Strategic Management and Business Policy, 15e (Wheelen et al.)
Chapter 1 Basic Concepts in Strategic Management
1) The emphasis of strategic management is on
A) long-term performance.
B) first line managers.
C) the short-run performance of the corporation.
D) an examination of the organization's internal environment.
E) an investigation of competitor actions.
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) basic financial planning.
C) internally 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 basic financial planning is usually
A) one year.
B) one quarter.
C) three to five years.
D) less than one month.
E) five to ten years.
Answer: A
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) forecast-based planning incorporates environmental data and extrapolates current
trends.
C) basic 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
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 vision 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 evaluating its strategic position, 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
9) Research of the planning practices of companies in the oil industry concludes that the
real value of modern strategic planning is more in the ________ that is part of a future-
oriented planning process than in any resulting written strategic plan.
A) planning
B) strategic thinking and organizational learning
C) resulting written strategic plan
Chapter 1 Basic Concepts in Strategic Management
1) The emphasis of strategic management is on
A) long-term performance.
B) first line managers.
C) the short-run performance of the corporation.
D) an examination of the organization's internal environment.
E) an investigation of competitor actions.
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) basic financial planning.
C) internally 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 basic financial planning is usually
A) one year.
B) one quarter.
C) three to five years.
D) less than one month.
E) five to ten years.
Answer: A
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) forecast-based planning incorporates environmental data and extrapolates current
trends.
C) basic 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
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 vision 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 evaluating its strategic position, 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
9) Research of the planning practices of companies in the oil industry concludes that the
real value of modern strategic planning is more in the ________ that is part of a future-
oriented planning process than in any resulting written strategic plan.
A) planning
B) strategic thinking and organizational learning
C) resulting written strategic plan
