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: # g s Analytical
#gsthinking
1
Copyright #gs© #gs2018 #gsPearson #gsEducation,
#gsInc.
SCHOLARVAULT
,5) Top-down #gsplanning #gsthat #gsemphasizes #gsformal #gsstrategy #gsformulation #gsand
#gsleaves #gsthe #gsimplementation #gsissues #gsto #gslower #gsmanagement #gslevels #gsis
#gsknown #gsas
A) forecast-based #gsplanning.
B) externally #gsoriented #gsplanning.
C) strategic #gsmanagement.
D) basic #gsfinancial #gsplanning.
E) none #gsof #gsthe
#gsabove #gsAnswer:
# g s B #gsDifficulty:
# g s Moderate
Learning #gsObj.: # g s 1.1: #gsDiscuss #gsthe #gsbenefits #gsof #gsstrategic
#gsmanagement #gsAACSB: # g s Application #gsof #gsknowledge
6) In #gsthe #gsfinal #gsphase #gsof #gsstrategic #gsmanagement, #gsstrategic #gsinformation #gsis #gsavailable #gsto
A) people #gsthroughout #gsthe #gsorganization.
B) the #gstop #gsmanagement #gsresponsible #gsfor #gsdecision-making.
C) middle #gsmanagement.
D) operational #gspersonnel.
E) only #gsthose #gsresponsible #gsfor #gsimplementing #gsthe
#gsstrategy. #gsAnswer: # g s A
Difficulty: # g s Moderate
Learning #gsObj.: # g s 1.1: #gsDiscuss #gsthe #gsbenefits #gsof #gsstrategic
#gsmanagement #gsAACSB: # g s Application #gsof #gsknowledge
7) In #gsa #gssurvey #gsof #gs50 #gscorporations, #gswhich #gsof #gsthe #gsfollowing #gswas #gsrated #gsas #gsone
#gsof #gsthe #gsthree #gstop #gsbenefits #gsof #gsstrategic #gsmanagement?
A) clearer #gssense #gsof #gsstrategic #gsvision #gsfor #gsthe #gsfirm
B) higher #gslevels #gsof #gsemployee #gsmotivation
C) higher #gslevels #gsof #gsjob #gssatisfaction
D) improved #gsproductivity
E) lower #gsemployee
#gsturnover #gsAnswer: # g s A
Difficulty: # g s Moderate
Learning #gsObj.: # g s 1.1: #gsDiscuss #gsthe #gsbenefits #gsof #gsstrategic
#gsmanagement #gsAACSB: # g s Application #gsof #gsknowledge
8) When #gsan #gsorganization #gsis #gsevaluating #gsits #gsstrategic #gsposition, #gswhich #gsis #gsnot #gsone #gsof
#gsthe #gsstrategic #gsquestions #gsthat #gsan #gsorganization #gsgenerally #gsmay #gsask #gsitself?
A) Where #gsis #gsthe #gsorganization #gsnow?
B) Are #gswe #gson #gstarget #gsto #gshit #gsour #gsfinancial #gsobjectives #gsnext #gsyear?
C) If #gsno #gschanges #gsare #gsmade, #gswhere #gswill #gsthe #gsorganization #gsbe #gsin #gsone #gsyear?
D) If #gsthe #gsevaluation #gsis #gsnegative, #gswhat #gsspecific #gsactions #gsshould #gsmanagement #gstake?
E) If #gsno #gschanges #gsare #gsmade, #gswhere #gswill #gsthe #gsorganization #gsbe #gsin
#gs10 #gsyears? #gsAnswer: # g s B
AACSB: # g s Analytical
#gsthinking
2
Copyright #gs© #gs2018 #gsPearson #gsEducation,
#gsInc.
SCHOLARVAULT
,Difficulty: # g s Moderate
Learning #gsObj.: # g s 1.1: #gsDiscuss #gsthe #gsbenefits #gsof #gsstrategic #gsmanagement
AACSB: # g s Analytical
#gsthinking
3
Copyright #gs© #gs2018 #gsPearson #gsEducation,
#gsInc.
SCHOLARVAULT
, 9) Research #gsof #gsthe #gsplanning #gspractices #gsof #gscompanies #gsin #gsthe #gsoil #gsindustry #gsconcludes
#gsthat #gsthe #gsreal #gsvalue #gsof #gsmodern #gsstrategic #gsplanning #gsis #gsmore #gsin #gsthe #gs #gsthat #gsis
#gspart #gsof #gsa #gsfuture-oriented #gsplanning #gsprocess #gsthan #gsin #gsany #gsresulting #gswritten
#gsstrategic #gsplan.
A) planning
B) strategic #gsthinking #gsand #gsorganizational #gslearning
C) resulting #gswritten #gsstrategic #gsplan
D) formality #gsof #gsthe #gsprocess
E) improved #gscommunication #gswithin #gsthe
#gsorganization #gsAnswer: # g s B
Difficulty: # g s Difficult
Learning #gsObj.: # g s 1.1: #gsDiscuss #gsthe #gsbenefits #gsof #gsstrategic
#gsmanagement #gsAACSB: # g s Application #gsof #gsknowledge
10) Strategic #gsplanning #gswithin #gsa #gssmall #gsorganization
A) may #gsbe #gsinformal #gsand #gsirregular.
B) must #gsbe #gselaborate #gsto #gsallow #gsfor #gsfuture #gsgrowth.
C) should #gsalways #gsbe #gsformalized #gsand #gsexplicitly #gsstated.
D) should #gsbe #gsdone #gsby #gsthe #gspresident #gsonly.
E) is #gsunnecessary #gsand #gsa #gswaste #gsof
#gstime. #gsAnswer: # g s A
Difficulty: # g s Moderate
Learning #gsObj.: # g s 1.1: #gsDiscuss #gsthe #gsbenefits #gsof #gsstrategic
#gsmanagement #gsAACSB: # g s Application #gsof #gsknowledge
11) Strategic #gsplanning #gsin #gsa #gsmultidivisional #gscorporation
A) should #gsbe #gsinformal #gsto #gsallow #gscomplete #gsunderstanding #gsby #gsthe #gsmany #gsparticipants.
B) should #gsbe #gsinstigated #gsonly #gsfrom #gsthe #gsmain #gscorporate #gsoffice.
C) should #gsbe #gsaccomplished #gsquickly #gsto #gsdecrease #gsthe #gslikelihood #gsof #gsit #gsbecoming
#gsoutdated.
D) should #gsencourage #gsa #gsclear #gsdelineation #gsbetween #gstop #gsmanagement #gsand #gslower-level
#gsmanagers.
E) should #gsbe #gsa #gsformalized #gsand #gssophisticated
#gssystem. #gsAnswer: # g s E
Difficulty: # g s Moderate
Learning #gsObj.: # g s 1.1: #gsDiscuss #gsthe #gsbenefits #gsof #gsstrategic
#gsmanagement #gsAACSB: # g s Application #gsof #gsknowledge
12) Strategic #gsmanagement #gsis #gsthe #gsset #gsof #gsmanagerial #gsdecisions #gsthat #gsdetermines #gsthe
#gsshort-term #gsperformance #gsof #gsa #gscorporation.
Answer: # g s FALSE
#gsDifficulty: # g s Easy
Learning #gsObj.: # g s 1.1: #gsDiscuss #gsthe #gsbenefits #gsof #gsstrategic
#gsmanagement #gsAACSB: # g s Application #gsof #gsknowledge
4
Copyright #gs© #gs2018 #gsPearson #gsEducation,
#gsInc.
SCHOLARVAULT
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: # g s Analytical
#gsthinking
1
Copyright #gs© #gs2018 #gsPearson #gsEducation,
#gsInc.
SCHOLARVAULT
,5) Top-down #gsplanning #gsthat #gsemphasizes #gsformal #gsstrategy #gsformulation #gsand
#gsleaves #gsthe #gsimplementation #gsissues #gsto #gslower #gsmanagement #gslevels #gsis
#gsknown #gsas
A) forecast-based #gsplanning.
B) externally #gsoriented #gsplanning.
C) strategic #gsmanagement.
D) basic #gsfinancial #gsplanning.
E) none #gsof #gsthe
#gsabove #gsAnswer:
# g s B #gsDifficulty:
# g s Moderate
Learning #gsObj.: # g s 1.1: #gsDiscuss #gsthe #gsbenefits #gsof #gsstrategic
#gsmanagement #gsAACSB: # g s Application #gsof #gsknowledge
6) In #gsthe #gsfinal #gsphase #gsof #gsstrategic #gsmanagement, #gsstrategic #gsinformation #gsis #gsavailable #gsto
A) people #gsthroughout #gsthe #gsorganization.
B) the #gstop #gsmanagement #gsresponsible #gsfor #gsdecision-making.
C) middle #gsmanagement.
D) operational #gspersonnel.
E) only #gsthose #gsresponsible #gsfor #gsimplementing #gsthe
#gsstrategy. #gsAnswer: # g s A
Difficulty: # g s Moderate
Learning #gsObj.: # g s 1.1: #gsDiscuss #gsthe #gsbenefits #gsof #gsstrategic
#gsmanagement #gsAACSB: # g s Application #gsof #gsknowledge
7) In #gsa #gssurvey #gsof #gs50 #gscorporations, #gswhich #gsof #gsthe #gsfollowing #gswas #gsrated #gsas #gsone
#gsof #gsthe #gsthree #gstop #gsbenefits #gsof #gsstrategic #gsmanagement?
A) clearer #gssense #gsof #gsstrategic #gsvision #gsfor #gsthe #gsfirm
B) higher #gslevels #gsof #gsemployee #gsmotivation
C) higher #gslevels #gsof #gsjob #gssatisfaction
D) improved #gsproductivity
E) lower #gsemployee
#gsturnover #gsAnswer: # g s A
Difficulty: # g s Moderate
Learning #gsObj.: # g s 1.1: #gsDiscuss #gsthe #gsbenefits #gsof #gsstrategic
#gsmanagement #gsAACSB: # g s Application #gsof #gsknowledge
8) When #gsan #gsorganization #gsis #gsevaluating #gsits #gsstrategic #gsposition, #gswhich #gsis #gsnot #gsone #gsof
#gsthe #gsstrategic #gsquestions #gsthat #gsan #gsorganization #gsgenerally #gsmay #gsask #gsitself?
A) Where #gsis #gsthe #gsorganization #gsnow?
B) Are #gswe #gson #gstarget #gsto #gshit #gsour #gsfinancial #gsobjectives #gsnext #gsyear?
C) If #gsno #gschanges #gsare #gsmade, #gswhere #gswill #gsthe #gsorganization #gsbe #gsin #gsone #gsyear?
D) If #gsthe #gsevaluation #gsis #gsnegative, #gswhat #gsspecific #gsactions #gsshould #gsmanagement #gstake?
E) If #gsno #gschanges #gsare #gsmade, #gswhere #gswill #gsthe #gsorganization #gsbe #gsin
#gs10 #gsyears? #gsAnswer: # g s B
AACSB: # g s Analytical
#gsthinking
2
Copyright #gs© #gs2018 #gsPearson #gsEducation,
#gsInc.
SCHOLARVAULT
,Difficulty: # g s Moderate
Learning #gsObj.: # g s 1.1: #gsDiscuss #gsthe #gsbenefits #gsof #gsstrategic #gsmanagement
AACSB: # g s Analytical
#gsthinking
3
Copyright #gs© #gs2018 #gsPearson #gsEducation,
#gsInc.
SCHOLARVAULT
, 9) Research #gsof #gsthe #gsplanning #gspractices #gsof #gscompanies #gsin #gsthe #gsoil #gsindustry #gsconcludes
#gsthat #gsthe #gsreal #gsvalue #gsof #gsmodern #gsstrategic #gsplanning #gsis #gsmore #gsin #gsthe #gs #gsthat #gsis
#gspart #gsof #gsa #gsfuture-oriented #gsplanning #gsprocess #gsthan #gsin #gsany #gsresulting #gswritten
#gsstrategic #gsplan.
A) planning
B) strategic #gsthinking #gsand #gsorganizational #gslearning
C) resulting #gswritten #gsstrategic #gsplan
D) formality #gsof #gsthe #gsprocess
E) improved #gscommunication #gswithin #gsthe
#gsorganization #gsAnswer: # g s B
Difficulty: # g s Difficult
Learning #gsObj.: # g s 1.1: #gsDiscuss #gsthe #gsbenefits #gsof #gsstrategic
#gsmanagement #gsAACSB: # g s Application #gsof #gsknowledge
10) Strategic #gsplanning #gswithin #gsa #gssmall #gsorganization
A) may #gsbe #gsinformal #gsand #gsirregular.
B) must #gsbe #gselaborate #gsto #gsallow #gsfor #gsfuture #gsgrowth.
C) should #gsalways #gsbe #gsformalized #gsand #gsexplicitly #gsstated.
D) should #gsbe #gsdone #gsby #gsthe #gspresident #gsonly.
E) is #gsunnecessary #gsand #gsa #gswaste #gsof
#gstime. #gsAnswer: # g s A
Difficulty: # g s Moderate
Learning #gsObj.: # g s 1.1: #gsDiscuss #gsthe #gsbenefits #gsof #gsstrategic
#gsmanagement #gsAACSB: # g s Application #gsof #gsknowledge
11) Strategic #gsplanning #gsin #gsa #gsmultidivisional #gscorporation
A) should #gsbe #gsinformal #gsto #gsallow #gscomplete #gsunderstanding #gsby #gsthe #gsmany #gsparticipants.
B) should #gsbe #gsinstigated #gsonly #gsfrom #gsthe #gsmain #gscorporate #gsoffice.
C) should #gsbe #gsaccomplished #gsquickly #gsto #gsdecrease #gsthe #gslikelihood #gsof #gsit #gsbecoming
#gsoutdated.
D) should #gsencourage #gsa #gsclear #gsdelineation #gsbetween #gstop #gsmanagement #gsand #gslower-level
#gsmanagers.
E) should #gsbe #gsa #gsformalized #gsand #gssophisticated
#gssystem. #gsAnswer: # g s E
Difficulty: # g s Moderate
Learning #gsObj.: # g s 1.1: #gsDiscuss #gsthe #gsbenefits #gsof #gsstrategic
#gsmanagement #gsAACSB: # g s Application #gsof #gsknowledge
12) Strategic #gsmanagement #gsis #gsthe #gsset #gsof #gsmanagerial #gsdecisions #gsthat #gsdetermines #gsthe
#gsshort-term #gsperformance #gsof #gsa #gscorporation.
Answer: # g s FALSE
#gsDifficulty: # g s Easy
Learning #gsObj.: # g s 1.1: #gsDiscuss #gsthe #gsbenefits #gsof #gsstrategic
#gsmanagement #gsAACSB: # g s Application #gsof #gsknowledge
4
Copyright #gs© #gs2018 #gsPearson #gsEducation,
#gsInc.
SCHOLARVAULT
