OR 512-sheet-theory

The process of decision making is more limited than that of problem solving. True. False.

Problem solving encompasses both the identification of a problem and the action to resolve it. True. False.

The decision-making process includes implementation and subsequent evaluation of the decision. True. False.

The value of making a decision based on models is dependent on how closely the model represents the real situation. True. False.

The conditional probability that we will be in a future state given a current state called state probability. True. False.

Sample information with an efficiency rating of 100% is perfect information. True. False.

Decision alternatives are structured so that several could occur simultaneously. True. False.

Risk analysis helps the decision maker recognize the difference between the expected value of a decision alternative and the payoff that may actually occur. True. False.

The expected value of an alternative can never be negative. True. False.

Expected value is the sum of the weighted payoff possibilities at a circular node in a decision tree. True. False.

EVPI is always greater than or equal to EVSI. True. False.

After all probabilities and payoffs are placed on a decision tree, the decision maker calculates expected values at state of nature nodes and makes selections at decision nodes. True. False.

EVPI equals the expected regret associated with the minimax decision. True. False.

The expected value of sample information can never be less than the expected value of perfect information. True. False.

Decision criteria. are the choices faced by the decision maker. are the problems faced by the decision maker. are the ways to evaluate the choices faced by the decision maker. are unique for any problem.

The final stage in strategic management is strategy implementation. true. false.

Strategic management focuses on integrating management, marketing, finance/accounting, production/operations, research and development, and information systems to achieve organizational success. True. False.

Optimizing for tomorrow the trends of today is the purpose of strategic management. True. False.

Resource allocation is included in strategy-formulation activities. True. False.

The final stage in strategic management is strategy implementation. True. False.

One of the fundamental strategy evaluation activities is reviewing external and internal factors that are the bases for current strategies. True. False.

Strategists are usually found in higher levels of management and have considerable authority for decision-making in the firm. True. False.

A vision statement answers the question, "What is our business?" whereas a mission statement answers, "What do we want to become?". True. False.

Strengths and weaknesses are determined relative to competitors. True. False.

Objectives should be measurable, challenging, reasonable, consistent and clear. True. False.

The mission statement should be short – preferably one sentence. True. False.

When developing a vision statement, input should be received from as many managers as possible. True. False.

A mission statement is a declaration of an organization's "reason for being.". True. False.

Small, nonprofit organizations never develop mission statements. True. False.

Stakeholders of an organization include stockholders, customers and creditors, but not competitors. True. False.

Stakeholders both affect and are affected by an organization's strategic decisions. True. False.

Having a clear mission and vision can provide a basis for a company's internal and external assessment. True. False.

The aim of an external audit is to develop an exhaustive list of every possible factor that could influence the business. True. False.

Five major categories of external variables are: 1) economic forces, 2) social and cultural forces, 3) political, governmental and legal forces, 4) technological forces and 5) demographic forces. True. False.

The first stage of the strategy-formulation framework is the input stage, and it is directly followed by the decision stage. True. False.

Strengths-opportunities strategies are based on using a firm's internal strengths to take advantage of external opportunities and threats. True. False.

One of the steps of the SWOT Matrix is to list the firm's key external opportunities. True. False.

The SP and CP dimension variables in a SPACE Matrix are assigned a numerical value ranging from -1 (best) to -7 (worst). True. False.

Conservative strategies in a SPACE Matrix most often include product development, market development, market penetration and related diversification. True. False.

The firm should pursue aggressive strategies if the coordinates of a SPACE directional vector are (+5, +4). True. False.

Relative market share position is given on the x-axis of the BCG Matrix. True. False.

The size of the circle in a BCG Matrix corresponds to the proportion of corporate revenue generated by that business unit. True. False.

In a BCG Matrix the pie slice indicates the proportion of corporate profits generated by that division. True. False.

Which type of statement should be created first and foremost?. Strategic. Vision. Objectives. Mission.

The ideal length of a vision statement is. one page. one sentence. several sentences. as long as is necessary to convey the message.

Which of the following is not a key question that can reveal internal strengths and weaknesses of the marketing department?. Does the firm have an effective sales organization?. Is our product quality good?. Are markets segmented effectively?. Does the firm have good liquidity?.

Which of the following is the first step in developing an IFE Matrix?. Determining the organization's structure. Summing the weighted scores for each variable. Identifying the organization's strengths and weaknesses. Identifying the organization's functions of business.

The IFE Matrix should be -------------- in multidivisional firms. constructed for each division. revised monthly. all-inclusive. developed before the EFE Matrix.

Which stage of the strategy-formulation framework contains the Internal-Factor Evaluation Matrix?. Input stage. Matching stage. Analysis stage. Decision stage.

Decision analysis is the discipline of evaluating complex alternatives in terms of values and uncertainty. Decision analysis provides insight into how the defined alternatives differ from one another and then generates suggestions for new and improved alternatives. True. False.