Strategic Management-C3AB-Internal Audit

What is the purpose of organizing in management?

• To assess whether actual results are consistent with planned results

• To prepare for the future by forecasting and establishing objectives

• To influence people to accomplish specific objectives

• To achieve coordinated effort by defining task and authority relationships

Answer explanation

The purpose of organizing in management is to achieve coordinated effort by defining task and authority relationships.

What is the process of influencing people to accomplish specific objectives?

• Controlling

• Motivating

• Organizing

• Planning

Answer explanation

The process of influencing people to accomplish specific objectives is known as motivating, making it the correct choice among the options provided.

According to the text, what is the cornerstone of effective strategy formulation?

• Controlling

• Organizing

• Motivating

• Planning

Answer explanation

According to the text, the cornerstone of effective strategy formulation is Planning.

What is the basic premise of the Resource-Based View (RBV) approach to competitive advantage?

• Organizational performance is not influenced by resources

• Internal resources are more important for a firm than external factors

• Organizational performance is primarily determined by external factors

• External resources are more important than internal resources

Answer explanation

The basic premise of the Resource-Based View (RBV) approach is that internal resources are more important for a firm than external factors.

What is the nature and role of an internal assessment in formulating strategies?

• To develop and use an Internal Factor Evaluation (IFE) Matrix

• To identify and evaluate a firm's strengths and weaknesses

• To perform a Financial Ratio Analysis

• To focus on external opportunities and threats

Answer explanation

To identify and evaluate a firm's strengths and weaknesses

What is the process of performing an internal audit closely parallel to?

• Performing an external audit

• Developing a Corporate IFE Matrix

• Constructing an IFE Matrix

• Applying Breakeven Analysis

Answer explanation

The process of performing an internal audit closely parallels performing an external audit, as both involve evaluating and assessing the organization's operations and financial status.

What is the main purpose of planning in management?

• To ensure that actual results are consistent with planned results

• To prepare for the future by forecasting and establishing objectives

• To influence people to accomplish specific objectives

• To determine whether to attempt a task

Answer explanation

The main purpose of planning in management is to prepare for the future by forecasting and establishing objectives.

What is the key to organizational success according to the text?

• Effective coordination and understanding among managers from all functional business areas

• Developing and exploiting a firm's unique resources and capabilities

• Pursuing a strategy that is currently being implemented by competing firms

• Focusing on external opportunities and threats

Answer explanation

Effective coordination and understanding among managers from all functional business areas is the key to organizational success according to the text.

What is the primary reason for instituting strategic management?

• To expand globally

• To increase profits

• To build and support effective communication networks

• To reduce costs

Answer explanation

The primary reason for instituting strategic management is to build and support effective communication networks.

What is the key issue that the manager of tomorrow must focus on?

• Employee training

• Empowerment

• Cost-cutting

• Market research

Answer explanation

The key issue that the manager of tomorrow must focus on is empowerment, as it involves giving employees the authority and responsibility to make decisions and take action, leading to increased motivation and productivity.