Test 1

The United States' population is

) getting older and less white.

It is predicted that the United States will have no racial or ethnic majorities by the year

2075.

The world population is expected to grow to an estimated ________ billion in 2054.

9

What types of skills are especially critical for successful strategy implementation?

Interpersonal

Which individuals are most responsible for the success and failure of an organization?

Strategists

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

An important activity in ________ is taking corrective action.

strategy evaluation

Collecting and evaluating information on competitors is essential for successful

strategy formulation.

Internal ________ are controllable activities in an organization that are performed especially well

strengths

Which of the following is part of the Strategic-Management Model?

A) Measure and evaluate performance B) Develop mission and vision statements C) Establish long-term objectives D) Implement strategies E) All of the above Answer: E

How do line managers become "owners" of the strategy?

By involvement in the strategic-management process

Which of the following is often considered to be the first step in strategic planning?

Developing a vision statement

During what stage of strategic management are a firm's specific internal strengths and weaknesses determined?

Formulation

In which phase of strategic management are long-term objectives especially important?

Formulation

Which of the following is NOT a pitfall an organization should avoid in strategic planning?

Involving all managers rather than delegating planning to a "planner"

Which statement best describes intuition?

It should be coupled with analysis in decision-making.

Who are the world's longest-living people?

Japanese

What are enduring statements of purpose that distinguish one business from other similar firms?

Mission statements

Hawaii, California, and ________ already have no majority race or ethnic group.

New Mexico

Which state has the highest union membership rate?

New York

What are guides to decision making that address repetitive or recurring situations called?

Policies

In recent times, ________ perhaps has instituted the most protectionist measures by raising tariffs on most imports and subsidizing its own exports.

Russia

What are the means by which long-term objectives will be achieved?

Strategies

What step in the strategic management process involves mobilizing employees and managers to put strategies into action?

Strategy implementation

With which phase of strategic management is most strongly associated with "action"?

Strategy implementation

________ is NOT a strategy-implementation activity.

Taking corrective actions

The goal of strategic management is to

achieve and maintain competitive advantage.

External audits attempt to identify key variables that offer ________ responses.

actionable

Both business and military organizations must ________ and ________ to be successful.

adapt to change; constantly improve

Strategic management focuses on integrating management, ________, and information systems to achieve organizational success

all of the above

An organization's vision statement

answers the question: "What do we want to become?"

The process of performing an external audit needs to include

as many managers and employees as possible.

The process of performing an external audit should involve

as many managers and employees as possible.

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.

In recent years, the speedy flow of information through technology has

created a borderless world with global competitors, customers, and citizens

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

In mass retailing, big-box companies like Walmart, Best Buy, and Sears are

finding that less brick and mortar is better

To perform an external audit, a company first must

gather competitive intelligence and information about external trends.

Many economists say the current rash of trade constraints will make it ________ for global economic growth.

harder

The fact that Apple has no manufacturing facilities of its own

has enabled it to remain financially lean

According to Greenley, strategic management offers all of the following benefits EXCEPT

increased resistance to change.

Competition in virtually all industries is

intense

Strategy evaluation is necessary because

internal and external factors are constantly changing.

The strategic-management process

is a continuous process.

The Industrial Organization (I/O) approach to competitive advantage advocates that external factors are ________ internal factors in a firm achieving competitive advantage.

more important than

Organizations using strategic management are generally ________ than those that do not.

more profitable

Annually, ________ businesses in the United States fail.

more than 100,000

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

There is a dramatic shift in mass retailing to

operating stores with less square footage.

All of the following are political, governmental, and legal variables that can represent key opportunities or threats to organizations EXCEPT

population changes by race, age, sex, and level of affluence

An organization should take a(n) ________ approach in its industry.

proactive rather than a reactive

Sometimes ________ is used to refer to strategic formulation, implementation and evaluation, with ________ referring only to strategic formulation.

strategic management; strategic planning

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

) The historical trend of people moving from ________ has dramatically slowed.

the Northeast to the Sunbelt

Business or military success is

the product of both attention to changing external and internal conditions and the insightful adaptations to those conditions.

Generally, 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

Changes in which of the following can significantly affect firms?

A) Patent laws B) Antitrust legislation C) Tax rates D) Lobbying activities E) All of the above Answer: E

The strategic-management process is becoming more widely used by

A) small firms. B) nonprofit institutions. C) governmental organizations. D) multinational conglomerates. E) all of the above Answer: E

Which of the following is NOT a characteristic that describes the most competitive companies in America?

Divestiture is essential to growth

In which phase of strategic management are annual objectives are especially important?

Implementation

According to I/O theorists, which of the following contributes LEAST to firm's performance?

Internal resources

When an industry relies heavily on government contracts, which forecasts can be the most important part of an external audit?

Political

What can be defined as the art and science of formulating, implementing and evaluating crossfunctional decisions that enable an organization to achieve its objectives?

Strategic management

In recent times, which of the following has largely refrained from protectionist measures?

The United States

In general, what happens to American goods in overseas markets when there is a strong dollar?

They are more expensive.

A weak dollar means

higher exports and lower imports.