strategic management chapter 9

balanced scorecard

It is a process that allows firms to evaluate strategies from four perspectives: financial performance, customer knowledge, internal business processes, and learning and growth.

measuring organizational performance

This activity includes comparing expected results to actual results, investigating deviations from plans, evaluating individual, etc.

Contingency plans

it can be defined as alternative plans that can be put into effect if certain key events do not occur as expected.

auditing

it is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between these assertions and established criteria, and communicating the results to interested users.

Consonance

this refers to the need for strategists to examine sets of trends, as well as individual trends, in evaluating strategies.

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true or false Adequate and timely feedback is the cornerstone of effective strategy evaluation.

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true or false Business and war are analogous.

true

true or false Competitive advantages normally are the result of superiority in one of three areas: (1) resources, (2) skills, or (3) position.

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true or false Controls need to be action-oriented rather than information-oriented.

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true or false Familiarity with local environments usually makes gathering and evaluating information much easier for small organizations than for large businesses.

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true or false Large organizations require a more elaborate and detailed strategy-evaluation system because it is more difficult to coordinate efforts among different divisions and functional areas.

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true or false Mintzberg refers to strategic planning as an "emergent" process whereas strategy scientists use the term "deliberate" process.

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true or false Position can also play a crucial role in an organization's strategy. Once gained, a good position is defensible.

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true or false Positional advantage tends to be self-sustaining as long as the key internal and environmental factors that underlie it remain stable.

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true or false Proponents of the top-down approach contend that top executives are the only persons in the firm with the collective experience, acumen, and fiduciary responsibility to make key strategy decisions.

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true or false Recent strategy research and this textbook emphasize the bottom-up approach and current research supports the bottom-up approach.

false, cannot and should not

true or false Strategists can but should not try to cover all bases by planning for all possible contingencies

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true or false Strategy evaluation includes three basic activities: 1) examining the underlying bases of a firm's strategy 2) comparing expected results with actual results 3) taking corrective actions to ensure that performance conforms to plans

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true or false Strategy evaluation is based on both quantitative and qualitative criteria.

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true or false Strategy evaluation must meet several basic requirements to be effective. First, strategy evaluation activities must be economical.

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true or false The financial resources of a business are the easiest to quantify and are normally the first limitation against which strategy is evaluated.

false, not all

true or false all managers need to receive all reports

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true or false because both minimizing threats and capitalizing on opportunities can improve a firm's competitive position.

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true or false corrective actions are almost always needed except when (1) external and internal factors have not significantly changed and (2) the firm is progressing satisfactorily toward achieving stated objectives.

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true or false independent auditors use a set of standards called generally accepted auditing standards (GAAS).

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true or false most quantitative criteria are geared to annual objectives rather than long-term objectives.

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true or false strategy evaluation must have both a long-run and short-run focus.

feasibility

what criteria is this 'A strategy must neither overtax available resources nor create unsolvable subproblems'?

consistency

what criteria is this 'A strategy should not present inconsistent goals and policies'?

richard rumelt

who offered four criteria that could be used to evaluate a strategy: consistency, consonance, feasibility, and advantage?