Questions and Answers

1.

The term _________ is used to refer to strategy formulation, implementation,

o A.

Strategic planning; strategic management

o B.

Assessment; planning

o C.

Strategic management; strategic planning

o D.

Management cycle; brainstorming

2.

Which of these requires a firm to establish annual objectives, devise policies,

o A.

Strategy formulation

o B.

Strategy implementaion

o C.

Strategy evaluation

o D.

Strategy manipulation

3.

Anything that a firm does especially well compared to rival firms is referred to as:
 o A.

Competitive advantage.

o B.

Comparative advantage.

o C.

An external opportunity.

o D.

Opportunity cost

4.

__________ are the individuals who are most responsible for the success or
failure of an organization.

o A.

Strategists

o B.

Consultants

o C.

Operatives

o D.

Ethics Officers

5.

A disadvantage of international operations is:

Discuss

o A.

Competitors in foreign markets may not exist.

o B.
 Language, culture, and value systems differ among countries, causing communication
barriers and problems managing people.

o C.

Economies of scale can be achieved from operation in global rather than solely
domestic markets.

o D.

Foreign operations can allow firms to establish low-cost production facilities in

6.

The problem of limited resources within a firm makes ______________

o A.

Long-range planning

o B.

Short-term planning

o C.

Strategy formulation

o D.

Strategy implementation

7.

All of these are pitfalls an organization should avoid in strategic planning except:

Discuss

o A.

Using strategic planning to gain control over decisions and resources.

o B.

Failing to involve key employees in all phases of planning.

Hastily moving from mission development to strategy formulation.

o D.

Using plans as a standard for measuring performance.

8.

The process of conducting research and gathering and assimilating external

o A.

Mission development

o B.

Long range planning

o C.

Industry analysis

o D.

Lobbying

9.

The term strategic planning refers only to strategy formulation.

o A.

True

o B.

False

10.

The action stage of strategic management is called strategy formulation.

o A.

True
 o B.

False

11.

________ is the process by which a firm manages the formulation and

o A.

Total Quality Management

o B.

Strategic Management

o C.

Micro Management

o D.

Economic Logic

12.

The two most critical questions that __________ strategy must address are how
a company will achieve its objectives today, when other firms may be competing
to satisfy the same customer's needs and how the firm plans to compete in the
future.

Discuss

o A.

Corporate

o B.

Functional

o C.

Operational

o D.
 Business

13.

Which of the following is not one of the three fundamental questions addressed
by corporate strategy?

o A.

In what business will we compete?

o B.

How can we, as a corporate parent, add value to our various lines of business?

o C.

How will diversification or our entry into a new industry help us to compete in our
other industries?

o D.

How can we best position our operations to compete against present and future rivals
within a particular business?

14.

Which of the following statements regarding strategy formulation and strategy

Discuss

o A.

Neither strategy formulation, nor strategy implementation can succeed without the
other.

o B.

Strategy formulation is more important than strategy implementation.

o C.

Strategy implementation is more important than strategy formulation.

o D.
 Neither strategy formulation, nor strategy implantation can have a significant impact
on firm performance.

15.

All of the following are elements of the strategy diamond except

o A.

Vehicles

o B.

Advantages

o C.

Arenas

o D.

Staging

16.

Within the strategy diamond ______ refer(s) to decisions about the areas in
which a firm will be active including its products, services, distribution channels,
market segments, geographic areas, technologies, and even stages of the
valuecreation process

o A.

Vehicles

o B.

Arenas

o C.

Differentiators

o D.

Economic logic

17.
 The five elements of the strategy diamond are technologies, vehicles,
differentiators, staging, and economic logic.

o A.

True

o B.

False

18.

Which one is not a part of strategy formulation?

o A.

Business level strategy

o B.

Corporate level strategy

o C.

Competitive dynamics

o D.

Corporate governance

19.

Which is not a part of strategy implementation?

o A.

Strategic Leadership

o B.

Entrepreneurship & Innovation

o C.

Structure & Control

o D.
 International Strategy

20.

Which is not a part of international strategy lifecycle?

o A.

Product Demand Develops and Firm Exports Products

o B.

Firm Introduces Innovation in Domestic Market

o C.

Production Becomes Standardized and is Relocated to Low Cost Countries

o D.

Diversification Strategy