Strategic Management and Business Policy: Globalization, Innovation and Sustainability 16th Edition Global Edition Test Bank Questions & Answers | Thomas L. Wheelen, J. David Hunger, Alan N. Hoffman & Charles E. Bamford | Complete Chapter-by-Chapter Exam

Test Bank
For

Strategic Management and
Business Policy:
Globalization, Innovation and
Sustainability
Sixteenth Edition, Global Edition

,Strategic Management and Business Policy, 16e, Global Edition (Wheelen)
Chapter 1 Basic Concepts of Strategic Management

1) What was strategic management originally called?
A) Business policy
B) Planning
C) Marketing strategy
D) Short-term planning
E) Operational planning
Answer: A
Difficulty: Easy
Learning Obj.: 1.1: Discuss the benefits of strategic management
AACSB: Application of knowledge

2) Research suggests that strategic management evolves through four sequential phases in
corporations. The first phase is
A) externally oriented planning.
B) b asic financial planning.
C) i nternally oriented planning.
D) forecast-based planning.
E) strategic management.
Answer: B
Difficulty: Easy
Learning Obj.: 1.1: Discuss the benefits of strategic management
AACSB: Application of knowledge

3) The time horizon involved with regard to forecast-based planning is usually
A) one year.
B) o ne quarter.
C) t hree to five years.
D) less than one month.
E) five to ten years.
Answer: C
Difficulty: Easy
Learning Obj.: 1.1: Discuss the benefits of strategic management
AACSB: Application of knowledge

4) A difference between basic financial planning and forecast-based planning is
A) the time horizon is shorter in forecast-based planning.
B) f orecast-based planning incorporates environmental data and extrapolates current trends.
C) b asic financial planning utilizes consultants with sophisticated techniques.
D) basic financial planning utilizes scenarios and contingency strategies.
E) basic financial planning relies heavily on input from lower levels in the organization.
Answer: B
Difficulty: Moderate
Learning Obj.: 1.1: Discuss the benefits of strategic management
AACSB: Analytical thinking

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,5) Top-down planning that emphasizes formal strategy formulation and leaves the
implementation issues to lower management levels is known as
A) forecast-based planning.
B) externally oriented planning.
C) strategic management.
D) basic financial planning.
E) none of the above.
Answer: B
Difficulty: Moderate
Learning Obj.: 1.1: Discuss the benefits of strategic management
AACSB: Application of knowledge

6) In the final phase of strategic management, strategic information is available to
A) people throughout the organization.
B) the top management responsible for decision-making.
C) middle management.
D) operational personnel.
E) only those responsible for implementing the strategy.
Answer: A
Difficulty: Moderate
Learning Obj.: 1.1: Discuss the benefits of strategic management
AACSB: Application of knowledge

7) In a survey of 50 corporations, which of the following was rated as one of the three top
benefits of strategic management?
A) Clearer sense of strategic direction for the firm
B) Higher levels of employee motivation
C) Higher levels of job satisfaction
D) Improved productivity
E) Lower employee turnover
Answer: A
Difficulty: Moderate
Learning Obj.: 1.1: Discuss the benefits of strategic management
AACSB: Application of knowledge

8) When an organization is involved in formal strategic planning, which is not one of the
strategic questions that an organization generally may ask itself?
A) Where is the organization now?
B) Are we on target to hit our financial objectives next year?
C) If no changes are made, where will the organization be in one year?
D) If the evaluation is negative, what specific actions should management take?
E) If no changes are made, where will the organization be in 10 years?
Answer: B
Difficulty: Moderate
Learning Obj.: 1.1: Discuss the benefits of strategic management
AACSB: Analytical thinking


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, 9) In the Bain & Company survey of executives from more than 70 countries, which of the
following was the number one tool used by decision makers?
A) Customer relationship management
B) S trategic planning
C) Marketing planning
D) Financial management
E) Budgeting
Answer: B
Difficulty: Challenging
Learning Obj.: 1.1: Discuss the benefits of strategic management
AACSB: Application of knowledge

10) Strategic planning within a small organization
A) may be informal and irregular.
B) must be elaborate to allow for future growth.
C) should always be formalized and explicitly stated.
D) should be done by the president only.
E) is unnecessary and a waste of time.
Answer: A
Difficulty: Moderate
Learning Obj.: 1.1: Discuss the benefits of strategic management
AACSB: Application of knowledge

11) Strategic planning in a large firm
A) should be informal to allow complete understanding by the many participants.
B) should be instigated only from the main corporate office.
C) should be accomplished quickly to decrease the likelihood of it becoming outdated.
D) should encourage a clear delineation between top management and lower-level managers.
E) should be a formalized and sophisticated system.
Answer: E
Difficulty: Moderate
Learning Obj.: 1.1: Discuss the benefits of strategic management
AACSB: Application of knowledge

12) Strategic management is the set of managerial decisions that help determine the long-term
performance of a corporation.
Answer: TRUE
Difficulty: Easy
Learning Obj.: 1.1: Discuss the benefits of strategic management
AACSB: Application of knowledge

13) As annual budgets become less useful at stimulating long-term success, managers attempt to
propose five-year plans.
Answer: TRUE
Difficulty: Easy
Learning Obj.: 1.1: Discuss the benefits of strategic management
AACSB: Application of knowledge

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