Question 1

What is a triggering event? List some possible examples.

Accepted Answer

A triggering event is something that act

Question 2

IBM under CEO Louis Gerstner and his strategic decision to invest in services in 1993, is an example of which mode of strategic decision-making?

Accepted Answer

A)  adaptive 
B)  entrepreneurial 
C)  logical incrementalism 
D)  planning 
E)  muddling through 
A)  adaptive 
B)  entrepreneurial 
C)  logical incrementalism 
D)  planning 
E)  muddling through

Question 3

A Gallup study reported that companies that focused on business sustainability had 3.9 times the EPS growth rates as compared to organizations that did not focus on business sustainability.

Accepted Answer

A) True 
 B)False

Question 4

General Electric led the transition from strategic planning to strategic management during the 1980s.

Accepted Answer

A) True 
 B)False

Question 5

A difference between basic financial planning and forecast-based planning is

Accepted Answer

A)  the time horizon is shorter in forecast-based planning. 
B)  forecast-based planning incorporates environmental data and extrapolates current trends. 
C)  basic financial planning utilizes consultants with sophisticated techniques. 
D)  basic financial planning utilizes scenarios and contingency strategies. 
E)  basic financial planning relies heavily on input from lower levels in the organization. 
A)  the time horizon is shorter in forecast-based planning. 
B)  forecast-based planning incorporates environmental data and extrapolates current trends. 
C)  basic financial planning utilizes consultants with sophisticated techniques. 
D)  basic financial planning utilizes scenarios and contingency strategies. 
E)  basic financial planning relies heavily on input from lower levels in the organization.

Question 6

Strategic flexibility is the ability to shift from one dominant strategy to another.

Accepted Answer

A) True 
 B)False

Question 7

The internal environment includes the variables within the organization itself that are within the short-run control of top management.

Accepted Answer

A) True 
 B)False

Question 8

The organization's corporate mission statement

Accepted Answer

A)  should have a different mission statement for each subsidiary division. 
B)  should be less formally stated to allow for growth. 
C)  should contain explicit descriptions of their competitive advantages. 
D)  should state what the organization would like to become. 
E)  should describe the organization's SWOT. 
A)  should have a different mission statement for each subsidiary division. 
B)  should be less formally stated to allow for growth. 
C)  should contain explicit descriptions of their competitive advantages. 
D)  should state what the organization would like to become. 
E)  should describe the organization's SWOT.

Question 9

The phenomenon that describes corporations as evolving through relatively long periods of stability punctuated by relatively short bursts of fundamental change (revolutionary change) is known as

Accepted Answer

A)  revolution. 
B)  equilibrium. 
C)  punctuated equilibrium. 
D)  logical incrementalism. 
E)  discontinuity. 
A)  revolution. 
B)  equilibrium. 
C)  punctuated equilibrium. 
D)  logical incrementalism. 
E)  discontinuity.

Question 10

A strategy maximizes competitive advantage and minimizes competitive disadvantage.

Accepted Answer

A) True 
 B)False

Question 11

As defined in this course, a policy is

Accepted Answer

A)  the purpose or reason for a corporation's existence. 
B)  a statement of activities or steps needed to accomplish a single-use plan. 
C)  a broad guideline for making decisions that links the formulation of strategy with its implementation. 
D)  a comprehensive master plan stating how a corporation will achieve its mission and objectives. 
E)  a statement of a corporation's programs in dollar terms. 
A)  the purpose or reason for a corporation's existence. 
B)  a statement of activities or steps needed to accomplish a single-use plan. 
C)  a broad guideline for making decisions that links the formulation of strategy with its implementation. 
D)  a comprehensive master plan stating how a corporation will achieve its mission and objectives. 
E)  a statement of a corporation's programs in dollar terms.

Question 12

An example of an objective is "increased profitability," while an example of a goal is "to increase the firm's profitability in 2017 by 15 percent over 2016."

Accepted Answer

A) True 
 B)False

Question 13

The emphasis of strategic management is on

Accepted Answer

A)  long-term performance. 
B)  first line managers. 
C)  the short-run performance of the corporation. 
D)  an examination of the organization's internal environment. 
E)  an investigation of competitor actions. 
A)  long-term performance. 
B)  first line managers. 
C)  the short-run performance of the corporation. 
D)  an examination of the organization's internal environment. 
E)  an investigation of competitor actions.

Question 14

Which of the following is an example of a policy?

Accepted Answer

A)  Diversify product line to appeal to more people. 
B)  Increase sales by ten percent over last year. 
C)  Only acquire companies of 75 employees or more; 75 percent must be engineers. 
D)  Develop and sell quality appliances worldwide. 
E)  Diversify from retailing into delivery. 
A)  Diversify product line to appeal to more people. 
B)  Increase sales by ten percent over last year. 
C)  Only acquire companies of 75 employees or more; 75 percent must be engineers. 
D)  Develop and sell quality appliances worldwide. 
E)  Diversify from retailing into delivery.

Question 15

Strategic planning within a small organization

Accepted Answer

A)  may be informal and irregular. 
B)  must be elaborate to allow for future growth. 
C)  should always be formalized and explicitly stated. 
D)  should be done by the president only. 
E)  is unnecessary and a waste of time. 
A)  may be informal and irregular. 
B)  must be elaborate to allow for future growth. 
C)  should always be formalized and explicitly stated. 
D)  should be done by the president only. 
E)  is unnecessary and a waste of time.

Question 16

Which one of the following is an example of a mission with a narrow scope?

Accepted Answer

A)  transportation (vs. railroads) 
B)  computers (vs. office equipment) 
C)  health care (vs. hospitals) 
D)  real estate (vs. apartments) 
E)  telecommunications (vs. television) 
A)  transportation (vs. railroads) 
B)  computers (vs. office equipment) 
C)  health care (vs. hospitals) 
D)  real estate (vs. apartments) 
E)  telecommunications (vs. television)

Question 17

According to Alfred Chandler,

Accepted Answer

A)  high-tech industries cannot be defined by "paths of learning" if they want to evolve. 
B)  companies spring from an individual entrepreneur's knowledge, which is composed exclusively of technical skills. 
C)  once a corporation has built its learning base to the point where it has become a core company in its industry, entrepreneurial start-ups are rarely able to successfully enter. 
D)  learned capabilities derive from organizational strengths. 
E)  organizational knowledge can seldom be a competitive advantage. 
A)  high-tech industries cannot be defined by "paths of learning" if they want to evolve. 
B)  companies spring from an individual entrepreneur's knowledge, which is composed exclusively of technical skills. 
C)  once a corporation has built its learning base to the point where it has become a core company in its industry, entrepreneurial start-ups are rarely able to successfully enter. 
D)  learned capabilities derive from organizational strengths. 
E)  organizational knowledge can seldom be a competitive advantage.

Question 18

In the final phase of strategic management, strategic information is available to

Accepted Answer

A)  people throughout the organization. 
B)  the top management responsible for decision-making. 
C)  middle management. 
D)  operational personnel. 
E)  only those responsible for implementing the strategy. 
A)  people throughout the organization. 
B)  the top management responsible for decision-making. 
C)  middle management. 
D)  operational personnel. 
E)  only those responsible for implementing the strategy.

Question 19

What are the benefits of strategic management?

Accepted Answer

The three most highly rated benefits of

Question 20

Strategic planning in a multidivisional corporation

Accepted Answer

A)  should be informal to allow complete understanding by the many participants. 
B)  should be instigated only from the main corporate office. 
C)  should be accomplished quickly to decrease the likelihood of it becoming outdated. 
D)  should encourage a clear delineation between top management and lower-level managers. 
E)  should be a formalized and sophisticated system. 
A)  should be informal to allow complete understanding by the many participants. 
B)  should be instigated only from the main corporate office. 
C)  should be accomplished quickly to decrease the likelihood of it becoming outdated. 
D)  should encourage a clear delineation between top management and lower-level managers. 
E)  should be a formalized and sophisticated system.

What is a triggering event? List some possible examples.

IBM under CEO Louis Gerstner and his strategic decision to invest in services in 1993, is an example of which mode of strategic decision-making?

A Gallup study reported that companies that focused on business sustainability had 3.9 times the EPS growth rates as compared to organizations that did not focus on business sustainability.

General Electric led the transition from strategic planning to strategic management during the 1980s.

A difference between basic financial planning and forecast-based planning is

Strategic flexibility is the ability to shift from one dominant strategy to another.

The internal environment includes the variables within the organization itself that are within the short-run control of top management.

The organization's corporate mission statement

The phenomenon that describes corporations as evolving through relatively long periods of stability punctuated by relatively short bursts of fundamental change (revolutionary change) is known as

A strategy maximizes competitive advantage and minimizes competitive disadvantage.

As defined in this course, a policy is

An example of an objective is "increased profitability," while an example of a goal is "to increase the firm's profitability in 2017 by 15 percent over 2016."

The emphasis of strategic management is on

Which of the following is an example of a policy?

Strategic planning within a small organization

Which one of the following is an example of a mission with a narrow scope?

According to Alfred Chandler,

In the final phase of strategic management, strategic information is available to

What are the benefits of strategic management?

Strategic planning in a multidivisional corporation

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters

Exam 1: Basic Concepts in Strategic Management

What is a triggering event? List some possible examples.

IBM under CEO Louis Gerstner and his strategic decision to invest in services in 1993, is an example of which mode of strategic decision-making?

A Gallup study reported that companies that focused on business sustainability had 3.9 times the EPS growth rates as compared to organizations that did not focus on business sustainability.

General Electric led the transition from strategic planning to strategic management during the 1980s.

A difference between basic financial planning and forecast-based planning is

Strategic flexibility is the ability to shift from one dominant strategy to another.

The internal environment includes the variables within the organization itself that are within the short-run control of top management.

The organization's corporate mission statement

The phenomenon that describes corporations as evolving through relatively long periods of stability punctuated by relatively short bursts of fundamental change (revolutionary change) is known as

A strategy maximizes competitive advantage and minimizes competitive disadvantage.

As defined in this course, a policy is

An example of an objective is "increased profitability," while an example of a goal is "to increase the firm's profitability in 2017 by 15 percent over 2016."

The emphasis of strategic management is on

Which of the following is an example of a policy?

Strategic planning within a small organization

Which one of the following is an example of a mission with a narrow scope?

According to Alfred Chandler,

In the final phase of strategic management, strategic information is available to

What are the benefits of strategic management?

Strategic planning in a multidivisional corporation

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters