test bank for economics

Outline the five easy steps that can be used to organize a strategic management case analysis.?. Discuss the resources beyond the textbook that might be used to conduct strategic case an

13 According to the text, one of the reasons that case analysis is so enriching as a learning tool is that itdraws on many resources and skills besides what is in the textbook.

23 Three capabilities that can be learned through case analysis are

A the ability to question, ponder, and answer

B the ability to differentiate, speculate, and integrate

C the ability to read, write, and perform mathematical calculations

D the ability to be cruel, competitive and cut-throat

24 Being able to imagine different scenarios or contemplate the outcome of a decision are examples of thecapability known as

25 In order to place yourself inside a case, you might adopt the position of

A an outside consultant

B a strategic decision maker

C the board of directors

D all of the answers are correct

26 People, opportunity, context, risk, and reward are all part of

A the strategic groups approach

B the contingency model

C the business plan framework

D the financial planning framework

27 When becoming familiar with a case it is recommended that you

A skim the case only once

B you take several days to read and digest the case

C read it at night before bed and think about it in your sleep

D skim it once, and read it a second time, in depth, making notes as you read

28 Sometimes problems in a case are not apparent until

A after you do the analysis

B you read the case 12 times

C you write down the problem statement

D none of the answers are correct

29 Price-earnings and market-to-book are examples of

A market value ratios

B proposing alternative solutions

C conducting strategic analysis

D becoming familiar with the material

31 The step in case analysis that involves the evaluation of choices and implications of those choices isknown as

A identifying problems

B proposing alternative solutions

C conducting strategic analysis

D becoming familiar with the material

32 The final step in the case analysis process is

33 An essential part of preparing an oral presentation is:

A organizing your thoughts

B being consistent and logical

C emphasizing strategic analysis

D all of the answers are correct

34 Conducting outside research when doing a case study is

A unethical and irresponsible

B one of the ways to help get the most out of the experience

C not recommended

D none of the answers is correct

35 Presenting information graphically is

A one of the five rules for preparing a written case analysis

B one of the five rules for preparing an oral case presentation

C recommended only for liberal arts majors

D a form of brainstorming

36 The use of conflict-inducing decision making techniques in case analysis

A is designed to improve case analysis

B involves the constructive use of conflict

C can be helpful in arriving at better solutions to cases

D all of the answers are correct

37 The phenomenon known as groupthink is undesirable and can lead to poor decisions The concept ofgroupthink was developed by

A Financial Post Advisor

B Irvine Janis

C Howard Jones

D all of the answers are correct

38 Which of the following tries to identify problems with the proposed alternative and suggests reasonswhy it should not be adopted?

A the devil's advocate

B an affordable strategy in case analysis

C the first step in the analysis-decision-action cycle

D the final step in preparing a written case analysis

40 Asking the question, "Have strategic principles been used in the process of obtaining valuable resourcesand crafting effective entrepreneurial strategies?" is an essential part of

A creating new ventures

B the final step in the analysis-decision-action cycle

C the 12thstep in the analysis-decision-action cycle

D all of the answers are correct

41 The analysis-decision-action model reflects

A ideas that are linked sequentially

B an overarching strategic perspective

C material presented in Chapter 12

D all of the answers are correct

42 Discuss the three capabilities that can be developed through case analysis and explain how these threeactivities sometimes compete for a manager's attention

43 Compare and contrast the positions of strategic decision maker, board of directors, and outside

consultant that may be adopted when conducting a strategic case analysis

44 Describe the four characteristics of a business plan framework, and discuss when it might be appropriate

to use this framework to analyze strategic cases?

45 Outline the five easy steps that can be used to organize a strategic management case analysis

46 Outline the five rules for preparing an oral case presentation and explain why each is essential to thedevelopment of an effective presentation.

47 Discuss the resources beyond the textbook that might be used to conduct strategic case analysis andexplain how the use of additional resources can help you get the most out of the experience and expandyour horizons

48 What are the five rules for preparing a written case analysis and how do these differ from the rules forpreparing an oral presentation?

49 Outline the various approaches to conflict-inducing decision making and provide examples of each.Discuss how these techniques can improve the quality of case analysis

50 Explain how the 12 ideas involved in the analysis-decision-action cycle are linked sequentially in terms

of an overarching strategic perspective

51 Strategic management consists of the analysis, decisions, and actions an organization undertakes in order

to create and sustain competitive advantages

58 Sears has developed a sophisticated quantitative model that can predict the relationship between

employee satisfaction, customer satisfaction and financial results This is an example of a symbioticapproach to strategic management

61 The strategic management process should be addressed only by top-level executives Mid-level andlow-level employees are best equipped to implement the organization's strategies.

73 The four key attributes of strategic management include the idea that

A strategy must be directed toward overall organizational goals and objectives

B strategy must be focused on long-term objectives

C strategy must be focused on one specific area of an organization

D strategy must focus on competitor strengths

74 The four key attributes of strategic management include all of the following except

A including multiple stakeholder interests in decision making

B incorporating both short-term and long-term perspectives

C recognizing the trade-offs between effectiveness and efficiency

D emphasis on the attainment of short-term objectives

75 Stakeholders are

A a new way to describe shareholders

B individuals, groups, and organizations who have a stake in the success of the organization

C creditors who hold a lien on the assets of the organization

D attorneys and their clients who sue the organization

76 "Effectiveness" is often defined as

A doing things right

B stakeholder satisfaction

C doing the right thing

D productivity enhancement

77 According to Henry Mintzberg, the realized strategies of a firm

A are a combination of deliberate and emergent strategies

B are a combination of deliberate and differentiation strategies

C must be based on a company's strategic plan

D must be kept confidential for competitive reasons

78 In order to increase their competitiveness, organizations must continually analyze their strategy and theircompetitive environments According to the text, strategy analysis includes

A assessing intellectual capital as well as analyzing the internal and external environment

B formulating Internet and international-level strategy

C strategic leadership and fostering entrepreneurship

D strategy implementation and strategic controls

79 In terms of strategy analysis, the textbook describes Roth, CEO of Nortel, as having

A set low targets

B ignored the experiences of competitors and set unrealistically high growth targets

C focused on the economic landscape

D all of the answers are correct

80 Sears has developed a sophisticated quantitative model and found that there were positive relationshipsbetween employee satisfaction, customer satisfaction, and financial results According to the text, this is

81 An organization is responsible to many different entities In order to meet the demands of these groups,organizations must participate in stakeholder management Stakeholder management means that

A interests of the shareholders are not the only interests that matter

B stakeholders are second in importance to the shareholders

C stakeholders and managers inevitably work at cross-purposes

D all stakeholders receive financial rewards

82 While working to prioritize and fulfill their responsibilities, members of an organization's board ofdirectors should

A represent their own interests

B represent the interests of the shareholders

C direct all actions of the CEO

D emphasize the importance of short-term goals

83 Members of Boards of Directors are

A appointed by the Securities and Exchange Commission

B elected by the shareholders as their representatives

C elected by the public

D only allowed to serve one term of four years

84 Managers should do more than just focus on short-term financial performance One concept that helpsmanagers do this is stakeholder symbiosis This means that

A stakeholders are dependent on each other for their success

B stakeholders look out for their individual interests

C one can only gain at the expense of someone else

D all stakeholders want to maximize shareholder returns

85 Firms must be aware of goals other than short-term profit maximization One area of concern should besocial responsibility which is

A the expectation that business will strive to improve the overall welfare of society

B the idea that organizations are solely responsible to local citizens

C the fact that court costs could impact the financial bottom line

D the idea that businesses are responsible to maintain a healthy social climate for their employees

86 According to the text, the "triple bottom line" approach to corporate accounting includes which threecomponents:

A financial, environmental, and customer

B financial, organizational, and customer

C financial, environmental, and social

D financial, organizational, and psychological

87 Firms must be concerned with many types of capital In the broader sense, these could include

A ecological capital

B material capital

C human and social capital

D all of the above

88 Many organizations have a large number of functional areas with very diverse, and sometimes

competing, interests Such organizations will be most effective if

A each functional area focuses on achieving their own goals

B functional areas work together to attain overall goals

C goals are defined at the bottom and implemented at the top

D management and employees have separate goals

89 The text argues that a strategic perspective in an organization should be emphasized

A at the top of the organization

B in the middle of the organization

C throughout the organization

D from the bottom up

90 As our world increases in complexity, the global environment is increasingly competitive and

challenging The key to effective globalization is

A managing the flow of goods

B more people speaking more languages

C managing the flow of capital, people, and information

D governmental regulations

91 As firms work to become more efficient and effective in the global business environment, they areforced to continually innovate Innovation in an organization

A will always increase a firm's performance

B may enhance or destroy a firm's capabilities

C should not be pursued by industry leaders

D happens only incrementally

92 Peter Senge, of M.I.T., recognized three types of leaders _ are individuals that,

although having little positional power and formal authority, generate their power through the convictionand clarity of their ideas

A Local line leaders

B Executive leaders

C Internal networkers

D Shop floor leaders

93 Leadership is a necessary (but not sufficient) condition for organizational success Leaders should

emerge at which level(s) of an organization?

A only at the top

B in the middle

C throughout the organization

D only during times of change

94 The hierarchy of organizational goals is in this order (least specific to most specific):

A vision statements, strategic objectives, mission statements

B mission statements, strategic objectives, vision statements

C vision statements, mission statements, strategic objectives

D mission statements, vision statements, strategic objectives

95 Wellpoint Health Networks states: "Wellpoint will redefine our industry: through a new generation ofconsumer-friendly products that put individuals back in control of their future." This is an example of a

A strategic objective

B vision statement

C vague statement of direction

D line manager's individual goal

96 Effective vision statement include

A all strategic directions of the organization

B a brief statement of the company's direction

C strategic posturing and future objectives

D financial objectives and projected figures

97 Examples of _ include: "to be the happiest place on earth" (Disney), and "restoringpatients to full life" (Medtronics)

B encompass both the purpose of the company as well as the basis of competition

C encompass all the major rules and regulations of the corporate work force

D be less detailed

99 Which "organizational vision" did the text credit belonging to BCE Bell Canada Enterprises?

A "Restoring patients to full life"

B "Providing Canadians with a one-stop destination in meeting their needs"

C "Clear, Simple, First, True, Profitable, Proud"

D "… the world's best quick service restaurant"

100.Vision statements are used to create a better understanding of the organization's overall purpose anddirection Vision statements

A are very specific

B provide specific objectives

C set organizational structure

D evoke powerful and compelling mental images

101.Fortune Brands states they will "cut corporate costs by $30 million a year." This is an example of a

A nonfinancial strategic objective

B financial strategic objective

C vision statement

D mission statement

102.The strategic management process includes strategy analysis, strategy formulation, and strategy

implementation Discuss each of these steps

103.Discuss what is meant by recognizing trade-off between efficiency and effectiveness and provide an

example of how this attribute of strategic management could influence the strategic decisions of a firm

104.A firm has a variety of different stakeholders Identify several possible stakeholders a firm may have anddiscuss how the firm may achieve stakeholder symbiosis

105.Globalization is impacting most firms today Discuss what "globalization" means and how and why itimpacts today's firms

106.The text discusses several characteristics of effective strategic objectives List several of these anddiscuss why a firm's strategic objectives should meet these criteria.

107.Environmental scanning and competitor intelligence provide important inputs for forecasting activities.True False

108.Environmental monitoring deals with tracking changes in environmental trends that are often uncoveredduring the environmental scanning process

111.Competitive intelligence generally does not benefit very much from gathering information on

competitors from sources in the public domain

117.Technological innovations can create entirely new industries and alter the boundaries of industries.True False

118.The Canadian forestry industry has gained significant advantage over competitors in Sweden andFinland through the use of advanced technology

130.Michael Porter's Five Forces Analysis is a dynamic tool for analyzing industry attractiveness.

136.Gathering "competitive intelligence"

A is good business practice

B is illegal

C is considered unethical

D minimizes the need to obtain information in the public domain

137.Two key inputs to developing forecasts discussed in the text are

A environmental scanning and stakeholder identification

B environmental scanning and competitor intelligence

C assessing internal strengths and environmental scanning

D environmental scanning and a SWOT analysis

138. _ tracks the evolution of environmental trends, sequences of events, or streams of

140.In the Canadian telecommunications industry, the companies used to be governed by

A different federal agencies

B the same federal agency, CRTC

C various provincial agencies

D industry associations

141.A danger of forecasting discussed in the text is that

A in most cases, the expense of collecting the necessary data exceeds the benefit

B forcasting's retrospective nature provides little information about the future

C managers may view uncertainty as "black and white" while ignoring important "grey areas"

D it can create legal problems for the firm if regulators discover the company is making forecast.142.The aging of the population, changes in ethnic composition, and effects of the baby boom are

144.Which of the following would be considered part of a firm's general environment?

A decreased entry barriers

B increased trade deficit

C increased bargaining power of the firm's suppliers

D increased competitive intensity

145.Emerging sociocultural changes in the environment include

A changes in the ethnic composition

B the increasing educational attainment of women in the past decade

C progressively less disposable income by consumers

D changes in the geographic distribution of the population

146.The political/legal segment: When the US congress passed the Sarbanes-Oxley Act in 2002,

A Canada deregulated the associations

B no similar Canadian legislation was developed

C Canada followed with similar provisions

D the provincial governments developed similar laws

147.In the Air Canada - WestJet conflict, the issue is:

A Air Canada claims their employee website was hacked

B WestJet claims their employee website was hacked

C Air Canada claims their email was stolen

D Air Canada claims WestJet used employee access information to obtain flight info

148.Interest rate increases have a impact on the residential home construction industry and a _effect on industries that produce consumer necessities such as prescription drugs or basic grocery items.

A positive; neutral

B negative; neutral

C negative; positive

D positive; negative

149.Which is considered a force in the "Five Forces model"?

A increased deregulation in an industry

B the threat of government intervention

C rivalry among competing firms

D recent technological innovation

150.A large fabricator of building components purchased a steel company to provide raw materials for itsproduction process This is an example of

A backward integration

B economies of scale

C forward integration

D product differentiation

151.An independent group of suppliers, such as farmers, gathers to form a cooperative to sell their products

to buyers directly, replacing their former distributor This is an example of

A threat of entry

B backward integration

C forward integration

D threat of substitute products

152.The threat of new entrants is high when there are

A low economies of scale

B high capital requirements

C high switching costs

D high differentiation among competitors' products and services

153.Which of the following would be an entry barrier?

A large economies of scale

B low switching costs

C easy access to raw materials

D low capital requirements

154.Which of the following firms would likely pose the least competitive threat?

A a firm in the same industry and in the same strategic group

B a firm that produces substitute goods to your product line

C a competitor to your product where a high switching cost exists

D a firm in the same industry and in the nearest strategic group looking to join your group

155.The rivalry between Air Canada and WestJet

A recently moved from the skies to the courtroom

B includes allegations that WestJet set up a screen-scraper program to automatically lift data

C includes allegations that Air Canada sent investigators to pilfer a WestJet Executives garbage lookingfor data

D all of the answers are correct

156.Buyer power will be greater when

A the products purchased are highly differentiated

B there are high switching costs

C the industry's product is very important to the quality of the buyer's end products or services

D it is concentrated on purchasing large volumes relative to seller sales

157.The bargaining power of suppliers increases as

A more suppliers enter the market

B importance of buyers to supplier group increases

C switching costs for buyers decreases

D the threat of forward integration by suppliers increases

158.In Porter's Five Forces model, conditions under which a supplier group can be powerful include all the

following except

A lack of importance of the buyer to the supplier group

B high differentiation by the supplier

C dominance by a few suppliers

D readily available substitute products

159.A supplier group would be most powerful when there is/are

A many suppliers

B few substitute products

C low differentiation of products supplied

D high threat of backward integration by the buyers

160.Threat of substitute products comes from

A other companies in the same industry

B foreign companies which can use cheap labour in their countries

C firms in other industries that produce products or services that satisfy the same customer need

D all of the answers are correct

161.Strategic groups within industries: Canadian retailer Holt Renfrew is described as

A a high growth industry with low fixed costs

B similar to Canadian Tire

C a prestigious upscale player

D a competitor of Wal-Mart

162.Exit barriers arise from

A specialized assets with no alternative use

B governmental and social pressures

C strategic interrelationships with other business units within the same company

D all of the answers are correct

163.The general and competitive environments

A are independent and dynamic over time

B tend to be interrelated and dynamic over time

C have similar impact on organizations of different industries

D are independent and static over time

164.Delayed marriages, fewer people in relevant age groups, and rising interest rates dampening demand forhouses illustrates

A that more than one segment of the general environment may affect an industry

B that the global environment is not as powerful an influence as thought

C that macroeconomic forces dominate the general environment

D that the competitive environment often has a strong influence on the general environment

165.Which of the following best demonstrates the interrelationships among different segments of the generalenvironment?

A A new technology results in the development of a substitute product for your firm's product

B Government deregulation results in different firms being able to offer the same product as your firm

C The recession results in several of your competitors cutting prices and intensifying rivalry

D Increased concern for the environment results in legislation that impacts your current packaging.166.Which of the following is an example of the interrelationship between the general and competitiveenvironments?

A A decline in a nation's educational standards results in a decline in the nation's productivity

B A country's technological inferiority results in its enactment of strong trade barriers against

importation

C Increased awareness of personal health leads to lower demand, and greater rivalry in the alcoholicbeverages industry

D Greater awareness of the environment results in environmental legislation

167.In the value-net analysis, complementors are

A firms that produce substitute products

B customers who compliment the company for their good products and services

C firms that produce products or services that have a positive impact on the value of a firm's products orservices

D firms that supply critical inputs to a company

168.Strategic groups consist of

A top executives who make strategies for a company

B firms within an industry that follow similar strategies

C executives drawn from different companies within an industry that makes decisions on industrystandards

D firms within an industry that decide to collude rather than compete with each other so that they canincrease their profits

169.Which of the following statements about strategic groups is false?

A Two assumptions are made: (1) no two firms are totally different; (2) no two firms are exactly thesame

B Strategic groupings are of little help to a firm in assessing mobility barriers that protect a group fromattacks by other groups

C Strategic groups help chart the future directions of firms' strategies

D Strategic groups are helpful in thinking through the implications of each industry trend for the group

as a whole

170.Explain why managers must recognize opportunities and threats in their firm's external environment.

171.Using the Canadian beer as an example, explain how an industry or competitive environment might bedefined and analyzed

172.Explain how competitor intelligence can be improved by gathering information about competitors in thepublic domain Provide examples

173.Discuss some of the limitations of forecasting

174.Many indicators of the macroeconomic environment such as GNP, interest rates, savings rates, trade andbudget deficits/surplus, etc are interrelated Explain

175.Explain the important barriers to entry in an industry Provide examples.

176.Discuss and provide examples of factors that would lead to greater buyer power

177.What are some of the factors that would cause a supplier group to become powerful? Illustrate

178.Several factors usually interact which result in intense rivalry among competitors Explain

179.Explain how the value net analysis adds to the five-forces analysis Be sure to include examples from atleast two industries

180.What value is the strategic groups concept as a tool in analyzing an industry?

181.Value chain analysis assumes that a firm's basic economic purpose is to create value and it is a usefulframework for analyzing a firm's strengths and weaknesses

191.Managers should focus their attention on interrelationships among value chain activities within the firm,

not on relationships among activities within the firm and other organizations (such as suppliers and

203.A primary benefit of the "balanced scorecard" is that it complements financial indicators with

operational measures of customer satisfaction, internal processes, and the organization's innovation andimprovement activities

True False

204.The balanced scorecard enables managers to evaluate their business from only two perspectives:

customer and financial

True False

205.An important implication of the balanced scorecard is that managers need not look at their job as

primarily balancing stakeholder demands

True False

206.Inbound logistics include

A machining and packaging

B warehousing and inventory control

C repair and parts supply

D promotion and packaging

207. _ are associated with collecting, storing, and distributing the product or service to buyers.They consist of warehousing, material handling, delivery operation, order processing, and scheduling

A Services

B Inbound logistics

C Outbound logistics

D Operations

208.A marketing department that promises delivery faster than the production department's ability to produce

is an example of a lack of understanding of the

A interrelationships among functional areas and firm strategies

B need to maintain the reputation of the company

C organizational culture and leadership

D synergy of the business units

209.Advertising is a activity Supply of replacement parts is a _ activity

A primary; primary

B support; primary

C support; secondary

D primary; support

210.Which of the following is not an advantage of Just-In-Time inventory systems?

A reduced raw material storage costs

B minimized idle production facilities and workers

C reduced work-in-process inventories

D reduced dependence on suppliers

211.In assessing its primary activities, an airline would examine

A employee training programs

B baggage handling

C criteria for lease versus purchase decisions

D the effectiveness of its lobbying activities

212.Customer service would include

A product promotion

B product distribution

C parts supply

D procurement of critical supplies

213.Which of the following is a support activity?

A inbound logistics

B operations

C technology development

D customer service

214.Which of the following lists consist of support activities?

A human resource management, technology development, customer service, and procurement

B human resource management, customer service, marketing and sales, and operations

C human resource management, information systems, procurement, and firm infrastructure

D customer service, information systems, technology development, and procurement

215.Human resource management consists of activities involved in the recruiting, hiring, training,development, and compensation of all types of personnel It

A supports only individual primary activities

B supports only individual support activities

C supports both individual primary and support activities and the entire value chain

D supports mostly support activities but does have some impact on primary activities

216.According to value chain analysis, which of the following would be considered part of a firm'sinfrastructure?

A human resource management

A forecast future demand

B replenish products in a timely manner

C monitor inventories in distribution centres

D all of the answers are correct

218.Assessment of a firm's primary activities should include analysis of all of the following except:

A inbound logistics

B operations

C human resources

D marketing and sales

219.The resource-based view (RBV) of the firm combines two perspectives:

A the primary and support activities of the firm

B the interrelationships among the primary activities of the firm and corporate management

C the internal analysis of the firm as well as the external analysis of the industry and competitiveenvironment

D the industry and the competitive environment

220.The three key types of resources that are central to the resource-based view of the firm are:

A tangible resources, intangible resources, and organizational structure

B culture, tangible resources, intangible resources

C tangible resources, intangible resources, and organizational capabilities

D tangible resources, intangible resources, and top management

221.To create an intangible resource that cannot be easily copied, Canadian retailer Holt Renfrew

combines:

A real estate and store fixtures

B brand name and experienced staff

C accumulated reputation for quality

D all of the answers are correct

222. are the competencies or skills that a firm employs to transform inputs into outputs

D strong primary activities

224.For a resource to provide a firm with the potential for a sustainable competitive advantage, it must have

four attributes Which of the following is not one of these attributes?

A rare

B easy for competitors to substitute

C valuable

D difficult for competitors to imitate

225.For a resource to provide a firm with the potential for a sustainable competitive advantage, it must havethe following four attributes:

A rare, valuable, mobile, nonsubstitutable

B rare, inimitable, physically unique, nonsubstitutable

C rare, valuable, inimitable, nonsubstitutable

D rare, valuable, physically unique, causally ambiguous

226.A crash R&D program by one firm cannot replicate a successful technology developed by another firmwhen research findings cumulate This is an example of

A social complexity

B path dependency

C physical uniqueness

D causal ambiguity

227.A variety of firm resources include interpersonal relations among managers in the firm, its culture, andits reputation with its suppliers and customers Such competitive advantages are based upon

A physical uniqueness, path dependency, causal ambiguity, and social complexity

B psychographic uniqueness, path dependency, causal ambiguity, and substitutability

C rarity, path dependency, causal ambiguity, and social substitutability

D geographic uniqueness, cause dependency, social ambiguity, and path complexity

229.The following are examples of socially complex organizational phenomena except:

A a firm's culture

B interpersonal relations among a firm's managers

C complex physical technology

D reputation with suppliers and customers

230.A resource is valuable and rare but neither difficult to imitate nor without substitutes This should enablethe firm to attain

A no competitive advantage

B competitive parity

C a temporary competitive advantage

D a sustainable competitive advantage

231.The best measure of a company's ability to meet imminent financial obligations is known as the

A current ratio

B total asset turnover

C debt ratio

D profit margin

232.Which of the following would be most difficult to assess?

A the liquidity position of a firm

B the legitimacy and reputation of a firm

C market share growth

D the efficiency with which a firm utilizes its assets

233.Which of these categories of financial ratios is used to measure a company's ability to meet its short-termfinancial obligations?

A leverage ratios

B profitability ratios

C activity ratios

D liquidity ratios

234.A meaningful ratio analysis

A must go beyond the calculation and interpretation of financial ratios

B is based primarily on leverage ratios

C involves only liquidity ratios

D involves profitability ratios at a single point in time

235.Historical comparisons provide information to managers about changes in a firm's competitive position.Historical comparisons are often misleading

A if the overall strategy of the firm is the same

B in periods of recession or economic boom

C if the firm shows constant growth

D if the firm's stock is publicly traded

236.How should managers assess changes in their firm's competitive position in their industries during aperiod of unusual economic growth?

A Compare the firm's financial ratios with ratios of firms in other strategic groups in the industry

B Compare the firm's financial ratios over the most recent one-year period

C Compare the financial ratios of all firms in the country's industry—some of whom serve very diversemarket segments and have specialized accordingly

D Compare the financial ratios of firms in the company's strategic group

237.The "balanced scorecard" provides top managers with a _ view of the business

A detailed and complex

B fast but comprehensive

C simple and routine

D long-term financial

238.The "balanced scorecard" developed by Kaplan and Norton helps to integrate

A financial analysis and a firm's reputation

B intangible resources and operational measures

C financial analysis and stakeholder perspectives

D short-term perspectives and strategic positioning

239.The balanced scorecard enables managers to consider their business from all of the following

240.An important implication of the "balance scorecard" approach is that:

A Managers need to recognize tradeoffs in stakeholder demands and realize that such demands

represent a "zero-sum" game in which one stakeholder will gain only at another's loss

B The key emphasis on customer satisfaction and financial goals are only a means to that end

C Managers should not look at their job as primarily balancing stakeholder demands; increasing

satisfaction among multiple stakeholders can be achieved simultaneously

D Gains in financial performance and customer satisfaction must often come at a cost of employeesatisfaction

241.What are some of the key strengths and limitations of SWOT analysis?

242.What are the key advantages of value chain analysis over SWOT analysis?

243.How can a firm develop (or enhance) its advantages in the marketplace by having strong, positive

interrelationships among its value chain activities and those of its suppliers and customers? Provide anexample

244.What are some ways in which a firm's general administration can help create (or enhance) competitiveadvantages?

245.The resource-based view (RBV) combines both the internal analysis of the firm and the external analysis

of the environment Discuss and provide examples

246.Explain the four attributes that a resource must have to provide a firm with a sustainable competitiveadvantage.

247.What are the benefits and limitations of making historical comparisons in analyzing a firm's

performance?

248.What are the four perspectives that the "balanced scorecard" enables managers to evaluate their

business?

249.What are some of the most important implications of using the "balanced scorecard" approach?

250.According to the text, Xerox is well known for its excellent use of human capital

253.Writers have defined intellectual capital as the difference between the market value and book value of afirm.

266.The text suggests that talented professionals are typically most concerned about financial rewards.Money is the top reason why such employees take and leave jobs.

True False

267.Rather than focus solely on financial considerations, many firms offer attractive benefits to entice

employees to stay These may include on-site stores, ATMs and athletic facilities

True False

268.CIBC Canada, in an attempt to retain employees, offers emergency babysitting services to ALL

employees across Canada

278.Xerox is a company that is known for its inability to leverage human capital One example of this is therelatively short tenure of CEO Rich Thoman One of the main reasons he was fired is that

A he did not have inside connections like other board members and executives had

B he did not have the skills required for the job

C Xerox became known for being too "loosely" organized

D Xerox diversified into too many unrelated businesses

279.As the competitive environment changes, strategic management must focus on different aspects of theorganization Recently strategic management has moved from focusing on

A intangible resources to tangible resources

B tangible resources to intangible resources

C working capital to fixed capital

D fixed capital to working capital

280.Changes in our economy have forced firms to be more concerned with protecting their

A knowledge workers

B social capital

C intellectual capital

D all of the answers are correct

281.In the knowledge economy, if a large portion of a firm's value is in intellectual and human assets, thedifference between the company's market value and book value should _ a company withmostly physical and financial assets

A be equal to

B be smaller than

C be larger than

D not be correlated with

282.Canadian steel company Dofasco found that every dollar spent on training returns

A $5 in production costs cut

B $30 in productivity gains over the following three years

C 5 years of savings

D $10,000 in daily expenses

283.Human capital includes

A an individual's capabilities, knowledge, and skills

B the relationships between people

C the output from assembly line employees

285.In terms of retaining human capital, Magna's strategy is to

A allocate 10% of pre-tax profits to employees

B cultivate the creative potential of its workforce

C distribute 6% of profits to senior managers

D all of the answers are correct

286.Tacit knowledge

A is the same as explicit knowledge

B is found mostly at the lower levels of the organization

C can be codified but not reproduced

D can be accessed only with the consent of the employees because it is in the minds of the employees.287.New knowledge involves the continual interaction between and _knowledge

A intellectual; pragmatic

B theoretical; practical

C tacit; explicit

D detailed; tacit

288.According to the textbook, many firms try to protect their human capital and diversify the ownership of

their vital knowledge by all of the following means except:

A emphasizing teamwork

B by developing learning programs

C by recruiting talented individuals from the best research institutions

D by shackling employees with "golden handcuffs"

289.Recently, in developed countries, a knowledge worker's loyalty to his or her employing firm has

_ compared to his or her loyalty to his or her profession and colleagues

C "top down" organization

D "bottom up" organization

291.According to the text, intellectual capital is the difference between the market value and the book value

of a firm Intellectual capital can be increased by

A increasing retention of below-average workers

B attracting and retaining knowledgeable workers

C decreasing labour costs

D increasing the turnover of employees

292.Attracting and retaining human capital is a challenge for many firms today Firms experiencing highturnover should

A focus on increased recruiting

B decrease money spent on human capital

C make their work environment less stimulating

D adopt effective retention strategies

293.Firms must compete for top talent Whirlpool Canada dealt with conflicting demands of family and workby

A paying for daycare at all offices across Canada

B offering additional work/life balance days to each employee

C paying 6% of profits to senior managers

D developing a flat organization

294.According to Alan Davidson, an industrial psychologist, the single best predictor of an employee's futurebehaviour is

A past behaviour

B the individual's IQ

C academic accomplishments

D standardized test scores

295.Many companies use referrals by current employees as a source for new hiring and even monetarilyreward them because

A it is less expensive than the fees paid to headhunters

B current employees are normally very careful in recommending someone because their credibility is onthe line

C it is a good test of employee loyalty

D it is less expensive than the fees paid to headhunters and current employees are normally very careful

in recommending someone because their credibility is on the line

296.Managing a knowledge-intensive workforce is very challenging The best way for a firm to manage theirworkforce is to

A retain knowledge workers

B attract the brightest employees

C balance efforts in the attraction, selection, and retention of top talent

D weed out less effective employees

297.Maintaining a competitive workforce is very challenging in today's economy The role of evaluatinghuman capital, in recent years, has

A increased

B decreased

C become less important

D remained the same

298.In order to take advantage of investment in human capital a firm should

A rotate workers through functions in the company as quickly as possible

B refrain from training individual employees

C establish practices that will enhance employee retention

D none of the answers are correct

299.The "cascade approach" is used by managers as a tool for

A developing human capital

B attracting intellectual capital

C attracting and developing social capital

D retaining production workers

300.In a 360-degree evaluation and feedback system, rate a person's skill and

performance

A superiors

B direct reports

C colleagues

D all of the answers are correct

301.Generally, employees are most likely to stay with an organization if

A the employer provides high salaries to technology professionals

B the organization's mission and values align with the employee's mission and values

C the firm is in a high tech industry

D the mission and values of the organization change often

302.Many Microsoft employees have left to start other companies In general, when such employees leave,they take with them

A social capital

B human capital

C intellectual capital

D all of the answers are correct

303.Human capital and social capital are vital for superior firm performance If a firm has strong humancapital, the firm may exploit this by building social capital This can be accomplished by

A requiring workers to work independently of each other

B decreasing the interaction of departments within the firm

C encouraging the sharing of ideas between employees in the firm

D structuring the firm with rigid departmental and employee divisions

304.In an effort to capture key employees from competitors, firms may attract the symbolic leader of a groupwithin a competing firm and hope others will follow This has been termed

A the "Columbus effect."

B the "Pied Piper effect."

C strategically competitive hiring

D the "tech exit" effect

305.Social capital is a source of strength to many firms Firms leverage their social capital in an effort tocreate competitive advantages A firm's social capital is based on

A an employee's individual abilities

B the relationships among a firm's employees

C a firm's allocation of financial resources

D an individual's knowledge

306.Sharing knowledge within an organization helps to build social capital This can be accomplished

through the use of

A email

B one-on-one conversations

C Waterloo-based Open Text's Livelink which enables employees to share documents

D all of the answers are correct

307.Social capital has many potential benefits However, according to the text, some argue that social

capital

A is always beneficial to a firm

B may or may not be beneficial to a firm

C usually restricts the productivity of employees

D always hurts firm performance

308.Among the downsides of social capital is/are

A high social capital may breed "groupthink," i.e., a tendency not to question shared beliefs

B socialization processes whereby individuals are socialized into the norms and values of the

organization may become expensive

C individuals may become less willing to collaborate on joint projects

D high social capital may breed "groupthink," i.e., a tendency not to question shared beliefs and

socialization processes whereby individuals are socialized into the norms and values of the

organization may become expensive

309.The use of information technology (e.g., email) has increased in recent years in many organizations Thishas helped to

A increase social capital

B make more effective use of time in every situation

C restrict social network growth

D create smaller social networks

310.The creation of knowledge assets is typically characterized by

A high upfront costs and subsequent high variable costs

B high fixed costs and high variable costs

C low upfront costs and high variable costs

D high upfront costs and low variable costs

311.Bruce Strong, CEO of Context Integration, invested half a million dollars in a software package to helphis consultants share their ideas After the program was unveiled few people were motivated to use it.This may have been caused by

A consultants not seeing value in the software

B consultants being protective of their ideas

C the software not being a part of the company's culture

D all of the answers are correct

312.Effective protection of intellectual property is necessary in order to obtain

A diminishing returns

B financial investment in an undertaking

C conceptual roots going back centuries

D zero marginal gains

313.The capacity to build and protect competitive advantage rests on

314.What is intellectual capital and what is its effect on the ratio of a firm's market value to book value?

315.Why is the management of knowledge and knowledge professionals so critical in today's organizations?

316.Discuss the attributes of human capital Give examples of how firms work to develop and retain it

317.Discuss the adage "hire for attitude, train for skill." What are its implications for the attraction, training,and retention of top talent?

318.In an effort to attract and retain top talent, firms provide financial and nonfinancial rewards to theiremployees Give examples of each and describe how the incentives you have chosen may impactindividual employees

319.Discuss how technology has impacted the attraction, training, and retention of professionals How hastechnology helped firms to enhance their human capital and social capital?

320.Discuss the current situation of RIM and its context with U.S patent troll firm NTP

321.Colt is a Canadian success story that began in the 1950s in New Hampshire and Quebec