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

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

answer

FALSE

question

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

answer

FALSE

question

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

answer

FALSE

question

To be effective, strategic-management must be a process that familiarizes managers and employees with the key strategic issues facing an organization and the feasible alternatives for resolving those issues.

answer

TRUE

question

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

answer

TRUE

question

The strengths and weaknesses of an organization are determined relative to the strengths and weaknesses of its competitors.

answer

TRUE

question

The decision to merge is a strategy-formulation issue but the decision to form a joint venture is a strategy-implementation issue.

answer

FALSE

question

The final stage in strategic management is strategy implementation.

answer

FALSE

question

One of the fundamental strategy evaluation activities is reviewing the external and internal factors on which strategies are based.

answer

TRUE

question

Analytical and intuitive thinking complement each other.

answer

TRUE

question

According to Peter Drucker, "Imagination is more important than knowledge, because knowledge is limited, whereas imagination embraces the entire world."

answer

FALSE

question

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

answer

FALSE

question

The terms strategic management and strategic planning are used synonymously in this text.

answer

TRUE

question

A vision statement describes an organization's values and priorities.

answer

FALSE

question

Middle managers are generally the most visible and critical of all strategic managers.

answer

FALSE

question

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

answer

FALSE

question

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

answer

TRUE

question

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

answer

TRUE

question

Annual objectives are especially important in strategy formulation.

answer

FALSE

question

Determining opportunities and threats is generally the first step in strategic planning.

answer

FALSE

question

The best approach for strategists is to carefully develop strategic plans themselves and then present them to operating managers to execute.

answer

FALSE

question

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

answer

TRUE

question

Firms can be more proactive with strategic management.

answer

TRUE

question

Once a firm acquires a competitive advantage, it is usually able to sustain it indefinitely.

answer

FALSE

question

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

answer

FALSE

question

Substantial research indicates that a healthier workforce can more effectively and efficiently implement strategies.

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

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

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

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

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

What step in the strategic management 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

With which phase of strategic management is most strongly associated with "action"? a.) Strategy formulation b.) Strategy implementation c.) Strategy evaluation d.) Competing advantages e.) Measures performance

answer

b.) Strategy implementation

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 formulation e.) firms have limited resources

answer

a.) internal and external factors are constantly changing

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

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

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

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

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

What are guides to decision making that address repetitive or recurring situations called? a.) Strategies b.) Rules c.) Policies d.) Objectives e.) Goals

answer

c.) policies

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

How do line managers become "owners" of the strategy? a.) By attending top managers 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

Organizations using strategic management are generally _____ 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

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 super centers d.) operating stores with less square footage e.) cutting back on their online presence

answer

d.) operating stores with less square footage

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 location 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 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

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

Terms such as objectives, missions, 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

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

A strong _____ heritage underlies the study of strategic management. a.) military b.) government c.) political d.) social e.) cultural

answer

a.) military

question

Both business and military organizations must _____ and _____ to be successful a.) be impervious to change; continually change b.) adapt to change; constantly 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; constantly improve

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