Question 1

In a large conglomerate, while the enterprise on a whole will have a corporate strategy, each SBU will have its own business strategy.

Accepted Answer

Each Strategic Business Unit (SBU) within a large conglomerate will have its own specific set of products or services, target markets, and unique business model. As such, it is necessary for each SBU to develop its own business strategy that aligns with the overall corporate strategy of the larger enterprise.

Question 2

Functional strategy, business strategy, and corporate strategy should be integrated in a means-end fashion to accomplish objectives and create sustainable competitive advantage.

Accepted Answer

Integration of functional strategy (how different functional areas of business can contribute towards achieving strategic objectives), business strategy (how an organization can create and sustain competitive advantage in a particular industry or market), and corporate strategy (how an organization can create value across different businesses or industries it operates in) can help an organization achieve its overall objectives and create sustainable competitive advantage. This means that all three types of strategies should be aligned and work towards achieving the same objectives in a coordinated way.

Question 3

The purpose of corporate strategy is to guide activities within one specific area of operations.

Accepted Answer

The purpose of corporate strategy is to guide activities across all areas of operations within a company, including finance, marketing, human resources, and operations.

Question 4

As part of the strategic management process, strategy formulation involves identifying and analyzing the existing mission, objectives, and strategies; analyzing the industry and external environment as well as organizational resources and capabilities; and revising the mission and objectives and selecting new strategies.

Accepted Answer

This statement accurately describes the process of strategy formulation in the strategic management process.

Question 5

In single-product enterprises, business strategies are distinct from corporate strategies.

Accepted Answer

In single-product enterprises, business strategies and corporate strategies often overlap significantly because the entire focus of the business is on one product or service, making the distinction between these strategies less clear or relevant.

Question 6

A good mission statement should describe the organization's underlying philosophy and should clearly identify the domain in which the organization intends to operate.

Accepted Answer

A mission statement serves to provide direction for an organization by outlining its philosophy and scope of operations. It should be clear and concise, and communicate the organization's purpose and values to both internal and external stakeholders.

Question 7

In the process of strategic management, strategic implementation is typically followed by strategic analysis.

Accepted Answer

In the process of strategic management, strategic analysis typically precedes strategic implementation.

Question 8

Core values are broad beliefs about what is or is not appropriate behaviour.

Accepted Answer

Core values are indeed broad beliefs about appropriate or inappropriate behavior, guiding principles that a person or organization considers important in their decision-making process.

Question 9

The essence of strategic management is looking ahead, understanding the environment and the organization, effectively positioning the organization for competitive advantage in changing times, and then achieving it.

Accepted Answer

Strategic management involves forward thinking, assessing the internal and external environment, aligning resources and capabilities, and gaining a competitive advantage in the future.

Question 10

Corporate strategy answers the question: "How can we best utilize resources to implement our business strategy?"

Accepted Answer

Corporate strategy is concerned with the overall scope and direction of an organization, determining which business units or markets to operate in and how to allocate resources among them, rather than focusing solely on the utilization of resources to implement business strategy.

Question 11

Functional strategy addresses the question: "How are we going to compete for customers within this industry and market?"

Accepted Answer

Functional strategy is concerned with how each part of the business is organized to deliver the corporate and business-unit level strategies in terms of resources, processes, and people. The question "How are we going to compete for customers within this industry and market?" is typically addressed by the business level strategy.

Question 12

Typical sources of competitive advantage include cost and quality, knowledge and speed, barriers to entry, and financial resources.

Accepted Answer

These are indeed typical sources of competitive advantage.

Question 13

Competitive advantage is the ability to do something so well that one outperforms competitors.

Accepted Answer

Competitive advantage refers to the ability of a company to outperform its competitors by offering a product/service that is superior in quality, price or uniqueness. This allows the company to gain a larger market share and generate more profits.

Question 14

Strategic intent refers to an organization focusing its energies on a unifying and compelling target.

Accepted Answer

Strategic intent is defined as an organization's focus on a clear and inspiring target that guides its decisions and actions.

Question 15

Stakeholders are individuals and groups unaffected by the organization and its strategic accomplishments.

Accepted Answer

Stakeholders are individuals or groups who are affected, directly or indirectly, by the organization and its actions.

Question 16

Corporate strategy focuses on the strategic question: "In what industries and markets should we compete?"

Accepted Answer

Corporate strategy is concerned with the overall scope and direction of a company. It involves decisions about which industries and markets to compete in, as well as how to allocate resources across different business units or product lines. Therefore, the statement is true.

Question 17

Operating objectives are shorter-term targets against which actual performance results can be measured as indicators of progress and continuous improvement.

Accepted Answer

The statement accurately reflects the definition of operating objectives.

Question 18

A business can use a strategic SWOT analysis to assess its sustainability, wealth, operations, and technology.

Accepted Answer

The answer of A business can use a strategic SWOT...

Question 19

The strategic management process begins with analysis of mission, values, and objectives.

Accepted Answer

The strategic management process typically begins with an analysis of the organization's mission, values, and objectives before moving on to other components such as environmental analysis, strategy formulation, implementation, and evaluation.

Question 20

The presence of strong core values helps build a clear organizational identity.

Accepted Answer

Strong core values provide guidance for decision-making and behavior within a company, which helps create a distinct organizational identity.

Quiz 10: Strategy and Strategic Management