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Strategic Management: A Competitive Advantage Approach, Approach, 14e (David) Chapter 1 The Nature of Strategic Management
62) The goal of strategic management is to A) achieve competitive advantage. B) maintain competitive advantage. C) achieve and maintain competitive advantage. D) eliminate competitive advantage. E) eliminate and abolish competitive advantage. 63) Strategic management focses on integrating management! """"""""! and information s#stems to achieve organi$ational sccess. A) mar%eting B) finance&acconting C) prodction&operations D) research and development E) all of the above 6') (hat can be defined as the art and science of formlating! implementing and evalating crossfnctional decisions that enable an organi$ation to achieve its ob*ectives+ A) Strateg# formlation B) Strateg# evalation C) Strateg# implementation D) Strategic management E) Strategic leading 6,) """""""" is sed to refer to strategic formlation! implementation and evalation! -ith """""""" referring onl# to strategic formlation. A) Strategic planning strategic management B) Strategic planning strategic processing C) Strategic management strategic planning D) Strategic management strategic processing E) Strategic implementation strategic focs
66) Dring -hat stage of strategic management are a firm/s specific internal strengths and -ea%nesses determined+ A) 0ormlation B) 1mplementation C) Evalation D) 0eedbac% E) oalsetting 6) An important activit# in """""""" is ta%ing corrective action. A) strateg# evalation B) strateg# implementation C) strateg# formlation 4 Cop#right 5 243 7earson Edcation! 1nc. pblishing as 7rentice 8all
D) strateg# leadership E) all of the above 69) (hat step in the strategic development process involves mobili$ing emplo#ees and managers to pt strategies into action+ A) Strateg# formlation B) Strateg# evalation C) Strateg# implementation D) Strategic advantage E) Competitive advantage 6:) (hat t#pes of s%ills are especiall# critical for sccessfl strateg# implementation+ A) 1nterpersonal B) ;ar%eting C) Technical D) Conceptal E) T a strateg#implementation activit#. A) Ta%ing corrective actions B) Establishing annal ob*ectives C) Devising policies D) Allocating resorces E) ;otivating emplo#ees 2) Strateg# evalation is necessar# becase A) internal and e?ternal factors are constantl# changing. B) the SEC re@ires strateg# evalation. C) sccess toda# is a garantee of sccess tomorro-. D) the 1S re@ires strateg# evalation. E) firms have limited resorces. 3) (hich statement best describes intition+ A) 1t represents the marginal factor in decisionma%ing. B) 1t represents a minor factor in decisionma%ing integrated -ith anal#sis. C) 1t shold be copled -ith anal#sis in decisionma%ing. D) 1t is better than anal#sis in decisionma%ing. E) 1t is management b# ignorance. ') """""""" and """""""" are e?ternal forces transforming bsiness and societ# toda#. 2 Cop#right 5 243 7earson Edcation! 1nc. pblishing as 7rentice 8all
A) >nline social net-or%ing strateg# B) >nline social net-or%ing high energ# prices C) Strateg# high energ# prices D) Corporate cltre sta%eholders E) Sta%eholders strateg# ,) An#thing that a firm does especiall# -ell compared to rival firms is referred to as A) competitive advantage. B) comparative disadvantage. C) opportnit# cost. D) nsstainable advantage. E) an e?ternal opportnit#. 6) At the start of 244 ;#space/s cstomer base -as """""""" million! -hile 0aceboo%/s base at the same time nmbered """""""" million. A) 9&4 B) 4&9 C) 9&, D) 3,&, E) ,&3, ) The fact that Apple has no manfactring facilities of its o-n A) has cased it to bild p massive debt on its balance sheet. B) has enabled it to remain financiall# lean -ith virtall# no longterm debt. C) has been problematic for Apple in terms of debt. D) illstrates that having more fi?ed assets than rival firms can provide ma*or competitive advantages in a global recession. E) means that it is in the same position as Son#. 9) """""""" allo-s firms to sell prodcts! advertise! prchase spplies! b#pass intermediaries! trac% inventor#! and eliminate paper-or%. A) Social net-or%ing B) Ecommerce C) Blogging D)
C) opening dramaticall# larger spercenters. D) operating stores -ith less s@are footage. E) ctting bac% on their online presence. 94) The one factor that has most significantl# impacted the n atre and core of b#ing and selling in nearl# all indstries has been A) the 1nternet. B) political borders. C) corporate greed. D) cstomer and emplo#ee focs. E) the government. Ans-er A 92) (hich individals are most responsible for the sccess and failre of an organi$ation+ A) Strategists B) 0inancial planners C) 7ersonnel directors D) Sta%eholders E) 8man resorce managers 93) The first step in strategic planning is generall# A) developing a vision statement. B) establishing goals and ob*ectives. C) ma%ing a profit. D) developing a mission statement. E) determining opportnities and threats. 9') (hat are endring statements of prpose that distingish one bsiness from other similar firms+ A) 7olicies B) ;ission statements C) >b*ectives D) les E) Emplo#ee condct gidelines 9,) An organi$ation/s vision statement A) is a constant reminder to its emplo#ees of -h# the organi$ation e?ists. B) broadl# charts the ftre direction of an organi$ation. C) addresses the basic @estion (hat is or bsiness+ D) ans-ers the @estion (hat do -e -ant to become+ E) none of the above 96) sall#! e?ternal opportnities and threats are A) ncontrollable b# a single organi$ation. B) controlled b# governments. C) not as important as internal strengths and -ea%nesses. D) %e# fnctions in strateg# implementation. ' Cop#right 5 243 7earson Edcation! 1nc. pblishing as 7rentice 8all
E) %e# fnctions in strateg# e?ploitation. 9) Specific reslts an organi$ation see%s to achieve in prsing its basic mission are A) strategies. B) rles. C) ob*ectives. D) policies. E) tenets. 99) 1nternal """""""" are activities in an organi$ation that are performed especiall# -ell. A) opportnities B) incompetencies C) strengths D) ob*ectives E) factors 9:) (hat are the means b# -hich longterm ob*ectives -ill be achieved+ A) Strategies B) Strengths C) (ea%nesses D) 7olicies E) >pportnities :) ongterm ob*ectives shold be all of the follo-ing EFCE7T A) measrable. B) continall# changing. C) reasonable. D) challenging. E) consistent. :4) Annal ob*ectives are especiall# important in strateg# A) redction. B) formlation. C) implementation. D) evalation. E) polic#. :2) 1n -hich phase of strategic management are longterm ob*ectives especiall# important+ A) 0ormlation B) Control C) Evalation D) 1mplementation E) ;anagement :3) (hat are gides to decision ma%ing+ A) a-s B) les , Cop#right 5 243 7earson Edcation! 1nc. pblishing as 7rentice 8all
C) 7olicies D) >b*ectives E) oals :') The strategicmanagement process A) occrs once a #ear. B) is a semiannal process. C) is a continos process. D) applies mostl# to companies -ith sales greater than G4 million. E) applies mostl# to small bsinesses. :,) (hich of the follo-ing is part of the strategic management model+ A) ;easre and evalate performance B) Develop mission and vision statements C) Establish longterm ob*ectives D) 1mplement strategies E) All of the above :6) Strategic management enables an organi$ation to """"""""! instead of *st responding to threats in its bsiness environment. A) be proactive B) be immne to threats C) avoid responsibilit# for shaping its ftre D) relin@ish control over its destin# E) be reactive :) The act of strengthening emplo#ees/ sense of effectiveness b# enco raging and re-arding them for participating in decisionma%ing and e?ercising initiative and imagination is referred to as A) athoritarianism. B) proaction. C) empo-erment. D) transformation. E) delegation. :9) 8o- do line managers become o-ners of the strateg#+ A) B# attending top manager meetings B) B# e?ecting plans formlated b# other people C) B# involvement in the strategicmanagement process D) B# becoming a shareholder of the firm E) B# b#ing off top managers ::) Annall#! """""""" bsinesses in the .S. fail. A) e?actl# 4 B) less than 4! C) abot 4! D) more than 4! 6 Cop#right 5 243 7earson Edcation! 1nc. pblishing as 7rentice 8all
E) almost 4 million 4) According to research! organi$ations sing strategic management are """""""" than those that do not. A) more profitable B) more comple? C) less profitable D) less sccessfl E) less comple? 44) According to reenle#! strategic management offers all of these benefits EFCE7T A) it provides an ob*ective vie- of management problems. B) it creates a frame-or% for internal commnication among pe rsonnel. C) it encorages a favorable attitde to-ard change. D) it ma?imi$es the effects of adverse conditions and changes. E) it gives a degree of discipline and formalit# to the management of a bsiness. 42) (hich of the follo-ing is =>T a reason given for poor or no strategic planning in an organi$ation+ A) (aste of time B) Being content -ith sccess C) 0irefighting D) 7oor re-ard strctres E) Trst of management 43) All of these are pitfalls an organi$ation shold avoid in strategic planning EFCE7T A) sing plans as a standard for measring performance. B) sing strategic planning to gain control over decisions and resorces. C) failing to involve %e# emplo#ees in all phases of planning. D) too hastil# moving from mission development to strateg# formlation. E) being so formal in planning that fle?ibilit# and creativit# are stifled. 4') (hich of the follo-ing is =>T a pitfall an organi$ation shold avoid in strategic planning+ A) 0ailing to commnicate the plan to emplo#ees B) 1nvolving all managers rather than delegating planning to a planner C) Top managers not activel# spporting the strategic planning process D) Doing strategic planning onl# to satisf# accreditation or reglator# re@irements E) 0ailing to create a collaborative climate spportive of change 4,) (hich of the follo-ing statements is =>T tre+ A) >penmindedness is an important gideline for effective strategic management. B) Strategic management mst become a selfperpetating breacratic mechan ism. C) =o organi$ation has nlimited resorces. D) Strategic decisions re@ire tradeoffs. E) Strategic management mst be a selfreflective learning process. 46) All of the follo-ing are gidelines for effective strategic planning EFCE7T Cop#right 5 243 7earson Edcation! 1nc. pblishing as 7rentice 8all
A) it shold be simple and nonrotine. B) it shold be a learning process for all managers and emplo#ees. C) it shold be a paper process more than a people process. D) it shold not disregard @alitative information. E) it shold not be a formal s#stem for control. 4) (hat is =>T a gideline given for effective strategic planning+ A) Continall# strengthen the good ethics is good bsiness polic#. B) 1t shold not inclde *argon or arcane planning langage. C) 1t shold not be too formal! predictable! or rigid. D) 1t shold -elcome bad ne-s. E) 1t shold be controlled b# technicians. 49) (hich of the follo-ing statements is false+ A) =o organi$ation can prse all the strategies that potentiall# cold benefit the firm. B) ;ost organi$ations toda# recogni$e that strategicmanagement concepts and techni@es can enhance the effectiveness of decisions. C) A %e# role of strategists is to facilitate continos organi$ational learning an d change. D) Effective strategic planning shold accept the assmptions nderl#ing the crrent corporate strateg#. E) Even the most technicall# perfect strategic plan -ill serve little prpose if it is not implemented. 4:) Terms sch as objectives! mission! strengths! and weaknesses -ere first formlated to address problems A) on the battlefield. B) in the boardroom. C) on the trading floor. D) in the militar# hierarch#. E) in interpersonal relationships. 44) According to Webster's New World Dictionary! """""""" is the science of planning and directing largescale militar# operations! of manevering forces into the most advantageos position prior to actal engagement -ith the enem#. A) competitive advantage B) -ar C) strateg# D) formlation E) bsiness 444) Bsiness or militar# sccess is A) generall# the happ# reslt of accidental strategies. B) ndermined b# the element of srprise. C) the prodct of both attention to changing e?ternal and internal conditions and the insightfl adaptations to those conditions. D) nrelated to e?ternal conditions. E) none of the above. 9 Cop#right 5 243 7earson Edcation! 1nc. pblishing as 7rentice 8all
442) Sperior strateg# formlation and implementation """""""" an opponent/s speriorit# in nmbers and resorces. A) are irrelevant to B) are not enogh to srmont C) can overcome D) can lead to E) nite 443) A strong """""""" heritage nderlies the std# of strategic management. A) militar# B) government C) political D) social E) cltral 44') ;ilitar# strateg# is based on an assmption of """"""""! -hereas bsiness strateg# is based on an assmption of """""""". A) conflict cooperation B) conflict competition C) cooperation conflict D) competition conflict E) cooperation competition 44,) Both bsiness and militar# organi$ations mst """""""" and """""""" to be sccessfl. A) be impervios to change continall# improve B) adapt to change continall# improve C) shn change sta# the corse D) be impervios to change sta# the corse E) none of the above 446) The strategicmanagement process is becoming more -idel# sed b# A) small firms. B) nonprofit instittions. C) governmental organi$ations. D) mltinational conglomerates. E) all of the above 44) >rgani$ations shold ta%e aHn) """""""" approach in their indstr#. A) adversarial rather than a collegial B) collegial rather than an adversarial C) reactive rather than a proactive D) proactive rather than a reactive E) cooperative rather than a competitive 449) The strategicmanagement process represents aHn) """"""""! """"""""! and "" """""" approach for determining an enterprise/s ftre direction. : Cop#right 5 243 7earson Edcation! 1nc. pblishing as 7rentice 8all
A) logical s#stematic sb*ective B) intitive disorgani$ed sb*ective C) logical s#stematic ob*ective D) intitive disorgani$ed ob*ective E) inconsistent s#stematic sb*ective
