Question 1

One of the ways to keep a strategic plan on track is to make it very comprehensive, covering as many scenarios for the future as you can.

Accepted Answer

To keep a strategic plan on track, you need to engage people, keep it simple, stay focused, and keep moving toward your vision of the future.

Question 2

A continuity strategy is the common grand strategy that involves little or no significant change.

Accepted Answer

A stability strategy is a grand strategy that involves little or no significant change.

Question 3

Strategy formulation is the process of choosing among different strategies and altering them to best fit the organization's needs.

Accepted Answer

Strategy formulation is the process of choosing among different strategies and altering them to best fit the organization's needs.

Question 4

SWOT analysis helps management to develop a realistic understanding of the organization in relation to internal and external environments.

Accepted Answer

SWOT analysis should provide a realistic understanding of the organization in relation to its internal and external environments so you can better formulate strategy in pursuit of the firm's mission.

Question 5

A good vision statement should describe a company's major strengths and competitive advantage in its industry.

Accepted Answer

Descriptions of major strengths and competitive advantage should be included in a mission statement.See Table 6.1.

Question 6

A vision will be demoralizing to employees if it describes a future state that appears beyond the reach of the organization.

Accepted Answer

A vision should be positive and inspiring, and it should stretch the organization and its employees to achieve a desired future state that appears beyond its reach.

Question 7

A defensive strategy is sometimes called a retrenchment strategy.

Accepted Answer

A defensive strategy or a retrenchment strategy, is a grand strategy that involves reduction in the organization's efforts.

Question 8

After the assessment of current organizational performance, the subsequent explanation of how its mission is to be accomplished is called a comprehensive strategy.

Accepted Answer

A grand strategy, after an assessment of current organizational performance, explains how the organization's mission is to be accomplished.

Question 9

A grand strategy can be established using tools like SWOT analysis and forecasting.

Accepted Answer

Among the strategic-planning tools and techniques used to establish a grand strategy are (1) SWOT analysis and (2) forecasting.

Question 10

The primary purpose of competitive intelligence is to challenge the thinking of employees to make them better equipped to produce novel ideas for business.

Accepted Answer

Practicing competitive intelligence means gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately.If you are a manager, one of your worst nightmares is that a competitor will surprise you with a service or product.

Question 11

Strategy actualization is the term for putting strategic plans into effect.

Accepted Answer

Putting strategic plans into effect is strategy implementation.

Question 12

The strategic-management process has five steps and a feedback loop.

Accepted Answer

The strategic-management process has five steps, plus a feedback loop .

Question 13

The starting point in establishing a grand strategy is usually an analysis of Porter's competitive forces.

Accepted Answer

Among the techniques used in strategy formulation, rather than a grand strategy, is Porter's competitive forces and strategies.

Question 14

A common challenge to strategy implementation is resistance by people within the organization.

Accepted Answer

Often implementation means overcoming resistance by people who feel the plans threaten their influence or livelihood.This is particularly the case when the plans must be implemented rapidly, since delay is the easiest kind of resistance there is.

Question 15

According to Burt Nanus, good vision statements are useful because they help people to consider all interesting elements in their environments.

Accepted Answer

Burt Nanus says that a good vision statement helps align people's energies in a common direction, and prevents people from being overwhelmed by immediate problems because the vision statement helps distinguish what is truly important from what is merely interesting.

Question 16

A mission statement should be ambitious.

Accepted Answer

Good vision statements are typically ambitious.See Table 6.1.

Question 17

Obsolete technology and outdated facilities are examples of organizational threats.

Accepted Answer

Does your organization have obsolete technology? outdated facilities? a shaky marketing operation? These are examples of organizational weaknesses, the drawbacks that hinder an organization in executing strategies in pursuit of its mission.

Question 18

Alaska Airline was profitable in 2011, prompting is to decide to remain a "smallish, specialized, regional airline in a world of global giants," which is an example of a stability strategy.

Accepted Answer

A stability strategy is a grand strategy that involves little or no significant change.Example: Alaska Airlines, which enjoyed a profitable year in 2011, following a decade in which other carriers went bankrupt, decided to remain a "smallish, specialized, regional airline in a world of global giants," says one report, and to avoid cross-continental alliances and megamergers.Its stability strategy is simply to focus on lowering the cost per available seat mile.

Question 19

A development strategy is the common grand strategy that involves expansion.

Accepted Answer

A growth strategy is a grand strategy that involves expansion, as in sales revenues, market share, number of employees, or number of customers or (for nonprofits) clients served.

Question 20

Many good mission statements include descriptions of an organization's customers, as well as its major products or services.

Accepted Answer

Mission statements may include information about customers and products or services.

Quiz 6: Strategic Management: How Exceptional Managers Realize a Grand Design

One of the ways to keep a strategic plan on track is to make it very comprehensive, covering as many scenarios for the future as you can.

A continuity strategy is the common grand strategy that involves little or no significant change.

Strategy formulation is the process of choosing among different strategies and altering them to best fit the organization's needs.

SWOT analysis helps management to develop a realistic understanding of the organization in relation to internal and external environments.

A good vision statement should describe a company's major strengths and competitive advantage in its industry.

A vision will be demoralizing to employees if it describes a future state that appears beyond the reach of the organization.

A defensive strategy is sometimes called a retrenchment strategy.

After the assessment of current organizational performance, the subsequent explanation of how its mission is to be accomplished is called a comprehensive strategy.

A grand strategy can be established using tools like SWOT analysis and forecasting.

The primary purpose of competitive intelligence is to challenge the thinking of employees to make them better equipped to produce novel ideas for business.

Strategy actualization is the term for putting strategic plans into effect.

The strategic-management process has five steps and a feedback loop.

The starting point in establishing a grand strategy is usually an analysis of Porter's competitive forces.

A common challenge to strategy implementation is resistance by people within the organization.

According to Burt Nanus, good vision statements are useful because they help people to consider all interesting elements in their environments.

A mission statement should be ambitious.

Obsolete technology and outdated facilities are examples of organizational threats.

Alaska Airline was profitable in 2011, prompting is to decide to remain a "smallish, specialized, regional airline in a world of global giants," which is an example of a stability strategy.

A development strategy is the common grand strategy that involves expansion.

Many good mission statements include descriptions of an organization's customers, as well as its major products or services.