BUS 195 (CHAPTER 1)

During what stage of strategic management are a firm's specific internal strengths and weaknesses determined? A) Formulation B) Implementation C) Evaluation D) Feedback E) Goal-setting

A) Formulation

In which phase of strategic management are long-term objectives especially important? A) Formulation B) Control C) Evaluation D) Implementation E) Management

A) Formulation

What are the means by which long-term objectives will be achieved? A) Strategies B) Strengths C) Weaknesses D) Policies E) Opportunities

A) Strategies

Which individuals are most responsible for the success and failure of an organization? A) Strategists B) Financial planners C) Personnel directors D) Stakeholders E) Human resource managers

A) Strategists

The Internet has transferred power from ________ to ________. A) businesses; individuals B) governments; businesses C) individuals; businesses D) businesses; governments E) individuals; governments

A) businesses; individuals

Strategy evaluation is necessary because A) internal and external factors are constantly changing. B) the SEC requires strategy evaluation. C) success today is a guarantee of success tomorrow. D) the IRS requires strategy evaluation. E) firms have limited resources.

A) internal and external factors are constantly changing.

A strong ________ heritage underlies the study of strategic management. A) military B) government C) political D) social E) cultural

A) military

Organizations using strategic management are generally ________ than those that do not. A) more profitable B) more complex C) less profitable D) less successful E) less complex

A) more profitable

Terms such as objectives, mission, strengths, and weaknesses were first formulated to address problems A) on the battlefield. B) in the boardroom. C) on the trading floor. D) in the military hierarchy. E) in interpersonal relationships.

A) on the battlefield.

Which of the following is NOT a pitfall an organization should avoid in strategic planning? A) Failing to communicate the plan to employees B) Involving all managers rather than delegating planning to a "planner" C) Top managers not actively supporting the strategic-planning process D) Doing strategic planning only to satisfy accreditation or regulatory requirements E) Failing to create a collaborative climate supportive of change

B) Involving all managers rather than delegating planning to a "planner"

With which phase of strategic management is most strongly associated with "action"? A) Strategy formulation B) Strategy implementation C) Strategy evaluation D) Competing advantages E) Measuring performance

B) Strategy implementation

Both business and military organizations must ________ and ________ to be successful. A) be impervious to change; continually improve B) adapt to change; constantly improve C) shun change; stay the course D) be impervious to change; stay the course E) none of the above

B) adapt to change; constantly improve

How do line managers become "owners" of the strategy? A) By attending top manager meetings B) By executing plans formulated by other people C) By involvement in the strategic-management process D) By becoming a shareholder of the firm E) By buying off top managers

C) By involvement in the strategic-management process

What are guides to decision making that address repetitive or recurring situations called? A) Strategies B) Rules C) Policies D) Objectives E) Goals

C) Policies

What step in the strategic management process involves mobilizing employees and managers to put strategies into action? A) Strategy formulation B) Strategy evaluation C) Strategy implementation D) Strategic advantage E) Competitive advantage

C) Strategy implementation

The goal of strategic management is to A) achieve competitive advantage. B) maintain competitive advantage. C) achieve and maintain competitive advantage. D) eliminate competitive advantage. E) eliminate and abolish competitive advantage.

C) achieve and maintain competitive advantage.

The strategic-management process represents a(n) ________, ________, and ________ approach for determining an enterprise's future direction. A) logical; systematic; subjective B) intuitive; disorganized; subjective C) logical; systematic; objective D) intuitive; disorganized; objective E) inconsistent; systematic; subjective

C) logical; systematic; objective

Specific results an organization seeks to achieve in pursuing its basic mission are A) strategies. B) rules. C) objectives. D) policies. E) tenets.

C) objectives.

Business or military success is A) generally the happy result of accidental strategies. B) undermined by the element of surprise. C) the product of both attention to changing external and internal conditions and the insightful adaptations to those conditions. D) unrelated to external conditions. E) none of the above

C) the product of both attention to changing external and internal conditions and the insightful adaptations to those conditions.

What can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives? A) Strategy formulation B) Strategy evaluation C) Strategy implementation D) Strategic management E) Strategic leading

D) Strategic management

An organization's vision statement A) is a constant reminder to its employees of why the organization exists. B) broadly charts the future direction of an organization. C) addresses the basic question: "What is our business?" D) answers the question: "What do we want to become?" E) none of the above

D) answers the question: "What do we want to become?"

In mass retailing, big-box companies like Walmart, Best Buy, and Sears are A) gaining competitive advantage over smaller stores. B) participating in a dramatic shift to becoming bigger. C) increasing the square-footage of their retail locations. D) finding that less brick and mortar is better. E) noticing a sharp decline in online purchases.

D) finding that less brick and mortar is better.

There is a dramatic shift in mass retailing to A) "trading up" and taking customers from more exclusive stores. B) selling only the most expensive merchandise. C) opening dramatically larger supercenters. D) operating stores with less square footage. E) cutting back on their online presence.

D) operating stores with less square footage.

Which of the following is part of the Strategic-Management Model? A) Measure and evaluate performance B) Develop mission and vision statements C) Establish long-term objectives D) Implement strategies E) All of the above

E) All of the above

The strategic-management process is becoming more widely used by A) small firms. B) nonprofit institutions. C) governmental organizations. D) multinational conglomerates. E) all of the above

E) all of the above

A vision statement commonly answers the question, "What is our business?" whereas a mission statement is more likely to answer the question "What do we want to become?"

FALSE

A vision statement describes an organization's values and priorities.

FALSE

According to Peter Drucker "Imagination is more important than knowledge, because knowledge is limited, whereas imagination embraces the entire world."

FALSE

An objective, logical, systematic, & non intuitive approach for making major decisions in an organization is a way to describe the strategic-management process.

FALSE

Annual objectives are especially important in strategy formulation.

FALSE

By occasionally monitoring external events, companies should be able to identify when change is required.

FALSE

Determining opportunities and threats is generally the first step in strategic planning.

FALSE

Middle managers are generally the most visible and critical of all strategic managers.

FALSE

Most traditional retailers have tried in vain to use their online sales to boost in-store sales.

FALSE

Once a firm acquires a competitive advantage, it is usually able to sustain it indefinitely.

FALSE

Once an effective strategy is designed, modifications are rarely required.

FALSE

The best approach for strategists is to carefully develop strategic plans themselves and then present them to operating managers to execute.

FALSE

The decision to merge is a strategy-formulation issue but the decision to form a joint venture is a strategy-implementation issue.

FALSE

The final stage in strategic management is strategy implementation.

FALSE

U.S. firms are not being aggressively challenged in the computer industry.

FALSE

A clear mission statement describes the values and priorities of an organization.

TRUE

All firms have a strategy, even if it is informal, unstructured, and sporadic.

TRUE

Analytical and intuitive thinking complement each other.

TRUE

Firms can be more proactive with strategic management.

TRUE

Low-performing firms typically underestimate their competitor's strengths and overestimate their own strengths.

TRUE

Objectives should be measurable, challenging, reasonable, consistent, and clear.

TRUE

One of the fundamental strategy evaluation activities is reviewing the external and internal factors on which strategies are based.

TRUE

Strategic management focuses on integrating management, marketing, finance and accounting, production and operations, research and development, and information systems to achieve organizational success.

TRUE

Substantial research indicates that a healthier workforce can more effectively and efficiently implement strategies.

TRUE

The strengths and weaknesses of an organization are determined relative to the strengths and weaknesses of its competitors.

TRUE

The terms strategic management and strategic planning are used synonymously in this text.

TRUE

To be effective, strategic-management must be a process that familiarizes managers and employees with the key strategic issues facing an organization and the feasible alternatives for resolving those issues.

TRUE