Deck 1: Strategic Management Essentials

Question 1

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

Answer 1

True

Question 2

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 2

True

Question 3

An organization should take a(n)________ approach in its 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 3

D

Question 4

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

Question 5

Despite its great popularity in the 1980s,strategic planning by corporate America is now a valuable though rare activity.

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

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.

Question 11

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

Question 12

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

Question 13

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.

Question 14

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

Question 15

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

Question 16

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

Question 17

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.

Question 18

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 United States is unrivaled by other companies in all industries.
E)made the real flow of financial activity align with political boundaries between countries.

Question 19

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

Question 20

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

Question 21

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

Question 22

In which phase of strategic management are annual objectives are especially important?

A)Reduction
B)Formulation
C)Implementation
D)Evaluation
E)Policy

Question 23

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

Question 24

Discuss some forces that influence the formality of the strategic-management process.

Question 25

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

Question 26

Strategy implementation is often considered to be the most difficult stage in the strategic-management process.

Question 27

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.

Question 28

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

Question 29

What types of skills are especially critical for successful strategy implementation?

A)Interpersonal
B)Marketing
C)Technical
D)Conceptual
E)Visionary

Question 30

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

Question 31

The final stage in strategic management is strategy implementation.

Question 32

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

Question 33

________ is NOT a strategy-implementation activity.

A)Taking corrective actions
B)Establishing annual objectives
C)Devising policies
D)Allocating resources
E)Motivating employees

Question 34

In which phase of strategic management are long-term objectives especially important?

A)Formulation
B)Control
C)Evaluation
D)Implementation
E)Management

Question 35

In most large organizations that engage in strategic management,the formulation,implementation,and evaluation of strategy activities occur at three hierarchical levels: corporate;divisional or strategic business unit;and functional.

Question 36

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

Question 37

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

Question 38

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

Question 39

Compare and contrast strategic planning with strategic management.

Question 40

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)Measuring performance

Question 41

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

Question 42

Analytical and intuitive thinking complement each other.

Question 43

Long-term objectives should be all of the following EXCEPT

A)measurable.
B)continually changing.
C)reasonable.
D)challenging.
E)consistent.

Question 44

What are enduring statements of purpose that distinguish one business from other similar firms?

A)Policies
B)Mission statements
C)Objectives
D)Rules
E)Employee conduct guidelines

Question 45

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

Question 46

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

Question 47

Which stage in the strategic-management process is the most difficult? Explain why.

Question 48

Discuss the value of integrating intuition and analysis.

Question 49

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.

Question 50

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.

Question 51

What are guides to decision making that address repetitive or recurring situations called?

A)Strategies
B)Rules
C)Policies
D)Objectives
E)Goals

Question 52

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

Question 53

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

Question 54

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

Question 55

Internal ________ are controllable activities in an organization that are performed especially well.

A)opportunities
B)incompetencies
C)strengths
D)objectives
E)factors

Question 56

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."

Question 57

What are the means by which long-term objectives will be achieved?

A)Strategies
B)Strengths
C)Weaknesses
D)Policies
E)Opportunities

Question 58

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.

Question 59

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

Question 60

Specific results an organization seeks to achieve in pursuing its basic mission are

A)strategies.
B)rules.
C)objectives.
D)policies.
E)tenets.

Question 61

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

Question 62

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

Question 63

Discuss the differences between vision and mission statements.

Question 64

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

Question 65

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

Question 66

Which of the following is often 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

Question 67

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

Question 68

Because the position of Chief Executive Officer (CEO)has assumed much responsibility for strategic management in the last five years,the number of firms with the position of Chief Strategy Officer (CSO)has diminished drastically during this period.

Question 69

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

Question 70

Annual objectives are especially important in strategy formulation.

Question 71

Explain who strategists are and what they do in an organization.

Question 72

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

Question 73

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?"

Question 74

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

Question 75

Annually,________ businesses in the United States fail.

A)exactly 100
B)less than 1,000
C)about 10,000
D)more than 100,000
E)almost 10 million

Question 76

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

Question 77

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

Question 78

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

Question 79

By the nature of what they do,strategists tend to have similar attitudes,values,ethics and concerns for social responsibility.

Question 80

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