Strategic Management: A Competitive Advantage Approach, 16e, Global Edition David

Strategic Management: A Competitive Advantage Approach, 16e, Global Edition (David) Chapter 1 Strategic Management Essentials 1) The goal of strategic management is to

• achieve competitive advantage.
• maintain competitive advantage.
• achieve and maintain competitive advantage.
• eliminate competitive advantage.
• eliminate and abolish competitive advantage.

Answer: C

Diff: 2

LO: 1.1: Describe the strategic-management process.

AACSB: Analytical thinking

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 Diff: 2 LO: 1.1: Describe the strategic-management process.

AACSB: Written and oral communication

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 E) Strategic leading Answer: D Diff: 1 LO: 1.1: Describe the strategic-management process.

AACSB: Written and oral communication

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4) In recent years, the speedy flow of information through technology has

• made it harder for people worldwide to see how others work and live.
• strengthened national boundaries and made countries more self-contained.
• created a borderless world with global competitors, customers, and citizens.
• ensured that the United States is unrivaled by other companies in all industries.
• made the real flow of financial activity align with political boundaries between countries.

Answer: C

Diff: 2

LO: 1.1: Describe the strategic-management process.

AACSB: Written and oral communication

5) The strategic-management process is becoming more widely used by

• small firms.
• nonprofit institutions.
• governmental organizations.
• multinational conglomerates.
• all of the above

Answer: E

Diff: 2

LO: 1.1: Describe the strategic-management process.

AACSB: Written and oral communication

6) An organization should take a(n) ________ approach in its industry.

• adversarial rather than a collegial
• collegial rather than an adversarial
• reactive rather than a proactive
• proactive rather than a reactive
• cooperative rather than a competitive

Answer: D

Diff: 2

LO: 1.1: Describe the strategic-management process.

AACSB: Written and oral communication

7) The strategic-management process represents a(n) ________, ________, and ________ approach for determining an enterprise's future direction.

• logical; systematic; subjective
• intuitive; disorganized; subjective
• logical; systematic; objective
• intuitive; disorganized; objective
• inconsistent; systematic; subjective

Answer: C

Diff: 2

LO: 1.1: Describe the strategic-management process.

AACSB: Written and oral communication

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8) 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

9) 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

Diff: 1

LO: 1.1: Describe the strategic-management process.

AACSB: Written and oral communication

10) Optimizing for tomorrow the trends of today is the purpose of strategic management.

Answer: FALSE

Diff: 2

LO: 1.1: Describe the strategic-management process.

AACSB: Written and oral communication

11) U.S. firms are not being aggressively challenged in the computer industry.

Answer: FALSE

Diff: 2

LO: 1.1: Describe the strategic-management process.

AACSB: Analytical thinking

12) 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

Diff: 2

LO: 1.1: Describe the strategic-management process.

AACSB: Written and oral communication

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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14) Firms, like organisms, must be "adept at adapting" or they will not survive.

Answer: TRUE

Diff: 2

LO: 1.1: Describe the strategic- management process.

AACSB: Written and oral communication

15) Once an effective strategy is designed, modifications are rarely required.

Answer: FALSE

Diff: 2

LO: 1.1: Describe the strategic-management process.

AACSB: Analytical thinking

16) 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: Written and oral communication

17) To be effective, strategic-management must be a process that familiarizes managers and employees with the key strategic issues facing an organization and the feasible alternatives for resolving those issues.

Answer: TRUE

Diff: 3

LO: 1.1: Describe the strategic-management process.

AACSB: Analytical thinking

18) The most effective strategic management is ritualistic, predictable, and formal.

Answer: FALSE

Diff: 3

LO: 1.1: Describe the strategic-management process.

AACSB: Analytical thinking

19) All firms have a strategy, even if it is informal, unstructured, and sporadic.

Answer: TRUE

Diff: 2

LO: 1.1: Describe the strategic-management process.

AACSB: Written and oral communication

20) Despite its great popularity in the 1980s, strategic planning by corporate America is now a valuable though rare activity.

Answer: FALSE

Diff: 2

LO: 1.1: Describe the strategic-management process.

AACSB: Analytical thinking

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