96. In the important publication used to evaluate a firm’s strategy, the Fortune 50 includes what?
a. The 50 highest-paid CEOs in several industries
b. The 50 top manufacturing firms
c. The 50 top political figures
d. The 50 worst-performing companies of the year
c. None of the above
Ans: e Page: 309
97. All of the following are key attributes that serve as evaluative criteria except
a. ability to react.
b. quality of products or services.
c. innovativeness.
d. financial soundness.
e. use of corporate assets.
Ans: a Page: 310
98. Which of these is not a key attribute in Fortune’s strategy evaluation research on “America’s Most Admired Companies”?
a. Quality of management
b. Innovation
c. Long-term investment value
d. Amount of physical resources
e. Use of corporate assets
Ans: d Page: 312
99. Which of these is Britain’s best company in petroleum refining?
a. Total Fina
b. Royal Dutch/ Shell Group
c. Unilever
d. Reuters Group
Ans: b Page: 312
100. Which of these is France’s best soaps and cosmetics company?
a. Clinique
b. Christian Dior
c. L’Oreal
d. Estee Lauder
e. Lancome
Ans: c Page: 312
101. __________ is German’s best electronics company, according to Fortune.
a. Siemens
b. L.M. Cricsson
c. ABB Asea Brown Boveri
d. Vinci
e. BASF
Ans: a Page: 312
Characteristics of an Effective Evaluation System
102. __________is not a characteristic of an effective evaluation system.
a. Economical
b. Timely
c. Information-oriented
d. Meaningful
Ans: c Page: 311
103. Controls need to be ____________ rather than ____________.
a. action oriented; information oriented
b. cultural; political
c. qualitative; quantitative
d. measurable; timely
Ans: a Page: 311
104. The strategy-evaluation process should foster
a. mutual understanding.
b. implementation.
c. corporate culture.
d. profit centers.
e. contingency plans.
Ans: a Page: 312
105. ______________ determine the final design of a firm’s strategy-evaluation and control system.
a. Opportunities
b. Threats
c. External characteristics
d. The organization’s characteristics
e. The competition’s characteristics
Ans: d Page: 312
Contingency Planning
106. __________ is having alternative plans that can be put into effect if certain key events do not occur as expected.
a. Corporate agility
b. Scenario planning
c. Strategy evaluation
d. Contingency planning
e. Forecasting
Ans: d Page: 313
107. Which of the following statements about contingency plans is not true?
a. Contingency plans should be as simple as possible.
b. Only high-priority areas require the insurance of contingency plans.
c. Contingency planning makes managers more adaptable.
d. Develop contingency plans for all contingent events.
Ans: d Page: 314
Auditing
108. All of the following perform audits except
a. external auditors.
b. government auditors.
c internal auditors.
d. independent auditors.
Ans: a Page: 314
109. Who performs audits?
a. Independent auditors
b. Government auditors
c. Internal auditors
d. Marketing department auditor
e. a, b & c
Ans: e Page: 314
110. __________ are auditors specifically responsible for safeguarding the assets of a company.
a. Independent auditors
b. Government auditors
c. Internal auditors
d. External auditors
Ans: c Page: 315
Using Computers to Evaluate Strategies
111. ___________ can allow diverse strategy-evaluation reports to be generated for different levels and types of managers.
a. Strategists
b. Networks
c. Front-line employees
d. Competitive analysis
Ans: b Page: 316
112. In strategy evaluation, computers need to be viewed as _________ rather than as _________.
a. unreliable; essential
b. essential; unreliable
c. tools; actual decision-making devices
d. decision-making devices; tools
Ans: c Page: 316