CH 1 T F

Question 1

Optimizing for tomorrow the trends of today is the purpose of strategic management

Answer 1

F

Question 2

Resource allocation is included in strategy- formulation activities

Answer 2

T

Question 3

Although the internet has increased in popularity, it has actually led to increases in company expense

Answer 3

F

Question 4

Most traditional retailers have tried in vain to use their online sales to boost in-store sales.

Answer 4

F

Question 5

The middle manager is the most visible and critical strategic management

Answer 5

F

Question 6

In multidivisional firm, objectives should be established for the overall company and not for each division

Answer 6

F

Question 7

The changes that occurred at Disney after Robert Iger took over as CEO exemplify the fact that more organizations are centralizing the strategic- management process

Answer 7

F

Question 8

Many organizations mistakenly spend more time and effort on the implementation of a plan, than on the formulation of the plan itself

Answer 8

F

Question 9

Effective strategic management is ritualistic, predictable and formal.

Answer 9

F

Question 10

The underpinnings of strategic management hinge on managers gaining an understanding of competitors,
markets, prices, suppliers, distributors, governments, creditors, shareholders and customers worldwide.

Answer 10

T

Question 11

The purpose of strategic management is optimizing for tomorrow the trends of today.

Answer 11

F

Question 12

Resource allocation is included in strategy-formulation activities.

Answer 12

T

Question 13

The terms strategic management and strategy implementation are synonymous.

Answer 13

T

Question 14

A vision statement is, in essence, a company’s game plan.

Answer 14

F

Question 15

Strategy implementation is often considered to be the most difficult stage in the strategic-management process,
because it requires personal discipline, commitment and sacrifice

Answer 15

T

Question 16

The final stage in strategic management is strategy implementation.

Answer 16

F

Question 17

In a large diversified organization, strategy formulation, implementation and evaluation activities occur at three
hierarchical levels: corporate, divisional and functional.

Answer 17

T

Question 18

One of the fundamental strategy evaluation activities is to review the external and internal factors which are the bases for current strategies.

Answer 18

T

Question 19

A way to describe the strategic-management process is as an objective, logical, systematic approach for making major decisions in an organization.

Answer 19

T

Question 20

Strategic-management process is an attempt to organize qualitative and quantitative information in a way that
allows effective decisions to be made under conditions of uncertainty.

Answer 20

T

Question 21

Analytical and intuitive thinking should complement each other.

Answer 21

T

Question 22

Management by intuition can be defined as operating from the “I’ve-already-made-up-my-mind-don’t-bother-
me-with-the-facts “ mode.

Answer 22

F

Question 23

By monitoring external events, companies should be able to identify when change is required.

Answer 23

F

Question 24

Anything a firm does especially well compared to rival firms could be considered a competitive advantage.

Answer 24

T

Question 25

Once a firm acquires a competitive advantage, they are usually able to sustain it for an extended period of time.

Answer 25

F

Question 26

Although the Internet has increased in popularity, it has actually led to increases in company expenses.

Answer 26

F

Question 27

Consumer e-commerce is five times greater than business-to-business e-commerce.

Answer 27

F

Question 28

Currently, online shopping accounts for almost 15 percent of all shopping.

Answer 28

F

Question 29

In order for a firm to achieve sustained competitive advantage, a firm must continually adapt to changes in external trends and events and effectively formulate, implement, and evaluate strategies that capitalize upon those factors.

Answer 29

T

Question 30

Strategists are usually found in higher levels of management and have considerable authority for decision- making in the firm.

Answer 30

T

Question 31

All strategists have similar attitudes, values, ethics and concerns for social responsibility.

Answer 31

F

Question 32

A vision statement answers the question, "What is our business?," whereas a mission statement answers, "What do we want to become?

Answer 32

F

Question 33

In the last five years, the position of chief strategy officer (CSO) has diminished in comparison to other top management ranks of many organizations.

Answer 33

F

Question 34

A clear mission statement describes the values and priorities of an organization.

Answer 34

T

Question 35

Strengths and weaknesses are determined relative to competitors.

Answer 35

T

Question 36

In a multidivisional firm, objectives should be established for the overall company and not for each division.

Answer 36

F

Question 37

Objectives should be measurable, quantitative, challenging, realistic, consistent and prioritized.

Answer 37

T

Question 38

Annual objectives are long-term milestones that organizations must achieve to reach short-term objectives.

Answer 38

F

Question 39

Annual objectives are especially important in strategy formulation.

Answer 39

F

Question 40

Identifying an organization's existing vision, mission, objectives and strategies is the final step for the strategic management process

Answer 40

F

Question 41

35) Once an effective strategy is designed, modifications are rarely required.

Answer 41

F

Question 42

Application of the strategic-management process is typically more formal in larger, well-established organizations.

Answer 42

T

Question 43

Understanding is the most important benefit of strategic management, followed by commitment.

Answer 43

T

Question 44

The changes that occurred at Disney after Robert Iger took over as CEO exemplify how more and more organizations are centralizing the strategic-management process.

Answer 44

F

Question 45

Firms which have planning systems that more closely resemble strategic-management theory generally exhibit superior long-term financial performance relative to their industry.

Answer 45

T

Question 46

Low-performing firms typically underestimate their competitor's strengths and overestimate their own strengths.

Answer 46

T

Question 47

The poor reward structure is one reason managers do not engage in strategic planning

Answer 47

T

Question 48

Crises and fires in an organization allow managers the training and time for effective strategic planning.

Answer 48

F

Question 49

One pitfall which managers should avoid in strategic planning is top managers making many intuitive decisions that conflict with the formal plan.

Answer 49

T

Question 50

Managers must be very formal in strategic planning because formality induces flexibility and creativity.

Answer 50

F

Question 51

An integral part of strategy implementation must be to evaluate the quality of the strategic management process.

Answer 51

F

Question 52

Strategic management must be a self-reflective learning process that familiarizes managers and employees in the organization with key strategic issues and with feasible alternatives for resolving those issues.

Answer 52

T

Question 53

Today, managers and employees can be found personally liable if they ignore, conceal, or disregard a pollution problem.

Answer 53

T

Question 54

Merely having a code of ethics is not sufficient to ensure ethical business behavior.

Answer 54

T

Question 55

An integral part of the responsibility of all managers is to provide ethical leadership by constant example and demonstration.

Answer 55

T

Question 56

In most situations, business strategy is very different than military strategy.

Answer 56

F

Question 57

International operations can be as simple as exporting a product to a single foreign country.

Answer 57

T

Question 58

53) One risk in international operations is that nationalistic factions could seize the operations.

Answer 58

T

Question 59

All organizations have a strategy from their inception, even if the strategy is informal, unstructured, and sporadic.

Answer 59

T

Question 60

Nonprofit organizations have less need for strategic management because they are not interested in making a profit.

Answer 60

F

Question 61

Firms can be more proactive with strategic management.

Answer 61

T