Question 1

According to the text, unanimous agreement is NOT the best way to determine the merits of a proposed alternative strategy.To avoid this consensus trap, which technique involves presenting two conflicting views (the thesis and the antithesis)presented in a debate format?
A)devil's advocate
B)Sloan's judgment
C)sales presentation
D)dialectical inquiry
E)scenario construction

Accepted Answer

Dialectical inquiry involves presenting two conflicting views, the thesis and the antithesis, in a debate format to avoid the consensus trap of unanimous agreement. It encourages individuals to critically examine both sides and come up with a synthesis that combines the best of both approaches. Devil's advocate challenges the assumptions and ideas presented in a decision-making process, Sloan's judgment involves consulting experts and gathering data to make a decision, sales presentation focuses on persuading others to adopt a particular strategy, and scenario construction involves creating plausible future scenarios to evaluate potential strategies. While these techniques may be useful in decision-making, they do not specifically address the issue of avoiding the consensus trap.

Question 2

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
A)net present value.
B)real options approach.
C)stakeholder priority matrix.
D)risk assessment approach.
E)hurdle rate approach.

Accepted Answer

The real options approach proposes that it is beneficial to maintain a broad range of options open when evaluating alternatives under high environmental uncertainty. This approach recognizes that uncertainty can create value by providing the opportunity to adjust and switch strategies based on changing circumstances. The real options approach considers the value of investing in the flexibility of maintaining different options open rather than relying on a single strategy or investment.

Question 3

When crafted correctly, an effective policy accomplished all but which of the following?
A)It forces trade-offs between competing resource demands.
B)It tests the strategic soundness of a particular action.
C)It grants employees freedom to experiment within its constraints.
D)It sets boundaries within which employee must operate while granting them freedom to experiment within those constraints.
E)All of the above

Accepted Answer

An effective policy does not necessarily force trade-offs between competing resource demands, as it is more about providing guidelines and boundaries for actions rather than directly managing resources.

Question 4

If there is little fit between a strategic alternative under consideration and the corporate culture, which of the following is one of the considerations that must be taken into account?
A)Take a chance on ignoring the culture by implementing the strategic alternative.
B)Manage around the culture and change the implementation plan.
C)Try to change the culture to fit the strategy.
D)Change the strategy to fit the culture.
E)All of the above.

Accepted Answer

All options are valid considerations when there is little fit between a strategic alternative and the corporate culture. Each option represents a different approach to addressing the misalignment.

Question 5

Which one of the following is NOT true of risk?
A)It is composed of the length of time the asset will be unavailable for other uses.
B)It is the probability that the strategy will be effective.
C)Managers who own a significant amount of stock in their firms are less likely to engage in risk-taking actions.
D)It is the amount of assets the corporation must allocate to that strategy.
E)The greater the assets involved, the more likely top management is to demand a high probability of success.

Accepted Answer

The answer of Which one of the following is NOT...

Question 6

According to the text, unanimous agreement is not the best way to determine the merits of a proposed alternative strategy.To avoid this consensus trap, which technique assigns a group or individual to identify potential pitfalls and problems with a proposed alternative strategy in a formal presentation?
A)devil's advocate
B)Sloan's judgment
C)sales presentation
D)dialectical inquiry
E)scenario construction

Accepted Answer

The technique described in the question is devil's advocate, which involves assigning someone to identify potential problems and drawbacks to a proposed alternative strategy. This helps to avoid the consensus trap and encourages critical thinking and constructive debate. The other options listed (Sloan's judgment, sales presentation, dialectical inquiry, and scenario construction) are not directly related to this technique.

Question 7

What does a financial strategy examine?

Accepted Answer

The answer of What does a financial strategy examine?...

Question 8

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

Accepted Answer

The answer of Discuss W.Edward Deming's position on sole sourcing....

Question 9

Once the best strategic alternative is selected, the broad guidelines for its implementation are then defined by
A)trade-offs.
B)policies.
C)procedures.
D)resource allocation.
E)strategic options.

Accepted Answer

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

Question 10

The evaluation of alternative strategies and selection of the best alternative is referred to as
A)alternative generation.
B)strategic implementation.
C)strategic choice.
D)strategic selection.
E)evaluation.

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 11

Give an example of a technological leader and a technological follower.

Accepted Answer

The answer of Give an example of a technological leader...

Question 12

What is a functional strategy?

Accepted Answer

The answer of What is a functional strategy?...

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?
A)An entrepreneur in a small firm is more willing to accept greater risk than would a larger firm.
B)Small firms are completely ignorant of risk management.
C)The greater the assets involved and the longer they are tied up, the more likely top management in large firms is to demand a high probability of success.
D)Companies operating in global industries must deal with a greater amount of risk than firms operating only in one country.
E)If the corporation's stock is widely held as in the case of large firms and experiences stock price declines due to some external assessment, it places the firm in jeopardy of being acquired.

Accepted Answer

The text does not state that small firms are completely ignorant of risk management. In fact, it suggests that small firms may be more willing to accept greater risk, but not due to ignorance.

Question 14

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?
A)Which stakeholder group should be represented on the board of directors?
B)How will this decision affect each stakeholder?
C)How much of what the stakeholders want are they likely to get under a certain alternative?
D)What are the stakeholders likely to do if they don't get what they want?
E)What is the probability that the stakeholders will follow through on their demand?

Accepted Answer

While it is important for management to consider which stakeholders should be represented on the board of directors, it is not explicitly a question related to assessing the importance of stakeholders' concerns. Rather, the other questions listed (B-E) directly address how decisions may impact stakeholders and how their concerns should be taken into account by management.

Question 15

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
A)decision trees.
B)S)W.O.T. analysis.
C)industry scenarios.
D)corporate scenarios.
E)Capital Asset Pricing Model.

Accepted Answer

The answer of The technique used to help strategic managers...

Question 16

The first step in constructing a corporate scenario is to
A)develop a common-sized financial statement.
B)construct detailed pro forma financial statements.
C)decide upon how much risk management is willing to accept.
D)analyze the societal environment.
E)use industry scenarios to develop a set of assumptions about the task environment.

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 involves analyzing the current and future trends in the industry, identifying potential opportunities and threats, and considering how these factors may impact the organization's operations and strategy. Only after this step can pro forma financial statements and risk management decisions be made. Common-sized financial statements may be useful in analyzing and comparing financial data, but are not necessary for constructing a corporate scenario. Analyzing the societal environment is also important, but generally comes later in the scenario planning process.

Question 17

The most commonly used political strategies include which of the following?
A)constituency building
B)political action committee contributions
C)advocacy advertising
D)lobbying
E)all of the above

Accepted Answer

All of the above strategies are commonly used in politics. Constituency building involves building support among voters, while political action committees contribute funds to candidates and causes. Advocacy advertising seeks to influence public opinion on political issues, and lobbying involves influencing policymakers and legislators. All of these strategies are fundamental to political campaigns and advocacy efforts.

Question 18

Distinguish between a market development and a product development strategy.

Accepted Answer

The answer of Distinguish between a market development and a...

Question 19

Cultural backgrounds affect strategic choices.Korean executives emphasize ________ in their decisions; whereas U.S.executives emphasize ________.
A)projected demand, discounted cash flow, and ROI; industry attractiveness, sales and market share
B)Industry attractiveness, sales and market share; projected demand, discounted cash flow, and ROI
C)Ego; industry attractiveness
D)Maintaining the status quo; change
E)none of the above

Accepted Answer

Cultural backgrounds can influence an individual's priorities and values, which can affect their strategic choices. Korean culture places emphasis on the relationships and reputation of the company, leading to a focus on industry attractiveness, sales, and market share. In contrast, American culture values individual achievement and profits, leading to a focus on projected demand, discounted cash flow, and ROI. Therefore, the best answer is B, which describes the differing priorities of Korean and American executives.

Question 20

The type of strategy used to influence a corporation's key stakeholders in order to increase their support of corporate activities is
A)cooperative strategy.
B)political strategy.
C)competitive strategy.
D)marketing strategy.
E)profit strategy.

Accepted Answer

The type of strategy that involves influencing key stakeholders through political means is known as political strategy. This involves activities such as lobbying, advocacy, and public relations aimed at gaining support from government officials, interest groups, and other stakeholders. A cooperative strategy involves working together with other businesses or organizations to achieve a common goal, while a competitive strategy aims to outperform rivals in the marketplace. Marketing strategies are focused on promoting and selling products or services to consumers, and profit strategies aim to maximize financial gains for the organization.

Quiz 8: Strategy Formulation: Functional Strategy and Strategic Choice

According to the text, unanimous agreement is NOT the best way to determine the merits of a proposed alternative strategy.To avoid this consensus trap, which technique involves presenting two conflicting views (the thesis and the antithesis) presented in a debate format?

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

When crafted correctly, an effective policy accomplished all but which of the following?

If there is little fit between a strategic alternative under consideration and the corporate culture, which of the following is one of the considerations that must be taken into account?

Which one of the following is NOT true of risk?

What does a financial strategy examine?

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

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

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

Give an example of a technological leader and a technological follower.

What is a functional strategy?

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?

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?

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

The first step in constructing a corporate scenario is to

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

Distinguish between a market development and a product development strategy.

Cultural backgrounds affect strategic choices.Korean executives emphasize in their decisions; whereas U.S.executives emphasize .

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