Management 498 Chapter 1

Which of the following is a pitfall to avoid in strategic​ planning? A. Being too informal in planning B. Communicating too much information about the plan to employees C. Becoming so focused on current problems that planning is forgotten D. Moving too slowly from mission development to strategic formulation E. Involving too many key employees in all phases of planning

Becoming so focused on current problems that planning is forgotten

Business strategy is based on the assumption of competition. What is the assumption of military​ strategy? A. Communication B. Competition C. Collaboration D. Comparison E. Conflict

Conflict

Which of the following is not a financial benefit for organizations that use strategic​ management? A. Improved preparation for future fluctuations in external environments B. Improved productivity C. Improved sales D. Improved understanding of​ competitors' strengths E. Improved​ long-term financial performance

Improved understanding of competitors' strengths

Which of the following should a firm consider when engaging in strategic​ planning? A. Involving all managers in the process B. Delegating the process to a planner C. Using strategic planning to gain control over resources D. Moving quickly from the development of the mission to formulating strategy E. Being as formal as possible

Involving all managers in the process

Which of the following is a reason some firms do not engage in strategic​ planning? A. Effective planning is too expensive for the firm. B. There is no formal training in strategic management. C. There is no confidence in the​ strategic-planning process. D.The benefits of planning are overrated. E. There is little support from the organization.

There is no formal training in strategic management

In developing a strategic​ plan, which is an important first question to​ pose? A. Where are we​ now? B. What is our company​ strategy? C. Where do we want to​ go? D. How are we going to get where we want to​ go? E. What resources will we​ need?

Where are we now?

Apple's financially lean position with regard to manufacturing facilities provides the firm with​ _______ over Sony with a significant investment in manufacturing facilities. A. a competitive advantage B. a comparative advantage C. a sustained competitive advantage D. an opportunity E. a strategic advantage

a competitive advantage

That the​ strategic-management process is dynamic requires that the activities be​ performed: A. at least annually. B. every 5 years. C. when needed. D. semiannually. E. continually.

continually

A strategic plan is primarily designed​ to: A. provide the answer to all the​ organization's problems. B. provide input to the strategy implementation stage of strategic management. C. improve a​ firm's profit margins. D. gain and sustain competitive advantage. E. improve an​ organization's returns.

gain and sustain competitive advantage

The ability to prevent problems is often improved with strategic management as a result of​ improved: A. understanding of target markets. B. interaction among managers at all levels and across functions. C. ability to adapt to change. D. understanding of​ competitors' strengths and capabilities. E. ability to take correction action.

interaction among managers at all levels and across functions.

Integrating and analyzing knowledge of the business to formulate effective strategies is the essence​ of: A. change management. B. strategic planning. C. intuition. D.strategic evaluation. E. rational decision making.

intuition

Some firms view planning as a waste of time​ because: A. no product or service is produced. B. the process is too long. C. the process is​ never-ending. D. there is no guarantee of success. E. the return on investment is too low.

no product or service is produced

The changing demographics of an​ organization's target market are an example​ of: A. external opportunities and external threats. B. strengths and weaknesses. C. opportunities and threats. D. an answer to the​ firm's mission statement of who we are. E. economic trends.

opportunities and threats

In which stage of the strategic management process is an organization likely to develop a mission​ statement? A. Strategic opportunity identification B. Strategic planning C. Strategy evaluation D. Strategy formulation E. Strategy implementation

strategic formulation

The strategic management process begins​ with: A. strategy evaluation. B. strategy formulation. C. strategic opportunity identification. D. strategic planning. E. strategy implementation.

strategic formulation

The focus of strategic management is​ on: A. the generation of the​ firm's long-term game plan. B. the profits of the firm. C. strategic planning. D.identification of new target markets. E. the integration of all the functional areas of the business to achieve organizational success.

the integration of all the functional areas of the business to achieve organizational success.

Where did the history of strategic planning start? A. Business B. The military C. Greek mythology D. Non-profits E. Game play

the military

In which situation is intuition most likely to be useful for making strategic​ decisions? A. When the situation is understood with complete certainty B. When there is an abundance of data available C. When a flash of brilliance reveals the most effective course of action D. When there is little precedent E. When the situation calls for rational problem solving

when there is little precedent