CH 1 T F Flashcards
Optimizing for tomorrow the trends of today is the purpose of strategic management
F
Resource allocation is included in strategy- formulation activities
T
Although the internet has increased in popularity, it has actually led to increases in company expense
F
Most traditional retailers have tried in vain to use their online sales to boost in-store sales.
F
The middle manager is the most visible and critical strategic management
F
In multidivisional firm, objectives should be established for the overall company and not for each division
F
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
F
Many organizations mistakenly spend more time and effort on the implementation of a plan, than on the formulation of the plan itself
F
Effective strategic management is ritualistic, predictable and formal.
F
The underpinnings of strategic management hinge on managers gaining an understanding of competitors,
markets, prices, suppliers, distributors, governments, creditors, shareholders and customers worldwide.
T
The purpose of strategic management is optimizing for tomorrow the trends of today.
F
Resource allocation is included in strategy-formulation activities.
T
The terms strategic management and strategy implementation are synonymous.
T
A vision statement is, in essence, a company’s game plan.
F
Strategy implementation is often considered to be the most difficult stage in the strategic-management process,
because it requires personal discipline, commitment and sacrifice
T
The final stage in strategic management is strategy implementation.
F
In a large diversified organization, strategy formulation, implementation and evaluation activities occur at three
hierarchical levels: corporate, divisional and functional.
T
One of the fundamental strategy evaluation activities is to review the external and internal factors which are the bases for current strategies.
T
A way to describe the strategic-management process is as an objective, logical, systematic approach for making major decisions in an organization.
T
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.
T
Analytical and intuitive thinking should complement each other.
T
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.
F
By monitoring external events, companies should be able to identify when change is required.
F
Anything a firm does especially well compared to rival firms could be considered a competitive advantage.
T
Once a firm acquires a competitive advantage, they are usually able to sustain it for an extended period of
time.
F
Although the Internet has increased in popularity, it has actually led to increases in company expenses.
F
Consumer e-commerce is five times greater than business-to-business e-commerce.
F
Currently, online shopping accounts for almost 15 percent of all shopping.
F
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.
T
Strategists are usually found in higher levels of management and have considerable authority for decision-
making in the firm.
T
All strategists have similar attitudes, values, ethics and concerns for social responsibility.
F
A vision statement answers the question, “What is our business?,” whereas a mission statement answers,
“What do we want to become?
F
In the last five years, the position of chief strategy officer (CSO) has diminished in comparison to other top
management ranks of many organizations.
F
A clear mission statement describes the values and priorities of an organization.
T
Strengths and weaknesses are determined relative to competitors.
T
In a multidivisional firm, objectives should be established for the overall company and not for each division.
F
Objectives should be measurable, quantitative, challenging, realistic, consistent and prioritized.
T
Annual objectives are long-term milestones that organizations must achieve to reach short-term objectives.
F
Annual objectives are especially important in strategy formulation.
F
Identifying an organization’s existing vision, mission, objectives and strategies is the final step for the strategic management process
F
35) Once an effective strategy is designed, modifications are rarely required.
F
Application of the strategic-management process is typically more formal in larger, well-established
organizations.
T
Understanding is the most important benefit of strategic management, followed by commitment.
T
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.
F
Firms which have planning systems that more closely resemble strategic-management theory generally exhibit
superior long-term financial performance relative to their industry.
T
Low-performing firms typically underestimate their competitor’s strengths and overestimate their own strengths.
T
The poor reward structure is one reason managers do not engage in strategic planning
T
Crises and fires in an organization allow managers the training and time for effective strategic planning.
F
One pitfall which managers should avoid in strategic planning is top managers making many intuitive decisions that conflict with the formal plan.
T
Managers must be very formal in strategic planning because formality induces flexibility and creativity.
F
An integral part of strategy implementation must be to evaluate the quality of the strategic management
process.
F
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.
T
Today, managers and employees can be found personally liable if they ignore, conceal, or disregard a pollution
problem.
T
Merely having a code of ethics is not sufficient to ensure ethical business behavior.
T
An integral part of the responsibility of all managers is to provide ethical leadership by constant example and
demonstration.
T
In most situations, business strategy is very different than military strategy.
F
International operations can be as simple as exporting a product to a single foreign country.
T
53) One risk in international operations is that nationalistic factions could seize the operations.
T
All organizations have a strategy from their inception, even if the strategy is informal, unstructured, and
sporadic.
T
Nonprofit organizations have less need for strategic management because they are not interested in making a
profit.
F
Firms can be more proactive with strategic management.
T
