Ch 1 The Concept of Strategy

Strategic fit refers to: a. The consistency of a firms strategy with its external and internal environments b. The need for a firms strategy to fit the needs of all its stakeholders, not just shareholders c. the need for a firms strategy to be unique d. The need for a firms strategy to be consistent with its vision, mission, and culture.

A

The main difference between corporate level strategy and business level strategy is: a. Corporate strategy defines the scope of a firm's activities, while business strategy focuses on how to beat the competition in specific product markets b. Corporate strategy comprises the overall strategic plan, while business strategy focuses on implementing that strategy in each product market c. Corporate level strategy is concerned with long term goals, while business level strategy focuses on short term competitiveness d. Corporate strategy defines a firm's overall structure, while business strategy describes its actions

A

The relationship between design and emergence in strategy making is best described as: a. A process in which intended strategy is adapted as it is implemented b. An interactive process between strategic planners and line managers c. An example of the agency problem in which the interests of salaried managers displace the interests of owners d. A tension between the forces of centralization and decentralization

A

The successful careers of both queen Elizabeth II and Lady Gaga may be attributed to the fact that both: a. have a consistency of direction based on clear goals b. have a knack for being in the right place at the right time c. have used dressing up as a means for attracting attention and establishing identity. d. have built a loyal fan base based on astute use of the media

A

A conceptualization, the firm as an activity system is a means of depicting: a. the extent to which a firms resources and capabilities are aligned with its strategic goals b. Consistency among a firms activities c. the extent to which a firms strategic goals are aligned with its industry environment d. the extent to which a management is motivated to implement a firms strategy

B

In strategic management, the expression "blue oceans" refers to: a. The ability to cut costs through moving production to offshore locations b. The potential offered by uncontested market space c. Radical innovation d. A key theme in the US Navy's strategic planning process

B

Strategy improves decision-making by: a. Reducing the number of choices being considered b. All of these c. Facilitating the use of analytic tools d. Integrating and pooling the knowledge of different members of the organization

B

The division of responsibility between corporate and business strategy is consistent with the following principle: a. The hierarchical nature of authority within organizations b. Corporate level strategy is the domain of headquarters executives; divisional managers are responsible for business strategies c. Delegation is the key to reconciling responsiveness and adaptability with overall integration d. Corporate level strategy is the domain of the parent company; functional managers are responsible for business strategies

B

The main problem of SWOT as a framework for strategy analysis is that: a. it is focused on strategy formulation and fails to take account of strategy implementation. b. Distinguishing opportunities from threats and strengths from weaknesses is often difficult. c. it has now been superseded by more sophisticated analytical frameworks. d. it is so widely used that it no longer has any novelty

B

The primary distinction between corporate strategy and business strategy is: a. Corporate strategy is concerned with establishing competitive advantage; business strategy with strategy implementation in individual businesses b. Corporate strategy is concerned with where the firm competes; business strategy with how it competes c. Corporate strategy is the responsibility of the CEO; business strategy is formulated by the heads of business units d. Corporate strategy is concerned with the long-term performance of the firm; business strategy with resource deployment.

B

When the environment becomes more turbulent and unpredictable: a. Strategy becomes an impossible exercise b. Strategy becomes an increasingly important as a source of direction c. Strategy becomes less important than intuition d. External consultants need to play a greater role in strategy making

B

For both individuals and businesses, successful strategies are characterized by: a. possessing superior abilities and resources that are then deployed to build competitive advantage. b. unrelenting commitment to ambitious goals. c. clear goals, understanding their competitive environment, awareness of internal strengths and weaknesses, and effective implementation. d. meticulous planning

C

In the military field, we generally make the following distinction between strategy and tactics: a. tactics form the overall plan whereas strategy is concerned with the maneuvers to win battles b. tactics comprise the overall plan whereas strategy focuses on specific actions. c. Tactics relate to specific actions whereas strategy relates to the overall plan d. tactics encompass specific political actions within the firm whereas strategy is the overall plan for deploying resources to establish a favorable position

C

The main reason for the transition from corporate planning to strategic management during the latter half of the 1970s was: a. Growing disillusionment with central planning b. Disappointing outcomes of corporate diversification. c. A more turbulent business environment that became increasingly difficult to predict d. The increasing costs of corporate planning departments.

C

Military strategy and business strategy differ in that: a. None - there is no conceptual difference b. There is no concept like tactics in business c. Military strategy can only be learned through field experience; business strategy can be developed through analytical frameworks d. The objective of military strategy is to defeat the enemy; business strategy seeks coexistence rather than annihilation

D

Strategic goals should be: a. consistent b. simple c. long term d. all of the above

D

The extent to which an organization's strategy is determined by decentralized emergence rather than by centralized design depends mainly upon: a. The commitment of the organization to experimentation. b. How the organization is structured c. Whether the organization has a formalized process of strategic planning d. How turbulent and unpredictable is the external environment of the organization

D

The primary purpose of strategy is: a. to be a responsible corporate citizen b. to create value for all stakeholders c. to maximize shareholder value d. to achieve success

D

The principal similarity between business and military strategy is that: a. they share the same objective: to annihilate rivals b. they are both concerned with tactical maneuvers that can establish positions of advantage c. the nature of leadership is much the same whether in a military or business context d. They share common concepts and principles

D

The two questions of "where" and "how" to compete define: a. a firm's strategic management process b. a firm's values and culture c. a firm's vision and mission d. a firm's corporate and business strategies

D