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Strategic management consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. True False. 3. The three interrelated and principal activities of strategic management are: strategy analysis, strategy formulation, and strategy implementation. True False. 4. According to the textbook, strategic management does not consist of the analyses that an organization undertakes in order to create and sustain competitive advantages. True False. 5. Management innovations such as total quality, just- in- time, benchmarking, business process reengineering, and outsourcing are important, but not enough for building sustainable competitive advantage. True False. 6. Strategic management recognizes the trade- offs between effectiveness and efficiency. True False. 7. According to Henry Mintzberg, a management scholar, most firms realize their original intended strategy. True False. 8. According to the text, formulating strategy includes taking into consideration strategy at the business, corporate, and international levels. True False. 9. Business- level strategy focuses on (1) what businesses to compete in, and (2) the management of the business portfolio to create synergy among its businesses. True False. 10. Corporate- level strategy addresses how firms compete and outperform their rivals as well as achieve and sustain competitive advantages. True False. 11. Effective leadership can play a large role in fostering corporate entrepreneurship. Corporate entrepreneurship can have a very positive impact on the bottom line of a firm. True False. 12. The three primary participants in corporate governance are: (1) the shareholders, (2) the management (led by the chief executive officer), and (3) the employees. True False. 13. Decisions by boards of directors are always consistent with shareholder interests. True False. 14. Former Chrysler vice chairman Robert Lutz observed that companies exist to serve the shareholder and create shareholder value. He insisted that the only person who owns the company is the person who paid good money for it. This is an example of a symbiotic approach to stakeholder management. True False. 15. Stockholders in a company are the only individuals with an interest in the financial performance of the company. True False. 16. Stockholders, employees, and the community- at- large are among the stakeholders of a firm. True False. 17. Symbiosis is the ability to recognize interdependencies among the interests of multiple stakeholders within and outside an organization. True False. 18. Procter and Gamble developed a laundry detergent compaction technique that appeals to consumers, retailers, shipping and wholesalers, and environmentalists. This is an example of stakeholder symbiosis. True False. 19. Social responsibility is the idea that organizations are not only accountable to stockholders but also to the community- at- large. True False. 20. The concept of shared value redefines the purpose of the corporation as creating shared value in order to create a more even distribution of the profits to all employees, not just top level executives. True False. 21. Shell, NEC, and Procter and Gamble have been measuring their performance according to what has been called a triple bottom line. This technique involves an assessment of financial, social, and environmental performance. True False. 22. The strategic management process should be addressed only by top- level executives. Mid- level and low- level employees are best equipped to implement the strategies of the organization. True False. 23. The vision of an organization is the top level of its hierarchy of organizational goals. The vision statement should be massively inspiring, overarching, and long term. True False. 24. Strategic objectives are more specific than vision statements. True False. 25. According to the text, a mission statement is an overarching statement that is massively inspiring, long term, and only discusses the purpose of the company. True False. 26. A mission statement encompasses both the purpose of the organization as well as its basis of competition, and the basis of its competitive advantage. True False. 27. Some excellent examples of mission statements are: To be the happiest place on earth (Disneyland) and Restoring patients to full life (Medtronic). True False. 28. Strategic objectives should be measurable, specific, appropriate, and realistic, but not constrained by time deadlines. True False. 29. Much research has supported the notion that individuals work much harder when they are asked to do their best rather than when they are striving toward a specific goal. True False. 30. Objectives in organizations should be clear, stated, and known by employees throughout the organization. True False. 31. Strategic management should only include short- term objectives. Long- term objectives are covered in the vision statement of the organization. True False. 32. Organizational goals and objectives should be vague in order to allow for changes in strategy. True False. 33. The text addresses two perspectives of leadership as well as their implications. These two perspectives are: A. A CEO made a lot of mistakes in assessing the market and the competitive conditions and improperly redesigning the organization into numerous business units. Such errors led to significant performance declines. According to the text, this example illustrates the . According to the text, the strategic management process entails three ongoing processes: A. Management innovations such as total quality, benchmarking, and business process reengineering cannot lead to sustainable competitive advantage because: A. The organizational versus the individual rationality perspective suggests that: A. The four key attributes of strategic management include the idea that: A. The four key attributes of strategic management include all of the following EXCEPT: A. Effectiveness is often defined as: A. All of the following are ambidextrous behaviors EXCEPT: A. According to Henry Mintzberg, the realized strategies of a firm: A. According to Henry Mintzberg, decisions following from the strategic analysis of the firm are its: A. Corporate entrepreneurship. C. Organizational design. Corporate governance. B. Corporate- level strategy. C. Strategy implementation. D. Business- level strategy. The three participants in corporate governance are: A. While working to prioritize and fulfill their responsibilities, members of the board of directors of an organization should: A. Members of boards of directors are: A. |
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