Question 1

What are the three particular challenges that all strategists face today?

Accepted Answer

The answer of What are the three particular challenges that...

Question 2

Most organizations can afford to pursue ________ corporate-level strategies at any given time.
A) only a few
B) 8-12
C) about 15
D) at least 20
E) virtually an unlimited number of

Accepted Answer

Most organizations have limited resources, capabilities, and competencies, which restrain them from pursuing multiple corporate-level strategies at the same time. Pursuing too many strategies can lead to inefficiency, complexity, and conflicts. Therefore, most organizations can afford to pursue only a few corporate-level strategies that align with their mission, vision, and goals.

Question 3

The accounting switch from GAAP to IFRS in the United States is going to result in substantial costs to businesses for fees, upgraded software systems, and training.

Accepted Answer

The switch from GAAP to IFRS will require businesses to incur substantial costs for fees, software systems upgrade, and employee training. Therefore, the statement is true.

Question 4

Most strategy literature advocates that strategic management is
A) more of a science than an art.
B) more of an art than a science.
C) based on analysis rather than research.
D) based on intuition rather than analysis.
E) based on creativity rather than intuition.

Accepted Answer

The answer of Most strategy literature advocates that strategic management...

Question 5

The U.S. Chamber of Commerce supports a change from to IFRS to GAAP, saying it will help the United States compete in the world economy.

Accepted Answer

The U.S. Chamber of Commerce actually supports a move towards global accounting standards, including the adoption of IFRS in the United States. They argue that this would create a more level playing field for U.S. companies in the global marketplace.

Question 6

Believing it will make it easier for investors to compare firms across countries and make it easier to raise capital globally, most large accounting firms and multinational firms favor the switch from GAAP to IFRS.

Accepted Answer

This statement is true. Many accounting firms and multinational companies have voiced their support for the adoption of International Financial Reporting Standards (IFRS) as a global accounting framework, citing the benefits of comparability and easier access to capital.

Question 7

Mintzberg's notion of "crafting" strategies
A) is consistent with the view that strategic management is more a science than an art.
B) contends that firms need to assess their environments, do research, evaluate alternatives, analyze, and then choose a course of action.
C) suggests that strategic decision making be based primarily on holistic thinking, intuition, creativity, and imagination.
D) reject strategies that result from subjective imagination in favor of objective analysis.
E) insists on formality.

Accepted Answer

Mintzberg's notion of crafting strategies suggests that strategic decision making be based primarily on holistic thinking, intuition, creativity, and imagination. This is in contrast to a more formal, analytical approach to strategic management. Therefore, choice C is the best answer.

Question 8

Increased education and diversity of the workforce at all levels are reasons why
A) the top-down approach is preferred.
B) the bottom-up approach is untenable.
C) only top executives have the experience and acumen to make strategy decisions.
D) middle-level and lower-level managers, and even non-managers, should be involved in the strategic planning process.
E) the horizontal approach is the most pragmatic choice.

Accepted Answer

With increased education and diversity, there is a broader range of experience and expertise in the workforce. Middle-level and lower-level managers, as well as non-managers, can bring unique perspectives and insights to the strategic planning process. Therefore, it is important to involve them in the decision-making process. The top-down approach may not be effective in this context, as it may overlook valuable input from employees at lower levels.

Question 9

Which of the following is NOT a guideline for an effective strategic planning process?
A) It should not become ritualistic, stilted, or orchestrated.
B) It should employ International Financial Reporting Standards (IFRS).
C) It should not be too formal, predictable, or rigid.
D) It should not contain jargon or arcane planning language.
E) It should not be a formal system for control.

Accepted Answer

The use of International Financial Reporting Standards (IFRS) is not a guideline for an effective strategic planning process. The other options - avoiding becoming ritualistic, stilted, or orchestrated; avoiding being too formal, predictable, or rigid; avoiding jargon or arcane language; and avoiding being a formal system for control - are all important guidelines for an effective strategic planning process.

Question 10

What are some arguments for and against the adoption by the United States of International Financial Reporting Standards (IFRS)?

Accepted Answer

The answer of What are some arguments for and against...

Question 11

Particular challenges or decisions that face all strategists today include
A) deciding whether the process should be more an art or a science.
B) deciding whether strategies should be visible or hidden from stakeholders.
C) deciding whether the process should be more top-down or bottom-up in their firms.
D) all of the above
E) none of the above

Accepted Answer

All of the statements are challenges or decisions that strategists face in today's business environment. The choice between art or science relies on the strategist's preference and approach to strategic planning. The decision of whether strategies should be visible or hidden from stakeholders depends on the company's culture, values, and communication policies. Lastly, the choice between top-down or bottom-up approaches depends on the organizational structure, decision-making power, and leadership style of the company. A strategist should carefully consider these factors before making a decision.

Question 12

"Welcome bad news" is one of six guidelines for effective strategic management offered by R. T. Lenz.

Accepted Answer

This statement is true. "Welcome bad news" is one of the guidelines suggested by R. T. Lenz for effective strategic management.

Question 13

Increased education and diversity of the workforce at all levels are reasons why the top-down approach should be favored in organizations.

Accepted Answer

Increased education and diversity of the workforce have led to a shift towards more collaborative and participative approaches to decision making, with a greater emphasis on bottom-up approaches. Top-down approaches may be less effective in tapping into the diverse perspectives and knowledge of a more educated and diverse workforce.

Question 14

All of the following are reasons to be completely open as opposed to secretive with the strategy process EXCEPT
A) managers, employees and other stakeholders can readily contribute to the process.
B) stakeholders have greater basis for understanding and committing to a firm that is open.
C) visibility promotes democracy, whereas secrecy promotes autocracy.
D) participation and openness enhance understanding, commitment and communication within the firm.
E) openness limits rival firms from imitating or duplicating the firm's strategies.

Accepted Answer

The reason to be secretive with the strategy process is that it limits rival firms from imitating or duplicating the firm's strategies. Therefore, option E is not a reason to be completely open. Options A, B, C, and D are reasons to be completely open with the strategy process as they promote participation, understanding, commitment, communication, and democracy within the firm.

Question 15

To enhance effectiveness, R. T. Lenz recommends keeping the strategic management process routine.

Accepted Answer

R. T. Lenz suggests that the strategic management process should be dynamic and adaptive rather than routine, to effectively respond to changing environments and challenges.

Question 16

The strategic planning process should be a learning process for all managers and employees.

Accepted Answer

The strategic planning process should involve all managers and employees in order to gather diverse viewpoints and ensure buy-in from all stakeholders. As a result, the process should also be a learning process that helps individuals better understand the organization's goals, priorities, and strategies. Additionally, through the planning process, employees can gain new skills and insights that can be applied to their work.

Question 17

IFRS standards comprise 25,000 pages, whereas GAAP standards comprise 5,000 pages.

Accepted Answer

IFRS standards actually comprise around 3,000 pages, while GAAP standards comprise around 25,000 pages.

Question 18

With regard to the visible or hidden issue, most executives agree that
A) the SEC should regulate whether or not companies make their strategic information visible.
B) some strategic information should remain confidential to top managers.
C) a company has gone too far when it takes steps to ensure that strategic information is not disseminated beyond "the inner circle."
D) the potential benefit of improved employee and stakeholder motivation and input is not worth the risk of rival firms easily knowing and exploiting a firm's strategies.
E) keeping strategies secret from employees and stakeholder will likely improve communication, understanding, and commitment.

Accepted Answer

Most executives agree that some strategic information should remain confidential to top managers. While transparency can be beneficial for improving communication and commitment, there are certain strategic decisions that should only be shared with top management to prevent sensitive information from being leaked to rival firms.

Question 19

Public accounting firms usually avoid strategy-evaluation services.

Accepted Answer

Public accounting firms do offer strategy-evaluation services, as it falls within the scope of their consulting services.

Question 20

Most executives believe that some strategic information should remain confidential to top managers.

Accepted Answer

Most executives believe that some strategic information should remain confidential to top managers to protect the interests of the company and its stakeholders, and to prevent sensitive information from leaking to competitors or the public.

Quiz 9: Strategy Review, Evaluation, and Control

What are the three particular challenges that all strategists face today?

Most organizations can afford to pursue ________ corporate-level strategies at any given time.

The accounting switch from GAAP to IFRS in the United States is going to result in substantial costs to businesses for fees, upgraded software systems, and training.

Most strategy literature advocates that strategic management is

The U.S. Chamber of Commerce supports a change from to IFRS to GAAP, saying it will help the United States compete in the world economy.

Believing it will make it easier for investors to compare firms across countries and make it easier to raise capital globally, most large accounting firms and multinational firms favor the switch from GAAP to IFRS.

Mintzberg's notion of "crafting" strategies

Increased education and diversity of the workforce at all levels are reasons why

Which of the following is NOT a guideline for an effective strategic planning process?