Question 1

A business strategy may include competitive or cooperative strategies.

Accepted Answer

A) True 
 B)False  False

Question 2

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

Question 3

The type of strategy which achieves corporate and business unit objectives and strategies by maximizing resource productivity is

Accepted Answer

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

Question 4

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 a 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 a certain criteria.

Question 5

A hierarchy of strategy emphasizes the need for the three levels of strategy to complement and support one another.

Accepted Answer

A) True 
 B)False

Question 6

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 7

Which of the following is an example of a policy?

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 worldwide. 
E) Diversify from retailing into delivery. 
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 worldwide. 
E) Diversify from retailing into delivery.

Question 8

One tenet of the learning organization is to maintain stability.

Accepted Answer

A) True 
 B)False

Question 9

The currency used to integrate the monetary systems of the European Union (EU)is called the

Accepted Answer

A) peso. 
B) dollar. 
C) euro. 
D) franc. 
E) CAFTA 
A) peso. 
B) dollar. 
C) euro. 
D) franc. 
E) CAFTA

Question 10

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

Question 11

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

Question 12

When an organization is evaluating its strategic position, 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 13

The regional trade association composed of Argentina, Brazil, Uruguay, and Paraguay is called

Accepted Answer

A) EU. 
B) ASEAN. 
C) NAFTA. 
D) Mercosur. 
E) ABUP. 
A) EU. 
B) ASEAN. 
C) NAFTA. 
D) Mercosur. 
E) ABUP.

Question 14

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 15

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.

Question 16

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 17

One member of the European Union (EU)is Chile.

Accepted Answer

A) True 
 B)False

Question 18

According to Alfred Chandler

Accepted Answer

A) high-tech industries are defined by "paths of learning." 
B) companies spring from an individual entrepreneur's knowledge, which then evolves into organizational knowledge. 
C) once a corporation has built its learning base to the point where it has become a core company in its industry, entrepreneurial start-ups are rarely able to successfully enter. 
D) organizational knowledge can become a competitive advantage. 
E) All of the above. 
A) high-tech industries are defined by "paths of learning." 
B) companies spring from an individual entrepreneur's knowledge, which then evolves into organizational knowledge. 
C) once a corporation has built its learning base to the point where it has become a core company in its industry, entrepreneurial start-ups are rarely able to successfully enter. 
D) organizational knowledge can become a competitive advantage. 
E) All of the above.

Question 19

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

Accepted Answer

A) technological factors 
B) sociocultural factors 
C) economic factors 
D) stockholders 
E) political-legal forces 
A) technological factors 
B) sociocultural factors 
C) economic factors 
D) stockholders 
E) political-legal forces

Question 20

Research indicates that a broad mission statement may be best in a turbulent environment.

Accepted Answer

A) True 
 B)False

A business strategy may include competitive or cooperative strategies.

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

The type of strategy which achieves corporate and business unit objectives and strategies by maximizing resource productivity is

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

A hierarchy of strategy emphasizes the need for the three levels of strategy to complement and support one another.

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

Which of the following is an example of a policy?

One tenet of the learning organization is to maintain stability.

The currency used to integrate the monetary systems of the European Union (EU)is called the

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

Strategic planning within a small organization

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

The regional trade association composed of Argentina, Brazil, Uruguay, and Paraguay is called

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

A goal differs from an objective because it

What characterizes the planning mode of strategy formulation?

One member of the European Union (EU)is Chile.

According to Alfred Chandler

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

Research indicates that a broad mission statement may be best in a turbulent environment.

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

A business strategy may include competitive or cooperative strategies.

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

The type of strategy which achieves corporate and business unit objectives and strategies by maximizing resource productivity is

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

A hierarchy of strategy emphasizes the need for the three levels of strategy to complement and support one another.

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

Which of the following is an example of a policy?

One tenet of the learning organization is to maintain stability.

The currency used to integrate the monetary systems of the European Union (EU)is called the

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

Strategic planning within a small organization

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

The regional trade association composed of Argentina, Brazil, Uruguay, and Paraguay is called

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

A goal differs from an objective because it

What characterizes the planning mode of strategy formulation?

One member of the European Union (EU)is Chile.

According to Alfred Chandler

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

Research indicates that a broad mission statement may be best in a turbulent environment.

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