Question 1

What are the benefits of strategic management?

Accepted Answer

The three most highly rated benefits of ...

Question 2

A goal differs from an objective because it

Accepted Answer

A)   is open-ended.
B)   is quantified.
C)   specifies measurable results.
D)   is clearly specified.
E)   provides a time horizon.F) C) and D)
G) B) and E)

Question 3

The regional trade association composed of Argentina, Brazil, Uruguay, and Paraguay is called

Accepted Answer

A)   EU.
B)   ASEAN.
C)   NAFTA.
D)   Mercosur.
E)   ABUP.F) B) and C)
G) B) and E)

Question 4

Which of the following is NOT a characteristic of strategic decisions as mentioned in the text?

Accepted Answer

A)   directive
B)   consequential
C)   rare
D)   continuous
E)   require commitment of substantial resourcesF) C) and D)
G) B) and E)

Question 5

A broad mission statement may limit the scope of a firm's activities in terms of the product or service offered.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is an example of a mission statement?

Accepted Answer

A)   Diversify product line to appeal to more people.
B)   Increase sales by 10% over last year.
C)   Pay highest salaries to keep high quality employees.
D)   Develop and sell quality appliances worldwide.
E)   Divide a sales region into a group of sales districts.F) D) and E)
G) B) and C)

Question 7

The mode of strategy formulation used when top management has a reasonably clear idea of the corporation's mission and objectives, but it chooses to develop a series of tentative or partial strategies instead of developing full-blown strategies is called

Accepted Answer

A)   planning mode.
B)   logical incrementalism.
C)   entrepreneurial mode.
D)   adaptive mode.
E)   strategic mode.F) D) and E)
G) A) and D)

Question 8

Sustainability reflects business practices to manage the firm's triple bottom line.

Accepted Answer

A) True 
 B)False

Question 9

Strategic management is that set of managerial decisions and actions that determine the long-run performance of a corporation.Which one of the following is NOT one of the basic elements of the strategic management process?

Accepted Answer

A)   strategy formulation
B)   strategy implementation
C)   statistical process control
D)   evaluation and control
E)   environmental scanningF) A) and E)
G) A) and B)

Question 10

Which of the following is an example of a program?

Accepted Answer

A)   Diversify product line to appeal to more people.
B)   Increase sales by 10% over last year.
C)   Must be #1 wherever we compete.
D)   Develop and sell quality appliances worldwide.
E)   Reduce final assembly time to three days by having suppliers build plan sections.F) C) and D)
G) A) and B)

Question 11

What are the four main activities of a learning organization?

Accepted Answer

The four main activities of a learning o...

Question 12

Corporate strategy occurs at the business unit or product level.

Accepted Answer

A) True 
 B)False

Question 13

IBM under CEO Louis Gerstner and his strategic decision to invest in services in 1993, is an example of which mode of strategic decision making?

Accepted Answer

A)   adaptive
B)   entrepreneurial
C)   logical incrementalism
D)   planning
E)   none of the aboveF) A) and B)
G) A) and C)

Question 14

A budget is a statement of a corporation's programs in dollar terms.Which is NOT true of the budgetary function?

Accepted Answer

A)   It is used in planning and control.
B)   It serves as a detailed plan of strategy in action.
C)   Only one budget is necessary to capture all programs.
D)   It details the impact on the firm's future financial situation.
E)   It is used as a means of measuring success based on certain criteria.F) D) and E)
G) A) and C)

Question 15

The currency used to integrate the monetary systems of the European Union (EU) is called the

Accepted Answer

A)   peso.
B)   dollar.
C)   euro.
D)   franc.
E)   pound.F) B) and C)
G) All of the above

Question 16

Which of the following is NOT one of the four triggering events listed in the text that are the stimulus for a strategic change?

Accepted Answer

A)   intervention by the organization's bank
B)   annual strategic planning conference
C)   threat of a takeover
D)   new CEO
E)   awareness by management of decreased profitabilityF) A) and B)
G) A) and E)

Question 17

The type of strategy which emphasizes the improvement of the competitive position of a corporation's products or services in a particular industry or market segment served by a business unit is

Accepted Answer

A)   functional.
B)   operational.
C)   business.
D)   environmental.
E)   corporate.F) A) and B)
G) A) and C)

Question 18

The internal environment includes the variables that are within the short-run control of top management.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is NOT a part of strategy implementation?

Accepted Answer

A)   performance evaluation
B)   budgets
C)   programs and tactics
D)   procedures
E)   operational planningF) A) and B)
G) B) and D)

Question 20

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

Accepted Answer

A)   population ecology
B)   institution
C)   citizenship
D)   strategic choice
E)   organizational learningF) A) and B)
G) B) and D)

Exam 1: Basic Concepts in Strategic Management

What are the benefits of strategic management?

Correct AnswerverifiedThe three most highly rated benefits of ...View AnswerShow Answer

A budget is a statement of a corporation's programs in dollar terms.Which is NOT true of the budgetary function?

Correct AnswerverifiedShow Answer

The currency used to integrate the monetary systems of the European Union (EU) is called the

Correct AnswerverifiedShow Answer

The internal environment includes the variables that are within the short-run control of top management.

Correct AnswerverifiedShow Answer

The type of strategy which emphasizes the improvement of the competitive position of a corporation's products or services in a particular industry or market segment served by a business unit is

Correct AnswerverifiedShow Answer

Which of the following is NOT one of the four triggering events listed in the text that are the stimulus for a strategic change?

Correct AnswerverifiedShow Answer

Corporate strategy occurs at the business unit or product level.

Correct AnswerverifiedShow Answer

Which of the following is an example of a program?

Correct AnswerverifiedShow Answer

A goal differs from an objective because it

Correct AnswerverifiedShow Answer

A broad mission statement may limit the scope of a firm's activities in terms of the product or service offered.

Correct AnswerverifiedShow Answer

The mode of strategy formulation used when top management has a reasonably clear idea of the corporation's mission and objectives, but it chooses to develop a series of tentative or partial strategies instead of developing full-blown strategies is called

Correct AnswerverifiedShow Answer

Which of the following is an example of a mission statement?

Correct AnswerverifiedShow Answer

What are the four main activities of a learning organization?

Correct AnswerverifiedThe four main activities of a learning o...View AnswerShow Answer

Which of the following is NOT a characteristic of strategic decisions as mentioned in the text?

Correct AnswerverifiedShow Answer

The regional trade association composed of Argentina, Brazil, Uruguay, and Paraguay is called

Correct AnswerverifiedShow Answer

Strategic management is that set of managerial decisions and actions that determine the long-run performance of a corporation.Which one of the following is NOT one of the basic elements of the strategic management process?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is NOT a part of strategy implementation?

Correct AnswerverifiedShow Answer

IBM under CEO Louis Gerstner and his strategic decision to invest in services in 1993, is an example of which mode of strategic decision making?

Correct AnswerverifiedShow Answer

Sustainability reflects business practices to manage the firm's triple bottom line.

Correct AnswerverifiedShow Answer

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The four main activities of a learning o...
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