ADM Quiz 1

Low-performing firms typically underestimate their competitor's strengths and overestimate their own firm's strengths. a. True b. False

a. True

Strategic management is an attempt to organize qualitative and quantitative information in a way that allows effective decisions to be made under conditions of uncertainty. a. True b. False

a. True

All strategists have similar attitudes, values, ethics and concerns for social responsibility. a. True b. False

b. False

Annual objectives are long-term milestones that organizations must achieve to reach short-term objectives. a. True b. False

b. False

Management by intuition can be defined as operating from the "I've-already-made-up-my-mind-don't-bother-me-with-the-facts mode." a. True b. False

b. False

Managers must be very formal in strategic planning because formality fosters flexibility and creativity. a. True b. False

b. False

Once an effective strategy is designed, modifications are rarely required. a. True b. False

b. False

Superior strategy formulation is well and good, but it cannot overcome an opponent's superiority in numbers and resources. a. True b. False

b. False

The middle manager is the most visible and critical strategic manager. a. True b. False

b. False

The one factor that has most significantly impacted the nature and core of buying and selling in nearly all industries has been a. customer and employee focus. b. the government. c. the Internet. d. political borders. e. corporate greed.

c. the Internet.

All of these are pitfalls an organization should avoid in strategic planning EXCEPT a. too hastily moving from mission development to strategy formulation. b. being so formal in planning that flexibility and creativity are stifled. c. using plans as a standard for measuring performance. d. failing to involve key employees in all phases of planning. e. using strategic planning to gain control over decisions and resources.

c. using plans as a standard for measuring performance.

How do line managers become "owners" of the strategy? a. By executing plans formulated by other people b. By becoming a shareholder of the firm c. By attending top manager meetings d. By involvement in the strategic-management process e. By buying off top managers

d. By involvement in the strategic-management process

In which phase of strategic management are long-term objectives especially important? a. Implementation b. Management c. Control d. Formulation e. Evaluation

d. Formulation

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 a. authoritarianism. b. proaction. c. delegation. d. empowerment. e. transformation.

d. empowerment.

According to Greenley, strategic management offers all of the following benefits EXCEPT a. increased synergy. b. more effective allocation of time and resources. c. enhanced communication. d. increased discipline. e. increased resistance to change.

e. increased resistance to change.