Deck 1: Introduction to Strategy

Question 1

Which if the following statements most closely describes the nature of strategic decisions?

A) They result in plans that are executed by top management that influence the future survival of the organization
B) They are intended to deal with an uncertain future and have long-term implications
C) They are mainly concerned with organizing and allocating resources across different activities
D) They are intended to take the organization in new directions in order to cope with an uncertain future

Answer 1

They are intended to deal with an uncertain future and have long-term implications

Question 2

How are strategic decisions different in nature to operational decisions?

Answer 2

Strategic decisions (in contrast to operational decisions) normally involve taking into account multiple stakeholders, they have to consider the medium to long-term survival of the organization, affect a lot of people in the organization, are unlikely to have an obvious outcome and may not even be made with reference to clear objectives. Strategic decisions normally result in a lot of resource changes and expense, which is usually irreversible. Operational decisions are generally simpler and can be 'worked out' more easily.

Question 3

Explain what is meant by the 'classical' approach to strategy?

Answer 3

Also known as rational view, prescriptive approach, design approach, planned approach. The classical approach to strategy is associated with scholars such as Chandler and Ansoff. In the classical approach it is assumed that strategy is conducted by senior managers and involves rational analysis of data in the pursuit of achieving organizational objectives.

Question 4

Outline one typical issue that might appear in each category of a pestel analysis.

Question 5

Outline the basic dynamics of strategy.

Question 6

Explain how you would use the results of a strategic analysis in a SWOT analysis.

Question 7

Mintzberg et al challenge the traditional view that strategy involves a deliberate plan. They argue that in many cases strategy is

A) Irrational
B) Iterative
C) A political process
D) Emergent

Question 8

A leading UK retail bank has decided to close down some of its high street branches and invest more in its online banking service. This decision is strategic.

Question 9

Strategic problems can attract a range of ______________________ reactions

Question 10

Prahalad and Hamel see strategy as ______________ and leverage.

Question 11

A typical, planned process of strategy formulation would normally start with an assessment of

A) The internal environment
B) The external environment
C) The mission of the business
D) The stakeholders of the business

Question 12

The institutional/social context is the broadest aspect of an organization's external environment.

Question 13

According to Weihrich (1982) strengths and weaknesses can be categorized into three main categories: management and organization, finance, and

A) Organizational culture
B) Distribution
C) Planning and control
D) Operations

Question 14

The unit of analysis for Porter's Five Forces is the industry, whereas the unit of analysis for the SWOT analysis is a specific business

Question 15

The TOWS matrix (Weihrich, 1982) is superior to the SWOT analysis because

A) It helps the strategist to rule out unacceptable strategic options
B) It encourages the strategist to stretch resources to create opportunities in the market
C) It encourages the strategist to develop strategic responses which link opportunities and threats to strengths and weaknesses
D) It encourages the strategist to focus on weaknesses

Question 16

The SWOT analysis can be combined with which of the following analyses?

A) Cross-impact analysis
B) Brainstorming
C) Quality Function Deployment
D) Balanced Scorecard

Question 17

In general firms have most influence within the industry structure within which the firm operates.

Question 18

The opportunities and threats in the SWOT analysis focuses on changes in the environment whereas Porter's Five Forces has been criticized as being a dynamic analysis.

Question 19

Which of the following describes 'logical incrementalism' (Quinn, 1980)

A) An evolutionary process where strategy is essentially 'chosen' by the environment
B) A political process where strategy is constantly adjusted to fit in with personal objectives
C) Long term plans combined with learning by doing
D) Short term, small changes to strategy

Question 20

An 'emergent' strategy is one which is entirely determined by the external environment

Question 21

In constructing a SWOT analysis, which of the following issues are likely to be considered weaknesses

A) Social and political factors in the macro environment
B) A new competitor entering the industry
C) A simple process design
D) High staff turnover

Question 22

Christensen (1997) views strategy in a similar way to Prahalad and Hamel in that competitive advantage comes from innovation. Christensen specifically refers to the role of

A) Disruptive technologies
B) Short product life cycles
C) Distinctive capabilities
D) Fuzzy logic

Question 23

A useful way to prioritize the list of issues in the SWOT analysis is to categorize the issues using an A-B-C system. The A category refers to issues that are

A) Examples of best practice
B) Difficult to predict
C) Weak signals
D) Crucial to competitive advantage

Question 24

A strategic review of the internal environment of an organization involves

A) An analysis of the macro environment
B) An analysis of the competitive environment
C) An analysis of the capabilities
D) An analysis of the industry environment

Question 25

The SWOT analysis can be used as a basis for formulating strategy

Question 26

The well known work of Alfred Chandler which demonstrates the link between strategy and organizational structure is from which school of thought

A) Mechanistic
B) Innovative
C) Emergent
D) Classical

Question 27

Porter (1980) argues that competitive advantage comes from imitating industry leaders.

Question 28

Porter's work on how to achieve competitive advantage argues the following;

A) The interconnections between activities are as important as the activities themselves
B) Strategic decisions are about managing trade-offs
C) It is better to be 'best in class' at one activity than very good at many activities
D) Strategies cannot be planned, they can only emerge

Question 29

Strategy can be seen as the activity of coming up with plans, decisions and actions. In arriving at these, the strategist will typically analyze the following, interrelated key factors

A) Goals, external context, resources and capabilities
B) Goals, finances, external context
C) Stakeholders, shareholders, customers
D) Stakeholders, external context, resources and capabilities

Question 30

The traditional view of business/corporate strategy as planning can be traced back to the industrial revolution