Question 1

The comparison of strategy, weaknesses, operations, and threats is normally referred to as a SWOT analysis.

Accepted Answer

A) True 
 B)False  False

Question 2

Successful strategic planning

Accepted Answer

A)  encompasses managers at all levels. 
B)  should be done by business and functional managers. 
C)  should be decentralized. 
D)  should use corporate-level planners as facilitators. 
E)  requires all of the above. 
A)  encompasses managers at all levels. 
B)  should be done by business and functional managers. 
C)  should be decentralized. 
D)  should use corporate-level planners as facilitators. 
E)  requires all of the above. E

Question 3

_________________ is rooted in the tendency to generalize from a small sample or even a single vivid anecdote

Accepted Answer

A)  Prior Hypothesis Bias 
B)  Reasoning by Analogy 
C)  Illusion of Control 
D)  Representativeness 
E)  Devil's Advocacy 
A)  Prior Hypothesis Bias 
B)  Reasoning by Analogy 
C)  Illusion of Control 
D)  Representativeness 
E)  Devil's Advocacy D

Question 4

The Internet has been around since the 1970s, but prior to the early 1990s, was a drab place, lacking the color, content, and richness of today's environment.

Accepted Answer

A) True 
 B)False

Question 5

__________ occurs when strategic plans are formulated in a vacuum by top managers who have little understanding or appreciation of current operating realities.

Accepted Answer

A)  Reasoning by analogy 
B)  Strategic fit 
C)  Planning under uncertainty 
D)  Ivory tower planning 
E)  Cognitive bias 
A)  Reasoning by analogy 
B)  Strategic fit 
C)  Planning under uncertainty 
D)  Ivory tower planning 
E)  Cognitive bias

Question 6

The second component of the strategic management process is

Accepted Answer

A)  an analysis of the organizations internal environment 
B)  development of the mission statement 
C)  a statement of the vision for the organization 
D)  an analysis of the organization's external environment 
E)  a statement of the key values of the organization 
A)  an analysis of the organizations internal environment 
B)  development of the mission statement 
C)  a statement of the vision for the organization 
D)  an analysis of the organization's external environment 
E)  a statement of the key values of the organization

Question 7

Devil's advocacy

Accepted Answer

A)  involves one group member being responsible for questioning the assumptions of a plan. 
B)  is vulnerable to the group-think phenomenon. 
C)  results in unproductive conflict. 
D)  is simpler than the expert approach. 
E)  results in a final plan that is a combination of a plan and a counterplan. 
A)  involves one group member being responsible for questioning the assumptions of a plan. 
B)  is vulnerable to the group-think phenomenon. 
C)  results in unproductive conflict. 
D)  is simpler than the expert approach. 
E)  results in a final plan that is a combination of a plan and a counterplan.

Question 8

Scenario-based planning is a technique for coping with the problem of

Accepted Answer

A)  strategic fit 
B)  planning equilibrium. 
C)  bottom-up planning. 
D)  uncertainty. 
E)  cognitive bias. 
A)  strategic fit 
B)  planning equilibrium. 
C)  bottom-up planning. 
D)  uncertainty. 
E)  cognitive bias.

Question 9

The more efficient a company is, the higher are its profitability and return on invested capital.

Accepted Answer

A) True 
 B)False

Question 10

_________ enables a firm to evaluate the effectiveness of its strategic choices.

Accepted Answer

A)  Strategic intent 
B)  The feedback loop 
C)  Internal analysis 
D)  External analysis 
E)  SWOT 
A)  Strategic intent 
B)  The feedback loop 
C)  Internal analysis 
D)  External analysis 
E)  SWOT

Question 11

A competitive advantage is considered to be a sustained competitive advantage when

Accepted Answer

A)  the firm is able to spread the advantage to all of its business units. 
B)  it is able to maintain above-average profitability for a number of years 
C)  the advantage is very large. 
D)  the advantage was gained at a low cost. 
E)  the managers who developed the advantage are still employed at the firm. 
A)  the firm is able to spread the advantage to all of its business units. 
B)  it is able to maintain above-average profitability for a number of years 
C)  the advantage is very large. 
D)  the advantage was gained at a low cost. 
E)  the managers who developed the advantage are still employed at the firm.

Question 12

Mark Andreesen developed the first browser, known as Mosaic.

Accepted Answer

A) True 
 B)False

Question 13

Identify the levels of strategic managers and discuss their role in the strategic management process.

Accepted Answer

The three levels of strategic managers a

Question 14

According to Mintzberg's model, a realized strategy is the product of whatever planned strategies are actually put into action (the company's deliberate strategies) and of any unplanned, or emergent strategies.

Accepted Answer

A) True 
 B)False

Question 15

A business unit is a self-contained division (with its own functions - for example, finance, purchasing, production, and marketing departments) that provides a product or service for a particular market.

Accepted Answer

A) True 
 B)False

Question 16

A criticism of the rational planning process model of strategy is that too much importance is attached to the role of top management, and particularly the CEO.

Accepted Answer

A) True 
 B)False

Question 17

Edward Wrapp's ideas about the astuteness of political power suggest that successful strategic managers

Accepted Answer

A)  publicly commit themselves to bold strategic agendas. 
B)  are unwilling to "live with" less than total acceptance of their programs. 
C)  maintain tight control over as many decisions as possible. 
D)  often play the power game with skill and attempt to build consensus for their ideas rather than use their authority to force ideas through; they act as members or democratic leaders of a coalition rather than as dictators. 
E)  recognize the futility of pursuing intended strategies. 
A)  publicly commit themselves to bold strategic agendas. 
B)  are unwilling to "live with" less than total acceptance of their programs. 
C)  maintain tight control over as many decisions as possible. 
D)  often play the power game with skill and attempt to build consensus for their ideas rather than use their authority to force ideas through; they act as members or democratic leaders of a coalition rather than as dictators. 
E)  recognize the futility of pursuing intended strategies.

Question 18

Capital means the sum of money invested in the company, that is, stockholders' equity plus debt owed to creditors.

Accepted Answer

A) True 
 B)False

Question 19

When considering emergent strategies, it is important for a firm's managers to

Accepted Answer

A)  ensure that the chosen strategies are the result of deliberate plans. 
B)  ignore strategies that are not the result of a formal planning process. 
C)  develop the emergent strategies themselves. 
D)  substitute emergent strategies for formal plans whenever possible. 
E)  assess whether the emergent strategy fits the company's needs and capabilities. 
A)  ensure that the chosen strategies are the result of deliberate plans. 
B)  ignore strategies that are not the result of a formal planning process. 
C)  develop the emergent strategies themselves. 
D)  substitute emergent strategies for formal plans whenever possible. 
E)  assess whether the emergent strategy fits the company's needs and capabilities.

Question 20

Strong and effective leaders

Accepted Answer

A)  stay well informed by using formal information channels. 
B)  do not get involved in strategy formulation. 
C)  maintain control over most decisions. 
D)  understand the feelings and viewpoints of subordinates and take those into account when making decisions. 
E)  delegate key decisions. 
A)  stay well informed by using formal information channels. 
B)  do not get involved in strategy formulation. 
C)  maintain control over most decisions. 
D)  understand the feelings and viewpoints of subordinates and take those into account when making decisions. 
E)  delegate key decisions.

The comparison of strategy, weaknesses, operations, and threats is normally referred to as a SWOT analysis.

Successful strategic planning

_________________ is rooted in the tendency to generalize from a small sample or even a single vivid anecdote

The Internet has been around since the 1970s, but prior to the early 1990s, was a drab place, lacking the color, content, and richness of today's environment.

__________ occurs when strategic plans are formulated in a vacuum by top managers who have little understanding or appreciation of current operating realities.

The second component of the strategic management process is

Devil's advocacy

Scenario-based planning is a technique for coping with the problem of

The more efficient a company is, the higher are its profitability and return on invested capital.

_________ enables a firm to evaluate the effectiveness of its strategic choices.

A competitive advantage is considered to be a sustained competitive advantage when

Mark Andreesen developed the first browser, known as Mosaic.

Identify the levels of strategic managers and discuss their role in the strategic management process.

According to Mintzberg's model, a realized strategy is the product of whatever planned strategies are actually put into action (the company's deliberate strategies) and of any unplanned, or emergent strategies.

A business unit is a self-contained division (with its own functions - for example, finance, purchasing, production, and marketing departments) that provides a product or service for a particular market.

A criticism of the rational planning process model of strategy is that too much importance is attached to the role of top management, and particularly the CEO.

Edward Wrapp's ideas about the astuteness of political power suggest that successful strategic managers

Capital means the sum of money invested in the company, that is, stockholders' equity plus debt owed to creditors.

When considering emergent strategies, it is important for a firm's managers to

Strong and effective leaders

The Mission, Governance, and Business Ethics

External Analysis: the Identification of Opportunities and Threats

Building Competitive Advantage

Business-Level Strategy and Competitive Positioning

Strategy in the Global Environment

Corporate-Level Strategy and Long-Run Profitability

Strategic Change: Implementing Strategies to Build and Develop a Company

Implementing Strategy Through Organizational Design

Filters

Exam 1: The Strategy-Making Process

The comparison of strategy, weaknesses, operations, and threats is normally referred to as a SWOT analysis.

Successful strategic planning

_________________ is rooted in the tendency to generalize from a small sample or even a single vivid anecdote

The Internet has been around since the 1970s, but prior to the early 1990s, was a drab place, lacking the color, content, and richness of today's environment.

__________ occurs when strategic plans are formulated in a vacuum by top managers who have little understanding or appreciation of current operating realities.

The second component of the strategic management process is

Devil's advocacy

Scenario-based planning is a technique for coping with the problem of

The more efficient a company is, the higher are its profitability and return on invested capital.

_________ enables a firm to evaluate the effectiveness of its strategic choices.

A competitive advantage is considered to be a sustained competitive advantage when

Mark Andreesen developed the first browser, known as Mosaic.

Identify the levels of strategic managers and discuss their role in the strategic management process.

According to Mintzberg's model, a realized strategy is the product of whatever planned strategies are actually put into action (the company's deliberate strategies) and of any unplanned, or emergent strategies.

A business unit is a self-contained division (with its own functions - for example, finance, purchasing, production, and marketing departments) that provides a product or service for a particular market.

A criticism of the rational planning process model of strategy is that too much importance is attached to the role of top management, and particularly the CEO.

Edward Wrapp's ideas about the astuteness of political power suggest that successful strategic managers

Capital means the sum of money invested in the company, that is, stockholders' equity plus debt owed to creditors.

When considering emergent strategies, it is important for a firm's managers to

Strong and effective leaders

The Mission, Governance, and Business Ethics

External Analysis: the Identification of Opportunities and Threats

Building Competitive Advantage

Business-Level Strategy and Competitive Positioning

Strategy in the Global Environment

Corporate-Level Strategy and Long-Run Profitability

Strategic Change: Implementing Strategies to Build and Develop a Company

Implementing Strategy Through Organizational Design

Filters