Deck 1: The Concept of Strategy

Question 1

In the large,complex firm,two main levels of strategy can be distinguished: corporate strategy and business (or competitive)strategy.

Answer 1

True

Question 2

Strategic choices involve two basic questions: where and how to compete?

Answer 2

True

Question 3

According to Henry Mintzberg,firm strategy should be formulated by top management through rational deliberation utilizing all available data.

Answer 3

False

Question 4

Contingency theory postulates that a firm's strategy must to flexible in order to meet any possible contingency.

Question 5

"Strategic fit" related to the consistency between a firm's strategy and,on one hand,its external environment and,on the other,its internal resources and capabilities.

Question 6

Strategy is a detailed plan that programs the actions of an organization or an individual.

Question 7

When describing the strategy of a firm,it is best to ignore the current positioning of the firm in order to concentrate upon the direction in which the firm will develop in the future.

Question 8

A key component of an effective strategy is clear,consistent,long-term goals.

Question 9

Many of the concepts and theories of business strategy have their origins in military strategy.

Question 10

Applying the tools of strategy analysis to not-for-profit organizations is simplified by the fact that they do not need to be concerned with maximizing profit.

Question 11

The career success of both Queen Elizabeth II and Lady Gaga may be attributed to their willingness to engage in systematic strategic planning

Question 12

A major problem of using SWOT analyses in distinguishing strengths from weaknesses and opportunities from threats.

Question 13

The main factor causing the transition from corporate planning to strategic management was the influence of business school academics such as Michael Porter at Harvard Business School.

Question 14

If a firm can devise a brilliant strategy,it will be successful irrespective of how effectively it is implemented.

Question 15

The reason that a firm's realized strategy diverges from its intended strategy is because strategy making is,to a great extent,an emergent process.

Question 16

Strategy denotes an overall plan whereas a tactic is a scheme for a specific action.

Question 17

The balance between intended and emergent strategy depends primarily upon the stability and predictability of the organization's business environment.The more stable and predictable the environment,the greater the importance of emergent strategy.

Question 18

The dynamic,future-oriented dimension of a firm's strategy is described by its mission and vision statements and its performance targets.

Question 19

Strategic decisions are important,involve a significant commitment of resources,and should be easily reversible.

Question 20

Strategy is a unifying theme that gives coherence and direction to the actions and decisions of an organization.

Question 21

For both individuals and businesses,successful strategies are characterized by:

A)Unrelenting commitment to ambitious goals.
B)Clear goals,understanding their competitive environment,awareness of internal strengths and weaknesses,and effective implementation.
C)Meticulous planning.
D)Possessing superior abilities and resources that are then deployed to build competitive advantage.

Question 22

A description of a company's organizational purpose is called a ______?

A)Vision statement
B)Values statement
C)Mission statement
D)All the above

Question 23

The principal similarity between business and military strategy is that:

A)They share the same objective: to annihilate rivals.
B)They share common concepts and principles.
C)The nature of leadership is much the same whether in a military or business context.
D)They are both concerned with tactical maneuvers that can establish positions of advantage.

Question 24

In the late 1970s and early 1980s,Michael Porter pioneered:

A)The application of industrial organization economics to strategic decisions
B)Empirical research into the relationship between market share and firm profitability
C)The resource-based view of the firm
D)The application of game theory to strategic management

Question 25

The main problem of SWOT as a framework for strategy analysis is that:

A)Distinguishing opportunities from threats and strengths from weaknesses is often difficult.
B)It has now been superseded by more sophisticated analytical frameworks.
C)It is focused on strategy formulation and fails to take account of strategy implementation.
D)It is so widely used that it no longer has any novelty.

Question 26

Military strategy and business strategy differ in that:

A)There is no concept like tactics in business
B)Military strategy can only be learned through field experience; business strategy can be developed through analytical frameworks
C)The objective of military strategy is to defeat the enemy; business strategy seeks coexistence rather than annihilation
D)None - there is no conceptual difference

Question 27

Strategy has its origins in:

A)Thought
B)Discussion
C)Analytical techniques
D)Ethics

Question 28

Strategic fit refers to:

A)The need for a firm's strategy to be consistent with its vision,mission,and culture
B)The consistency of a firm's strategy with its external and internal environments
C)The need for a firm's strategy to be unique
D)The need for a firm's strategy to fit the needs of all its stakeholders,not just shareholders

Question 29

During the 21st century,the complexity of the challenges posed by disruptive,digital technologies and accelerating rates of change has encouraged companies to:

A)Shift their strategic focus towards the growth markets of Asia,Africa,and Latin America.
B)Rejecting shareholder value maximization in favor of maximizing stakeholder interests.
C)Depend increasingly upon strategic alliances and other forms of collaboration.
D)Prefer mergers and acquisitions to organic growth.

Question 30

A conceptualization the firm as an "activity system" is a means of depicting:

A)The extent to which a management is motivated to implement a firm's strategy
B)The extent to which a firm's resources and capabilities are aligned with its strategic goals
C)The extent to which a firm's strategic goals are aligned with its industry environment
D)Consistency among a firm's activities

Question 31

Ryanair's strategic position is as Europe's lowest-cost airline may be attributed to:

A)The willingness of its CEO,Michael O'Leary,to challenge conventional notions of customer and employee satisfaction
B)Its use of secondary airports where costs are lower
C)The high operating costs of major airlines such as British Airways,Lufthansa,and Air France-KLM on short-haul routes
D)An integrated,consistent set of activities designed to maximize productivity and minimize operating costs

Question 32

The primary purpose of strategy is:

A)To maximize shareholder value
B)To achieve success
C)To create value for all stakeholders
D)To be a responsible corporate citizen

Question 33

The successful careers of both Queen Elizabeth II and Lady Gaga may be attributed to the fact that both:

A)Have used dressing up as a means of attracting attention and establishing identity.
B)Have a knack for being in the right place at the right time.
C)Have a consistency of direction based on clear goals.
D)Have built a loyal fan base based on astute use of the media.

Question 34

The primary distinction between corporate strategy and business strategy is:

A)Corporate strategy is the responsibility of the CEO; business strategy is formulated by the heads of business units
B)Corporate strategy is concerned with where the firm competes; business strategy with how it competes
C)Corporate strategy is concerned with establishing competitive advantage; business strategy with strategy implementation in individual businesses
D)Corporate strategy is concerned with the long-term performance of the firm; business strategy with resource deployment.

Question 35

In strategic management,the expression "blue oceans" refers to:

A)Radical innovation
B)The potential offered by uncontested market space
C)A key theme in the US Navy's strategic planning process
D)The ability to cut costs through moving production to offshore locations.

Question 36

In the military field,we generally make the following distinction between strategy and tactics:

A)Tactics comprise the overall plan whereas strategy focuses on specific actions
B)Tactics relate to specific actions whereas strategy relates to the overall plan
C)Tactics encompass specific political actions within the firm whereas strategy is the overall plan for deploying resources to establish a favorable position
D)Tactics form the overall plan whereas strategy is concerned with the maneuvers to win battles

Question 37

The main reason for the transition from corporate planning to strategic management during the latter half of the 1970s was:

A)The increasing costs of corporate planning departments.
B)Disappointing outcomes of corporate diversification.
C)A more turbulent business environment that became increasingly difficult to predict.
D)Growing disillusionment with central planning.

Question 38

During the 1990s,the focus of strategy analysis shifted:

A)From corporate planning to strategic management
B)To the role of resources and capabilities as a foundation for firm strategy.
C)To the application of microeconomics to analyze the sources of firm profitability.
D)To the analysis of value-added as the basis for strategic decisions

Question 39

The book that is considered as the first treatise on strategy is:

A)Carl Von Clausewitz's "On War" ("Vom Kriege")
B)Sun Tzu's "The Art of War"
C)The Bible
D)Niccolo Machiavelli's "The Art of War" ("Dell'arte della Guerra")

Question 40

Strategic goals should be:

A)Simple
B)Consistent
C)Long term
D)All of these

Question 41

Strategy can help decision making by:

A)Expanding the range of decision alternatives under consideration
B)Ensuring that strategic decisions are restricted to the CEO and top management team
C)Facilitating the use of analytical tools
D)All of these

Question 42

When the environment becomes more turbulent and unpredictable:

A)Strategy becomes less important than intuition
B)Strategy becomes an increasingly important as a source of direction
C)External consultants need to play a greater role in strategy making
D)Strategy becomes an impossible exercise

Question 43

The main difference between corporate level strategy and business level strategy is:

A)Corporate strategy defines the scope of a firm's activities,while business strategy focuses on how to beat the competition in specific product markets
B)Corporate strategy defines a firm's overall structure,while business strategy describes its actions
C)Corporate strategy comprises the overall strategic plan,while business strategy focuses on implementing that strategy in each product market
D)Corporate level strategy is concerned with long term goals,while business level strategy focuses on short term competitiveness

Question 44

When identifying a company's strategy,its statements of a strategy found in its public documents need to be:

A)Treated with skepticism
B)Checked against the company's decisions and actions
C)Interpreted using modern techniques of textual analysis
D)Checked against its statements of vision and mission

Question 45

The two questions of "where" and "how" to compete define:

A)a firm's corporate and business strategies
B)a firm's strategic management process
C)a firm's vision and mission
D)a firm's values and culture