,Strategic Management: Text and Cases, 9e (Dess)
zl zl zl zl zl zl
Chapter 1 Strategic Management: Creating Competitive Advantages
zl z l zl zl zl zl
1) Lands' End's failure under the leadership of Ms. Frederica Marchionni was said to be a direct res
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ult of the quality of her leadership. According to the text, this would be an example of the "romant
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ic" perspective of leadership.
zl zl zl
Answer: TRUE z l
Explanation: In the romantic view of leadership, the implicit assumption is that the leader is the ke
z l zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
y force in determining an organization's success or lack thereof. Under Ms. Marchionni's leadersh
zl zl zl zl zl zl zl zl zl zl zl zl zl
ip, the company reported a 19.5-million-dollar loss for 2016 after having reported a 73.8-million-
zl zl zl zl zl zl zl zl zl zl zl zl zl
dollar profit for the previous year under its previous CEO.
zl zl zl zl zl zl zl zl zl
Difficulty: 2 Medium zl zl
Topic: Strategy and the Strategic Management Process
z l zl zl zl zl zl
Learning Objective: 01- zl z l
01 The definition of strategic management and its four key attributes. Bloom's: Understand
zl zl zl zl zl zl zl zl zl zl zl z l
AACSB: Analytical Thinking Accessi z l zl zl
bility: Keyboard Navigation
z l zl
2) Strategic management consists of the analyses, decisions, and actions an organization u
zl zl zl zl zl zl zl zl zl zl zl
ndertakes in order to create and sustain competitive advantages.
zl zl zl zl zl zl zl zl
Answer: TRUE z l
Explanation: According to the textbook, this is the definition of strategic management. Difficulty
z l zl zl zl zl zl zl zl zl zl zl zl
: 1 Easy
zl zl
Topic: Strategy and the Strategic Management Process
z l zl zl zl zl zl
Learning Objective: 01- zl z l
01 The definition of strategic management and its four key attributes. Bloom's: Remember
zl zl zl zl zl zl zl zl zl zl zl z l
AACSB: Knowledge Application Acc z l zl zl
essibility: Keyboard Navigation z l zl
3) Management innovations such as total quality, just-in- zl zl zl zl zl zl
time, benchmarking, business process reengineering, and outsourcing are important but not enough
zl zl zl zl zl zl zl zl zl zl zl zl
for building sustainable competitive advantage.
zl zl zl zl
Answer: TRUE z l
Explanation: Sustainable competitive advantage cannot be achieved through operational effectiv
z l zl zl zl zl zl zl zl zl
eness alone. Popular management innovations of the last two decades like total quality, just-in-
zl zl zl zl zl zl zl zl zl zl zl zl zl
time, benchmarking, business process reengineering, and outsourcing are concerned with operatio
zl zl zl zl zl zl zl zl zl zl
nal effectiveness.
zl
Difficulty: 2 Medium zl zl
Topic: Strategy and the Strategic Management Process
z l zl zl zl zl zl
Learning Objective: 01- zl z l
01 The definition of strategic management and its four key attributes. Bloom's: Understand
zl zl zl zl zl zl zl zl zl zl zl z l
AACSB: Analytical Thinking Accessi z l zl zl
bility: Keyboard Navigation
z l zl
4) Trade-off decisions between effectiveness and efficiency are important in the practice of
zl zl zl zl zl zl zl zl zl zl zl
,strategic management. zl
Answer: TRUE z l
Explanation: The fourth attribute of strategic management is that it involves the recognition of tr
z l zl zl zl zl zl zl zl zl zl zl zl zl zl
ade-
offs between effectiveness and efficiency. Some authors have referred to this as the difference be
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
tween doing the right thing (effectiveness) and doing things right (efficiency).
zl zl zl zl zl zl zl zl zl zl
Difficulty: 2 Medium zl zl
Topic: Strategy and the Strategic Management Process
z l zl zl zl zl zl
Learning Objective: 01- zl z l
01 The definition of strategic management and its four key attributes. Bloom's: Understand
zl zl zl zl zl zl zl zl zl zl zl z l
AACSB: Analytical Thinking Accessi z l zl zl
bility: Keyboard Navigation
z l zl
5) According to Henry Mintzberg, a management scholar, most firms do not realize their original int
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ended strategy. zl
Answer: TRUE z l
Explanation: Henry Mintzberg states that the intended strategy rarely survives in its original form.
z l zl zl zl zl zl zl zl zl zl zl zl zl zl
Unforeseen environmental developments, unanticipated resource constraints, or changes in manage
zl zl zl zl zl zl zl zl zl
rial preferences may result in at least some parts of the intended strategy remaining unrealized. On t
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
he other hand, good managers will want to take advantage of a new opportunity presented by the en
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
vironment, even if it was not part of the original set of intentions.
zl zl zl zl zl zl zl zl zl zl zl zl
Difficulty: 2 Medium zl zl
Topic: Strategy and the Strategic Management Process
z l zl zl zl zl zl
Learning Objective: 01- zl z l
02 The strategic management process and its three interrelated and principal activities.
zl zl zl zl zl zl zl zl zl zl zl
Bloom's: Understand AACS z l zl
B: Analytical Thinking
z l zl
Accessibility: Keyboard Navigation z l zl
6) The final realized strategy of a firm is a combination of deliberate and time-
zl zl zl zl zl zl zl zl zl zl zl zl zl
tested strategies only.
zl zl
Answer: FALSE z l
Explanation: Realized strategy is that strategy of a firm in which organizational decisions are deter
z l zl zl zl zl zl zl zl zl zl zl zl zl zl
mined by both analysis and unforeseen environmental developments, unanticipated resource constrai
zl zl zl zl zl zl zl zl zl zl
nts, and/or changes in managerial preferences.
zl zl zl zl zl
Difficulty: 2 Medium zl zl
Topic: Strategy and the Strategic Management Process
z l zl zl zl zl zl
Learning Objective: 01- zl z l
02 The strategic management process and its three interrelated and principal activities.
zl zl zl zl zl zl zl zl zl zl zl
Bloom's: Understand z l
AACSB: Knowledge Application Acc z l zl zl
essibility: Keyboard Navigation z l zl
, 7) Strategy analysis is the study of only the big picture external environments of the firm.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
Answer: FALSE z l
Explanation: Strategy analysis is the study of the external and internal environments of a firm, an
z l zl zl zl zl zl zl zl zl zl zl zl zl zl zl
d their fit with organizational vision and goals.
zl zl zl zl zl zl zl
Difficulty: 2 Medium zl zl
Topic: Strategy and the Strategic Management Process
z l zl zl zl zl zl
Learning Objective: 01- zl z l
02 The strategic management process and its three interrelated and principal activities.
zl zl zl zl zl zl zl zl zl zl zl
Bloom's: Understand z l
AACSB: Knowledge Application Acc z l zl zl
essibility: Keyboard Navigation z l zl
8) All successful firms compete and outperform their rivals by developing bases for competitive ad
zl zl zl zl zl zl zl zl zl zl zl zl zl
vantage, which can be achieved only through cost leadership.
zl zl zl zl zl zl zl zl
Answer: FALSE z l
Explanation: Successful firms strive to develop bases for competitive advantage, which can be achie
z l zl zl zl zl zl zl zl zl zl zl zl zl
ved through cost leadership and/or differentiation as well as by focusing on a narrow or industrywide
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
market segment.
zl zl
Difficulty: 2 Medium zl zl
Topic: Strategy and the Strategic Management Process
z l zl zl zl zl zl
Learning Objective: 01- zl z l
02 The strategic management process and its three interrelated and principal activities.
zl zl zl zl zl zl zl zl zl zl zl
Bloom's: Understand AACS z l zl
B: Analytical Thinking
z l zl
Accessibility: Keyboard Navigation z l zl
9) The three primary participants in corporate governance are: (1) the shareholders, (2) the m
zl zl zl zl zl zl zl zl zl zl zl zl zl
anagement (led by the chief executive officer), and (3) the employees.
zl zl zl zl zl zl zl zl zl zl
Answer: FALSE z l
Explanation: The primary participants are: (1) the shareholders, (2) the management (led by the chief
z l zl zl zl zl zl zl zl zl zl zl zl zl zl
executive officer), and (3) the board of directors.
zl zl zl zl zl zl zl zl
Difficulty: 2 Medium zl zl
Topic: Corporate Governance
z l zl
Learning Objective: 01- zl z l
03 The strategic role of corporate governance and stakeholder management, as well as how "symbio
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
sis" can be achieved among an organization's stakeholders. Bloom's: Understand
zl zl zl zl zl zl zl zl z l
AACSB: Knowledge Application Acc z l zl zl
essibility: Keyboard Navigation z l zl
zl zl zl zl zl zl
Chapter 1 Strategic Management: Creating Competitive Advantages
zl z l zl zl zl zl
1) Lands' End's failure under the leadership of Ms. Frederica Marchionni was said to be a direct res
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ult of the quality of her leadership. According to the text, this would be an example of the "romant
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ic" perspective of leadership.
zl zl zl
Answer: TRUE z l
Explanation: In the romantic view of leadership, the implicit assumption is that the leader is the ke
z l zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
y force in determining an organization's success or lack thereof. Under Ms. Marchionni's leadersh
zl zl zl zl zl zl zl zl zl zl zl zl zl
ip, the company reported a 19.5-million-dollar loss for 2016 after having reported a 73.8-million-
zl zl zl zl zl zl zl zl zl zl zl zl zl
dollar profit for the previous year under its previous CEO.
zl zl zl zl zl zl zl zl zl
Difficulty: 2 Medium zl zl
Topic: Strategy and the Strategic Management Process
z l zl zl zl zl zl
Learning Objective: 01- zl z l
01 The definition of strategic management and its four key attributes. Bloom's: Understand
zl zl zl zl zl zl zl zl zl zl zl z l
AACSB: Analytical Thinking Accessi z l zl zl
bility: Keyboard Navigation
z l zl
2) Strategic management consists of the analyses, decisions, and actions an organization u
zl zl zl zl zl zl zl zl zl zl zl
ndertakes in order to create and sustain competitive advantages.
zl zl zl zl zl zl zl zl
Answer: TRUE z l
Explanation: According to the textbook, this is the definition of strategic management. Difficulty
z l zl zl zl zl zl zl zl zl zl zl zl
: 1 Easy
zl zl
Topic: Strategy and the Strategic Management Process
z l zl zl zl zl zl
Learning Objective: 01- zl z l
01 The definition of strategic management and its four key attributes. Bloom's: Remember
zl zl zl zl zl zl zl zl zl zl zl z l
AACSB: Knowledge Application Acc z l zl zl
essibility: Keyboard Navigation z l zl
3) Management innovations such as total quality, just-in- zl zl zl zl zl zl
time, benchmarking, business process reengineering, and outsourcing are important but not enough
zl zl zl zl zl zl zl zl zl zl zl zl
for building sustainable competitive advantage.
zl zl zl zl
Answer: TRUE z l
Explanation: Sustainable competitive advantage cannot be achieved through operational effectiv
z l zl zl zl zl zl zl zl zl
eness alone. Popular management innovations of the last two decades like total quality, just-in-
zl zl zl zl zl zl zl zl zl zl zl zl zl
time, benchmarking, business process reengineering, and outsourcing are concerned with operatio
zl zl zl zl zl zl zl zl zl zl
nal effectiveness.
zl
Difficulty: 2 Medium zl zl
Topic: Strategy and the Strategic Management Process
z l zl zl zl zl zl
Learning Objective: 01- zl z l
01 The definition of strategic management and its four key attributes. Bloom's: Understand
zl zl zl zl zl zl zl zl zl zl zl z l
AACSB: Analytical Thinking Accessi z l zl zl
bility: Keyboard Navigation
z l zl
4) Trade-off decisions between effectiveness and efficiency are important in the practice of
zl zl zl zl zl zl zl zl zl zl zl
,strategic management. zl
Answer: TRUE z l
Explanation: The fourth attribute of strategic management is that it involves the recognition of tr
z l zl zl zl zl zl zl zl zl zl zl zl zl zl
ade-
offs between effectiveness and efficiency. Some authors have referred to this as the difference be
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
tween doing the right thing (effectiveness) and doing things right (efficiency).
zl zl zl zl zl zl zl zl zl zl
Difficulty: 2 Medium zl zl
Topic: Strategy and the Strategic Management Process
z l zl zl zl zl zl
Learning Objective: 01- zl z l
01 The definition of strategic management and its four key attributes. Bloom's: Understand
zl zl zl zl zl zl zl zl zl zl zl z l
AACSB: Analytical Thinking Accessi z l zl zl
bility: Keyboard Navigation
z l zl
5) According to Henry Mintzberg, a management scholar, most firms do not realize their original int
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ended strategy. zl
Answer: TRUE z l
Explanation: Henry Mintzberg states that the intended strategy rarely survives in its original form.
z l zl zl zl zl zl zl zl zl zl zl zl zl zl
Unforeseen environmental developments, unanticipated resource constraints, or changes in manage
zl zl zl zl zl zl zl zl zl
rial preferences may result in at least some parts of the intended strategy remaining unrealized. On t
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
he other hand, good managers will want to take advantage of a new opportunity presented by the en
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
vironment, even if it was not part of the original set of intentions.
zl zl zl zl zl zl zl zl zl zl zl zl
Difficulty: 2 Medium zl zl
Topic: Strategy and the Strategic Management Process
z l zl zl zl zl zl
Learning Objective: 01- zl z l
02 The strategic management process and its three interrelated and principal activities.
zl zl zl zl zl zl zl zl zl zl zl
Bloom's: Understand AACS z l zl
B: Analytical Thinking
z l zl
Accessibility: Keyboard Navigation z l zl
6) The final realized strategy of a firm is a combination of deliberate and time-
zl zl zl zl zl zl zl zl zl zl zl zl zl
tested strategies only.
zl zl
Answer: FALSE z l
Explanation: Realized strategy is that strategy of a firm in which organizational decisions are deter
z l zl zl zl zl zl zl zl zl zl zl zl zl zl
mined by both analysis and unforeseen environmental developments, unanticipated resource constrai
zl zl zl zl zl zl zl zl zl zl
nts, and/or changes in managerial preferences.
zl zl zl zl zl
Difficulty: 2 Medium zl zl
Topic: Strategy and the Strategic Management Process
z l zl zl zl zl zl
Learning Objective: 01- zl z l
02 The strategic management process and its three interrelated and principal activities.
zl zl zl zl zl zl zl zl zl zl zl
Bloom's: Understand z l
AACSB: Knowledge Application Acc z l zl zl
essibility: Keyboard Navigation z l zl
, 7) Strategy analysis is the study of only the big picture external environments of the firm.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
Answer: FALSE z l
Explanation: Strategy analysis is the study of the external and internal environments of a firm, an
z l zl zl zl zl zl zl zl zl zl zl zl zl zl zl
d their fit with organizational vision and goals.
zl zl zl zl zl zl zl
Difficulty: 2 Medium zl zl
Topic: Strategy and the Strategic Management Process
z l zl zl zl zl zl
Learning Objective: 01- zl z l
02 The strategic management process and its three interrelated and principal activities.
zl zl zl zl zl zl zl zl zl zl zl
Bloom's: Understand z l
AACSB: Knowledge Application Acc z l zl zl
essibility: Keyboard Navigation z l zl
8) All successful firms compete and outperform their rivals by developing bases for competitive ad
zl zl zl zl zl zl zl zl zl zl zl zl zl
vantage, which can be achieved only through cost leadership.
zl zl zl zl zl zl zl zl
Answer: FALSE z l
Explanation: Successful firms strive to develop bases for competitive advantage, which can be achie
z l zl zl zl zl zl zl zl zl zl zl zl zl
ved through cost leadership and/or differentiation as well as by focusing on a narrow or industrywide
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
market segment.
zl zl
Difficulty: 2 Medium zl zl
Topic: Strategy and the Strategic Management Process
z l zl zl zl zl zl
Learning Objective: 01- zl z l
02 The strategic management process and its three interrelated and principal activities.
zl zl zl zl zl zl zl zl zl zl zl
Bloom's: Understand AACS z l zl
B: Analytical Thinking
z l zl
Accessibility: Keyboard Navigation z l zl
9) The three primary participants in corporate governance are: (1) the shareholders, (2) the m
zl zl zl zl zl zl zl zl zl zl zl zl zl
anagement (led by the chief executive officer), and (3) the employees.
zl zl zl zl zl zl zl zl zl zl
Answer: FALSE z l
Explanation: The primary participants are: (1) the shareholders, (2) the management (led by the chief
z l zl zl zl zl zl zl zl zl zl zl zl zl zl
executive officer), and (3) the board of directors.
zl zl zl zl zl zl zl zl
Difficulty: 2 Medium zl zl
Topic: Corporate Governance
z l zl
Learning Objective: 01- zl z l
03 The strategic role of corporate governance and stakeholder management, as well as how "symbio
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
sis" can be achieved among an organization's stakeholders. Bloom's: Understand
zl zl zl zl zl zl zl zl z l
AACSB: Knowledge Application Acc z l zl zl
essibility: Keyboard Navigation z l zl
