Please answer each questions as True or False. 1 point for each correct answer

1. An organizations current structure places certain restrictions on strategy implementation.

2. It is possible to prepare a formal plan with a well-defined strategy and not practice strategic management.

3. Following a differentiation strategy implies that the business should have little concern for costs.

4. Defensive strategies are used when the organization wants to expand its operations.

5. Procedures and rules may be thought of as low-level policies.

6. Planning provides a means for actively involving personnel from all areas of the organization in the management of the organization.

7. Flextime results in increasing absenteeism and tardiness among employees.

8. Self-managed work teams consist of employees who accomplish tasks within their area of responsibility without direct supervision.

9. For successful empowerment, employees must be encouraged to do things the way they have always been done.

10. The more authority top management chooses to delegate, the more conical the scope of authority funnel becomes.

11. The more physically dispersed subordinates are, the wider is the span of management.

12. Companies with a high degree of employee involvement and empowerment follow the formal theory of authority.

13. Relatively large volume of work is a requisite for successful use of division of labor.

14. The major problem with horizontal division of labor is that it can result in job boredom and even degradation of the employee.

15. Vertical division of labor is based on specialization of work.

16. The informal organization refers to the associated groupings of people working outside the formal organization.

Multiple Choice Questions: 1 point for each correct answer.

17. Which of the following is true of functional strategies?

A) Functional strategies outline the specific long-range actions to be taken by the organization.

B) Functional strategies are initiated at the highest level in an organization.

C) Input by lower levels of management is essential to the successful implementation of functional strategies.

D) These strategies are chosen during the evaluation phase of the strategic management process.

E) They are also called competitive strategies.

18. During the implementation phase of the strategic management process, organizations typically _____.

A) identify their mission

B) set their long-run objectives

C) choose a corporate strategy

D) choose an appropriate organizational structure

E) identify past and present strategies

19. Which of the following is true of diversification?

A) It is a substrategy of the retrenchment strategy.

B) Concentric diversification is diversification into unrelated areas.

C) It should be adopted by an organization facing major environmental threats with strong internal resources.

D) It aims to make the product or service unique in its category, thus permitting the organization to charge higher-than-average prices.

E) An organization that faces positive market opportunities but is constrained by relatively weak internal resources should adopt this strategy.

20. Which of the following is one among the five major forces in the competitive or industry environment as proposed by Michael Porter?

A) Employees

B) Stockholders

C) Suppliers

D) Labor unions

E) Government

21. Which of the following is true of SWOT analysis?

A) It is a tool used to formulate an organizations mission statement.

B) Broad environmental factors are those that are close to an organization.

C) An organizations strengths and weaknesses are identified by methodically assessing the organizations external environment.

D) It provides a general overview of whether the overall situation is healthy or unhealthy.

E) Broad environmental factors consist of stockholders, suppliers, competitors, labor unions, customers, and potential new entrants.

22. Which of the following is true of an organizations mission?

A) Defining mission is not crucial for an organization.

B) Customers have no role in determining an organizations mission.

C) An organizations name, statutes, or articles of incorporation define the purpose more clearly than customer satisfaction.

D) An organizations mission outlines why the organization exists.

E) It is the narrowest and lowest level of objectives.

23. Which of the following is true of strategic management?

A) It is the application of the basic planning process at the lowest levels of the organization.

B) Through the strategic management process, lower-levels of management determine the long-run direction and performance of the organization.

C) Middle- and lower-level managers should be excluded from strategic management.

D) It is possible to prepare a formal plan with a well-defined strategy and not practice strategic management.

E) It ensures that the strategic plans that are developed are independent of the changes that occur internally and in the environment.

24. Which of the following is true of a differentiation strategy?

A) Businesses that adopt this strategy should have little concern for costs.

B) It promises a high market share.

C) It aims at lowering a customers sensitivity to price.

D) This is a type of retrenchment strategy.

E) Under this strategy, organizations charge lower-than-average prices.

25. _____ occurs when a company moves into areas it previously served either as a supplier to or as a customer for its current products or services.

A) Horizontal integration

B) Vertical integration

C) Diversification

D) Retrenchment strategy

E) Concentration strategy