Question 1

Most strategy literature advocates that strategic management is

Accepted Answer

A)  more of a science than an art. 
B)  more of an art than a science. 
C)  based on analysis rather than research. 
D)  based on intuition rather than analysis. 
E)  based on creativity rather than intuition. 
A)  more of a science than an art. 
B)  more of an art than a science. 
C)  based on analysis rather than research. 
D)  based on intuition rather than analysis. 
E)  based on creativity rather than intuition. A

Question 2

Which of the following is a corrective action a company might take to correct unfavorable variances?

Accepted Answer

A)  Divesting a division 
B)  Revising objectives 
C)  Raising capital with stock or debt 
D)  Allocating resources differently 
E)  All of the above 
A)  Divesting a division 
B)  Revising objectives 
C)  Raising capital with stock or debt 
D)  Allocating resources differently 
E)  All of the above E

Question 3

Increased education and diversity of the workforce at all levels are reasons why

Accepted Answer

A)  the top-down approach is preferred. 
B)  the bottom-up approach is untenable. 
C)  only top executives have the experience and acumen to make strategy decisions. 
D)  middle-level and lower-level managers, and even non-managers, should be involved in the strategic planning process. 
E)  the horizontal approach is the most pragmatic choice. 
A)  the top-down approach is preferred. 
B)  the bottom-up approach is untenable. 
C)  only top executives have the experience and acumen to make strategy decisions. 
D)  middle-level and lower-level managers, and even non-managers, should be involved in the strategic planning process. 
E)  the horizontal approach is the most pragmatic choice. D

Question 4

The test of an effective evaluation system is its complexity.

Accepted Answer

A) True 
 B)False

Question 5

Each year, Fortune publishes strategy-evaluation research on both the United States and other countries.

Accepted Answer

A) True 
 B)False

Question 6

IFRS standards comprise 25,000 pages, whereas GAAP standards comprise 5,000 pages.

Accepted Answer

A) True 
 B)False

Question 7

Success today

Accepted Answer

A)  guarantees success tomorrow. 
B)  is no guarantee of success tomorrow. 
C)  provides significant assurance of success tomorrow. 
D)  is all that really matters. 
E)  none of the above 
A)  guarantees success tomorrow. 
B)  is no guarantee of success tomorrow. 
C)  provides significant assurance of success tomorrow. 
D)  is all that really matters. 
E)  none of the above

Question 8

All of the following are reasons to be completely open as opposed to secretive with the strategy process EXCEPT

Accepted Answer

A)  managers, employees and other stakeholders can readily contribute to the process. 
B)  stakeholders have greater basis for understanding and committing to a firm that is open. 
C)  visibility promotes democracy, whereas secrecy promotes autocracy. 
D)  participation and openness enhance understanding, commitment and communication within the firm. 
E)  openness limits rival firms from imitating or duplicating the firm's strategies. 
A)  managers, employees and other stakeholders can readily contribute to the process. 
B)  stakeholders have greater basis for understanding and committing to a firm that is open. 
C)  visibility promotes democracy, whereas secrecy promotes autocracy. 
D)  participation and openness enhance understanding, commitment and communication within the firm. 
E)  openness limits rival firms from imitating or duplicating the firm's strategies.

Question 9

Financial ratios are used to compare a firm's performance over different time periods, to compare the firm's performance to industry averages, and to compare a firm's performance with

Accepted Answer

A)  overall business standards. 
B)  projected goals. 
C)  the performance of suppliers. 
D)  non-financial ratios. 
E)  the performance of competitors. 
A)  overall business standards. 
B)  projected goals. 
C)  the performance of suppliers. 
D)  non-financial ratios. 
E)  the performance of competitors.

Question 10

With regard to the visible or hidden issue, most executives agree that

Accepted Answer

A)  the SEC should regulate whether or not companies make their strategic information visible. 
B)  some strategic information should remain confidential to top managers. 
C)  a company has gone too far when it takes steps to ensure that strategic information is not disseminated beyond "the inner circle." 
D)  the potential benefit of improved employee and stakeholder motivation and input is not worth the risk of rival firms easily knowing and exploiting a firm's strategies. 
E)  keeping strategies secret from employees and stakeholder will likely improve communication, understanding, and commitment. 
A)  the SEC should regulate whether or not companies make their strategic information visible. 
B)  some strategic information should remain confidential to top managers. 
C)  a company has gone too far when it takes steps to ensure that strategic information is not disseminated beyond "the inner circle." 
D)  the potential benefit of improved employee and stakeholder motivation and input is not worth the risk of rival firms easily knowing and exploiting a firm's strategies. 
E)  keeping strategies secret from employees and stakeholder will likely improve communication, understanding, and commitment.

Question 11

Which of the following is NOT a guideline for an effective strategic planning process?

Accepted Answer

A)  It should not become ritualistic, stilted, or orchestrated. 
B)  It should employ International Financial Reporting Standards (IFRS). 
C)  It should not be too formal, predictable, or rigid. 
D)  It should not contain jargon or arcane planning language. 
E)  It should not be a formal system for control. 
A)  It should not become ritualistic, stilted, or orchestrated. 
B)  It should employ International Financial Reporting Standards (IFRS). 
C)  It should not be too formal, predictable, or rigid. 
D)  It should not contain jargon or arcane planning language. 
E)  It should not be a formal system for control.

Question 12

When measuring organizational performance, a comparison should be made between expected results and actual results.

Accepted Answer

A) True 
 B)False

Question 13

There is no one ideal strategy-evaluation system for all organizations.

Accepted Answer

A) True 
 B)False

Question 14

Strategy evaluation is becoming increasingly easier with the passage of time, given technological advances.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements about contingency plans is NOT true?

Accepted Answer

A)  Contingency plans should be as simple as possible. 
B)  Only high-priority areas require the insurance of contingency plans. 
C)  Contingency plans should be developed for favorable and unfavorable events. 
D)  Strategists should plan for all possible contingencies. 
E)  Contingency plans minimize the impact of potential threats. 
A)  Contingency plans should be as simple as possible. 
B)  Only high-priority areas require the insurance of contingency plans. 
C)  Contingency plans should be developed for favorable and unfavorable events. 
D)  Strategists should plan for all possible contingencies. 
E)  Contingency plans minimize the impact of potential threats.

Question 16

According to author Alvin Toffler, what occurs when the nature, types, and speed of changes overpower an individual's or organization's ability and capacity to adapt?

Accepted Answer

A)  Corporate insecurity 
B)  Corrective actions 
C)  Future shock 
D)  Corporate agility 
E)  Projected performance 
A)  Corporate insecurity 
B)  Corrective actions 
C)  Future shock 
D)  Corporate agility 
E)  Projected performance

Question 17

Believing it will make it easier for investors to compare firms across countries and make it easier to raise capital globally, most large accounting firms and multinational firms favor the switch from GAAP to IFRS.

Accepted Answer

A) True 
 B)False

Question 18

Adequate and timely feedback is critical to effective strategy evaluation.

Accepted Answer

A) True 
 B)False

Question 19

All of these are Richard Rumelt's criteria to evaluate a strategy EXCEPT

Accepted Answer

A)  advantage. 
B)  consistency. 
C)  feasibility. 
D)  distinctiveness. 
E)  consonance. 
A)  advantage. 
B)  consistency. 
C)  feasibility. 
D)  distinctiveness. 
E)  consonance.

Question 20

Criteria for evaluating strategies should be measurable and easily verifiable.

Accepted Answer

A) True 
 B)False

Most strategy literature advocates that strategic management is

Which of the following is a corrective action a company might take to correct unfavorable variances?

Increased education and diversity of the workforce at all levels are reasons why

The test of an effective evaluation system is its complexity.

Each year, Fortune publishes strategy-evaluation research on both the United States and other countries.

IFRS standards comprise 25,000 pages, whereas GAAP standards comprise 5,000 pages.

Success today

All of the following are reasons to be completely open as opposed to secretive with the strategy process EXCEPT

Financial ratios are used to compare a firm's performance over different time periods, to compare the firm's performance to industry averages, and to compare a firm's performance with

With regard to the visible or hidden issue, most executives agree that

Which of the following is NOT a guideline for an effective strategic planning process?

When measuring organizational performance, a comparison should be made between expected results and actual results.

There is no one ideal strategy-evaluation system for all organizations.

Strategy evaluation is becoming increasingly easier with the passage of time, given technological advances.

Which of the following statements about contingency plans is NOT true?

According to author Alvin Toffler, what occurs when the nature, types, and speed of changes overpower an individual's or organization's ability and capacity to adapt?

Believing it will make it easier for investors to compare firms across countries and make it easier to raise capital globally, most large accounting firms and multinational firms favor the switch from GAAP to IFRS.

Adequate and timely feedback is critical to effective strategy evaluation.

All of these are Richard Rumelt's criteria to evaluate a strategy EXCEPT

Criteria for evaluating strategies should be measurable and easily verifiable.

The Nature of Strategic Management

The Business Vision and Mission

The External Assessment

The Internal Assessment

Strategies in Action

Strategy Analysis and Choice

Implementing Strategies: Management, Operations, and Human Resource Issues

Implementing Strategies: Marketing, Financeaccounting, Rd, and Mis Issues

Business Ethics, Social Responsibility, and Environmental Sustainability

Global and International Issues

Filters

Exam 9: Strategy Review, Evaluation, and Control

Most strategy literature advocates that strategic management is

Which of the following is a corrective action a company might take to correct unfavorable variances?

Increased education and diversity of the workforce at all levels are reasons why

The test of an effective evaluation system is its complexity.

Each year, Fortune publishes strategy-evaluation research on both the United States and other countries.

IFRS standards comprise 25,000 pages, whereas GAAP standards comprise 5,000 pages.

Success today

All of the following are reasons to be completely open as opposed to secretive with the strategy process EXCEPT

Financial ratios are used to compare a firm's performance over different time periods, to compare the firm's performance to industry averages, and to compare a firm's performance with

With regard to the visible or hidden issue, most executives agree that

Which of the following is NOT a guideline for an effective strategic planning process?

When measuring organizational performance, a comparison should be made between expected results and actual results.

There is no one ideal strategy-evaluation system for all organizations.

Strategy evaluation is becoming increasingly easier with the passage of time, given technological advances.

Which of the following statements about contingency plans is NOT true?

According to author Alvin Toffler, what occurs when the nature, types, and speed of changes overpower an individual's or organization's ability and capacity to adapt?

Believing it will make it easier for investors to compare firms across countries and make it easier to raise capital globally, most large accounting firms and multinational firms favor the switch from GAAP to IFRS.

Adequate and timely feedback is critical to effective strategy evaluation.

All of these are Richard Rumelt's criteria to evaluate a strategy EXCEPT

Criteria for evaluating strategies should be measurable and easily verifiable.

The Nature of Strategic Management

The Business Vision and Mission

The External Assessment

The Internal Assessment

Strategies in Action

Strategy Analysis and Choice

Implementing Strategies: Management, Operations, and Human Resource Issues

Implementing Strategies: Marketing, Financeaccounting, Rd, and Mis Issues

Business Ethics, Social Responsibility, and Environmental Sustainability

Global and International Issues

Filters