question

1) Situation analysis involves the process of A) analyzing the external environment only. B) evaluating the internal aspects of the organization. C) analyzing the current environment of the organization. D) designing and choosing appropriate organizational strategies. E) None of the answer choices is correct.

answer

analyzing the current environment of the organization.

question

2) Theories developed about the efficiency and effectiveness of organizations were written by A) Frederick Taylor. B) Max Weber. C) Chester Barnard. D) All of the answer choices are correct. E) None of the answer choices is correct.

answer

Frederick Taylor, Max Weber, and Chester Barnard.

question

3) Examples of an organization's functional units include all of the following except A) competencies. B) research and development. C) marketing. D) production. E) All of the answer choices are correct.

answer

competencies.

question

4) One strategic responsibility of managers and employees at other levels throughout the organization is A) strategy formulation. B) situation analysis. C) strategy implementation. D) developing the organization's vision. E) None of the answer choices is correct.

answer

strategy implementation

question

5) Bases for understanding strategic management are all of the following except A) single approaches to strategy development are superior to multiple approaches. B) all organizations encounter changing situations. C) managing strategically makes a difference in an organization's performance. D) All of the answer choices are correct. E) None of the answer choices is correct.

answer

single approaches to strategy development are superior to multiple approaches.

question

6) An example of a corporate strategy would involve A) the decision to increase the price of the Hummer. B) the decision to combine marketing functions in the Northeast and the Southeast. C) the decision to spin Taco Bell off from Pepsi. D) the decision to increase the advertising budget for Coca-Cola. E) None of the answer choices is correct.

answer

the decision to spin Taco Bell off from Pepsi.

question

7) The board of directors in an organization A) is responsible for the implementation of the organization's operating activities. B) serves in the role of executive management. C) plays a significant role in corporate governance. D) is not an important part of the organization's strategic development. E) None of the answer choices is correct.

answer

plays a significant role in corporate governance.

question

8) Mr. Smith has been summoned to the next No Leaks Plumbing's, a publicly-held company, Board of Directors' meeting to explain why his new delivery strategy has cost the company $10,000. This is an example of which of the following Board of Directors responsibilities? A) Overseeing the company's management B) Governing the organization's decisions and actions C) Protecting the interests of the shareholders D) All of the answer choices are correct. E) None of the answer choices is correct.

answer

All of the answer choices are correct.

question

9) An organization's strategies should be designed so that they incorporate A) opportunities, threats, resources, and capabilities. B) opportunities and threats. C) resources and capabilities. D) only traditional values of past organizations. E) None of the answer choices is correct.

answer

opportunities, threats, resources, and capabilities.

question

10) The Sarbanes-Oxley Act of 2002 is a U.S. federal law designed to protect investors by improving the accuracy and reliability of A) the corporate vision. B) the corporate mission. C) the balanced scorecard. D) corporate disclosures. E) All of the answer choices are correct.

answer

corporate disclosures.

question

11) Mr. Smith has been losing money on the free delivery of orders more than $1,000 and is determining if there are other ways to outcompete his largest competitor. Mr. Smith is at which of the following steps in the strategic management process? A) Strategy implementation B) Strategy reformulation C) Strategy formulation D) Strategy evaluation E) Situation analysis

answer

Strategy evaluation

question

12) Which of the following is not a major element of the strategic management process? A) Assigning administrative tasks B) Undertaking a situation analysis C) Implementing strategy D) Evaluating strategy E) Formulating strategy

answer

Assigning administrative tasks

question

13) The ability to access information with great speed reflects the impact of A) globalization. B) the information revolution. C) technological advances and breakthroughs. D) All of the answer choices are correct. E) None of the answer choices is correct.

answer

the information revolution.

question

14) Instant interactivity reflects the environment of A) vanishing distance. B) constant change. C) reduced need for physical assets. D) compressed time. E) All of the answer choices are correct.

answer

compressed time.

question

15) Ethics is both a(n) ________ and ________ issue and should be part of the strategic management process A) personal; organizational B) inconsequential; organizational C) organizational; contemporary D) None of the answer choices is correct. E) All of the answer choices are correct.

answer

personal; organizational

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16) Which of the following is a characteristic of a world-class organization? A) A functional organizational structure B) A bureaucratic organization structure C) A strong marketing department D) A strong customer focus E) An authoritarian climate

answer

A strong customer focus

question

17) An example of ethical behavior by an organization would be A) a toy company that makes products that might be life threatening. B) a company that develops a fund-raising campaign that would help its primary consumer group. C) a chemical company dumping toxic waste into a lake. D) a cigarette manufacturer that fails to warn potential consumers about the hazards of tobacco. E) None of the answer choices is correct.

answer

a company that develops a fund-raising campaign that would help its primary consumer group.

question

18) Purchasing and sending electronic greeting cards through a web site could represent a(n) ________ for a traditional greeting card company like Hallmark A) stable vision B) physical change C) organizational change D) All of the answer choices are correct. E) None of the answer choices is correct.

answer

organizational change

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19) ________ is the determination of the broad uses to which organizational resources will be deployed and the resolution of conflicts among the myriad of participants in organizations A) Objectives B) Vision C) Mission D) Goals E) Corporate governance

answer

Corporate governance

question

20) Strategy concepts have been utilized outside of businesses in A) chess. B) the military. C) games such as Battleship. D) All of the answer choices are correct. E) None of the answer choices is correct.

answer

chess, the military, games such as Battleship.

question

21) The organization type which first utilized strategy is A) the retail organization. B) the entertainment organization. C) the military organization. D) All of the answer choices are correct. E) None of the answer choices is correct.

answer

the military organization.

question

22) ________ and ________ are critical to strategic success in the new business environment A) Formulation; innovation B) Innovation; creativity C) Turbulence; stagnation D) All of the answer choices are correct. E) None of the answer choices is correct

answer

Innovation; creativity

question

23) As you are studying Picture Perfect Painting's context, it seems clear that the company will have to prepare itself for continual turbulence and change. Which of the following best describes the driving forces for change that could affect the company's future? A) Vanishing distance and compressed time B) Increased vulnerability C) Reduced need for physical assets D) All of the answer choices are correct. E) None of the answer choices is correct.

answer

Vanishing distance and compressed time

question

24) Which of the following is not a characteristic of strategic management that makes it different from other types of management? A) It is interdisciplinary. B) It concerns the present direction of the organization. C) It has an external focus. D) It has an internal focus. E) None of the answer choices is correct

answer

It concerns the present direction of the organization.

question

25) ________ is defined as a structured transition in what an organization does and how it does it A) Organizational change B) Strategic management C) Globalization D) Strategy E) Technology

answer

Organizational change

question

26) Functional strategies are the goal-directed plans and actions of the organization's various functional departments

answer

FALSE

question

27) Preparation of strategic plans are a typical board responsibility

answer

FALSE

question

28) Companies that use strategic management tend to have higher levels of performance.

answer

TRUE

question

29) Strategy involves only the examination of an organization's goals.

answer

FALSE

question

30) Strategy should be developed from a number of approaches rather than a single approach.

answer

TRUE

question

31) Business strategies are concerned with the broad and more long-term choices of "what business(es) are we in or do we want to be in, and what do we want to do with these businesses?"

answer

FALSE

question

32) Significant changes in legal mandates, investor activism, and corporate strategy have changed the roles of many boards in the strategic management process.

answer

TRUE

question

33) The fields of economics and organization studies provided the earliest academic bases for strategic management.

answer

TRUE

question

34) An organization's strategy is its goal-directed decisions and actions in which its capabilities and resources are matched with the opportunities and threats in its environment.

answer

TRUE

question

35) Strategy implementation is the process of evaluating how the strategy has been implemented, as well as the outcomes of the strategy.

answer

FALSE

question

36) The Surprise Principle of War calls for striking at the enemy at a time or a place that's unexpected.

answer

TRUE

question

37) An organization's simple action can be considered a strategy.

answer

FALSE

question

38) In the industrial organization (I/O) view, the focus of strategic analysis is on the internal situation of the organization.

answer

FALSE

question

39) Ethics involves the principles that define right and wrong decisions and behavior in a work setting

answer

TRUE

question

40) The industrial organization (I/O) view proposes that an organization's competitive advantage is only temporary and can be gained only by peppering the competitive marketplace with rapid radical surprises.

answer

FALSE

question

41) An organizational vision is a broad comprehensive picture of what a leader wants an organization to become.

answer

TRUE

question

42) Factors critical to success in the new business environment are the ability to embrace change, creativity and innovation capabilities, and being a world-class organization.

answer

TRUE

question

43) The resource-based view focuses on the structural forces within an industry, the firm's competitive environment, and how these influence competitive advantage.

answer

TRUE

question

44) A situation analysis is the first step in the sequential strategic management process

answer

TRUE

question

45) Strategy formulation is the responsibility of managers and employees at other levels throughout the organization.

answer

FALSE

question

46) The CEO's typical role is that of the chief strategist.

answer

TRUE

question

47) Milton Friedman is an advocate of a contemporary view of social responsibility.

answer

FALSE

question

48) Technology has significantly impacted how a creative idea is turned into a product or process that can be used or sold.

answer

TRUE

question

49) A company's board of directors' legal obligation is to represent the shareholders and protect their interests

answer

TRUE

question

50) Globalization is one of the driving forces in the twenty-first century business environment

answer

TRUE

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