Ch. 1 Multiple Choice

The three original broadcast networks captured about ________ of the prime-time audience in 1978, but today their combined market share is less than ________.

90%/50%

How do line managers become "owners" of the strategy?

By involvement in the strategic-management process

________ allows firms to sell products, advertise, purchase supplies, bypass intermediaries, track inventory, and eliminate paperwork.

E-commerce

________ and ________ are external forces transforming business and society today.

E-commerce; globalization

Which of the following statements is false?

Effective strategic planning should accept the assumptions underlying the current corporate strategy.

During what stage of strategic management are a firm's specific internal strengths and weaknesses determined?

Formulation

In which phase of strategic management are annual objectives especially important?

Implementation

What step in the strategic development process involves mobilizing employees and managers to put strategies into action?

Implementing strategy

The changes that occurred when Robert Iger took over the reigns at Disney demonstrate which current trend in organizations?

Increased decentralizing of strategic management

What types of skills are especially critical for successful strategy implementation?

Interpersonal

What is not a pitfall an organization should avoid in strategic planning?

Involving all managers rather than delegating planning to a "planner"

What is not a guideline given for effective strategic planning?

It should be controlled by "technicians."

Which statement best describes intuition?

It should be coupled with analysis in decision-making.

What are enduring statements of purpose that distinguish one business from other similar firms?

Mission statement

The trends in newspaper circulation in the United States provide support for which statement?

Most competitive advantages are hard to sustain.

Which of the following is not included in the strategic management model?

Perform internal research to identify customers

What are guides to decision making?

Policies

What can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives?

Strategic Management

Which of the following statements is false?

Strategic management must become a self-perpetuating socialist mechanism.

________ is used to refer to strategic formulation, implementation and evaluation, with ________ referring only to strategic formulation.

Strategic management; strategic planning

Which individuals are most responsible for the success and failure of an organization?

Strategists

An important activity in ________ is taking corrective action.

Strategy evaluation

Which phase of strategic management is called the action phase?

Strategy implementation

________ is not a strategy-implementation activity.

Taking corrective actions

What is not a reason given for poor or no strategic planning in organizations?

Trust of management

The goal of strategic management is to

achieve and maintain competitive advantage.

Both business and military organizations must ________ and ________ to be successful.

adapt to change; continually improve

Strategic management focuses on integrating management, ________, and information systems to achieve organizational success.

all of the above

The strategic-management process is becoming more widely used by

all of the above

________ can best be described as short-term in nature.

annual objectives

An organization's vision statement

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

Strategic management enables an organization to ________, instead of just responding to threats in its business environment.

be proactive

The Internet has transferred power from ________ to ________.

businesses, individuals

Superior strategy formulation and implementation ________ an opponent's superiority in numbers and resources.

can overcome

Anything that a firm does especially well compared to rival firms is referred to as

competitive advantage

Military strategy is based on an assumption of ________, whereas business strategy is based on an assumption of ________.

conflict; competition

Long-term objectives should be all of the following except

continually changing

The first step in strategic planning is generally

developing a vision statement

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

empowerment

The fact that Apple has no manufacturing facilities of its own

has enabled it to remain financially lean with virtually no long-term debt.

Strategy evaluation is necessary because

internal and external factors are constantly changing.

The strategic-management process

is a continuous process

According to Greenley, strategic management offers all of these benefits except:

it maximizes the effects of adverse conditions and changes.

All of the following are guidelines for effective strategic planning except:

it should be a paper process more than a people process.

The strategic-management process represents a(n) ________, ________, and ________ approach for determining an enterprise's future direction.

logical; systematic; objective

A strong ________ heritage underlies the study of strategic management.

military

According to research, organizations using strategic management are ________ than those that do not.

more profitable

Specific results an organization seeks to achieve in pursuing its basic mission are

objectives

Terms such as objectives, mission, strengths, and weaknesses were first formulated to address problems

on the battlefield.

Organizations should take a(n) ________ approach in their industry.

proactive rather than a reactive

What are the means by which long-term objectives will be achieved?

strategies

According to Webster's New World Dictionary, ________ is "the science of planning and directing large-scale military operations, of maneuvering forces into the most advantageous position prior to actual engagement with the enemy."

strategy

Internal ________ are activities in an organization that are performed especially well.

strengths

The one factor that has most significantly impacted the nature and core of buying and selling in nearly all industries has been

the Internet

Business or military success is

the product of both attention to changing external and internal conditions and the insightful adaptations to those conditions.

Usually, external opportunities and threats are

uncontrollable by a single organization.

All of these are pitfalls an organization should avoid in strategic planning except:

using plans as a standard for measuring performance.