Question 1

The emphasis of strategic management is on

Accepted Answer

A)   long-term performance.
B)   first line managers.
C)   the short-run performance of the corporation.
D)   an examination of the organization's internal environment.
E)   an investigation of competitor actions.

Question 2

What are the benefits of strategic management?

Accepted Answer

The three most highly rated benefits of ...

Question 3

When an organization is evaluating its strategic position,which is not one of the strategic questions that an organization generally may ask itself?

Accepted Answer

A)   Where is the organization now?
B)   Are we on target to hit our financial objectives next year?
C)   If no changes are made, where will the organization be in one year?
D)   If the evaluation is negative, what specific actions should management take?
E)   If no changes are made, where will the organization be in 10 years?

Question 4

Define globalization and identify the role of strategic management in globalization.

Accepted Answer

Globalization is the internationalizatio...

Question 5

The process by which strategies and policies are put into action through the development of programs,budgets,and procedures is

Accepted Answer

A)   strategy formulation.
B)   strategy control.
C)   strategy implementation.
D)   strategy development.
E)   strategy evaluation.

Question 6

Research done by Henry Mintzberg suggests that strategy formulation

Accepted Answer

A)   is typically an irregular and a discontinuous process.
B)   should be followed unswervingly to ensure success of the plan.
C)   is a process to which organizations find they must make significant yearly changes.
D)   should be reviewed after a specific interval of time to make sure it is still applicable.
E)   is merely a checklist of actions following a logical process.

Question 7

Top-down planning that emphasizes formal strategy formulation and leaves the implementation issues to lower management levels is known as

Accepted Answer

A)   forecast-based planning.
B)   externally oriented planning.
C)   strategic management.
D)   basic financial planning.
E)   none of the above

Question 8

General Electric led the transition from strategic planning to strategic management during the 1980s.

Accepted Answer

A) True 
 B)False

Question 9

Research suggests that strategic management evolves through four sequential phases in corporations.The first phase is

Accepted Answer

A)   externally oriented planning.
B)   basic financial planning.
C)   internally oriented planning.
D)   forecast-based planning.
E)   strategic management.

Question 10

Which approach to decision-making is most useful when the environment is changing rapidly and when it is important to build consensus and develop needed resources before committing the entire corporation to a specific strategy?

Accepted Answer

A)   planning mode
B)   entrepreneurial mode
C)   logical incrementalism
D)   adaptive mode
E)   strategic flexibility mode

Question 11

What is a strategic decision and what are its three characteristics?

Accepted Answer

A strategic decision deals with the long...

Question 12

Strategic management is the set of managerial decisions that determines the short-term performance of a corporation.

Accepted Answer

A) True 
 B)False

Question 13

The time horizon involved with regard to basic financial planning is usually

Accepted Answer

A)   one year.
B)   one quarter.
C)   three to five years.
D)   less than one month.
E)   five to ten years.

Question 14

The development of long-range plans for the effective management of environmental opportunities and threats in light of corporate strengths and weaknesses is known as

Accepted Answer

A)   strategy formulation.
B)   strategy implementation.
C)   strategy control.
D)   strategic analysis.
E)   strategy evaluation.

Question 15

All of the following reflect activities of a learning organization EXCEPT

Accepted Answer

A)   experimenting with new approaches.
B)   learning from its own experiences and past history.
C)   solving problems systematically.
D)   alienating competitors in the industry.
E)   transferring knowledge quickly and efficiently throughout the organization.

Question 16

According to Mintzberg,the entrepreneurial mode of strategy formulation

Accepted Answer

A)   is characterized by reactive solutions to existing problems.
B)   assumes major responsibilities for strategy formulation.
C)   is focused on opportunities; problems are secondary.
D)   includes the proactive search for new opportunities and reactive solutions to existing problems.
E)   assumes the environment is unresponsive to input.

Question 17

Performance results are monitored at the strategy formulation phase of the strategic management process.

Accepted Answer

A) True 
 B)False

Question 18

The S in SWOT stands for

Accepted Answer

A)   strategies.
B)   scanning.
C)   strengths.
D)   societal.
E)   sociocultural.

Question 19

The ability of an organization to reshape its environment is described by

Accepted Answer

A)   population ecology theory.
B)   institution theory.
C)   the strategic choice perspective.
D)   organizational learning theory.
E)   organizational citizenship theory.

Question 20

The organization's corporate mission statement

Accepted Answer

A)   should have a different mission statement for each subsidiary division.
B)   should be less formally stated to allow for growth.
C)   should contain explicit descriptions of their competitive advantages.
D)   should state what the organization would like to become.
E)   should describe the organization's SWOT.

Exam 1: Basic Concepts in Strategic Management

The ability of an organization to reshape its environment is described by

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What are the benefits of strategic management?

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

Define globalization and identify the role of strategic management in globalization.

Correct AnswerverifiedGlobalization is the internationalizatio...View AnswerShow Answer

The organization's corporate mission statement

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The emphasis of strategic management is on

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Research done by Henry Mintzberg suggests that strategy formulation

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The process by which strategies and policies are put into action through the development of programs,budgets,and procedures is

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What is a strategic decision and what are its three characteristics?

Correct AnswerverifiedA strategic decision deals with the long...View AnswerShow Answer

According to Mintzberg,the entrepreneurial mode of strategy formulation

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The development of long-range plans for the effective management of environmental opportunities and threats in light of corporate strengths and weaknesses is known as

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Which approach to decision-making is most useful when the environment is changing rapidly and when it is important to build consensus and develop needed resources before committing the entire corporation to a specific strategy?

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General Electric led the transition from strategic planning to strategic management during the 1980s.

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All of the following reflect activities of a learning organization EXCEPT

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The time horizon involved with regard to basic financial planning is usually

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When an organization is evaluating its strategic position,which is not one of the strategic questions that an organization generally may ask itself?

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The S in SWOT stands for

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Research suggests that strategic management evolves through four sequential phases in corporations.The first phase is

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Top-down planning that emphasizes formal strategy formulation and leaves the implementation issues to lower management levels is known as

Correct AnswerverifiedShow Answer

Strategic management is the set of managerial decisions that determines the short-term performance of a corporation.

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Performance results are monitored at the strategy formulation phase of the strategic management process.

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The three most highly rated benefits of ...
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Globalization is the internationalizatio...
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A strategic decision deals with the long...
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