chapter 1: strat mgmt

In regard to strategy making, most firms are likely to exhibit:

A combination of design and emergence

The main reason for the transition from corporate planning to strategic management during the latter half of the 1970s was:

A more turbulent business environment that became increasingly difficult to predict

The essence of strategy is: a. Making choices b. Doing things differently c. Where and how to compete d. All of the above

All of the above

Ryanair's strategic position is as Europe's lowest-cost airline may be attributed to:

An integrated, consistent set of activities designed to maximize productivity and minimize operating costs

The notion of "strategic fit": a. Is common in strategic literature but means different things to different experts b. Implies deep coherence across all functions within the organization c. Expresses how well a firm's strategy fits its internal environment d. Answers a and c

Answers a and c

For both individuals and businesses, successful strategies are characterized by:

Clear goals, deep understanding of the competitive environment, careful resource appraisal, and effective implementation

Between the two levels of strategy, the division of responsibility is consistent with the following principle:

Corporate level strategy is the domain of headquarters executives, while division managers are in charge of their business level strategies

How do corporate level strategy and business level strategy differ?

Corporate strategy defines the scope of a firm's activities, while business strategy focuses on how to beat the competition in a specific product market

The primary distinction between corporate strategy and business strategy is:

Corporate strategy is concerned with where the firm competes; business strategy with how it competes

The main problem of SWOT as a framework for strategy analysis is that:

Distinguishing opportunities from threats and strengths from weaknesses is often difficult

The increasingly complex business environment of the 21st century has resulted in:

Firms increasingly depending upon other firms through outsourcing and strategic alliances

The applicability of the tools and techniques of strategy analysis to not-for-profit organizations is:

Greater for organizations that both charge for their services and face competition than those which are monopolists providing services free of charge.

The successful careers of both Queen Elizabeth II and Lady Gaga may be attributed to the fact that both:

Have a consistency of direction based on clear goals

In all organizations, strategy making involves a combination of top-down strategy design and decentralized mergence. The balance between the two depends mainly upon:

How turbulent and unpredictable is the external environment of the organization

Honda's successful entry into the US motorcycle market has:

Provided a battleground for the debate opposing the Design School and the Learning School

If a firm adjusts its strategy to ensure it is consistent with its external environment, it benefits from a:

Strategic fit

The book that is considered as the first treatise on strategy is:

Sun Tzu's Art of War

In the military field, we generally make the following distinction between strategy and tactics:

Tactics relate to specific actions whereas strategy relates to the overall plan

In the 1980s, Michael Porter pioneered:

The application of industrial organization economics for analyzing industry profitability

Strategic fit refers to:

The consistency of a firm's strategy with its external and internal environments

Military strategy and business strategy differ in that

The objective of military strategy is to defeat the enemy; business strategy seeks coexistence rather than annihilation

During the 1990s, the focus of strategy analysis shifted:

To the role of resources and capabilities as a foundation for firm strategy

The expression "blue oceans" in strategic management is:

a concept that signifies the immensity of potential new markets

The two questions of "where and how to compete" define

a firm's corporate and business strategies

The primary purpose of strategy is

achieving success

Strategic goals should be:

all of the above

Business strategy defines: a. the way a firm competes in a particular industry or market b. the way a firm establishes a competitive advantage over its rivals within a specific industry or market c. Both of the above d. Neither of the above

c. both of the above

Strategy improves decision-making by: a. Reducing the number of choices being considered b. Integrating and pooling the knowledge of different members of the organization c. Facilitating the use of analytic tools d. All of the above

d. All of the above

"Strategy" derives from a Greek word meaning:

generalship

When the environment becomes more turbulent, unpredictable, and full of new opportunities:

strategy becomes a vital tool to navigate the firm through "stormy seas"

Corporate strategy is concerned with:

the scope of the firm in terms of industries and markets, and the allocation of its resources

The balance between intended and emergent strategy depends primarily upon the stability and predictability of the organization's business environment. The more stable and predictable the environment, the greater the importance of emergent strategy.

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