CHAPTER 1

Question 1

A statement of a corporation’s programs in terms of money required.

Answer 1

budget

Question 2

Competitive and cooperative strategies that emphasize improvement of the competitive position of a corporation’s products or services in a specific industry or market segment.

Answer 2

business strategy

Question 3

A strategy that states a company’s overall direction in terms of its general attitude toward growth and the management of its various business and product lines.

Answer 3

corporate strategy

Question 4

A nesting of strategies by level from corporate to business to functional, so that they complement and support one another.

Answer 4

hierarchy of strategy

Question 5

Variables within the organization not usually within the short-run control of top management

Answer 5

internal environment

Question 6

An organization that is skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights

Answer 6

learning organization

Question 7

The purpose or reason for an organization’s existence

Answer 7

mission

Question 8

The end result of planned activity stating what is to be accomplished by when, and quantified if possible

Answer 8

objective

Question 9

A theory proposing that an organization adjusts to changes in the environment through the learning of its employees.

Answer 9

organizational learning theory

Question 10

The end result of activities, actual outcomes of a strategic management process

Answer 10

performance

Question 11

A set of four levels of development through which
a firm generally evolves into strategic management.

Answer 11

phases of strategic management

Question 12

The monitoring, evaluation, and dissemination of information from the external and internal environments to key people within the corporation.

Answer 12

environmental scanning

Question 13

The use of business practices to reduce a company’s
impact upon the natural, physical environment

Answer 13

environmental sustainability

Question 14

A process in which corporate activities and performance results are monitored so that actual performance can be compared with desired performance.

Answer 14

evaluation and control

Question 15

A broad guideline for decision making that links the formulation of strategy with its implementation.

Answer 15

policy

Question 16

A theory that proposes that once an organization is successfully established in a particular environmental
niche, it is unable to adapt to changing conditions.

Answer 16

population ecology

Question 17

A list of sequential steps that describe in detail how a particular task or job is to be done.

Answer 17

procedure

Question 18

A statement of the activities or steps needed to accomplish a single-use plan in strategy implementation.

Answer 18

program

Question 19

A checklist of questions by area or issue that enables a systematic analysis of various corporate functions and activities. It’s a type a management audit.

Answer 19

strategic audit

Question 20

A theory that proposes that organizations adapt to a changing environment and have the opportunity and power to reshape their environment.

Answer 20

strategic choice perspective

Question 21

Decisions that deal with the long-run future of an entire organization and are rare, consequential, and directive.

Answer 21

strategic decision

Question 22

An eight-step process that improves strategic decision making

Answer 22

strategic decision-making process

Question 23

Forces outside an organization that are not typically within the short-run control of top management.

Answer 23

external environment

Question 24

An approach taken by a functional area to achieve corporate and business unit objectives and strategies by maximizing resource productivity

Answer 24

functional strategy

Question 25

External and internal factors that determine the future of a corporation.

Answer 25

strategic factor

Question 26

A set of managerial decisions and actions that determine the longrun performance of a corporation.

Answer 26

strategic management

Question 27

A comprehensive plan that states how a corporation will achieve its mission and objectives

Answer 27

strategy

Question 28

Development of long range plans for the effective management of environmental opportunities and threats in light of corporate strengths and weaknesses.

Answer 28

strategy formulation

Question 29

A process by which strategies and policies are put into action through the development of programs,
budgets, and procedures.

Answer 29

strategy implementation

Question 30

Identification of strengths, weaknesses, opportunities, and threats that may be strategic factors for a specific
company

Answer 30

SWOT analysis

Question 31

Something that acts as a stimulus for a change in strategy

Answer 31

triggering event

Question 32

A view of what management thinks an organization should become.

Answer 32

vision

Question 33

Phases of Strategic Management

Answer 33

1. Basic financial planning
2. Forecast-based planning
3. Externally oriented (strategic) planning
4. Strategic management

Question 34

three benefits of strategic management

Answer 34

1. Clearer sense of strategic vision for the firm
2. Sharper focus on what is strategically important
3. Improved understanding of a rapidly changing environment

Question 35

The internationalization of markets and corporations.

Answer 35

globalization

Question 36

Effects of Climate Change on industries and companies

Answer 36

1. Regulatory Risk
2. Supply Chain Risk
3. Product and Technology Risk
4. Litigation Risk
5. Reputational Risk
6. Physical Risk

Question 37

A theory that proposes that once an organization is successfully established in a particular environmental niche, it is unable to adapt to changing conditions

Answer 37

population ecology

Question 38

A concept of organizational adaptation that proposes that organizations can and do adapt to changing
conditions by imitating other successful organizations

Answer 38

institution theory

Question 39

4 Basic Elements of Strategic Management

Answer 39

Environmental scanning
Strategy formulation
Strategy implementation
Evaluation and control

Question 40

Characteristics of Strategic Decisions

Answer 40

rare
consequential
directive

Question 41

Modes of Strategic decision making

Answer 41

Entrepreneurial mode
Adaptive mode
Planning mode
Logical incrementalism