MGT603 FINAL TERM SOLVED QUIZ

126. Mission of a business is the foundation of all of the following EXCEPT:

► Priorities

► Strategies

► Plans

► Wages

Rationale: wages are short term plans or objectives where as mission statement

addresses long term goals and plans.

127. Which of the following is FALSE about vision and mission statements?

► Vision statement gives the overall purpose of an organization while a

mission statement describes a picture of the preferred future

► A vision statement describes how the future will look if the organization

achieves its mission and a mission statement explains what the organization does

► Mission statement answers the questions what is our business and the vision

statement answers the question what do we want to become

► Mission statement explains the current position and activities of a firm

whereas vision statement explains the future objective.

Ref: Mission describes the overall purpose and vision describes the picture of

preferred future.

128. The in-house R&D is a preferred solution in which of the following

situations?

► Technological progress is slow and market growth is moderate

► Technology is changing rapidly and market is growing slowly

► Technology is changing slowly and market is growing quickly

► Both technological progress and market growth rate are fast.

Ref: If the rate of technical progress is slow, the rate of market growth is

moderate, and there is a significant barrier to possible new entrants, then inhouse

R&D is the preferred solution.

129. Identify a strategy which uses firm’s internal strengths to take advantage

of external opportunities.

► SO

► WO

► SW

► WT

Ref: SO Strategies: Every firm desires to obtain benefit form its resources such

benefit can only be obtained if utilize its strength to take external opportunity

130. Which of the following includes the set of shared values, beliefs,

attitudes, customs, norms, personalities, heroes and heroines that describe a

firm?

► Strategy

► Culture

► Mission

► Objectives

Ref: Organizational culture Defined in Table below cultural products include

values, beliefs, rites, rituals, ceremonies, myths, stories, legends, sagas, language,

metaphors, symbols, heroes, and heroines.

131. The culture of a firm is important when considering strategies because:

► Cultural products can support strategies so managers can often

implement changes swiftly and easily

► Everyone in the firm should have a vote as to which strategies to implement

► Culture can dictate the choice of strategies

► Employees always welcome cultural change

Ref: Organizational culture significantly affects business decisions and, thus,

must be evaluated during an internal strategic-management audit. If strategies

can capitalize on cultural strengths, such as a strong work ethic or highly ethical

beliefs, then management often can implement changes swiftly and easily.

132. Which of the following is NOT a major factor that commonly prohibits

effective resource allocation?

► Overprotection of resources

► Organizational politics

► Vague strategy targets

► Ability to take risks

Ref: A number of factors commonly prohibit effective resource allocation,

including an overprotection of Resources, too great an emphasis on short-run

financial criteria, organizational politics, vague strategy Targets, a reluctance to

take risks, and a lack of sufficient knowledge.

133. Which of the following best describes “Just in time”?

► Implementing strategies just before bankruptcy

► delivering materials just as they are needed

► A scheduling method for meetings

► A personnel planning method

With JIT, parts and materials are delivered to a production site just as they are

needed

134. Which of the following factors should be studied before locating

production facilities?

► Availability of major resources

► Location of major markets

► Availability of trainable employees

► All of the given options

135. All of the following are strategic responsibilities of the human resource

manager EXCEPT:

► Assessment of staff needs

► Assessment of costs for alternative strategies

► Development of staffing plan

► Development of financial plan

Ref: Staffing need of the organization and its cost is an important function of

the human resource manager. The other main concerns include health, safety and

security of the workers. The plan must also include how to motivate employees

and managers during a time when layoffs are common and workloads are high.