Concepts in Strategic Management and Business Policy Globalization, Innovation and Sustainability, 15th Edition By Thomas L Wheelen
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Strategic Management and Business Policy, 15e (Wheelen et al.) Chapter 1 Basic Concepts in Strategic Management 1) The emphasis of strategic management is on 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. Answer: A Difficulty: Easy Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 2) Research suggests that strategic management evolves through four sequential phases in corporations. The first phase is A) externally oriented planning. B) basic financial planning. C) internally oriented planning. D) forecast-based planning. E) strategic management. Answer: B Difficulty: Easy Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 3) The time horizon involved with regard to basic financial planning is usually A) one year. B) one quarter. C) three to five years. D) less than one month. E) five to ten years. Answer: A Difficulty: Easy Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 4) A difference between basic financial planning and forecast-based planning is A) the time horizon is shorter in forecast-based planning. B) forecast-based planning incorporates environmental data and extrapolates current trends. C) basic financial planning utilizes consultants with sophisticated techniques. D) basic financial planning utilizes scenarios and contingency strategies. E) basic financial planning relies heavily on input from lower levels in the organization. Answer: B Difficulty: Moderate Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Analytical thinking 1 .
5) Top-down planning that emphasizes formal strategy formulation and leaves the implementation issues to lower management levels is known as A) forecast-based planning. B) externally oriented planning. C) strategic management. D) basic financial planning. E) none of the above Answer: B Difficulty: Moderate Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 6) In the final phase of strategic management, strategic information is available to A) people throughout the organization. B) the top management responsible for decision-making. C) middle management. D) operational personnel. E) only those responsible for implementing the strategy. Answer: A Difficulty: Moderate Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 7) In a survey of 50 corporations, which of the following was rated as one of the three top benefits of strategic management? A) clearer sense of strategic vision for the firm B) higher levels of employee motivation C) higher levels of job satisfaction D) improved productivity E) lower employee turnover Answer: A Difficulty: Moderate Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 8) When an organization is evaluating its strategic position, which is not one of the strategic questions that an organization generally may ask itself? 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? Answer: B Difficulty: Moderate Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Analytical thinking 2 .
9) Research of the planning practices of companies in the oil industry concludes that the real value of modern strategic planning is more in the ________ that is part of a future-oriented planning process than in any resulting written strategic plan. A) planning B) strategic thinking and organizational learning C) resulting written strategic plan D) formality of the process E) improved communication within the organization Answer: B Difficulty: Difficult Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 10) Strategic planning within a small organization A) may be informal and irregular. B) must be elaborate to allow for future growth. C) should always be formalized and explicitly stated. D) should be done by the president only. E) is unnecessary and a waste of time. Answer: A Difficulty: Moderate Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 11) Strategic planning in a multidivisional corporation A) should be informal to allow complete understanding by the many participants. B) should be instigated only from the main corporate office. C) should be accomplished quickly to decrease the likelihood of it becoming outdated. D) should encourage a clear delineation between top management and lower-level managers. E) should be a formalized and sophisticated system. Answer: E Difficulty: Moderate Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 12) Strategic management is the set of managerial decisions that determines the short-term performance of a corporation. Answer: FALSE Difficulty: Easy Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge
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13) In the externally oriented planning phase, plans are developed by heavily involving the input of managers from lower levels. Answer: FALSE Difficulty: Moderate Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 14) General Electric led the transition from strategic planning to strategic management during the 1980s. Answer: TRUE Difficulty: Easy Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 15) One of the benefits of strategic management is a clearer sense of strategic vision for the firm. Answer: TRUE Difficulty: Moderate Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Analytical thinking 16) To be effective, strategic management must be a formal process. Answer: FALSE Difficulty: Difficult Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Analytical thinking 17) What are the benefits of strategic management? Answer: The three most highly rated benefits of strategic management are: 1. Clearer sense of strategic vision for the organization 2. Sharper focus on what is strategically important 3. Improved understanding of a rapidly changing environment Difficulty: Moderate Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 18) The integrated internationalization of markets and corporations is called A) normalization. B) economic integration. C) globalization. D) nationalization. E) regionalization. Answer: C Difficulty: Easy Learning Obj.: 1.2: Explain how globalization, innovation, and environmental sustainability influence strategic management AACSB: Application of knowledge 4 .