Question 1

Which of the following is an example of a mission?

Accepted Answer

A)  Diversify product line to appeal to more people. 
B)  Increase sales by 10% over last year. 
C)  Pay highest salaries to keep high quality employees. 
D)  Develop and sell quality appliances world-wide. 
E)  Divide a sales region into a group of sales districts. 
A)  Diversify product line to appeal to more people. 
B)  Increase sales by 10% over last year. 
C)  Pay highest salaries to keep high quality employees. 
D)  Develop and sell quality appliances world-wide. 
E)  Divide a sales region into a group of sales districts. D

Question 2

Which of the following is an example of an objective?

Accepted Answer

A)  Diversify product line to appeal to more people. 
B)  Increase sales by 10% over last year. 
C)  Pay highest salaries to keep high quality employees. 
D)  Develop and sell quality appliances world-wide. 
E)  Divide a sales region into a group of sales districts. 
A)  Diversify product line to appeal to more people. 
B)  Increase sales by 10% over last year. 
C)  Pay highest salaries to keep high quality employees. 
D)  Develop and sell quality appliances world-wide. 
E)  Divide a sales region into a group of sales districts. B

Question 3

The mode of strategy formulation used when top management has a reasonably clear idea of the corporation's mission and objectives, but it chooses to develop a series of tentative or partial strategies instead of developing full-blown strategies is called

Accepted Answer

A)  planning mode. 
B)  logical incrementalism. 
C)  entrepreneurial mode. 
D)  adaptive mode. 
E)  strategic mode. 
A)  planning mode. 
B)  logical incrementalism. 
C)  entrepreneurial mode. 
D)  adaptive mode. 
E)  strategic mode. B

Question 4

The focus of "functional strategy" is

Accepted Answer

A)  on stability, growth, or retrenchment. 
B)  maximizing resource productivity. 
C)  on overall cost leadership differentiation. 
D)  achieving overall direction. 
E)  scanning the environment. 
A)  on stability, growth, or retrenchment. 
B)  maximizing resource productivity. 
C)  on overall cost leadership differentiation. 
D)  achieving overall direction. 
E)  scanning the environment.

Question 5

Which of the following is NOT a characteristic of strategic decisions as mentioned in the text?

Accepted Answer

A)  directive 
B)  consequential 
C)  rare 
D)  continuous 
A)  directive 
B)  consequential 
C)  rare 
D)  continuous

Question 6

Which of the following is an example of a program?

Accepted Answer

A)  Diversify product line to appeal to more people. 
B)  Increase sales by 10% over last year. 
C)  Pay highest salaries to keep high quality employees. 
D)  Develop and sell quality appliances world-wide. 
E)  Divide a sales region into a group of sales districts. 
A)  Diversify product line to appeal to more people. 
B)  Increase sales by 10% over last year. 
C)  Pay highest salaries to keep high quality employees. 
D)  Develop and sell quality appliances world-wide. 
E)  Divide a sales region into a group of sales districts.

Question 7

Research done by Henry Mintzberg suggests that strategy formulation

Accepted Answer

A)  is an irregular and a discontinuous process. 
B)  should be followed unswervingly to ensure success of the plan. 
C)  is worthless. 
D)  should be reviewed after a specific interval of time to make sure it is still applicable. 
E)  is merely a checklist of actions following a logical process. 
A)  is an irregular and a discontinuous process. 
B)  should be followed unswervingly to ensure success of the plan. 
C)  is worthless. 
D)  should be reviewed after a specific interval of time to make sure it is still applicable. 
E)  is merely a checklist of actions following a logical process.

Question 8

Which of the following is an example of a strategy?

Accepted Answer

A)  Diversify product line to appeal to more people. 
B)  Increase sales by 10% over last year. 
C)  Pay highest salaries to keep high quality employees. 
D)  Develop and sell quality appliances world-wide. 
E)  Divide a sales region into a group of sales districts. 
A)  Diversify product line to appeal to more people. 
B)  Increase sales by 10% over last year. 
C)  Pay highest salaries to keep high quality employees. 
D)  Develop and sell quality appliances world-wide. 
E)  Divide a sales region into a group of sales districts.

Question 9

Which of the following is NOT one the five triggering events that are the stimulus for a strategic change?

Accepted Answer

A)  Intervention by the organization's bank 
B)  Entrance of a new competitor into the industry 
C)  Change in ownership of the organization 
D)  New CEO 
E)  Awareness by management of decreased profitability 
A)  Intervention by the organization's bank 
B)  Entrance of a new competitor into the industry 
C)  Change in ownership of the organization 
D)  New CEO 
E)  Awareness by management of decreased profitability

Question 10

The first step of the strategic decision making process, as given in the book, is to

Accepted Answer

A)  review corporate governance. 
B)  evaluate current performance results. 
C)  analyze strategic factors. 
D)  scan the internal environment. 
E)  scan the external environment. 
A)  review corporate governance. 
B)  evaluate current performance results. 
C)  analyze strategic factors. 
D)  scan the internal environment. 
E)  scan the external environment.

Question 11

Which is NOT one of the strategic questions that an organization must ask itself?

Accepted Answer

A)  Where is the organization now? 
B)  How can functional and operational areas be improved? 
C)  If no changes are made, where will the organization be in one year? 
D)  If the evaluation is negative, what specific actions should management take? 
E)  If no changes are made, where will the organization be in 10 years? 
A)  Where is the organization now? 
B)  How can functional and operational areas be improved? 
C)  If no changes are made, where will the organization be in one year? 
D)  If the evaluation is negative, what specific actions should management take? 
E)  If no changes are made, where will the organization be in 10 years?

Question 12

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 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 be formalized and explicitly stated 
D)  should be done by the president only. 
E)  is unnecessary and a waste of time.

Question 13

According to Mintzberg, the entrepreneurial mode of strategy formulation

Accepted Answer

A)  is characterized by reactive solutions to existing problems. 
B)  assumes major responsibilities for strategy formulation. 
C)  is focused on opportunities seen by one person. 
D)  includes the proactive search for new opportunities and reactive solutions to existing problems. 
E)  assumes the environment is unresponsive to input. 
A)  is characterized by reactive solutions to existing problems. 
B)  assumes major responsibilities for strategy formulation. 
C)  is focused on opportunities seen by one person. 
D)  includes the proactive search for new opportunities and reactive solutions to existing problems. 
E)  assumes the environment is unresponsive to input.

Question 14

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. 
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. 
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 15

Research suggests that strategic management evolves through four sequential phases in corporations. The first phase is

Accepted Answer

A)  externally-oriented planning. 
B)  basic financial planning. 
C)  internally-oriented planning. 
D)  forecast-based planning. 
E)  strategic management. 
A)  externally-oriented planning. 
B)  basic financial planning. 
C)  internally-oriented planning. 
D)  forecast-based planning. 
E)  strategic management.

Question 16

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)  The philosophy of the founder. 
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)  The philosophy of the founder.

Question 17

Which of the following is an example of a procedure?

Accepted Answer

A)  Evaluate all personnel annually in January using Form 25-51. 
B)  Pay highest salaries to keep high quality employees. 
C)  Divide a sales region into a group of sales districts. 
D)  Develop and sell quality appliances world-wide. 
E)  Diversify product line to appeal to more people. 
A)  Evaluate all personnel annually in January using Form 25-51. 
B)  Pay highest salaries to keep high quality employees. 
C)  Divide a sales region into a group of sales districts. 
D)  Develop and sell quality appliances world-wide. 
E)  Diversify product line to appeal to more people.

Question 18

A large, multidivisional 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 19

An organization that is skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights

Accepted Answer

A)  asks if it should be or not be. 
B)  is operating in Phase 1 of strategic management. 
C)  has a mechanistic structure. 
D)  is a learning organization. 
E)  is crazy. 
A)  asks if it should be or not be. 
B)  is operating in Phase 1 of strategic management. 
C)  has a mechanistic structure. 
D)  is a learning organization. 
E)  is crazy.

Question 20

A goal differs from an objective because it

Accepted Answer

A)  is open-ended. 
B)  is quantified. 
C)  specifies measurable results. 
D)  is clearly specified. 
E)  provides a time horizon. 
A)  is open-ended. 
B)  is quantified. 
C)  specifies measurable results. 
D)  is clearly specified. 
E)  provides a time horizon.

Which of the following is an example of a mission?

Which of the following is an example of an objective?

The mode of strategy formulation used when top management has a reasonably clear idea of the corporation's mission and objectives, but it chooses to develop a series of tentative or partial strategies instead of developing full-blown strategies is called

The focus of "functional strategy" is

Which of the following is NOT a characteristic of strategic decisions as mentioned in the text?

Which of the following is an example of a program?

Research done by Henry Mintzberg suggests that strategy formulation

Which of the following is an example of a strategy?

Which of the following is NOT one the five triggering events that are the stimulus for a strategic change?

The first step of the strategic decision making process, as given in the book, is to

Which is NOT one of the strategic questions that an organization must ask itself?

Strategic planning within a small organization

According to Mintzberg, the entrepreneurial mode of strategy formulation

As defined in this course, a policy is

Research suggests that strategic management evolves through four sequential phases in corporations. The first phase is

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

Which of the following is an example of a procedure?

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

An organization that is skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights

A goal differs from an objective because it

Corporate Governance and Social Responsibility

Environmental Scanning and Industry Analysis

Internal Scanning: Organizational Analysis

Strategy Formulation: Situation Analysis and Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Organizing for Action

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters

Exam 1: Basic Concepts of Strategic Management

Which of the following is an example of a mission?

Which of the following is an example of an objective?

The mode of strategy formulation used when top management has a reasonably clear idea of the corporation's mission and objectives, but it chooses to develop a series of tentative or partial strategies instead of developing full-blown strategies is called

The focus of "functional strategy" is

Which of the following is NOT a characteristic of strategic decisions as mentioned in the text?

Which of the following is an example of a program?

Research done by Henry Mintzberg suggests that strategy formulation

Which of the following is an example of a strategy?

Which of the following is NOT one the five triggering events that are the stimulus for a strategic change?

The first step of the strategic decision making process, as given in the book, is to

Which is NOT one of the strategic questions that an organization must ask itself?

Strategic planning within a small organization

According to Mintzberg, the entrepreneurial mode of strategy formulation

As defined in this course, a policy is

Research suggests that strategic management evolves through four sequential phases in corporations. The first phase is

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

Which of the following is an example of a procedure?

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

An organization that is skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights

A goal differs from an objective because it

Corporate Governance and Social Responsibility

Environmental Scanning and Industry Analysis

Internal Scanning: Organizational Analysis

Strategy Formulation: Situation Analysis and Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Organizing for Action

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters