Test Bank for Strategic Management Theory and Practice 4th Edition Parnell / All Chapters 1 – 12 / Full Complete 2023

Parnell, Strategic Management: Theory and Practice 4e
I
Strategic Management Theory and Practice 4th Edition Parnell
Test Bank
Chapter 1: Fundamentals of Strategic Management

1. The term strategy refers primarily to activities at the top level of the organization.
   *a. True
   b. False
2. Managers who are too busy to engage in strategic planning should wait until they have more
   free time in their schedules.
   a. True
   *b. False
3. According to the strategic management model,strategic control occurs before strategy
   formulation.
   a. True
   *b. False
4. An effective strategy is built on the foundation of the organization’s comparative advantage, the
   mechanism whereby the organization seeks to earn a profit by selling its goods.
   a. True
   *b. False
5. Identifying a firm’s business model is rarely difficult in general terms, but can become more
   complex when intricate details are considered.
   *a. True
   b. False

Parnell, Strategic Management: Theory and Practice 4e
I

6. The gap between intended and realized strategies usually results from middle management
   ineffectiveness.
   a. True
   *b. False
7. Moststrategic managementscholars have endorsed an “artistic” perspective on strategy
   formulation.
   a. True
   *b. False
8. The industrial organization perspective on firm performance emphasizesthe fit between the firm
   and its environment.
   a. True
   *b. False
9. Resource-based theory primarily focuses on individual firms rather than the competitive
   environment.
   *a. True
   b. False
10. A firm’s ability to enjoy strategic benefits over an extended period of time is known as strategic
    positioning.
    a. True
    *b. False
11. The contingency theory perspective on firm performance emphasizesthe structure of the
    industry.
    a. True

Parnell, Strategic Management: Theory and Practice 4e
I
*b. False

12. Both industrial organization theory and resource-based theory are incorporated into the case
    analysis process.
    *a. True
    b. False
13. Corporate governance refersto the board of directors, institutional investors, and large
    shareholders known as blockholders who monitor firm strategies.
    *a. True
    b. False
14. Strategic decisions may be short-term or long-term in focus.
    a. True
    *b. False
15. The chief executive is held responsible for the effects ofstrategic decisions.
    *a. True
    b. False
16. The notion ofstrategy assumes
    a. that an organization has a plan.
    b. that an organization’sstrategic managers understand the source of its competitive advantage.
    c. that the organization’s members understand the reason for its existence.
    *d. All of the above.

Parnell, Strategic Management: Theory and Practice 4e
I

17. The notion ofstrategy assumes
    a. that experts in strategic planning are employed by the organization.
    b. that managers have time to develop formal strategic plans.
    *c. that the organizational already has a plan.
    d. All of the above.
18. The concept ofstrategic management includes
    a. top management’s analysis of the environment in which the organization operate
    b. the plan forstrategy execution
    c. strategic control efforts.
    *d. All of the above
19. Which of the following is not one of the steps in the strategic management process?
    a. Execute the strategy
    b. Control the strategy as necessary
    c. Conduct an internal analysis
    *d. All of the above are steps in the strategic management process.
20. The mechanism whereby the organization seeks to earn a profit by selling its goods is known as
    a. comparative advantage.
    b. competitive advantage.
    *c. the business model.
    d. none of the above
21. Which of the following is not a factor usually associated with an effective strategy?