Strategic Management: Concepts and Cases, 13e (David) Chapter 1 The Nature of Strategic Management 1) Strategic management focuses

on integrating management, marketing, finance/accounting, production/operations, research and development, and information systems to achieve organizational success. Answer: !"# $iff: 1 %age !ef: & opic: 'ntroduction ()*ective: 1.+1 $escri)e the strategic,management process. -) (ptimizing for tomorrow the trends of today is the purpose of strategic management. Answer: .A/S# $iff: 1 %age !ef: & opic: 0hat 's Strategic 1anagement2 ()*ective: 1.+1 $escri)e the strategic,management process. 3) #ven though useful, strategic planning has )een cast aside )y corporate America since the early 144+s. Answer: .A/S# $iff: %age !ef: & ()*ective: 1.+1 $escri)e the strategic,management process. 5) !esource allocation is included in strategy,formulation activities. Answer: !"# $iff: %age !ef: & opic: 0hat 's Strategic 1anagement2 ()*ective: 1.+1 $escri)e the strategic,management process. 6) he terms strategic management and strategic planning are synonymous in this te7t. Answer: !"# $iff: 1 %age !ef: & opic: 0hat 's Strategic 1anagement2 ()*ective: 1.+1 $escri)e the strategic,management process. &) A vision statement is, in essence, a company8s game plan. Answer: .A/S# $iff: 1 %age !ef: 11 opic: 0hat 's Strategic 1anagement2 ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management.

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9) Strategy implementation is often considered to )e the most difficult stage in the strategic, management process )ecause it re:uires personal discipline, commitment, and sacrifice. Answer: !"# $iff: 3 %age !ef: 9 opic: 0hat 's Strategic 1anagement2 ()*ective: 1.+5 $escri)e the nature of strategy formulation, implementation, and evaluation activities. ;) he final stage in strategic management is strategy implementation. Answer: .A/S# $iff: %age !ef: 9 opic: 0hat 's Strategic 1anagement2 ()*ective: 1.+5 $escri)e the nature of strategy formulation, implementation, and evaluation activities. 4) Strategy formulation, implementation and evaluation activities occur at three hierarchical levels in a large diversified organization: corporate, divisional and functional. Answer: !"# $iff: %age !ef: 9 opic: 0hat 's Strategic 1anagement2 ()*ective: 1.+5 $escri)e the nature of strategy formulation, implementation, and evaluation activities. 1+) (ne of the fundamental strategy evaluation activities is reviewing e7ternal and internal factors that are the )ases for current strategies. Answer: !"# $iff: %age !ef: 9 opic: 0hat 's Strategic 1anagement2 ()*ective: 1.+5 $escri)e the nature of strategy formulation, implementation, and evaluation activities. 11) An o)*ective, logical, systematic approach for making ma*or decisions in an organization is a way to descri)e the strategic,management process. Answer: !"# $iff: %age !ef: 9 opic: 0hat 's Strategic 1anagement2 ()*ective: 1.+- #7plain the need for integrating analysis and intuition in strategic management. 1-) Strategic management is an attempt to organize :ualitative and :uantitative information in a way that allows effective decisions to )e made under conditions of uncertainty. Answer: !"# $iff: %age !ef: 9 opic: 0hat 's Strategic 1anagement2 ()*ective: 1.+- #7plain the need for integrating analysis and intuition in strategic management.

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13) Analytical and intuitive thinking should complement each other. Answer: !"# $iff: 1 %age !ef: ; opic: 0hat 's Strategic 1anagement2 ()*ective: 1.+- #7plain the need for integrating analysis and intuition in strategic management. 15) According to Al)ert #instein, <=nowledge is far more important than intuition.< Answer: .A/S# $iff: 3 %age !ef: ; opic: 0hat 's Strategic 1anagement2 ()*ective: 1.+- #7plain the need for integrating analysis and intuition in strategic management. 16) 1anagement )y intuition can )e defined as operating from the <'8ve,already,made,up,my, mind,don8t,)other, me,with,the,facts mode.< Answer: .A/S# $iff: %age !ef: ; opic: 0hat 's Strategic 1anagement2 ()*ective: 1.+- #7plain the need for integrating analysis and intuition in strategic management. 1&) >y occasionally monitoring e7ternal events, companies should )e a)le to identify when change is re:uired. Answer: .A/S# $iff: 1 %age !ef: ; opic: 0hat 's Strategic 1anagement2 ()*ective: 1.+1 $escri)e the strategic,management process. 19) .irms, like organisms, must )e <adept at adapting< or they will not survive. Answer: !"# $iff: %age !ef: ; opic: 0hat 's Strategic 1anagement2 ()*ective: 1.+1 $escri)e the strategic,management process. 1;) o say ".S. firms are )eing challenged in the automo)ile industry is an inaccurate statement. Answer: .A/S# $iff: %age !ef: 4 opic: 0hat 's Strategic 1anagement2 ()*ective: 1.+1 $escri)e the strategic,management process. 14) Anything the firm does especially well compared to rival firms could )e considered a competitive advantage. Answer: !"# $iff: 1 %age !ef: 4 opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management.

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-+) (nce a firm ac:uires a competitive advantage, they are usually a)le to sustain the competitive advantage indefinitely. Answer: .A/S# $iff: %age !ef: 4 opic: =ey erms in Strategic 1anagement ()*ective: 1.+9 $iscuss how a firm may achieve sustained competitive advantage. -1) ?ewspaper companies in the "nited States provide a good e7ample of how a company can sustain a competitive advantage over the long,term. Answer: .A/S# $iff: 3 %age !ef: 4 opic: =ey erms in Strategic 1anagement AA@S>: !eflective hinking ()*ective: 1.+9 $iscuss how a firm may achieve sustained competitive advantage. --) Although the 'nternet has increased in popularity, it has actually led to increases in company e7penses. Answer: .A/S# $iff: %age !ef: 1+ opic: =ey erms in Strategic 1anagement AA@S>: "se of ' ()*ective: 1.+9 $iscuss how a firm may achieve sustained competitive advantage. -3) 0hile the num)er of people shopping online has increased, the average amount spent online has decreased. Answer: .A/S# $iff: %age !ef: 1+ opic: =ey erms in Strategic 1anagement AA@S>: "se of ' ()*ective: 1.+9 $iscuss how a firm may achieve sustained competitive advantage. -5) (ne of the ways in which the 'nternet has transferred power from )usinesses to individuals is )y making comparison,shopping :uick and easy. Answer: !"# $iff: %age !ef: 1+ opic: =ey erms in Strategic 1anagement AA@S>: "se of ' ()*ective: 1.+9 $iscuss how a firm may achieve sustained competitive advantage. -6) 1ost traditional retailers have tried in vain to use their online sales to )oost in,store sales. Answer: .A/S# $iff: 1 %age !ef: 1+ opic: =ey erms in Strategic 1anagement AA@S>: "se of ' ()*ective: 1.+9 $iscuss how a firm may achieve sustained competitive advantage.

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-&) 'n order for a firm to achieve sustained competitive advantage, a firm must continually adapt to changes in e7ternal trends and events and effectively formulate, implement, and evaluate strategies that capitalize upon those factors. Answer: !"# $iff: 3 %age !ef: 4,1+ opic: =ey erms in Strategic 1anagement ()*ective: 1.+9 $iscuss how a firm may achieve sustained competitive advantage. -9) Strategists are usually found in higher levels of management and have considera)le authority for decision,making in the firm. Answer: !"# $iff: 1 %age !ef: 1+ opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. -;) he middle manager is the most visi)le and critical strategic manager. Answer: .A/S# $iff: 3 %age !ef: 1+ opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. -4) All strategists have similar attitudes, values, ethics and concerns for social responsi)ility. Answer: .A/S# $iff: %age !ef: 11 opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. 3+) A vision statement answers the :uestion, <0hat is our )usiness2< whereas a mission statement answers, <0hat do we want to )ecome2< Answer: .A/S# $iff: 3 %age !ef: 11 opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. 31) 'n the last five years, the position of chief strategy officer A@S() has diminished in comparison to other top management ranks of many organizations. Answer: .A/S# $iff: %age !ef: 1+,11 opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. 3-) A clear mission statement descri)es the values and priorities of an organization. Answer: !"# $iff: 1 %age !ef: 11 opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management.

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33) Strengths and weaknesses are determined relative to competitors. Answer: !"# $iff: 1 %age !ef: 1opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. 35) 'n a multidivisional firm, o)*ectives should )e esta)lished for the overall company and not for each division. Answer: .A/S# $iff: %age !ef: 13 opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. 36) ()*ectives should )e measura)le, challenging, reasona)le, consistent and clear. Answer: !"# $iff: 1 %age !ef: 13 opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. 3&) Annual o)*ectives are long,term milestones that organizations must achieve to reach short, term o)*ectives. Answer: .A/S# $iff: %age !ef: 13 opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. 39) Annual o)*ectives are especially important in strategy formulation. Answer: .A/S# $iff: 1 %age !ef: 15 opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. 3;) According to research, a healthier workforce can more effectively and efficiently implement strategies. Answer: !"# $iff: %age !ef: 15 opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. 34) 'dentifying an organization8s e7isting vision, mission, o)*ectives and strategies is the final step for the strategic management process. Answer: .A/S# $iff: 1 %age !ef: 16 opic: he Strategic,1anagement 1odel ()*ective: 1.+1 $escri)e the strategic,management process.

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5+) (nce an effective strategy is designed, modifications are rarely re:uired. Answer: .A/S# $iff: 1 %age !ef: 16,1& opic: he Strategic,1anagement 1odel AA@S>: !eflective hinking ()*ective: 1.+1 $escri)e the strategic,management process. 51) Application of the strategic,management process is typically more formal in larger and well, esta)lished organizations. Answer: !"# $iff: %age !ef: 1& opic: he Strategic,1anagement 1odel ()*ective: 1.+1 $escri)e the strategic,management process. 5-) .ollowed )y commitment, understanding is the most important )enefit of strategic management. Answer: !"# $iff: %age !ef: 19 opic: >enefits of Strategic 1anagement ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 53) he )est thing strategists can do is develop strategic plans themselves and then present them to operating managers to e7ecute. Answer: .A/S# $iff: 3 %age !ef: 19 opic: >enefits of Strategic 1anagement ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 55) he changes that occurred at $isney after !o)ert 'ger took over as @#( e7emplify the fact that more and more organizations are centralizing the strategic,management process. Answer: .A/S# $iff: %age !ef: 19 opic: >enefits of Strategic 1anagement ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 56) .irms with planning systems more closely resem)ling strategic,management theory generally e7hi)it superior long,term financial performance relative to their industry. Answer: !"# $iff: 3 %age !ef: 19 opic: >enefits of Strategic 1anagement AA@S>: !eflective hinking ()*ective: 1.+6 $escri)e the )enefits of good strategic management.

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5&) /ow,performing firms typically underestimate their competitor8s strengths and overestimate their own firm8s strengths. Answer: !"# $iff: 1 %age !ef: 19 opic: >enefits of Strategic 1anagement ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 59) According to Breenley, strategic management provides a cooperative, integrated and enthusiastic approach to tackling pro)lems and opportunities. Answer: !"# $iff: %age !ef: 1; opic: >enefits of Strategic 1anagement ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 5;) he poor reward structure is one reason managers do not engage in strategic planning. Answer: !"# $iff: 1 %age !ef: 1; opic: 0hy Some .irms $o ?o Strategic %lanning ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 54) @rises and fires in an organization allow managers the training and time for effective strategic planning. Answer: .A/S# $iff: 1 %age !ef: 1; opic: 0hy Some .irms $o ?o Strategic %lanning ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 6+) 1aking many intuitive decisions that conflict with the formal plan is one pitfall top managers should avoid in strategic planning. Answer: !"# $iff: %age !ef: 14 opic: %itfalls in $oing Strategic %lanning ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 61) 1anagers must )e very formal in strategic planning )ecause formality induces fle7i)ility and creativity. Answer: .A/S# $iff: 1 %age !ef: 14 opic: %itfalls in $oing Strategic %lanning ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 6-) 1any organizations mistakenly spend more time and effort on the implementation of a plan, than on the formulation of the plan itself. Answer: .A/S# $iff: %age !ef: 14,-+ opic: Buidelines for #ffective Strategic 1anagement ()*ective: 1.+6 $escri)e the )enefits of good strategic management.
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63) Strategic,management must )e a self,reflective learning process that familiarizes managers and employees in the organization with key strategic issues and feasi)le alternatives for resolving those issues. Answer: !"# $iff: %age !ef: -+ opic: Buidelines for #ffective Strategic 1anagement ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 65) #ffective strategic management is ritualistic, predicta)le and formal. Answer: .A/S# $iff: %age !ef: -+ opic: Buidelines for #ffective Strategic 1anagement ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 66) .or the strategic planning process to )e effective, organizations must continually strengthen the <good ethics is good )usiness< policy. Answer: !"# $iff: %age !ef: -1 opic: >usiness #thics and Strategic 1anagement AA@S>: #thical !easoning ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 6&) 1ilitary success is usually the happy result of accidental strategies, )ut )usiness success is the product of continuous attention to changing conditions and insightful adaptations to those conditions. Answer: .A/S# $iff: 1 %age !ef: -1 opic: @omparing >usiness and 1ilitary Strategy ()*ective: 1.+& $iscuss the relevance of Sun zu8s < he Art of 0ar< to strategic management. 69) 'n most situations, )usiness strategy is very different than military strategy. Answer: .A/S# $iff: %age !ef: -1 opic: @omparing >usiness and 1ilitary Strategy ()*ective: 1.+& $iscuss the relevance of Sun zu8s < he Art of 0ar< to strategic management. 6;) he element of surprise provides great competitive advantages in )oth military and )usiness strategy. Answer: !"# $iff: %age !ef: -1 opic: @omparing >usiness and 1ilitary Strategy ()*ective: 1.+& $iscuss the relevance of Sun zu8s < he Art of 0ar< to strategic management.

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64) >oth military and )usiness strategy are formulated, implemented, and evaluated with an assumption of competition. Answer: .A/S# $iff: 3 %age !ef: -1 opic: @omparing >usiness and 1ilitary Strategy ()*ective: 1.+& $iscuss the relevance of Sun zu8s < he Art of 0ar< to strategic management. &+) Superior strategy formulation is well and good, )ut it cannot overcome an opponent8s superiority in num)ers and resources. Answer: .A/S# $iff: 1 %age !ef: -1 opic: @omparing >usiness and 1ilitary Strategy ()*ective: 1.+& $iscuss the relevance of Sun zu8s < he Art of 0ar< to strategic management. &1) All firms have a strategy, even if it is informal, unstructured, and sporadic. Answer: !"# $iff: %age !ef: -3 opic: @onclusion ()*ective: 1.+1 $escri)e the strategic,management process. &-) .irms can )e more proactive with strategic management. Answer: !"# $iff: 1 %age !ef: -3 opic: >enefits of Strategic 1anagement ()*ective: 1.+6 $escri)e the )enefits of good strategic management. &3) he goal of strategic management is to A) achieve competitive advantage. >) maintain competitive advantage. @) achieve and maintain competitive advantage. $) eliminate competitive advantage #) eliminate and a)olish competitive advantage. Answer: @ $iff: 1 %age !ef: 6 opic: 0hat 's Strategic 1anagement2 ()*ective: 1.+1 $escri)e the strategic,management process.

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&5) Strategic management focuses on integrating management, CCCCCCCC, and information systems to achieve organizational success. A) marketing >) finance/accounting @) production/operations $) research and development #) all of the a)ove Answer: # $iff: %age !ef: & opic: 'ntroduction ()*ective: 1.+1 $escri)e the strategic,management process. &6) 0hat can )e defined as the art and science of formulating, implementing and evaluating cross,functional decisions that ena)le an organization to achieve its o)*ectives2 A) Strategy formulation >) Strategy evaluation @) Strategy implementation $) Strategic management #) Strategic leading Answer: $ $iff: 1 %age !ef: 5 opic: 'ntroduction ()*ective: 1.+1 $escri)e the strategic,management process. &&) CCCCCCCC is used to refer to strategic formulation, implementation and evaluation, with CCCCCCCC referring only to strategic formulation. A) Strategic planningD strategic management >) Strategic planningD strategic processing @) Strategic managementD strategic planning $) Strategic managementD strategic processing #) Strategic implementationD strategic focus Answer: @ $iff: %age !ef: 6 opic: 'ntroduction ()*ective: 1.+1 $escri)e the strategic,management process.

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&9) $uring what stage of strategic management are a firm8s specific internal strengths and weaknesses determined2 A) .ormulation >) 'mplementation @) #valuation $) .eed)ack #) Boal,setting Answer: A $iff: 1 %age !ef: & opic: 'ntroduction ()*ective: 1.+5 $escri)e the nature of strategy formulation, implementation, and evaluation activities. &;) An important activity in CCCCCCCC is taking corrective action. A) strategy evaluation >) strategy implementation @) strategy formulation $) strategy leadership #) all of the a)ove Answer: A $iff: %age !ef: 9 opic: 'ntroduction ()*ective: 1.+5 $escri)e the nature of strategy formulation, implementation, and evaluation activities. &4) 0hat step in the strategic development process involves mo)ilizing employees and managers to put strategies into action2 A) .ormulating strategy >) Strategy evaluation @) 'mplementing strategy $) Strategic advantage #) @ompetitive advantage Answer: @ $iff: %age !ef: 9 opic: 'ntroduction ()*ective: 1.+5 $escri)e the nature of strategy formulation, implementation, and evaluation activities.

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9+) 0hat types of skills are especially critical for successful strategy implementation2 A) 'nterpersonal >) 1arketing @) echnical $) @onceptual #) hinking Answer: A $iff: %age !ef: 9 opic: 'ntroduction AA@S>: @ommunication ()*ective: 1.+5 $escri)e the nature of strategy formulation, implementation, and evaluation activities. 91) 0hich phase of strategic management is called the action phase2 A) Strategy formulation >) Strategy implementation @) Strategy evaluation $) Allocating resources #) 1easuring performance Answer: > $iff: 1 %age !ef: 9 opic: 'ntroduction ()*ective: 1.+5 $escri)e the nature of strategy formulation, implementation, and evaluation activities. 9-) CCCCCCCC is not a strategy,implementation activity. A) aking corrective actions >) #sta)lishing annual o)*ectives @) $evising policies $) Allocating resources #) 1otivating employees Answer: A $iff: %age !ef: & opic: 'ntroduction ()*ective: 1.+5 $escri)e the nature of strategy formulation, implementation, and evaluation activities.

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93) Strategy evaluation is necessary )ecause A) internal and e7ternal factors are constantly changing. >) the S#@ re:uires strategy evaluation. @) success today is a guarantee of success tomorrow. $) the '!S re:uires strategy evaluation. #) firms have limited resources. Answer: A $iff: %age !ef: 9 opic: 'ntroduction ()*ective: 1.+5 $escri)e the nature of strategy formulation, implementation, and evaluation activities. 95) 0hich statement )est descri)es intuition2 A) 't represents the marginal factor in decision,making. >) 't represents a minor factor in decision,making integrated with analysis. @) 't should )e coupled with analysis in decision,making. $) 't is )etter than analysis in decision,making. #) 't is management )y ignorance. Answer: @ $iff: %age !ef: ; opic: 'ntroduction AA@S>: !eflective hinking ()*ective: 1.+- #7plain the need for integrating analysis and intuition in strategic management. 96) CCCCCCCC and CCCCCCCC are e7ternal forces transforming )usiness and society today. A) #,commerceD strategy >) #,commerceD glo)alization @) StrategyD glo)alization $) @orporate cultureD stakeholders #) StakeholdersD strategy Answer: > $iff: %age !ef: 4 opic: 'ntroduction AA@S>: 1ulticultural and $iversity ()*ective: 1.+1 $escri)e the strategic,management process. 9&) Anything that a firm does especially well compared to rival firms is referred to as A) competitive advantage. >) comparative advantage. @) opportunity cost. $) sustaina)le advantage. #) an e7ternal opportunity. Answer: A $iff: 1 %age !ef: 4 opic: 'ntroduction ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management.

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99) he three original )roadcast networks captured a)out CCCCCCCC of the prime,time audience in 149;, )ut today their com)ined market share is less than CCCCCCCC. A) 96E/5+E >) 96E/-6E @) 4+E/6+E $) 4+E/-6E #) 1++E/5+E Answer: @ $iff: %age !ef: 1+ opic: 'ntroduction ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. 9;) he fact that Apple has no manufacturing facilities of its own A) has caused it to )uild up massive de)t on its )alance sheet. >) has ena)led it to remain financially lean with virtually no long,term de)t. @) has )een pro)lematic for Apple in terms of de)t. $) illustrates that having more fi7ed assets than rival firms can provide ma*or competitive advantages in a glo)al recession. #) means that it is in the same position as Sony. Answer: > $iff: %age !ef: 4 opic: 'ntroduction AA@S>: Analytic Skills ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. 94) CCCCCCCC allows firms to sell products, advertise, purchase supplies, )ypass intermediaries, track inventory, and eliminate paperwork. A) Social networking >) #,commerce @) >logging $) Fideo sites #) ?one of the a)ove Answer: > $iff: %age !ef: 1+ opic: 'ntroduction ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. ;+) he 'nternet has transferred power from CCCCCCCC to CCCCCCCC. A) )usinesses, individuals >) governments, )usinesses @) individuals, )usinesses $) )usinesses, governments #) individuals, governments Answer: A $iff: 1 %age !ef: 1+ opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management.
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;1) he trends in newspaper circulation in the "nited States provide support for which statement2 A) Sustaina)le competitive advantage is easy to maintain. >) Several firms can have similar competitive advantages. @) Some products are relatively immune to changes in the e7ternal environment. $) 1ost competitive advantages are hard to sustain. #) @ompetition is generally good for companies and consumers. Answer: $ $iff: 3 %age !ef: 1+ opic: =ey erms in Strategic 1anagement AA@S>: !eflective hinking ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. ;-) he one factor that has most significantly impacted the nature and core of )uying and selling in nearly all industries has )een A) the 'nternet. >) political )orders. @) corporate greed. $) customer and employee focus. #) the government. Answer: A $iff: %age !ef: 1+ opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. ;3) 0hich individuals are most responsi)le for the success and failure of an organization2 A) Strategists >) .inancial planners @) %ersonnel directors $) Stakeholders #) Guman resource managers Answer: A $iff: 1 %age !ef: 1+ opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. ;5) he first step in strategic planning is generally A) developing a vision statement. >) esta)lishing goals and o)*ectives. @) making a profit. $) developing a mission statement. #) determining opportunities and threats. Answer: A $iff: 1 %age !ef: 1+ opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management.

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;6) 0hat are enduring statements of purpose that distinguish one )usiness from other similar firms2 A) %olicies >) 1ission statements @) ()*ectives $) !ules #) #mployee conduct guidelines Answer: > $iff: %age !ef: 11 opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. ;&) An organization8s vision statement A) is a constant reminder to its employees of why the organization e7ists. >) )roadly charts the future direction of an organization. @) addresses the )asic :uestion: <0hat is our )usiness2< $) answers the :uestion: <0hat do we want to )ecome2< #) none of the a)ove Answer: $ $iff: 1 %age !ef: 11 opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. ;9) "sually, e7ternal opportunities and threats are A) uncontrolla)le )y a single organization. >) controlled )y governments. @) not as important as internal strengths and weaknesses. $) key functions in strategy implementation. #) key functions in strategy e7ploitation. Answer: A $iff: %age !ef: 11 opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. ;;) Specific results an organization seeks to achieve in pursuing its )asic mission are A) strategies. >) rules. @) o)*ectives. $) policies. #) tenets. Answer: @ $iff: 1 %age !ef: 13 opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management.

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;4) 'nternal CCCCCCCC are activities in an organization that are performed especially well. A) opportunities >) competencies @) strengths $) management #) factors Answer: @ $iff: 1 %age !ef: 1opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. 4+) 0hat are the means )y which long,term o)*ectives will )e achieved2 A) Strategies >) Strengths @) 0eaknesses $) %olicies #) (pportunities Answer: A $iff: %age !ef: 13 opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. 41) /ong,term o)*ectives should )e all of the following except A) measura)le. >) continually changing. @) reasona)le. $) challenging. #) consistent. Answer: > $iff: %age !ef: 13 opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. 4-) CCCCCCCC can )est )e descri)ed as short,term in nature. A) 1ission statements >) enure @) Annual o)*ectives $) Strategies #) 1anagement Answer: @ $iff: 1 %age !ef: 13 opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management.

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43) 'n which phase of strategic management are annual o)*ectives especially important2 A) .ormulation >) @ontrol @) #valuation $) 'mplementation #) 1anagement Answer: $ $iff: %age !ef: 15 opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. 45) 0hat are guides to decision making2 A) /aws >) !ules @) %olicies $) ()*ectives #) Boals Answer: @ $iff: 1 %age !ef: 15 opic: =ey erms in Strategic 1anagement ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. 46) he strategic,management process A) occurs once a year. >) is a se:uential process. @) is a continuous process. $) applies mostly to companies with sales greater than H1++ million. #) applies mostly to small )usinesses. Answer: @ $iff: %age !ef: 16 opic: he Strategic,1anagement 1odel ()*ective: 1.+1 $escri)e the strategic,management process. 4&) 0hich of the following is not included in the strategic management model2 A) 1easure and evaluate performance >) %erform internal research to identify customers @) #sta)lish long,term o)*ectives $) 'mplement strategies #) $evelop mission and vision statements Answer: > $iff: %age !ef: 16 opic: he Strategic,1anagement 1odel ()*ective: 1.+1 $escri)e the strategic,management process.

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49) Strategic management ena)les an organization to CCCCCCCC, instead of *ust responding to threats in its )usiness environment. A) )e proactive >) determine when the threat will su)side @) avoid the threats $) defeat their competitors #) foresee into the future Answer: A $iff: %age !ef: 1& opic: >enefits of Strategic 1anagement ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 4;) he act of strengthening employees8 sense of effectiveness )y encouraging and rewarding them for participating in decision,making and e7ercising initiative and imagination is referred to as A) authoritarianism. >) proaction. @) empowerment. $) transformation. #) delegation. Answer: @ $iff: 3 %age !ef: 19 opic: >enefits of Strategic 1anagement ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 44) Gow do line managers )ecome <owners< of the strategy2 A) >y attending top manager meetings >) >y e7ecuting plans formulated )y other people @) >y involvement in the strategic,management process $) >y )ecoming a shareholder of the firm #) >y )uying off top managers Answer: @ $iff: %age !ef: 19 opic: >enefits of Strategic 1anagement ()*ective: 1.+6 $escri)e the )enefits of good strategic management.

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1++) he changes that occurred when !o)ert 'ger took over the reigns at $isney demonstrate which current trend in organizations2 A) 'ncreased formalization of the strategic management process >) 'ncreased structuring of strategic management @) 'ncreased decentralizing of strategic management $) 'ncreased emphasis on strategic planning #) 'ncreased central planning of the strategic management process Answer: @ $iff: 3 %age !ef: 19 opic: >enefits of Strategic 1anagement AA@S>: !eflective hinking ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 1+1) According to research, organizations using strategic management are CCCCCCCC than those that do not. A) more profita)le >) more comple7 @) less profita)le $) less static #) less comple7 Answer: A $iff: %age !ef: 19 opic: >enefits of Strategic 1anagement ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 1+-) According to Breenley, strategic management offers all of these )enefits except: A) it provides an o)*ective view of management pro)lems. >) it creates a framework for internal communication among personnel. @) it encourages a favora)le attitude toward change. $) it ma7imizes the effects of adverse conditions and changes. #) it gives a degree of discipline and formality to the management of a )usiness. Answer: $ $iff: %age !ef: 1; opic: >enefits of Strategic 1anagement ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 1+3) 0hat is not a reason given for poor or no strategic planning in organizations2 A) 0aste of time >) >eing content with success @) .irefighting $) %oor reward structure #) rust of management Answer: # $iff: 1 %age !ef: 1;,14 opic: 0hy Some .irms $o ?o Strategic %lanning ()*ective: 1.+6 $escri)e the )enefits of good strategic management.

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1+5) All of these are pitfalls an organization should avoid in strategic planning except: A) using plans as a standard for measuring performance. >) using strategic planning to gain control over decisions and resources. @) failing to involve key employees in all phases of planning. $) too hastily moving from mission development to strategy formulation. #) )eing so formal in planning that fle7i)ility and creativity are stifled. Answer: A $iff: %age !ef: 14 opic: %itfalls in $oing Strategic %lanning ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 1+6) 0hat is not a pitfall an organization should avoid in strategic planning2 A) .ailing to communicate the plan to employees >) 'nvolving all managers rather than delegating planning to a <planner< @) op managers not actively supporting the strategic planning process $) $oing strategic planning only to satisfy accreditation or regulatory re:uirements #) .ailing to create a colla)orative climate supportive of change Answer: > $iff: %age !ef: 14 opic: %itfalls in $oing Strategic %lanning ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 1+&) 0hich of the following statements is false2 A) (pen,mindedness is an important guideline for effective strategic management. >) Strategic management must )ecome a self,perpetuating socialist mechanism. @) ?o organization has unlimited resources. $) Strategic decisions re:uire trade,offs. #) Strategic management must )e a self,reflective learning process. Answer: > $iff: 1 %age !ef: -+ opic: %itfalls in $oing Strategic %lanning ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 1+9) All of the following are guidelines for effective strategic planning except: A) it should )e simple and nonroutine. >) it should )e a learning process for all managers and employees. @) it should )e a paper process more than a people process. $) it should not disregard :ualitative information. #) it should not )e a formal system for control. Answer: @ $iff: %age !ef: -1 opic: Buidelines for #ffective Strategic 1anagement ()*ective: 1.+6 $escri)e the )enefits of good strategic management.

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1+;) 0hat is not a guideline given for effective strategic planning2 A) @ontinually strengthen the <good ethics is good )usiness< policy. >) 't should not include *argon or arcane planning language. @) 't should not )e too formal, predicta)le, or rigid. $) 't should welcome )ad news. #) 't should )e controlled )y <technicians.< Answer: # $iff: %age !ef: -+ opic: Buidelines for #ffective Strategic 1anagement ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 1+4) 0hich of the following statements is false2 A) ?o organization can pursue all the strategies that potentially could )enefit the firm. >) 1ost organizations today recognize that strategic,management concepts and techni:ues can enhance the effectiveness of decisions. @) A key role of strategists is to facilitate continuous organizational learning and change. $) #ffective strategic planning should accept the assumptions underlying the current corporate strategy. #) #ven the most technically perfect strategic plan will serve little purpose if it is not implemented. Answer: $ $iff: %age !ef: 14,-1 opic: Buidelines for #ffective Strategic 1anagement ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 11+) erms such as objectives, mission, strengths, and weaknesses were first formulated to address pro)lems A) on the )attlefield. >) in the )oardroom. @) on the trading floor. $) in the military hierarchy. #) in interpersonal relationships. Answer: A $iff: %age !ef: -1 opic: @omparing >usiness and 1ilitary Strategy ()*ective: 1.+& $iscuss the relevance of Sun zu8s < he Art of 0ar< to strategic management.

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111) According to Webster's New World Dictionary, CCCCCCCC is <the science of planning and directing large,scale military operations, of maneuvering forces into the most advantageous position prior to actual engagement with the enemy.< A) competitive advantage >) war @) strategy $) formulation #) )usiness Answer: @ $iff: 1 %age !ef: -1 opic: @omparing >usiness and 1ilitary Strategy ()*ective: 1.+& $iscuss the relevance of Sun zu8s < he Art of 0ar< to strategic management. 11-) >usiness or military success is A) generally the happy result of accidental strategies. >) undermined )y the element of surprise. @) the product of )oth attention to changing e7ternal and internal conditions and the insightful adaptations to those conditions. $) unrelated to e7ternal conditions. #) none of the a)ove. Answer: @ $iff: %age !ef: -1 opic: @omparing >usiness and 1ilitary Strategy ()*ective: 1.+& $iscuss the relevance of Sun zu8s < he Art of 0ar< to strategic management. 113) Superior strategy formulation and implementation CCCCCCCC an opponent8s superiority in num)ers and resources. A) are irrelevant to >) are not enough to surmount @) can overcome $) can lead to #) unite Answer: @ $iff: 1 %age !ef: -1 opic: @omparing >usiness and 1ilitary Strategy ()*ective: 1.+& $iscuss the relevance of Sun zu8s < he Art of 0ar< to strategic management. 115) A strong CCCCCCCC heritage underlies the study of strategic management. A) military >) government @) political $) social #) cultural Answer: A $iff: 1 %age !ef: -1 opic: @omparing >usiness and 1ilitary Strategy ()*ective: 1.+& $iscuss the relevance of Sun zu8s < he Art of 0ar< to strategic management.
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116) 1ilitary strategy is )ased on an assumption of CCCCCCCC, whereas )usiness strategy is )ased on an assumption of CCCCCCCC. A) conflictD cooperation >) conflictD competition @) cooperationD conflict $) competitionD conflict #) cooperationD competition Answer: > $iff: %age !ef: -1 opic: @omparing >usiness and 1ilitary Strategy ()*ective: 1.+& $iscuss the relevance of Sun zu8s < he Art of 0ar< to strategic management. 11&) >oth )usiness and military organizations must CCCCCCCC and CCCCCCCC to )e successful. A) )e impervious to changeD continually improve >) adapt to changeD continually improve @) shun changeD stay the course $) )e impervious to changeD stay the course #) none of the a)ove Answer: > $iff: 1 %age !ef: -1 opic: @omparing >usiness and 1ilitary Strategy ()*ective: 1.+& $iscuss the relevance of Sun zu8s < he Art of 0ar< to strategic management. 119) he strategic,management process is )ecoming more widely used )y A) small firms. >) nonprofit institutions. @) governmental organizations. $) multinational conglomerates. #) all of the a)ove Answer: # $iff: %age !ef: -3 opic: @onclusion ()*ective: 1.+1 $escri)e the strategic,management process. 11;) (rganizations should take aAn) CCCCCCCC approach in their industry. A) adversarial rather than a collegial >) collegial rather than an adversarial @) reactive rather than a proactive $) proactive rather than a reactive #) cooperative rather than a competitive Answer: $ $iff: %age !ef: -3 opic: @onclusion ()*ective: 1.+1 $escri)e the strategic,management process.

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114) he strategic,management process represents aAn) CCCCCCCC, CCCCCCCC, and CCCCCCCC approach for determining an enterprise8s future direction. A) logicalD systematicD su)*ective >) intuitiveD disorganizedD su)*ective @) logicalD systematicD o)*ective $) intuitiveD disorganizedD o)*ective #) intuitiveD systematicD su)*ective Answer: @ $iff: %age !ef: -3 opic: @onclusion ()*ective: 1.+1 $escri)e the strategic,management process. 1-+) @ompare and contrast strategic planning with strategic management. Answer: Strategic planning is more often used in the )usiness world, whereas strategic management is often used in academia. Sometimes, strategic management is used to refer to strategy formulation, implementation and evaluation, with strategic planning referring only to strategy formulation. he purpose of strategic management is to e7ploit and create new and different opportunities for tomorrowD long,range planning, in contrast, tries to optimize for tomorrow the trends of today. $iff: 1 %age !ef: & ()*ective: 1.+1 $escri)e the strategic,management process. 1-1) 0hich stage in the strategic,management process is most difficult2 #7plain why. Answer: Strategy implementation is the most difficult stage in the strategic,management process )ecause it re:uires personal discipline, commitment and sacrifice. Successful strategy implementation hinges upon managers8 a)ility to motivate employees, which is more of an art than a science. $iff: 1 %age !ef: 9 ()*ective: 1.+5 $escri)e the nature of strategy formulation, implementation, and evaluation activities. 1--) #7plain the relationship )etween strategic management and competitive advantage for firms. Gow can a firm achieve sustained competitive advantage2 Answer: Strategic management is all a)out gaining and maintaining competitive advantage. @ompetitive advantage is anything a firm does especially well compared to rival firms. 0hen a firm can do something that rival firms cannot do, or owns something that rival firms desire, that can represent a competitive advantage. Betting and keeping competitive advantage is essential for long,term success of an organization. A firm must strive to achieve sustained competitive advantage )y 1) continually adapting to changes in e7ternal trends and events and internal capa)ilities, competencies and resources, and )y -) effectively formulating, implementing and evaluating strategies that capitalize upon those factors. $iff: %age !ef: 4,1+ ()*ective: 1.+9 $iscuss how a firm may achieve sustained competitive advantage.

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1-3) $efine what strategists are. $escri)e what they do in an organization. Answer: Strategists are individuals who are most responsi)le for the success or failure of an organization. hey help an organization gather, analyze and organize information. hey track industry and competitive trends, develop forecasting models and scenario analyses, identify )usiness threats and develop creative action plans. Strategic planners usually serve in a support or staff role. "sually found in higher levels of management, they typically have considera)le authority for decision making in the firm. $iff: %age !ef: 1+ ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. 1-5) $efine and discuss the differences )etween vision and mission statements. Answer: 1any organizations today develop a vision statement that answers the :uestion <0hat do we want to )ecome2< $eveloping a vision statement is often considered the first step in strategic planning, preceding even development of a mission statement. 1any vision statements are a single sentence. .or e7ample, the vision statement of Stokes #ye @linic in .lorence, South @arolina, is <(ur vision is to take care of your vision.< Mission statements are <enduring statements of purpose that distinguish one )usiness from other similar firms. A mission statement identifies the scope of a firm8s operations in product and market terms.< 't addresses the )asic :uestion that faces all strategists: <0hat is our )usiness2< A clear mission statement descri)es the values and priorities of an organization. $eveloping a mission statement compels strategists to think a)out the nature and scope of present operations and to assess the potential attractiveness of future markets and activities. A mission statement )roadly charts the future direction of an organization. $iff: %age !ef: 11 ()*ective: 1.+3 $efine and give e7amples of key terms in strategic management. 1-6) $iscuss some forces that influence the formality of strategic,management systems. Answer: .irms that compete in comple7, rapidly changing environments, such as technology companies, tend to )e more formal in strategic planning. .irms that have many divisions, products, markets and technologies also tend to )e more formal in applying strategic, management concepts. Breater formality in applying the strategic,management process is usually positively related with the cost, comprehensiveness, accuracy and success of planning across all types and sizes of organization. $iff: %age !ef: 1& ()*ective: 1.+1 $escri)e the strategic,management process.

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1-&) /ist 1+ ma*or )enefits of strategic management, as stated )y Breenley. Answer: here are 15 )enefits stated )y Breenley. Students are to list any 1+ of the following: 1) it allows for identification, prioritization and e7ploitation of opportunitiesD -) it provides an o)*ective view of management pro)lemsD 3) it represents a framework for improved coordination and control of activitiesD 5) it minimizes the effects of adverse conditions and changesD 6) it allows ma*or decisions to )etter support esta)lished o)*ectivesD &) it allows more effective allocation of time and resources to identified opportunitiesD 9) it allows fewer resources and less time to )e devoted to correcting erroneous or ad hoc decisionsD ;) it creates a framework for internal communication among personnelD 4) it helps integrate the )ehavior of individuals into a total effortD 1+) it provides a )asis for clarifying individual responsi)ilitiesD 11) it encourages forward thinkingD 1-) it provides a cooperative, integrated and enthusiastic approach to tackling pro)lems and opportunitiesD 13) it encourages a favora)le attitude toward changeD and 15) it gives a degree of discipline and formality to the management of a )usiness. $iff: %age !ef: 1; ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 1-9) Bive at least seven reasons why some firms do no strategic planning. Answer: Some reasons for poor or no strategic planning are as follows: lack of knowledge or e7perience in strategic planning, poor reward structures, firefighting, waste of time, too e7pensive, laziness, content with success, fear of failure, overconfidence, prior )ad e7perience, self,interest, fear of the unknown, honest difference of opinion, and suspicion. $iff: %age !ef: 1;,14 ()*ective: 1.+6 $escri)e the )enefits of good strategic management. 1-;) 0hat are the pitfalls in strategic planning that management in an organization should watch out for or avoid2 'dentify any five pitfalls. Answer: here are 13 pitfalls. Students should list any five of the following: 1) using strategic planning to gain control over decisions and resourcesD -) doing strategic planning only to satisfy accreditation or regulatory re:uirementsD 3) too hastily moving from mission development to strategy formulationD 5) failing to communicate the plan to employees, who continue to work in the darkD 6) top managers making many intuitive decisions that conflict with the formal planD &) top managers not actively supporting the strategic,planning processD 9) failing to use plans as a standard for measuring performanceD ;) delegating planning to a <planner< rather than involving all managersD 4) failing to involve key employees in all phases of planningD 1+) failing to create a colla)orative climate supportive of changeD 11) viewing planning to )e unnecessary or unimportantD 1-) )ecoming so engrossed in current pro)lems that insufficient or no planning is doneD and 13) )eing so formal in planning that fle7i)ility and creativity are stifled. $iff: %age !ef: 14 ()*ective: 1.+6 $escri)e the )enefits of good strategic management.

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1-4) $iscuss the importance of the implementation phase of strategic management. Answer: #ven the most technically perfect strategic plan will serve little purpose if it is not implemented. 1any organizations tend to spend an inordinate amount of time, money, and effort on developing the strategic plan, treating the means and circumstances under which it will )e implemented as an afterthoughtI @hange comes through implementation and evaluation, not through the plan. A technically imperfect plan that is implemented well will achieve more than the perfect plan that never gets off the ground. $iff: %age !ef: 14,-+ ()*ective: 1.+5 $escri)e the nature of strategy formulation, implementation, and evaluation activities. 13+) $iscuss the value of integrating intuition and analysis. Answer: 1ost organizations can )enefit from strategic management, which is )ased upon integrating intuition and analysis in decision making. @hoosing an intuitive or analytic approach to decision making is not an either,or,proposition. 1anagers at all levels in an organization in*ect their intuition and *udgment into strategic,management analyses. Analytical thinking and intuitive thinking complement each other. (perating from the< '8ve,already,made,up,my,mind, don8t,)other,me,with,the,facts< mode is not management )y intuitionD it is management )y ignorance. $rucker says, <' )elieve in intuition only if you discipline it. 8Gunch8 artists, who make a diagnosis )ut don8t check it out with facts, are the ones in medicine who kill people, and in management kill )usinesses.< 'n a sense, the strategic,management process is an attempt )oth to duplicate what goes on in the mind of a )rilliant, intuitive person who knows the )usiness, and to couple it with analysis. $iff: %age !ef: 9,; ()*ective: 1.+- #7plain the need for integrating analysis and intuition in strategic management. 131) @ompare and contrast )usiness and military strategy. Answer: >usiness and military strategy are very similar. A key aim of )oth )usiness and military strategy is <to gain competitive advantage.< hey )oth also try to use their own strengths to e7ploit competitor8s weaknesses. Success is not the happy result of accidental strategies in either )usiness or military organizations. he element of surprise provides great competitive advantages in )oth military and )usiness strategy. 'nformation systems that provide data on opponents8 or competitors8 strategies and resources are also vitally important. .inally, )oth )usiness and military organizations must adapt to change and constantly improve to )e successful. 0hile )usiness and military strategy are the same in many ways, they have one ma*or differenceJ)usiness strategy is formulated, implemented and evaluated with an assumption of competition, whereas military strategy is )ased on an assumption of conflict. $iff: %age !ef: -1,-()*ective: 1.+& $iscuss the relevance of Sun zu8s < he Art of 0ar< to strategic management.

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13-) 0hat are some opportunities and threats that face many firms during a glo)al economic recession2 Answer: Some of the opportunities and threats are: availa)ility of capital can no longer )e taken for grantedD consumers e7pect green operations and productsD marketing is moving rapidly to the 'nternetD consumers must see the value in all that they consumeD glo)al markets offer the highest growth in revenuesD too much de)t can crush even the )est firmsD layoffs are rampant among many firms as revenues and profits fall and credit sources dry upD the housing market is depressedD demand for health services does not change much during a recessionD )orrowers are faced with much )igger collateral re:uirements than in years pastD e:uity lines of credit often now are not )eing e7tendedD firms that have cash or access to credit have a competitive advantage over de)t,laden firmsD discretionary spending has fallen dramaticallyD the )usiness world has moved from a credit,)ased economy to a cash,)ased economyD there is reduced capital spending in response to reduced consumer spending. $iff: %age !ef: 11,1()*ective: 1.+3 $efine and give e7amples of key terms in strategic management.

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