- Strategic management focuses on integrating management, marketing, finance and accounting, production and operations, research and development, and information systems to achieve organizational success.
Answer: True - Optimizing for tomorrow the trends of today is the purpose of strategic management.
Answer: False - Even though useful, strategic planning has been cast aside by corporate America since the early 1990s.
Answer: False - The decision to expand or diversify operations is a strategy-formulation issue.
Answer: True - The terms strategic management and strategic planning are synonymous in this text.
Answer: True - A vision statement identifies the scope of a firm's operations in product and market terms.
Answer: False - 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: True - The final stage in strategic management is strategy implementation.
Answer: False - Formulation, implementation, and evaluation of strategy activities occur at three hierarchical levels in a large organization: corporate, divisional or strategic business unit, and functional.
Answer: True - One of the fundamental strategy evaluation activities is reviewing external and internal factors that are the basis for current strategies.
Answer: True - An objective, logical, systematic approach for making major decisions in an organization is a way to describe the strategic-management process.
Answer: True - Strategic management is an attempt to organize qualitative and quantitative information in a way that allows effective decisions to be made under conditions of uncertainty.
Answer: True - Analytical and intuitive thinking should complement each other.
Answer: True - According to Albert Einstein, "Knowledge is far more important than intuition."
Answer: False - 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: False - By occasionally monitoring external events, companies should be able to identify when change is required.
Answer: False - Firms, like organisms, must be "adept at adapting" or they will not survive.
Answer: True - U.S. firms are not being challenged in the computer industry.
Answer: False - Anything the firm does especially well compared to rival firms could be considered a competitive advantage.
Answer: True - Once a firm acquires a competitive advantage, they are usually able to sustain the competitive advantage indefinitely.
Answer: False - Newspaper companies in the United States provide a good example of how a company can sustain a competitive advantage over the long-term.
Answer: False - Although e-commerce has increased in popularity, it has actually led to increases in company expenses.
Answer: False - While the number of people shopping online has increased, the average amount spent online has decreased.
Answer: False - One of the ways in which the Internet has transferred power from businesses to individuals is by making comparison-shopping quick and easy.
Answer: True - Most traditional retailers have tried in vain to use their online sales to boost in-store sales.
Answer: False - 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: True - Strategists are usually found in higher levels of management and have considerable authority for decision-making in the firm.
Answer: True - The middle manager is the most visible and critical strategic manager.
Answer: False - All strategists have similar attitudes, values, ethics and concerns for social responsibility.
Answer: False - A vision statement answers the question, "What is our business?" whereas a mission statement answers, "What do we want to become?"
Answer: False - In the last five years, the position of chief strategy officer (CSO) has diminished so drastically that today it is almost unheard of for companies to have such a position on staff.
Answer: False - A clear mission statement describes the values and priorities of an organization.
Answer: True - Strengths and weaknesses are determined relative to competitors.
Answer: True - In a multidivisional firm, objectives should be established for the overall company but not for each division.
Answer: False - Objectives should be measurable, challenging, reasonable, consistent, and clear.
Answer: True - Annual objectives are long-term milestones that organizations must achieve to reach short-term objectives.
Answer: False - Annual objectives are especially important in strategy formulation.
Answer: False - According to research, a healthier workforce can more effectively and efficiently implement strategies.
Answer: True - Identifying an organization's existing vision, mission, objectives, and strategies is the final step for the strategic management process.
Answer: False - Once an effective strategy is designed, modifications are rarely required.
Answer: False - Application of the strategic-management process is typically more formal in larger and well-established organizations.
Answer: True - Commitment and understanding are the most important benefits of strategic management.
Answer: True - The best thing strategists can do is develop strategic plans themselves and then present them to operating managers to execute.
Answer: False - Firms with planning systems more closely resembling strategic-management theory generally exhibit superior long-term financial performance relative to their industry.
Answer: True - Low-performing firms typically underestimate their competitor's strengths and overestimate their own firm's strengths.
Answer: True - According to Greenley, strategic management provides increased discipline, enhanced communication, and more effective allocation of time and resources.
Answer: True - The lack of monetary rewards is one reason managers do not engage in strategic planning.
Answer: True - Crises and firefighting in an organization give managers the extra time needed to plan ahead.
Answer: False - Making many intuitive decisions that conflict with the formal plan is one pitfall to avoid in strategic planning.
Answer: True - Managers must be very formal in strategic planning because formality fosters flexibility and creativity.
Answer: False - Many organizations mistakenly spend more time and effort on the implementation of a plan, than on the formulation of the plan itself.
Answer: False - Strategic-management must be a self-reflective learning process that familiarizes managers and employees in the organization with key strategic issues and feasible alternatives for resolving those issues.
Answer: True - The most effective strategic management is ritualistic, predictable, and formal.
Answer: False - For the strategic planning process to be effective, organizations must continually strengthen the "good ethics is good business" policy.
Answer: True - Military success is usually the happy result of accidental strategies, but business success is the product of continuous attention to changing conditions and insightful adaptations to those conditions.
Answer: False - In most respects, business strategy is very different than military strategy.
Answer: False - The element of surprise provides great competitive advantages in both military and business strategy.
Answer: True - Both military and business strategy are formulated, implemented, and evaluated with an assumption of competition.
Answer: False - Superior strategy formulation is well and good, but it cannot overcome an opponent's superiority in numbers and resources.
Answer: False - All firms have a strategy, even if it is informal, unstructured, and sporadic.
Answer: True - Firms can be more proactive with strategic management.
Answer: True
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Strategic Management Chapter 1
- The strategic management process is
- In the strategic management process ASP stands for
- The firm's _____ provide the foundation for choosing one or more ______ and deciding how to implement them.
- It is important to emphasize that, primarily because they are related to how a firm interacts with its stakeholders, almost all strategic management process decisions have
- A company competing in a single product market has
- Strategic leaders, _____ , often work long hours, and their work is filled with ambiguous decision situations.
- If McDonald's is considering growing potatoes, the step of the profit pool analysis is the one that
- If Southwest Airlines is considering the consequences of videoconferencing on business travel, it is in the profit pool analysis step known as
- SWOT stands for
- Successful strategic leaders are
- Strategic delegation helps
- Organizational culture refers to
- Effective strategic leaders
- ____ should establish a firm's individuality and should be inspiring and relevant to all stakeholders.
- William Ackman is a hedge fund manager who owned a large share of J.C. Penney stock. He was also a member of the Penney board. He tried to get the CEO fired, but the board and top management said he breached his boardroom duties when he publicly disclosed information on the CEO search and financial condition of the company. He resigned from the board of directors. This is an example of a contentious relationship between
- Strategic leaders are
- ____ is an investor's uncertainty about the economic gains or losses that will result from a particular investment.
- The culmination of the strategic management process is _____
- ____ innovation is a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones.
- The I/O model is grounded in
- Firms use both the _____ and _____ models.
- PGG Mining is making a strategic decision whether to shut down a coal mine in Pennsylvania. It is important to consider that the decision
- It is well known that the elected school board of a large city engages in unethical and illegal activities involving the awarding of major contracts. This behavior has existed for decades, even as the membership in the school board has changed over time. This behavior reflects
- In smaller, new venture firms, returns are sometimes measured in terms of
- A ______ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage.