Question 1

Strategic management is the set of managerial decisions that determines the short-term performance of a corporation.

Accepted Answer

Strategic management involves making decisions that shape the long-term performance and direction of a corporation, rather than just focusing on short-term goals.

Question 2

In the final phase of strategic management,strategic information is available to

Accepted Answer

In the final phase of strategic management, strategic information should be available to people throughout the organization to ensure effective implementation and alignment with the organization's goals. This approach fosters transparency, encourages engagement, and enables all levels of the organization to contribute to the strategic objectives.

Question 3

The time horizon involved with regard to basic financial planning is usually

Accepted Answer

Basic financial planning typically involves a time horizon of one year, as it focuses on short-term financial goals and budgeting.

Question 4

To be effective,strategic management must be a formal process.

Accepted Answer

Strategic management can be both formal and informal; its effectiveness depends on how well it aligns with the organization's goals, culture, and resources, rather than strictly on formality.

Question 5

Strategic planning within a small organization

Accepted Answer

Small organizations may not have the resources or need for a formal and elaborate strategic planning process. Informal and irregular strategic planning can still be effective in ensuring alignment with organizational goals and adapting to changing circumstances.

Question 6

When an organization is evaluating its strategic position,which is not one of the strategic questions that an organization generally may ask itself?

Accepted Answer

While financial objectives are certainly an important consideration for an organization when evaluating its strategic position, it is not one of the general strategic questions that an organization may ask itself. The other options listed are all common strategic questions that organizations may ask themselves when evaluating their strategic position.

Question 7

Top-down planning that emphasizes formal strategy formulation and leaves the implementation issues to lower management levels is known as

Accepted Answer

The answer of Top-down planning that emphasizes formal strategy formulation...

Question 8

Strategic planning in a multidivisional corporation

Accepted Answer

Strategic planning in a multidivisional corporation should be a formalized and sophisticated system to ensure that all divisions are aligned with the overall corporate strategy and goals. It should involve top management and lower-level managers to foster collaboration and ensure full understanding and commitment to the plan. It should also be regularly reviewed and updated to reflect changes in the market and internal factors.

Question 9

What are the benefits of strategic management?

Accepted Answer

The answer of What are the benefits of strategic management?...

Question 10

In the externally oriented planning phase,plans are developed by heavily involving the input of managers from lower levels.

Accepted Answer

In the externally oriented planning phase, plans are developed by heavily involving the input of managers from higher levels, such as executives and top management.

Question 11

The term used to describe new products,services,methods,and organizational approaches that allow businesses to achieve extraordinary returns is

Accepted Answer

Innovation refers to the introduction of new ideas, products, services, methods, or organizational approaches that create value and enable businesses to achieve extraordinary returns. This can lead to a competitive advantage and increased profitability. ROI, sustainability, and profit maximization are all important concepts in business, but they do not necessarily reflect the same level of innovation and creativity as the introduction of new ideas and approaches. Competitive advantage is closely related to innovation, as businesses can gain an edge over their rivals by constantly introducing new and better ways of doing things.

Question 12

Research suggests that strategic management evolves through four sequential phases in corporations.The first phase is

Accepted Answer

The correct sequence of phases in the evolution of strategic management in corporations is basic financial planning, forecast-based planning, externally oriented planning, and strategic management. Therefore, the first phase is basic financial planning.

Question 13

The integrated internationalization of markets and corporations is called

Accepted Answer

Globalization refers to the integration of markets and corporations across national borders, leading to increased interconnectedness and interdependence among countries around the world.

Question 14

Research of the planning practices of companies in the oil industry concludes that the real value of modern strategic planning is more in the ________ that is part of a future-oriented planning process than in any resulting written strategic plan.

Accepted Answer

The research concludes that the real value of modern strategic planning is more in the strategic thinking and organizational learning that is part of a future-oriented planning process. This shows that the process of thinking strategically and learning within the organization is more important than the actual written plan that results from the planning process.

Question 15

The free trade area composed of Argentina,Brazil,Uruguay,Venezuela,and Paraguay is called

Accepted Answer

Mercosur is the trade bloc composed of Argentina, Brazil, Uruguay, Venezuela, and Paraguay. The other options, EU, ASEAN, NAFTA, and ABUP, refer to different international organizations or trade agreements.

Question 16

The emphasis of strategic management is on

Accepted Answer

The emphasis of strategic management is on long-term performance, not short-term performance. It involves analyzing the organization's internal and external environments, including competitor actions, to develop long-term strategies for success. It is not only focused on first-line managers, but rather involves all levels of management within the organization.

Question 17

General Electric led the transition from strategic planning to strategic management during the 1980s.

Accepted Answer

General Electric is widely recognized for leading the transition from strategic planning to strategic management in the 1980s, under the guidance of CEO Jack Welch. Welch's emphasis on continually evaluating and adjusting the company's strategy to respond to market changes and competitive pressures set a new standard for corporate management.

Question 18

A difference between basic financial planning and forecast-based planning is

Accepted Answer

The key difference between basic financial planning and forecast-based planning is that the latter approach incorporates environmental data and extrapolates current trends. Basic financial planning typically focuses on shorter-term planning and may not consider external factors that could impact financial performance. Additionally, basic financial planning may utilize consultants or internal resources to develop sophisticated techniques, while forecast-based planning often relies on statistical analysis and modeling to project future financial outcomes.

Question 19

In a survey of 50 corporations,which of the following was rated as one of the three top benefits of strategic management?

Accepted Answer

Strategic management often provides a clearer sense of strategic vision for the firm, which is a key benefit recognized by corporations.

Question 20

One of the benefits of strategic management is a clearer sense of strategic vision for the firm.

Accepted Answer

Strategic management involves setting long-term goals and developing plans to achieve them, which helps firms create a clear strategic vision for the future.

Quiz 1: Basic Concepts in Strategic Management