Strategic Management: Text and Cases, 9e (Dess)
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Chapter 1
vv v v Strategic Management: Creating Competitive Advantages
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1) Lands' End's failure under the leadership of Ms. Frederica Marchionni was said to be a
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,2) direct result of the quality of her leadership. According to the text, this would be an
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vv example of the "romantic" perspective of leadership.
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Answer: TRUE v v
Explanation: In the romantic view of leadership, the implicit assumption is that the leader is
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the key force in determining an organization's success or lack thereof. Under Ms.
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vv Marchionni's leadership, the company reported a 19.5-million-dollar loss for 2016 after
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vv having reported a 73.8-million-dollar profit for the previous year under its previous CEO.
vv vv vv vv vv vv vv vv vv vv vv vv
Difficulty: 2 Medium vv vv
Topic: Strategy and the Strategic Management Process
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Learning Objective: 01-01 The definition of strategic management and its four key attributes.
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vv Bloom's: Understand v v
AACSB: Analytical Thinking
v v vv
vv Accessibility: Keyboard Navigation v v vv
3) Strategic management consists of the analyses, decisions, and actions an
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organization undertakes in order to create and sustain competitive advantages.
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Answer: TRUE v v
Explanation: According to the textbook, this is the definition of strategic management.
v v vv vv vv vv vv vv vv vv vv vv
vv Difficulty: 1 Easy vv vv
Topic: Strategy and the Strategic Management Process
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Learning Objective: 01-01 The definition of strategic management and its four key attributes.
vv v v vv vv vv vv vv vv vv vv vv vv
vv Bloom's: Remember v v
AACSB: Knowledge Application
v v vv
vv Accessibility: Keyboard Navigation v v vv
4) Management innovations such as total quality, just-in-time, benchmarking, business
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vv process reengineering, and outsourcing are important but not enough for building sustainable
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competitive advantage.
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Answer: TRUE v v
Explanation: Sustainable competitive advantage cannot be achieved through operational
v v vv vv vv vv vv vv vv
vv effectiveness alone. Popular management innovations of the last two decades like total
vv vv vv vv vv vv vv vv vv vv vv
vv quality, just-in-time, benchmarking, business process reengineering, and outsourcing are
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, concerned with operational effectiveness.
vv vv vv vv
Difficulty: 2 Medium vv vv
Topic: Strategy and the Strategic Management Process
v v vv vv vv vv vv
Learning Objective: 01-01 The definition of strategic management and its four key attributes.
vv v v vv vv vv vv vv vv vv vv vv vv
vv Bloom's: Understand
v v
AACSB: Analytical Thinking
v v vv
vv Accessibility: Keyboard Navigationv v vv
5) Trade-off decisions between effectiveness and efficiency are important in the practice of
vv vv vv vv vv vv vv vv vv vv vv
, strategic management. vv
Answer: TRUE v v
Explanation: The fourth attribute of strategic management is that it involves the
v v vv vv vv vv vv vv vv vv vv vv
recognition of trade-offs between effectiveness and efficiency. Some authors have referred
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vv to this as the difference between doing the right thing (effectiveness) and doing things
vv vv vv vv vv vv vv vv vv vv vv vv vv
vv right (efficiency).
vv
Difficulty: 2 Medium vv vv
Topic: Strategy and the Strategic Management Process
v v vv vv vv vv vv
Learning Objective: 01-01 The definition of strategic management and its four key attributes.
vv v v vv vv vv vv vv vv vv vv vv vv
vv Bloom's: Understand v v
AACSB: Analytical Thinking v v vv
vv Accessibility: Keyboard Navigation v v vv
6) According to Henry Mintzberg, a management scholar, most firms do not realize their
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original intended strategy.
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Answer: TRUE v v
Explanation: Henry Mintzberg states that the intended strategy rarely survives in its original
v v vv vv vv vv vv vv vv vv vv vv vv
vv form. Unforeseen environmental developments, unanticipated resource constraints, or
vv vv vv vv vv vv vv
changes in managerial preferences may result in at least some parts of the intended strategy
vv vv vv vv vv vv vv vv vv vv vv vv vv vv vv
vv remaining unrealized. On the other hand, good managers will want to take advantage of a
vv vv vv vv vv vv vv vv vv vv vv vv vv vv
vv new opportunity presented by the environment, even if it was not part of the original set of
vv vv vv vv vv vv vv vv vv vv vv vv vv vv vv vv
vv intentions.
Difficulty: 2 Medium vv vv
Topic: Strategy and the Strategic Management Process
v v vv vv vv vv vv
Learning Objective: 01-02 The strategic management process and its three interrelated and
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vv principal activities. vv
Bloom's: Understand v v
vv AACSB: Analytical Thinking
v v vv
Accessibility: Keyboard Navigation v v vv
7) The final realized strategy of a firm is a combination of deliberate and time-tested
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strategies only.
vv vv
vv vv vv vv vv vv
Chapter 1
vv v v Strategic Management: Creating Competitive Advantages
vv vv vv vv
1) Lands' End's failure under the leadership of Ms. Frederica Marchionni was said to be a
vv vv vv vv vv vv vv vv vv vv vv vv vv vv vv
,2) direct result of the quality of her leadership. According to the text, this would be an
vv vv vv vv vv vv vv vv vv vv vv vv vv vv vv
vv example of the "romantic" perspective of leadership.
vv vv vv vv vv vv
Answer: TRUE v v
Explanation: In the romantic view of leadership, the implicit assumption is that the leader is
v v vv vv vv vv vv vv vv vv vv vv vv vv vv
the key force in determining an organization's success or lack thereof. Under Ms.
vv vv vv vv vv vv vv vv vv vv vv vv vv
vv Marchionni's leadership, the company reported a 19.5-million-dollar loss for 2016 after
vv vv vv vv vv vv vv vv vv vv
vv having reported a 73.8-million-dollar profit for the previous year under its previous CEO.
vv vv vv vv vv vv vv vv vv vv vv vv
Difficulty: 2 Medium vv vv
Topic: Strategy and the Strategic Management Process
v v vv vv vv vv vv
Learning Objective: 01-01 The definition of strategic management and its four key attributes.
vv v v vv vv vv vv vv vv vv vv vv vv
vv Bloom's: Understand v v
AACSB: Analytical Thinking
v v vv
vv Accessibility: Keyboard Navigation v v vv
3) Strategic management consists of the analyses, decisions, and actions an
vv vv vv vv vv vv vv vv vv
organization undertakes in order to create and sustain competitive advantages.
vv vv vv vv vv vv vv vv vv vv
Answer: TRUE v v
Explanation: According to the textbook, this is the definition of strategic management.
v v vv vv vv vv vv vv vv vv vv vv
vv Difficulty: 1 Easy vv vv
Topic: Strategy and the Strategic Management Process
v v vv vv vv vv vv
Learning Objective: 01-01 The definition of strategic management and its four key attributes.
vv v v vv vv vv vv vv vv vv vv vv vv
vv Bloom's: Remember v v
AACSB: Knowledge Application
v v vv
vv Accessibility: Keyboard Navigation v v vv
4) Management innovations such as total quality, just-in-time, benchmarking, business
vv vv vv vv vv vv vv vv
vv process reengineering, and outsourcing are important but not enough for building sustainable
vv vv vv vv vv vv vv vv vv vv vv
competitive advantage.
vv vv
Answer: TRUE v v
Explanation: Sustainable competitive advantage cannot be achieved through operational
v v vv vv vv vv vv vv vv
vv effectiveness alone. Popular management innovations of the last two decades like total
vv vv vv vv vv vv vv vv vv vv vv
vv quality, just-in-time, benchmarking, business process reengineering, and outsourcing are
vv vv vv vv vv vv vv vv
, concerned with operational effectiveness.
vv vv vv vv
Difficulty: 2 Medium vv vv
Topic: Strategy and the Strategic Management Process
v v vv vv vv vv vv
Learning Objective: 01-01 The definition of strategic management and its four key attributes.
vv v v vv vv vv vv vv vv vv vv vv vv
vv Bloom's: Understand
v v
AACSB: Analytical Thinking
v v vv
vv Accessibility: Keyboard Navigationv v vv
5) Trade-off decisions between effectiveness and efficiency are important in the practice of
vv vv vv vv vv vv vv vv vv vv vv
, strategic management. vv
Answer: TRUE v v
Explanation: The fourth attribute of strategic management is that it involves the
v v vv vv vv vv vv vv vv vv vv vv
recognition of trade-offs between effectiveness and efficiency. Some authors have referred
vv vv vv vv vv vv vv vv vv vv vv
vv to this as the difference between doing the right thing (effectiveness) and doing things
vv vv vv vv vv vv vv vv vv vv vv vv vv
vv right (efficiency).
vv
Difficulty: 2 Medium vv vv
Topic: Strategy and the Strategic Management Process
v v vv vv vv vv vv
Learning Objective: 01-01 The definition of strategic management and its four key attributes.
vv v v vv vv vv vv vv vv vv vv vv vv
vv Bloom's: Understand v v
AACSB: Analytical Thinking v v vv
vv Accessibility: Keyboard Navigation v v vv
6) According to Henry Mintzberg, a management scholar, most firms do not realize their
vv vv vv vv vv vv vv vv vv vv vv vv
original intended strategy.
vv vv vv
Answer: TRUE v v
Explanation: Henry Mintzberg states that the intended strategy rarely survives in its original
v v vv vv vv vv vv vv vv vv vv vv vv
vv form. Unforeseen environmental developments, unanticipated resource constraints, or
vv vv vv vv vv vv vv
changes in managerial preferences may result in at least some parts of the intended strategy
vv vv vv vv vv vv vv vv vv vv vv vv vv vv vv
vv remaining unrealized. On the other hand, good managers will want to take advantage of a
vv vv vv vv vv vv vv vv vv vv vv vv vv vv
vv new opportunity presented by the environment, even if it was not part of the original set of
vv vv vv vv vv vv vv vv vv vv vv vv vv vv vv vv
vv intentions.
Difficulty: 2 Medium vv vv
Topic: Strategy and the Strategic Management Process
v v vv vv vv vv vv
Learning Objective: 01-02 The strategic management process and its three interrelated and
vv v v vv vv vv vv vv vv vv vv vv
vv principal activities. vv
Bloom's: Understand v v
vv AACSB: Analytical Thinking
v v vv
Accessibility: Keyboard Navigation v v vv
7) The final realized strategy of a firm is a combination of deliberate and time-tested
vv vv vv vv vv vv vv vv vv vv vv vv vv
strategies only.
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