MS Chapter 1

Which statement about the triple bottom line is true?

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

Which of the following are examples of business-level strategies?

Cost leadership Differentiation Focus on niche market

Which of the following are key attributes of strategic management? (Check all that apply.)

Directs the organization toward overall goals and objectives Incorporates both short-term and long-term perspectives Includes multiple stakeholders in decision making

True or false: The most effective organizations have strong leaders at the top who make all the decisions that the rest of the organization then carries out.

False

Strategic management is directed toward the organization's overall organizational____ and _____.

Goals;objectives

______ strategies are those organizational decisions that follow from analysis and rarely survive in their original forms.

Intended

Which of the following statements regarding corporate-level strategy are correct? (Check all that apply.)

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.

Which of the following are true of strategy implementation?

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

How does digitizing business processes affect companies?

It makes them more efficient.

Which of the following statements regarding strategic management is true?

It requires incorporating both short-term and long-term perspectives.

Which of the following are the best reasons managers should develop learning organizations? (Choose all that apply.)

Markets and processes can change rapidly. Businesses need to maximize the skills of their workers.

_____statements, like vision statements, should be massively inspiring to an organization's main stakeholders and include the purpose of the organization, its scope of operations, and the basis of its competitive advantage.

Mission

______ is performing similar activities better than rivals do.

Operational effectiveness

____strategy is a combination of deliberate and emergent strategies. (Remember to type only one word in the blank.)

Realized

______ are a set of organizational goals that are used to operationalize the mission statement and cover a well-defined time frame.

Strategic objectives

______ 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.

Strategy

Which form of stakeholder management views stakeholders as interdependent?

Symbiosis

Which of the following state the goals and intentions that help define a firm's competitive advantage? (Check all that apply.)

The firm's mission The firm's vision The firm's strategic objectives

Which of the following statements about the strategic management process is true?

The three processes are highly interdependent.

Which of the following are reasons vision statements sometimes fail? (Check all that apply.)

There is too much focus on finding a singular solution. The actions do not match the words. The vision lack real-world relevance.

Which of the following are true of behavioral controls? (Check all that apply.)

They involve balancing culture and boundaries or constraints. They involve balancing rewards and incentives.

Which of the following statements about operational effectiveness are correct? (Check all that apply.)

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

True or false: Intended strategy rarely survives in its original form.

True

Vision statements represent Blank______.

a destination that is driven by and evokes passion

Which of the following are social responsibility expectations that go beyond a firm's product and service quality?

accurate financial and accounting reporting fair labor standards environmental sustainability

Managers execute or implement their decisions as Blank______ in the third step of the strategic management process.

actions

Analyzing a firm's strengths and relationships within its value chain can uncover potential sources of its competitive ___.

advantage

What term is used to describe the challenge managers face to maximize existing products and markets while seeking new opportunities?

ambidexterity

Sound strategies are of no value if they

are not properly implemented

Firms must exercise which of the following two types of strategic controls? (Check all that apply.)

behavioral informational

What are the four levels of a company's strategy formulation?

business, corporate, international, and entrepreneurial

Which elements of a business must be involved in the creation of an ethical organization? (Check all that apply.)

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

Business-level strategy is concerned with how companies Blank______. (Check all that apply.)

compete and outperform rivals achieve and sustain a competitive advantage

Managers must determine how to create a(n) Blank______ advantage in the marketplace to be successful over the long-term

competitive

A firm's vision, mission, and strategic objectives are used to develop specific goals, which form the basis for its Blank______.

competitive advantage

In terms of analyzing the external environment of the firm, the industry environment consists of Blank______ and other organizations that may threaten the company's success.

competitors

Strategies often fail when managers fail to do which of the following? (Check all that apply.)

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

Which is the best example of digital transformation?

creating an online venue for virtual conferences

During the Blank______ step in the strategic management process, managers answer two questions: what industries should we compete in and how should we compete in those industries?

decisions

Strategic management of an organization entails which of the following ongoing processes? (Check all that apply.)

decisions actions analyses

In strategic management, effectiveness can best be described as

doing the right thing

Efficiency, in terms of strategic management, can best be described as

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.

domestic; international

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?

economic downturns or upturns new technologies governmental legislation

Which of the following are needed in order for entrepreneurial initiatives to be successful? (Check all that apply.)

effective strategies viable opportunities

In strategy formulation, Blank______ activities are designed to create new value and is a major engine for economic growth.

entrepreneurial

The Blank______ view of leadership assumes that outside factors, over which the leader has limited influence, positively or negatively affect a firm's success.

external control

The ______ view of leadership assumes that outside factors, over which the leader has limited influence, positively or negatively affect a firm's success.

external control

Managers are analyzing the firm's Blank______ when managers are studying its competitors.

external environment

The triple bottom line measures the performance of which of the following? (Check all that apply.)

financial environmental social

Strategy Blank______ consists of decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain a competitive advantage

formulation

A firm's vision, mission, and strategic objectives form a hierarchy of

goals

A vision statement can lead to missed opportunities when it

has too much focus

Local line leaders Executive leaders Internal networkers

have significant profit-and-loss responsibility guide ideas, create a learning infrastructure, and call for have little formal authority, inspire others with conviction and clarity of ideas

Social responsibility is the expectation that businesses or individuals will strive to

improve the overall welfare of society

Ambidexterity requires that managers balance a focus on existing markets and products with

innovation

Managers must take a(n) Blank______ view of the organization and assess how functional areas and activities fit together so that the organization can achieve its goals and objectives.

integrative

A firm's Blank______ assets, such as patents, are becoming increasingly important to creating a firm's competitive advantage.

intellectual

Analyzing the firm's Blank______ environment, such as operations, may uncover potential sources of competitive advantage.

internal

Which of the following are evaluated during the analysis process of strategic management?

internal environment external environment strategic goals

When managers refer to their organizational boundaries they mean both Blank______ and Blank______ boundaries.

internal; external

Studies show that managers often focus on short-term goals to the detriment of creating Blank______ shareholder value.

long-term

A Blank______ includes both the company's purpose as well as the basis of competition and competitive advantage.

mission statement

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

organizational versus individual rationality

The essence of strategic management is the study of why some firms

outperform others

Which of the following are characteristics of a well-written organizational vision statement? (Check all that apply.)

overarching long-term inspiring

Strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments is called Blank______ strategy.

realized

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

romantic

The Blank______ view of leadership assumes that the organization's leader is the driving force in the success or failure of the business.

romantic

The three primary participants in corporate governance are the Blank______, management, and board of directors.

shareholders

Corporate governance is the relationship among Blank______ in determining the direction and performance of corporations.

shareholders, management, and the board of directors

In order for strategic objectives to be meaningful they need to be Blank______. (Check all that apply.)

specific timely measurable

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?

stakeholders

Which of the following are stakeholder groups that managers should consider when making decisions? (Check all that apply.)

stockholders board of directors the community

The Blank______ process consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.

strategic management

The two opposing ways of examining stakeholder management are called Blank______ and Blank______.

symbiosis; zero sum

Organizational goals and objectives should represent what is best for

the entire organization

Which of the following must a firm's strategy be consistent with? (Check all that apply.)

the firm's organizational structure the firm's design

Which of the following is an example of a firm's intellectual asset?

the knowledge worker

During the analysis step of the strategic management process, managers are concerned with the company's Blank______.

vision, mission, and strategic objectives

Corporate-level strategy focuses on

what business(es) should the company compete in

The Blank______ view of stakeholder management views the management process as groups competing for the organization's resources.

zero sum