The primary reason for an organization to adopt planning and strategic management is to develop a sustainable competitive advantage

Chapter 04 Global Management: Managing across Borders
True / False Questions

1. Keith Reinhard of the nonprofit group Business for Diplomatic Action said, “Americans are seen throughout the world as compassionate, caring people, who are helpful and soft spoken.”
2. Becoming a world citizen includes being global in focus, but thinking local, learning what’s appropriate behavior, knowing your field, and becoming at least minimally skilled in the language of the local country.
3. Learning how to enhance the American global image of being a “caring, wonderful person” is part of becoming a world citizen.
4. Before you travel and conduct business abroad, spend some time learning about other patterns of interpersonal communication, such as in Afghanistan, where a man does not ask another man about his wife.
5. Developing a more globally interdependent system defines nationalism.
6. Great civilizations have had the characteristic of a strong economy, despite their communication problems.
7. While in Italy, Tony was able to communicate important information to George, his business partner, via e-mail. Later that day, Tony remarked to George about how helpful it was that he was able to return to their office in New York in less than nine hours. This “shrinking” of time and space as air travel and the electronic media have made it easier for people around the globe to communicate with one another defines the global village.
8. The process whereby managers are able to utilize Microsoft Excel to improve the record-keeping related to marketing their products and services is known as e-commerce.
9. ABC Investments has been advising customers financially since 1902. In 1989, ABC was able to open an office in Berlin, after the Berlin Wall came down. Later, ABC opened several offices in Asia when several Asian countries opened their economies to foreign investors, then as governments began to deregulate their economies, ABC was able to allow their global customers to move their money freely around the world. ABC Investment’s experience is evidence of the three historic global changes which Rosabeth Moss Kantor of the Harvard Business School spoke of.
10. The availability of goods, people, and money to be able to move more freely worldwide is known as the flexible economy.

Multiple Choice Questions

11. Becoming a world citizen includes being global in focus and learning how _____.
A. to increase workplace diversity
B. not to be an “ugly American”
C. to increase synergy
D. to sing songs from other cultures and nations
E. to speak several languages

12. Globalization is the trend ___.
A. of the world economy becoming a less dependent system
B. of the world economy adding more independent markets
C. toward one world language and culture
D. of the world economy toward becoming a more interdependent system
E. toward one world economy and banking system

13. As part of becoming a world citizen, Joe, who is from Michigan and who is transferring to the Paris office, is trying to do things to ___.
A. enhance the American global image of being a caring, wonderful person
B. think local and keep a global focus
C. enhance the American global image of being thrifty
D. reinforce the American stereotype of being self-absorbed and quiet
E. learn how not to be a “cheap American”

14. The hallmark of great civilizations has been great systems of ____.
A. laws
B. diversity
C. leadership
D. communications
E. manufacturing

15. Last week Paul, CEO of Quality Furniture in South Carolina, traveled to Europe to visit customers. While overseas, Paul checked his e-mail daily and visited his company’s website to show to customers. After visiting the last customer Friday morning, Paul was able to return to the corporate office to meet with his board of directors that night. This “shrinking” of time and space with air travel and electronic media defines ____.
A. the intranet
B. synergy
C. the small world philosophy
D. e-commerce
E. the global village

Chapter 05 Planning: The Foundation of Successful Management
True / False Questions

1. Getting a college degree is not only a big goal, it’s a hard goal—difficult, stressful, expensive, and time-consuming.
2. Research has proven that writing out goals does not necessarily help a person feel more confident when entering a new group.
3. Research suggests that when writing out and achieving a person’s biggest goals, it is important to make a concrete plan, break goals into manageable bites, and seek social support.
4. When Joseph, a restaurant manager, plans, he sets goals and then decides how to achieve them. This is the definition of planning.
5. A business plan is a management tool that contains a list of the competition, along with the competitors’ product strengths and prices.
6. A business model outlines what customer needs the company will satisfy, the operations of the business, the company components and functions, and the projected revenue and expenses.
7. A business model is a type of business plan.
8. Strategic management involves all managers within the organization.
9. A company’s mission and vision is the foundation of an organization’s planning and strategic management.
10. Almost everyone starting a new business is advised to write a business plan.
11. When using MBO, managers should meet about once a year, either informally or formally, to review progress on meeting objectives.
12. One purpose of strategic planning is to “keep the eye on the plan” and avoid invention.
13. Upper-level managers prepare the action plans for attaining objectives for all levels of management.

Multiple Choice Questions

14. According to Richard Branson, founder of Virgin Atlantic airlines, you can set a really hard goal, such as increasing your class study time 50%, which is “stretching yourself beyond what your mind might think is safe,” also known as a(n) ____.
A. increased-state mindset
B. push goal
C. stress goal
D. inclining goal
E. stretch goal

15. Research suggests that when writing out and achieving a person’s biggest goals, it is important to ____.
A. make a concrete plan and avoid social support
B. make a concrete plan and break goals into manageable bites
C. make a general plan, which embeds your intentions firmly in your memory
D. keep plans and goals private
E. avoid specific goals because it increases stress

16. While sitting at her desk, Ann is setting goals and deciding how to achieve them. She is ___.
A. planning
B. controlling
C. delegating
D. diversifying
E. synergizing

17. With increasing competition in the restaurant business, Sal, owner of Mom’s Pizza, is dealing with growing uncertainty. He is meeting with his managers to develop a future course of action to meet company goals. This process is known as _____.
A. planning
B. leading
C. controlling
D. defining
E. diversifying

18. The primary reason for an organization to adopt planning and strategic management is to _____.
A. develop MBO
B. encourage new ideas
C. develop a sustainable competitive advantage
D. provide direction and momentum
E. increase organization diversity

Chapter 06 Strategic Management: How Exceptional Managers Realize a Grand Design
True / False Questions

1. A 2013 survey found that the use of mission and vision statements is popular among managers.
2. Developing a program focused on individual aspects of an organization for short-term success is the focus of strategic planning.
3. Writer Geoffrey Colvin stated that successful managers need to be able to make large, painful decisions and radically alter their business design, such as “exiting businesses, firing people, admitting you were wrong (or at least not omniscient).”
4. To provide direction and momentum, encourage new ideas, and develop a sustainable competitive advantage are reasons why an organization should adopt strategic management and strategic planning.
5. Sustainable competitive advantage occurs when an organization is able to get and stay ahead in being responsive to customers, in innovating, in quality, and in effectiveness.
6. The Strategic Management Society voted Michael Porter, a Harvard Business School professor, the most influential living economist.
7. According to Harvard Business School professor Michael Porter, strategic positioning “means performing different activities from rivals, or performing similar activities in different ways” to achieve sustainable competitive advantage.
8. Donna’s Restaurant is a popular café that specializes in home-cooked meals, friendly service, and a menu that contains vegan and vegetarian dishes, something no other restaurant in the area does. Donna’s is engaging in strategic positioning by offering the unique menu items of vegan and vegetarian dishes.
9. Jiffy Lube provides only lubricants, but it provides them to all kinds of people with all kinds of motor vehicles. This is an example of how a strategic position can result from serving the few needs of many customers.
10. ABC Bowling Centers has a policy of opening locations only in small cities, where there are broad needs and many customers. This is one source of strategic positioning.

Multiple Choice Questions

11. Developing a comprehensive program for long-term success is the focus of ____.
A. strategic planning
B. mission and vision statements
C. organizational diversity
D. TQM
E. a synergy agenda

12. A 2013 survey found that among managers, the use of _____ is popular.
A. mission and vision statements
B. organizational diversity
C. TQM
D. an autocratic discipline program
E. a synergy agenda

13. To provide direction and momentum, encourage new ideas, and develop a sustainable competitive advantage are reasons why an organization should adopt _____.
A. a diversity policy
B. a positive synergy agenda
C. strategic management and strategic planning
D. an aggressive cost-cutting pla
E. a strong business plan

14. When an organization is able to get and stay ahead in the four areas of (1) being responsive to customers, (2) innovating, (3) quality, and (4) effectiveness, that company can develop ____.
A. company diversity
B. increased MBO
C. strong employee morale
D. an environment with few or no competitors
E. a sustainable competitive advantage

15. According to Harvard Business School professor Michael Porter, strategic positioning means _____ to achieve sustainable competitive advantage.
A. aggressive growth
B. distinctive positioning
C. collaborative planning
D. strategic alliances
E. retrenchment

16. Strategic position emerges from three sources: _____.
A. few needs, many customers; broad needs, few customers; broad needs, many customers
B. low-cost products; huge market needs; unique products
C. many needs, few customers; little need, many customers; narrow needs, few customers
D. poor products available; few products available; no products available
E. bad economy; strong economy; stable economy

17. Instructor Services is a technology company that offers many IT services in highly populated southern Ohio. Services and products include computer training, support, monitoring, repair, network design, virus removal, and software upgrades. It even sells refurbished computers. The source of Instructor Services’ strategic position is _____.
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