Exam 2: Strategic Management Fundamentals

A mental model includes assumptions about the industry and competition

Strategic decisions are those that affect the long-term well-being of the firm

The creation of competitive advantage is a sufficient condition for creating economic value

Managers' mental models are easy to change

Strategy is never the result of a collective decision-making process

A business model is the system for generating value for customers and earning a profit

Appropriate time horizons depend on the speed at which markets are evolving

Suppliers have become key stakeholders for many firms

Strategy must be analytic and creative, committed yet flexible

Strategies can never be broken into smaller elements for implementation

Strategic managers must be wary of adopting an industry-dominated perspective on the world

Returns to shareholders are always under the control of management

A decision is strategic when it has the potential to put the future of the firm at risk

High-potential employees will always leave the firm

All strategies have risks

In the contemporary business environment the costs of delay are rising

A firm has many different stakeholder groups

Revolutionary strategy rarely affects the entire business system

Successful senior executives are rarely insulated from reality

Value creation involves customer selection and meeting customer needs