Chapter 1

Strategic management is directed toward a company's ______.

goals and objectives

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

improve the overall welfare of society

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

informational behavioral

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

inspiring long-term overarching

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

internal

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

long-term

A(n) ______ includes both the company's purpose as well as the basis of competition and competitive advantage.

mission statement

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

shareholders

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

shareholders, management, and the board of directors

Financial markets often place an emphasis on managers meeting ______ performance goals.

short-term

Select all that apply In order for strategic objectives to be meaningful they need to be ______. (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

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

Romantic

Select all that apply 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.

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

True

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

business, corporate, international, and entrepreneurial

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

actions decisions analyses

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

advantage

Sound strategies are of no value if they ______.

are not properly implemented

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

formulation

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

symbiosis; zero sum

A firm's vision, mission, and strategic objectives form a hierarchy of (1).

1. goals

Fill in the blanks to complete the sentence. Strategic management is directed toward the organization's overall organizational (1) and (2).

1. goals 2. objectives

Strategic management is directed toward the organization's overall organizational (1) and (2).

1. goals 2. objectives

(1) 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.

1. mission

According to the (1) view of leadership, the leader is assumed to be the most important element in a company's success or failure.

1. romantic

Match the strategic management process with its corresponding term.

Analyses: strategy analysis Decisions: strategy formulation Actions: strategy implementation

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

______ requires that organizations continually monitor and scan the environment and respond to threats and opportunities.

Informational control

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

Intended

Which of the following are true of strategy implementation? (Check all that apply.)

It involves coordinating and integrating activities within the firm and with suppliers and customers. It ensures that the organization is committed to excellence. It involves establishing appropriate controls and organizational designs.

Which of the following statements regarding strategic management is true?

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

Match the type of leader (on the left) with the corresponding description (on the right).

Local line leaders: have significant profit-and-loss responsibility Executive leaders: guide ideas, create a learning infrastructure, and call for action Internal networkers: have little formal authority, inspire others with conviction and clarity of ideas

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

The three processes are highly interdependent.

Vision statements represent ______.

a destination that is driven by and evokes passion

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

achieve and sustain a competitive advantage compete and outperform rivals

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

actions

The third step of the strategic management process is the ______ step.

actions

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.

competitors

Select all that apply 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

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?

decisions

The second step in the strategic management process is ______. Multiple choice question.

decisions

Select all that apply Which of the following are examples of business-level strategies? (Check all that apply.)

differentiation focus on niche market cost leadership

Select all that apply 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

Managers must consider their company's ______ and ______ operations during the decisions step of the strategic management process.

domestic; international

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

external environment

Select all that apply Which of the following are evaluated during the analysis process of strategic management? (Check all that apply.)

external environment strategic goals internal environment

Select all that apply Which of the following are social responsibility expectations that go beyond a firm's product and service quality? (Check all that apply.)

fair labor standards accurate financial and accounting reporting environmental sustainability

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

strategic management

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

the community stockholders board of directors

Organizational goals and objectives should represent what is best for ______.

the entire organization

Select all that apply Strategy implementation involves ______. (Check all that apply.)

the organization having a commitment to excellence establishing appropriate controls and organizational designs coordinating and integrating activities within the firm and with suppliers and customers

Select all that apply A firm's hierarchy of goals include its ______. (Check all that apply.)

vision mission strategic objectives

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

vision, mission, and strategic objectives

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

vision, mission, and strategic objectives

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

zero sum