Question 1

The terms strategic management and strategic planning are synonymous in this text.

Accepted Answer

Strategic management and strategic planning are two closely related terms that are often used interchangeably. Strategic management is the process of developing and implementing strategies to achieve an organization's goals, while strategic planning is the process of creating a plan for how to achieve those goals.

Question 2

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

Accepted Answer

The strategic-management process involves a systematic, objective and logical approach for making major decisions in an organization. It includes analyzing the organization's current situation, setting goals and objectives, formulating strategies to achieve those goals, implementing the strategies, and evaluating their effectiveness. Hence, option A is correct.

Question 3

The final stage in strategic management is strategy implementation.

Accepted Answer

False

Question 4

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

Accepted Answer

U.S. firms in the computer industry are facing challenges from competitors, including companies from China, South Korea, and Taiwan.

Question 5

Formulation, implementation, and evaluation of strategy activities occur at three hierarchical levels in a large organization: corporate, divisional or strategic business unit, and functional.

Accepted Answer

This statement expresses a true assertion about the hierarchical levels involved in strategy activities in a large organization.

Question 6

Strategy implementation is often considered to be the most difficult stage in the strategic-management process because it requires personal discipline, commitment, and sacrifice.

Accepted Answer

Strategy implementation involves putting plans into action and this requires personal discipline, commitment, and sacrifice. It may involve changes in the organization's structure, processes, and culture, which can be challenging and often meet with resistance from employees. Therefore, strategy implementation is often considered to be the most difficult stage in the strategic-management process.

Question 7

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."

Accepted Answer

The answer of Management by intuition can be defined as...

Question 8

Anything the firm does especially well compared to rival firms could be considered a competitive advantage.

Accepted Answer

This statement is true. Any aspect of a firm's operations, processes, or products/services that gives it an edge over its competitors can be considered a competitive advantage. This can include things like superior quality, lower prices, better customer service, more efficient operations, or unique features or capabilities.

Question 9

One of the fundamental strategy evaluation activities is reviewing external and internal factors that are the basis for current strategies.

Accepted Answer

Reviewing external and internal factors is indeed a crucial part of strategy evaluation in order to determine if the current strategies are still relevant and effective.

Question 10

Once a firm acquires a competitive advantage, they are usually able to sustain the competitive advantage indefinitely.

Accepted Answer

While a firm may be able to sustain a competitive advantage for a period of time, it is generally difficult to sustain it indefinitely. Competitors may develop new methods or technologies, and customer preferences can also change over time, ultimately leading to decreased market share and profits for the firm. Firms need to constantly innovate and adapt to remain competitive in the long term.

Question 11

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

Accepted Answer

This statement is true. Just as organisms must adapt to changes in their environment to survive, firms must also adapt to changes in the market and industry to remain competitive and continue to thrive.

Question 12

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

Accepted Answer

This statement accurately describes the focus of strategic management.

Question 13

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

Accepted Answer

Expanding or diversifying operations is a key strategy formulation decision as it involves identifying new markets or product lines, allocating scarce resources, and assessing potential risks and rewards.

Question 14

Analytical and intuitive thinking should complement each other.

Accepted Answer

Analytical thinking involves breaking down complex problems into smaller, more manageable parts in order to understand them more fully. Intuitive thinking, on the other hand, involves relying on gut feelings and instincts to arrive at quick, effective solutions. Both forms of thinking have their advantages and disadvantages, and when used together they can help individuals make better decisions and solve problems more effectively. By combining analytical and intuitive thinking, individuals can gain a more comprehensive understanding of complex issues and arrive at truly innovative solutions.

Question 15

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

Accepted Answer

The answer of A vision statement identifies the scope of...

Question 16

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

Accepted Answer

The answer of By occasionally monitoring external events, companies should...

Question 17

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.

Accepted Answer

Strategic management involves analyzing internal and external factors, developing strategies, and making decisions based on uncertain and constantly changing conditions. Effective decision-making requires organizing and interpreting both qualitative and quantitative information.

Question 18

Even though useful, strategic planning has been cast aside by corporate America since the early 1990s.

Accepted Answer

Strategic planning remains a critical component of corporate management and decision-making in America, although its methods and emphasis may have evolved over time.

Question 19

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

Accepted Answer

The answer of Optimizing for tomorrow the trends of today...

Question 20

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

Accepted Answer

The answer of According to Albert Einstein, "Knowledge is far...

Quiz 1: The Nature of Strategic Management