Deck 1: Fundamentals of Strategic Management

Question 1

According to the strategic management model,strategic control occurs before strategy formulation.

Answer 1

False

Question 2

An effective strategy is built on the foundation of the organization's comparative advantage,the mechanism whereby the organization seeks to earn a profit by selling its goods.

Answer 2

False

Question 3

Which of the following is not one of the steps in the strategic management process?

A)Execute the strategy
B)Control the strategy as necessary
C)Conduct an internal analysis
D)All of the above are steps in the strategic management process.

Answer 3

D

Question 4

The industrial organization perspective on firm performance emphasizes the fit between the firm and its environment.

Question 5

The contingency theory perspective on firm performance emphasizes the structure of the industry.

Question 6

The concept of strategic management includes

A)top management's analysis of the environment in which the organization operate
B)the plan for strategy execution
C)strategic control efforts.
D)All of the above

Question 7

The mechanism whereby the organization seeks to earn a profit by selling its goods is known as

A)comparative advantage.
B)competitive advantage.
C)the business model.
D)none of the above

Question 8

The notion of strategy assumes

A)that an organization has a plan.
B)that an organization's strategic managers understand the source of its competitive advantage.
C)that the organization's members understand the reason for its existence.
D)All of the above.

Question 9

Most strategic management scholars have endorsed an "artistic" perspective on strategy formulation.

Question 10

Identifying a firm's business model is rarely difficult in general terms,but can become more complex when intricate details are considered.

Question 11

A firm's ability to enjoy strategic benefits over an extended period of time is known as strategic positioning.

Question 12

The chief executive is held responsible for the effects of strategic decisions.

Question 13

The notion of strategy assumes

A)that experts in strategic planning are employed by the organization.
B)that managers have time to develop formal strategic plans.
C)that the organizational already has a plan.
D)All of the above.

Question 14

Managers who are too busy to engage in strategic planning should wait until they have more free time in their schedules.

Question 15

The gap between intended and realized strategies usually results from middle management ineffectiveness.

Question 16

Both industrial organization theory and resource-based theory are incorporated into the case analysis process.

Question 17

Resource-based theory primarily focuses on individual firms rather than the competitive environment.

Question 18

Corporate governance refers to the board of directors,institutional investors,and large shareholders known as blockholders who monitor firm strategies.

Question 19

Strategic decisions may be short-term or long-term in focus.

Question 20

The term strategy refers primarily to activities at the top level of the organization.

Question 21

Which of the following perspectives assumes that industry structure is the primary influence on firm performance?

A)Industrial organization theory
B)Resource-based theory
C)Contingency theory
D)None of the above

Question 22

If intended strategies are often not realized,then why should top managers invest time and energy into the strategic management process?

Question 23

Should steps in the strategic management process be completed sequentially?

Question 24

Strategic decisions are

A)usually made by the top executive alone.
B)the responsibility of the top executive.
C)generally subject to middle management approval.
D)All of the above

Question 25

Which of the three major theoretical influences--industrial organization (IO)theory,resource-based theory,and contingency theory--provides the most accurate perspective on firm performance.Provide examples to support your answer.

Question 26

Which of the following is not a factor usually associated with an effective strategy?

A)The strategy is consistent with them mission and the goals of the organization.
B)Plans for putting the strategy into action are designed with specificity before it is implemented.
C)Strategic managers understand how the organization's resources translate into strengths and weaknesses.
D)All of the above are factors usually associated with an effective strategy.

Question 27

Who makes strategic decisions? Who is responsible for the outcomes? Explain.

Question 28

Which of the following is not a factor usually associated with an effective strategy?

A)Top managers rely on outside strategic planners for creativity and analysis.
B)Plans for putting the strategy into action are designed with specificity before it is implemented.
C)Strategic managers understand how the organization's resources translate into strengths and weaknesses.
D)Possible future changes in the proposed strategy are evaluated before the strategy is adopted.

Question 29

Top management teams

A)tend to include fewer managers in centralized organizations.
B)usually include mostly top level managers.
C)may include non-managers.
D)All of the above.

Question 30

Which of the following perspectives may be viewed as a "middle ground" between the other two?

A)Industrial organization theory
B)Resource-based theory
C)Contingency theory
D)None of the above

Question 31

The strategy actually implemented by management is known as the

A)intended strategy.
B)emergent strategy.
C)realized strategy.
D)effective strategy.

Question 32

Top management teams

A)usually make better decisions as a group than the CEO could make alone.
B)may include middle managers.
C)may include members of the board of directors.
D)All of the above.

Question 33

Which of the following perspectives assumes that the firm's unique combination of strategic resources is the primary influence on firm performance?

A)Industrial organization theory
B)Resource-based theory
C)Contingency theory
D)None of the above

Question 34

Which of the following distinctions is not associated with strategic decision-making?

A)It represents a systematic,comprehensive analysis.
B)It involves choices.
C)It is both short-term and long-term oriented.
D)It is distinctively opportunistic.

Question 35

Which of the following distinctions is not typically associated with strategic decision-making?

A)It represents a systematic,comprehensive analysis.
B)It involves choices.
C)It is long-term oriented.
D)It involves decisions made by the CEO,not the top management team.

Question 36

Which strategic planning approach has been endorsed by most strategy scholars?

A)Conceptual perspective
B)Artistic perspective
C)Scientific perspective
D)None of the above.

Question 37

The strategy originally planned by management is known as the

A)purposed strategy.
B)intended strategy.
C)realized strategy.
D)impact strategy.

Question 38

A gap between the intended and realized strategies

A)rarely exists.
B)exists only when management does a poor job of research.
C)suggests middle management ineffectiveness.
D)None of the above.

Question 39

According to the scientific perspective of strategic planning,

A)strategy formulation is not as critical as strategy execution.
B)the business environment is seen as largely objective,analyzable,and at least somewhat predictable.
C)creativity is vital and can only be generated when flexibility is applied to the strategy process.
D)All of the above.

Question 40

Should strategic managers adopt a scientific perspective or an artistic perspective on strategy? Explain.