Test on Long-Term Objectives in Strategic Management

Question 1: Achieving short-term financial objectives, such as higher prices, always aligns with and strengthens long-term strategic objectives like market share.

A. Yes

B. No

Explanation: The study materials state that 'To improve financial position in the short run through higher prices may, for example, jeopardize long-term market share,' indicating that short-term financial objectives do not always align with long-term strategic objectives and can even harm them.

Question 2: According to the study materials, which of the following is NOT a desired characteristic of objectives?

A. Challenging

B. Easily achieved without significant effort

C. Congruent across departments

D. Quantitative

Explanation: The study materials state that objectives should be: quantitative, measurable, realistic, understandable, challenging, hierarchical, obtainable, and congruent across departments. 'Easily achieved without significant effort' is not listed as a desired characteristic; in fact, 'challenging' is listed.

Question 3: Fostering technological innovation, which includes the creation of new technologies or the discovery of new uses for existing ones, is primarily a responsibility of employee development initiatives rather than technological leaders.

A. Yes

B. No

Explanation: A technological leader fosters technological innovation, which involves the creation of new technologies or the discovery of new uses for existing technologies. Employee development focuses on enhancing employee skills and knowledge through training programs.

Question 4: According to the study materials, which of the following is a method for measuring organizational productivity?

A. How long it takes a factory to produce a specific good

B. The ratio of revenue generated per worker to their salary in service companies

C. The company's operating profit margin

D. The total number of employees developed through training programs

Explanation: The study materials state that productivity can be measured in factories by how long it takes to produce a specific good, and in the services sector by the amount of revenue each worker generates divided by their salary. Operating profit margin is a measure of profitability, not productivity, and employee development is a separate long-term objective, not a measure of productivity.

Question 5: Investing in better equipment is a method a company can use to improve output per worker.

A. Yes

B. No

Explanation: The study materials state that 'A company can improve output per worker by investing in better equipment, training its staff, and improving the management of workers.'