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Chapter 6 Global Bus

Issues selling is the process by which stakeholders convince managers to pay attention to the stakeholders’ particular interests.
False
In most companies, issues management is done in isolation from other departments.
false
The stages of the issues management process are easily separable; thus each can be assigned to a specialist with the public affairs office.
false
The most effective form of communication during a crisis is one that is reactive.
false
The issues that companies are having to deal with are becoming widely divergent, making the process of issues management more difficult.
false
The issues development process refers to the transformation of issues from a low-key and flexible stage to the regulation and litigation stage.
true
Issues development is a very well-defined process that allows managers to understand clearly what stage of the life cycle a particular issue is in.
false
In reality, the conventional and strategic management approaches to issues management have much in common.
true
The concept of crisis management is relatively new, arising out of the crises of the past two decades.
true
Issues management is a process by which a firm deals with its most important stakeholders’ demands.
false
The formulation stage of the issues management process involves designing the firm’s response to the issues facing it.
true
Top managers who adopt a more open mindset for the issues that their subordinates consider important are said to be “buying” those issues.
true
From a managerial point of view, a crisis is common in business.
false
One of the factors that has helped make issues management and crisis management more important to business is instant global communication.
true
A crisis is an extreme event that may threaten your very existence.
true
Issues management can be viewed as a type of pre-crisis planning and post-crisis management.
true
An issue is a matter that is in dispute between two or more parties.
true
An efficient issues management process will analyze issues before ranking them.
false
In a crisis, the first communication should be with internal stakeholders.
true
The narrow approach to issues management severely restricts the options available to respond to important issues.
false
The most important thing in issue identification is
A. selection of the proper sources to scan.
B. assigning the right person to scan the environment.
C. identification of stakeholders with power, legitimacy, and urgency.
D. getting the people who are confronted with new issues in touch with top managers.
D
Companies that adopt issues management processes typically develop
A. better reputations.
B. more expertise in identifying issues.
C. better relationships with internal stakeholders.
D. more ethical behavior among their employees.
A
Questions and dimensions can be used to rank or prioritize issues. Which of the following is not included?
A. likelihood of occurrence
B. impact on the organization
C. how much impact will it have
D. knowledge of the business
C
Planning aspects of the issues management process include all of the following except
A. identification.
B. analysis.
C. ranking.
D. monitoring.
D
The issues management process and crisis management process are both focused on
A. improving stakeholder management.
B. improving sustainability.
C. improving financial performance.
D. improving management development.
A
The implementation phase of the issues management process does not include
A. formulation of responses.
B. putting the plan into action.
C. evaluating the results of the response.
D. monitoring the results.
A
The next stage of formalization beyond having a single person managing issues is
A. hiring outside consultants to handle the process.
B. organizing a new and independent department specifically to manage issues.
C. appointing an assistant to help with the administrative details of categorizing issues and publishing the in-house newsletter.
D. assigning the issues management function to a team, usually within
D
The most dramatic growth in importance of issues has been in ____ issues.
A. financial
B. social, ethical, and political
C. practical
D. military
B
The case that is generally agreed to have “made” crisis management is the
A. Ford/Firestone tire tread separation case.
B. Johnson & Johnson/Tylenol case.
C. Enron scandal.
D. Exxon Valdez oil spill.
B
One of the benefits of the portfolio approach is that it helps
A. identify issues.
B. prioritize issues.
C. resolve issues.
D. spread authority among managers to deal with issues.
B
Key questions proposed to use in analyzing issues includes all of the following except
A. who is affected by the issue?
B. who is in a position to exert influence on the issue?
C. who can best afford to resolve the issue?
D. who ought to care about the issue?
C
The crisis resolution stage is
A. the first stage of managing a crisis
B. cannot overlap other stages
C. defined in duration
D. the goal of crisis management
D
The best stage at which to address a developing issue is at the:
A. felt need stage
B. media coverage stage
C. leading political jurisdictions adopt policies stage
D. regulation and litigation stage.
A
The ultimate objective of issues and crisis management is
A. prevention of harm to the firm.
B. avoidance of crises.
C. to increase the organization’s social responsiveness to stakeholders.
D. understanding of stakeholders’ interests.
C
The principal distinction between the conventional and strategic management approaches to issues management is
A. how broadly the idea of issues in conceived to be.
B. how broadly responsibility for issues management is spread.
C. how broadly the firm defines who its stakeholders are.
D. how many issues are being managed at one time.
A
Which of the following is not a stage in the issues development process?
A. felt need
B. resolution
C. media coverage
D. regulation
B
When managers consider issues that affect their firm, they often ignore
A. ethical considerations.
B. financial concerns.
C. personnel matters.
D. personal stakes.
D
The evaluation, monitoring, and control of issues involves
A. continual control of responses to ensure that they remain on track.
B. extensive cost/benefit analyses.
C. deciding what to do about the issues the firm faces.
D. appointing a separate team within the public affairs office to perform the control function.
A
Which of the following issues has always been part of the business process?
A. legislative
B. ecological
C. financial
D. social welfare
C
Which of the following is not a feature that distinguishes the conventional approach to issues management from the strategic management approach?
A. how broadly issues are defined
B. whether the function stands alone or is integrated with other functions
C. who within the firm implements the system
D. at what level of the firm issues identification takes place
D
The most rudimentary form of issue identification entails
A. subscribing to a news clipping service.
B. subscribing to a forecasting service.
C. assigning a member of the organization to continuously scan a variety of publications.
D. relying on the staff of the public affairs office to scan the environment.
C
The companies that stood out for their excellent handling of the Hurricane Katrina crisis in 2005 were:
A. Ace Hardware and Pella Windows
B. WalMart and Home Depot
C. Lowe’s and Publix
D. McDonald’s and Burger King
B
All of the following are predictors of social change EXCEPT:
A. leading events.
B. leading authorities.
C. leading crises.
D. leading organizations.
C
Emerging issues have all of the following characteristics except
A. the terms of the debate are not clearly defined.
B. the issue deals with matters of conflicting values and interests.
C. trade-offs are not yet needed.
D. the issue does not lend itself to resolution by expert knowledge.
C
Which of the following is not one of the four stages of a crisis?
A. prodromal stage
B. acute crisis stage
C. chronic crisis stage
D. crisis regulation stage
D
Which of the following is not an assumption we make when we use issues management?
A. Issues can be identified earlier and more completely than in the past.
B. Early anticipation of issues gives the firm more options.
C. Issues are so complex that firms have little chance to resolve them favorably.
D. The firm will be able to identify stakeholders earlier than in the past.
C
Which of the following is not one of Molitor’s leading forces?
A. leading events
B. leading literature
C. leading economic indicators
D. leading political jurisdictions
C
The strategic management approach to issues management takes a ____ view of the process.
A. narrow
B. broad
C. futuristic
D. historical
B
Issues management today can be considered a subset of the activities of
A. public affairs departments.
B. strategic planning staffs.
C. public relations departments.
D. various ad hoc committees.
A
The immediate result of environmental scanning is often
A. identification of emerging issues.
B. publication of an in-house newsletter that is distributed throughout the company.
C. publication of a list of emerging issues for internal and external stakeholders.
D. resolution of some issues.
B

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