Strategic Management Test 1

Which of the following is NOT one of the nine recommended components of a mission statement? A) Strategies B) Self-concept C) Employees D) Markets E) Customers

A) Strategies

Which individuals are most responsible for the success and failure of an organization? A) strategists B) financial planners C) personnel directors D) stakeholders E) human resource managers

A) Strategists

An overly general mission statement that ________ could be dysfunctional. A) does not exclude any strategy alternatives B) encourages management creativity C) excludes all diversification D) endorses the consideration of feasible potential strategies E) allows for the generation and consideration of a range of alternative objectives

A) does not exclude any strategy alternatives

During what stage of strategic management are a firm's specific internal strengths and weaknesses determined? A) formulation B) implementation C) evaluation D) feedback E) goal-setting

A) formulation

In which phase of strategic management are long-term objectives especially important? A) Formulation B) Control C) Evaluation D) Implementation E) Management

A) formulation

All stakeholders A) have claims and concerns about an organization, but these claims and concerns vary B) have the same claims and concerns about the organization C) have ownership rights in an organization D) have the same voting rights in an organization E) have environmental concerns as their top priority

A) have claims and concerns about an organization, but these claims and concerns vary.

An effective mission statement should do all of the following EXCEPT A) include monetary amounts, numbers, percentages and ratios B) be inspiring C) reveal that the firm is environmentally responsible D) identify the utility of a firm's products E) be reconcilatory

A) include monetary amount, numbers, percentages and ratios

Strategy evaluation is necessary because A) internal and external factors are constantly changing B) the SEC requires strategy evaluation C) success today is a guarantee of success tomorrow D) the IRS requires strategy evaluation E) firms have limited resources

A) internal and external factors are constantly changing

What types of skills are especially critical for successful strategy implementation? A) Interpersonal B) Marketing C) Technical D) Conceptual E) Visionary

A) interpersonal

The following excerpt from a mission statement illustrates which of the nine essential components of a mission statement "We believe our first responsibility is to the doctors, nurses, patients, mothers, and all others who use our products and services." A) Markets B) Customers C) Concern for Employees D) Concern for Public Image E) Technology

B) Customers

Which of these examples of a mission statement focus area does NOT identify the utility of the firm's products to its customers? A) AT&T focuses on communication rather than telephones B) ExxonMobil focuses on oil and gas rather than energy C) Union Pacific focuses on transportation rather than railroads D) Universal Studios focuses on entertainment rather than movies E) A clothing retailer focuses on attractive looks rather than on clothes

B) ExxonMobil focuses on oil and gas rather than energy

Which component of a mission statement addresses the basic beliefs, values, aspirations, and ethical priorities of the firm? A) Technology B) Philosophy C) Concern for public image D) Customers E) Self-concept

B) Philosophy

Long-term objectives should be all of the following EXCEPT: A) measurable B) continually changing C) reasonable D) challenging E) consistent

B) continually changing

All of the following unity statements are relevant in developing a mission statement EXCEPT A) Do not offer me shoes. Offer me comfort for my feet and the pleasure of walking. B) Do not offer me furniture. Offer me comfort and the quietness of a cozy place. C) Do not offer me ideas, emotions, ambience, feelings, and benefits. Offer me things. D) Do not offer me books. Offer me hours of pleasure and the benefit of knowledge. E) Do not offer me a house. Offer me security, comfort, and a place that is clean and happy.

C) Do not offer me ideas, emotions, ambience, feelings, and benefits. Offer me things.

What step in the strategic management process involves mobilizing employees and managers to put strategies into action? A) Strategy formulation B) Strategy evaluation C) Strategy implementation D) Strategic advantage E) Competitive advantage

C) Strategy implementation

What question is asked in conjunction with the philosophy component of a mission statement? A) What are the firm's major products or services? B) Is the firm committed to growth and financial soundness? C) What are the basic beliefs, values, aspirations, and ethical priorities of the firm? D) Is the firm responsive to social, community, and environmental concerns? E) Are employees a valuable asset of the firm?

C) What are the basic beliefs, values, aspirations, and ethical priorities of the firm?

The goal of strategic management is to A) achieve competitive advantage B) maintain competitive advantage C) achieve and maintain competitive advantage D) eliminate competitive advantage E) eliminate and abolish competitive advantage

C) achieve and maintain competitive advantage

In which phase of strategic management are annual objectives especially important? A) Reduction B) Formulation C) Implementation D) Evaluation E) Policy

C) implementation

Which statement best describes intuition? A) It alone should be used in decision-making B) It represents a minor factor in decision-making integrated with analysis C) It should be coupled with analysis in decision-making D) It is better than analysis in decision-making E) It is management by ignorance

C) it should be coupled with analysis in decision-making

Sometimes ___________ is used to refer to strategic formulation, implementation and evaluation, with _____________ referring only to strategic formulation. A) strategic planning; strategic management B) strategic planning; strategic processing C) strategic management; strategic planning D) strategic management; strategic processing E) strategic implementation; strategic focus

C) strategic management; strategic planning

Internal ________ are controllable activities in an organization that are performed especially well. A) opportunities B) incompetencies C) strengths D) objectives E) factors

C) strengths

What can be defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objections? A) Strategy formulation B) Strategy evaluation C) Strategy implementation D) Strategic management E) Strategic leading

D) Strategic management

The potential for creative growth in an organization can be limited by A) an overemphasis on stakeholders B) not enough emphasis on stakeholders C) a mission statement that is too general D) a mission statement that is too specific E) a mission statement that is too dynamic

D) a mission statement that is too specific

An organization's vision statement A) is a constant reminder to its employees of why the organization exists B) broadly charts the future direction of an organization C) addresses the basic question: "What is our business?" D) answers the questions: "What do we want to become?" E) none of the above

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

An effective mission statement does all of the following EXCEPT A) it reflects judgements about future growth directions that are based upon forward-looking external and internal analysis B) it provides useful criteria for selecting among alternative strategies C) it provides a basis for generating and screening strategic options D) it is static in orientation E) it should be enduring

D) it is static in orientation

An organization should take a(n) ____________ approach in its industry A) adversarial rather than a collegial B) collegial rather than an adversarial C) reactive rather than a proactive D) proactive rather than a reactive E) cooperative rather than a competitive

D) proactive rather than a reactive

In order to appeal to diverse stakeholders, an effective mission statement should be A) inflammatory. B) provocative. C) contentious. D) reconciliatory. E) dysfunctional.

D) reconciliatory

Effective mission statements can vary in A) length. B) content. C) format. D) specificity. E) All of the above

E) All of the above

Which question(s) is answered in an effective mission statement? A) is the firm committed to growth and financial soundness? B) Are employees a valuable asset of the firm? C) Geographically, where does the firm compete? D) Who are the firm's customers? E) All of the above questions are answered in an effective mission statement

E) All of the above questions are answered in an effective mission statement

Which component of a mission statement addresses the firm's distinctive competence or major competitive advantage? A) Technology B) Philosophy C) Concern for public image D) Customers E) Self-concept

E) Self-concept

Which question is NOT answered in an effective mission statement? A) Is the firm committed to growth and financial soundness? B) Are employees a valuable asset to the firm? C) Geographically, where does the firm compete? D) Who are the firm's customers? E) What are the updated balances of leading accounts on the firm's balance sheet?

E) What are the updated balances of leading accounts on the firm's balance sheet?

Strategic management focuses on integrating management, _________________, and information systems to achieve organizational success. A) marketing B) finance and accounting C) production and operations D) research and development E) All of the above

E) all of the above

What are the means by which long-terms objectives will be achieved? A) Strategies B) strengths C) weaknesses D) policies E) opportunities

a) strategies

According to McGinnis, a mission statement should be all of the following EXCEPT A) it should be broad enough to include all ventures. B) it should be stated in clear terms. C) it should distinguish an organization from all others. D) it should define what an organization is. E) it should serve as a framework for evaluating both current and prospective activities.

A) it should be broad enough to include all ventures

An important activity in ______ is taking corrective action. A) strategy evaluation B) strategy implementation C) strategy formulation D) strategy leadership E) all of the above

A) strategy evaluation

__________ is NOT a strategy-implementation activity. A) Taking corrective actions B) Establishing annual objectives C) Devising policies D) Allocating resources E) Motivating employees

A) taking corrective actions

Generally, external opportunities and threats are A) uncontrollable by a single organization. B) unable to have a significant impact on an organization. C) not worth monitoring and evaluating. D) key functions in strategy implementation. E) key functions in strategy exploitation.

A) uncontrollable by a single organization

Good mission statements identify the ___________ of a firm's products to its customers. A) utility B) price C) profit margin D) demand E) popularity

A) utility

Which of the following illustrates the self-concept component of a mission statement? A) To earn our customer's loyalty, we listen to them, anticipate their needs, and act to create value in their eyes. B) We are committed to leapfrogging ongoing competition within 1,000 days by unleashing the constructive and creative abilities and energies of each of our employees. C) Our emphasis is on North American markets, although global opportunities will be explored. D) To compensate its employees with remuneration and fringe benefits competitive with other employment opportunities in its geographical area and commensurate with their contributions toward efficient corporate operations. E) In this respect, the company will conduct its operations prudently and will provide the profits and growth which will assure our ultimate success

B) We are committed to leapfrogging ongoing competition within 1,000 days by unleashing the constructive and creative abilities and energies of each of our employees

What are enduring statements of purpose that distinguish one business from other similar firms? A) Policies B) Mission statements C) Objectives D) Rules E) Employee conduct guidelines

B) mission statements

With which phase of strategic management is most strongly associated with "action"? A) strategy formulation B) strategy implementation C) strategy evaluation D) competing advantages E) measuring performance

B) strategy implementation

In developing a mission statement, arousing emotion A) is not a benefit B) is futile C) is important D) should be avoided if possible E) is counterproductive

C) is important

The recommended length of an effective mission statement is ________ words. A) approximately 25 B) no more than 100 C) less than 250 D) at least 300 E) more than 500

C) less than 250

The strategic-management process represents a(n) __________, _________, and ___________ approach for determining an enterprise's future direction A) logical; systematic; subjective B) intuitive; disorganized; subjective C) logical; systematic; objective D) intuitive; disorganized; objective E) inconsistent; systematic; subjective

C) logical; systematic; objective

Specific results an organization seeks to achieve in pursuing its basic mission are A) strategies. B) rules. C) objectives. D) policies. E) tenets.

C) objectives

What are guides to decision making that address repetitive or recurring situations called? A) Strategies B) Rules C) Policies D) Objectives E) Goals

C) policies

The strategic-management process is becoming more widely used by A) small firms B) nonprofit institutions C) government organizations D) multinational conglomerates E) all of the above

E) all of the above

In recent years, the speedy flow of information through technology has A) made it harder for people worldwide to see how others work and live. B) strengthened national boundaries and made countries more self-contained. C) created a borderless world with global competitors, customers, and citizens. D) ensured that the U.S. is unrivaled by other companies in all industries. E) made the real flow of financial activity align with political boundaries between countries.

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

The strategic-management process A) occurs once a year B) is a semiannual process C) is a continuous process D) applies mostly to companies with sales greater than $100 million E) applies mostly to small businesses

C) is a continuous process

The general public is especially interested in __________, whereas stockholders are more interested in ________. A) environmental concerns; social responsibility B) social responsibility; the treatment of employees C) the treatment of employees; environmental concerns D) profitability; social responsibility E) social responsibility; profitability

E) social responsibility; profitability