1. Competitive advantages that are unique, valuable, and difficult for rivals to copy are likely to
make these advantages
Focused
Popular
Sustainable
Targeted
Managers need to determine how a firm is to compete so that it can obtain advantages that are
sustainable over a lengthy period of time. That means focusing on how they can create
competitive advantages in the marketplace that are unique, valuable, and difficult for rivals to
copy or substitute. That is, managers need to make such advantages sustainable, instead of
temporary.
2. Management innovations such as total quality, benchmarking, and business process
reengineering can lead to sustainable competitive advantage.
True
False
The popular management innovations of the last two decades like total quality, just-in-time,
benchmarking, business process reengineering, and outsourcing are all about operational
effectiveness. Operational effectiveness means performing similar activities better than rivals.
Each of these is important, but none lead to sustainable competitive advantage because everyone
is doing them.
3. The four key attributes of strategic management include:
Including multiple stakeholders in decision making.
Directing the organization toward overall goals and objectives.
Needing to incorporate short-term and long-term perspectives.
All of these.
Exhibit 1.1 provides a definition and the four attributes of strategic management: directing the
organization toward overall goals and objectives, including multiple stakeholders in decision
making, needing to incorporate short-term and long-term perspectives, and recognizing tradeoffs between efficiency and effectiveness.
4. Ambidexterity in a strategic context refers to a manager's challenge to:
Align resources to take advantage of existing products and explore new opportunities.
Balance one's natural instinct to think short-term with a firm's long-term sustainability.
Balance the constraints of low-cost with differentiation.
Create a synergy between personal and professional goals.
Some authors have developed the concept of "ambidexterity" which refers to a manager's
challenge to both align resources to take advantage of existing product markets as well as
proactively explore new opportunities.
5. A good manager can be flexible when it comes to sticking to the original plan; to get good
results the intended strategy does not have to become the realized strategy.
True
False
The intended strategy rarely survives in its original form. Unforeseen environmental
developments, unanticipated resource constraints, or changes in managerial preferences may
result in at least some parts of the intended strategy remaining unrealized. On the other hand,
good managers will want to take advantage of a new opportunity presented by the environment,
even if it was not part of the original set of intentions.
6. Stakeholder symbiosis is in direct contrast with ________ thinking.
Crowdsource
Emergent strategic
Entrepreneurial
Zero sum
In the "zero sum" view, the role of management is to look upon the various stakeholders as
competing for the organization's resources. In essence, the gain of one individual or group is the
loss of another individual or group. Organizations can achieve mutual benefit through
stakeholder symbiosis, which recognizes that stakeholders are dependent upon each other for
their success.
7. The three components of the __________ approach to corporate accounting include financial,
environmental, and social performance measures.
Stakeholder
Triple bottom line
Triple dimension
Triple efficiency
Many companies are now measuring what has been called a "triple bottom line." This involves
assessing financial, social, and environmental performance.
8. Where should the strategic management perspective be emphasized?
At the middle of the organization
At the top of the organization
From the bottom up in an organization
Throughout the organization
To develop and mobilize people and other assets, leaders are needed throughout the organization.
No longer can organizations be effective if the top "does the thinking" and the rest of the
organization "does the work." Everyone must be involved in the strategic management process.
9. Among the necessary leaders needed for an effective strategic management process are
________, who, although they have little positional power and formal authority, generate their
power through the conviction and clarity of their ideas.
Executive leaders
Internal networkers
Local line leaders
Triple bottom line advocates
Everyone must be involved in the strategic management process. There is a critical need for three
types of leaders, including internal networkers who, although they have little positional power
and formal authority, generate their power through the conviction and clarity of their ideas.
10. What is the hierarchy of organizational goals (least specific to most specific)?
Mission statements, vision statements, strategic objectives
Strategic objectives, mission statements, vision statements
Vision statements, strategic objectives, mission statements
Vision statements, mission statements, strategic objectives
Organizations express priorities best through stated goals and objectives that form a hierarchy of
goals, which includes its vision, mission, and strategic objectives.
11. ________ tend to be quite enduring and seldom change.
Mission statements
Strategic objectives
Vision statements
All of these
Vision statements tend to be quite enduring and seldom change. However, a firm's mission can
and should change when competitive conditions dramatically change or the firm is faced with
new threats or opportunities.