Question 1

Research has shown that strategic thinking and planning positively affect a firm's performance and financial success.

Accepted Answer

Research has consistently found a positive correlation between strategic thinking and planning and a firm's performance and financial success. This includes studies across industries and countries.

Question 2

The task environment sectors are the most relevant to strategic behaviour and include the behaviour of competitors,customers,suppliers and the labour supply.

Accepted Answer

This statement is true. The task environment sectors are those external factors that directly affect a company's operations and profitability, and therefore are most relevant to strategic behaviour. These sectors include competitors, customers, suppliers, and the labour supply. A company's strategic decisions and actions are often influenced by these factors.

Question 3

Threats are characteristics of the internal environment that may prevent the organization from achieving its strategic goals.

Accepted Answer

Threats are actually characteristics of the external environment that may hinder an organization's ability to achieve its strategic goals. Internal factors that may prevent an organization from achieving its objectives are usually referred to as weaknesses or limitations.

Question 4

The administration and implementation of the strategic plan is strategy execution.

Accepted Answer

Strategy execution refers to the process of putting the strategic plan into action by implementing specific tactics and initiatives.

Question 5

Strategy implementation involves the planning and decision making that lead to the establishment of the firm's goals.

Accepted Answer

Strategy implementation involves the actions taken to achieve the established goals, not the planning and decision making that lead to their establishment.

Question 6

In a turbulent business climate,managers should focus on strategic stability rather than flexibility.

Accepted Answer

In a turbulent business climate, managers should focus on both strategic stability and flexibility. While strategic stability provides a consistent foundation for the company to build upon, flexibility is necessary to adapt and respond to changing market conditions and customer needs. Successful companies strike a balance between stability and flexibility.

Question 7

The interaction of Production and Sales working together to produce profit greater than the total of both working separately is an example of synergy.

Accepted Answer

Synergy refers to the combined efforts of two or more entities (e.g. departments, companies) resulting in an outcome that is more effective or efficient than when working separately. In this case, the combined efforts of Production and Sales result in greater profits than if they were working separately. So, the statement is true.

Question 8

Competitive advantage refers to the set of decisions and actions used to formulate and implement strategies.

Accepted Answer

The answer of Competitive advantage refers to the set of...

Question 9

The three levels of strategy are business,corporate and global.

Accepted Answer

The three levels of strategy are corporate, business, and functional. Corporate strategy focuses on the overall scope and direction of the corporation, business strategy is concerned with how the business competes within a particular market, and functional strategy deals with how parts of the business support the corporate and business strategies.

Question 10

Corporate-level strategy pertains to the organization as a whole.

Accepted Answer

Corporate-level strategy is concerned with the overall strategy of the organization, including the allocation of resources and the scope of its operations. It is different from business-level strategy, which focuses on how the individual business units of the organization can compete in their respective markets.

Question 11

Executives acquire information about external opportunities and strengths from a variety of reports,including budgets,financial ratios,profit and loss statements and surveys of employee attitudes and satisfaction.

Accepted Answer

The statement incorrectly associates external opportunities with internal documents like budgets, financial ratios, profit and loss statements, and surveys of employee attitudes and satisfaction. These documents primarily provide information about internal operations, strengths, and weaknesses, not external opportunities.

Question 12

Core competence is the plan of action that prescribes resource allocation and other activities for dealing with the environment.

Accepted Answer

The statement is incorrect. Core competence is a company's unique set of skills or knowledge that gives it a competitive advantage in the market. It is not a plan of action for dealing with the environment.

Question 13

The essence of formulating strategy is choosing how the organization will conform to become like its key competitors in the industry.

Accepted Answer

The essence of formulating strategy is choosing how the organization will differentiate itself from its key competitors in the industry.

Question 14

Some companies hire competitive intelligence professionals to scan the external environment and provide data and research on relevant domestic and global trends.

Accepted Answer

Competitive intelligence professionals are hired to gather and analyze information about the external environment, including domestic and global trends, to inform business decisions and strategies.

Question 15

Top managers and chief executives have the final responsibility for strategic planning.

Accepted Answer

Top managers and chief executives are ultimately responsible for the development and implementation of strategic plans in an organization. They are responsible for setting the overall direction of the company and ensuring that all departments and employees are aligned with the strategic goals.

Question 16

The combination of benefits received and costs paid by the customer refers to value.

Accepted Answer

Value is the perceived benefit of a product or service compared to its costs. It is the combination of benefits received and costs paid by the customer.

Question 17

Strategic partnerships are the current trend,rather than mergers and acquisitions.

Accepted Answer

Strategic partnerships allow companies to work together and benefit from each other's strengths without completely merging or acquiring one another. This approach can help reduce financial risk and provide flexibility for both parties.

Question 18

Strategic thinking is more important -profit businesses than for non-profit organizations.

Accepted Answer

Strategic thinking is important for all types of organizations, including non-profit organizations. While for-profit businesses may have a greater focus on maximizing profits, non-profit organizations still need to consider long-term goals, sustainability, and effective use of resources in order to achieve their missions and serve their stakeholders.

Question 19

Front-line managers have the final responsibility for strategic planning.

Accepted Answer

While front-line managers may have input into strategic planning, the ultimate responsibility typically falls on higher-level managers and executives. Front-line managers are primarily responsible for implementing and executing the strategies developed by higher-level managers.

Question 20

The "How do we compete?" question concerns functional-level strategy.

Accepted Answer

The answer of The "How do we compete?" question concerns...

Quiz 8: Strategy Formulation and Execution