Deck 1: The Nature of Strategic Management

Question 1

Principles of conduct that guide decision- making are known as

A)human rights.
B)the Constitution.
C)social responsibility requirements.
D)nonprofit organization policies.
E)business ethics.

Answer 1

E

Question 2

Which of the following statements is false?

A)No organization has unlimited resources.
B)Strategic decisions require trade- offs.
C)Strategic management must be a self- reflective learning process.
D)Open- mindedness is an important guideline for effective strategic management.
E)Strategic management must become a self- perpetuating socialist mechanism.

Answer 2

E

Question 3

can best be described as short- term in nature.

A)Tenure
B)Management
C)Mission statements
D)Strategies
E)Annual objectives

Answer 3

E

Question 4

What is the correct term for the enduring statements of purpose that distinguish one business from others that are similar?

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

Question 5

Which of the following is not included in the strategic management model?

A)Implementing strategies.
B)Developing mission and vision statements.
C)Measuring and evaluating performance.
D)Performing internal research to identify customers.
E)Establishing long- term objectives.

Question 6

Who is the world's top producer of cars?

A)Ford
B)Hyundai
C)Toyota
D)Honda
E)General Motors

Question 7

All of these are pitfalls an organization should avoid in strategic planning except

A)using plans as a standard for measuring performance.
B)being so formal in planning that flexibility and creativity are stifled.
C)failing to involve key employees in all phases of planning.
D)too hastily moving from mission development to strategy formulation.
E)using strategic planning to gain control over decisions and resources.

Question 8

The trends in newspaper circulation in the United States provide support for which statement?

A)Sustainable competitive advantage is easy to maintain.
B)Most competitive advantages are hard to sustain.
C)Competition is generally good for companies and consumers.
D)Some products are relatively immune to changes in the external environment.
E)Several firms can have similar competitive advantages.

Question 9

The first step in strategic planning is generally

A)developing a mission statement.
B)determining opportunities and threats.
C)developing a vision statement.
D)making a profit.
E)establishing goals and objectives.

Question 10

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

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

Question 11

Strategic management enables an organization to ,instead of companies just responding to threats in their business environment.

A)be proactive
B)foresee into the future
C)determine when the threat will subside
D)defeat their competitors
E)avoid the threats

Question 12

Usually,external opportunities and threats are

A)key functions in strategy implementation.
B)controlled by governments.
C)not as important as internal strengths and weaknesses.
D)uncontrollable by a single organization.
E)key functions in strategy exploitation.

Question 13

What percent of total sales are estimated to be completed online by 2016?

A)15 percent
B)7 percent
C)60 percent
D)85 percent
E)20 percent

Question 14

Long- term objectives should be all of the following except

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

Question 15

Which of the following is not a reason given for poor or no strategic planning in organizations?

A)Being content with success
B)Trust of management
C)Poor reward structure
D)Wasting time
E)Fire- fighting

Question 16

Anything that a firm does especially well compared to rival firms is referred to as

A)competitive advantage.
B)comparative advantage.
C)an external opportunity.
D)opportunity cost.
E)sustainable advantage.

Question 17

The one factor that has most significantly impacted the nature and core of buying and selling in nearly all industries has been

A)the government.
B)corporate greed.
C)customer and employee focus.
D)the Internet.
E)political borders.

Question 18

During which stage of strategic management is a firm's specific internal strengths and weaknesses determined?

A)Formulation
B)Feedback
C)Implementation
D)Goal- setting
E)Evaluation

Question 19

The strategic- management process

A)is a continuous process.
B)occurs once a year.
C)applies mostly to companies with sales greater than $100 million.
D)applies mostly to small businesses.
E)is a sequential process.

Question 20

Which of the following is not a pitfall an organization should avoid in strategic planning?

A)Involving all managers rather than delegating planning to a "planner".
B)Failing to communicate the plan to employees.
C)Doing strategic planning only to satisfy accreditation or regulatory requirements.
D)Top managers not actively supporting the strategic planning process.
E)None of the above

Question 21

What can be created by ethics training and an ethics culture?

A)Comparative advantage
B)Competitive responsibility
C)Competitive advantage
D)Strategic advantage
E)Employee cooperation

Question 22

How do line managers become "owners" of the strategy?

A)By buying off top managers
B)By involvement in the strategic- management process
C)By attending top manager meetings
D)By becoming a shareholder of the firm
E)By gathering information about competitors

Question 23

Which phase of strategic management is called the action phase?

A)Strategy evaluation
B)Strategy implementation
C)Measuring performance
D)Strategy formulation
E)Allocating resources

Question 24

Strategy evaluation is necessary because

A)internal and external factors are constantly changing.
B)the SEC requires strategy evaluation.
C)the IRS requires strategy evaluation.
D)firms have limited resources.
E)competitors change their strategies.

Question 25

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)Strategic management
B)Strategic leading
C)Strategy formulation
D)Strategy implementation
E)Strategy evaluation

Question 26

and are external forces transforming business and society today.

A)E- commerce; globalization
B)Corporate culture; stakeholders
C)E- commerce; strategy
D)Strategy; globalization
E)Stakeholders; strategy

Question 27

Which statement best describes the role of intuition in management?

A)It is better than analysis in decision- making.
B)It is management by ignorance.
C)It represents a minor factor in decision- making integrated with analysis.
D)It should be coupled with analysis in decision- making.
E)It represents the marginal factor in decision- making.

Question 28

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

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

Question 29

The largest company in the world is

A)Honda Motor.
B)ING Group.
C)Royal Dutch/Shell Group.
D)Wal- Mart.
E)Ford Motor Company.

Question 30

Which individuals are most responsible for the success and failure of an organization?

A)Personnel directors
B)Human resource managers
C)Financial planners
D)Strategists
E)Stakeholders

Question 31

Which of these business actions is (are)always considered to be unethical?

A)Using nonunion labor in a union shop
B)Poor product or service safety
C)Insider trading
D)Dumping flawed products in a foreign market
E)all of the above

Question 32

All of these are potential disadvantages of an international operation except

A)overestimated weaknesses and underestimated strengths of competitors.
B)differing languages,cultures and value systems.
C)complexity due to a multiple monetary system.
D)reduced tariffs and taxes.
E)all of these are potential disadvantages.

Question 33

is used to refer to strategic formulation,implementation and evaluation,with referring only to strategic formulation.

A)Strategic planning; strategic management
B)Strategic implementation; strategic focus
C)Strategic management; strategic processing
D)Strategic management; strategic planning
E)Strategic planning; strategic processing

Question 34

Because they must take the of the firm,strategists' salaries are high compared to those of other individuals in the organization.

A)environmental risks
B)moral risks
C)societal criticism
D)employee criticism
E)social risks

Question 35

The greatest advantage of international operations is

A)gaining new customers.
B)less intense competition.
C)spreading economic risks over a wider number of markets.
D)reduced tariffs and taxes.
E)access to global technology,culture and business practices.

Question 36

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

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

Question 37

The act of strengthening employees' sense of effectiveness by encouraging and rewarding them to participate in decision- making and to exercise initiative and imagination is referred to as

A)transformation.
B)empowerment.
C)delegation.
D)authoritarianism.
E)proaction.

Question 38

What step in the strategic development process involves mobilizing employees and managers to put strategies into action?

A)Implementing strategy
B)Competitive advantage
C)Strategy evaluation
D)Strategic advantage
E)Formulating strategy

Question 39

A(n)can provide a basis on which policies can be devised to guide daily decisions and behavior at the work site.

A)code of business ethics
B)policy for safety
C)vision statement
D)list of guidelines
E)annual objective

Question 40

Identify a theme that has become a more important strategic issue due to global warming,bioterrorism,and increased pollution.

A)Monitoring employees
B)Internal environment
C)Internal stakeholders
D)External environment
E)Measuring performance

Question 41

In 2006,customers spent more money online for clothes than they did on computers.

Question 42

Military strategy is based on an assumption of ,whereas business strategy is based on an assumption of _ .

A)cooperation; competition
B)conflict; competition
C)conflict; cooperation
D)cooperation; conflict
E)competition; conflict

Question 43

All strategists have similar attitudes,values,ethics and concerns for social responsibility.

Question 44

Although the Internet has increased in popularity,it has actually led to increases in company expenses.

Question 45

In the context of conducting business operations across national borders,a(n)refers to a firm investing in international operations,while the is the country where that business is conducted.

A)parent country; host company
B)home country; parent company
C)host company; home country
D)parent company; host country
E)exporting company; importing company

Question 46

International operations can be as simple as exporting a product to a single foreign country.

Question 47

The top three online apparel retailers in 2010,using a measure of fans accross all major social media platforms,were

A)Gap,Zappos,and L.L.Bean.
B)Wal- Mart,TopShop,and Sears.
C)L.L.Bean,Zappos,and Victoria's Secret.
D)Sears,Victoria's Secret,and ASOS.
E)Zappos,ASOS,and TopShop.

Question 48

An important activity in is taking corrective action.

A)strategy evaluation
B)strategy leadership
C)strategy formulation
D)strategy implementation
E)all of the above

Question 49

Which of the following is not one of the benefits of strategic management described by Greenley?

A)It provides an objective view of management problems.
B)It maximizes the effects of adverse conditions and changes.
C)It creates a framework for internal communication among personnel.
D)It gives a degree of discipline and formality to the management of a business.
E)It encourages a favorable attitude toward change.

Question 50

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

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

Question 51

The changes that occurred when Robert Iger became CEO at Disney demonstrate which current trend in organizations?

A)Increased central planning of the strategic management process
B)Increased formalization of the strategic management process
C)Increased structuring of strategic management
D)Increased emphasis on strategic planning
E)Increased decentralizing of strategic management

Question 52

is not a strategy- implementation activity.

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

Question 53

According to research,organizations using strategic management are than those that do not.

A)more complex
B)more profitable
C)less complex
D)less profitable
E)less static

Question 54

A strong heritage underlies the study of strategic management.

A)cultural
B)political
C)social
D)military
E)government

Question 55

Annual objectives are especially important in strategy formulation.

Question 56

Nonprofit organizations have less need for strategic management because they are not interested in making a profit.

Question 57

In a large diversified organization,strategy formulation,implementation and evaluation activities occur at three hierarchical levels: corporate,divisional and functional.

Question 58

According to Greenley,strategic management provides a cooperative,integrated and enthusiastic approach to tackling problems and opportunities.

Question 59

A way to describe the strategic- management process is as an objective,logical,systematic approach for making major decisions in an organization.

Question 60

Which of the following are guides to decision making?

A)Policies
B)Goals
C)Laws
D)Rules
E)Procedures

Question 61

The final stage in strategic management is strategy implementation.

Question 62

One risk in international operations is that nationalistic factions could seize the operations.

Question 63

The poor reward structure is one reason managers do not engage in strategic planning.

Question 64

An integral part of the responsibility of all managers is to provide ethical leadership by constant example and demonstration.

Question 65

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

Question 66

Resource allocation is included in strategy- formulation activities.

Question 67

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

Question 68

A vision statement is,in essence,a company's game plan.

Question 69

Strategic- management process is an attempt to organize qualitative and quantitative information in a way that allows effective decisions to be made under conditions of uncertainty.

Question 70

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

Question 71

The underpinnings of strategic management hinge on managers gaining an understanding of competitors,markets,prices,suppliers,distributors,governments,creditors,shareholders and customers worldwide.

Question 72

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

Question 73

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

Question 74

In order for a firm to achieve sustained competitive advantage,a firm must continually adapt to changes in external trends and events and effectively formulate,implement,and evaluate strategies that capitalize upon those factors.

Question 75

One pitfall which managers should avoid in strategic planning is top managers making many intuitive decisions that conflict with the formal plan.

Question 76

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

Question 77

Analytical and intuitive thinking should complement each other.

Question 78

An integral part of strategy implementation must be to evaluate the quality of the strategic management process.

Question 79

Newspaper companies in the United States provide a good example of how a company can sustain a competitive advantage over the long term.

Question 80

Firms can be more proactive with strategic management.