Question 1

Corporate level strategy focuses on what businesses to compete in and

Accepted Answer

A)   how business can be managed to achieve synergy.
B)   how business can be managed to reduce synergy.
C)   how the firm can work as a stand-alone entity.
D)   how the firm can create more value by operating alone.E) A) and B)
F) B) and C)

Question 2

The hierarchy of organizational goals is in the following order (least specific to most specific) :

Accepted Answer

A)   vision statements, strategic objectives, mission statements.
B)   mission statements, strategic objectives, vision statements.
C)   vision statements, mission statements, strategic objectives.
D)   mission statements, vision statements, strategic objectives.E) A) and C)
F) A) and D)

Question 3

Ensuring effective corporate governance requires an effective and engaged board of directors,uninvolved shareholders,and proper managerial rewards and incentives.

Accepted Answer

A) True 
 B)False

Question 4

To inculcate a strategic management perspective,managers must create management ________ to foster change.

Accepted Answer

A)   processes
B)   buy-back
C)   structures
D)   edictsE) A) and D)
F) B) and C)

Question 5

For strategic management to be effective in achieving organizational goals,

Accepted Answer

A)   people throughout the organization must work in isolation.
B)   top managers only take an integrative, strategic perspective.
C)   leaders alone are responsible for the organizational outcome.
D)   people throughout the organization must strive toward overall goals.E) None of the above
F) A) and B)

Question 6

Many organizations have a large number of functional areas with very diverse and sometimes competing interests.Such organizations will be most effective if

Accepted Answer

A)   each functional area focuses on achieving their own goals.
B)   goals are defined at the bottom and implemented at the top.
C)   functional areas work together to attain overall goals.
D)   management and employees have separate goals.E) A) and D)
F) None of the above

Question 7

There are several perspectives of competition.One perspective is zero-sum thinking.Zero-sum thinking means that

Accepted Answer

A)   all parts of the organization gain at no loss.
B)   in order for someone to gain others must experience no gain or benefit.
C)   one can only gain at the expense of someone else.
D)   everyone in the organization shares gains and losses equally.E) A) and B)
F) None of the above

Question 8

Two types of strategic control that firms must exercise for good strategy implementation are

Accepted Answer

A)   informational and confrontational.
B)   confrontational and behavioral.
C)   behavioral and financial.
D)   informational and behavioral.E) None of the above
F) All of the above

Question 9

While working to prioritize and fulfill their responsibilities,members of the board of directors of an organization should

Accepted Answer

A)   represent their own interests.
B)   represent the interests of the shareholders.
C)   direct all actions of the CEO.
D)   emphasize the importance of short-term goals.E) A) and D)
F) C) and D)

Question 10

The four key attributes of strategic management include the idea that strategy must

Accepted Answer

A)   be directed toward overall organizational goals and objectives.
B)   be focused only on long-term objectives.
C)   be focused on only one specific area of an organization.
D)   focus only on competitor strengths.E) None of the above
F) All of the above

Question 11

The three primary participants in corporate governance are: (1)the shareholders,(2)the management (led by the chief executive officer),and (3)the employees.

Accepted Answer

A) True 
 B)False

Question 12

Netflix inculcates a strategic management perspective by

Accepted Answer

A)   emphasizing transparency.
B)   creating an environment of non-sharing.
C)   obliging a top-down management style.
D)   training only high potential employees.E) All of the above
F) A) and B)

Question 13

Trade-off decisions between effectiveness and efficiency are important in the practice of strategic management.

Accepted Answer

A) True 
 B)False

Question 14

In large organizations,the potential exists for different parts of an organization to pursue its own goals rather than the overall company goals.Proper ________ can help to resolve conflicts when they arise.

Accepted Answer

A)   mission statements
B)   vision statements
C)   organization structure
D)   objectivesE) A) and D)
F) None of the above

Question 15

Internal networks generate their power through the ________ of their ideas.

Accepted Answer

A)   validity and correctness
B)   conviction and clarity
C)   validation and recognition
D)   approval and awarenessE) All of the above
F) B) and D)

Question 16

Richard Branson,founder of the Virgin Group,empowers his companies through a(n) ________ structure in which anyone can bring forth new ideas.

Accepted Answer

A)   formal
B)   hierarchal
C)   multi-level
D)   informalE) A) and B)
F) None of the above

Question 17

Although such visions cannot be accurately measured by a specific indicator of how well they are being achieved,they do provide a fundamental statement of the ________ of an organization.

Accepted Answer

A)   values, aspirations, and goals
B)   expected returns and limitations
C)   outstanding debt
D)   credibilityE) C) and D)
F) A) and D)

Question 18

Richard Branson,the founder of the Virgin Group,is well known for creating an inclusive organizational structure in which anybody in the organization can be involved in generating and acting on new business ideas.

Accepted Answer

A) True 
 B)False

Question 19

Fortune Brands states they will cut corporate overhead costs by $30 million a year.This is an example of a

Accepted Answer

A)   nonfinancial strategic objective.
B)   financial strategic objective.
C)   vision statement.
D)   mission statement.E) B) and D)
F) B) and C)

Question 20

The text argues that a strategic perspective in an organization should be emphasized

Accepted Answer

A)   at the top of the organization.
B)   at the middle of the organization.
C)   throughout the organization.
D)   from the bottom up.E) B) and C)
F) A) and B)

Exam 1: Strategic Management: Creating Competitive Advantages

Internal networks generate their power through the ________ of their ideas.

Correct AnswerverifiedShow Answer

Richard Branson,founder of the Virgin Group,empowers his companies through a(n) ________ structure in which anyone can bring forth new ideas.

Correct AnswerverifiedShow Answer

The hierarchy of organizational goals is in the following order (least specific to most specific) :

Correct AnswerverifiedShow Answer

The text argues that a strategic perspective in an organization should be emphasized

Correct AnswerverifiedShow Answer

Corporate level strategy focuses on what businesses to compete in and

Correct AnswerverifiedShow Answer

Many organizations have a large number of functional areas with very diverse and sometimes competing interests.Such organizations will be most effective if

Correct AnswerverifiedShow Answer

Two types of strategic control that firms must exercise for good strategy implementation are

Correct AnswerverifiedShow Answer

For strategic management to be effective in achieving organizational goals,

Correct AnswerverifiedShow Answer

Although such visions cannot be accurately measured by a specific indicator of how well they are being achieved,they do provide a fundamental statement of the ________ of an organization.

Correct AnswerverifiedShow Answer

To inculcate a strategic management perspective,managers must create management ________ to foster change.

Correct AnswerverifiedShow Answer

The four key attributes of strategic management include the idea that strategy must

Correct AnswerverifiedShow Answer

Trade-off decisions between effectiveness and efficiency are important in the practice of strategic management.

Correct AnswerverifiedShow Answer

There are several perspectives of competition.One perspective is zero-sum thinking.Zero-sum thinking means that

Correct AnswerverifiedShow Answer

While working to prioritize and fulfill their responsibilities,members of the board of directors of an organization should

Correct AnswerverifiedShow Answer

Richard Branson,the founder of the Virgin Group,is well known for creating an inclusive organizational structure in which anybody in the organization can be involved in generating and acting on new business ideas.

Correct AnswerverifiedShow Answer

Fortune Brands states they will cut corporate overhead costs by $30 million a year.This is an example of a

Correct AnswerverifiedShow Answer

The three primary participants in corporate governance are: (1)the shareholders,(2)the management (led by the chief executive officer),and (3)the employees.

Correct AnswerverifiedShow Answer

In large organizations,the potential exists for different parts of an organization to pursue its own goals rather than the overall company goals.Proper ________ can help to resolve conflicts when they arise.

Correct AnswerverifiedShow Answer

Netflix inculcates a strategic management perspective by

Correct AnswerverifiedShow Answer

Ensuring effective corporate governance requires an effective and engaged board of directors,uninvolved shareholders,and proper managerial rewards and incentives.

Correct AnswerverifiedShow Answer

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