Which of the following is not one of the stages of the strategic management process

Strategic Management

TEST BANK

Chapter 1

Learning Objective 1

T&F Questions.

1. 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
2. Optimizing for tomorrow the trends of today is the purpose of strategic management. Answer: FALSE
3. The terms strategic management and strategic planning are synonymous in this text. Answer: TRUE
4. The decision to expand or diversify operations is a strategy-formulation issue. Answer: TRUE.

MCQs

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1. The goal of strategic management is to A) achieve competitive advantage. B) Maintain competitive advantage. C) Achieve and maintain competitive advantage. D) Eliminate competitive advantage. Answer: C
2. Strategic management focuses on integrating management, ________, and information systems to achieve organizational success. A) Marketing. B) Finance and accounting. C) Production and operations. D) Research and development. E) All of the above. Answer: E
3. 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 formulation B) Strategy evaluation C) Strategy implementation D) Strategic management Answer: D

Learning Objective 2;

T&F Questions.

1. A vision statement identifies the scope of a firm's operations in product and market terms. Answer: FALSE
2. 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
3. The final stage in strategic management is strategy implementation. Answer: FALSE
4. 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
5. One of the fundamental strategy evaluation activities is reviewing external and internal factors that are the basis for current strategies. Answer: TRUE

Learning Objective 3

T&F Questions

1. An objective, logical, systematic approach for making major decisions in an organization is a way to describe the strategic-management process. Answer: TRUE
2. 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.
3. Analytical and intuitive thinking should complement each other. Answer: TRUE
4. According to Albert Einstein, "Knowledge is far more important than intuition." Answer: FALSE
5. Management by intuition can be defined as operating from the "I've-already-made-up-mymind- don'tbother- me-with-the-facts mode." Answer: FALSE
6. By occasionally monitoring external events, companies should be able to identify when change is required. Answer: FALSE
7. Firms, like organisms, must be "adept at adapting" or they will not survive. Answer: TRUE
8. U. firms are not being challenged in the computer industry. Answer: FALSE

MCQs

1. Which statement best describes intuition? A) It alone should be used in decision-making. B) It represents a minor factor in decision-making integrated with analysis. C) It should be coupled with analysis in decision-making. D) It is better than analysis in decision-making. Answer: C
2. In recent years, the speedy flow of information through technology has A) Made it harder for people worldwide to see how others work and live. B) Strengthened national boundaries and made countries more self-contained. C) Created a borderless world with global competitors, customers, and citizens. D) Ensured that the U. is unrivaled by other companies in all industries. Answer: C

Learning Objective 4

T&F Questions

1. Anything the firm does especially well compared to rival firms could be considered a Competitive advantage. Answer: TRUE
2. Once a firm acquires a competitive advantage, they are usually able to sustain the competitive advantage indefinitely. Answer: FALSE
3. 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. 4) Although e-commerce has increased in popularity, it has actually led to increases in company expenses. Answer: FALSE 5) While the number of people shopping online has increased, the average amount spent online has decreased. Answer: FALSE 6) 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 7) Most traditional retailers have tried in vain to use their online sales to boost in-store sales. Answer: FALSE 8) 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 9) Strategists are usually found in higher levels of management and have considerable authority for decision-making in the firm. Answer: TRUE 10) The middle manager is the most visible and critical strategic manager. Answer: FALSE 11) All strategists have similar attitudes, values, ethics and concerns for social responsibility. Answer: FALSE 12) A vision statement answers the question, "What is our business?" whereas a mission statement answers, "What do we want to become?" Answer: FALSE 13) 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. 14) A clear mission statement describes the values and priorities of an organization. Answer: TRUE. 15) Strengths and weaknesses are determined relative to competitors. Answer: TRUE 16) In a multidivisional firm, objectives should be established for the overall company but not for each division. Answer: FALSE 17) Objectives should be measurable, challenging, reasonable, consistent, and clear. Answer: TRUE 18) Annual objectives are long-term milestones that organizations must achieve to reach short term objectives. Answer: FALSE 19) Annual objectives are especially important in strategy formulation. Answer: FALSE 20) According to research, a healthier workforce can more effectively and efficiently implement strategies. Answer: TRUE 21) Identifying an organization's existing vision, mission, objectives, and strategies is the final step for the strategic management process. Answer: FALSE 22) Once an effective strategy is designed, modifications are rarely required. Answer: FALSE. 23) Application of the strategic-management process is typically more formal in larger and well established organizations.

1. Which is generally considered to be the first step in strategic planning? A) Developing a vision statement. B) Establishing goals and objectives. C) Making a profit. D) Developing a mission statement. Answer: A
2. What are enduring declarations of purpose that distinguish one business from other similar firms? A) Policies. B) Mission statements. C) Objectives. D) Rules. Answer: B
3. An organization's vision statement A) Is a constant reminder to its employees of why the organization exists. B) Broadly charts the future direction of an organization. C) Addresses the basic question: "What is our business?" D) Answers the question: "What do we want to become?" Answer: D
4. Generally, external opportunities and threats are A) uncontrollable by a single organization. B) Unable to have a significant impact on an organization. C) Not worth monitoring and evaluating. D) Key functions in strategy implementation. Answer: A
5. Specific results an organization seeks to achieve in pursuing its basic mission are A) strategies. B) Rules. C) Objectives. D) Policies. Answer: C
6. Internal ________ are controllable activities in an organization that are performed especially well. A) Opportunities. B) Incompetencies. C) Strengths. D) Objectives. Answer: C
7. What are the means by which long-term objectives will be achieved? A) Strategies. B) Strengths. C) Weaknesses. D) Policies. Answer: A
8. Long-term objectives should be all of the following EXCEPT A) measurable. B) Continually changing. C) Reasonable. D) Challenging. E) Consistent. Answer: B
9. Annual objectives are especially important in strategy A) reduction. B) Formulation. C) Implementation. D) Evaluation.

Answer: C 18) In which phase of strategic management are long-term objectives especially important? A) Formulation. B) Control. C) Evaluation. D) Implementation. Answer: A 19) What are guides to decision making called? A) Strategies. B) Rules. C) Policies. D) Objectives. Answer: C 20) The strategic-management process A) occurs once a year. B) Is a semiannual process. C) Is a continuous process. D) Applies mostly to companies with sales greater than $100 million. Answer: C

Learning Objective 5

T&F Questions.

1. Commitment and understanding are the most important benefits of strategic management. Answer: TRUE
2. The best thing strategists can do is develop strategic plans themselves and then present them to operating managers to execute. Answer: FALSE
3. Firms with planning systems more closely resembling strategic-management theory generally exhibit superior long-term financial performance relative to their industry. Answer: TRUE
4. Low-performing firms typically underestimate their competitor's strengths and overestimate their own firm's strengths. Answer: TRUE
5. According to Greenley, strategic management provides increased discipline, enhanced communication, and more effective allocation of time and resources. Answer: TRUE
6. The lack of monetary rewards is one reason managers do not engage in strategic planning. Answer: TRUE
7. Crises and firefighting in an organization give managers the extra time needed to plan ahead. Answer: FALSE
8. Making many intuitive decisions that conflict with the formal plan is one pitfall to avoid in strategic planning. Answer: TRUE
9. Managers must be very formal in strategic planning because formality fosters flexibility and creativity. Answer: FALSE
10. Many organizations mistakenly spend more time and effort on the implementation of a plan, than on the formulation of the plan itself. Answer: FALSE
11. 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: C 5) According to research, organizations using strategic management are ________ than those that do not. A) More profitable. B) More complex. C) Less profitable. D) Less successful. Answer: A 6) According to Greenley, strategic management offers all of the following benefits EXCEPT A) increased discipline. B) Enhanced communication. C) Increased synergy. D) increased resistance to change. Answer: D 7) Which of the following is NOT a reason given for poor or no strategic planning in an organization? A) Planning is viewed as a waste of time. B) Content with current success. C) Too busy "firefighting" to plan ahead. D) No monetary rewards for planning. E) Trust of management makes it unnecessary. Answer: E 8) All of these are pitfalls an organization should avoid in strategic planning EXCEPT A) using plans as a standard for measuring performance. B) Using strategic planning to gain control over decisions and resources. C) Failing to involve key employees in all phases of planning. D) Too hastily moving from mission development to strategy formulation. E) Being so formal in planning that flexibility and creativity are stifled. Answer: A 9) Which of the following is NOT a pitfall an organization should avoid in strategic planning? A) Failing to communicate the plan to employees. B) Involving all managers rather than delegating planning to a "planner". C) Top managers not actively supporting the strategic-planning process. D) Doing strategic planning only to satisfy accreditation or regulatory requirements. Answer: B 10) Which of the following statements is NOT true? A) Open-mindedness is an important guideline for effective strategic management. B) Strategic management must become a self-perpetuating bureaucratic mechanism. C) No organization has unlimited resources. D) Strategic decisions require trade-offs. Answer: B 11) All of the following are guidelines for effective strategic planning EXCEPT A) it should be simple and nonroutine. B) It should be a learning process for all managers and employees. C) It should be a paper process more than a people process. D) It should not disregard qualitative information. Answer: C 12) What is NOT a guideline given for effective strategic planning? A) Continually strengthen the "good ethics is good business" policy. B) It should not include jargon or arcane planning language. C) It should not be too formal, predictable, or rigid. D) It should welcome bad news. E) It should be controlled by "technicians." Answer: E 13) Which of the following statements is FALSE? A) No organization can pursue all the strategies that potentially could benefit the firm.

B) Most organizations today recognize that strategic-management concepts and techniques can enhance the effectiveness of decisions. C) A key role of strategists is to facilitate continuous organizational learning and change. D) Effective strategic planning should accept the assumptions underlying the current corporate strategy. Answer: D 14) Terms such as objectives, mission, strengths, and weaknesses were first formulated to address problems A) on the battlefield. B) In the boardroom. C) On the trading floor. D) In the military hierarchy. Answer: A 15) According to Webster's New World Dictionary, ________ is "the science of planning and directing large-scale military operations, of maneuvering forces into the most advantageous position prior to actual engagement with the enemy." A) Competitive advantage. B) War. C) Strategy. D) Formulation. Answer: C 16) Business or military success is A) generally the happy result of accidental strategies. B) Undermined by the element of surprise. C) The product of both attention to changing external and internal conditions and the insightful adaptations to those conditions. D) Unrelated to external conditions. Answer: C 17) Superior strategy formulation and implementation ________ an opponent's superiority in numbers and resources. A) Are irrelevant to. B) Are not enough to surmount. C) Can overcome. D) Can lead to. Answer: C 18) A strong ________ heritage underlies the study of strategic management. A) Military. B) Government. C) Political D) Social. Answer: A 19) Military strategy is based on an assumption of ________, whereas business strategy is based on an assumption of ________. A) Conflict; cooperation. B) Conflict; competition. C) Cooperation; conflict. D) Competition; conflict. Answer: B 20) Both business and military organizations must ________ and ________ to be successful. A) Be impervious to change; continually improve. B) Adapt to change; continually improve. C) Shun change; stay the course. D) Be impervious to change; stay the course. Answer: B 21) The strategic-management process is becoming more widely used by A) small firms.

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