question

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

answer

True

question

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

answer

False

question

Even though useful, strategic planning has been cast aside by corporate America since the early 1990s.

answer

False

question

The decision to expand or diversify operations is a strategy-formulation issue.

answer

True

question

The terms strategic management and strategic planning are synonymous in this text.

answer

True

question

A vision statement identifies the scope of a firm's operations in product and market terms.

answer

False

question

Strategy implementation is often considered to be the most difficult stage in the strategic-management process because it requires personal discipline, commitment, and sacrifice.

answer

True

question

The final stage in strategic management is strategy implementation.

answer

False

question

Formulation, implementation, and evaluation of strategy activities occur at three hierarchical levels in a large organization: corporate, divisional or strategic business unit, and functional.

answer

True

question

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

answer

True

question

An objective, logical, systematic approach for making major decisions in an organization is a way to describe the strategic-management process.

answer

True

question

Strategic management is an attempt to organize qualitative and quantitative information in a way that allows effective decisions to be made under conditions of uncertainty.

answer

True

question

Analytical and intuitive thinking should complement each other.

answer

True

question

According to Albert Einstein, "Knowledge is far more important than intuition."

answer

False

question

Management by intuition can be defined as operating from the "I've-already-made-up-my-mind-don't-bother-me-with-the-facts mode."

answer

False

question

By occasionally monitoring external events, companies should be able to identify when change is required.

answer

False

question

Firms, like organisms, must be "adept at adapting" or they will not survive.

answer

True

question

U.S. firms are not being challenged in the computer industry.

answer

False

question

Anything the firm does especially well compared to rival firms could be considered a competitive advantage.

answer

True

question

Once a firm acquires a competitive advantage, they are usually able to sustain the competitive advantage indefinitely.

answer

False

question

Newspaper companies in the United States provide a good example of how a company can sustain a competitive advantage over the long-term.

answer

False

question

Although e-commerce has increased in popularity, it has actually led to increases in company expenses.

answer

False

question

While the number of people shopping online has increased, the average amount spent online has decreased.

answer

False

question

One of the ways in which the Internet has transferred power from businesses to individuals is by making comparison-shopping quick and easy.

answer

True

question

Most traditional retailers have tried in vain to use their online sales to boost in-store sales.

answer

False

question

In order for a firm to achieve sustained competitive advantage, a firm must continually adapt to changes in external trends and events and effectively formulate, implement, and evaluate strategies that capitalize upon those factors.

answer

True

question

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

answer

True

question

The middle manager is the most visible and critical strategic manager.

answer

False

question

All strategists have similar attitudes, values, ethics and concerns for social responsibility.

answer

False

question

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

answer

False

question

In the last five years, the position of chief strategy officer (CSO) has diminished so drastically that today it is almost unheard of for companies to have such a position on staff.

answer

False

question

A clear mission statement describes the values and priorities of an organization.

answer

True

question

Strengths and weaknesses are determined relative to competitors.

answer

True

question

In a multidivisional firm, objectives should be established for the overall company but not for each division.

answer

False

question

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

answer

True

question

Annual objectives are long-term milestones that organizations must achieve to reach short-term objectives.

answer

False

question

Annual objectives are especially important in strategy formulation.

answer

False

question

According to research, a healthier workforce can more effectively and efficiently implement strategies.

answer

True

question

Identifying an organization's existing vision, mission, objectives, and strategies is the final step for the strategic management process.

answer

False

question

Once an effective strategy is designed, modifications are rarely required.

answer

False

question

Application of the strategic-management process is typically more formal in larger and well-established organizations.

answer

True

question

Commitment and understanding are the most important benefits of strategic management.

answer

True

question

The best thing strategists can do is develop strategic plans themselves and then present them to operating managers to execute.

answer

False

question

Firms with planning systems more closely resembling strategic-management theory generally exhibit superior long-term financial performance relative to their industry.

answer

True

question

Low-performing firms typically underestimate their competitor's strengths and overestimate their own firm's strengths.

answer

True

question

According to Greenley, strategic management provides increased discipline, enhanced communication, and more effective allocation of time and resources.

answer

True

question

The lack of monetary rewards is one reason managers do not engage in strategic planning.

answer

True

question

Crises and firefighting in an organization give managers the extra time needed to plan ahead.

answer

False

question

Making many intuitive decisions that conflict with the formal plan is one pitfall to avoid in strategic planning.

answer

True

question

Managers must be very formal in strategic planning because formality fosters flexibility and creativity.

answer

False

question

Many organizations mistakenly spend more time and effort on the implementation of a plan, than on the formulation of the plan itself.

answer

False

question

Strategic-management must be a self-reflective learning process that familiarizes managers and employees in the organization with key strategic issues and feasible alternatives for resolving those issues.

answer

True

question

The most effective strategic management is ritualistic, predictable, and formal.

answer

False

question

For the strategic planning process to be effective, organizations must continually strengthen the "good ethics is good business" policy.

answer

True

question

Military success is usually the happy result of accidental strategies, but business success is the product of continuous attention to changing conditions and insightful adaptations to those conditions.

answer

False

question

In most respects, business strategy is very different than military strategy.

answer

False

question

The element of surprise provides great competitive advantages in both military and business strategy.

answer

True

question

Both military and business strategy are formulated, implemented, and evaluated with an assumption of competition.

answer

False

question

Superior strategy formulation is well and good, but it cannot overcome an opponent's superiority in numbers and resources.

answer

False

question

All firms have a strategy, even if it is informal, unstructured, and sporadic.

answer

True

question

Firms can be more proactive with strategic management.

answer

True

question

The goal of strategic management is to A) achieve competitive advantage. B) maintain competitive advantage. C) achieve and maintain competitive advantage. D) eliminate competitive advantage. E) eliminate and abolish competitive advantage.

answer

C) achieve and maintain competitive advantage.

question

Strategic management focuses on integrating management, ________, and information systems to achieve organizational success. A) marketing B) finance and accounting C) production and operations D) research and development E) all of the above

answer

E) all of the above

question

What can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives? A) Strategy formulation B) Strategy evaluation C) Strategy implementation D) Strategic management E) Strategic leading

answer

D) Strategic management

question

Sometimes ________ is used to refer to strategic formulation, implementation and evaluation, with ________ referring only to strategic formulation. A) strategic planning; strategic management B) strategic planning; strategic processing C) strategic management; strategic planning D) strategic management; strategic processing E) strategic implementation; strategic focus

answer

C) strategic management; strategic planning

question

During what stage of strategic management are a firm's specific internal strengths and weaknesses determined? A) Formulation B) Implementation C) Evaluation D) Feedback E) Goal-setting

answer

A) Formulation

question

67) An important activity in ________ is taking corrective action. A) strategy evaluation B) strategy implementation C) strategy formulation D) strategy leadership E) all of the above

answer

A) strategy evaluation

question

68) What step in the strategic development process involves mobilizing employees and managers to put strategies into action? A) Strategy formulation B) Strategy evaluation C) Strategy implementation D) Strategic advantage E) Competitive advantage

answer

C) Strategy implementation

question

What types of skills are especially critical for successful strategy implementation? A) Interpersonal B) Marketing C) Technical D) Conceptual E) Visionary

answer

A) Interpersonal

question

Which phase of strategic management is called the action phase? A) Strategy formulation B) Strategy implementation C) Strategy evaluation D) Competing advantages E) Measuring performance

answer

B) Strategy implementation

question

________ is NOT a strategy-implementation activity. A) Taking corrective actions B) Establishing annual objectives C) Devising policies D) Allocating resources E) Motivating employees

answer

A) Taking corrective actions

question

Strategy evaluation is necessary because A) internal and external factors are constantly changing. B) the SEC requires strategy evaluation. C) success today is a guarantee of success tomorrow. D) the IRS requires strategy evaluation. E) firms have limited resources.

answer

A) internal and external factors are constantly changing.

question

Which statement best describes intuition? A) It alone should be used in decision-making. B) It represents a minor factor in decision-making integrated with analysis. C) It should be coupled with analysis in decision-making. D) It is better than analysis in decision-making. E) It is management by ignorance.

answer

C) It should be coupled with analysis in decision-making.

question

In recent years, the speedy flow of information through technology has A) made it harder for people worldwide to see how others work and live. B) strengthened national boundaries and made countries more self-contained. C) created a borderless world with global competitors, customers, and citizens. D) ensured that the U.S. is unrivaled by other companies in all industries. E) made the real flow of financial activity align with political boundaries between countries.

answer

C) created a borderless world with global competitors, customers, and citizens.

question

Anything that a firm does especially well compared to rival firms is referred to as A) competitive advantage. B) comparative disadvantage. C) opportunity cost. D) unsustainable advantage. E) an external opportunity.

answer

A) competitive advantage.

question

In mass retailing, big-box companies like Walmart, Best Buy, and Sears are A) gaining competitive advantage over smaller stores. B) participating in a dramatic shift to becoming bigger. C) increasing the square-footage of their retail locations. D) finding that less brick and mortar is better. E) noticing a sharp decline in online purchases.

answer

D) finding that less brick and mortar is better.

question

The fact that Apple has no manufacturing facilities of its own A) has caused it to build up massive debt on its balance sheet. B) has enabled it to remain financially lean with virtually no long-term debt. C) has been problematic for Apple in terms of debt. D) illustrates that having more fixed assets than rival firms can provide major competitive advantages in a global recession. E) means that it is in the same position as Sony.

answer

B) has enabled it to remain financially lean with virtually no long-term debt.

question

________ allows firms to sell products, advertise, purchase supplies, bypass intermediaries, track inventory, and eliminate paperwork. A) Social networking B) E-commerce C) Blogging D) Viral video E) "Trading down"

answer

B) E-commerce

question

79) The Internet has transferred power from ________ to ________. A) businesses, individuals B) governments, businesses C) individuals, businesses D) businesses, governments E) individuals, governments

answer

A) businesses, individuals

question

There is a dramatic shift in mass retailing to A) "trading up" and taking customers from more exclusive stores. B) selling only the most expensive merchandise. C) opening dramatically larger supercenters. D) operating stores with less square footage. E) cutting back on their online presence.

answer

D) operating stores with less square footage.

question

The one factor that has most significantly impacted the nature and core of buying and selling in nearly all industries has been A) the Internet. B) political borders. C) corporate greed. D) customer and employee focus. E) the government.

answer

A) the Internet.

question

Which individuals are most responsible for the success and failure of an organization? A) Strategists B) Financial planners C) Personnel directors D) Stakeholders E) Human resource managers

answer

A) Strategists

question

Which is generally considered to be the first step in strategic planning? A) Developing a vision statement B) Establishing goals and objectives C) Making a profit D) Developing a mission statement E) Determining opportunities and threats

answer

A) Developing a vision statement

question

What are enduring declarations of purpose that distinguish one business from other similar firms? A) Policies B) Mission statements C) Objectives D) Rules E) Employee conduct guidelines

answer

B) Mission statements

question

An organization's vision statement A) is a constant reminder to its employees of why the organization exists. B) broadly charts the future direction of an organization. C) addresses the basic question: "What is our business?" D) answers the question: "What do we want to become?" E) none of the above

answer

D) answers the question: "What do we want to become?"

question

Generally, external opportunities and threats are A) uncontrollable by a single organization. B) unable to have a significant impact on an organization. C) not worth monitoring and evaluating. D) key functions in strategy implementation. E) key functions in strategy exploitation.

answer

A) uncontrollable by a single organization.

question

Specific results an organization seeks to achieve in pursuing its basic mission are A) strategies. B) rules. C) objectives. D) policies. E) tenets.

answer

C) objectives.

question

Internal ________ are controllable activities in an organization that are performed especially well. A) opportunities B) incompetencies C) strengths D) objectives E) factors

answer

C) strengths

question

What are the means by which long-term objectives will be achieved? A) Strategies B) Strengths C) Weaknesses D) Policies E) Opportunities

answer

A) Strategies

question

Long-term objectives should be all of the following EXCEPT A) measurable. B) continually changing. C) reasonable. D) challenging. E) consistent.

answer

B) continually changing.

question

Annual objectives are especially important in strategy A) reduction. B) formulation. C) implementation. D) evaluation. E) policy.

answer

C) implementation.

question

In which phase of strategic management are long-term objectives especially important? A) Formulation B) Control C) Evaluation D) Implementation E) Management

answer

A) Formulation

question

What are guides to decision making called? A) Strategies B) Rules C) Policies D) Objectives E) Goals

answer

C) Policies

question

The strategic-management process A) occurs once a year. B) is a semiannual process. C) is a continuous process. D) applies mostly to companies with sales greater than $100 million. E) applies mostly to small businesses.

answer

C) is a continuous process.

question

Which of the following is part of the strategic management model? A) Measure and evaluate performance B) Develop mission and vision statements C) Establish long-term objectives D) Implement strategies E) All of the above

answer

E) All of the above

question

Strategic management enables an organization to ________, instead of just responding to threats in its business environment. A) be proactive B) be immune to threats C) avoid responsibility for shaping its future D) relinquish control over its destiny E) be reactive

answer

A) be proactive

question

The act of strengthening employees' sense of effectiveness by encouraging and rewarding them for participating in decision-making and exercising initiative and imagination is referred to as A) authoritarianism. B) proaction. C) empowerment. D) transformation. E) delegation.

answer

C) empowerment.

question

How do line managers become "owners" of the strategy? A) By attending top manager meetings B) By executing plans formulated by other people C) By involvement in the strategic-management process D) By becoming a shareholder of the firm E) By buying off top managers

answer

C) By involvement in the strategic-management process

question

Annually, ________ businesses in the U.S. fail. A) exactly 100 B) less than 1,000 C) about 10,000 D) more than 100,000 E) almost 10 million

answer

D) more than 100,000

question

According to research, organizations using strategic management are ________ than those that do not. A) more profitable B) more complex C) less profitable D) less successful E) less complex

answer

A) more profitable

question

According to Greenley, strategic management offers all of the following benefits EXCEPT A) increased discipline. B) enhanced communication. C) increased synergy. D) increased resistance to change. E) more effective allocation of time and resources.

answer

D) increased resistance to change.

question

Which of the following is NOT a reason given for poor or no strategic planning in an organization? A) Planning is viewed as a waste of time B) Content with current success C) Too busy "firefighting" to plan ahead D) No monetary rewards for planning E) Trust of management makes it unnecessary

answer

E) Trust of management makes it unnecessary

question

All of these are pitfalls an organization should avoid in strategic planning EXCEPT A) using plans as a standard for measuring performance. B) using strategic planning to gain control over decisions and resources. C) failing to involve key employees in all phases of planning. D) too hastily moving from mission development to strategy formulation. E) being so formal in planning that flexibility and creativity are stifled.

answer

A) using plans as a standard for measuring performance.

question

Which of the following is NOT a pitfall an organization should avoid in strategic planning? A) Failing to communicate the plan to employees B) Involving all managers rather than delegating planning to a "planner" C) Top managers not actively supporting the strategic-planning process D) Doing strategic planning only to satisfy accreditation or regulatory requirements E) Failing to create a collaborative climate supportive of change

answer

B) Involving all managers rather than delegating planning to a "planner"

question

Which of the following statements is NOT true? A) Open-mindedness is an important guideline for effective strategic management. B) Strategic management must become a self-perpetuating bureaucratic mechanism. C) No organization has unlimited resources. D) Strategic decisions require trade-offs. E) Strategic management must be a self-reflective learning process.

answer

B) Strategic management must become a self-perpetuating bureaucratic mechanism.

question

All of the following are guidelines for effective strategic planning EXCEPT A) it should be simple and nonroutine. B) it should be a learning process for all managers and employees. C) it should be a paper process more than a people process. D) it should not disregard qualitative information. E) it should not be a formal system for control.

answer

C) it should be a paper process more than a people process.

question

What is NOT a guideline given for effective strategic planning? A) Continually strengthen the "good ethics is good business" policy. B) It should not include jargon or arcane planning language. C) It should not be too formal, predictable, or rigid. D) It should welcome bad news. E) It should be controlled by "technicians."

answer

E) It should be controlled by "technicians."

question

Which of the following statements is FALSE? A) No organization can pursue all the strategies that potentially could benefit the firm. B) Most organizations today recognize that strategic-management concepts and techniques can enhance the effectiveness of decisions. C) A key role of strategists is to facilitate continuous organizational learning and change. D) Effective strategic planning should accept the assumptions underlying the current corporate strategy. E) Even the most technically perfect strategic plan will serve little purpose if it is not implemented.

answer

D) Effective strategic planning should accept the assumptions underlying the current corporate strategy.

question

Terms such as objectives, mission, strengths, and weaknesses were first formulated to address problems A) on the battlefield. B) in the boardroom. C) on the trading floor. D) in the military hierarchy. E) in interpersonal relationships.

answer

A) on the battlefield.

question

According to Webster's New World Dictionary, ________ is "the science of planning and directing large-scale military operations, of maneuvering forces into the most advantageous position prior to actual engagement with the enemy." A) competitive advantage B) war C) strategy D) formulation E) business

answer

C) strategy

question

Business or military success is A) generally the happy result of accidental strategies. B) undermined by the element of surprise. C) the product of both attention to changing external and internal conditions and the insightful adaptations to those conditions. D) unrelated to external conditions. E) none of the above.

answer

C) the product of both attention to changing external and internal conditions and the insightful adaptations to those conditions.

question

Superior strategy formulation and implementation ________ an opponent's superiority in numbers and resources. A) are irrelevant to B) are not enough to surmount C) can overcome D) can lead to E) unite

answer

C) can overcome

question

A strong ________ heritage underlies the study of strategic management. A) military B) government C) political D) social E) cultural

answer

A) military

question

Military strategy is based on an assumption of ________, whereas business strategy is based on an assumption of ________. A) conflict; cooperation B) conflict; competition C) cooperation; conflict D) competition; conflict E) cooperation; competition

answer

B) conflict; competition

question

Both business and military organizations must ________ and ________ to be successful. A) be impervious to change; continually improve B) adapt to change; continually improve C) shun change; stay the course D) be impervious to change; stay the course E) none of the above

answer

B) adapt to change; continually improve

question

The strategic-management process is becoming more widely used by A) small firms. B) nonprofit institutions. C) governmental organizations. D) multinational conglomerates. E) all of the above

answer

E) all of the above

question

Organizations should take a(n) ________ approach in their industry. A) adversarial rather than a collegial B) collegial rather than an adversarial C) reactive rather than a proactive D) proactive rather than a reactive E) cooperative rather than a competitive

answer

D) proactive rather than a reactive

question

The strategic-management process represents a(n) ________, ________, and ________ approach for determining an enterprise's future direction. A) logical; systematic; subjective B) intuitive; disorganized; subjective C) logical; systematic; objective D) intuitive; disorganized; objective E) inconsistent; systematic; subjective

answer

C) logical; systematic; objective

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