Question 1

A budget is a statement of a corporation's programs in dollar terms. Which is not true of the budgetary function?

Accepted Answer

A)  It is used in planning and control. 
B)  It serves as a detailed plan of strategy in action. 
C)  Only one budget is necessary to capture all programs. 
D)  It details the impact on the firm's future financial situation. 
E)  It is used as a means of measuring success based on certain criteria. 
A)  It is used in planning and control. 
B)  It serves as a detailed plan of strategy in action. 
C)  Only one budget is necessary to capture all programs. 
D)  It details the impact on the firm's future financial situation. 
E)  It is used as a means of measuring success based on certain criteria.

Question 2

A large business has three levels in its hierarchy of strategy:

Accepted Answer

A)  Corporate - Business - Functional. 
B)  Environmental - Corporate - Functional. 
C)  Environmental - Enterprise - Corporate. 
D)  Business - Divisional - Functional. 
E)  Industry - Corporate - Divisional. 
A)  Corporate - Business - Functional. 
B)  Environmental - Corporate - Functional. 
C)  Environmental - Enterprise - Corporate. 
D)  Business - Divisional - Functional. 
E)  Industry - Corporate - Divisional.

Question 3

Which of the following statements is not true of a strategic inflection point?

Accepted Answer

A)  The term was coined by Andy Grove, past CEO of Intel Corporation. 
B)  This represents what happens to a business when a major change takes place due to the introduction of new technology. 
C)  This represents what happens to a business when a major change takes place due to a change in customers' values or a change in what customers prefer. 
D)  This represents what happens to a business when a major change takes place due to a different regulatory environment. 
E)  A new CEO is an example of a strategic inflection point. 
A)  The term was coined by Andy Grove, past CEO of Intel Corporation. 
B)  This represents what happens to a business when a major change takes place due to the introduction of new technology. 
C)  This represents what happens to a business when a major change takes place due to a change in customers' values or a change in what customers prefer. 
D)  This represents what happens to a business when a major change takes place due to a different regulatory environment. 
E)  A new CEO is an example of a strategic inflection point.

Question 4

A functional strategy may include competitive or cooperative strategies.

Accepted Answer

A) True 
 B)False

Question 5

The Strategic Management Model presents the following process for strategy formulation:

Accepted Answer

A)  Objectives - Policies - Strategies - Mission. 
B)  Mission - Policies - Strategies - Objectives. 
C)  Policies - Mission - Strategies - Objectives. 
D)  Policies - Strategies - Objectives - Mission. 
E)  Mission - Objectives - Strategies - Policies. 
A)  Objectives - Policies - Strategies - Mission. 
B)  Mission - Policies - Strategies - Objectives. 
C)  Policies - Mission - Strategies - Objectives. 
D)  Policies - Strategies - Objectives - Mission. 
E)  Mission - Objectives - Strategies - Policies.

Question 6

The S in SWOT stands for

Accepted Answer

A)  strategies. 
B)  scanning. 
C)  strengths. 
D)  societal. 
E)  sociocultural. 
A)  strategies. 
B)  scanning. 
C)  strengths. 
D)  societal. 
E)  sociocultural.

Question 7

What are the four main activities of a learning organization?

Accepted Answer

The four main activities of a learning o

Question 8

The corporate mission is best described by which one of the following?

Accepted Answer

A)  a description of the activities carried out by the organization 
B)  the purpose or reason for the corporation's existence 
C)  a description of top management's responsibilities 
D)  a statement of corporate objectives 
E)  a statement of what the organization would like to become 
A)  a description of the activities carried out by the organization 
B)  the purpose or reason for the corporation's existence 
C)  a description of top management's responsibilities 
D)  a statement of corporate objectives 
E)  a statement of what the organization would like to become

Question 9

As more industries become global, strategic management is becoming less important in positioning a company for long-term competitive advantage.

Accepted Answer

A) True 
 B)False

Question 10

Globalization is the integrated internationalization of markets and corporations.

Accepted Answer

A) True 
 B)False

Question 11

The type of strategy, which emphasizes the improvement of the competitive position of a corporation's products or services in a particular industry or market segment served by a business unit is

Accepted Answer

A)  functional. 
B)  operational. 
C)  business. 
D)  environmental. 
E)  corporate. 
A)  functional. 
B)  operational. 
C)  business. 
D)  environmental. 
E)  corporate.

Question 12

The task environment

Accepted Answer

A)  includes those elements or groups within an organization's industry. 
B)  encompasses the physical working areas of the organization. 
C)  is an accounting of the many jobs within an organization. 
D)  is an advisory committee to top-management. 
E)  includes general forces that only indirectly affect an organization's activities. 
A)  includes those elements or groups within an organization's industry. 
B)  encompasses the physical working areas of the organization. 
C)  is an accounting of the many jobs within an organization. 
D)  is an advisory committee to top-management. 
E)  includes general forces that only indirectly affect an organization's activities.

Question 13

An organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights is a(n)

Accepted Answer

A)  learning organization. 
B)  strategically managed corporation. 
C)  innovative organization. 
D)  hypercompetitive competitor. 
E)  entrepreneurial firm. 
A)  learning organization. 
B)  strategically managed corporation. 
C)  innovative organization. 
D)  hypercompetitive competitor. 
E)  entrepreneurial firm.

Question 14

Top-down planning that emphasizes formal strategy formulation and leaves the implementation issues to lower management levels is known as

Accepted Answer

A)  forecast-based planning. 
B)  externally oriented planning. 
C)  strategic management. 
D)  basic financial planning. 
E)  none of the above 
A)  forecast-based planning. 
B)  externally oriented planning. 
C)  strategic management. 
D)  basic financial planning. 
E)  none of the above

Question 15

Which theory proposes that once an organization is successfully established in a particular environmental niche, it is unable to adapt to changing conditions?

Accepted Answer

A)  population ecology 
B)  institution 
C)  citizenship 
D)  strategic choice 
E)  organizational learning 
A)  population ecology 
B)  institution 
C)  citizenship 
D)  strategic choice 
E)  organizational learning

Question 16

According to Henry Mintzberg, the three most typical approaches to strategic decision-making are

Accepted Answer

A)  entrepreneurial, adaptive, and planning. 
B)  entrepreneurial, logical incrementalism, and planning. 
C)  logical incrementalism, strategic planning, and systematic scanning. 
D)  environmental scanning, formulation, and implementation. 
E)  directive, rare, and consequential. 
A)  entrepreneurial, adaptive, and planning. 
B)  entrepreneurial, logical incrementalism, and planning. 
C)  logical incrementalism, strategic planning, and systematic scanning. 
D)  environmental scanning, formulation, and implementation. 
E)  directive, rare, and consequential.

Question 17

What characterizes the planning mode of strategy formulation?

Accepted Answer

A)  Top management believes that the environment is a force to be used and controlled. 
B)  It assumes the environment is too complex to be completely comprehended. 
C)  It involves the systematic gathering of appropriate information for situation analysis, the generation of feasible alternative strategies, and the rational selection of the most appropriate strategy. 
D)  Rather than utilizing a proactive search for new opportunities, it only has the opportunity for reactive behavior. 
E)  It is based on vision and large-picture strategy. 
A)  Top management believes that the environment is a force to be used and controlled. 
B)  It assumes the environment is too complex to be completely comprehended. 
C)  It involves the systematic gathering of appropriate information for situation analysis, the generation of feasible alternative strategies, and the rational selection of the most appropriate strategy. 
D)  Rather than utilizing a proactive search for new opportunities, it only has the opportunity for reactive behavior. 
E)  It is based on vision and large-picture strategy.

Question 18

Amazon.com, founded by Jeff Bezos and reflecting his vision, is an example of which mode of strategic decision-making?

Accepted Answer

A)  adaptive 
B)  entrepreneurial 
C)  logical incrementalism 
D)  planning 
E)  customer relationship management 
A)  adaptive 
B)  entrepreneurial 
C)  logical incrementalism 
D)  planning 
E)  customer relationship management

Question 19

According to organizational learning theory, an organization uses knowledge to improve the fit between itself and its environment.

Accepted Answer

A) True 
 B)False

Question 20

Business sustainability reflects business practices to manage the firm's triple bottom line.

Accepted Answer

A) True 
 B)False

A budget is a statement of a corporation's programs in dollar terms. Which is not true of the budgetary function?

A large business has three levels in its hierarchy of strategy:

Which of the following statements is not true of a strategic inflection point?

A functional strategy may include competitive or cooperative strategies.

The Strategic Management Model presents the following process for strategy formulation:

The S in SWOT stands for

What are the four main activities of a learning organization?

The corporate mission is best described by which one of the following?

As more industries become global, strategic management is becoming less important in positioning a company for long-term competitive advantage.

Globalization is the integrated internationalization of markets and corporations.

The type of strategy, which emphasizes the improvement of the competitive position of a corporation's products or services in a particular industry or market segment served by a business unit is

The task environment

An organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights is a(n)

Top-down planning that emphasizes formal strategy formulation and leaves the implementation issues to lower management levels is known as

Which theory proposes that once an organization is successfully established in a particular environmental niche, it is unable to adapt to changing conditions?

According to Henry Mintzberg, the three most typical approaches to strategic decision-making are

What characterizes the planning mode of strategy formulation?

Amazon.com, founded by Jeff Bezos and reflecting his vision, is an example of which mode of strategic decision-making?

According to organizational learning theory, an organization uses knowledge to improve the fit between itself and its environment.

Business sustainability reflects business practices to manage the firm's triple bottom line.

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

A budget is a statement of a corporation's programs in dollar terms. Which is not true of the budgetary function?

A large business has three levels in its hierarchy of strategy:

Which of the following statements is not true of a strategic inflection point?

A functional strategy may include competitive or cooperative strategies.

The Strategic Management Model presents the following process for strategy formulation:

The S in SWOT stands for

What are the four main activities of a learning organization?

The corporate mission is best described by which one of the following?

As more industries become global, strategic management is becoming less important in positioning a company for long-term competitive advantage.

Globalization is the integrated internationalization of markets and corporations.

The type of strategy, which emphasizes the improvement of the competitive position of a corporation's products or services in a particular industry or market segment served by a business unit is

The task environment

An organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights is a(n)

Top-down planning that emphasizes formal strategy formulation and leaves the implementation issues to lower management levels is known as

Which theory proposes that once an organization is successfully established in a particular environmental niche, it is unable to adapt to changing conditions?

According to Henry Mintzberg, the three most typical approaches to strategic decision-making are

What characterizes the planning mode of strategy formulation?

Amazon.com, founded by Jeff Bezos and reflecting his vision, is an example of which mode of strategic decision-making?

According to organizational learning theory, an organization uses knowledge to improve the fit between itself and its environment.

Business sustainability reflects business practices to manage the firm's triple bottom line.

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