Answer the following questions:

No. Statement
1. The purpose of strategic management is to exploit and create new and different opportunities for
tomorrow. a) true b) false
2. ---------------results from tough managerial choices among numerous good alternatives, and it signals
commitment to specific markets, policies, procedures, and operations in lieu of other, “less desirable”
courses of action.
a) a short run goal b) a vision c) resource allocation d) A strategic plan e) an
organizational policy
3. Which level of strategy is most likely NOT present in small firms?
A) Company B) Functional C) Divisional D) Operational
E) All of the above are present in small firms.
4. ------------------decisions commit an organization to specific products, markets, resources, and technologies
over an extended period of time.
a) measuring performance b) Strategy-formulation c) resource allocation d) Strategy-
implementation e) Strategy-evaluation
5. Which strategy is effective when new, but related, products could be offered at highly competitive prices?
A) Forward integration B) Related diversification C) Related integration
D) Conglomerate diversification E) Unrelated diversification
6. The following statements are some reasons of being firms do not use strategic planning except:
a) No monetary rewards for doing planning b) No punishment for not planning
c) Too busy “firefighting” to plan ahead
d) View planning as a waste of time, since no product/service is made
e) Prior excellent experience with strategic planning done sometime/ somewhere
7. Amazon's start of rapid delivery services in some U.S. cities is an example of which type of strategy?
A) Forward integration B) Backward integration C) Horizontal integration D)
Related diversification E) Unrelated diversification
8. There are three important questions to answer in developing a strategic plan: where are we now?,-------------
----------?, and how are we going to get there?
a) what is our business b) what do we want c) what is the reason of being d) when do we
want to go e) where do we want to go
9. The following statements are key benefits of using strategic management except:
a) Enhanced awareness of external threats b) Improved understanding of competitors’ strategies
c) decreased employee productivity d) Reduced resistance to change
e) Clearer understanding of performance–reward relationships
10. ---------------- are the means by which annual objectives will be achieved.
a) missions b) visions c) short term goals d) polices e) long run objectives
11. Forward integration and backward integration are sometimes collectively referred to as
A) horizontal integration. B) diversification. C) vertical integration.

1
 D) stuck-in-the-middle. E) hierarchical integration.
12. Most organizations can benefit from strategic management, which is based on integrating ------------- in
decision making.
a) pitfalls and risk b) intuition and analysis c) human skills d) intuition and experience
e) analytical and scientific thinking
Based on the below mission, answer statements from 16 to 22:
Our mission is to design, produce, and distribute the world’s best fragrances, perfumes, and personal care products (1)
to women, men, and children (2) by utilizing the latest technological improvements (3). We empower our highly
creative team of researchers to develop safe, eco-friendly (4) products that will enable our firm to profitably grow (5)
through thousands of retail outlets. We strive to be one of the most socially responsible firms on the planet (6) and
appreciate our employees making that happen, while following the “golden rule” in all that we do (7).
13. The first part (underlined part) of the mission indicates the market component
a) true b) false
14. The second part of the mission indicates the --------- component.
a) age b) market c) customer d) gender e) none of the above
15. The third part of the mission indicates the --------- component.
a) value b) public image c) survival d) growth e) technology
16. The forth part of the mission indicates the self-concept component. a) true b) false
17. The fifth part of the mission indicates the --------- component.
a) Survival b) value c) employee d) broad e) self-concept
18. The sixth part of the mission indicates the value component. a) true b) false
19. The seventh part of the mission indicates the --------- component.
a) public image b) survival c) self-concept d) philosophy e) market
20. Gap's opening of its first five stores in China is an example of which type of strategy?
A) Forward integration B) Backward integration C) Horizontal integration
D) Market development E) Product development
21. Asking managers themselves to prepare a vision and mission statement for the organization is the -------
step in developing mission. a) first b) second c) third d) fourth e) last
22. Backward integration is effective in all of these cases EXCEPT
A) when an organization competes in an industry that is growing rapidly.
B) when an organization has both capital and human resources to manage the new business of supplying its
own raw materials.
C) when an organization needs to acquire a needed resource quickly.
D) when the advantages of stable prices are not particularly important.
E) when present suppliers have high profit margins.
23. Which strategy should be implemented when a division is responsible for an organization's overall poor
performance?
A) Backward integration B) Divestiture C) Forward integration
D) Cost leadership E) Related diversification