Test Bank for Concepts in Strategic Management and Business Policy 14th Edition by Wheelen

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Test Bank for Concepts in Strategic Management and Business Policy 14th Edition by Wheelen Complete downloadable file at: https://testbanku.eu/Test-Bank-for-Concepts-in-Strategic-Management-and-BusinessPolic-!"th-#dition-b-$heelen 1) Strategic management is the set of managerial manage rial decisions that determines the short-term performance of a corporation. Answer: FALSE Difficulty: Easy hapter !"#ecti$e: %nderstand the "enefits of strategic management

&) 'n the e(ternally oriented planning phase plans are de$eloped "y hea$ily in$ol$ing the input of managers from lower le$els. Answer: FALSE Difficulty: *oderate hapter !"#ecti$e: %nderstand the "enefits of strategic management +) ,eneral Electric led the transition from strategic planning to strategic management during the 1/s. Answer: 0%E Difficulty: Easy hapter !"#ecti$e: %nderstand the "enefits of strategic management 2) !ne of the "enefits of strategic management is a clearer sense of strategic $ision for the firm. Answer: 0%E Difficulty: *oderate hapter !"#ecti$e: %nderstand the "enefits of strategic management 3) 0o 0o "e effecti$e strategic management must "e a formal process. Answer: FALSE Difficulty: Difficult hapter !"#ecti$e: %nderstand the "enefits of strategic management 4) ,lo"ali5ation is the integrated internationali5ation of mar6ets and corporations. Answer: 0%E Difficulty: Easy hapter !"#ecti$e: E(plain how glo"ali5ation and en$ironmental sustaina"ility influence strategic management 7) As more industries "ecome glo"al strategic management is "ecoming less important in positioning a company for long-term competiti$e ad$antage. Answer: FALSE Difficulty: *oderate hapter !"#ecti$e: E(plain how glo"ali5ation and en$ironmental sustaina"ility influence strategic management ) Sustaina"ility reflects "usiness practices to manage the firm8s triple "ottom line. Answer: 0%E 1 opyright 9 &/13 earson Education 'nc.


Difficulty: *oderate hapter !"#ecti$e: E(plain how glo"ali5ation and en$ironmental sustaina"ility influence strategic management AAS;: Ethical %nderstanding %nderstanding and easoning ) !ne mem"er of the European %nion nowing a company is mindful of its impact on the en$ironment seldom changes consumer "uying ha"its. Answer: FALSE Difficulty: *oderate hapter !"#ecti$e: E(plain how glo"ali5ation and en$ironmental sustaina"ility influence strategic management 1+) A ,allop study reported that companies that focused on "usiness sustaina"ility had +. +.  times the ES growth rates as compared to organi5ations that did not focus on "usiness sustaina"ility. sustaina"ility. Answer: 0%E Difficulty: Difficult hapter !"#ecti$e: E(plain how glo"ali5ation and en$ironmental sustaina"ility influence strategic management 12) opulation ecology is a theory that proposes organi5ations can and do adapt to change "y imitating other successful organi5ations. o rgani5ations. Answer: FALSE Difficulty: Easy hapter !"#ecti$e: E(plain how glo"ali5ation and en$ironmental sustaina"ility influence strategic management & opyright 9 &/13 earson Education 'nc.


13) According to organi5ational learning theory an organi5ation uses 6nowledge to impro$e the fit "etween itself and its en$ironment. Answer: 0%E Difficulty: *oderate hapter !"#ecti$e: E(plain how glo"ali5ation and en$ironmental sustaina"ility influence strategic management 14) Strategic fle(i"ility is the a"ility to shift from one dominant strategy to another. another. Answer: 0%E Difficulty: Easy hapter !"#ecti$e: E(plain how glo"ali5ation and en$ironmental sustaina"ility influence strategic management 17) !ne tenet of the learning organi5ation is to maintain sta"ility. Answer: FALSE Difficulty: *oderate hapter !"#ecti$e: E(plain how glo"ali5ation and en$ironmental sustaina"ility influence strategic management 1) 0he internal en$ironment includes the $aria"les that are within the short-run control of top management. Answer: FALSE Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components 1) A "road mission statement may limit the scope of a firm8s acti$ities in terms of the product or ser$ice offered. Answer: FALSE Difficulty: Difficult Learning !"#.: Discuss the function function of $ision statements statements mission statements and long-term hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components AAS;: Application of >nowledge &/) An e(ample of an o"#ecti$e is ?increased profita"ility? profita"ility? while an e(ample of o f a goal is ?to increase the firm8s profita"ility in &/1/ "y 13@ o$er &//.? Answer: FALSE Difficulty: Difficult hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components AAS;: Application of >nowledge &1) A strategy ma(imi5es competiti$e ad$antage and minimi5es competiti$e disad$antage. Answer: 0%E Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components &&) orporate strategy occurs at the "usiness unit or product le$el. Answer: FALSE + opyright 9 &/13 earson Education 'nc.


Difficulty: Easy hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components &+) A functional strategy may include competiti$e or cooperati$e strategies. Answer: FALSE Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components

&2) A hierarchy of strategy emphasi5es the need for the three le$els of strategy to complement and support one another. another. Answer: 0%E Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components &3) A "udget is a statement of a corporation8s programs in terms of dollars. do llars. Answer: 0%E Difficulty: Easy hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components &4) erformance results are monitored at the strategy formulation phase of the strategic management process. Answer: FALSE Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components &7) enry *int5"erg disco$ered that strategic formulation is a regular continuous process. Answer: FALSE Difficulty: *oderate hapter !"#ecti$e: 'dentify some common triggering e$ents that act a s stimuli for strategic change &) unctuated eBuili"rium descri"es organi5ations as e$ol$ing through relati$ely long periods of sta"ility punctuated "y relati$ely short "ursts of fundamental change. Answer: 0%E Difficulty: Difficult hapter !"#ecti$e: 'dentify some common triggering e$ents that act a s stimuli for strategic change &) A strategic decision is rare conseBuential conseBuen tial and directi$e. Answer: 0%E Difficulty: *oderate hapter !"#ecti$e: %nderstand strategic decision-ma6ing modes

+/) *int5"erg8s entrepreneurial mode is sometimes referred to as ?muddling through? since this decision- ma6ing mode tends to "e more reacti$e than proacti$e in the search for new opportunities. 2 opyright 9 &/13 earson Education 'nc.


Answer: FALSE Difficulty: Difficult hapter !"#ecti$e: %nderstand strategic decision-ma6ing modes +1) Logical incrementalism is a useful decision-ma6ing mode when the en$ironment is rapidly changing and when it is important to "uild consensus. Answer: 0%E Difficulty: Difficult hapter !"#ecti$e: %nderstand strategic decision-ma6ing modes AAS;: eflecti$e 0hin6ing +&) Chile the strategic audit is not an all-inclusi$e list it presents many of the critical Buestions needed for a detailed strategic analysis of any "usiness. Answer: 0%E Difficulty: Easy hapter !"#ecti$e: %se the strategic audit as a method of analy5ing corporate functions and acti$ities

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++) 0he emphasis of strategic management is on A) monitoring and e$aluating e(ternal opportunities and threats in light of a corporation8s strengths and wea6nesses. ;) first line managers. ) the short-run performance of the corporation. D) an e(amination of the organi5ation8s internal en$ironment. E) an in$estigation of competitor actions. Answer: A Difficulty: Easy hapter !"#ecti$e: %nderstand the "enefits of strategic management +2) esearch suggests that strategic management e$ol$es through four seBuential phases in corporations. 0he first phase is A) e(ternally oriented planning. ;) "asic financial planning. ) internally oriented planning. D) forecast-"ased planning. E) strategic management. Answer: ; Difficulty: Easy hapter !"#ecti$e: %nderstand the "enefits of strategic management +3) 0he time hori5on in$ol$ed with regard to "asic financial planning is usually A) one year. ;) one Buarter. ) more than fi$e years. D) less than one month. E) more than three years. Answer: A Difficulty: Easy hapter !"#ecti$e: %nderstand the "enefits of strategic management +4) A difference "etween "asic financial planning and forecast-"ased planning is A) the time hori5on is shorter in forecast-"ased planning. ;) forecast-"ased planning incorporates internal and e(ternal information. ) "asic financial planning utili5es consultants with sophisticated techniBues. D) "asic financial planning utili5es scenarios and contingency strategies. E) "asic financial planning relies hea$ily on input from lower le$els in the organi5ation. Answer: ; Difficulty: *oderate hapter !"#ecti$e: %nderstand the "enefits of strategic management



+7) 0op-down 0op-down planning that emphasi5es formal strategy formulation and lea$es the implementation issues to lower management le$els is 6nown as A) forecast-"ased planning. ;) e(ternally oriented planning. ) strategic management. D) "asic financial planning. E) none of the a"o$e Answer: ; Difficulty: *oderate hapter !"#ecti$e: %nderstand the "enefits of strategic management +) 'n the final phase of strategic management strategic information is a$aila"le to A) people throughout the organi5ation. ;) the top management responsi"le for decision ma6ing. ) middle management. D) operational personnel. E) only those responsi"le for implementing the strategy. Answer: A Difficulty: *oderate hapter !"#ecti$e: %nderstand the "enefits of strategic management +) 'n a sur$ey of 3/ corporations which of the following was rated as a "enefit of strategic management A) clearer sense of $ision for the firm ;) higher le$els of employee moti$ation ) higher le$els of #o" satisfaction D) impro$ed producti$ity E) lower employee turno$er Answer: A Difficulty: *oderate hapter !"#ecti$e: %nderstand the "enefits of strategic management 2/) Chen an organi5ation is e$aluating its strategic position which is =!0 one of the strategic Buestions that an organi5ation may as6 itself A) Chere is the organi5ation now ;) Are we a socially responsi"le firm ) 'f no changes are made where will the organi5ation "e in one year D) 'f the e$aluation is negati$e what specific ac tions should management ta6e E) 'f no changes are made where will the organi5ation "e in 1/ years Answer: ; Difficulty: *oderate hapter !"#ecti$e: %nderstand the "enefits of strategic management



21) esearch of the planning practices of companies in the oil industry concludes that the real $alue of modern strategic planning is more A) in the planning. ;) in the strategic thin6ing and organi5ational learning. ) in the resulting written strategic plan. D) in the formality of the process. E) in the impro$ed communication within the organi5ation. Answer: ; Difficulty: Difficult hapter !"#ecti$e: %nderstand the "enefits of strategic management 2&) Strategic planning within a small organi5ation A) may "e informal and irregular. ;) must "e ela"orate to allow for future growth. ) should always "e formali5ed and e(plicitly e( plicitly stated. D) should "e done "y the president only. E) is unnecessary and a waste of o f time. Answer: A Difficulty: *oderate hapter !"#ecti$e: %nderstand the "enefits of strategic management 2+) Strategic planning in a multidi$isional corporation A) should "e informal to allow complete understanding "y the many participants. ;) should "e instigated only from the main corporate office. ) should "e accomplished Buic6ly to decrease the li6elihood of it "ecoming outdated. D) should encourage a clear delineation "etween top management and lower-le$el managers. E) should "e a formali5ed and sophisticated system. Answer: E Difficulty: *oderate hapter !"#ecti$e: %nderstand the "enefits of strategic management 22) 0he integrated internationali5ation of mar6ets and corporations is called A) normali5ation. ;) economic integration. ) glo"ali5ation. D) nationali5ation. E) regionali5ation. Answer:  Difficulty: Easy hapter !"#ecti$e: E(plain how glo"ali5ation and en$ironmental sustaina"ility influence strategic management 23) !ne of the "enefits of glo"ali5ation is A) economies of scale. ;) decreased outsourcing. ) increased union negotiations. D) increased ta(es.  opyright 9 &/13 earson Education 'nc.


E) additional human resource training. Answer: A Difficulty: *oderate hapter !"#ecti$e: E(plain how glo"ali5ation and en$ironmental sustaina"ility influence strategic management 24) 0he regional trade association composed of Argentina ;ra5il %ruguay and araguay is called A) E%. ;) ASEA=. ) =AF0A. D) *ercosur. E) A;% A; %.. Answer: D Difficulty: Easy hapter !"#ecti$e: E(plain how glo"ali5ation and en$ironmental sustaina"ility influence strategic management 27) *em"ers of the European %nion

E) pound. Answer:  Difficulty: Easy hapter !"#ecti$e: E(plain how glo"ali5ation and en$ironmental sustaina"ility influence strategic management

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3/) 0he triple "ottom line refers to which of the following A) water air and oil. ;) footprints finance and en$ironment. ) physical en$ironment traditional profitloss and air. D) traditional profitloss social responsi"ility responsi"ility and en$ironmental responsi"ility. responsi"ility. E) social responsi"ility responsi"ility people and ethics. Answer: D Difficulty: Difficult hapter !"#ecti$e: E(plain how glo"ali5ation and en$ironmental sustaina"ility influence strategic management

31) Chich theory proposes that once an organi5ation is successfully esta"lished in a particular en$ironmental niche it is una"le to adapt adap t to changing conditions A) population ecology ;) institution ) citi5enship D) strategic choice E) organi5ational learning Answer: A Difficulty: *oderate hapter !"#ecti$e: E(plain how glo"ali5ation and en$ironmental sustaina"ility influence strategic management 3&) 0he theory that proposes organi5ations can and d o adapt to changing conditions c onditions "y imitating other successful organi5ations is 6nown as A) population ecology e cology.. ;) institution theory. theory. ) citi5enship theory. theory. D) strategic theory. E) sample theory. Answer: ; Difficulty: *oderate hapter !"#ecti$e: E(plain how glo"ali5ation and en$ironmental sustaina"ility influence strategic management 3+) 0he a"ility of an organi5ation to reshape its en$ironment is descri"ed " y A) population ecology theory. theory. ;) institution theory. theory. ) the strategic choice perspecti$e. D) organi5ational learning theory. theory. E) organi5ational citi5enship theory. Answer:  Difficulty: *oderate hapter !"#ecti$e: E(plain how glo"ali5ation and en$ironmental sustaina"ility influence strategic management 11 opyright 9 &/13 earson Education 'nc.


32) 0he a"ility of a corporation to shift from one dominant strategy to another is called A) strategy implementation. ;) chaos formulation. ) contingency management. D) logical incrementalism. E) strategic fle(i"ility. Answer: E Difficulty: *oderate hapter !"#ecti$e: E(plain how glo"ali5ation and en$ironmental sustaina"ility influence strategic management 33) An organi5ation organi5ation s6illed at creating acBuiring and transferring 6nowledge and at modifying its "eha$ior to reflect new 6nowledge and an d insights is a

3) Strategic management is that set of managerial decisions and actions that determine the longrun performance of a corporation. Chich one of the following is =!0 one of the "asic elements of the strategic management process A) strategy formulation ;) strategy implementation ) statistical process control D) e$aluation and control E) en$ironmental scanning Answer:  Difficulty: Easy hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components

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3) 0he monitoring e$aluating and disseminating of information from the e(ternal and internal en$ironments to 6ey people within the corporation is referred to as A) en$ironmental scanning. ;) e(ternal scanning. ) internal scanning. D) strategy formulation. E) strategy implementation. Answer: A Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components 4/) 0he S in SC!0 stands for A) strategies. ;) scanning. ) strengths. D) societal. E) sociocultural. Answer:  Difficulty: Easy hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components 41) 0he 0 in SC!0 stands for A) trust. ;) technical. ) terminal. D) threats. E) tas6. Answer: D Difficulty: Easy hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components 4&) 0he $aria"les structure culture and resources pertain to the A) e(ternal en$ironment. ;) internal en$ironment. ) sociocultural forces. D) tas6 en$ironment. E) societal en$ironment. Answer: ; Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components



4+) 0he tas6 en$ironment A) includes those elements or groups within an organi5ation8s industry industry.. ;) encompasses the physical wor6ing areas of the organi5ation. ) is an accounting of the many #o"s within an organi5ation. D) is an ad$isory committee to top-management. E) includes general forces that only indirectly affect an organi5ation8s acti$ities. Answer: A Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components

42) Chich one of the following is included in the firm8s societal en$ironment A) competitors ;) economic forces ) resources D) go$ernments E) special interest groups Answer: ; Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components 43) Chich one of the following is included in the firm8s tas6 en$ironment A) technological factors ;) sociocultural factors ) economic factors D) stoc6holders E) political-legal forces Answer: D Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components

44) 0he Strategic *anagement *odel presents the following process of strategy formulation: A) !"#ecti$es G olicies G Strategies G *ission. ;) *ission G olicies G Strategies S trategies G !"#ecti$es. ) olicies G *ission G Strategies S trategies G !"#ecti$es. D) olicies G Strategies G !"#ecti$es G *ission. E) *ission G !"#ecti$es G Strategies S trategies G olicies. Answer: E Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components



47) 0he de$elopment of long-range plans for the effecti$e management of en$ironmental opportunities and threats in light of corporate strengths and wea6nesses is 6n own as A) strategy formulation. ;) strategy implementation. ) strategy control. D) strategy de$elopment. E) strategy e$aluation. Answer: A Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components 4) 0he corporate mission is "est descri"ed "y which one of the following A) a description of the acti$ities carried out "y the organi5ation ;) the purpose or reason for the corporation8s e(istence ) a description of top management8s responsi"ilities D) a statement of corporate o"#ecti$es E) a statement of what the organi5ation would li6e to "ecome Answer: ; Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components 4) Chich one of the following is an e(ample e( ample of a narrow scope in a mission A) transportation <$s. railroads) ;) computers <$s. office eBuipment) ) health care <$s. hospitals) D) real estate <$s. apartments) E) telecommunications <$s. tele$ision) Answer: ; Difficulty: Difficult hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components AAS;: eflecti$e 0hin6ing 7/) 0he organi5ation8s corporate mission statement A) should ha$e a different mission statement for each su"sidiary di$ision. ;) should "e less formally stated to allow for growth. ) should set the organi5ation apart from its competitors. D) should state what the organi5ation would li6e to "ecome. E) should descri"e the organi5ation8s SC!0. SC!0. Answer:  Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components



71) Chich of the following is an e(ample of a mission statement A) Di$ersify product line to appeal to more p eople. ;) 'ncrease sales "y 1/@ o$er last year. year. ) ay highest salaries to 6eep high Buality employees. D) De$elop and sell Buality appliances worldwide. E) Di$ide a sales region into a group g roup of sales districts. Answer: D Difficulty: Difficult hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components AAS;: eflecti$e 0hin6ing 7&) A goal differs from an o"#ecti$e "ecause it A) is open-ended. ;) is Buantified. ) specifies measura"le results. D) is clearly specified. E) pro$ides a time hori5on. Answer: A Difficulty: Difficult hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components AAS;: Analytical 0hin6ing 7+) Chich of the following is an e(ample of an o"#ecti$e A) Di$ersify product line to appeal to more p eople. ;) 'ncrease sales "y 1/@ o$er last year. year. ) ay highest salaries to 6eep high Buality employees. D) De$elop and sell Buality appliances worldwide. E) Di$ide a sales region into a group g roup of sales districts. Answer: ; Difficulty: Difficult hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components AAS;: eflecti$e 0hin6ing 72) Chich of the following is an e(ample of a corporate strategy A) Di$ersify product line to appeal to more p eople. ;) 'mitate products of competitors. ) ay highest salaries to 6eep high Buality employees. D) De$elop and sell Buality appliances worldwide. E) Di$ide a sales region into a group g roup of sales districts. Answer: A Difficulty: Difficult hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components AAS;: eflecti$e 0hin6ing



73) 0he type of strategy which descri"es a co mpany8s o$erall direction in terms of its general attitude toward growth and the management of its $arious "usinesses and product lines is A) functional. ;) operational. ) "usiness. D) product. E) corporate. Answer: E Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components 74) 0he type of strategy which emphasi5es the impro$ement of the competiti$e position of a corporation8s products or ser$ices in a particular industry or mar6et segment ser$ed "y a "usiness unit is A) functional. ;) operational. ) "usiness. D) en$ironmental. E) corporate. Answer:  Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components 77) 0he type of strategy which achie$es corporate co rporate and "usiness unit o"#ecti$es and strategies "y ma(imi5ing resource producti$ity is A) functional. ;) operational. ) "usiness. D) product. E) corporate. Answer: A Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components 7) A large multidi$isional "usiness has three le$els in its hierarchy of strategy: A) orporate G ;usiness G Functional. ;) En$ironmental G orporate G Functional. ) En$ironmental G Enterprise G orporate. D) ;usiness G Di$isional G Functional. Func tional. E) 'ndustry G orporate G Di$isional. Answer: A Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components

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7) As defined in this course a policy is A) the purpose or reason for a corporation8s e(istence. ;) a statement of acti$ities or steps needed to accomplish a single-use plan. ) a "road guideline for ma6ing decisions that lin6s the formulation of strategy with its implementation. D) a comprehensi$e master plan stating how a corporation will achie$e its mission and o"#ecti$es. E) a statement of a corporation8s programs in dollar terms. Answer:  Difficulty: Easy hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components /) Chich of the following is an e(ample of a policy A) Di$ersify product line to appeal to more p eople. ;) 'ncrease sales "y 1/@ o$er last year. year. ) ay highest salaries to 6eep high Buality employees. D) De$elop and sell Buality appliances worldwide. E) Di$ersify from retailing into deli$ery. Answer:  Difficulty: Difficult hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components AAS;: eflecti$e 0hin6ing 1) 0he process "y which strategies and policies are put into action through the de$elopment of programs "udgets and procedures is A) strategy formulation. ;) strategy control. ) strategy implementation. D) strategy de$elopment. E) strategy e$aluation. Answer:  Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components &) Chich of the following is =!0 a part of strategy implementation A) performance e$aluation ;) "udgets ) programs and tactics D) procedures E) operational planning Answer: A Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components

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+) Chich of the following is an e(ample of a program A) Di$ersify product line to appeal to more p eople. ;) 'ncrease sales "y 1/@ o$er last year. year. ) *ust "e H1 where$er we compete. D) De$elop and sell Buality appliances worldwide. E) educe final assem"ly time to three days "y ha$ing suppliers "uild plan sections. Answer: E Difficulty: Difficult hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components AAS;: eflecti$e 0hin6ing 2) A program or tactic is A) a detailed cost statement in terms of dollars. ;) a system of seBuential steps. ) a statement of the acti$ities needed to support a strategy. strategy. D) the process "y which strategies and policies are put into action. E) none of the a"o$e Answer:  Difficulty: Easy hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components 3) A "udget is a statement of a corporation8s programs in dollar terms. Chich is =!0 true of the "udgetary function A) 't is used in planning and control. ;) 't ser$es as a detailed plan of strategy in action. ) !nly one "udget is necessary to capture all programs. D) 't details the impact on the firm8s future financial situation. E) 't is used as a means of measuring success "ased on certain criteria. Answer:  Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components 4) FedE( stipulates specific employee "eha$iors including h ow a dri$er dresses to how 6eys are held when approaching a customer8s door. 0his is an e(ample of a A) program. ;) "udget. ) procedure. D) policy. E) control. Answer:  Difficulty: Difficult hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components AAS;: Analytical 0hin6ing

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7) As a part of the strategic management process e$aluation and control is concerned with all of the following EE0 A) generating feed"ac6 to decision ma6ers. ;) monitoring corporate acti$ities and performance. ) stimulating a re$iew of the corporation8s strategic management. D) pinpointing pro"lem areas. E) determining top management "enefits pac6ages. Answer: E Difficulty: *oderate hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components ) A set of seBuential steps or techniBues that descri"e in d etail how a particular tas6 or #o" is to "e done is referred to as A) a standard operating procedure. ;) a systems operating procedure. ) a standard operating program. D) a standard outside procedure. E) a systems operating plan. Answer: A Difficulty: Easy hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components ) esearch done "y enry e nry *int5"erg suggests that strategy formulation A) is typically an irregular and a discontinuous process. ;) should "e followed unswer$ingly to ensure success of the plan. ) is a process to which organi5ations find they must ma6e significant yearly changes. D) should "e re$iewed after a specific inter$al of time to ma6e sure it is still applica"le. E) is merely a chec6list of actions following a logical process. Answer: A Difficulty: *oderate hapter !"#ecti$e: 'dentify some common triggering e$ents that act a s stimuli for strategic change /) 0he phenomenon that descri"es corporations as e $ol$ing through relati$ely long periods of sta"ility punctuated "y relati$ely short "ursts of fundamental change is 6nown as A) re$olution. ;) eBuili"rium. ) punctuated eBuili"rium. D) logical incrementalism. E) discontinuity. Answer:  Difficulty: *oderate hapter !"#ecti$e: 'dentify some common triggering e$ents that act a s stimuli for strategic change

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1) Chich of the following is =!0 one of the four triggering e$en ts listed in the te(t that are the stimulus for a strategic change A) inter$ention "y the organi5ation8s "an6 ;) annual strategic planning conference ) threat of a ta6eo$er D) new E! E) awareness "y management of decreased d ecreased profita"ility Answer: ; Difficulty: *oderate hapter !"#ecti$e: 'dentify some common triggering e$ents that act a s stimuli for strategic change &) 0he e(istence of a performance gap A) should cause management to Buestion their o"#ecti$es strategies and policies. ;) is not an indicator of pro"lems if it only happens once. ) is only the concern of top management "ecause they set the original strategies. D) should cause management to loo6 only within the organi5ation to determine the pro"lem. E) should signal the immediate need for a layoff. Answer: A Difficulty: *oderate hapter !"#ecti$e: 'dentify some common triggering e$ents that act a s stimuli for strategic change AAS;: Analytical 0hin6ing +) Chich of the following statements is =!0 true of a strategic inflection point A) 0he term was coined "y Andy ,ro$e past E! of 'ntel orporation. ;) 0his represents what happens to a "usiness when a ma#or change ta6es place due du e to the introduction of new technology. technology. ) 0his represents what happens to a "usiness when a ma#or change ta6es place due du e to a change in customers8 $alues or a change in what customers prefer. prefer. D) 0his represents what happens to a "usiness when a ma#or change ta6es place due to a different regulatory en$ironment. E) A new E! is an e(ample of a strategic inflection point. Answer: E Difficulty: Difficult hapter !"#ecti$e: 'dentify some common triggering e$ents that act a s stimuli for strategic change 2) Chich of the following is =!0 a characteristic of strategic decisions as mentioned in the te(t A) directi$e ;) conseBuential ) rare D) continuous E) reBuire commitment of su"stantial resources Answer: D Difficulty: Easy && opyright 9 &/13 earson Education 'nc.


hapter !"#ecti$e: %nderstand strategic decision-ma6ing modes

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3) According to *int5"erg the entrepreneurial mode of strategy formulation A) is characteri5ed "y reacti$e solutions to e(isting pro"lems. ;) assumes ma#or responsi"ilities for strategy formulation. ) is focused on opportunitiesI pro"lems are secondary. D) includes the proacti$e search for new opportunities and reacti$e solutions to e(isting pro"lems. E) assumes the en$ironment is unresponsi$e to input. Answer:  Difficulty: *oderate hapter !"#ecti$e: %nderstand strategic decision-ma6ing modes 4) According to enry *int5"erg the three most typical approaches to strategic decision ma6ing are A) entrepreneurial adapti$e and planning. ;) entrepreneurial logical incrementalism and planning. ) logical incrementalism strategic planning and systematic scanning. D) en$ironmental scanning formulation and implementation. E) directi$e rare and conseBuential. Answer: A Difficulty: Easy hapter !"#ecti$e: %nderstand strategic decision-ma6ing modes 7) Ama5on.com founded "y Jeff ;e5os and reflecting his $ision is an e(ample of which mode of strategic decision ma6ing A) adapti$e ;) entrepreneurial ) logical incrementalism D) planning E) none of the a"o$e Answer: ; Difficulty: Difficult hapter !"#ecti$e: %nderstand strategic decision-ma6ing modes AAS;: eflecti$e 0hin6ing ) Chat characteri5es the planning mode of strategy formulation A) 0op 0op management "elie$es that the en$ironment is a force to "e used and controlled. ;) 't assumes the en$ironment is too comple( to " e completely comprehended. ) 't in$ol$es the systematic gathering of appropriate information for situation analysis the generation of feasi"le alternati$e strategies and the rational selection of the most appropriate strategy. D) ather than utili5ing a proacti$e search for new opportunities it only has the opportunity for reacti$e "eha$ior "eha $ior.. E) 't is "ased on $ision and large-picture strategy. strategy. Answer:  Difficulty: *oderate hapter !"#ecti$e: %nderstand strategic decision-ma6ing modes &2 opyright 9 &/13 earson Education 'nc.


) ';* under E! Louis ,erstner and his strategic decision to in$est in ser$ices in 1+ is an e(ample of which mode of o f strategic decision ma6ing A) adapti$e ;) entrepreneurial ) logical incrementalism D) planning E) none of the a"o$e Answer: D Difficulty: Difficult hapter !"#ecti$e: %nderstand strategic decision-ma6ing modes AAS;: eflecti$e 0hin6ing 1//) 0he mode of strategic decision ma6ing typical of most uni$ersities many large hospitals a large num"er of go$ernmental agencies and a surprising num"er of large corporations is A) adapti$e. ;) entrepreneurial. ) logical incrementalism. D) planning. E) none of the a"o$e Answer: A Difficulty: Difficult hapter !"#ecti$e: %nderstand strategic decision-ma6ing modes 1/1) 0he mode of strategy formulation used when top management has a reasona"ly clear idea of the corporation8s mission and o"#ecti$es "ut it chooses to de$ elop a series of tentati$e or partial strategies instead of de$eloping full-"lown strategies is called A) planning mode. ;) logical incrementalism. ) entrepreneurial mode. D) adapti$e mode. E) strategic mode. Answer: ; Difficulty: *oderate hapter !"#ecti$e: %nderstand strategic decision-ma6ing modes 1/&) Chich approach to decision ma6ing is most useful when the en$ironment is changing rapidly and when it is important to "uild consensus and de$elop needed resources "efore committing the entire corporation to a specific strategy A) planning mode ;) entrepreneurial mode ) logical incrementalism D) adapti$e mode E) strategic fle(i"ility mode Answer:  Difficulty: Difficult hapter !"#ecti$e: %nderstand strategic decision-ma6ing modes AAS;: Analytical 0hin6ing &3 opyright 9 &/13 earson Education 'nc.


1/+) A chec6list of Buestions "y area or issue that ena"les a systematic analysis to "e made of $arious corporate functions and acti$ities is referred to as a

Difficulty: Difficult hapter !"#ecti$e: %nderstand the "asic model of strategic management and its components

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1/) Chat is a triggering e$ent List some possi"le e(amples. Answer: A triggering triggering e$ent is something that acts as a stimulus for a change in strategy. Some possi"le triggering e$ents are a new E! an e(ternal inter$ention a threat of a change in ownership a performance gap and a strategic inflection point. Difficulty: Difficult hapter !"#ecti$e: 'dentify some common triggering e$ents that act a s stimuli for strategic change 1/) Chat is a strategic decision and what are its three characteristics Answer: A strategic strategic decision deals with the long-run future of an entire organi5ation. organi5ation. 0here are three characteristics of a strategic decision: rare conseBuential and directi$e. Strategic decisions are unusual and typically ha$e no precedent to follow. 0hey commit su"stantial resources and demand a great deal of o f commitment from people at all le$els. And they set precedents for lesser decisions and future actions throughout the organi5ation. Difficulty: *oderate hapter !"#ecti$e: %nderstand strategic decision-ma6ing modes

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Test Bank for Concepts in Strategic Management and Business Policy 14th Edition by Wheelen

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