Copyright 2024 Pearson Education, Inc.

1 Copyright © 2024 Pearson Education, Inc.Strategic Management: A Competitive Advantage Approach, Concepts and Cases, 18e (David) Chapter 1 The Nature of Strategic Management 1) The goal of strategic management is to

• achieve competitive advantage
• maintain the status quo

C)achieve and maintain competitive advantage

• eliminate competitive advantage
• minimize competitive advantage

Answer: C

Diff: 2

LO: 1.1: Describe the strategic management process.

AACSB: Analytical thinking

2) Strategic management focuses on integrating functional areas to achieve organizational success. Which of the following is NOT one of the functional areas that is the focus of strategic management?

• marketing
• finance
• production
• management
• culture

Answer: E

Diff: 2

LO: 1.1: Describe the strategic management process.

AACSB: Reflective thinking

3) The art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives is defined as A)strategy formulation

• strategy evaluation
• strategy implementation
• strategic management
• strategic leadership

Answer: D

Diff: 1

LO: 1.1: Describe the strategic management process.

AACSB: Reflective thinking

Strategic Management A Competitive Advantage Approach, Concepts and Cases 18e Fred David, Forest David, Meredith David (Test Bank All Chapters, 100% Original Verified, A+ Grade) 1 / 4

2 Copyright © 2024 Pearson Education, Inc.4) To gain ________ firms need to provide unique products and services.

• a bank loan
• governmental legitimacy
• a sustainable competitive advantage
• tactical-level efficiency
• organizational effectiveness

Answer: C

Diff: 2

LO: 1.1: Describe the strategic management process.

AACSB: Analytical thinking

5) The strategic management process is

• a requirement for small firms
• not appropriate in nonprofit institutions
• not needed in governmental organizations
• not used in multinational conglomerates
• becoming more widely used by all types of organizations

Answer: E

Diff: 2

LO: 1.1: Describe the strategic management process.

AACSB: Reflective thinking

6) The strategic planning process should be driven by a firm's

• mission
• culture
• environment
• products
• values

Answer: A

Diff: 1

LO: 1.1: Describe the strategic management process.

AACSB: Reflective thinking

7) The strategic management process

• occurs once a year
• is a semiannual process
• is a continuous process
• applies mostly to companies with sales greater than $100 million
• applies mostly to small businesses

Answer: C

Diff: 3

LO: 1.1: Describe the strategic management process.

AACSB: Analytical thinking

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3 Copyright © 2024 Pearson Education, Inc.8) Optimizing the trends of today for tomorrow is the purpose of

• long-range planning
• strategic evaluation
• competitive evaluation
• competitive advantage
• strategic implementation

Answer: A

Diff: 2

LO: 1.1: Describe the strategic management process.

AACSB: Reflective thinking

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

Answer: TRUE

Diff: 1

LO: 1.1: Describe the strategic management process.

AACSB: Reflective thinking

10) Strategic management focuses on integrating management, marketing, finance, production, and information systems to achieve organizational success.

Answer: TRUE

Diff: 1

LO: 1.1: Describe the strategic management process.

AACSB: Reflective thinking

11) The strategic plan is a firm's game plan.

Answer: TRUE

Diff: 1

LO: 1.1: Describe the strategic management process.

AACSB: Reflective thinking

12) Changes in an organization's mission seldom impact other activities of the organization.

Answer: FALSE

Diff: 2

LO: 1.1: Describe the strategic management process.

AACSB: Analytical thinking

13) By occasionally monitoring external events, companies should be able to identify when change is required.

Answer: FALSE

Diff: 3

LO: 1.1: Describe the strategic management process.

AACSB: Analytical thinking

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4 Copyright © 2024 Pearson Education, Inc.14) The application of the strategic management process is typically more formal in larger and well-established organizations.

Answer: TRUE

Diff: 2

LO: 1.1: Describe the strategic management process.

AACSB: Reflective thinking

15) Continuous feedback in the strategic management process enables firms to adapt to changing conditions.

Answer: TRUE

Diff: 3

LO: 1.1: Describe the strategic management process.

AACSB: Analytical thinking

16) Greater formality in applying the strategic management process is usually negatively associated with organizational success.

Answer: FALSE

Diff: 3

LO: 1.1: Describe the strategic management process.

AACSB: Analytical thinking

17) All firms have a strategy.

Answer: TRUE

Diff: 2

LO: 1.1: Describe the strategic management process.

AACSB: Reflective thinking

18) Strategic planning by corporate America is now a rare activity in most organizations.

Answer: FALSE

Diff: 2

LO: 1.1: Describe the strategic management process.

AACSB: Analytical thinking

19) Greater formality in the application of strategic management is generally positively associated with organizational success.

Answer: TRUE

Diff: 2

LO: 1.1: Describe the strategic management process.

AACSB: Reflective thinking

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