Chapter 1-2

Application of the strategic-management process is typically more formal in larger and well-established organizations.

T

Which of the following is NOT a reason given for poor or no strategic planning in an organization?

Trust of management makes it unnecessary

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

using plans as a standard for measuring performance.

A vision statement describes an organization's values and priorities.

F

Despite some exceptions, business strategy is very different than military strategy.

F

Enhanced awareness of external threats is a financial benefit of strategic management.

F

Once an effective strategy is designed, modifications are rarely required.

F

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

Implementation

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

Interpersonal

In most large organizations that engage in strategic management, the formulation, implementation, and evaluation of strategy activities occur at three hierarchical levels: corporate; divisional or strategic business unit; and functional.

T

Making many intuitive decisions that conflict with the formal plan is a pitfall in strategic planning.

T

Strategists are usually found in higher levels of management and have considerable authority for decision making in the firm.

T

To be effective, strategic-management must be a process that familiarizes managers and employees with the key strategic issues facing an organization and the feasible alternatives for resolving those issues.

T

________ is NOT a strategy-implementation activity.

Taking corrective actions

To gain ________ firms need to provide unique products and services.

a sustainable competitive advantage

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

conflict; competition

The fact that Apple has no manufacturing facilities of its own

has enabled it to remain financially lean.

Annually, ________ businesses in the United States fail.

more than 100,000

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

objectives