Management 478 Chapter 1 Smartbook

Strategy ______ consists of decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain a competitive advantage. a) analysis b) formulation c) implementation d) value

formulation

Strategic management is directed toward a company's ______. a) short-term perspectives b) competitive advantages c) goals and objectives d) mission and vision

goals and objectives

Strategic management is directed toward the organization's overall organizational ___ and ___.

goals, objectives

Social responsibility is the expectation that businesses or individuals will strive to ______. a) earn above-average profits for its shareholders b) provide shareholders with a good return on their investments c) improve the overall welfare of society d) treat all stakeholder groups equally

improve the overall welfare of society

___ requires that organizations continually monitor and scan the environment and respond to threats and opportunities. a) organizational design b) behavioral control c) entrepreneurial strategy d) informational control

informational control

Ambidexterity requires that managers balance a focus on existing markets and products with ______. a) innovation b) digitization c) stakeholders d) mechanization

innovation

A firm's ______ assets, such as patents, are becoming increasingly important to creating a firm's competitive advantage. a) internal b) tangible c) intellectual d) objective

intellectual

___ strategies are those organizational decisions that follow from analysis and rarely survive in their original forms. a) environmental b) deliberate c) intended d) realized

intended

Analyzing the firm's ______ environment, such as operations, may uncover potential sources of competitive advantage. a) strategic b) industry c) external d) internal

internal

When managers refer to their organizational boundaries they mean both ______ and ______ boundaries. a) managerial; employee b) internal; external c) departmental; corporate d) formal; informal

internal; external

How does digitizing business processes affect companies? a) it makes them less profitable b) it makes them more efficient c) it has little overall effect d) it makes them less efficient

it makes them more efficient

Which of the following statements regarding strategic management is true? a) it focuses on reaching long-term goals b) it requires incorporating both short-term and long-term perspectives c) it stresses that reaching short-term goals will lead to long-term success d) it requires more emphasis on reaching short-term performance targets

it requires incorporating both short-term and long-term perspectives

Studies show that managers often focus on short-term goals to the detriment of creating ______ shareholder value. a) efficient b) ambidextrous c) long-term d) individual

long-term

The ______ view of leadership assumes that the organization's leader is the driving force in the success or failure of the business. a) strategic management b) organizational c) romantic d) external control

romantic

The three primary participants in corporate governance are the ______, management, and board of directors. a) customers b) bondholders c) stakeholders d) shareholders

shareholders

Corporate governance is the relationship among ______ in determining the direction and performance of corporations. a) all stockholders b) shareholders, management, and the board of directors c) the creditors d) institutional investors and higher-level employees

shareholders, management, and the board of directors

Financial markets often place an emphasis on managers meeting ______ performance goals. a) long-term b) unattainable c) short-term d) organizational

short-term

Which of the following is the most inclusive term for the individuals, groups, and organizations that have a claim in the success of an organization? a) shareholders b) strategists c) stockholders d) stakeholders

stakeholders

Sound strategies are of no value if they ______. a) are not properly implemented b) are not immediately profitable c) do not include entrepreneurial strategies d) do not include international strategies

are not properly implemented

The two opposing ways of examining stakeholder management are called ______ and ______. a) intended strategy; realized strategy b) symbiosis; zero sum c) efficiency; effectiveness d) internal; external

symbiosis; zero sum

Analyzing a firm's strengths and relationships within its value chain can uncover potential sources of its competitive ______. a) disadvantage b) resources c) advantage d) strategies

advantage

What term is used to describe the challenge managers face to maximize existing products and markets while seeking new opportunities? a) efficiency b) efficacy c) ambidexterity d) digitization

ambidexterity

Match the strategic management process with its corresponding term. analysis- decisions- actions-

analysis- strategic analysis decisions- strategy formulation actions- strategy implementation

According to the ___ view of leadership, the leader is assumed to be the most important element in a company's success or failure.

romantic

Which form of stakeholder management views stakeholders as interdependent? a) symbiosis b) capitalistic c) zero-sum d) socialistic

symbiosis

Which of the following are social responsibility expectations that go beyond a firm's product and service quality? - increasing shareholder profits every quarter - accurate financial and accounting reporting - fair labor standards - environmental sustainability

- accurate financial and accounting reporting - fair labor standards - environmental sustainability

Strategic management of an organization entails which of the following ongoing processes? - actions - decisions - analyses - inventory - incremental management

- actions - decisions - analyses

Which of the following statements about operational effectiveness are correct? - companies that are operationally effective perform similar tasks better than their competitors - a sustainable competitive advantage is not achieved through operational effectiveness alone - total quality, benchmarking, and business process reengineering are ways that companies can be operationally effective - business strategy is achieved through operational effectiveness alone

- companies that are operationally effective perform similar tasks better than their competitors - a sustainable competitive advantage is not achieved through operational effectiveness alone - total quality, benchmarking, and business process reengineering are ways that companies can be operationally effective

Business-level strategy is concerned with how companies ______. - compete and outperform rivals - create synergies between divisions - manage their portfolio of businesses - achieve and sustain a competitive advantage

- compete and outperform rivals - achieve and sustain a competitive advantage

Strategies often fail when managers fail to do which of the following? - conduct a thorough analysis of the external and internal environments - analyze the company's overarching goals - ask the Board of Directors to vote on them - check with government officials

- conduct a thorough analysis of the external and internal environments - analyze the company's overarching goals

Which of the following are examples of business-level strategies? - creating synergies between businesses - cost leadership - differentiation - focus on niche market

- cost leadership - differentiation - focus on niche market

Which elements of a business must be involved in the creation of an ethical organization? - direction of the organization - design of the organization - commitment of the organization - digitization of the organization

- direction of the organization - design of the organization - commitment of the organization

Which of the following are key attributes of strategic management? - directs the organization toward overall goals and objectives - recognizes the importance of effectiveness over efficiency - includes multiple stakeholders in decision making - incorporates both short-term and long-term perspectives

- directs the organization toward overall goals and objectives - includes multiple stakeholders in decision making - incorporates both short-term and long-term perspectives

Which of the following are evaluated during the analysis process of strategic management? - external environment - internal environment - strategic goals - leadership compensation

- external environment - internal environment - strategic goals

Which of the following statements regarding corporate-level strategy are correct? - it determines whether managers should use cost leadership or differentiation strategy - it determines whether managers should focus on narrow or industry-wide market segments - it determines which business(es) should be in the company's portfolio - it determines how to manage the company's portfolio of businesses to create synergies among business units

- it determines which business(es) should be in the company's portfolio - it determines how to manage the company's portfolio of businesses to create synergies among business units

Which of the following are true of strategy implementation? - it involves the leader doing the learning for the organization - it ensures that the organization will attract global rather than domestic business opportunities - it involves coordinating and integrating activities within the firm and with suppliers and customers - it involves establishing appropriate controls and organizational designs

- it involves coordinating and integrating activities within the firm and with suppliers and customers - it involves establishing appropriate controls and organizational designs

Which of the following are the best reasons managers should develop learning organizations? - markets and processes can change rapidly - change is very slow in the business environment - businesses need to maximize the skills of their workers - stakeholders do not like change

- markets and processes can change rapidly - businesses need to maximize the skills of their workers

The external control view of leadership emphasizes the role of which of the following types of factors in the success or failure of a firm? - new technologies - economic downturns or upturns - governmental legislation - the firm's leader

- new technologies - economic downturns or upturns - governmental legislation

The triple bottom line measures the performance of which of the following? - social - environmental - manufacturing - financial - entrepreneurial

- social - environmental - financial

Which of the following are stakeholder groups that managers should consider when making decisions? - the community - board of directors - stockholders - competitors

- the community - board of directors - stockholders

Which of the following state the goals and intentions that help define a firm's competitive advantage? - the firm's mission - the firm's strategic objectives - the firm's balance sheet - the firm's vision

- the firm's mission - the firm's strategic objectives - the firm's vision

Which of the following must a firm's strategy be consistent with? - the vision of the firm's founder - the firm's organizational structure - the firm's design - the strategy of the firm's competitors

- the firm's organizational structure - the firm's design

Which of the following are true of behavioral controls? - they involve monitoring and scanning the external environment - they involve responding to threats and opportunities - they involve balancing rewards and incentives - they involve balancing culture and boundaries or constraints

- they involve balancing rewards and incentives - they involve balancing culture and boundaries or constraints

Which of the following are needed in order for entrepreneurial initiatives to be successful? - viable opportunities - effective strategies - traditional ideas - long-established products

- viable opportunities - effective strategies

Managers execute or implement their decisions as ______ in the third step of the strategic management process. a) objectives b) actions c) analyses d) operations

actions

The third step of the strategic management process is the ______ step. a) actions b) competitive c) decisions d) analyses

actions

What are the four levels of a company's strategy formulation? a) business, corporate, international, and entrepreneurial b) business, corporate, mission, and vision c) business, corporate, intellectual, and international d) business, corporate, supply chain, and entrepreneurial

business, corporate, international, and entrepreneurial

Which statement about the triple bottom line is true? a) the triple bottom line is measured by companies but has no effect on strategic decisions b) companies have realized that failure to measure it can negatively affect the company and its community c) the triple bottom line was developed by the government hoping to persuade companies to take greater responsibility for the nation's environment d) small, international companies put much emphasis on the triple bottom line, but large U.S. corporations tend to dismiss it

companies have realized that failure to measure it can negatively affect the company and its community

Managers must determine how to create a(n) ______ advantage in the marketplace to be successful over the long-term. a) business b) realized c) short-term d) competitive

competitive

A firm's vision, mission, and strategic objectives are used to develop specific goals, which form the basis for its ______. a) realized strategy b) operational advantage c) emergent strategy d) competitive advantage

competitive advantage

In terms of analyzing the external environment of the firm, the industry environment consists of ______ and other organizations that may threaten the company's success. a) stakeholders b) employees c) competitors d) shareholders

competitors

Which is the best example of digital transformation? a) computerizing a manufacturing process b) outsourcing customer service c) creating an online venue for virtual conferences d) creating an online customer database

creating an online venue for virtual conferences

During the ______ step in the strategic management process, managers answer two questions: what industries should we compete in and how should we compete in those industries? a) actions b) decisions c) leadership d) analysis

decisions

In strategic management, effectiveness can best be described as ______. a) the trade-off between intended and emergent strategy b) doing what is best for shareholders c) earning the most profit d) doing the right thing

doing the right thing

Efficiency, in terms of strategic management, can best be described as ______. a) the trade-off between intended and emergent strategy b) doing things right c) tailoring actions to the needs of the organization rather than wasting effort d) doing the right thing

doing things right

Decisions, broadly speaking, address two basic questions: What industries should we compete in? How should we compete in those industries? These questions also often involve an organization's ______ and ______ operations. a) competitors'; partners' b) domestic; international c) competitive; noncompetitive d) functional; business

domestic; international

In strategy formulation, ______ activities are designed to create new value and is a major engine for economic growth. a) corporate-level b) marketing c) entrepreneurial d) financing

entrepreneurial

The ______ view of leadership assumes that outside factors, over which the leader has limited influence, positively or negatively affect a firm's success. a) external control b) romantic c) operational effectiveness d) ambidextrous

external control

Managers are analyzing the firm's ______ when managers are studying its competitors. a) internal environment b) external environment c) organizational goals and objectives d) intellectual assets

external environment

___ is performing similar activities better than rivals do. a) strategy b) sustainable competitive advantage c) operational effectiveness d) total quality

operational effectiveness

Because strategic management is directed toward overall organizational goals and objectives, it has the perspective of ___ versus individual rationality.

organizational

Strategic management adheres to the perspective that what might be seemingly ideal for one functional area of an organization might not be in the best interest of the total organization. This perspective is known as ______. a) the external control view of leadership b) organizational versus individual rationality c) multiple stakeholder analysis d) the integration of long- and short-term goals

organizational versus individual rationality

The essence of strategic management is the study of why some firms ______. a) have higher stock prices b) outperform others c) attract more competent employees d) earn above average profits

outperform others

Strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments is called ______ strategy. a) realized b) intended c) emergent d) unrealized

realized

___ strategy is a combination of deliberate and emergent strategies.

realized

The ______ process consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. a) external control b) romantic leadership c) strategic management d) individual rationality

strategic management

___ analysis is the starting point of the strategic management process and includes the advanced work that must be done to effectively formulate and execute strategies. a) leadership b) strategy c) business d) realized

strategy

Organizational goals and objectives should represent what is best for ______. a) a percentage of the company's stakeholders b) senior managers c) the entire organization d) a single functional area

the entire organization

Which of the following is an example of a firm's intellectual asset? a) the external environment b) the knowledge worker c) the stakeholder d) the value chain

the knowledge worker

Which of the following statements about the strategic management process is true? a) firms can select just one of the processes to focus on and still succeed b) the three processes usually take place in a sequential manner c) once implemented, the actions step cannot be altered d) the three processes are highly interdependent

the three processes are highly interdependent

True/False: Intended strategy rarely survives in its original form.

true

During the analysis step of the strategic management process, managers are concerned with the company's ______. a) vision, mission, and corporate strategy b) vision, mission, and operational effectiveness c) vision, mission, and business strategy d) vision, mission, and strategic objectives

vision, mission, and strategic objectives

Corporate-level strategy focuses on ______. a) how to compete and outperform rivals b) sustaining a competitive advantage c) increasing shareholder profits every quarter d) what business(es) should the company compete in

what business(es) should the company compete in