Question 1

Which one of the following is included in the firm's societal environment?

Accepted Answer

A)  competitors 
B)  economic forces 
C)  resources 
D)  governments 
E)  special interest groups 
A)  competitors 
B)  economic forces 
C)  resources 
D)  governments 
E)  special interest groups B

Question 2

One tenet of the learning organization is to maintain stability.

Accepted Answer

A) True 
 B)False  False

Question 3

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  False

Question 4

The ability of an organization to reshape its environment is described by

Accepted Answer

A)  population ecology theory. 
B)  institution theory. 
C)  the strategic choice perspective. 
D)  organizational learning theory. 
E)  organizational citizenship theory. 
A)  population ecology theory. 
B)  institution theory. 
C)  the strategic choice perspective. 
D)  organizational learning theory. 
E)  organizational citizenship theory.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

Which approach to decision making is most useful when the environment is changing rapidly and when it is important to build consensus and develop needed resources before committing the entire corporation to a specific strategy?

Accepted Answer

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

Question 8

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 internal and external information. 
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 internal and external information. 
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 9

Corporate strategy occurs at the business unit or product level.

Accepted Answer

A) True 
 B)False

Question 10

An example of an objective is "increased profitability," while an example of a goal is "to increase the firm's profitability in 2010 by 15% over 2009."

Accepted Answer

A) True 
 B)False

Question 11

The time horizon involved with regard to basic financial planning is usually

Accepted Answer

A)  one year. 
B)  one quarter. 
C)  more than five years. 
D)  less than one month. 
E)  more than three years. 
A)  one year. 
B)  one quarter. 
C)  more than five years. 
D)  less than one month. 
E)  more than three years.

Question 12

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 13

Mintzberg's entrepreneurial mode is sometimes referred to as "muddling through" since this decision- making mode tends to be more reactive than proactive in the search for new opportunities.

Accepted Answer

A) True 
 B)False

Question 14

In a survey of 50 corporations, which of the following was rated as a benefit of strategic management?

Accepted Answer

A)  clearer sense of vision for the firm 
B)  higher levels of employee motivation 
C)  higher levels of job satisfaction 
D)  improved productivity 
E)  lower employee turnover 
A)  clearer sense of vision for the firm 
B)  higher levels of employee motivation 
C)  higher levels of job satisfaction 
D)  improved productivity 
E)  lower employee turnover

Question 15

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)  none of the above 
A)  adaptive 
B)  entrepreneurial 
C)  logical incrementalism 
D)  planning 
E)  none of the above

Question 16

The triple bottom line refers to which of the following?

Accepted Answer

A)  water, air, and oil. 
B)  footprints, finance, and environment. 
C)  physical environment, traditional profit/loss, and air. 
D)  traditional profit/loss, social responsibility, and environmental responsibility. 
E)  social responsibility, people, and ethics. 
A)  water, air, and oil. 
B)  footprints, finance, and environment. 
C)  physical environment, traditional profit/loss, and air. 
D)  traditional profit/loss, social responsibility, and environmental responsibility. 
E)  social responsibility, people, and ethics.

Question 17

When an organization is evaluating its strategic position, which is NOT one of the strategic questions that an organization may ask itself?

Accepted Answer

A)  Where is the organization now? 
B)  Are we a socially responsible firm? 
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)  Are we a socially responsible firm? 
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 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

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 20

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.

Which one of the following is included in the firm's societal environment?

One tenet of the learning organization is to maintain stability.

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

The ability of an organization to reshape its environment is described by

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

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

Which approach to decision making is most useful when the environment is changing rapidly and when it is important to build consensus and develop needed resources before committing the entire corporation to a specific strategy?

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

Corporate strategy occurs at the business unit or product level.

An example of an objective is "increased profitability," while an example of a goal is "to increase the firm's profitability in 2010 by 15% over 2009."

The time horizon involved with regard to basic financial planning is usually

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

Mintzberg's entrepreneurial mode is sometimes referred to as "muddling through" since this decision- making mode tends to be more reactive than proactive in the search for new opportunities.

In a survey of 50 corporations, which of the following was rated as a benefit of strategic management?

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?

The triple bottom line refers to which of the following?

When an organization is evaluating its strategic position, which is NOT one of the strategic questions that an organization may ask itself?

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

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

What characterizes the planning mode of strategy formulation?

Corporate Governance

Ethics and Social Responsibility in Strategic Management

Environmental Scanning and Industry Analysis

Internal Scanning and 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 in Strategic Management

Which one of the following is included in the firm's societal environment?

One tenet of the learning organization is to maintain stability.

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

The ability of an organization to reshape its environment is described by

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

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

Which approach to decision making is most useful when the environment is changing rapidly and when it is important to build consensus and develop needed resources before committing the entire corporation to a specific strategy?

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

Corporate strategy occurs at the business unit or product level.

An example of an objective is "increased profitability," while an example of a goal is "to increase the firm's profitability in 2010 by 15% over 2009."

The time horizon involved with regard to basic financial planning is usually

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

Mintzberg's entrepreneurial mode is sometimes referred to as "muddling through" since this decision- making mode tends to be more reactive than proactive in the search for new opportunities.

In a survey of 50 corporations, which of the following was rated as a benefit of strategic management?

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?

The triple bottom line refers to which of the following?

When an organization is evaluating its strategic position, which is NOT one of the strategic questions that an organization may ask itself?

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

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

What characterizes the planning mode of strategy formulation?

Corporate Governance

Ethics and Social Responsibility in Strategic Management

Environmental Scanning and Industry Analysis

Internal Scanning and 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