Question 1

Sound strategy and implementation largely determine the probability and extent of the success of a firm.

Accepted Answer

A) True 
 B)False

Question 2

In practice, strategy making is

Accepted Answer

A) a combination of centrally-driven rational design and decentralized adaptation. 
B) a combination of luck, organizational politics, and centrally-driven planning. 
C) the expression of political games among top managers. 
D) none of the above.

Question 3

Business strategy has largely evolved from the theories put forward by academics.

Accepted Answer

A) True 
 B)False

Question 4

The approach taken in the textbook primarily assumes that

Accepted Answer

A) CSR is taking over from generating profits as the primary corporate goal. 
B) top managers determine the success of a firm by concentrating on short-term profits. 
C) the "anglo-saxon" model of shareholder capitalism is the right one. 
D) profit making firms are seeking to maximise profits for the owners over the long term.

Question 5

In regard to strategy making, most firms are likely to exhibit

Accepted Answer

A) a combination of design and emergence. 
B) a process labeled as "planned emergence". 
C) an interaction between strategic design, through formal top-level processes, and strategic enactment through decisions made by all management levels of the organization. 
D) all of the above.

Question 6

Select the best answer. Business strategy is a combination of

Accepted Answer

A) goals and objectives. 
B) intended and emergent strategy. 
C) strategic objectives and financial analysis. 
D) none of the above.

Question 7

The balance between designed strategy and emergent strategy depends mostly on

Accepted Answer

A) the type of organizational structure. 
B) the stability and predictability of a firm's environment. 
C) top managers' personalities. 
D) middle managers' autonomy.

Question 8

Much can be learned about a firm's actual strategy by looking at where it invests most money, and what products, services, and technologies it is working on.

Accepted Answer

A) True 
 B)False

Question 9

The shift in strategy from a plan to a direction leads to

Accepted Answer

A) a downgrade its role in management. 
B) an overt reliance on flexibility and responsiveness. 
C) a need for top managers' training. 
D) less work for top managers.

Question 10

A strategy can be described as

Accepted Answer

A) intended, emergent, or realized. 
B) intended, emergent, or sustained. 
C) emergent, critical, or sustained. 
D) realized, emergent, failed.

Question 11

Business strategy can be summarized as

Accepted Answer

A) establishing a competitive advantage over rivals. 
B) the means by which individuals achieve their objectives. 
C) the formal detailed plans used by organizations to guide their actions. 
D) the will of top managers to change their organization.

Question 12

The underlying purpose of studying strategy is

Accepted Answer

A) to reach quick-fix decisions. 
B) to better understand the issues facing top managers. 
C) to work out how to best create value in the future. 
D) both b and c.

Question 13

Strategy today has been forced to evolve to cope with an increasingly fast-paced and volatile environment, making inflexible long-term plans redundant.

Accepted Answer

A) True 
 B)False

Question 14

Strategy and tactics

Accepted Answer

A) are interchangeable terms. 
B) relate to achievement of overall long-term objectives, and multiple short-term objectives, respectively. 
C) can be seen as what top managers do and what lower level employees do, respectively. 
D) none of the above.

Question 15

The fundamental role of strategy is to

Accepted Answer

A) determine how the firm will make a profit in its industry environment. 
B) determine how the firm will deploy its resources to satisfy its short-term financial goals. 
C) determine how the firm will deploy its resources to satisfy its long-term goals, given the conditions in the competitive environment. 
D) determine how the firm can organize its own activities and achieve dominance.

Question 16

Maximising shareholder value

Accepted Answer

A) is the sole objective of all profit-making companies in every country. 
B) is the primary legal obligation in most English-speaking countries. 
C) is not the only legal obligation in continental Europe, and in Asia. Firms here are legally obliged to take account of a broad range of stakeholder interests. 
D) both b and c.

Question 17

As the environment becomes more turbulent, or unpredictable,

Accepted Answer

A) strategy appears to not be very useful. 
B) strategy remains just as vital a tool to navigate the firm through "stormy seas". 
C) strategy is put into the hands of external consultants. 
D) strategy becomes an "impossible exercise".

Question 18

Corporate strategy is also called business strategy, or competitive strategy.

Accepted Answer

A) True 
 B)False

Question 19

Profit-making firms are about creating value:

Accepted Answer

A) this value is simply the profit generated at the end of the year. 
B) they must create value for several stakeholder groups if this is to result in sustainable long-term profit generation. 
C) value to some stakeholders (e.g. customers)may be difficult to quantify in money terms. 
D) both c and b.

Question 20

Business strategy defines

Accepted Answer

A) the way a firm competes in a particular industry or market. 
B) how a firm gains a competitive advantage over its rivals within a specific industry or market. 
C) both a and b. 
D) neither a nor b.

Exam 1: The Concept of Stategy

Sound strategy and implementation largely determine the probability and extent of the success of a firm.

In practice, strategy making is

Business strategy has largely evolved from the theories put forward by academics.

The approach taken in the textbook primarily assumes that

In regard to strategy making, most firms are likely to exhibit

Select the best answer. Business strategy is a combination of

The balance between designed strategy and emergent strategy depends mostly on

Much can be learned about a firm's actual strategy by looking at where it invests most money, and what products, services, and technologies it is working on.

The shift in strategy from a plan to a direction leads to

A strategy can be described as

Business strategy can be summarized as

The underlying purpose of studying strategy is

Strategy today has been forced to evolve to cope with an increasingly fast-paced and volatile environment, making inflexible long-term plans redundant.

Strategy and tactics

The fundamental role of strategy is to

Maximising shareholder value

As the environment becomes more turbulent, or unpredictable,

Corporate strategy is also called business strategy, or competitive strategy.

Profit-making firms are about creating value:

Business strategy defines