question

Which one of the following is an example of a narrow scope in a mission?

answer

computers (VS office equipment)

question

The theory that proposes organization can and do adapt to changing conditions by imitating other successful organizations is known as

answer

institution theory

question

The organization's corporate mission statement

answer

should set the organization apart from its competitors

question

General Electric led the transition from strategic planning to strategic management during the 1980s (T/F)

answer

true

question

Which of the following is an example of a corporate strategy?

answer

diversify product line to appeal to more people

question

According to organizational learning theory, an organization uses knowledge to improve the fit between itself and its environment (T/F)

answer

true

question

Which one of the following is included in the firm's societal environment?

answer

economic forces

question

An example of an objective is "increased profitability" while an example of a goal is "to increase profitability in 2010 by 15% over 2009" (T/F)

answer

false

question

As a part of the strategic management process, evaluation and control is concerned with all of the following EXCEPT

answer

determining top management compensation

question

Which of the following is an example of a policy?

answer

pay highest salary to keep high quality employees

question

The ability of an organization to reshape its environment is described by

answer

the strategic choice perspective

question

Research done by Henry Mintzberg suggests that strategy formulation

answer

is typically an irregular and a discontinuous process

question

The time horizon involved with regard to basic financial planning is usually

answer

one year

question

One tenet of the learning organization is to maintain stability (T/F)

answer

false

question

In the externally oriented planning phase, plans are developed by heavily involving the input of managers from lower levels (T/F)

answer

false

question

The currency used to integrate the monetary systems of the European Union (EU) is called the

answer

euro

question

A goal differs from an objective because it

answer

is open-ended

question

The goal of NAFTA is complete economic integration (T/F)

answer

false

question

The strategic audit is an all-inclusive list of critical questions needed for a detailed strategic analysis of any business (T/F)

answer

false

question

While there are litigation and physical risks to companies as a result of climate change, there is no risk currently identified to the company on its overall reputation (T/F)

answer

false

question

The monitoring, evaluating, and disseminating of information form the external and internal environments to key people within the corporation is referred to as

answer

environmental scanning

question

Climate change has become a growing concern for businesses to include in their corporate strategies (T/F)

answer

true

question

The corporate missions is best described by which one of the following?

answer

the purpose or reason for the corporation's existence

question

A large, multidivisional business has three levels in its hierarchy of strategy:

answer

corporate, business, and functional

question

Which of the following is an example of an objective?

answer

increase sales by 10% over last year

question

All of the following reflect activities of a learning organization EXCEPT

answer

alienating competitors in the industry

question

Strategic management is that set of managerial decisions and actions that determine the long-run performance of a corporation. Which one of the following is NOT one of the basic elements of the strategic management process?

answer

statistical process control

question

The regional trade association composed of Argentina, Brazil, Uruguay, and Paraguay is called

answer

mercosur

question

According to Alfred Chandler

answer

all of the above

question

A budget is a statement of a corporation's programs in dollar terms. Which if NOT true of the budgetary function?

answer

only one budget is necessary to capture all programs

question

Performance results are monitored at the strategy formulation phase of the strategic management process (T/F)

answer

false

question

The emphasis of strategic management is on

answer

monitoring and evaluation external opportunities and threats in light of a corporation's strengths and weaknesses

question

One of the benefits of strategic management is a clearer sense of vision for the firm (T/F)

answer

true

question

All of the following reflect categories of organizational risk as a result of climate change EXCEPT

answer

sustainability risk

question

The task environment

answer

includes those elements of groups within an organization's industry

question

One member of the European Union (EU) is Chile (T/F)

answer

false

question

The mode of strategy formulation used when top management has a reasonably clear idea of the corporation's mission and objectives, but it chooses to develop a series of tentative or partial strategies instead of developing full blown strategies is called

answer

logical incrementalism

question

Mintzberg's entrepreneurial mode is sometimes referred to as "muddling through" since this decision making mode tends to be more reactive than proactive in the search for new opportunities (T/F)

answer

false

question

The type of strategy which describes a company's overall direction in terms of its general attitude toward growth and the management of its various businesses and product line is

answer

corporate

question

As more industries become global, strategic management is becoming less important in positioning a company for long-term competitive advantage (T/F)

answer

false

question

The internal environment includes the variables of opportunities and threats (T/F)

answer

false

question

The process by which strategies and policies are put into action through the development of programs, budgets, and procedures is

answer

strategy implementation

question

Research indicates that a broad missions statement may be best in a turbulent environment (T/F)

answer

false

question

Research of the planning practices of companies in the oil industry concluded that the real value of modern strategic planning is more

answer

in strategic thinking and organizational learning

question

A hierarchy of strategy emphasized the need for the three levels of strategy to complement and support one another (T/F)

answer

true

question

A business strategy may include competitive or cooperative strategies (T/F)

answer

false

question

Strategic planning in a multidivisional corporation

answer

should be a formalized and sophisticated system

question

Punctuated equilibrium described organizations as evolving through relatively long periods of stability punctuated by relatively short bursts of fundamental change (T/F)

answer

true

question

Strategic flexibility is the ability to shift from one dominant strategy to another (T/F)

answer

true

question

Which of the following is an example of a mission statement?

answer

develop and sell quality appliances worldwide

question

Which one of the following is included in the firm's task environment?

answer

stockholders

question

Logical incrementalism is a useful decision making mode when the environment is rapidly changing and when it is important to build consensus (T/F)

answer

true

question

Member of the European Union (EU) include all of the following EXCEPT

answer

malaysia

question

In the final phase of strategic management, strategic information is available to

answer

people throughout the organization

question

Corporate strategy occurs at the business unit or product level (T/F)

answer

false

question

One of the benefits of globalization is

answer

economies of scale

question

The type of strategy which achieves corporate and business unit objectives and strategies by maximizing resource productivity is

answer

functional

question

Which of the following is an example of a program?

answer

reduce final assembly time to three days by having suppliers build plan sections

question

Canada, the United States, and Mexico are affiliated economically under which trade alliance?

answer

NAFTA

question

Which theory proposes that once an organization is successfully established in a particular environmental niche, it is unable to adapt to changing conditions?

answer

population ecology

question

Strategic planning within a small organization

answer

may be informal or irregular

question

Population ecology is a theory that proposes organizations can and do adapt to change by imitating other successful organizations (T/F)

answer

false

question

A checklist of questions, by area or issue that enables a systematic analysis to be made of various corporate functions and activities is referred to as a/an

answer

strategic audit

question

The Strategic Management Model presents the following process of strategy formulation:

answer

mission, objective, strategies, and policies

question

The ability of a corporation to shift from one dominant strategy to another is called

answer

strategic flexibility

question

IBM under CEO Louis Gerstner and his strategic decision to invest in services in 1993, is an example of which mode of strategic decision making?

answer

planning

question

As defined in this course, a policy is

answer

a broad guideline for making decisions that links the formulation of strategy with its implementation

question

According to Henry Mintzberg, the three most typical approaches to strategic decision making are

answer

entrepreneurial, adaptive, and planning

question

The S in S.W.O.T. stands for

answer

strengths

question

The T in S.W.O.T. stands for

answer

threats

question

The integrated internationalization of markets and corporations is called

answer

globalization

question

Environmental sustainability reflects business practices to reduce a firm's impact on the physical environment (T/F)

answer

true

question

The development of long range plans for the effective management of environmental opportunities and threats in light of corporate strengths and weaknesses is known as

answer

strategy formulation

question

Research suggests that strategic management evolves through four sequential phases in corporations. The first phase is

answer

basic financial planning

question

A strategic decisions is rare, consequential, and directive (T/F)

answer

false

question

Strategic Management includes:

answer

internal and external environment scanning, strategy formulation, strategy implementations, and evaluation and control

question

Phases of Strategic Management

answer

1. basic financial planning, 2. forecast-based planning, 3. externally oriented strategic planning, and 4. strategic management

question

Benefits of Strategic Management

answer

clearer sense of strategic vision for the firm, sharper focus on what is strategically important, and improved understanding of a rapidly changing environment

question

Risk of Climate Change include

answer

regulatory risk, supply chain risk, product and technology risk, litigation risk, repetitional risk, and physical risk

question

Learning Organization

answer

an organization skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights

question

Main activities of a learning organization include

answer

solving problems systematically, experimenting with new approaches, learning form past experience, history, and experiences of others, and transferring knowledge quickly and easily throughout the organization

question

Vision

answer

describes what the organization would like to become

question

Objectives

answer

the end results of planned activities

question

Strategies

answer

form a comprehensive master plan that states how the corporation will achieve its mission and objectives (corporate, business, and functional)

question

Evaluation and Control

answer

the process in which corporate activities and performance results are monitored so that actual performance can be compared to desired performance

question

Feedback/ Learning Process

answer

revise or correct decisions based on performance

question

Triggering Event

answer

something that acts as a stimulus for a change if strategy and can include: new CEO, external intervention, threat of change of ownership, performance gap, and strategic inflection point

question

Characteristics of Strategic Decision making include:

answer

rare, consequential, and directive

question

Strategic Decisions Making Process

answer

evaluate current performance results, reviewing corporate governance, scan and assess the external environment, scan and assess the internal corporate environment, analyze strategic (SWOT) factors, generate, evaluate and select the best alternative strategy, implement selected strategies, and evaluate implemented strategies

question

The real value of strategic planning is ___ and ___

answer

strategic thinking; organizational learning

question

Organizations that engage in strategic management generally do not outperform those that do not (T/F)

answer

false

question

The Phase Three of strategic management, externally-oriented planning, planning is given directly to lower-level managers as top management attempts to involve itself less (T/F)

answer

false

question

Many companies today are becoming more horizontally managed, interactive organization while attempting to adapt more quickly to changing conditions by becoming "learning organizations" (T/F)

answer

true

question

The effects of climate change on industries and companies throughout the world can be grounded into six categories of risks. among these risks is

answer

all of the above

question

A business strategy describes a company's overall direction in terms of its general attitude toward growth and the management of its various businesses and product lines (T/F)

answer

false

question

Strategic decisions must be made by a conglomerate or group and must occur over an extended period of careful considerations (T/F)

answer

true

question

The decision making mode that is characterized by a focus on opportunities and in which problems are secondary is the ___ mode of strategic decision making

answer

entrepreneurial

question

A strategic audit includes an evaluation of current performance, environmental scanning, strategy formulation, strategy implementations, and evaluation control (T/F)

answer

true

question

Each question in a particular area of strategic audit must be ver specific to ensure that there in not a further dissection of any one question into additional sub questions (T/F)

answer

false

question

The greater the level of planning intensity, the greater the level of financial performance (T/F)

answer

true

question

Procedures are a system of sequential steps or techniques that describe in detail how a particular task or job is to be done (T/F)

answer

true

question

A simple statement, such as "increased profitability", is an objective, not a goal (T/F)

answer

false

question

Most large organizations are set up through frequent evaluation periods which fundamental change in implemented (T/F)

answer

false

question

The decision making mode that involves the systematic gathering of appropriate information for situations analysis, the generation of feasible alternative strategies and the rational selection of the most appropriate strategy is the ___ mode of strategic decision making

answer

planning

question

Strategic decision making modes are entrepreneurial, adaptive, planning, and logical incrementalism (T/F)

answer

true

question

Unlike many other decisions, strategic decisions deal with the long run future of an entire organization (T/F)

answer

true

question

A ___ is a type of management diagnostic tool to pin point corporate wide problem areas and to highlight organizational strengths and weaknesses

answer

strategic audit

question

To be effective, strategic management must be a formal process (T/F)

answer

false

question

A difference between basic financial planning and forecasting based planning is

answer

forecast based planning incorporates internal and external information

question

The variables structure, culture, and resources pertain to the

answer

internal environment

question

Top-down planning that emphasizes formal strategy formulation and leaves the implementation issues to lower level management is known as

answer

externally oriented planning

question

Knowing a company is mindful of its impact on the environment seldom changes consumer buying habits (T/F)

answer

false

question

Which of the following is NOT a part of strategy implementation?

answer

performance evaluation

question

In a survey of 50 corporations, which of the following was rated as a benefits of strategic management?

answer

clear sense of vision for the firm

question

The type os strategy which emphasizes the improvement of the competitive position of a corporations products or services in a particular industry or market segment served by a business unit is

answer

business

question

Which of the following statements is NOT true of strategic inflection point?

answer

a new CEO is an example of a strategic inflection point

MGMT 4303 – Chapter 1 – Flashcards

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