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Strategic Management: Strategic Managment
Gregory G. Dess, University of Texas at Dallas
G.T. Lumpkin, University of Illinois--Chicago

Assessing the Internal Environment of the Firm

Multiple Choice Quiz


Which of the following is not a limitation of SWOT (Strengths, Weaknesses, Opportunity, Threats) analysis?
A)Organizational strengths may not lead to competitive advantage
B)SWOT gives a one-shot view of a moving target
C)SWOT's focus on the external environment is too broad and integrative
D)SWOT overemphasizes a single dimension of strategy

A marketing department that promises delivery quicker than the production department's ability to produce is an example of a lack of understanding of the
A)synergy of the business units.
B)need to maintain the reputation of the company.
C)organizational culture and leadership.
D)interrelationships among functional areas and firm strategies.

XYZ Corp. is centering on the objective of low-cost, high quality, on-time production by curtailing idle productive facilities and workers. The XYZ Corp. is taking advantage of a ____________ system.
A)Just-In-Time (JIT)
B)Last In, First Out (LIFO)
C)First In, First Out (FIFO)
D)Highly mechanized

Which of the following lists is comprised of support activities:
A)human resource management, information systems, procurement, and firm infrastructure
B)customer service, information systems, technology development, and procurement
C)human resource management, technology development, customer service, and procurement
D)human resource management, customer service, marketing and sales, and operations

Although firm infrastructure is quite frequently viewed only as overhead expense, it can become a source of competitive advantage. Examples include all of the following except:
A)negotiating and maintaining ongoing relations with regulatory bodies.
B)marketing expertise increasing a firm's revenues and enabling it to enter new markets.
C)effective information systems contributing significantly to a firm's overall cost leadership strategy.
D)top management providing a key role in collaborating with important customers.

The competencies or skills that a firm employs to transform inputs into outputs are:
A)tangible resources.
B)intangible resources.
C)organizational capabilities.
D)reputational resources.

An array of firm resources include interpersonal relations among managers in the firm, its culture, and its reputation with its customers and suppliers. Such competitive advantages are based upon
A)physical uniqueness.
B)path dependency.
C)social complexity.
D)tangible resources.

A company's ability to meet its short-term financial obligations is measured by which of the following categories?
A)liquidity ratios
B)profitability ratios
C)activity ratios
D)leverage ratios

The "balanced scorecard" supplies top managers with a _____________ view of the business.
A)long-term financial
B)detailed and complex
C)simple and routine
D)fast but comprehensive