Jabra has been running a commercial real estate business for nearly thirty years. As he approaches retirement, he is content to simply lease the commercial space he currently has, rather than make new deals to develop additional properties. Jabra is using which grand strategy?

A. Stability

B. Retrenchment

C. Inducement

D. Defensive

E. Growth

Answer: A. stability

Rocky Mountain Ski and Snowboard is a small shop that provides ski equipment for Rocky Mountain skiers. It has decided to increase advertising in the Denver Post and the Vail Voice as well as sponsor one of the mountain competitions. It is following which strategy?

A. Inducement

B. Defensive

C. Growth

D. Stability

E. Enhancement

Answer: C. growth

American Auto Parts recently acquired two smaller auto parts companies in the Southwest to gain a national presence. American Auto Parts is pursuing a(n) ______ strategy.

A. escalation

B. growth

C. stability

D. merger

E. defensive

Answer: B. growth

Techno Tools is selling off land, buildings and some of its product inventory. This is a variation of which of these grand strategies?

A. Right-size

B. Growth

C. Stability

D. Defensive

E. Reorganization

Answer: D. defensive

Which of the following is NOT a stage in the strategic-management process?

A. Conduct a trend analysis

B. Maintain strategic control

C. Establish the grand strategy

D. Establish the mission and vision

E. Carry out the strategic plans

Answer: A. conduct a trend analysis

Zach manages a small bike repair store. In order to determine if strategic planning will be likely to help his business, Zach should primarily assess

A. how many competitors he has.

B. foot traffic by his location.

C. his profitability in the prior six months.

D. industry trends.

E. how much he intends to grow in the next five years.

Answer: A. how many competitors he has

According to the text, a small firm is likely to benefit significantly from strategic planning

A. regardless of the nature of its industry or market.

B. when it is in a very competitive industry.

C. when it is in a very new industry.

D. when it is in a very stable industry.

E. when it has a very small market.

Answer: B. when it is in a very competitive industry

JT runs a small bakery on the main street of a resort town. Though his was the only bakery around, the business had been suffering in the recent recession and he was contemplating whether he should attempt strategic planning. JT should be aware of what research finding regarding strategic planning?

A. Only large firms show performance gains from strategic planning.

B. Only small firms show performance gains from strategic planning.

C. Performance gains from strategic planning are equal among small and large firms.

D. Both small and large firms benefit from strategic planning, but small firms get a larger boost in performance.

E. Both small and large firms benefit from strategic planning, but the small improvement in performance may not be worth the effort for small firms.

Answer: E. both small and large firms benefit from strategic planning, but the small improvement in performance may not be worth the effort for small firms

Consumers can use a national company called Service Magic to receive bids from quality providers of a variety of services, including home remodel, landscaping, plumbing and housecleaning. Which of the following is the source of Service Magic's strategic position?

A. Low profit margin and many customers

B. Broad needs and few customers

C. Broad needs and many customers

D. High profit margin and many customers

E. High profit margin and few customers

Answer: C. broad needs and many customers

Which of the following statements about strategy and strategic positioning is FALSE?

A. Many customers with broad needs can be a source of strategic position.

B. A company has to choose not only what strategy to follow but what strategy not to follow.

C. Few customers with broad needs can be a source of strategic position.

D. Strategy involves creating a "fit" among activities.

E. Few customers with narrow needs can be a source of strategic position.

Answer: E. few customers with narrow needs can be a source of strategic position

A ______ represents an "educated guess" about what must be done in the long term for survival or the prosperity of the organization or its principal parts.

A. trend analysis

B. mission

C. strategy

D. forecast

E. contingency plan

Answer: C. strategy

Apple has a plan to generate buzz for its new products by maintaining secrecy about them. Apple has learned that strong measures are required to protect such mysteries, so it has enhanced its security and even fired and sued employees for leaking news about the products. These efforts would be considered which part of the planning/control cycle?

A. Making the plan

B. Carrying out the plan

C. Comparing results

D. Taking corrective action

E. Benchmarking competitors

Answer: D. taking corrective action

Ellie met with her supervisor for a formal review of her job performance over the past year. Though Ellie had agreed to complete five training modules during the course of the year, she only did two. At this stage, which part of the planning/control cycle would be applicable to her manager going forward?

A. Carry out the plan

B. Improve feedback

C. Correct deviations in the plan

D. Improve future plans

E. Benchmark against other employees

Answer: D. improve future plans

Desiree, a sales manager, met with her staff to discuss that they were only a third of the way to their sales goal, but halfway through the sales period. She was looking for suggestions to improve second half performance. Which part of the planning/control cycle is Desiree doing?

A. Benchmarking against competitors

B. Controlling the direction

C. Making the plan

D. Carrying out the plan

E. Updating the plan

Answer: B. controlling the direction

MBO works by cascading objectives down through the organization, and these objectives become more ______ at lower levels of the organization.

A. measurable

B. challenging

C. results-oriented

D. attainable

E. specific

Answer: E. specific

Productivity gains from MBO are higher when an organization has

A. top-management commitment.

B. few budget problems.

C. team rather than individual performance reviews.

D. union support.

E. nonmanagerial employee support.

Answer: A. top-management commitment

Terell is a new manager, and he is using MBO for the first time. It is essential for Terell to

A. decide on goals for employees and clearly inform them of these goals.

B. ask the employee to commit the goals to memory.

C. set goals that are just out of the subordinate's reach.

D. reward employees when they meet objectives.

E. review an employee's performance once, at the end of the performance period.

Answer: D. reward employees when they meet objectives

MBO stands for

A. Management by Observation.

B. Management by Objectives.

C. Management by Ownership.

D. Management by Obligation.

E. Management by Organization.

Answer: B. management by objectives

The space shuttle Discovery is an example of a

A. policy.

B. rule.

C. procedure.

D. project.

E. program.

Answer: D. project

When White Castle specifies exactly how to dress a hamburger, including the order of the condiments, this is called a

A. program.

B. policy.

C. rule.

D. procedure.

E. project.

Answer: D. procedure