Ch 5,6,9,11 Strategic Management
Strategy formulation is the sum total of the activities and choices required for the execution of a strategic plan
FALSE
Poor implementation is often blamed for strategic failure
TRUE
ABC is an accounting method for allocating direct and fixed costs to individual products
FALSE
Behavior, output, and input controls are all interchangeable
FALSE
Durability is the rate at which a firm's underlying resources, capabilities can be duplicated by others.
FALSE
Evaluation and control information consists only of performance data
FALSE
SO strategics attempt to take advantage of opportunities by overcoming weaknesses
FALSE
SWOT analysis by itself is not a panacea for strategy
FALSE
SWOT is an acronym that stands for Strategy, Weaknesses, Opportunities, and Threats
FALSE
A core competency can be easily imitated to the extent that is transparent, transferable, and replicable
TRUE
ABC accounting allows accountants to charge costs more accurately than the traditional method because it allocates overhead far more precisely
TRUE
According to a survey of Fortune 500 firms, the most frequently cited problem with implementing a strategic change is that implementation took more time than originally planned
TRUE
After programs have been developed, the budget process begins
TRUE
An example of a cluster in the United States is computer technology found in the Silicon Valley
TRUE
Behavior controls specify how something is to be done through policies, rules, standard operating procedures, and orders from a superior
TRUE
Business strategy focuses on improving the competitive position of a company's or business unit's products or services within the specific industry or market segment that the company or business unit services
TRUE
Capabilities refer to a corporation's ability to exploit its resources
TRUE
Competencies are the organization's assets and are the basic building blocks of the organization
TRUE
Core competencies may mature and become core deficiencies
TRUE
General Electric is well known for its distinctive competency in management
TRUE
ISO 9000 Standard Series developed by the International Standards Association of Geneva, Switzerland, is an example of a behavior control
TRUE
If a mission does not provide a common thread for a corporation's businesses managers might be unclear about where the company is heading
TRUE
Many of the people in the organization who are crucial to successful strategy implementation probably have little to do with the development of the corporate and business strategy
TRUE
New product development would be a core competency if it goes beyond 1 division
TRUE
Niches can grow and change over time.
TRUE
One company that has successfully found a propitious niche is Frank J. Zamboni & Company, the manufacturer of the machines that smooth the ice at ice skating rinks.
TRUE
One example of a steering control used by retail stores is the inventory turnover ratio, which shows how hard an investment in inventory is working
TRUE
One of the obstacles to effective control is the difficulty in developing appropriate measures of important activities and outputs
TRUE
Performance is the end result of activity
TRUE
Standard operating procedures typically detail the various activities that must b carried out to complete a corporation's programs
TRUE
Strategy formulation and strategy implementation should be considered as two sides of the same coin
TRUE
The TOWS Matrix illustrates how the external opportunities and threats facing a particular corporation can be matched with that company's internal strengths and weaknesses to result in four sets of possible strategic alternatives
TRUE
The evaluation and control process ensures that the company is achieving what it set out to accomplish
TRUE
The first firm through a strategic window can occupy a propitious niche and discourage competition (if the firm has the required internal strengths)
TRUE
The goal is to find a propitious niche so well suited to the firm's internal and external environment that other corporations are not likely to challenge or dislodge
TRUE
The matrix of change was designed to help managers decide how quickly change should proceed in what order changes should take place, whether to start at a new site, and whether the proposed systems are stable and coherent.
TRUE
The purpose of a program or tactic is to make the strategy action-oriented
TRUE
The resources of an organization include tangible assets, human assets, and intangible assets
TRUE
The two characteristics that determine the sustainability of a firm's distinctive competency are durability and imitability.
TRUE
Those who implement strategy will probably be a much more diverse set of people than those formulate it
TRUE
