Question 1

Once the best strategic alternative is selected, the broad guidelines for its implementation are then defined by

Accepted Answer

Policies define the broad guidelines for the implementation of the selected strategic alternative, guiding decision-making and actions within an organization.

Question 2

Distinguish between a market development and a product development strategy.

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Question 3

The technique used to help strategic managers choose among alternative choices by defining the task environment, developing a set of various forecasts, and using pro forma financial statements is called

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Question 4

Which one of the following is NOT true of risk?

Accepted Answer

The statement that managers who own a significant amount of stock in their firms are less likely to engage in risk-taking actions is not true. In fact, managers who own a significant amount of stock in their firms may be more likely to engage in risk-taking actions in order to increase the value of their own holdings.

Question 5

The evaluation of alternative strategies and selection of the best alternative is referred to as

Accepted Answer

The evaluation of alternative strategies and selection of the best alternative is referred to as strategic choice. Therefore, the best choice is C.

Question 6

Which of the following reflects the impact of industry backgrounds on strategic choices?

Accepted Answer

Executives with strong ties within an industry tend to choose strategies commonly used in that industry because they have experience and knowledge of what has worked in that industry in the past. Therefore, they may be more likely to stick to the status quo and industry norms.

Question 7

The type of strategy used to influence a corporation's key stakeholders in order to increase their support of corporate activities is

Accepted Answer

The type of strategy used to influence a corporation's key stakeholders in order to increase their support of corporate activities is political strategy. Political strategy is used to influence key stakeholders like government, non-governmental organizations, and communities to help increase support for corporate activities. It involves activities such as lobbying, public relations, and financial contributions to political campaigns.

Question 8

Discuss W.Edward Deming's position on sole sourcing.

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Question 9

If there is little fit between a strategic alternative under consideration and the corporate culture, which of the following is one of management's options to consider?

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Question 10

What is a functional strategy?

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Question 11

A new approach to evaluating alternatives under conditions of high environmental uncertainty that proposes it pays to have a broad range of options open is the

Accepted Answer

The real options approach proposes that it pays to have a broad range of options open when evaluating alternatives under high environmental uncertainty. This approach recognizes that flexibility in decision-making can be valuable in uncertain environments and suggests that options such as delaying investment, altering the scale of the investment, or entering into joint ventures should be considered in addition to traditional financial analysis.

Question 12

Give an example of a technological leader.

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Question 13

According to the text, which one of the following is NOT one of the reasons why innovations seem to occur more often in small firms rather than in large, established corporations?

Accepted Answer

The text does not state that small firms are completely ignorant of risk management. In fact, it implies the opposite by stating that entrepreneurs in small firms are more willing to accept greater risk.

Question 14

The first step in constructing a corporate scenario is to

Accepted Answer

The first step in constructing a corporate scenario is to use industry scenarios to develop a set of assumptions about the task environment. This helps to identify potential opportunities and threats that may impact the organization's performance. Developing common-sized financial statements, constructing pro forma financial statements, analyzing the societal environment, and deciding upon risk management are all important steps, but they come after identifying the assumptions about the task environment.

Question 15

To avoid the consensus trap, which technique involving presenting two conflicting views (the thesis and the antithesis)presented in a debate format can be traced back to Plato and Aristotle?

Accepted Answer

The technique involving presenting two conflicting views in a debate format can be traced back to Plato and Aristotle and is called dialectical inquiry. It is used to avoid the consensus trap by encouraging a critical examination of different perspectives and promoting a deeper understanding of complex issues. The other options (A) devil's advocate, (B) Sloan's judgment, (C) sales presentation, and (E) scenario construction, do not involve presenting conflicting views in a debate format.

Question 16

To avoid the consensus trap, which technique assigns a group or individual to identify potential pitfalls and problems with a proposed alternative strategy in a formal presentation?

Accepted Answer

Assigning a person or group to play the role of devil's advocate in a formal presentation can help to identify potential pitfalls and problems with a proposed alternative strategy. This technique encourages critical thinking and can help to avoid the consensus trap, which occurs when a group reaches a decision without considering all possible options or potential problems.

Question 17

The most commonly used political strategies include which of the following?

Accepted Answer

All of the above strategies are commonly used in politics. Constituency building involves engaging with the community and building support among voters. Political action committees contribute funds to political campaigns and candidates. Advocacy advertising aims to influence public opinion on a particular issue or candidate. Lobbying involves seeking to influence legislators or government officials on behalf of a particular interest or constituency.

Question 18

According to Paul Nutt, a decision-making authority, what percent of decisions made by managers are failures?

Accepted Answer

According to Paul Nutt's research, about 50% of decisions made by managers end up failing. This statistic highlights the challenges and complexities involved in decision-making within organizations.

Question 19

Which one of the following is NOT one of the questions that management should raise in their attempt to assess the importance to the corporation of stakeholders' concerns?

Accepted Answer

While it may be important to have stakeholder representation on the board of directors, this is not one of the questions that directly relates to assessing the importance of stakeholders' concerns. The other questions listed are more directly related to understanding the impact of stakeholder concerns on the corporation's decisions and actions.

Question 20

What does a financial strategy examine?

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Quiz 8: Strategy Formulation: Functional Strategy and Strategic Choice