Chapter 9 Quiz

Which statement below is​ FALSE? A. ​Mintzberg's notion of​ "crafting" strategies embodies the artistic​ model, which suggests that strategic decision making be based primarily on holistic​ thinking, intuition, and creativity. B. Proponents of the artistic view often consider​ strategic-planning exercises to be time poorly spent. C. Mintzberg refers to strategic planning as an​ "inevitable" process, whereas strategy scientists use the term​ "absolute" process. D. This textbook rejects the Mintzberg philosophy.

Mintzberg refers to strategic planning as an​ "inevitable" process, whereas strategy scientists use the term​ "absolute" process.

As described in Chapter​ 9, what is the first​ strategy-evaluation activity?

Review the underlying bases of strategy.

Which statement below is​ FALSE? A. Strategy evaluations should be simple but cumbersome and restrictive. B. Small companies do not need extnsive evaluative reporting systems. C. Complex​ strategy-evaluation systems often confuse people and accomplish little. D. No department should fail to cooperate with another in evaluating strategies. E. Managers in small companies often communicate daily with each other and their employees

Strategy evaluations should be simple but cumbersome and restrictive.

Which statement below is​ FALSE? A. Successful companies have a voracious hunger for facts. B. Successful companies maintain loose financial controls. C. The people at successful companies​ don't regard controls as an imposition of autocracy but as the benign checks and balances that allow them to be creative and free. D. Successful companies treat facts as friends and controls as liberating. E. Successful companies see information where others see only data.

Successful companies maintain loose financial controls.

The​ strategy-evaluation process includes three basic activities. Which​ activity(s) below is not one of the​ three?

Develop a clear vision and mission.

Which statement below is FALSE regarding the​ strategic-planning process?

Executives should keep​ assignments, team​ memberships, and meeting formats constant for a year.

Which publication annually publishes the​ "World's Most Admired​ Companies," which provides helpful​ strategy-evaluation information?

Fortune

When evaluating​ strategies, GAAP stands for what​ term?

Generally accepted accounting principles

When evaluating​ strategies, GAAS stands for what​ term?

Generally accepted auditing standards

​______ is the characteristic of ensuring that​ long-term strategic objectives and plans are established and that the proper management structure is in place to achieve those​ objectives, while at the same time making sure that the structure functions to maintain the​ corporation's integrity,​ reputation, and responsibility to its various constituencies.

Goverance

When evaluating​ strategies, IFRS stands for what​ term?

International financial reporting standards

What is the second of the three​ strategy-evaluation activities?

Measure organizational performance.

Advantages of keeping the​ strategic-planning process secret include which statement​ below?

Participants in a visible strategy process become more attractive to rival​ firms, that may lure them away.

Four reasons to be completely open with the strategy process and resultant decisions are given in the​ chapter; these reasons include all of the following except which​ one?

Participation and openness lead to conciseness and accuracy.

​_____ is the third​ strategy-evaluation activity.

Take corrective actions.

Which statement below is​ FALSE? A. The Chinese warrior Sun Tzu and military leaders today strive to keep strategies​ secret, because war is based on​ deception; but for business​ organizations, secrecy may not be best. B. There are good reasons to keep strategies hidden from all but​ top-level executives. C. Keeping strategies secret from employees and stakeholders at large could severely inhibit employee and stakeholder​ communication, understanding, and​ commitment; likewise, maintaining secrecy could mean forfeiting valuable input that employees and stakeholders could offer regarding the formulation or implementation of the strategy.. D. Strategists must decide what is best for their firms. E. There are no good reasons to keep the strategy process and strategies themselves visible and open rather than hidden and secret.

There are no good reasons to keep the strategy process and strategies themselves visible and open rather than hidden and secret.

Contingency plans should be established if​ _____.

a new technological advancement makes a new product obsolete sooner than expected

Developed in the early 1990s by Harvard Business School professors Robert Kaplan and David Norton and refined continually since​ then, the​ ______ is a​ strategy-evaluation and control technique.

balanced scorecard

The basic premise of​ ______ is that firms should establish objectives and evaluate strategies on criteria other than using only financial measures.

balanced scorecard

Linneman and Chandran report that contingency planning gives users like​ DuPont, Dow​ Chemical, Consolidated​ Foods, and Emerson Electric three major benefits. It enables​ _____.

rapid responses to​ change, prevents panic in crisis situations and make managers more adaptable

Does this textbook advocate a​ top-down or​ bottom-up approach to strategic​ planning?

​Bottom-up

Which statement below is​ FALSE? A. Strategic management must not become​ ritualistic, stilted,​ orchestrated, or too​ formal, predictable, and rigid. B. Words supported by​ numbers, rather than numbers supported by​ words, should be the medium used to explain strategic issues and organizational responses. C. Strategic management should be a​ self-reflective learning process that familiarizes managers and employees in the organization with key strategic issues and feasible alternatives for resolving those issues. D. Numbers supported by​ words, rather than words supported by​ numbers, should be the medium used to explain strategic issues and organizational responses. E. R.T. Lenz says a guideline to follow in strategic planning is to welcome bad news and encourage​ devil's advocate thinking.

Numbers supported by​ words, rather than words supported by​ numbers, should be the medium used to explain strategic issues and organizational responses.

Which statement below is​ FALSE? A. Firms need to systematically assess their external and internal​ environments, conduct​ research, carefully evaluate the pros and cons of various​ alternatives, perform​ analyses, and then decide on a particular course of action. B. ​Mintzberg's notion of​ "crafting" strategies embodies the artistic​ model, which suggests that strategic decision making be based primarily on holistic​ thinking, intuition,​ creativity, and imagination. C. This textbook is consistent with most of the strategy literature in advocating that strategic management be viewed more as a science than an art. D. The Mintzberg​ strategic-planning approach insists on​ informality, whereas strategy scientists​ (and this​ text) insist on more formality. E. This textbook is framed primarily on the fact that strategic planning is an art rather than a science.

The Mintzberg​ strategic-planning approach insists on​ informality, whereas strategy scientists​ (and this​ text) insist on more formality.