Deck 1: The Strategic Management Process

Question 1

Strategic management includes a process by which organizations analyze and learn from their internal and external environments.

Answer 1

True

Question 2

Enactment is the process of influencing the environment through strategic actions.

Answer 2

True

Question 3

Which of the following is a part of an organization's broad environment?

A)Society
B)Employees
C)Managers
D)Stockholders
E)Board of directors

Answer 3

A

Question 4

Domain direction and navigation pertain to which aspect of the strategic management process?

A)Corporate strategy formulation
B)Human resources strategy formulation
C)Strategy implementation
D)Business strategy formulation
E)Functional strategy formulation

Question 5

Stakeholder analysis includes identifying and prioritizing key stakeholders.

Question 6

Which of the following is not a stakeholder of an organization?

A)Employees
B)Stockholders
C)Customers
D)Competitors
E)These are all stakeholders.None of the above answers is correct.

Question 7

Adaptation is the process associated with attempting to control the environment to make it less hostile and more conducive to organizational success.

Question 8

External stakeholders are groups or individuals outside the organization that have a particular interest in and a major impact on the organization.

Question 9

Opportunities:

A)Allow a firm to take advantage of organizational strengths,overcome weaknesses,or neutralize threats
B)Are the same for all firms in an industry
C)Are related only to new customers and new markets
D)Are a firm's resources and capabilities
E)None of these

Question 10

In a SWOT analysis,a strength:

A)Leads to overconfidence on the part of top managers
B)Cannot be duplicated by competitors
C)Is a condition in the broad or task environment that can allow a firm to overcome organizational weaknesses
D)Is an internal capability or resource that may lead to a competitive advantage
E)Both C and D are correct

Question 11

Strategic management includes the following:

A)Establishment of strategic direction
B)Implementation of strategies
C)Analysis of the internal environment
D)Strategic restructuring
E)All of these are true

Question 12

Environmental determinism is the view that good management is associated with determining which strategy will best fit the environment and then carrying it out.

Question 13

All of the following are members of an organization's task environment except:

A)Activist groups
B)Managers
C)Suppliers
D)Financial intermediaries
E)Local communities

Question 14

Strategic management begins with the creation and execution of strategies,followed by the definition of goals that can be met by following these strategies.

Question 15

Unless an internal capability or resource is costly or difficult to imitate by competitors,the capability or resource is unlikely to lead to a sustainable competitive advantage.

Question 16

Threats:

A)Come only from the broad environment
B)Typically cannot be overcome
C)Can stand in the way of organizational competitiveness and stakeholder satisfaction
D)Are generally the result of moving too slowly against competitors
E)None of these

Question 17

In a SWOT analysis,an organizational weakness can be:

A)Something an organization does not do well
B)An important resource that an organization does not possess
C)Either deliberate or emergent
D)A sustainable competitive advantage
E)Both A and B are correct

Question 18

Strategic thinking deals with the rigid and systematic parts of the strategic management process.

Question 19

An organization's environment typically:

A)Consists only of employees and managers
B)Includes all groups and individuals that are significantly influenced by or have a major impact on the organization
C)Includes only stockholders
D)Consists only of competitors,suppliers,and customers
E)Reflects only owners,customers,and competitors

Question 20

Which of the following is not a major activity of the strategic management process?

A)Analysis of the internal and external environments
B)Establishment of strategic direction
C)Formulation of strategies
D)Production scheduling
E)Implementation of strategies

Question 21

What is strategic management? Describe the strategic management process in a company with which you are familiar?

Question 22

Managing for stakeholders means:

A)More resources are allocated to satisfy stakeholders than would be necessary merely to retain their participation in the productive activities of the firm
B)Stakeholders such as customers and suppliers manage portions of the firm
C)Firms that treat their stakeholders well will have higher risk but also higher returns
D)Firms should treat their stakeholders well because it is the right thing to do even if it means losing money
E)Both A and C are true

Question 23

Corporate-level decisions are typically made by:

A)Low-level employees
B)The CEO and/or board of directors
C)Functional managers
D)Department heads
E)Stockholders

Question 24

What is the resource-based view of the firm? What categories of resources does a firm possess?

Question 25

Adaptation is the process of:

A)Responding to the environment
B)Evaluating the environment
C)Influencing the environment
D)Retreating from the environment
E)Ignoring the environment

Question 26

Which of the following is not an element of stakeholder analysis?

A)Identifying stakeholders
B)Financially motivating stakeholders
C)Prioritizing stakeholders
D)Assessing stakeholder needs and collecting ideas from stakeholders
E)Integrating knowledge about stakeholders into the strategic management process

Question 27

Enactment is the process of:

A)Responding to the environment
B)Evaluating the environment
C)Influencing the environment
D)Retreating from the environment
E)Ignoring the environment

Question 28

Business-level strategy formulation pertains to:

A)Domain direction and navigation
B)Domain definition
C)Domain recognition
D)Domain precondition
E)Organizational inertia

Question 29

What is the most logical relationship between a sustainable competitive advantage and an organizational strength?

A)A sustainable competitive advantage is a strength that is difficult for competitors to imitate
B)A strength cannot be duplicated while a sustainable competitive advantage is easily copied
C)Every strength leads to a sustainable competitive advantage
D)Every sustainable competitive advantage leads to a strength
E)There is no relationship between these two concepts

Question 30

What is strategic thinking? What are its characteristics?

Question 31

Corporate strategy formulation deals primarily with:

A)How firms compete in the business areas they have selected
B)High-level financial analysis
C)The details of functional area strategies
D)The selection of business areas in which the firm will compete
E)All of the above

Question 32

What does it mean to "manage for stakeholders"? What are some of the advantages that accrue to a firm that uses this approach?

Question 33

All of the following are associated with the global business environment except:

A)Increasing interdependencies between countries
B)Reduced competition among firms
C)Reduced global stability
D)High levels of technological innovation
E)Increased flow of knowledge,goods and services across international borders

Question 34

Strategy formulation involves which of the following?

A)Corporate-level,business-level,and division-level strategy formulation
B)Functional-level,employee-level,and customer-level strategy formulation
C)Corporate-level,business-level,and functional-level strategy formulation
D)Domain navigation,market orientation,and customer definition strategy formulation
E)Domain navigation,functional-level formulation,and corporate-level formulation

Question 35

According to the resource-based view of the firm:

A)Strategies are neither deliberate nor emergent
B)Competitors may all develop the same competitive strength
C)The environment offers significant challenges to be overcome
D)Organizations are bundles of resources
E)None of these

Question 36

Define strengths,weaknesses,opportunities,and threats.How do strengths become sources of sustainable competitive advantage?

Question 37

The advantages of managing for stakeholders include:

A)Fewer negative responses from stakeholders such as legal suits or boycotts
B)Stakeholders often reciprocate
C)An excellent reputation
D)Increased strategic flexibility E: All of these

Question 38

Regarding strategy implementation and strategic control:

A)Strategy implementation is more important than strategic control
B)Strategy implementation refers to the details of strategy execution whereas strategic control refers to ongoing evaluation of and adjustments to strategy
C)Strategic control is more important than strategy implementation
D)Strategy implementation refers primarily to domain definition whereas strategic control refers primarily to domain navigation
E)None of these

Question 39

The industrial organization economics perspective suggests that:

A)Firm strategies are more important than industry structure in determining financial performance
B)The performance of an industry is dependent on the conduct of the firms it contains,which is dependent on the structure of the industry
C)Stakeholder determinism will drive the strategic management process in successful firms
D)Firm structure leads to the creation of resources that,in turn determine performance
E)All of the above

Question 40

According to the resource-based view of the firm:

A)Organizational resources include physical resources such as plants
B)The characteristics of resources firms possess influences their financial performance
C)Organizational resources include knowledge
D)Organizational resources include organizational culture
E)All of these