Test Bank For Strategic Management and Business Policy, Globalization, Innovation and Sustainability Sixteenth Edition, Global Edition

Test Bank For Strategic Management and Business Policy, Globalization, Innovation and Sustainability Sixteenth Edition, Global Edition-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 2 . 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 3 . 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 4 . 14) One of the benefits of strategic management is a clearer sense of strategic direction for the firm. Answer: TRUE Difficulty: Moderate Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Analytical thinking 15) To be effective, strategic management must be a formal process. Answer: FALSE Difficulty: Challenging Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Analytical thinking 16) How does basic financial planning differ from forecast-based planning? Answer: The two differ in terms of the time horizons involved. While the time horizon for basic financial planning is usually a year, it is typically three to five years for forecast-based planning. In addition, basic financial planning relies almost entirely on information generated internally, while forecast-based planning uses both internal and external information. Difficulty: Moderate Learning Obj.: 1.1: Discuss the benefits of strategic management AACSB: Application of knowledge 17) The integrated internationalization of markets and corporations is called A) normalization. B) economic integration. C) globalization. D) nationalization. E) regionalization. Answer: C Difficulty: Easy Learning Obj.: 1.2: Explain how globalization, innovation, and environmental sustainability influence strategic management AACSB: Application of knowledge 18) The term used to describe new products, services, methods, and organizational approaches that allow businesses to achieve extraordinary returns is A) ROI. B) innovation. C) competitive advantage. D) sustainability. E) profit maximization. Answer: B Difficulty: Moderate Learning Obj.: 1.2: Explain how globalization, innovation, and environmental sustainability influence strategic management AACSB: Application of knowledge