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Chapter 1- Basic Concepts of Strategic
Management Exam Questions With
Verified Answers.
Budget - answer✔✔A statement of a corporation's programs in terms of dollars
Business Strategy - answer✔✔Emphasizes improvement of the competitive position of a
corporation's products or services in the specific industry or market segment served by that
business unit. Two categories: competitive and cooperative strategies.
Corporate strategy - answer✔✔Describes a company's overall direction in terms of its general
attitude toward growth and the management of its various businesses and product lines. Three
categories: stability, growth, and retrenchment.
environmental scanning - answer✔✔Monitoring, evaluating and disseminating of information
from the external and internal environments to key people within the corporation.
environmental sustainability - answer✔✔The use of business practices to reduce a company's
impact on the natural, physical environment.
evaluation and control - answer✔✔A process in which corporate activities and performance
results are monitored so that tactual performance can be compared with desired performance.
external environment - answer✔✔The factors that make up the Opportunities and Threats
outside of an organization.
functional strategy - answer✔✔The approach taken by a functional area to achieve corporate and
business unit objectives and strategies by maximizing resource productivity.
globalization - answer✔✔Integrated internationalization of markets and corporations.
hierarchy of strategy - answer✔✔A grouping of strategy types by level in the organization. Each
level supports the next one. Functional str. supports business str. which supports corporate str.
institution theory - answer✔✔Theory that states that organizations can and do adapt to changing
conditions by imitating other successful organizations. (Partially correct theory)
Chapter 1- Basic Concepts of Strategic
Management Exam Questions With
Verified Answers.
Budget - answer✔✔A statement of a corporation's programs in terms of dollars
Business Strategy - answer✔✔Emphasizes improvement of the competitive position of a
corporation's products or services in the specific industry or market segment served by that
business unit. Two categories: competitive and cooperative strategies.
Corporate strategy - answer✔✔Describes a company's overall direction in terms of its general
attitude toward growth and the management of its various businesses and product lines. Three
categories: stability, growth, and retrenchment.
environmental scanning - answer✔✔Monitoring, evaluating and disseminating of information
from the external and internal environments to key people within the corporation.
environmental sustainability - answer✔✔The use of business practices to reduce a company's
impact on the natural, physical environment.
evaluation and control - answer✔✔A process in which corporate activities and performance
results are monitored so that tactual performance can be compared with desired performance.
external environment - answer✔✔The factors that make up the Opportunities and Threats
outside of an organization.
functional strategy - answer✔✔The approach taken by a functional area to achieve corporate and
business unit objectives and strategies by maximizing resource productivity.
globalization - answer✔✔Integrated internationalization of markets and corporations.
hierarchy of strategy - answer✔✔A grouping of strategy types by level in the organization. Each
level supports the next one. Functional str. supports business str. which supports corporate str.
institution theory - answer✔✔Theory that states that organizations can and do adapt to changing
conditions by imitating other successful organizations. (Partially correct theory)
