Question 1

The assessment of the external and internal environments is called _______ analysis.
A)SWOT analysis
B)Competitive
C)Industry
D)Market
E)Strategic

Accepted Answer

The keys are to attempt to forecast fundamental industry changes and stay in a proactive mode rather than a reactive one.This assessment of the external and internal environments is known as the SWOT analysis (strengths, weaknesses, opportunities, and threats).

Question 2

Which of the following is the correct order for the strategic management process?
A)Strategies, mission, goals, projects
B)Goals, projects, mission, strategies
C)Mission, goals, strategies, projects
D)Goals, mission, strategies, projects
E)Projects, mission, strategies, goals

Accepted Answer

The correct order for the strategic management process is mission, goals, strategies, and projects. First, a company must establish its mission statement, which outlines its purpose and values. Then, goals are set to achieve that mission, followed by the development of strategies to reach those goals. Finally, projects are identified and implemented to execute those strategies.

Question 3

Which of the following is a main reason why project managers need to understand their organization's mission and strategy?
A)They can better focus on the immediate customer
B)They can make appropriate decisions and adjustments
C)So they can be effective project advocates
D)Both B and C are correct
E)A, B, and C are all correct

Accepted Answer

There are two main reasons why project managers need to understand their organization's mission and strategy.The first reason is so they can make appropriate decisions and adjustments.For example, how a project manager would respond to a suggestion to modify the design of a product to enhance performance will vary depending upon whether his company strives to be a product leader through innovation or to achieve operational excellence through low cost solutions.The second reason project managers need to understand their organization's strategy is so that they can be effective project advocates.Project managers have to be able to demonstrate to senior management how their project contributes to their firm's mission.

Question 4

Which of the following would not be classified as an organizational opportunity?
A)Increasing product demand
B)Excellent employees
C)Emerging markets
D)demographics
E)All of these are organizational opportunities

Accepted Answer

Typical opportunities are increasing demand, emerging markets, and demographics.Managers or individual firms have limited opportunities to influence such external environmental factors; however, in recent years notable exceptions have been new technologies such as Apple using the iPod to create a market to sell music.

Question 5

Which of the follow is not one of the commonly heard comments of project managers?
A)Where did this project come from?
B)Why are we doing this project?
C)How can all these projects be first priority?
D)Why is this project so strongly linked to the strategic plan?
E)Where are we going to get the resources to do this project?

Accepted Answer

Ample evidence still suggests that many organizations have not developed a process that clearly aligns project selection to the strategic plan.

Question 6

The textbook indicated that ________ is the major dimension of strategic management.
A)Responding to changes in the external market
B)Allocating scarce resources of the organization
C)Beating competition to the market
D)Both a and b are correct
E)Both a and c are correct

Accepted Answer

Two major dimensions of strategic management are responding to changes in the external environment and allocating scarce resources of the firm to improve its competitive position.

Question 7

Which of the following is not one of the requirements for successful implementation of strategies through projects?
A)Allocation of resources
B)Prioritizing of projects
C)Motivation of project contributors
D)Adequate planning and control systems
E)All of these are requirements

Accepted Answer

First, completing tasks requires allocation of resources.Resources typically represent funds, people, management talents, technological skills, and equipment.Frequently, implementation of projects is treated as an "addendum" rather than an integral part of the strategic management process.However, multiple objectives place conflicting demands on organizational resources.Second, implementation requires a formal and informal organization that complements and supports strategy and projects.Authority, responsibility, and performance all depend on organization structure and culture.Third, planning and control systems must be in place to be certain project activities necessary to ensure strategies are effectively performed.Fourth, motivating project contributors will be a major factor for achieving project success.Finally, an area receiving more attention in recent years is prioritizing projects.

Question 8

The intended outcome of strategy/projects integration is
A)Clear organization focus
B)Best use of scare organization resources
C)Improved communication across projects and departments
D)Both A and C are correct
E)A, B, and C are all correct

Accepted Answer

A generic methodology that ensures integration by creating very strong linkages of project selection and priority to the strategic plan is then discussed.The intended outcomes are clear organization focus, best use of scarce organization resources (people, equipment, capital), and improved communication across projects and departments.

Question 9

Susie's department is implementing many projects.She finds herself starting and stopping work on one task to go and work on another task, and then return to the work on the original task.Susie is experiencing
A)Poor scheduling
B)Excess work burden
C)Flexible tasking
D)Multitasking
E)Burnout

Accepted Answer

Resource sharing also leads to multitasking.Multitasking involves starting and stopping work on one task to go and work on another project, and then returning to the work on the original task.People working on several tasks concurrently are far less efficient, especially where conceptual or physical shutdown and startup are significant.

Question 10

Which of the following is not one of the characteristics of effective objectives?
A)Realistic
B)Assignable
C)Flexible
D)Specific
E)Measurable

Accepted Answer

Flexibility is not a characteristic of effective objectives. Effective objectives are specific, measurable, assignable, realistic, and time-bound. Flexibility refers to the ability to adapt or change, which can create ambiguity in objectives and hinder progress towards achieving them. Therefore, it is not considered a characteristic of effective objectives.

Question 11

Strategy formulation includes which of the following activities?
A)Determining alternatives
B)Creating profitability targets
C)Evaluating alternatives
D)Both a and c are correct
E)A, B, and C are all correct

Accepted Answer

Strategy formulation includes determining and evaluating alternatives that support the organization's objectives and selecting the best alternative.

Question 12

A critical factor to ensure the success of integrating the strategic plan with projects lies in a process that
A)Is open and published for all participants to review
B)Starts with top management's directives
C)With projects first and integrates them with the strategic plan
D)Both B and C are correct
E)A, B, and C are all correct

Accepted Answer

A crucial factor to ensure the success of integrating the plan with projects lies in the creation of a process that is open and transparent for all participants to review.

Question 13

Which of the following is not one of the traditional components found in mission statements?
A)Major products and services
B)Profitability
C)Target customers and markets
D)Geographic domain
E)Contribution to society

Accepted Answer

Traditional components found in mission statements are major products and services, target customers and markets, and geographical domain.In addition, statements frequently include organizational philosophy, key technologies, public image, and contribution to society.

Question 14

Which of the following terms is often used to denote a project that a powerful, high-ranking official is advocating?
A)Sacred cow
B)Pet project
C)Political necessity
D)Special undertaking
E)Strategic ploy

Accepted Answer

The term "sacred cow" is often used to denote a project that a powerful, high-ranking official is advocating.

Question 15

Strategy considered to be under purview of senior management is
A)Old school thinking
B)A new school of management thought
C)Necessary in a company structure
D)Beneficial to the Project Manager
E)Depended on company goals

Accepted Answer

Project management historically has been preoccupied solely with the planning and execution of projects.Strategy was considered to be under the purview of senior management.This is old-school thinking.

Question 16

Which of the following is not true for strategic management?
A)It should be done once each year just before developing the operating plan
B)It supports consistency of action at every level of the organization
C)It develops an integrated and coordinated long-term plan of action
D)It positions the firm to meet the needs of its customers
E)All of these are true statements

Accepted Answer

Two major dimensions of strategic management are responding to changes in the external environment and allocating scarce resources of the firm to improve its competitive position.Constant scanning of the external environment for changes is a major requirement for survival in a dynamic competitive environment.

Question 17

In today's business environment, project managers find it valuable to have a keen understanding of
A)Strategic management
B)Technical issues
C)Project selection process
D)Both A and C are correct
E)A, B, and C are all correct

Accepted Answer

Project managers need to understand their organization's strategy is so that they can be effective project advocates.Project managers have to be able to demonstrate to senior management how their project contributes to their firm's mission.Protection and continued support come from being aligned with corporate objectives.Project managers also need to be able to explain to team members and other stakeholders why certain project objectives and priorities are critical.This is essential for getting buy-in on contentious trade-off decisions.For these reasons project managers will find it valuable to have a keen understanding of strategic management and project selection processes.

Question 18

Which of the following questions does the organization's mission statement answer?
A)What are our long-term strategies?
B)What are our long-term goals and objectives?
C)How do we operate in the existing environment?
D)What do we want to become?
E)All of these are answered by the mission statement

Accepted Answer

The mission identifies "what we want to become," or the raison d'être.Mission statements identify the scope of the organization in terms of its product or service.

Question 19

Which of the following would not be classified as an organizational threat?
A)Slowing of the economy
B)A maturing life cycle
C)Poor product quality
D)Government regulations
E)All of these are organizational threats

Accepted Answer

Examples of perceived external threats could be a slowing of the economy, a maturing life cycle, exchange rates, or government regulation.

Question 20

Project managers who do not understand the role that their project plays in accomplishing the organization's strategy tend to make all the following mistakes except:
A)Focusing on low priority problems
B)Overemphasizing technology as an end in and of itself
C)Focusing on the immediate customer
D)Trying to solve every customer issue
E)All the above are likely mistakes

Accepted Answer

All the listed mistakes are common for project managers who lack understanding of the organization's strategy, so none of them is an exception.

Quiz 2: Organization Strategy and Project Selection

The assessment of the external and internal environments is called _______ analysis.

Which of the following is the correct order for the strategic management process?

Which of the following is a main reason why project managers need to understand their organization's mission and strategy?

Which of the following would not be classified as an organizational opportunity?

Which of the follow is not one of the commonly heard comments of project managers?

The textbook indicated that ________ is the major dimension of strategic management.

Which of the following is not one of the requirements for successful implementation of strategies through projects?

The intended outcome of strategy/projects integration is

Susie's department is implementing many projects.She finds herself starting and stopping work on one task to go and work on another task, and then return to the work on the original task.Susie is experiencing

Which of the following is not one of the characteristics of effective objectives?

Strategy formulation includes which of the following activities?

A critical factor to ensure the success of integrating the strategic plan with projects lies in a process that

Which of the following is not one of the traditional components found in mission statements?

Which of the following terms is often used to denote a project that a powerful, high-ranking official is advocating?

Strategy considered to be under purview of senior management is

Which of the following is not true for strategic management?

In today's business environment, project managers find it valuable to have a keen understanding of

Which of the following questions does the organization's mission statement answer?

Which of the following would not be classified as an organizational threat?

Project managers who do not understand the role that their project plays in accomplishing the organization's strategy tend to make all the following mistakes except: