.

b.
c.
d.
e.

(p.166)

It must be something that can be used to develop new products or enter new
markets.
It must be a capability held throughout the organization.
It must be a resource that cannot be purchased from someone else.
It must be measurable.
It must be goal-driven.

24.
To be considered a distinctive competency, a competency must meet certain tests. Which of the
following is NOT one of these tests?
a.
b.
c.

(p.164)

strategy formulation
environmental scanning
strategy implementation
evaluation and control
strategy manipulation

To be considered a distinctive competency, a competency must meet certain tests. One of


these is:
a.

(p.165)

It must be unique and superior to competitor capabilities.


It must be a capability held throughout the organization.
It must be something that can be used to develop new products.

196

(p.165)

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d.
e.
25.

One core competency of Avon Products noted in the text was its
a.
b.
c.
d.
e.

26.

28.

29.

30.

31.

(p.166)

vertical integration.
horizontal integration.
transaction costing.
outsourcing.
the hokey pokey.

The first functional areas to be heavily outsourced were


a.
b.
c.
d.
e.

(p.166)

an original copying patent.


a worldwide distribution system.
an alliance with another business.
the acquisition of experience.
an inheritance from a benefactor.

Purchasing a product or service from an outside contractor is called


a.
b.
c.
d.
e.

(p.166)

extendibility.
competitor unique.
customer value.
price sensitivity.
market credibility.

In the text, Xerox was founded on the basis of


a.
b.
c.
d.
e.

(p.166)

It may be shared with another business unit.


It may be an asset endowment coming from the founding of the company.
It may be imitated from the leading firms in the industry.
It may be acquired from someone else.
It may be carefully built and accumulated over time within the company.

In testing for a distinctive competency, the characteristic that something could be used to develop
new products/services or enter new markets refers to
a.
b.
c.
d.
e.

(p.165)

expertise in financial leveraging.


expertise in door-to-door selling.
expertise in providing facials to potential clients.
expertise in training salespeople.
expertise in providing benefits to its employees.

Which one of the following is NOT a way a corporation can gain access to a distinctive
competency?
a.
b.
c.
d.
e.

27.

It must make a disproportionate contribution to customer-perceived value.


It must be something that can be used to enter new markets.

(p.167)

manufacturing and marketing.


customer service and sales.
finance and manufacturing.
R&D and customer service.
management services and information systems.

A study of 30 firms revealed that outsourcing can lead to a _____ percent reduction in costs.

197

(p.166)

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a.
b.
c.
d.
e.
32.

A study of 30 firms revealed that outsourcing can lead to a _____ percent increase in capacity and
quality.
(p.166)
a.
b.
c.
d.
e.

33.

36.

37.

c.

(p.169)

marketing
functional
operations
financial
human resource management

Which of the following is NOT a typical marketing functional strategy?


a.
b.

(p.166)

Core competencies were identified.


Short-term benefits dominated decision making.
Manufacturing departments and their vendors dominated the decision process.
Vendors were prequalified based on their total capabilities.
Costs of making the product were contrasted with costs of purchasing the product.

The pricing, selling, and distributing of a product is referred to as a(n) _____ strategy.
a.
b.
c.
d.
e.

(p.167)

Illinois Power Company.


Motorola.
Coca Cola.
Mattel.
Nortel Networks.

Which of the following was a characteristic of firms with unsuccessful outsourcing experience?
a.
b.
c.
d.
e.

(p.162)

are not key to the company's distinctive competence.


are very expensive.
provide the company competitive advantage.
are provided by an important supplier.
are not very expensive.

According to the text, one company that has utilized outsourcing and sold its factory in Ireland to
Celestica, Inc. is
a.
b.
c.
d.
e.

35.

5
9
15
20
30

The key to outsourcing is to purchase from the outside only those activities that
a.
b.
c.
d.
e.

34.

5
9
15
20
30

Develop new products for new markets.


Capture a larger share of an existing market for current products through market
penetration.
Develop new markets for current products.

198

(p.169)

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d.
e.
38.

Which of the following is an example of a marketing functional strategy?


a.
b.
c.
d.
e.

39.

41.

42.

43.

(p.169)

market development.
push strategy.
product development.
pull strategy.
skimming the cream.

Using a successful brand name to market other products is referred to as


a.
b.
c.
d.
e.

(p.169)

market development.
push strategy.
product development.
pull strategy.
skimming the cream.

The type of marketing strategy in which a company develops new products for new or existing
markets is called
a.
b.
c.
d.
e.

(p.169)

Nike.
Pepsi.
Proctor and Gamble.
Axion.
Motorola.

The type of marketing strategy in which a company captures a larger share of an existing market
for current products through market saturation or market penetration or develops new markets for
current products is called
a.
b.
c.
d.
e.

(p.169)

Axion.
Biz.
Euro.
Masquerade.
Treater.

According to the text, a company that has used advertising and promotion to implement a market
saturation/penetration strategy is
a.
b.
c.
d.
e.

(p.169)

To increase profits by 10%.


To maximize shareholders wealth.
To achieve overall cost leadership.
To diversify into related markets.
To manipulate advertising expenditures to emphasize market "pull" over "push."

Proctor and Gamble implemented a presoak detergent in North America known as


a.
b.
c.
d.
e.

40.

Provide the corporation with the appropriate financial structure and funds to
achieve its overall objectives.
Develop new products for existing markets.

demand pricing.
brand pricing.
brand extension.
penetration extension.
demand extension.

199

(p.169)

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44.

When a company spends a large amount of money on trade promotion in order to gain or hold
shelf space in retail outlets, a company is using a _____ strategy.
a.
b.
c.
d.
e.

45.

46.

48.

(p.169)

demand pricing
competitive pricing
skim pricing
penetration pricing
loss-leader pricing

Which type of pricing attempts to hasten market development and offers the pioneer the
opportunity to utilize the experience curve to gain market share and dominate the industry?
a.
b.
c.
d.
e.

(p.169)

pull
push
lengthening
knot
hold

Which type of pricing takes advantage of the demand curve while the product is still novel and
competitors are few?
a.
b.
c.
d.
e.

47.

pull
push
lengthening
knot
hold

When a company uses advertising which pulls the products through the distribution channels, the
company is using a _____ strategy.
a.
b.
c.
d.
e.

(p.169)

(p.169)

demand pricing
competitive pricing
skim pricing
penetration pricing
loss-leader pricing

The examination of financial implications of corporate and business-level strategic options and the
identification of the best financial course of action is known as a _____ strategy.
(p.169)
a.
b.
c.
d.
e.

marketing
functional
operations
financial
human resource management

200

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49.

Which of the following is NOT a goal of financial strategies?


a.
b.
c.
d.
e.

50.

51.

53.

54.

(p.170)

leveraged bargains.
management buyouts.
management bargains.
coordinated buyouts.
debt buyouts.

A common stock tied to one portion of a corporations business is known as


a.
b.
c.
d.
e.

(p.170)

tracking stock.
holding stock.
shareholder stock.
tracked stock.
split stock.

All of the following companies were cited in the text as having used tracking stocks as part of
their financial strategy EXCEPT
a.
b.
c.
d.
e.

(p.170))

illegal in most countries.


a good way to build a core competency.
an application of the capital asset pricing model.
the leveraged buyout.
an example of internal financing.

Leveraged buyouts are also referred to as


a.
b.
c.
d.
e.

(p.170)

deterrent to takeover by other firms.


improvement in productivity.
improvement in cash flows.
focus by management on core businesses.
increase in shareholder value.

A popular financial strategy in which a company is acquired in a transaction financed largely by


debt eventually paid off with money generated from the acquired company's operations or by
sale of its assets is
a.
b.
c.
d.
e.

52.

Examine the financial implication of corporate and business level strategic options and
identify the best financial course of action.
Provide the corporation with the appropriate financial structure and funds to achieve its
overall objectives.
Institute a new product development plan to generate profit potential.
Provide competitive advantage through a lower cost of funds and a flexible ability to
raise capital to support a business strategy.
Attempt to maximize the financial value of the firm.

All of the following are benefits for a company to raising its debt levels EXCEPT
a.
b.
c.
d.
e.

(p.170)

AT&T
Motorola.
J.C. Penney.
Staples.
Sprint.

201

(p.170)

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55.

The strategy that deals with product and process innovation and improvement is known as a
_____ strategy.
a.
b.
c.
d.
e.

56.

57.

59.

60.

(p.171)

technological follower.
technological opportunist.
technological leader.
technological manufacturer.
technological entrepreneur.

A company which imitates the products of competitors is referred to as a(n)


a.
b.
c.
d.
e.

(p.171)

pioneer the lowest-cost product design.


innovate in other activities to increase buyer value.
avoid R&D costs through imitation.
create low-cost ways of performing value activities.
be the first firm down the learning curve.

A company which pioneers an innovation is called a(n)


a.
b.
c.
d.
e.

(p.171)

pioneer the lowest-cost product design.


innovate in other activities to increase buyer value.
avoid R&D costs through imitation.
create low-cost ways of performing value activities.
be the first firm down the learning curve.

According to Porter, to achieve a differentiation competitive strategy by following the functional


strategy of technological leadership a business unit should
a.
b.
c.
d.
e.

58.

marketing
R&D
operations
financial
human resource management

According to Porter, to achieve a cost advantage by following the functional strategy of


technological followership a business unit should
a.
b.
c.
d.
e.

(p.170)

(p.171)

technological follower.
technological opportunist.
technological leader.
technological manufacturer.
technological entrepreneur.

According to the text, which athletic shoe manufacturer spends most on research and development
within its industry?
(p.171)
a.
b.
c.
d.
e.

Nike
ASICS
Adidas
Reebok
Converse

202

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61.

If a company wishes to be a technological leader and also maintain a cost advantage, the
appropriate R&D strategy would be
a.
b.
c.
d.
e.

62.

63.

b.
c.
d.
e.
65.

66.

(p.171)

adapt the product or delivery system more closely to buyer


needs by learning from the leaders experience.
value activities by learning from the leaders experience.
avoid R&D costs through imitation.
create low-cost ways of performing value activities.
innovate in other activities to increase buyer value.

When a company determines how and where a product or service is to be manufactured, the level
of vertical integration in the production process, the deployment of physical resources, and
relationships with suppliers, the company is developing its _____ strategy.
a.
b.
c.
d.
e.

(p.171)

lower the cost of the product.


value activities by learning from the leaders experience.
avoid R&D costs through imitation.
create low-cost ways of performing value activities.
innovate in other activities to increase buyer value.

If a company wishes to be a technological follower and also maintain a cost advantage, the
appropriate R&D strategy would be to
a.

(p.171)

the first firm down the learning curve.


value activities by learning from the leaders experience.
pioneer the lowest cost product design.
create low-cost ways of performing value activities.
innovate in other activities to increase buyer value.

If a company wishes to be a technological leader and also pursue a differentiation strategy, the
appropriate R&D strategy would be
a.
b.
c.
d.
e.

64.

lower the cost of the product.


value activities by learning from the leaders experience.
avoid R&D costs through imitation.
create low-cost ways of performing value activities.
innovate in other activities to increase buyer value.

If a company wishes to be a technological follower and also maintain a cost advantage, the
appropriate R&D strategy would be
a.
b.
c.
d.
e.

(p.171)

(p.171)

marketing
R&D
operations
financial
human resource management

Which one of the following is NOT an element of concern for a corporation's operations strategy?
(p.171)
a.
b.
c.
d.
e.

How product development will affect overall cost leadership.


How and where a product or service is to be manufactured.
The relationship between the organization and its supplier.
The level of vertical integration that is incorporated into the process.
The deployment of physical resources within an organization.

203

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204

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67.

Flexible manufacturing system is defined by the text as


a.
b.
c.
d.
e.

68.

69.

71.

72.

(p.171)

Automated Manufacturing Technology.


Advanced Manufacturing Technology.
Asymptotic Manufacturing Technology.
Advanced Monotone Technology.
Automated Manufacturing Technician.

Continuous improvement is an operations concept developed in


a.
b.
c.
d.
e.

(p.172)

the United States.


Sweden.
Japan.
Germany.
Canada.

The Personal Pair system was developed by


a.
b.
c.
d.
e.

(p.172)

dedicated transfer lines.


connected line batch flow.
connected job flow.
mass batch lines.
mass job flow.

As it relates to operations, AMT stands for


a.
b.
c.
d.
e.

(p.172)

mass customization.
connected line batch flow.
connected job flow.
mass batch flow.
mass job flow.

When there are highly automated assembly lines making one mass-produced product using little
human labor, this setup is called
a.
b.
c.
d.
e.

70.

one-of-a-kind production using skilled labor.


highly automated assembly lines making one mass-produced product using little human
labor.
parts grouped into manufacturing families to produce a wide variety of
mass-produced items.
a process utilizing the just-in-time (JIT) method of manufacturing.
standardization of components with each machine functioning like a job shop, but is
positioned in the same order as the parts are processed.

When components are standardized and each machine functions like a job shop but is positioned
in the same order as the parts are processed, this setup is known as
a.
b.
c.
d.
e.

(p.172)

Mattel.
Lands End.
Old Navy.
Levi.
Gap.

205

(p.173)

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73.

The manufacturing strategy which requires that people, processes, units, and technology
reconfigure themselves to give customers exactly what they want, when they want it is called
a.
b.
c.
d.
e.

74.

75.

77.

78.

(p.174))

centralization.
downsizing.
logistical partnerships.
computerization.
containerized shipping.

The flow of products into and out of manufacturing is a factor when developing
a _____ strategy.
a.
b.
c.
d.
e.

(p.174)

sole sourcing.
multiple sourcing.
just-in-time sourcing.
backup sourcing.
parallel sourcing.

During the 1990s, two trends were evident in logistics: outsourcing and
a.
b.
c.
d.
e.

(p.173)

sole sourcing.
multiple sourcing.
just-in-time sourcing.
backup sourcing.
parallel sourcing.

The purchasing strategy in which two suppliers are the sole suppliers of different parts, but are
also the backup suppliers for each other's parts is
a.
b.
c.
d.
e.

(p.173)

operations
purchasing
R&D
financial
human resource management

The purchasing strategy in which the purchasing company orders a particular part from several
vendors is
a.
b.
c.
d.
e.

76.

continuous improvement.
mass production.
job shop.
mass customization.
just-in-time.

When a company deals with obtaining raw materials, parts, and supplies needed to perform the
operations function, the company is developing its _____ strategy.
a.
b.
c.
d.
e.

(p.173)

marketing
logistics
operations
financial
human resource management

206

(p.174)

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79.

Which of the following is NOT an element of concern for strategy focused on human resources?
a.
b.
c.
d.
e.

80.

81.

83.

(p.177)

follow the leader


hit another home run
arms race
do everything
losing hand

A company which has invested so heavily in a particular strategy that it will not consider a change
in this strategy even if it is not successful, would be an example of which strategy to avoid?
(p.177)
a.
b.
c.
d.
e.

84.

(p.176)

computerizing accounting.
automating customer service.
forming closer relationships with customers and suppliers through intranets.
replacing Fortran with Cobol in order to boost productivity.
replacing mainframe computers with robots.

A company which has previously found great success pioneering an extremely successful product
presently trying to turn another "long-shot" into a like success would be an example of which
strategy to avoid?
a.
b.
c.
d.
e.

(p.176)

less than 1%.


10%.
43%.
76%.
over 98%.

A recent trend in information systems strategy is


a.
b.
c.
d.
e.

82.

Desired level of debt versus equity.


Needs to address the issue of hiring low-skilled workers at low pay or highly-skilled
workers at relatively higher pay.
Whether the organization chooses to promote from within or rely on outside recruitment.
Whether workers should be strictly supervised or allowed to work in self-managed work
teams.
How to establish the link between pay and benefits to achieve corporate and business
strategies.

According to the text, the current percentage of the total workforce of U.S. Fortune 1000 firms
that represents the number of temporary or part-time workers teams is
a.
b.
c.
d.
e.

(p.175)

follow the leader


hit another home run
arms race
do everything
losing hand

A company which keeps up by imitating a leading company's strategy is an example of which


strategy to avoid?
a.
b.
c.
d.
e.

follow the leader


hit another home run
arms race
do everything
losing hand

207

(p.177)

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85.
A company which enters into a spirited battle for market share by cutting prices and offering
special deals would be an example of which strategy to avoid?
a.
b.
c.
d.
e.
86.

87.

89.

90.

(p.178)

develop a common-sized financial statement.


construct detailed pro forma financial statements.
decide upon how much risk management is willing to accept.
analyze the societal environment.
use industry scenarios to develop a set of assumptions about the task environment.

Which one of the following is NOT one of the factors used to evaluate the attractiveness of a
particular strategic alternative towards risk?
a.
b.
c.
d.
e.

(p.178)

decision trees.
S.W.O.T. analysis.
industry scenarios.
corporate scenarios.
Capital Asset Pricing Model.

The first step in constructing a corporate scenario is to


a.
b.
c.
d.
e.

(p.178)

the prospects of ensuring profitable return on investment.


the specific strategic factors developed in the S.W.O.T. analysis.
defining the competitive environment in which the firm is competing.
the future long-term prospects of the industry.
governmental regulations and requirements placed on the industry.

The technique used to help strategic managers choose among alternative choices by defining the
task environment, developing a set of various forecasts, and using pro forma financial statements
is called
a.
b.
c.
d.
e.

(p.177)

follow the leader


hit another home run
arms race
do everything
losing hand

When considering acceptable alternative strategies, the most important criterion is the ability of
the proposed strategy to deal with
a.
b.
c.
d.
e.

88.

follow the leader


hit another home run
arms race
do everything
losing hand

A company which invests in many interesting opportunities without deciding which of them
should have priority would be an example of which strategy to avoid?
a.
b.
c.
d.
e.

(p.177)

The length of time the asset will be unavailable for other uses.
The probability that the strategy will be effective.
The probability that the strategy will result in substantial growth.
The amount of assets the corporation must allocate to that strategy.
The ability to quantify the amount of risk using a method of financial analysis.

208

(p.180)

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91.

According to the text, which one of the following is NOT one of the reasons why innovations
seem to occur more often in small firms rather than in large, established corporations?
a.
b.
c.
d.
e.

92.

d.
e.
93.

95.

(p.181)

Strategies may be based on a firm's culture.


A firm's culture is a powerful element in the success of any strategy.
Once a corporate culture is established it is detrimental to alter it.
Strategy changes probably won't be successful if they are contrary to a firm's culture.
If a strategy is contrary to the culture, it may be advisable to drop the strategy.

If there is little fit between a strategic alternative under study and the corporate culture, which one
of the following is NOT one of the considerations that must be taken into account?
(p.182)
a.
b.
c.
d.
e.

96.

(p.181)

cooperative strategy.
political strategy.
competitive strategy.
marketing strategy.
profit strategy.

Which of the following is NOT one reason why the corporation's culture is so important when
considering a strategy change?
a.
b.
c.
d.
e.

(p.181)

Which stakeholder group should be represented on the board of directors?


Which stakeholders are most crucial for corporate success?
How much of what the stakeholders want are they likely to get under a certain
alternative?
What are the stakeholders likely to do if they don't get what they want?
What is the probability that the stakeholders will follow through on their demand?

The type of strategy used to influence a corporation's key stakeholders in order to increase their
support of corporate activities is
a.
b.
c.
d.
e.

94.

An entrepreneur in a small firm is more willing to accept greater risk than would a larger
firm.
Small firms are completely ignorant of risk management.
The greater the assets involved and the longer they are tied up, the more likely top
management in large firms is to demand a high probability of success.
Companies operating in global industries must deal with a greater amount of risk than
firms operating only in one country.
If the corporation's stock is widely held as in the case of large firms and experiences
stock price declines due to some external assessment, it places the firm in jeopardy of
being acquired.

Which one of the following is NOT one of the questions that management should raise in their
attempt to assess the importance to the corporation of stakeholders' concerns?
a.
b.
c.

(p.180)

Take a chance on ignoring the culture by implementing the strategic alternative.


Manage around the culture.
Try to change the culture to fit the strategy.
Change the strategy to fit the culture.
Ignore the corporate culture.

Even the most attractive strategic alternative may not be implemented because
a.
b.

it may not meet the exacting financial ratios that management has declared necessary.
the firm may fear head-to-head competition with the major players in the industry.

209

(p.182)

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c.
d.
e.
97.

According to the text, unanimous agreement is not the best way to determine the merits of a
proposed alternative strategy. To avoid this consensus trap, which technique assigns a group or
individual to identify potential pitfalls and problems with a proposed alternative strategy in a
formal presentation?
a.
b.
c.
d.
e.

98.

100.

101.

e.

(p.184)

Corporate policies define the ground rules for implementation.


Corporate policies assure the division's compliance with corporate strategy.
Corporate policies serve to align corporate activities in the new strategic direction.
Corporate policies need to be registered with the SEC.
Corporate policies can restrict top management's strategic options in the future.

One way to manage corporate culture is to


a.
b.
c.
d.

(p.184)

devils advocate.
strategy shadow committee.
sales presentation.
board of directors.
scenario constructionists.

Which one of the following is NOT one of the reasons why once a strategy has been selected, a
change in policy quickly should follow?
a.
b.
c.
d.
e.

(p.184)

devil's advocate
Sloan's judgment
sales presentation
dialectical inquiry
scenario construction

A committee composed of employees at least two to three echelons below the executive level
strategy committee and whose duty is to propose what the company should do differently is
referred to as
a.
b.
c.
d.
e.

(p.183)

devil's advocate
Sloan's judgment
sales presentation
dialectical inquiry
scenario construction

According to the text, unanimous agreement is NOT the best way to determine the merits of a
proposed alternative strategy. To avoid this consensus trap, which technique involves presenting
two conflicting views (the thesis and the antithesis) presented in a debate format?
a.
b.
c.
d.
e.

99.

it may be contrary to the needs and desires of important top managers.


the organization may fear the unknown.
of the fear of grand failure.

(p.184)

formulate strategies that contradict the culture.


formulate only those strategies that are in complete agreement with the culture.
involve only top management in the formulation of strategy.
use consultants to impress employees with how poorly the company has been run in the
past.
follow changes in strategy with changes in policies.

210