Strategic Management: Creating Competitive Advantages, 2026 Release Test Bank - Dess

Test Bank Strategic Management: Creating Competitive Advantages, 2026 Release Gregory G. Dess, McNamara, Eisner, Sauerwald
Updated Questions with Answers


Chap 01 - Dess - 2026 Release
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) The success of Apple under its former CEO, Steve Jobs, was largely attributed to the quality
of its leader. According to the text, this would be an example of the “romantic” perspective of
leadership.
1) ______
▢ true ▢ false



2) Strategic management consists of the analyses, decisions, and actions an organization
undertakes in order to create and sustain competitive advantages.
2) ______
▢ true ▢ false


3) Management innovations such as total quality, just-in-time, benchmarking, business process
reengineering, and outsourcing are important but not enough for building sustainable
competitive advantage.
3) ______
▢ true ▢ false


4) Trade-off decisions between effectiveness and efficiency are important in the practice of
strategic management.
4) ______
▢ true ▢ false



5) According to the textbook, digitizing existing business processes rarely improves efficiency.
5) ______
▢ true ▢ false




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,6) A company that digitizes existing processes may achieve operational excellence on an
outdated value proposition. Airbnb is an example of a company that entered the market with
a superior digital offering, competing against hotels that had only digitized processes.
6) ______
▢ true ▢ false


7) According to Henry Mintzberg, a management scholar, most firms do not realize their
original intended strategy.
7) ______
▢ true ▢ false


8) The final realized strategy of a firm is a combination of deliberate and time-tested strategies
only.
8) ______
▢ true ▢ false


9) Strategy analysis is the study of only the big picture external environments of the firm.
9) ______
▢ true ▢ false


10) All successful firms compete and outperform their rivals by developing bases for competitive
advantage, which can be achieved only through cost leadership.
10) ______
▢ true ▢ false


11) The three primary participants in corporate governance are:
1. (1) the shareholders,
2. (2) the management (led by the chief executive officer),
3. and (3) the employees.
11) ______
▢ true ▢ false




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,12) Decisions by boards of directors are always consistent with shareholder interests.
12) ______
▢ true ▢ false


13) Ensuring effective corporate governance requires an effective and engaged board of
directors, uninvolved shareholders, and proper managerial rewards and incentives.
13) ______
▢ true ▢ false


14) The core mission of the board of directors is to provide strong oversight and strategic support
for employee efforts to receive maximum financial and monetary equivalent benefits.
14) ______
▢ true ▢ false


15) Social responsibility is the idea that organizations are only accountable to stockholders.
15) ______
▢ true ▢ false


16) Shell, NEC, and Procter and Gamble have been measuring their performance according to
what has been called a triple bottom line. This technique involves an assessment of financial,
social, and environmental performance.
16) ______
▢ true ▢ false


17) Sustainability is being increasingly recognized as a source of cost efficiencies and revenue
growth.
17) ______
▢ true ▢ false




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, 18) Responsible investment approaches evaluate companies based on environmental, social, and
growth criteria (ESG investment trend).
18) ______
▢ true ▢ false


19) Focusing on the ESG criteria enhances corporate financial performance because it does not
benefit society or investors who support ESG funds.
19) ______
▢ true ▢ false



20) Strategic management requires managers at all levels of the organization to take a segregated
view of the organization.
20) ______
▢ true ▢ false


21) The strategic management process should be addressed only by top-level executives. Mid-
level and low-level employees are best equipped to implement the strategies of the
organization.
21) ______
▢ true ▢ false



22) Richard Branson, the founder of the Virgin Group, is well known for creating an inclusive
organizational structure in which anybody in the organization can be involved in generating
and acting on new business ideas.
22) ______
▢ true ▢ false


23) Managers must create management processes to foster change. In the example of the filming
of the movie Gorillas in the Mist, an intern suggested a way to save costs and the film
director listened. This is an example of empowerment.
23) ______
▢ true ▢ false




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