Business Strategies Quiz 1, Week 1, Chapters 1 & 2
Name___________________________________
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
1) Strategic management focuses on integrating management, marketing, finance
and accounting, production and operations, research and development, and
information systems to achieve organizational success.
1) _____
2) Optimizing for tomorrow the trends of today is the purpose of strategic
management.
2) _____
3) The final stage in strategic management is strategy implementation.
3) _____
4) An objective, logical, systematic approach for making major decisions in an
organization is a way to describe the strategic-management process.
4) _____
5) Newspaper companies in the United States provide a good example of how a
company can sustain a competitive advantage over the long-term.
5) _____
6) Firms with planning systems more closely resembling strategic-management
theory generally exhibit superior long-term financial performance relative to
their industry.
6) _____
MULTIPLE CHOICE. Choose the one alternative that best completes the
statement or answers the question.
7) The goal of strategic management is to
7) _____
A) eliminate and abolish competitive advantage.
B) achieve and maintain competitive advantage.
C) eliminate competitive advantage.
D) achieve competitive advantage.
E) maintain competitive advantage.
8) During what stage of strategic management are a firm's specific internal
strengths and weaknesses determined?
8) _____
A) Implementation
B) Formulation
C) Feedback
D) Goal-setting
E) Evaluation
9) In recent years, the speedy flow of information through technology has
9) _____
A) created a borderless world with global competitors, customers, and citizens.
B) made it harder for people worldwide to see how others work and live.
C) made the real flow of financial activity align with political boundaries between countries.
D) strengthened national boundaries and made countries more self-contained.
E) ensured that the U.S. is unrivaled by other companies in all industries.
10) There is a dramatic shift in mass retailing to
10) _____
A) opening dramatically larger supercenters.
B) "trading up" and taking customers from more exclusive stores.
C) operating stores with less square footage.
D) cutting back on their online presence.
E) selling only the most expensive merchandise.
11) Generally, external opportunities and threats are
11) _____
A) unable to have a significant impact on an organization.
B) key functions in strategy exploitation.
C) uncontrollable by a single organization.
D) key functions in strategy implementation.
E) not worth monitoring and evaluating.
12) Which of the following is part of the strategic management model?
12) _____
A) Establish long-term objectives
B) Implement strategies
C) Measure and evaluate performance
D) Develop mission and vision statements
E) All of the above
ESSAY. Write your answer in the space provided or on a separate sheet of
paper.
13) Give at least seven reasons given for why some firms do no strategic planning.
14) Which stage in the strategic-management process is most difficult? Explain why.
15) Discuss the importance of the implementation phase of strategic management.
16) Discuss the value of integrating intuition and analysis.
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
17) The foundation for development of a comprehensive mission statement is
provided by a clear vision.
17) _____
18) If an organization chooses to have both a mission and a vision, the mission
statement should be established first.
18) _____
19) Carefully prepared statements of vision and mission are widely recognized
as the first step in strategic management.
19) _____
20) A firm's philosophy in a mission statement addresses the question, "What is
the firm's distinctive competence?"
20) _____
21) Well-conceived and properly executed mission and vision statements do not
need to be subject to revision.
21) _____
22) A good mission statement serves as a framework for evaluating both current
and prospective activities.
22) _____
MULTIPLE CHOICE. Choose the one alternative that best completes the
statement or answers the question.
23) The ideal length of a vision statement is
23) _____
A) one sentence.
B) as long as is necessary to convey the message.
C) one page.
D) several sentences.
E) several paragraphs.
24) The purpose of a mission statement is to declare all of these EXCEPT
24) _____
A) an annual financial plan.
B) a statement of beliefs.
C) a reason for being.
D) a statement of purpose.
E) whom it wants to serve.
25) Which basic question should the vision statement answer?
25) _____
A) What is our business?
B) How can we improve ourselves?
C) How can we increase profitability?
D) Who are our stakeholders?
E) What do we want to become?
26) What can be used to promote unbiased views and to manage the
development of the mission statement more effectively?
26) _____
A) Surveys
B) An internal group
C) Command-and-control
D) An outside facilitator
E) A committee of managers
27) Businessweek reports that firms using mission statements have a ________
percent higher return on certain financial measures than those without such
statements.
27) _____
A) 45 B) 50 C) 15 D) 10 E) 30
28) All stakeholders' claims on an organization ________ pursued with equal
emphasis.
28) _____
A) should always be
B) cannot be
C) can usually be
D) must ideally be
E) are required to be
ESSAY. Write your answer in the space provided or on a separate sheet of
paper.
29) Describe why a mission statement is so important in the strategic-management process.
30) List and define the major components of an effective mission statement.
31) Explain what it means for a mission statement to have a customer orientation.
32) Explain the process of developing a mission statement.