Strategic Management Practice Questions

true

A CEO celebrity can serve as an intangible asset for the CEO's firm.

b. deliberate

A _____ strategy is the parts of the intended strategy that an organization continues to pursue over time. Select one: a. marked b. deliberate c. make over d. non-realized e. pre-termed

false

Learning and growth measures of performance relate to organizational efficiency.

e. It invests heavily in advertising and brand building.

Mekcin is a company that regularly launches products with features that are different from what are offered in the market. It has now launched a new electronic device in the market. The device can be fitted to vehicles. It can be programmed in such a way that it automatically dials the police emergency number, provide them with all the required Background image of page 6 location details, and guide them to the location, in case of an emergency. Which of the following statements would hold true for Mekcin? a. It competes with rivals on the basis of price. b. It offers generic and standardized products. c. It does not invest in the field of market research. d. It spends little on research and development. e. It invests heavily in advertising and brand building.

true

Organizations need support from their key stakeholders, such as employees, owners, suppliers, and customers, in order to prosper.

false

Organizations prosper if the vision and mission are divided by emphasizing very different domains.

c. differentiation

Pete opens a new pizzeria in town. He promises home delivery of pizzas within a period of thirty minutes. He also makes a unique offer that if the pizzas are not delivered within thirty minutes of placing the order, then the customer would not be charged for the pizza. None of the other pizzerias in his town offer such a deal. This is an example of a(n) _____ strategy. a. cost leadership b. adaptive c. differentiation d. pull e. focused cost leadership

e. differentiation

A company regularly launches products with features that are different from what are offered in the market. It has now launched a new electronic device in the market. The device can be fitted to vehicles. It can be programmed in such a way that it automatically dials the police emergency number, provide them with all the required location details, and guide them to the location in case of an emergency. This is an example of a(n) _____ strategy. a. focused cost leadership b. cost leadership c. pull d. adaptive e. differentiation

c. position.

A company that manufactures cars aims to sell them to customers in the premium market segment. This is an example of strategy as: a. ploy. b. plan. c. position. d. pattern. e. perspective.

d. pattern.

A department store consistently keeps low prices, and this strategy helps the store to attract many customers. This is an example of a strategic: a. ploy. b. plan. c. position. d. pattern. e. perspective.

e. Competitors may be able to imitate the features well enough that they are no longer unique.

A health drink company is known for launching drinks with flavors which are different from what are offered in the market. It regularly indulges in experimentation to come up with new and exotically flavored drinks. It also charges higher than the other health drink companies. What disadvantage would the company face because of the strategy it follows? a. The firm needs to attract huge numbers of customers in order to have a good overall level of profit. b. Differentiation lacks an ability to obtain premium prices from customers. c. A differentiation strategy allows the entrance of new companies in the market. d. A differentiation strategy lacks the capacity to generate buyer loyalty. e. Competitors may be able to imitate the features well enough that they are no longer unique.

e. intended

A pizza shop plans to deliver pizzas to households. The delivery would be made without any extra charge. It hopes to execute this strategy in the suburbs. This is an example of a(n) _____ strategy. a. marked b. pre-termed c. realized d. emergent e. intended

a. focused cost leadership strategy.

A sneaker manufacturing company targets teenagers. It sells the sneakers to these teenagers at a price which is lower than what is offered in the market. The fact that it offers low sneakers to teenagers is an example of a(n): a. focused cost leadership strategy. b. pull strategy. c. focused differentiation strategy. d. adaptive strategy. e. differentiation strategy.

false

A vision captures the key elements of the organization's past and present.

true

A well-formulated vision that is embraced by employees can give an organization an edge over its rivals.

a. emergent

A(n) _____ strategy is an unplanned strategy that arises in response to unexpected opportunities and challenges. a. emergent b. marked c. pre-termed d. intended e. realized

e. realized

A(n) _____ strategy is the strategy that an organization actually follows. a. established b. marked c. pre-termed d. arranged e. realized

d. intended

A(n) _____ strategy is the strategy that an organization hopes to execute. a. emergent b. marked c. pre-termed d. intended e. realized

a. focused cost leadership

A(n) _____ strategy requires competing based on price to target a narrow market. a. focused cost leadership b. pull leadership c. focused differentiation d. adaptive e. differentiation

true

An organization is more effective to the extent that its vision and its mission target employees' effort in the same direction.

true

Celebrity CEOs tend to receive higher compensation and job perks than their colleagues.

false

Customer measures of performance are commonly articulated and emphasized within an organization's annual report to shareholders.

e. perspective.

Dormer is the only fine dining restaurant in a small town. The opening of a new restaurant is viewed as a threat by some of the employees at Dormer. Others see it as an opportunity for Dormer to strengthen itself by looking out for its weaknesses and ironing them out. This is an example of strategy as: a. ploy. b. plan. c. position. d. pattern. e. perspective.

false

Entrepreneurial thinking and doing is limited to those who begin in their garage with a new idea, financed by family members or personal savings.

a. price sensitivity

Healthie is a health drink company that is known for launching drinks with flavors which are different from what are offered in the market. It regularly indulges in experimentation to come up with new and exotically flavored drinks. It also charges higher than the other health drink companies. Another company offers the same drinks a lower price. Customers who were once loyal to Healthie immediately switch over to the new company which is charging a lower price for the same drinks. This is an example of _____. a. price sensitivity b. affective conflict c. party selling d. palming off e. all-you-can-afford budgeting

false

Hidden gems are CEOs who are well-known, but vilified.

false

Internal business process measures of performance relate to customer attraction, satisfaction, and retention.

e. emergent

Roomz, a mid-range hotel, used to provide only food and accommodation facilities. It soon realized that most of its customers are foreign tourists who constantly ask for directions and advice on places to visit. The hotel then decided to start a travel desk which would help tourists select and visit places of historical and cultural significance. This is an example of a(n) _____ strategy. a. marked b. pre-termed c. intended d. realized e. emergent

true

Scoundrels are those CEOs who are closely monitored and scrutinized by the media.

true

Setting organizational goals that are easy to reach encourages employees to work just hard enough to reach the goals.

true

Some large organizations promote autonomy by empowering a division to make its own decisions, set its own objectives, and manage its own budgets.

a. pattern

Strategy as _____ focuses on the extent to which a firm's actions over time are consistent. a. pattern b. perspective c. ploy d. plan e. position

e. position

Strategy as _____ refers to a firm's place in the industry relative to its competitors. a. pattern b. perspective c. ploy d. plan e. position

b. perspective

Strategy as _____ refers to how executives interpret the competitive landscape around them. a. pattern b. perspective c. ploy d. plan e. position

true

The common element in all entrepreneurs is that they do something new and can make something out of opportunities that others cannot.

true

The idea behind the balanced scorecard framework is to provide a "balance" between financial measures and other measures that are important for understanding organizational activities that lead to sustained, long-term performance.

true

The most effective goals are those that are specific, measurable, aggressive, realistic, and time-bound.

true

The triple bottom line framework highlights areas such as social responsibility.

false

The triple bottom line framework ignores traditional organization profits as a measure of organizational performance.

true

Thinking and behaving entrepreneurially can help a person's career.

false

Well-regarded celebrity CEOs always have totally untarnished reputations.

c. Downplaying research and development can slow cost leaders' ability to respond to changes once they are detected.

Which of the following is a disadvantage of cost leadership? a. The presence of a cost leader in an industry tends to discourage new firms from entering the business. b. Low prices for goods and services always lead to low customer base. c. Downplaying research and development can slow cost leaders' ability to respond to changes once they are detected. d. Cost leadership strategy makes companies vulnerable to price competition from rivals. e. Cost leadership strategy breaks down barriers to entry that protect the firm from new competition.

d. Advertising in general and brand building in particular are very important to them.

Which of the following statements holds true for companies following the differentiation strategy? a. They offer generic and standardized products. b. They do not invest in the field of market research. c. They spend little on research and development. d. Advertising in general and brand building in particular are very important to them. e. They compete with their rivals on the basis of price

c. Strategic management

_____ examines how actions and events involving top executives, firms, and industries influence a firm's success or failure. a. Developmental counseling b. Disparate impact c. Strategic management d. Trend analysis e. Attitude survey

d. Price sensitivity

_____ refers to the extent to which an increase in the cost of the product makes a buyer less likely to purchase an item. a. Affective conflict b. Palming off c. Party selling d. Price sensitivity e. All-you-can-afford budgeting