Ch. 1 Multiple Choice
The three original broadcast networks captured about ________ of the prime-time audience in 1978, but today their combined market share is less than ________.
90%/50%
How do line managers become "owners" of the strategy?
By involvement in the strategic-management process
________ allows firms to sell products, advertise, purchase supplies, bypass intermediaries, track inventory, and eliminate paperwork.
E-commerce
________ and ________ are external forces transforming business and society today.
E-commerce; globalization
Which of the following statements is false?
Effective strategic planning should accept the assumptions underlying the current corporate strategy.
During what stage of strategic management are a firm's specific internal strengths and weaknesses determined?
Formulation
In which phase of strategic management are annual objectives especially important?
Implementation
What step in the strategic development process involves mobilizing employees and managers to put strategies into action?
Implementing strategy
The changes that occurred when Robert Iger took over the reigns at Disney demonstrate which current trend in organizations?
Increased decentralizing of strategic management
What types of skills are especially critical for successful strategy implementation?
Interpersonal
What is not a pitfall an organization should avoid in strategic planning?
Involving all managers rather than delegating planning to a "planner"
What is not a guideline given for effective strategic planning?
It should be controlled by "technicians."
Which statement best describes intuition?
It should be coupled with analysis in decision-making.
What are enduring statements of purpose that distinguish one business from other similar firms?
Mission statement
The trends in newspaper circulation in the United States provide support for which statement?
Most competitive advantages are hard to sustain.
Which of the following is not included in the strategic management model?
Perform internal research to identify customers
What are guides to decision making?
Policies
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?
Strategic Management
Which of the following statements is false?
Strategic management must become a self-perpetuating socialist mechanism.
________ is used to refer to strategic formulation, implementation and evaluation, with ________ referring only to strategic formulation.
Strategic management; strategic planning
Which individuals are most responsible for the success and failure of an organization?
Strategists
An important activity in ________ is taking corrective action.
Strategy evaluation
Which phase of strategic management is called the action phase?
Strategy implementation
________ is not a strategy-implementation activity.
Taking corrective actions
What is not a reason given for poor or no strategic planning in organizations?
Trust of management
The goal of strategic management is to
achieve and maintain competitive advantage.
Both business and military organizations must ________ and ________ to be successful.
adapt to change; continually improve
Strategic management focuses on integrating management, ________, and information systems to achieve organizational success.
all of the above
The strategic-management process is becoming more widely used by
all of the above
________ can best be described as short-term in nature.
annual objectives
An organization's vision statement
answers the question: "What do we want to become?"
Strategic management enables an organization to ________, instead of just responding to threats in its business environment.
be proactive
The Internet has transferred power from ________ to ________.
businesses, individuals
Superior strategy formulation and implementation ________ an opponent's superiority in numbers and resources.
can overcome
Anything that a firm does especially well compared to rival firms is referred to as
competitive advantage
Military strategy is based on an assumption of ________, whereas business strategy is based on an assumption of ________.
conflict; competition
Long-term objectives should be all of the following except
continually changing
The first step in strategic planning is generally
developing a vision statement
The act of strengthening employees' sense of effectiveness by encouraging and rewarding them for participating in decision-making and exercising initiative and imagination is referred to as
empowerment
The fact that Apple has no manufacturing facilities of its own
has enabled it to remain financially lean with virtually no long-term debt.
Strategy evaluation is necessary because
internal and external factors are constantly changing.
The strategic-management process
is a continuous process
According to Greenley, strategic management offers all of these benefits except:
it maximizes the effects of adverse conditions and changes.
All of the following are guidelines for effective strategic planning except:
it should be a paper process more than a people process.
The strategic-management process represents a(n) ________, ________, and ________ approach for determining an enterprise's future direction.
logical; systematic; objective
A strong ________ heritage underlies the study of strategic management.
military
According to research, organizations using strategic management are ________ than those that do not.
more profitable
Specific results an organization seeks to achieve in pursuing its basic mission are
objectives
Terms such as objectives, mission, strengths, and weaknesses were first formulated to address problems
on the battlefield.
Organizations should take a(n) ________ approach in their industry.
proactive rather than a reactive
What are the means by which long-term objectives will be achieved?
strategies
According to Webster's New World Dictionary, ________ is "the science of planning and directing large-scale military operations, of maneuvering forces into the most advantageous position prior to actual engagement with the enemy."
strategy
Internal ________ are activities in an organization that are performed especially well.
strengths
The one factor that has most significantly impacted the nature and core of buying and selling in nearly all industries has been
the Internet
Business or military success is
the product of both attention to changing external and internal conditions and the insightful adaptations to those conditions.
Usually, external opportunities and threats are
uncontrollable by a single organization.
All of these are pitfalls an organization should avoid in strategic planning except:
using plans as a standard for measuring performance.
