Question 1

________ are positive trends in external environmental factors,while ________ are negative trends.

Accepted Answer

Opportunities are positive trends in external environmental factors that can benefit a business or organization, while threats are negative trends that pose potential risks or challenges. Strengths and weaknesses are internal factors, while risks typically refer to potential negative outcomes or consequences of a decision or action. Therefore, option C - Opportunities and Threats - are the best choices for this question.

Question 2

Strategic management consists of the decisions and actions that determine the long-run performance of the organization.

Accepted Answer

Strategic management is concerned with setting the direction, goals, and objectives of an organization, and making decisions and taking actions to achieve those goals over the long term.

Question 3

The purpose of Cathy's Clowns is "to provide healthy entertainment that makes young children laugh." This statement describes Cathy's ________.

Accepted Answer

The statement given describes Cathy's mission statement, which outlines the purpose or reason for the company's existence.

Question 4

At which step of the strategic management process do managers try to find out what the competition is doing and what pending legislation might affect the organization?

Accepted Answer

Conducting external analysis involves identifying external factors that may affect the organization, such as competition and legislation. This step is crucial in developing effective strategies that can help the organization achieve its goals.

Question 5

The mission statement of Cirque du Soleil states,"We are united by one overriding goal: to entertain,uplift,and enlighten audiences the world over." This statement relates most closely to which component of a mission statement?

Accepted Answer

The answer of The mission statement of Cirque du Soleil...

Question 6

At which step of the strategic management process do managers identify opportunities and threats?

Accepted Answer

External analysis is the step in which managers identify opportunities and threats by analyzing the external environment, including competition, politics, societal trends, technology, and economics.

Question 7

The ________ answers the question "What is our reason for being in business?"

Accepted Answer

A mission statement defines the purpose and reason for the existence of a business or organization. It serves as a guiding principle for decision-making and helps to establish the company's brand identity. A strategic plan outlines the company's goals and objectives, while operational goals are specific, measurable targets for achieving those goals.

Question 8

"At IBM,we recognize individual differences and appreciate how these differences provide a powerful competitive advantage and a source of great pride and opportunity in the workplace and marketplace." This statement relates most closely to which component of a mission statement?

Accepted Answer

The statement highlights IBM's concern for employees, specifically their recognition and appreciation of individual differences, which can be a source of pride and opportunity in the workplace and marketplace.

Question 9

Mission statement should contain an expression about ________.

Accepted Answer

A mission statement often includes a concern for public image as it reflects the organization's values and how it wants to be perceived by the public.

Question 10

Managers use the strategic management process in order to ________.

Accepted Answer

The answer of Managers use the strategic management process in...

Question 11

In response to the global recession,companies that focused on flexible strategies were better able to cope with the environmental uncertainty.

Accepted Answer

Companies that adopted flexible strategies such as diversification, cost-cutting measures, and innovation were able to adapt easily to the changing market conditions during the global recession. This helped them to minimize the impact of the recession on their operations and financial performance. Therefore, it can be concluded that companies focusing on flexible strategies were better able to cope with the environmental uncertainty caused by the recession.

Question 12

A ________ is a strategic design for how a company intends to profit from its strategies,work processes,and work activities.

Accepted Answer

A business model is a framework or plan for how a company will generate revenue and achieve profitability. It outlines the company's value proposition, target market, revenue streams, cost structure, and key activities and resources required to deliver value to customers. A mission statement is a brief statement that specifies the purpose or fundamental explanation for the company's existence. A master plan is a long-term strategic plan that identifies goals, resource allocation, and timelines for achieving objectives, while a functional strategic plan focuses on specific functional areas within the organization, such as marketing or finance. None of these choices fully capture the concept of a business model.

Question 13

A business model comprises of ________ and whether the company can make money doing that.

Accepted Answer

A business model is centered around providing products or services that customers will value and determining whether the company can make a profit from doing so. While developing strategies, short-run performance, and beating the competition are important aspects of running a successful business, they are not the core components of a business model.

Question 14

Generally,strategic plans do not work well for small,entrepreneurial companies.

Accepted Answer

While strategic planning may seem less formalized for smaller companies, creating a clear plan and vision for growth can be essential to success in the competitive market.

Question 15

Studies of the factors that contribute to organizational performance have shown ________ relationship between strategic planning and performance.

Accepted Answer

Studies have consistently shown a positive relationship between strategic planning and organizational performance. Organizations that engage in strategic planning tend to have better overall performance, including increased profitability, market share, and employee satisfaction. Strategic planning helps organizations to identify goals, set priorities, allocate resources effectively, and adapt to changing environmental conditions.

Question 16

The most fundamental questions about strategy address why firms,facing the same environmental conditions,have varying levels of performance.

Accepted Answer

This statement is true. It is widely recognized that firms facing the same environmental conditions can have significantly different levels of performance, and understanding the reasons behind these differences is a central concern in the study of strategy.

Question 17

"At HBC,we have a tremendous sense of responsibility,not only to the continued growth and success of our company,but also to the nation that we have been instrumental in building.Our culture is grounded in a commitment to take into account the social needs and issues impacting the communities where we do business." This statement relates most closely to which component of a mission statement?

Accepted Answer

The answer of "At HBC,we have a tremendous sense of...

Question 18

Concern for survival,growth,and profitability are all expressed in the organization's ________.

Accepted Answer

The answer of Concern for survival,growth,and profitability are all expressed...

Question 19

Computer peripherals provider Ascent plans to enter a new market in another country.Which of the following represents a threat for Ascent?

Accepted Answer

The laws in the country not favouring foreign businesses could pose a threat to Ascent's entry into the new market.

Question 20

The same environment can present opportunities to one organization and pose threats to another.

Accepted Answer

This statement is true. The external environment, such as economic conditions, competition, technology, and legal/political factors, can affect organizations differently depending on their resources, capabilities, and strategies. What may be an opportunity for one organization may be a threat to another. For example, a new technology may be an opportunity for a company that can adopt it quickly and effectively, but a threat to a company that relies on an outdated technology. Similarly, a changing regulatory environment may benefit companies that are well-prepared to comply with the new regulations but pose a threat to those that are less prepared.

Quiz 10: Managing Strategically

are positive trends in external environmental factors,while are negative trends.