Question 1

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

Accepted Answer

Strategy formulation is primarily the responsibility of top management, although input from other levels can be valuable.

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.

Accepted Answer

This statement accurately defines an organization's strategy, making it true.

Question 3

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

Accepted Answer

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

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?"

Accepted Answer

Business strategies focus on how to compete successfully in particular markets, while corporate strategies address the broader question of which businesses to be in.

Question 5

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

Accepted Answer

The Surprise Principle of War emphasizes on the importance of attacking the enemy at an unexpected time or location to gain an advantage in battle.

Question 6

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

Accepted Answer

Strategy implementation is the process of putting a chosen strategy into action to achieve the organization's goals, not the evaluation of the strategy's implementation or outcomes.

Question 7

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

Accepted Answer

While goals are an important part of strategy, strategy involves much more than simply examining an organization's goals. Strategy also involves analyzing the organization's environment, identifying strengths and weaknesses, developing a plan of action, and making decisions that will help the organization achieve its 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.

Accepted Answer

The statement "single approaches to strategy development are superior to multiple approaches" is not true, as different situations may require different approaches to strategy development. Therefore, all other options are valid bases for understanding strategic management.

Question 9

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

Accepted Answer

A situation analysis is the first step in the sequential strategic management process as it helps the organization to identify internal and external factors that will impact their strategic decisions.

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.

Accepted Answer

All the options (A, B, C, D) are indeed features of strategic management. Strategic management is interdisciplinary, incorporating knowledge and inputs from various fields such as economics, sociology, and psychology. It has both an external focus, considering the competitive environment and market trends, and an internal focus, assessing the organization's resources and capabilities. It also involves setting a future direction for the organization through planning and goal setting.

Question 11

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

Accepted Answer

The CEO is responsible for setting the strategic direction of the company and ensuring its overall success.

Question 12

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

Accepted Answer

A strategy involves a comprehensive plan or set of actions designed to achieve long-term goals, whereas a simple action is typically a single, isolated activity without broader strategic intent.

Question 13

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

Accepted Answer

Developing a strategy from a single approach can limit creativity and overlook potential opportunities and risks. It is important to consider multiple approaches and perspectives in order to create a comprehensive and effective strategy.

Question 14

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

Accepted Answer

The members of a company's board of directors have a fiduciary duty to act in the best interests of shareholders and represent their interests. This includes making decisions that maximize shareholder value and ensuring that resources are not misused or wasted. Failure to meet this obligation can result in legal action against the board members or the company itself.

Question 15

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

Accepted Answer

The statement accurately describes how changes in legal mandates, investor activism, and corporate strategy have impacted the roles of many boards in strategic management.

Question 16

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

Accepted Answer

The answer of Functional strategies are the goal-directed plans and...

Question 17

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

Accepted Answer

Strategic management involves setting goals, analyzing the internal and external environment, formulating and implementing strategies, and continuously monitoring and adapting them. This process helps companies to align their resources and activities towards achieving their objectives, leading to higher levels of performance. Research has shown that companies that use strategic management practices tend to outperform those that do not.

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.

Accepted Answer

Strategic management involves a continuous process of analyzing the current situation, developing appropriate strategies, implementing those strategies, and evaluating and changing them as needed. Therefore, 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?

Accepted Answer

The most basic questions in strategy revolve around understanding the reasons behind the success or failure of firms and the factors contributing to their varying levels of performance. These questions are fundamental as they address the core of strategic management, which is to analyze and determine the reasons behind different outcomes in business performance.

Question 20

Preparation of strategic plans are a typical board responsibility.

Accepted Answer

Strategic plan preparation is typically a management responsibility, although the board often plays a key role in reviewing, approving, and providing input on the strategic direction.

Quiz 1: Introducing the Concepts

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

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.

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

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?"

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

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

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

Bases for understanding strategic management are all of the following except

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

The following are all features of strategic management except

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

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

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

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

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

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

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

Strategic management is defined as

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

Preparation of strategic plans are a typical board responsibility.