Deck 9: Strategy Formulation

Question 1

Organizational strengths are derived from earlier assessment of the environment.

Answer 1

False

Question 2

Weakness-opportunity alternatives may be either offensive or defensive.

Answer 2

True

Question 3

Physical resources include the firm's systems and processes,including its strategies,structure,culture,financial base,research and development,marketing,information systems,and control systems.

Answer 3

False

Question 4

The first step in the strategy formulation process is the SW/OT matrix.

Question 5

Which of the following is a valid reason why a firm might pursue a flexible strategy?

A)Flexibility is necessary to pursue first mover advantages.
B)Organizational resources change.
C)Performance is not acceptable.
D)All of the above are valid reasons.

Question 6

The SWOT analysis precedes the SW/OT matrix.

Question 7

Research suggests that strategic alternatives most likely to lead to success are defensive in nature.

Question 8

A firm may change its strategy as a response to a change in the environment.

Question 9

Opportunities and threats are associated with factors outside the organization.

Question 10

Which of the following is an example of an organizational resource?

A)experience
B)strategies
C)employee knowledge & skills
D)None of the above.

Question 11

The purpose of the SW/OT matrix is to identify blind spots in an organization's environment.

Question 12

Implementation issues should be considered before a decision to adopt a strategy is made.

Question 13

Which of the following is an example of a physical resource?

A)restructuring efforts
B)strategies
C)experience of top managers
D)None of the above.

Question 14

In the context of the SW/OT matrix,opportunities and alternatives are often synonymous.

Question 15

Organizational resources include the experience,capabilities,knowledge,skills,and judgment of all the firm's employees.

Question 16

Which of the following is not a category of firm resources?

A)organizational resources
B)physical resources
C)human resources
D)All of the above are categories of firm resources.

Question 17

An organization's weaknesses are derived from its set of resources.

Question 18

The tool that analyzes a firm's strengths and weaknesses to understand how they might translate into competitive advantage is known as the

A)value chain.
B)SWOT analysis.
C)SW/OT matrix.
D)None of the above.

Question 19

Weaknesses and threats are associated with factors inside the organization.

Question 20

Strength-threat alternatives are always offensive in nature.

Question 21

Which of the following is an argument for strategic flexibility?

A)The organization should adapt to its environment.
B)Risk in inherent in any strategy.
C)It is difficult to maintain success through a single strategy.
D)All of the above are arguments for strategic flexibility.

Question 22

Which of the following is not an organizational resource consideration?

A)consistency between the firm's strategies and its structure
B)consistency among the corporate,business,and functional strategies
C)consistency between strategies and the mission and goals
D)All of the above are organizational resource considerations.

Question 23

Which of the following cannot be external to the organization?

A)weakness
B)threat
C)opportunity
D)All of the above can be external.

Question 24

What is the value chain and why is it important?

Question 25

Which of the following is not a resource consideration for the board of directors?

A)prospective contributions from members
B)connection to the firm
C)present level of investment in the firm
D)All of the above are resource considerations.

Question 26

Which of the following is not a physical resource consideration?

A)quality of distribution network
B)favorable locations
C)production capacity
D)All of the above are physical resource considerations.

Question 27

Which of the following is not an organizational resource consideration?

A)consistency between the firm's strategies and its structure
B)position in the industry
C)emphasis on training and development
D)All of the above are resource considerations.

Question 28

What are the key physical resource considerations for the firm? Why are they important?

Question 29

Which of the following is not a resource consideration for top managers?

A)experience as a member
B)relative experience in non-managerial roles
C)backgrounds and capabilities
D)All of the above are resource considerations.

Question 30

The foundation for a firm's strengths and weaknesses is

A)its competitive advantage.
B)its resources.
C)its market accessibility.
D)none of the above.

Question 31

Which of the following cannot be internal to the organization?

A)strength
B)weakness
C)opportunity
D)All of the above can be internal.

Question 32

Strategic alternatives,if adopted,

A)always require substantial change within the organization.
B)always require substantial resources for implementation.
C)may fail.
D)All of the above.

Question 33

Should prospective competitive responses to a strategic change be considered before the change is adopted? Explain.

Question 34

What four categories of alternatives can be generated from the SW/OT matrix? Provide an example of each.

Question 35

Strategic alternatives

A)should always be evaluated.
B)should always be adopted.
C)emanate from creative managers.
D)All of the above.

Question 36

Which of the following is not a resource consideration for middle managers,supervisors,and employees?

A)strategically relevant knowledge
B)turnover
C)emphasis on training and development
D)All of the above are resource considerations.

Question 37

Which of the following is not an argument for strategic consistency?

A)Strategic change can be expensive.
B)Strategic changes usually fail in the long run.
C)Consumer confusion may result from strategic change even then the new strategy represents a better fit with the firm's resources.
D)All of the above are arguments for strategic consistency.

Question 38

Which of the following are always defensive in nature?

A)strength-opportunity alternative
B)strength-threat alternative
C)weakness-opportunity alternative
D)weakness-threat alternative

Question 39

Which of the following are always offensive in nature?

A)strength-opportunity alternative
B)strength-threat alternative
C)weakness-opportunity alternative
D)weakness-threat alternative

Question 40

Can the direction of a strategic change affect how difficult the change will be to implement? Why or why not?