Question 1

According to the strategic management model,strategic control occurs before strategy formulation.

Accepted Answer

Strategic control occurs after strategy formulation, during the implementation and evaluation phases. It involves monitoring performance against predetermined goals and making adjustments to the strategy if necessary.

Question 2

An effective strategy is built on the foundation of the organization's comparative advantage,the mechanism whereby the organization seeks to earn a profit by selling its goods.

Accepted Answer

False

Question 3

Which of the following is not one of the steps in the strategic management process?
A)Execute the strategy
B)Control the strategy as necessary
C)Conduct an internal analysis
D)All of the above are steps in the strategic management process.

Accepted Answer

All of the choices listed (A, B, and C) are steps in the strategic management process.

Question 4

The industrial organization perspective on firm performance emphasizes the fit between the firm and its environment.

Accepted Answer

The answer of The industrial organization perspective on firm performance...

Question 5

The contingency theory perspective on firm performance emphasizes the structure of the industry.

Accepted Answer

The contingency theory perspective emphasizes that there is no one best way to organize a corporation, to lead a company, or to make decisions. Instead, the optimal course of action is contingent upon the internal and external situation.

Question 6

The concept of strategic management includes
A)top management's analysis of the environment in which the organization operate
B)the plan for strategy execution
C)strategic control efforts.
D)All of the above

Accepted Answer

The concept of strategic management includes all three elements mentioned in options A, B and C - analysis of the environment, plan for strategy execution, and strategic control efforts. Therefore, option D is the correct choice.

Question 7

The mechanism whereby the organization seeks to earn a profit by selling its goods is known as
A)comparative advantage.
B)competitive advantage.
C)the business model.
D)none of the above

Accepted Answer

The mechanism by which an organization seeks to earn a profit by selling its goods or services is referred to as the business model.

Question 8

The notion of strategy assumes
A)that an organization has a plan.
B)that an organization's strategic managers understand the source of its competitive advantage.
C)that the organization's members understand the reason for its existence.
D)All of the above.

Accepted Answer

The notion of strategy assumes all of the above, that is, an organization has a plan, its strategic managers understand the source of its competitive advantage, and the organization's members understand the reason for its existence. These three elements are essential for the development and execution of an effective strategy.

Question 9

Most strategic management scholars have endorsed an "artistic" perspective on strategy formulation.

Accepted Answer

Most strategic management scholars have traditionally endorsed a more systematic, analytical approach to strategy formulation, emphasizing rational analysis and planning rather than an "artistic" perspective.

Question 10

Identifying a firm's business model is rarely difficult in general terms,but can become more complex when intricate details are considered.

Accepted Answer

Identifying a firm's business model can be easy in broad terms, but may get more complex when specific details are taken into account.

Question 11

A firm's ability to enjoy strategic benefits over an extended period of time is known as strategic positioning.

Accepted Answer

Strategic positioning refers to a firm's ability to differentiate itself from competitors in a way that provides a competitive advantage, not necessarily over an extended period. The ability to sustain these benefits over time is often referred to as sustainable competitive advantage.

Question 12

The chief executive is held responsible for the effects of strategic decisions.

Accepted Answer

As the top leader in an organization, the chief executive is ultimately responsible for the outcomes and impact of strategic decisions made under their leadership.

Question 13

The notion of strategy assumes
A)that experts in strategic planning are employed by the organization.
B)that managers have time to develop formal strategic plans.
C)that the organizational already has a plan.
D)All of the above.

Accepted Answer

The notion of strategy assumes that the organization already has a plan, regardless of whether experts in strategic planning are employed or whether managers have time to develop formal plans. Strategy refers to the process of developing and implementing plans and decisions to achieve the organization's goals and objectives. It assumes that there is already a framework in place to guide these activities.

Question 14

Managers who are too busy to engage in strategic planning should wait until they have more free time in their schedules.

Accepted Answer

Strategic planning is crucial for the success of a business and cannot be neglected. Even busy managers should prioritize strategic planning and allocate time for it in their schedules. Ignoring strategic planning can have negative consequences on the long-term success of the organization.

Question 15

The gap between intended and realized strategies usually results from middle management ineffectiveness.

Accepted Answer

The gap between intended and realized strategies can result from a variety of factors including environmental changes, lack of resources, poor communication, and strategic misjudgments, not just middle management ineffectiveness.

Question 16

Both industrial organization theory and resource-based theory are incorporated into the case analysis process.

Accepted Answer

Both industrial organization theory and resource-based theory are important frameworks used in case analysis to understand the external and internal factors influencing a firm's performance and competitiveness.

Question 17

Resource-based theory primarily focuses on individual firms rather than the competitive environment.

Accepted Answer

Resource-based theory emphasizes the unique resources and capabilities of individual firms as the basis for sustained competitive advantage, rather than the external competitive environment.

Question 18

Corporate governance refers to the board of directors,institutional investors,and large shareholders known as blockholders who monitor firm strategies.

Accepted Answer

Corporate governance involves the oversight and direction of a company by a board of directors, institutional investors, and large shareholders (blockholders) who monitor firm strategies.

Question 19

Strategic decisions may be short-term or long-term in focus.

Accepted Answer

The answer of Strategic decisions may be short-term or long-term...

Question 20

The term strategy refers primarily to activities at the top level of the organization.

Accepted Answer

Strategy is typically developed and implemented at the top level of the organization by senior management or executives. It involves making high-level decisions about the overall direction and goals of the organization, and determining the best ways to allocate resources to achieve those goals. However, strategy can also be developed and implemented at lower levels of the organization, such as departmental or functional levels.

Quiz 1: Fundamentals of Strategic Management