StrategicuManagement:uTextuanduCases,u9eu(Dess)
Chapteru1u StrategicuManagement:uCreatinguCompetitiveuAdvantages
1) Lands'uEnd'sufailureuunderutheuleadershipuofuMs.uFredericauMarchionniuwasusaidutoubeuaudir
ecturesultuofutheuqualityuofuheruleadership.uAccordingutoutheutext,uthisuwouldubeuanuexampleuo
futheu"romantic"uperspectiveuofuleadership.
Answer:u TRUE
Explanation:u Inutheuromanticuviewuofuleadership,utheuimplicituassumptionuisuthatutheuleaderuisu
theukeyuforceuinudetermininguanuorganization'susuccessuorulackuthereof.uUnderuMs.uMarchionni
'suleadership,utheucompanyureporteduau19.5-million-
dollarulossuforu2016uafteruhavingureporteduau73.8-million-
dollaruprofituforutheupreviousuyearuunderuitsupreviousuCEO.
Difficulty:u2uMedium
Topic:u StrategyuandutheuStrategicuManagementuProcess
LearninguObjective:u 01-
01uTheudefinitionuofustrategicumanagementuanduitsufourukeyuattributes.uBloom's:u Understand
AACSB:u AnalyticaluThinkinguAcces
sibility:u KeyboarduNavigation
2) Strategicumanagementuconsistsuofutheuanalyses,udecisions,uanduactionsuanuorganizati
onuundertakesuinuorderutoucreateuandusustainucompetitiveuadvantages.
Answer:u TRUE
Explanation:u Accordingutoutheutextbook,uthisuisutheudefinitionuofustrategicumanagement.uDiffi
culty:u1uEasy
Topic:u StrategyuandutheuStrategicuManagementuProcess
LearninguObjective:u 01-
01uTheudefinitionuofustrategicumanagementuanduitsufourukeyuattributes.uBloom's:u Remember
AACSB:u KnowledgeuApplicationuAc
cessibility:u KeyboarduNavigation
3) Managementuinnovationsusuchuasutotaluquality,ujust-in-
time,ubenchmarking,ubusinessuprocessureengineering,uanduoutsourcinguareuimportantubutunotuen
oughuforubuildingusustainableucompetitiveuadvantage.
Answer:u TRUE
Explanation:u Sustainableucompetitiveuadvantageucannotubeuachieveduthroughuoperationalueffec
tivenessualone.uPopularumanagementuinnovationsuofutheulastutwoudecadesulikeutotaluquality,ujus
t-in-
time,ubenchmarking,ubusinessuprocessureengineering,uanduoutsourcinguareuconcerneduwithuoper
ationalueffectiveness.
Difficulty:u2uMedium
Topic:u StrategyuandutheuStrategicuManagementuProcess
LearninguObjective:u 01-
01uTheudefinitionuofustrategicumanagementuanduitsufourukeyuattributes.uBloom's:u Understand
AACSB:u AnalyticaluThinkinguAcces
sibility:u KeyboarduNavigation
4) Trade-offudecisionsubetweenueffectivenessuanduefficiencyuareuimportantuinutheupracticeuof
,strategicumanagement.
Answer:u TRUE
Explanation:u Theufourthuattributeuofustrategicumanagementuisuthatuituinvolvesutheurecognition
uofutrade-
offsubetweenueffectivenessuanduefficiency.uSomeuauthorsuhaveureferredutouthisuasutheudifferen
ceubetweenudoingutheurightuthingu(effectiveness)uandudoinguthingsurightu(efficiency).
Difficulty:u2uMedium
Topic:u StrategyuandutheuStrategicuManagementuProcess
LearninguObjective:u 01-
01uTheudefinitionuofustrategicumanagementuanduitsufourukeyuattributes.uBloom's:u Understand
AACSB:u AnalyticaluThinkinguAcces
sibility:u KeyboarduNavigation
5) AccordingutouHenryuMintzberg,uaumanagementuscholar,umostufirmsudounoturealizeutheiruorigi
naluintendedustrategy.
Answer:u TRUE
Explanation:u HenryuMintzbergustatesuthatutheuintendedustrategyurarelyusurvivesuinuitsuoriginaluf
orm.uUnforeseenuenvironmentaludevelopments,uunanticipateduresourceuconstraints,uoruchangesui
numanagerialupreferencesumayuresultuinuatuleastusomeupartsuofutheuintendedustrategyuremainingu
unrealized.uOnutheuotheruhand,ugoodumanagersuwilluwantutoutakeuadvantageuofuaunewuopportuni
tyupresentedubyutheuenvironment,uevenuifuituwasunotupartuofutheuoriginalusetuofuintentions.
Difficulty:u2uMedium
Topic:u StrategyuandutheuStrategicuManagementuProcess
LearninguObjective:u 01-
02uTheustrategicumanagementuprocessuanduitsuthreeuinterrelateduanduprincipaluactivities.
Bloom's:u UnderstanduAACS
B:u AnalyticaluThinking
Accessibility:u KeyboarduNavigation
6) Theufinalurealizedustrategyuofuaufirmuisuaucombinationuofudeliberateuandutime-
testedustrategiesuonly.
Answer:u FALSE
Explanation:u Realizedustrategyuisuthatustrategyuofuaufirmuinuwhichuorganizationaludecisionsuareud
eterminedubyubothuanalysisuanduunforeseenuenvironmentaludevelopments,uunanticipateduresourceu
constraints,uand/oruchangesuinumanagerialupreferences.
Difficulty:u2uMedium
Topic:u StrategyuandutheuStrategicuManagementuProcess
LearninguObjective:u 01-
02uTheustrategicumanagementuprocessuanduitsuthreeuinterrelateduanduprincipaluactivities.
Bloom's:u Understand
AACSB:u KnowledgeuApplicationuAc
cessibility:u KeyboarduNavigation
,7) Strategyuanalysisuisutheustudyuofuonlyutheubigupictureuexternaluenvironmentsuofutheufirm.
Answer:u FALSE
Explanation:u Strategyuanalysisuisutheustudyuofutheuexternaluanduinternaluenvironmentsuofuaufir
m,uandutheirufituwithuorganizationaluvisionuandugoals.
Difficulty:u2uMedium
Topic:u StrategyuandutheuStrategicuManagementuProcess
LearninguObjective:u 01-
02uTheustrategicumanagementuprocessuanduitsuthreeuinterrelateduanduprincipaluactivities.
Bloom's:u Understand
AACSB:u KnowledgeuApplicationuAc
cessibility:u KeyboarduNavigation
8) Allusuccessfulufirmsucompeteuanduoutperformutheirurivalsubyudevelopingubasesuforucompetiti
veuadvantage,uwhichucanubeuachieveduonlyuthroughucostuleadership.
Answer:u FALSE
Explanation:u Successfulufirmsustriveutoudevelopubasesuforucompetitiveuadvantage,uwhichucanubeu
achieveduthroughucostuleadershipuand/orudifferentiationuasuwelluasubyufocusinguonuaunarrowuoruin
dustrywideumarketusegment.
Difficulty:u2uMedium
Topic:u StrategyuandutheuStrategicuManagementuProcess
LearninguObjective:u 01-
02uTheustrategicumanagementuprocessuanduitsuthreeuinterrelateduanduprincipaluactivities.
Bloom's:u UnderstanduAACS
B:u AnalyticaluThinking
Accessibility:u KeyboarduNavigation
9) Theuthreeuprimaryuparticipantsuinucorporateugovernanceuare:u(1)utheushareholders,u(2)ut
heumanagementu(ledubyutheuchiefuexecutiveuofficer),uandu(3)utheuemployees.
Answer:u FALSE
Explanation:u Theuprimaryuparticipantsuare:u(1)utheushareholders,u(2)utheumanagementu(ledubyuthe
uchiefuexecutiveuofficer),uandu(3)utheuboarduofudirectors.
Difficulty:u2uMedium
Topic:u CorporateuGovernance
LearninguObjective:u 01-
03uTheustrategicuroleuofucorporateugovernanceuandustakeholderumanagement,uasuwelluasuhowu"s
ymbiosis"ucanubeuachieveduamonguanuorganization'sustakeholders.uBloom's:u Understand
AACSB:u KnowledgeuApplicationuAc
cessibility:u KeyboarduNavigation
, 10) Decisionsubyuboardsuofudirectorsuareualwaysuconsistentuwithushareholderuinterests.
Answer:u FALSE
Explanation:u Theuboarduofudirectorsu(BOD)uareutheuelectedurepresentativesuofutheushareholders,u
chargeduwithuensuringuthatutheuinterestsuandumotivesuofumanagementuareualigneduwithuthoseuofut
heuownersu(i.e.,ushareholders).uRecentuscandalsuhaveuresulteduinucriticismuanducynicismuthatutheu
BODufulfillsuthisucharge.
Difficulty:u2uMedium
Topic:u CorporateuGovernance
LearninguObjective:u 01-
03uTheustrategicuroleuofucorporateugovernanceuandustakeholderumanagement,uasuwelluasuhowu"s
ymbiosis"ucanubeuachieveduamonguanuorganization'sustakeholders.uBloom's:u Understand
AACSB:u AnalyticaluThinkinguAcces
sibility:u KeyboarduNavigation
11) Ensuringueffectiveucorporateugovernanceurequiresuanueffectiveuanduengageduboardu
ofudirectors,uuninvolvedushareholders,uanduproperumanagerialurewardsuanduincentives.
Answer:u FALSE
Explanation:u Weufocusuonuthreeuimportantumechanismsutouensureueffectiveucorporateugovern
ance:u(1)uanueffectiveuanduengageduboarduofudirectors,u(2)ushareholderuactivism,uandu(3)uprop
erumanagerialurewardsuanduincentives.
Difficulty:u2uMedium
Topic:u CorporateuGovernance
LearninguObjective:u 01-
03uTheustrategicuroleuofucorporateugovernanceuandustakeholderumanagement,uasuwelluasuhowu"s
ymbiosis"ucanubeuachieveduamonguanuorganization'sustakeholders.uBloom's:u Understand
AACSB:u AnalyticaluThinkinguAcces
sibility:u KeyboarduNavigation
12) Socialuresponsibilityuisutheuideauthatuorganizationsuareuonlyuaccountableutoustockholders.
Answer:u FALSE
Explanation:u Socialuresponsibilityuisutheuexpectationuthatubusinessesuoruindividualsuwillustriveut
ouimproveutheuoveralluwelfareuofusociety.uFromutheuperspectiveuofuaubusiness,uthisumeansuthatu
managersumustutakeuactiveustepsutoumakeusocietyubetterubyuvirtueuofutheubusinessubeinguinuexist
ence.
Difficulty:u2uMedium
Topic:u CorporateuSocialuResponsibilityuanduSustainability
LearninguObjective:u 01-
04uTheuimportanceuofusocialuresponsibility,uincludinguenvironmentalusustainability,uanduhowuit
ucanuenhanceuaucorporation'suinnovationustrategy.
Bloom's:u Analyze
AACSB:u AnalyticaluThinkinguAcces
sibility:u KeyboarduNavigation
Chapteru1u StrategicuManagement:uCreatinguCompetitiveuAdvantages
1) Lands'uEnd'sufailureuunderutheuleadershipuofuMs.uFredericauMarchionniuwasusaidutoubeuaudir
ecturesultuofutheuqualityuofuheruleadership.uAccordingutoutheutext,uthisuwouldubeuanuexampleuo
futheu"romantic"uperspectiveuofuleadership.
Answer:u TRUE
Explanation:u Inutheuromanticuviewuofuleadership,utheuimplicituassumptionuisuthatutheuleaderuisu
theukeyuforceuinudetermininguanuorganization'susuccessuorulackuthereof.uUnderuMs.uMarchionni
'suleadership,utheucompanyureporteduau19.5-million-
dollarulossuforu2016uafteruhavingureporteduau73.8-million-
dollaruprofituforutheupreviousuyearuunderuitsupreviousuCEO.
Difficulty:u2uMedium
Topic:u StrategyuandutheuStrategicuManagementuProcess
LearninguObjective:u 01-
01uTheudefinitionuofustrategicumanagementuanduitsufourukeyuattributes.uBloom's:u Understand
AACSB:u AnalyticaluThinkinguAcces
sibility:u KeyboarduNavigation
2) Strategicumanagementuconsistsuofutheuanalyses,udecisions,uanduactionsuanuorganizati
onuundertakesuinuorderutoucreateuandusustainucompetitiveuadvantages.
Answer:u TRUE
Explanation:u Accordingutoutheutextbook,uthisuisutheudefinitionuofustrategicumanagement.uDiffi
culty:u1uEasy
Topic:u StrategyuandutheuStrategicuManagementuProcess
LearninguObjective:u 01-
01uTheudefinitionuofustrategicumanagementuanduitsufourukeyuattributes.uBloom's:u Remember
AACSB:u KnowledgeuApplicationuAc
cessibility:u KeyboarduNavigation
3) Managementuinnovationsusuchuasutotaluquality,ujust-in-
time,ubenchmarking,ubusinessuprocessureengineering,uanduoutsourcinguareuimportantubutunotuen
oughuforubuildingusustainableucompetitiveuadvantage.
Answer:u TRUE
Explanation:u Sustainableucompetitiveuadvantageucannotubeuachieveduthroughuoperationalueffec
tivenessualone.uPopularumanagementuinnovationsuofutheulastutwoudecadesulikeutotaluquality,ujus
t-in-
time,ubenchmarking,ubusinessuprocessureengineering,uanduoutsourcinguareuconcerneduwithuoper
ationalueffectiveness.
Difficulty:u2uMedium
Topic:u StrategyuandutheuStrategicuManagementuProcess
LearninguObjective:u 01-
01uTheudefinitionuofustrategicumanagementuanduitsufourukeyuattributes.uBloom's:u Understand
AACSB:u AnalyticaluThinkinguAcces
sibility:u KeyboarduNavigation
4) Trade-offudecisionsubetweenueffectivenessuanduefficiencyuareuimportantuinutheupracticeuof
,strategicumanagement.
Answer:u TRUE
Explanation:u Theufourthuattributeuofustrategicumanagementuisuthatuituinvolvesutheurecognition
uofutrade-
offsubetweenueffectivenessuanduefficiency.uSomeuauthorsuhaveureferredutouthisuasutheudifferen
ceubetweenudoingutheurightuthingu(effectiveness)uandudoinguthingsurightu(efficiency).
Difficulty:u2uMedium
Topic:u StrategyuandutheuStrategicuManagementuProcess
LearninguObjective:u 01-
01uTheudefinitionuofustrategicumanagementuanduitsufourukeyuattributes.uBloom's:u Understand
AACSB:u AnalyticaluThinkinguAcces
sibility:u KeyboarduNavigation
5) AccordingutouHenryuMintzberg,uaumanagementuscholar,umostufirmsudounoturealizeutheiruorigi
naluintendedustrategy.
Answer:u TRUE
Explanation:u HenryuMintzbergustatesuthatutheuintendedustrategyurarelyusurvivesuinuitsuoriginaluf
orm.uUnforeseenuenvironmentaludevelopments,uunanticipateduresourceuconstraints,uoruchangesui
numanagerialupreferencesumayuresultuinuatuleastusomeupartsuofutheuintendedustrategyuremainingu
unrealized.uOnutheuotheruhand,ugoodumanagersuwilluwantutoutakeuadvantageuofuaunewuopportuni
tyupresentedubyutheuenvironment,uevenuifuituwasunotupartuofutheuoriginalusetuofuintentions.
Difficulty:u2uMedium
Topic:u StrategyuandutheuStrategicuManagementuProcess
LearninguObjective:u 01-
02uTheustrategicumanagementuprocessuanduitsuthreeuinterrelateduanduprincipaluactivities.
Bloom's:u UnderstanduAACS
B:u AnalyticaluThinking
Accessibility:u KeyboarduNavigation
6) Theufinalurealizedustrategyuofuaufirmuisuaucombinationuofudeliberateuandutime-
testedustrategiesuonly.
Answer:u FALSE
Explanation:u Realizedustrategyuisuthatustrategyuofuaufirmuinuwhichuorganizationaludecisionsuareud
eterminedubyubothuanalysisuanduunforeseenuenvironmentaludevelopments,uunanticipateduresourceu
constraints,uand/oruchangesuinumanagerialupreferences.
Difficulty:u2uMedium
Topic:u StrategyuandutheuStrategicuManagementuProcess
LearninguObjective:u 01-
02uTheustrategicumanagementuprocessuanduitsuthreeuinterrelateduanduprincipaluactivities.
Bloom's:u Understand
AACSB:u KnowledgeuApplicationuAc
cessibility:u KeyboarduNavigation
,7) Strategyuanalysisuisutheustudyuofuonlyutheubigupictureuexternaluenvironmentsuofutheufirm.
Answer:u FALSE
Explanation:u Strategyuanalysisuisutheustudyuofutheuexternaluanduinternaluenvironmentsuofuaufir
m,uandutheirufituwithuorganizationaluvisionuandugoals.
Difficulty:u2uMedium
Topic:u StrategyuandutheuStrategicuManagementuProcess
LearninguObjective:u 01-
02uTheustrategicumanagementuprocessuanduitsuthreeuinterrelateduanduprincipaluactivities.
Bloom's:u Understand
AACSB:u KnowledgeuApplicationuAc
cessibility:u KeyboarduNavigation
8) Allusuccessfulufirmsucompeteuanduoutperformutheirurivalsubyudevelopingubasesuforucompetiti
veuadvantage,uwhichucanubeuachieveduonlyuthroughucostuleadership.
Answer:u FALSE
Explanation:u Successfulufirmsustriveutoudevelopubasesuforucompetitiveuadvantage,uwhichucanubeu
achieveduthroughucostuleadershipuand/orudifferentiationuasuwelluasubyufocusinguonuaunarrowuoruin
dustrywideumarketusegment.
Difficulty:u2uMedium
Topic:u StrategyuandutheuStrategicuManagementuProcess
LearninguObjective:u 01-
02uTheustrategicumanagementuprocessuanduitsuthreeuinterrelateduanduprincipaluactivities.
Bloom's:u UnderstanduAACS
B:u AnalyticaluThinking
Accessibility:u KeyboarduNavigation
9) Theuthreeuprimaryuparticipantsuinucorporateugovernanceuare:u(1)utheushareholders,u(2)ut
heumanagementu(ledubyutheuchiefuexecutiveuofficer),uandu(3)utheuemployees.
Answer:u FALSE
Explanation:u Theuprimaryuparticipantsuare:u(1)utheushareholders,u(2)utheumanagementu(ledubyuthe
uchiefuexecutiveuofficer),uandu(3)utheuboarduofudirectors.
Difficulty:u2uMedium
Topic:u CorporateuGovernance
LearninguObjective:u 01-
03uTheustrategicuroleuofucorporateugovernanceuandustakeholderumanagement,uasuwelluasuhowu"s
ymbiosis"ucanubeuachieveduamonguanuorganization'sustakeholders.uBloom's:u Understand
AACSB:u KnowledgeuApplicationuAc
cessibility:u KeyboarduNavigation
, 10) Decisionsubyuboardsuofudirectorsuareualwaysuconsistentuwithushareholderuinterests.
Answer:u FALSE
Explanation:u Theuboarduofudirectorsu(BOD)uareutheuelectedurepresentativesuofutheushareholders,u
chargeduwithuensuringuthatutheuinterestsuandumotivesuofumanagementuareualigneduwithuthoseuofut
heuownersu(i.e.,ushareholders).uRecentuscandalsuhaveuresulteduinucriticismuanducynicismuthatutheu
BODufulfillsuthisucharge.
Difficulty:u2uMedium
Topic:u CorporateuGovernance
LearninguObjective:u 01-
03uTheustrategicuroleuofucorporateugovernanceuandustakeholderumanagement,uasuwelluasuhowu"s
ymbiosis"ucanubeuachieveduamonguanuorganization'sustakeholders.uBloom's:u Understand
AACSB:u AnalyticaluThinkinguAcces
sibility:u KeyboarduNavigation
11) Ensuringueffectiveucorporateugovernanceurequiresuanueffectiveuanduengageduboardu
ofudirectors,uuninvolvedushareholders,uanduproperumanagerialurewardsuanduincentives.
Answer:u FALSE
Explanation:u Weufocusuonuthreeuimportantumechanismsutouensureueffectiveucorporateugovern
ance:u(1)uanueffectiveuanduengageduboarduofudirectors,u(2)ushareholderuactivism,uandu(3)uprop
erumanagerialurewardsuanduincentives.
Difficulty:u2uMedium
Topic:u CorporateuGovernance
LearninguObjective:u 01-
03uTheustrategicuroleuofucorporateugovernanceuandustakeholderumanagement,uasuwelluasuhowu"s
ymbiosis"ucanubeuachieveduamonguanuorganization'sustakeholders.uBloom's:u Understand
AACSB:u AnalyticaluThinkinguAcces
sibility:u KeyboarduNavigation
12) Socialuresponsibilityuisutheuideauthatuorganizationsuareuonlyuaccountableutoustockholders.
Answer:u FALSE
Explanation:u Socialuresponsibilityuisutheuexpectationuthatubusinessesuoruindividualsuwillustriveut
ouimproveutheuoveralluwelfareuofusociety.uFromutheuperspectiveuofuaubusiness,uthisumeansuthatu
managersumustutakeuactiveustepsutoumakeusocietyubetterubyuvirtueuofutheubusinessubeinguinuexist
ence.
Difficulty:u2uMedium
Topic:u CorporateuSocialuResponsibilityuanduSustainability
LearninguObjective:u 01-
04uTheuimportanceuofusocialuresponsibility,uincludinguenvironmentalusustainability,uanduhowuit
ucanuenhanceuaucorporation'suinnovationustrategy.
Bloom's:u Analyze
AACSB:u AnalyticaluThinkinguAcces
sibility:u KeyboarduNavigation
