STRATEGIC MANAGEMENT:
CONCEPTS, PROCESS, AND
CASE ANALYSIS
1. What is the primary focus of strategic management?
a. Managing daily operations
b. Formulating, implementing, and evaluating cross-functional decisions that enable an
organization to achieve its objectives ✅
c. Increasing employee motivation
d. Improving customer satisfaction
2. What are the key components of a strategic management model?
a. Only mission statement and objectives
b. Vision and mission statements, external and internal assessments, long-term objectives,
strategies, annual objectives, and policies ✅
c. Organizational chart and structure
d. Budgeting and auditing
3. What is the difference between a vision statement and a mission statement?
a. Vision focuses on purpose; mission focuses on future
b. Vision outlines what an organization wants to become, while mission defines its
purpose and primary objectives ✅
c. Mission is about goals; vision is about procedures
d. Vision and mission mean the same thing
4. Which of the following is a benefit of strategic management?
a. Reduces organizational control
b. Financial gains and enhanced competitive advantage ✅
c. Increases employee turnover
d. Reduces flexibility
5. What is an external audit in strategic management?
a. Internal performance evaluation
b. Financial compliance review
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, c. Assessment of external environment to identify opportunities and threats ✅
d. Product quality inspection
6. Which of the following is NOT part of Porter’s Five Forces?
a. Bargaining power of consumers
b. Threat of substitute products
c. Government regulation ✅
d. Rivalry among competing firms
7. What is the purpose of a Competitive Profile Matrix (CPM)?
a. To develop marketing plans
b. To compare a firm’s strengths and weaknesses with competitors ✅
c. To forecast economic trends
d. To evaluate employee performance
8. What is the significance of long-term objectives?
a. Provide short-term financial gains
b. Offer direction and measure performance and success ✅
c. Focus only on internal efficiency
d. Eliminate external competition
9. What role do stakeholders play in strategic management?
a. They are not involved in strategic planning
b. They influence and are affected by organizational strategies ✅
c. They only provide financial support
d. They execute marketing strategies
10. What does the Industrial Organization (I/O) view emphasize?
a. Internal strengths
b. Employee motivation
c. External factors influencing firm performance ✅
d. Organizational leadership
2
, 11. Why are mission statement components important?
a. They increase profit directly
b. They clarify purpose, values, and key stakeholders ✅
c. They define legal structure
d. They manage production
12. What is the process of developing vision and mission statements?
a. Hiring consultants
b. Assessing core values, purpose, and aspirations, then drafting and finalizing ✅
c. Reviewing past profits
d. Copying from competitors
13. Which is a common pitfall in strategic planning?
a. Having measurable objectives
b. Lack of clear goals and poor communication ✅
c. Continuous environmental scanning
d. Proper resource allocation
14. What is the purpose of competitive intelligence programs?
a. To monitor employee behavior
b. To collect data about competitors for decision-making ✅
c. To design new products
d. To manage customer feedback
15. Why is environmental sustainability important in strategic management?
a. It ensures short-term profits
b. It helps avoid taxes
c. It promotes long-term viability and social responsibility ✅
d. It increases bureaucracy
16. How does strategic management adapt to change?
a. Ignoring the environment
b. Focusing only on internal issues
c. Continuously monitoring the environment and adjusting strategies ✅
d. Waiting for competitors to act first
3
CONCEPTS, PROCESS, AND
CASE ANALYSIS
1. What is the primary focus of strategic management?
a. Managing daily operations
b. Formulating, implementing, and evaluating cross-functional decisions that enable an
organization to achieve its objectives ✅
c. Increasing employee motivation
d. Improving customer satisfaction
2. What are the key components of a strategic management model?
a. Only mission statement and objectives
b. Vision and mission statements, external and internal assessments, long-term objectives,
strategies, annual objectives, and policies ✅
c. Organizational chart and structure
d. Budgeting and auditing
3. What is the difference between a vision statement and a mission statement?
a. Vision focuses on purpose; mission focuses on future
b. Vision outlines what an organization wants to become, while mission defines its
purpose and primary objectives ✅
c. Mission is about goals; vision is about procedures
d. Vision and mission mean the same thing
4. Which of the following is a benefit of strategic management?
a. Reduces organizational control
b. Financial gains and enhanced competitive advantage ✅
c. Increases employee turnover
d. Reduces flexibility
5. What is an external audit in strategic management?
a. Internal performance evaluation
b. Financial compliance review
1
, c. Assessment of external environment to identify opportunities and threats ✅
d. Product quality inspection
6. Which of the following is NOT part of Porter’s Five Forces?
a. Bargaining power of consumers
b. Threat of substitute products
c. Government regulation ✅
d. Rivalry among competing firms
7. What is the purpose of a Competitive Profile Matrix (CPM)?
a. To develop marketing plans
b. To compare a firm’s strengths and weaknesses with competitors ✅
c. To forecast economic trends
d. To evaluate employee performance
8. What is the significance of long-term objectives?
a. Provide short-term financial gains
b. Offer direction and measure performance and success ✅
c. Focus only on internal efficiency
d. Eliminate external competition
9. What role do stakeholders play in strategic management?
a. They are not involved in strategic planning
b. They influence and are affected by organizational strategies ✅
c. They only provide financial support
d. They execute marketing strategies
10. What does the Industrial Organization (I/O) view emphasize?
a. Internal strengths
b. Employee motivation
c. External factors influencing firm performance ✅
d. Organizational leadership
2
, 11. Why are mission statement components important?
a. They increase profit directly
b. They clarify purpose, values, and key stakeholders ✅
c. They define legal structure
d. They manage production
12. What is the process of developing vision and mission statements?
a. Hiring consultants
b. Assessing core values, purpose, and aspirations, then drafting and finalizing ✅
c. Reviewing past profits
d. Copying from competitors
13. Which is a common pitfall in strategic planning?
a. Having measurable objectives
b. Lack of clear goals and poor communication ✅
c. Continuous environmental scanning
d. Proper resource allocation
14. What is the purpose of competitive intelligence programs?
a. To monitor employee behavior
b. To collect data about competitors for decision-making ✅
c. To design new products
d. To manage customer feedback
15. Why is environmental sustainability important in strategic management?
a. It ensures short-term profits
b. It helps avoid taxes
c. It promotes long-term viability and social responsibility ✅
d. It increases bureaucracy
16. How does strategic management adapt to change?
a. Ignoring the environment
b. Focusing only on internal issues
c. Continuously monitoring the environment and adjusting strategies ✅
d. Waiting for competitors to act first
3
