Chapter 9

____ 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.

Corporate Governance

What are the five​ issues, beyond​ financial, a firm uses to evaluate its strategies when developing a balanced​ scorecard?

Customers, Managers/Employees,​ Operations/ Processes,​ Community/Social Responsibility, and Business​ Ethics/Natural Environment

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

Develop a clear vision and mission.

What are the basic activities of the​ strategy-evaluation process?

Examine the underlying bases of a​ firm's strategy, compare expected results with actual​ results, and take corrective actions to ensure the performance conforms to plans.

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

False

In many​ organizations, strategy evaluation is simply an appraisal of how well an organization has performed.

False

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

False

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

False

Strategy evaluations should be simple but cumbersome and restrictive.

False

Successful companies maintain loose financial controls.

False

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

False

This textbook is framed primarily on the fact that strategic planning is an art rather than a science.

False

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

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

International financial reporting standards

Which of the following is suggested to make strategic planning more​ effective?

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

Which statement below is not a guideline for effective strategic​ planning, according to R. T.​ Lenz?

It should contain vague planning jargon.

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

Measure organizational performance.

Which​ strategy-evaluation activity includes comparing expected results with actual​ results, investigating deviations from​ plans, evaluating individual​ performance, and examining progress toward meeting stated​ objectives?

Measuring organizational performance

Which of the following is a current trend in the U.S. regarding Boards of​ Directors?

Much greater board member accountability with smaller boards

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.

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

Review the underlying bases of strategy.

____ is the third​ strategy-evaluation activity.

Take corrective actions.

Which​ strategy-evaluation activity requires making changes to competitively reposition a firm for the​ future?

Taking corrective actions

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

The Balanced Scorecard strategy evaluation and control technique derives its name from the need of firms to balance​ _____

financial and nonfinancial measures

The act of oversight and direction provided by a Board of Directors is referred to as​ _____

governance

Most strategy literature advocates that strategic management​ is_____

more a science than an art

​Strategy-evaluation activities should be performed​ _____

on a continuing basis

When conducting strategic​ planning, some firms prefer to keep strategies hidden because​ _____

participants in a visible strategic process become more attractive to rival​ firms, which may lure them away

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

The strategic planning process should​ _____

strengthen the​ "good ethics is good​ business" policy

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

​Bottom-up