Concepts in strategic management and business policy (12th ed.)

MBA 5101 Unit I Assessment

• Unless otherwise indicated, there is a 200 word minimumresponse required.
• Credible reference materials, including your course textbook(s), may be used to complete the assessment.

Wheelen, T. L., & Hunger, J. D. (2010). Concepts in strategic management and business policy (12th ed.). Upper Saddle River, NJ: Pearson Prentice Hall

Question 1

1.

A highly involved board does all of the following EXCEPT:

Answer

		tends to be very active.
		provides advice when necessary.
		keeps management alert.
		manage the everyday operations of the organization.

4 points

Question 2

1.

The vast majority of inside directors are from all of the following EXCEPT:

Answer

		lower-level operating employee.
		president of the corporation.
		vice-president of operational units.
		chief executive officer.

4 points

Question 3

1.

The organization’s corporate mission statement:

Answer

		should have a different mission statement for each subsidiary division.
		should be less formally stated to allow for growth.
		should set the organization apart from its competitors.
		should state what the organization would like to become.

4 points

Question 4

1.

The Sarbanes-Oxley Act was designed to protect:

Answer

		retired workers from losing their pensions.
		CEO’s from losing their golden parachutes.
		CEO salary increases.
		shareholders from the excesses and failed oversight of firms.

4 points

Question 5

1.

Which theory proposes that once an organization is successfully established in a particular environmental niche, it is unable to adapt to changing conditions?

Answer

		population ecology
		institution
		citizenship
		strategic choice

4 points

Question 6

1.

A budget is a statement of a corporation’s programs in dollar terms. Which is NOT true of the budgetary function?

Answer

		It is used in planning and control.
		It serves as a detailed plan of strategy in action.
		Only one budget is necessary to capture all programs.
		It details the impact on the firm’s future financial situation.

4 points

Question 7

1.

All of the following criteria reflect survey findings of the characteristics of a good director EXCEPT:

Answer

		willing to challenge management when necessary.
		expertise on global business issues.
		understands the firm’s key technologies and processes.
		willing to always agree with executive decisions.

4 points

Question 8

1.

The Strategic Management Model presents the following process of strategy formulation:

Answer

		Objectives — Policies — Strategies — Mission.
		Mission — Policies — Strategies — Objectives.
		Policies — Mission — Strategies — Objectives.
		Mission — Objectives — Strategies — Policies.

4 points

Question 9

1.

The function of a nominating committee is to:

Answer

		find board members who have compatible viewpoints with management.
		find outside board members for election by the stockholders.
		search for internal employees who would provide valuable insight into the working operations of the corporation.
		search for candidates who could bring prestige to the board.

4 points

Question 10

1.

Strategic planning in a multidivisional corporation:

Answer

		should be informal to allow complete understanding by the many participants.
		should be instigated only from the main corporate office.
		should be accomplished quickly to decrease the likelihood of it becoming outdated.
		should be a formalized and sophisticated system.

4 points

Question 11

1.

What is a strategic decision and what are its three characteristics? Please include an example of a strategic decision from your place of work that supports your response.

Answer

30 points

Question 12

1.

What are the responsibilities of the board of directors? Please provide an example of a board of directors that did not meet its responsibilities.

Answer