Strategic Management - full

A total weighted score of 1.0 for an EFE Matrix indicates that the firm is responding in an outstanding way to existing opportunities and threats in its industry.

Select one:

True

False

F

An external audit focuses on identifying and evaluating trends and events within the control of management.

Select one:

True

False

F

Major competitors' strengths are areas of concern but do not represent key threats to a firm.

Select one:

True

False

F

Protectionism is used by various countries around the world to safeguard their domestic industries.

Select one:

True

False

T

India is increasing tariffs on foreign steel.

Select one:

True

False

T

The critical success factors in a Competitive Profile Matrix (CPM) and an External Factor Evaluation (EFE) Matrix include both internal and external issues.

Select one:

True

False

F

A forward integration strategy is used by firms to gain control or ownership of suppliers.

Select one:

True

False

F

External audits attempt to identify key variables that offer highly intuitive responses.

Select one:

True

False

F

Major competitors' weaknesses can represent internal opportunities.

Select one:

True

False

F

The aim of an external audit is to develop an exhaustive list of every possible factor that could influence the business.

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True

False

F

While forecasts might not be perfect, they are never wildly inaccurate.

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True

False

F

An effective competitive intelligence program allows all areas of a firm to access consistent and verifiable information in making decisions.

Select one:

True

False

T

Economic factors do not have much impact on the attractiveness of strategies.

Select one:

True

False

F

Political forecasts can be the most important part of an external audit for firms that depend heavily on government contracts.

Select one:

True

False

T

Regardless of the number of key opportunities and threats included in an External Factor Evaluation Matrix, the highest possible total weighted score for an organization is 4.0, and the lowest possible total weighted score is 0.0.

Select one:

True

False

F

The weights and total weighted scores in both a Competitive Profile Matrix (CPM) and an External Factor Evaluation (EFE) Matrix have the same meaning.

Select one:

True

False

T

Organizations never develop their own projections.

Select one:

True

False

F

A total weighted score of 1.0 for an EFE Matrix indicates that the firm is responding in an outstanding way to existing opportunities and threats in its industry.

Select one:

True

False

F

Significant barriers to entry are not always sufficient to keep some new firms from entering industries with higher-quality products, lower prices, and substantial marketing resources.

Select one:

True

False

T

External audits attempt to identify key variables that offer actionable responses.

Select one:

True

False

T

Wild guesses should never be made in formulating strategies.

Select one:

True

False

T

Corporate intelligence is the name for a systematic and ethical process for gathering and analyzing information about the competition's activities and general business trends to further a business's own goals.

Select one:

True

False

F

Regardless of the number of key opportunities and threats included in an External Factor Evaluation Matrix, the highest possible total weighted score for an organization is 4.0, and the lowest possible total weighted score is 0.0.

Select one:

True

False

F

Middle managers are generally the most visible and critical of all strategic managers.

Select one:

True

False

F

In developing a mission statement, arousing emotion _________.

A.

is futile.

B.

should be avoided if possible.

C.

is important.

D.

is counterproductive.

E.

is not a benefit.

C

Business or military success is _________.

A.

undermined by the element of surprise.

B.

the product of both attention to changing external and internal conditions and the insightful adaptations to those conditions.

C.

unrelated to external conditions.

D.

generally the happy result of accidental strategies.

B

Internal _________ are controllable activities in an organization that are performed especially well.

A.

strengths

B.

objectives

C.

factors

D.

opportunities

E.

incompetencies

A

To be effective, strategic-management must be a process that familiarizes managers and employees with the key strategic issues facing an organization and the feasible alternatives for resolving those issues.

Select one:

True

False

T

A mission statement, is an enduring statement of purpose that distinguishes one organization from other similar enterprises.

Select one:

True

False

T

What are enduring statements of purpose that distinguish one business from other similar firms?

A.

Employee conduct guidelines

B.

Rules

C.

Objectives

D.

Policies

E.

Mission statements

E

What types of skills are especially critical for successful strategy implementation?

A.

Technical

B.

Interpersonal

C.

Conceptual

D.

Visionary

E.

Marketing

B

While vision and mission statements are part of numerous internal reports, they should never be displayed in a firm's premises.

Select one:

True

False

F

The strategic-management process _________.

A.

is a continuous process.

B.

is a semiannual process.

C.

applies mostly to companies with sales greater than $100 million.

D.

occurs once a year.

E.

applies mostly to small businesses.

A

The terms strategic management and strategic planning are used synonymously in this text.

Select one:

True

False

A

Strategic management focuses on integrating management, marketing, finance and accounting, production and operations, research and development, and information systems to achieve organizational success.

Select one:

True

False

T

After a draft mission statement has been developed, it is important to _________.

A.

ask managers to prepare a mission statement for the organization.

B.

ask managers to seek support for the mission statement from their subordinates.

C.

vote on the mission statement.

D.

request modifications, additions, and deletions.

E.

ask managers to read several articles about mission statements as background information.

D

A mission statement should include a clear summary of an organization's financial status.

Select one:

True

False

F

All firms have a strategy, even if it is informal, unstructured, and sporadic.

Select one:

True

False

T

Mission statements cannot be stated with too high a level of specificity.

Select one:

True

False

F

The utility statement, "Do not offer me attractive looks; offer me clothes," is relevant in developing a mission statement.

Select one:

True

False

F

What are the means by which long-term objectives will be achieved?

A.

Strengths

B.

Opportunities

C.

Policies

D.

Strategies

E.

Weaknesses

D

A small nonprofit organization would probably develop a vision statement but not a mission statement.

Select one:

True

False

F

An effective mission statement generates the impression a firm is successful, has direction, and is worthy of time, support and investment.

Select one:

True

False

T

When developing a mission statement, it is usually advisable to involve as few managers as possible.

Select one:

True

False

F

Despite its great popularity in the 1980s, strategic planning by corporate America is now a valuable though rare activity.

Select one:

True

False

F

To be effective, strategic-management must be a process that familiarizes managers and employees with the key strategic issues facing an organization and the feasible alternatives for resolving those issues.

Select one:

True

False

T

Both business and military organizations must _________ and _________ to be successful.

A.

adapt to change; constantly improve

B.

be impervious to change; stay the course

C.

be impervious to change; continually improve

D.

shun change; stay the course

a

The strengths and weaknesses of an organization are determined relative to the strengths and weaknesses of its competitors.

Select one:

True

False

T

While vision and mission statements are part of numerous internal reports, they should never be displayed in a firm's premises.

Select one:

True

False

F

The purpose of a mission statement is to declare all of these EXCEPT _________.

A.

a statement of purpose.

B.

a statement of beliefs.

C.

whom an organization wants to serve.

D.

an annual financial plan.

E.

a reason for being.

D

A vision statement describes an organization's values and priorities.

Select one:

True

False

F

Making many intuitive decisions that conflict with the formal plan is a pitfall in strategic planning.

Select one:

True

False

T

The most effective strategic management is ritualistic, predictable, and formal.

Select one:

True

False

f

Firms can be more proactive with strategic management.

Select one:

True

False

T

The lack of monetary rewards is one cause of managers not engaging in strategic planning.

Select one:

True

False

T

Middle managers are generally the most visible and critical of all strategic managers.

Select one:

True

False

f

A mission statement can sometimes be called a statement of philosophy.

Select one:

True

False

t

If an organization chooses to have both a mission and a vision, the mission statement should be established first.

Select one:

True

False

f

The process of developing a vision and mission statement often includes which of these as the first activity?

A.

Merging several mission statements into one document

B.

Asking managers to read selected articles about vision and mission statements

C.

A brainstorming session on whether the organization should have only a vision statement

D.

Requesting that managers modify the current documents

E.

Asking managers to prepare a vision statement for the organization

B

Superior strategy formulation and implementation _________ an opponent's superiority in numbers and resources.

A.

are not enough to surmount

B.

can overcome

C.

unite

D.

can lead to

E.

are irrelevant to

B

The element of surprise provides great competitive advantages in both military and business strategy.

Select one:

True

False

T

An organization's vision statement _________.

A.

answers the question "What do we want to become?"

B.

broadly charts the future direction of an organization.

C.

addresses the basic question "What is our business?"

D.

is a constant reminder to its employees of why the

A

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.

Select one:

True

False

T

Who is referred to as "the father of modern management"?

A.

Yeung

B.

Campbell

C.

Drucker

D.

McGinnis

E.

Cleland

C

Which of the following is NOT a pitfall an organization should avoid in strategic planning?

A.

Involving all managers rather than delegating planning to a "planner"

B.

Failing to create a collaborative climate supportive of change

C.

Failing to communicate the plan to employees

D.

Top managers not actively supporting the strategic-planning process

E.

Doing strategic planning only to satisfy accreditation or regulatory requirements

A

Mission statements cannot be stated with too high a level of specificity.

Select one:

True

False

f

A good mission statement has _________.

A.

a shareholder orientation.

B.

a customer orientation.

C.

a profit orientation.

D.

an environmental orientation.

E.

an employee orientation.vv

B

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

Select one:

True

False

F

An effective mission statement should do all of the following EXCEPT _________.

A.

be inspiring.

B.

reveal that the firm is environmentally responsible.

C.

be reconciliatory.

D.

identify the utility of a firm's products.

E.

include monetary amounts, numbers, percentages and ratios.

e

What question is asked in conjunction with the philosophy component of a mission statement?

A.

Are employees a valuable asset of the firm?

B.

What are the firm's major products or services?

C.

Is the firm committed to growth and financial soundness?

D.

Is the firm responsive to social, community, and environmental concerns?

E.

What are the basic beliefs, values, aspirations, and ethical priorities of the firm?

E

Good mission statements identify the ________ of a firm's products to its customers.

A.

demand

B.

price

C.

popularity

D.

profit margin

E.

utility

E

Well-conceived and properly executed mission and vision statements are not subject to revision.

Select one:

True

False

f

In the widely used approach discussed in the text book, the first step in the process of developing a mission statement is to ask managers to state what they believe the organization's mission should be.

Select one:

True

False

f

What are enduring statements of purpose that distinguish one business from other similar firms?

A.

Rules

B.

Objectives

C.

Employee conduct guidelines

D.

Mission statements

E.

Policies

D

Strategy evaluation is necessary because _________.

A.

internal and external factors are constantly changing.

B.

firms have limited resources.

C.

success today is a guarantee of success tomorrow.

D.

the IRS requires strategy evaluation.

E.

the SEC requires strategy evaluation.

A

A mission statement is a declaration of an organization's reason for being.

Select one:

True

False

T

The act of strengthening employees' sense of effectiveness by encouraging and rewarding them for participating in decision-making and exercising initiative and imagination is referred to as _________.

A.

transformation.

B.

delegation.

C.

empowerment.

D.

authoritarianism.

E.

proaction.

C

What can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives?

A.

Strategy implementation

B.

Strategic management

C.

Strategic leading

D.

Strategy formulation

E.

Strategy evaluation

B

An objective, logical, systematic, & non intuitive approach for making major decisions in an organization is a way to describe the strategic-management process.

Select one:

True

False

f

With which phase of strategic management is most strongly associated with "action"?

A.

Strategy implementation

B.

Competing advantages

C.

Strategy evaluation

D.

Strategy formulation

E.

Measuring performance

A

An important activity in _________ is taking corrective action.

A.

strategy evaluation

B.

strategy formulation

C.

strategy implementation

A

Organizations using strategic management are generally _________ than those that do not.

A.

less profitable

B.

less successful

C.

less complex

D.

more complex

E.

more profitable

E

Internal crises give an organization's managers extra time needed to plan ahead.

Select one:

True

False

F

One of the benefits of having a clear mission and vision is the promotion of a sense of shared expectations among all managers and employees.

Select one:

True

False

t

Stakeholders both affect and are affected by an organization's strategic decisions.

Select one:

True

False

t

Which of the following _________ is NOT a strategy-implementation activity?

A.

Motivating employees

B.

Devising policies

C.

Taking corrective actions

D.

Establishing annual objectives

E.

Allocating resources

C

When a company has been successful, the question "What is our business?" becomes less important.

Select one:

True

False

f

The general public is especially interested in ________, whereas stockholders are more interested in ________.

A.

social responsibility; the treatment of employees

B.

profitability; social responsibility

C.

social responsibility; profitability

D.

environmental concerns; social responsibility

E.

the treatment of employees; environmental concerns

The decision to merge is a strategy-formulation issue but the decision to form a joint venture is a strategy-implementation issue.

Select one:

True

False

f

Which of the following is NOT a reason given for poor or no strategic planning in an organization?

A.

Too busy "firefighting" to plan ahead

B.

Content with current success

C.

No monetary rewards for planning

D.

Planning is viewed as a waste of time

E.

Trust of management makes it unnecessary

e

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

Select one:

True

False

f

Internal _________ are controllable activities in an organization that are performed especially well.

A.

objectives

B.

strengths

C.

opportunities

D.

factors

E.

incompetencies

B

Which component of a mission statement addresses the basic beliefs, values, aspirations, and ethical priorities of the firm?

A.

Concern for public image

B.

Customers

C.

Technology

D.

Self-concept

E.

Philosophy

e

All stakeholders' claims on an organization ________ pursued with equal emphasis.

A.

must ideally be

B.

can usually be

C.

cannot be

D.

should always be

E.

are required to be

C

Long-term objectives should be all of the following EXCEPT _________.

A.

measurable.

B.

challenging.

C.

continually changing.

D.

consistent.

E.

reasonable.

C

A(n) ________ with expertise in developing vision and mission statements and with unbiased views, can at times manage the process more effectively than an internal group or committee of managers.

A.

external auditor

B.

external group

C.

outside process analyst

D.

internal auditor

E.

outside facilitator

E

Effective mission statements can vary in _________.

A.

length.

B.

specificity.

C.

format.

D.

content.

tick all

The following excerpt from a mission statement illustrates which of the nine essential components of a mission statement? "We believe our first responsibility is to the doctors, nurses, patients, mothers, and all others who use our products and services."

A.

Customers

B.

Concern for Employees

C.

Markets

D.

Technology

E.

Concern for Public Image

A

Anything that a firm does especially well compared to rival firms is referred to as _________.

A.

unsustainable advantage.

B.

an external opportunity.

C.

opportunity cost.

D.

comparative disadvantage.

E.

competitive advantage.

E

What step in the strategic management process involves mobilizing employees and managers to put strategies into action?

A.

Strategy evaluation

B.

Strategy implementation

C.

Strategy formulation

D.

Strategic advantage

E.

Competitive advantage

B