Deck 1: Introducing the Concepts

Question 1

Strategy formulation is the responsibility of managers and employees at other levels throughout the organization.

Answer 1

False

Question 2

An organization's strategy is its goal-directed decisions and actions in which its capabilities and resources are matched with the opportunities and threats in its environment.

Answer 2

True

Question 3

The fields of economics and organization studies provided the earliest academic bases for strategic management.

Answer 3

True

Question 4

Business strategies are concerned with the broad and more long-term choices of "what business(es)are we in or do we want to be in, and what do we want to do with these businesses?"

Question 5

The Surprise Principle of War calls for striking at the enemy at a time or a place that's unexpected.

Question 6

Strategy implementation is the process of evaluating how the strategy has been implemented, as well as the outcomes of the strategy.

Question 7

Strategy involves only the examination of an organization's goals.

Question 8

Bases for understanding strategic management are all of the following except

A) managing strategically makes a difference in an organization's performance.
B) all organizations encounter changing situations.
C) single approaches to strategy development are superior to multiple approaches.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 9

A situation analysis is the first step in the sequential strategic management process.

Question 10

The following are all features of strategic management except

A) interdisciplinary.
B) external focus.
C) internal focus.
D) future direction.
E) All of the answer choices are correct.

Question 11

The CEO's typical role is that of the chief strategist.

Question 12

An organization's simple action can be considered a strategy.

Question 13

Strategy should be developed from a number of approaches rather than a single approach.

Question 14

A company's board of directors' legal obligation is to represent the shareholders and protect their interests.

Question 15

Significant changes in legal mandates, investor activism, and corporate strategy have changed the roles of many boards in the strategic management process.

Question 16

Functional strategies are the goal-directed plans and actions of the organization's various functional departments.

Question 17

Companies that use strategic management tend to have higher levels of performance.

Question 18

Strategic management is defined as

A) those decisions and actions where organizational members analyze the current situation and develop appropriate strategies.
B) putting those strategies into action.
C) evaluating and changing those strategies as needed.
D) developing appropriate strategies.
E) All of the answer choices are correct.

Question 19

The most basic question(s)in strategy is (are)

A) Is strategy important?
B) Why do firms succeed or fail?
C) Why do firms have varying levels of performance?
D) Is strategy important? and Why do firms have varying levels of performance?
E) Why do firms succeed or fail? and Why do firms have varying levels of performance?

Question 20

Preparation of strategic plans are a typical board responsibility.

Question 21

Types of strategies within organizations include

A) corporate strategies.
B) functional strategies.
C) competitive strategies.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 22

Which of the following is not a characteristic of strategic management that makes it different from other types of management?

A) It is interdisciplinary.
B) It has an external focus.
C) It has an internal focus.
D) It concerns the present direction of the organization.
E) None of the answer choices is correct.

Question 23

The basic activities of strategic management include

A) offense, defense, and control.
B) situation analysis, strategy formulation, strategy implementation, and strategy evaluation.
C) development, control, and management.
D) ethics, management, and practice.
E) None of the answer choices is correct.

Question 24

The organization type which first utilized strategy is

A) the entertainment organization.
B) the military organization.
C) the retail organization.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 25

Examples of an organization's functional units include all of the following except

A) marketing.
B) research and development.
C) competencies.
D) production.
E) All of the answer choices are correct.

Question 26

An organization's ________ are its goal-directed plans and actions in which its capabilities and resources are matched with the opportunities and threats in its environment.

A) mission statements
B) vision statements
C) strategies
D) objectives
E) None of the answer choices is correct.

Question 27

Which of the following statements is not true regarding corporate strategies?

A) They are concerned with the broad and more long-term issues of the organization.
B) They are concerned with how the organization is going to compete in a specific business or industry.
C) They are concerned with the direction the organization is headed.
D) They are concerned with the business(es) that the organization is in and the businesses they want to be in.
E) All of the answer choices are correct.

Question 28

Strategy concepts have been utilized outside of businesses in

A) the military.
B) chess.
C) games such as Battleship.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 29

How is strategic management different from other types of management?

A) Strategic management has an external focus by its emphasis on the interactions of the organization with its external environment.
B) Strategic management involves the organization's specific resources and capabilities.
C) Strategic management concerns itself with the choice of future direction that the organization is going.
D) Strategic management enables managers to evaluate the organization's internal and external situation and decide future actions to take.
E) All of the answer choices are correct.

Question 30

Theories developed about the efficiency and effectiveness of organizations were written by

A) Frederick Taylor.
B) Chester Barnard.
C) Max Weber.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 31

An example of a corporate strategy would involve

A) the decision to increase the price of the Hummer.
B) the decision to spin Taco Bell off from Pepsi.
C) the decision to combine marketing functions in the Northeast and the Southeast.
D) the decision to increase the advertising budget for Coca-Cola.
E) None of the answer choices is correct.

Question 32

In the development of strategic management as a discipline, Alfred Chandler wrote the book

A) Corporate Strategy.
B) Business Policy: Text and Cases.
C) The Pursuit of Excellence.
D) Strategy and Structure.
E) The Teflon Leader.

Question 33

The academic discipline primarily responsible for the development of strategic management is

A) accounting.
B) economics.
C) biology.
D) philosophy.
E) anthropology.

Question 34

Which of the following is not a major element of the strategic management process?

A) Formulating strategy
B) Implementing strategy
C) Evaluating strategy
D) Assigning administrative tasks
E) Undertaking a situation analysis

Question 35

As part of its training, most military academies teach

A) the Nine Principles of War.
B) the Seven Principles of Success.
C) the Five Keys to Effectiveness.
D) the Eight Steps to Efficiency.
E) the Three Principles to Effective Leadership.

Question 36

An example of a competitive strategy is

A) Hewlett-Packard offers larger discounts to students to compete against Dell Computers.
B) Sprint offers lower connection fees to compete against Verizon.
C) Ford Motor offers larger rebates and zero percent financing to compete against General Motors.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 37

Situation analysis allows the organization to examine

A) external factors only.
B) internal factors only.
C) the organization's top management only.
D) both external and internal factors.
E) None of the answer choices is correct.

Question 38

One issue considered in developing corporate strategies is

A) What business(es) are we in?
B) What direction are we going?
C) What resources do we have to implement our strategies?
D) What businesses are we in and what to do with those businesses?
E) None of the answer choices is correct.

Question 39

An organization's strategies should be designed so that they incorporate

A) opportunities and threats.
B) resources and capabilities.
C) only traditional values of past organizations.
D) opportunities, threats, resources, and capabilities.
E) None of the answer choices is correct.

Question 40

Situation analysis involves the process of

A) designing and choosing appropriate organizational strategies.
B) analyzing the current environment of the organization.
C) analyzing the external environment only.
D) evaluating the internal aspects of the organization.
E) None of the answer choices is correct.

Question 41

Mr. Smith has been summoned to the next No Leaks Plumbing's, a publicly-held company, Board of Directors' meeting to explain why his new delivery strategy has cost the company $10,000. This is an example of which of the following Board of Directors responsibilities?

A) Protecting the interests of the shareholders
B) Overseeing the company's management
C) Governing the organization's decisions and actions
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 42

Explain the components of effective strategic leadership.

Question 43

One strategic responsibility of managers and employees at other levels throughout the organization is

A) strategy implementation.
B) situation analysis.
C) strategy formulation.
D) developing the organization's vision.
E) None of the answer choices is correct.

Question 44

How are the three types of organizational strategies different?

Question 45

An important issue affecting strategic management in today's world is

A) globalization.
B) corporate governance.
C) e-business.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 46

Section 404 of the Sarbanes-Oxley Act deals with the establishment and auditing of

A) external financial controls.
B) internal financial controls.
C) appointment of the CEO.
D) appointment of Board members.
E) All of the answer choices are correct.

Question 47

In addition to expanding the role of board members, the Sarbanes-Oxley Act of 2002 also called for more disclosure and transparency of

A) the corporate vision.
B) the corporate mission.
C) financial information.
D) the balanced scorecard.
E) All of the answer choices are correct.

Question 48

How has the Sarbanes-Oxley Act of 2002 reformed corporate governance?

Question 49

All of the following roles are representative of effective strategic leadership except

A) establishing appropriately balanced controls.
B) checking inventory management.
C) exploiting and maintaining core competencies.
D) emphasizing ethical decisions and practices.
E) creating and sustaining strong organizational culture.

Question 50

The board of directors in an organization

A) plays a significant role in corporate governance.
B) is responsible for the implementation of the organization's operating activities.
C) serves in the role of executive management.
D) is not an important part of the organization's strategic development.
E) None of the answer choices is correct.

Question 51

Discuss the various roles of the board of directors.

Question 52

Aspects of a chief executive's role include

A) key decision maker.
B) visionary leader.
C) political actor.
D) strategy designer.
E) All of the answer choices are correct.

Question 53

Mr. Smith has been losing money on the free delivery of orders more than $1,000 and is determining if there are other ways to outcompete his largest competitor. Mr. Smith is at which of the following steps in the strategic management process?

A) Situation analysis
B) Strategy formulation
C) Strategy implementation
D) Strategy evaluation
E) Strategy reformulation

Question 54

Mr. Smith has decided to offer free delivery of orders more than $1,000 to outcompete his largest competitor. This strategy is an example of which of the following types of strategy?

A) Corporate strategy
B) Functional strategy
C) Competitive strategy
D) Operational strategy
E) Organizational strategy

Question 55

Describe the strategic management process. What does it mean to manage strategically?

Question 56

________ is the determination of the broad uses to which organizational resources will be deployed and the resolution of conflicts among the myriad of participants in organizations.

A) Vision
B) Mission
C) Corporate governance
D) Goals
E) Objectives

Question 57

Strategic management affects all organizational members. However, the only issue that differs among organizational members is

A) the stage of the strategic management process.
B) the scope of the individual's actions.
C) the development of the strategy.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 58

One of the issues that has increased the role of the board of directors is

A) legal mandates.
B) investor activism.
C) corporate strategy.
D) All of the answer choices are correct.
E) None of the answer choices is correct.

Question 59

The Sarbanes-Oxley Act of 2002 is a U.S. federal law designed to protect investors by improving the accuracy and reliability of

A) the corporate vision.
B) the corporate mission.
C) corporate disclosures.
D) the balanced scorecard.
E) All of the answer choices are correct.

Question 60

Which of the following is the first step Mr. Smith should complete when developing No Leaks Plumbing's strategic plan?

A) Situation analysis
B) Strategy formulation
C) Strategy implementation
D) Strategy evaluation
E) Strategy reformulation