STRAMA C9-10 FINALS

Question 1

When do the best strategies become obsolete?

Answer 1

when a firm’s internal and external environments change

Question 2

vital to an organization’s well
being.

Answer 2

Strategy evaluation

Question 3

_____________ can alert management to
potential or actual problems before a situation
becomes critical.

Answer 3

timely evaluations

Question 4

Strategy Evaluation includes three basic activities

ECT

Answer 4

(1) Examining the underlying bases of a firm’s
strategy.
(2) Comparing expected results to actual results.
(3) Taking corrective actions to ensure that
performance conforms to plans

Question 5

the cornerstone of effective Strategy Evaluation.

Answer 5

adequate and timely feedback

Question 6

T/F

Strategy Evaluation is important because
organizations face dynamic environments in
which key external and internal factors can
change quickly and dramatically.

Answer 6

T

Question 7

Rumelt’s 4 Criteria

Answer 7

Consistency
Consonance
Feasibility
Advantage

Question 8

what is consistency

Answer 8

Strategy should not present inconsistent
goals and policies

Question 9

What is consonance

Answer 9

Need for strategists to examine sets of
trends, as well as individual trends

Question 10

what is feasibility

Answer 10

Neither overtax resources nor create
unsolvable subproblems

Question 11

Creation or maintenance of competitive
advantage

Answer 11

advantage

Question 12

Strategy Evaluation Should –

ITS-Bp

Answer 12

Initiate managerial questioning of expectations and assumptions

Trigger a review of objectives & values

Stimulate creativity in generating alternative strategies and formulating criteria for evaluation

Be performed on a continuing basis, rather than at the end of specified periods of time or just after problems occur.

Question 13

Review of Underlying Bases of Strategy –

Answer 13

Develop revised IFE Matrix
Develop revised EFE Matrix

Question 14

Measuring Organizational Performance

CIEE

Answer 14

◼ Compare expected to actual results
◼ Investigate deviations from plan
◼ Evaluate individual performance
◼ Examine progress toward stated objectives

Question 15

Strategists use financial ratios to:

Answer 15

❑ Compare a firm’s performance over different time periods

❑ Compare a firm’s performance to competitors’ performance

❑ Compare a firm’s performance to industry averages

Question 16

_____________ is the final strategy evaluation activity.

Answer 16

Taking corrective action

Question 17

It requires making changes to ____________ a firm for the future

Answer 17

competitively reposition

Question 18

Examples of changes that may be needed are altering an organization’s structure

RSDIAR

Answer 18

replacing one or more key employees

selling a division

devising new policies

issuing stock to raise capital

allocating resources differently

revising the firm’s mission

Question 19

____________ is a strategy evaluation
tool. It uses both quantitative and qualitative
measures to evaluate strategies

Answer 19

balanced scorecard

Question 20

A Balanced Scorecard analysis requires firms to answer these questions

Answer 20

1. How well is the firm continually improving and creating value along measures such as innovation, technological leadership, product quality, operational process efficiencies, etc.?
2. How well is the firm sustaining or improving upon its core competencies and competitive advantages?
3. How satisfied are the firm’s customers?

Question 21

what is business ethics

Answer 21

Principles of conduct within
organizations that guide decision
making and behavior

Question 22

◼ Ethics training should include:

Answer 22

❑ A message from the CEO
❑ Development and discussion of codes
of ethics
❑ Procedures for discussing and
reporting unethical behavior

Question 23

A document that provides behavioral
guidelines that cover daily activities
and decisions within the organization

Answer 23

code of business ethics

Question 24

To align ethical and strategic decision
making:

IIEM

Answer 24

❑ Incorporate ethical considerations into longterm planning
❑ Incorporate ethical considerations into
performance appraisals
❑ Encourage whistle-blowing
❑ Monitor department and corporate
performance regarding ethical issues

Question 25

Actions an organization takes beyond
what is legally required to protect or
enhance the well-being of living things

Answer 25

SOCIAL RESPONSIBILITY

Question 26

Concerns what responsibilities the firm has to
its employees, consumers, environmentalists,
minorities, communities, shareholders, and
other groups

Answer 26

social policy

Question 27

T/F:

Should be considered during each stage of
strategy formulation ONLY

Answer 27

F; strategy implementation and eval as well

Question 28

The extent that an organization’s
operations and actions protect, mend,
and preserve rather than harm or
destroy the natural environment

Answer 28

environment sustainability

Question 29

Strategies of companies are scrutinized
and evaluated from a _________________

Answer 29

natural environment perspective

Question 30

what is sustainability report

Answer 30

◼ Reveals how a firm’s operation impact
the natural environment

Question 31

T/F

Sustainability reports are required

Answer 31

F; not required but a good business practice

Question 32

Environmental strategies could include

DDSP

Answer 32

❑ Developing or acquiring green businesses
❑ Divesting or altering environment-damaging
businesses
❑ Striving to become a low-cost producer through
waste minimization and energy conservation
❑ Pursuing a differentiation strategy through green
product features

Question 33

Reasons Why Firms Should “Be
Green”

Answer 33

◼ Consumer demand
◼ Public opinion
◼ Environmental advocacy groups
◼ Federal and state environmental regulations
◼ Lenders
◼ Consumers, suppliers, distributors, and
investors
◼ Liability suits and fines

Question 34

meaning of ISO?

Answer 34

international organization for standardization

Question 35

ISO is a network of standards institutes of (n?) countries

Answer 35

147

Question 36

T/F

compliance to ISO is not voluntary

Answer 36

F; voluntary

Question 37

a series of voluntary standards
in the environmental field

Answer 37

◼ ISO 14000

Question 38

a set of standards included
within ISO 14000

Answer 38

ISO 14001

Question 39

what does EMS in ISO 14001 mean

Answer 39

environmental management system

Question 40

T/F:

The basic form of a Balanced Scorecard may
differ for different organizations.

Answer 40

T

Question 41

Note that corrective actions are needed
except when

Answer 41

(1) external and internal factors
have not changed significantly and (2) the firm is
making satisfactory progress toward achieving
its objectives.