Page 1 of 81
STRATEGIC MANAGEMENT: TEXT AND CASES (10TH
EDITION) — DESS, MCNAMARA, EISNER, AND LEE
COMPLETE REVIEW WITH VERIFIED QUESTIONS
DETAILED RATIONALES GRADED A+
Strategic Management: Text and Cases (10th Edition) — Dess, McNamara, Eisner,
and Lee
Original Practice Questions — Strategic Management (10th Edition)
Chapter 1: Strategic Management — Creating Competitive Advantages
(Questions 1–25)
1. Which of the following best defines strategic management according to Dess
et al.?
A) The process of maximizing shareholder wealth through financial engineering
B) The analyses, decisions, and actions an organization undertakes to create and
sustain competitive advantages
C) A one-time planning event conducted annually by senior executives
D) The operational procedures used to improve efficiency in daily activities
Answer: B
Rationale: Strategic management consists of the analyses, decisions, and actions
an organization undertakes in order to create and sustain competitive advantages
.
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2. According to the "romantic" view of leadership, which statement is most
accurate?
A) External environmental factors are the primary determinants of firm success
B) The leader is the key force in determining an organization's success or failure
C) Leadership has minimal impact on organizational outcomes
D) Success is determined entirely by industry structure
Answer: B
Rationale: In the romantic view of leadership, the implicit assumption is that the
leader is the key force in determining the success or lack of success of an
organization .
3. Which of the following is NOT one of the four key attributes of strategic
management?
A) Directs the organization toward overall goals and objectives
B) Includes multiple stakeholders in decision making
C) Focuses exclusively on short-term financial performance
D) Recognizes trade-offs between efficiency and effectiveness
Answer: C
Rationale: The four key attributes include directing toward overall goals, including
multiple stakeholders, incorporating both short-term and long-term perspectives,
and recognizing trade-offs between efficiency and effectiveness .
4. In the external control view of leadership, which factor would NOT be
considered an external force affecting firm success?
A) Economic downturns
B) Governmental legislation
C) Company employee morale
D) Outbreak of war
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Answer: C
Rationale: Employee morale is an internal factor, not an external one. External
factors include economic conditions, legislation, and geopolitical events .
5. The strategic management process entails three ongoing processes. What are
they?
A) Analyses, actions, and synthesis
B) Analyses, decisions, and actions
C) Analyses, evaluation, and critique
D) Analyses, synthesis, and decisions
Answer: B
Rationale: The three ongoing processes are analyses (of internal and external
environments), decisions (about strategy formulation), and actions (strategy
implementation) .
6. According to Henry Mintzberg, a firm's realized strategy is a combination of
which two elements?
A) Intended strategy and emergent strategy
B) Deliberate strategy and abandoned strategy
C) Planned strategy and failed strategy
D) Vision and mission
Answer: A
Rationale: Realized strategy is the combination of deliberate (intended) strategy
and emergent strategies that arise from unanticipated developments .
7. What does the term "effectiveness" mean in the context of strategic
management?
A) Doing things right
B) Doing the right thing
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C) Maximizing productivity
D) Minimizing waste
Answer: B
Rationale: Effectiveness is tailoring actions to the needs of an organization—doing
the right thing—while efficiency is doing things right .
8. A CEO who is blamed for a company's decline and credited for its success is
operating under which perspective?
A) External control view
B) Romantic view
C) Stakeholder view
D) Symbiosis view
Answer: B
Rationale: The romantic view attributes organizational outcomes primarily to the
leader's actions, dominating popular business press coverage .
9. Which of the following is a key assumption of the external control view of
leadership?
A) Leaders have complete control over firm outcomes
B) External factors often determine firm success more than leadership actions
C) Internal resources are the primary source of competitive advantage
D) Leadership development is the key to organizational success
Answer: B
Rationale: The external control view emphasizes that external factors, often
unanticipated, play a major role in determining organizational success .
10. The difference between efficiency and effectiveness is best described as:
A) Efficiency is doing the right thing; effectiveness is doing things right
B) Efficiency is doing things right; effectiveness is doing the right thing
STRATEGIC MANAGEMENT: TEXT AND CASES (10TH
EDITION) — DESS, MCNAMARA, EISNER, AND LEE
COMPLETE REVIEW WITH VERIFIED QUESTIONS
DETAILED RATIONALES GRADED A+
Strategic Management: Text and Cases (10th Edition) — Dess, McNamara, Eisner,
and Lee
Original Practice Questions — Strategic Management (10th Edition)
Chapter 1: Strategic Management — Creating Competitive Advantages
(Questions 1–25)
1. Which of the following best defines strategic management according to Dess
et al.?
A) The process of maximizing shareholder wealth through financial engineering
B) The analyses, decisions, and actions an organization undertakes to create and
sustain competitive advantages
C) A one-time planning event conducted annually by senior executives
D) The operational procedures used to improve efficiency in daily activities
Answer: B
Rationale: Strategic management consists of the analyses, decisions, and actions
an organization undertakes in order to create and sustain competitive advantages
.
,Page 2 of 81
2. According to the "romantic" view of leadership, which statement is most
accurate?
A) External environmental factors are the primary determinants of firm success
B) The leader is the key force in determining an organization's success or failure
C) Leadership has minimal impact on organizational outcomes
D) Success is determined entirely by industry structure
Answer: B
Rationale: In the romantic view of leadership, the implicit assumption is that the
leader is the key force in determining the success or lack of success of an
organization .
3. Which of the following is NOT one of the four key attributes of strategic
management?
A) Directs the organization toward overall goals and objectives
B) Includes multiple stakeholders in decision making
C) Focuses exclusively on short-term financial performance
D) Recognizes trade-offs between efficiency and effectiveness
Answer: C
Rationale: The four key attributes include directing toward overall goals, including
multiple stakeholders, incorporating both short-term and long-term perspectives,
and recognizing trade-offs between efficiency and effectiveness .
4. In the external control view of leadership, which factor would NOT be
considered an external force affecting firm success?
A) Economic downturns
B) Governmental legislation
C) Company employee morale
D) Outbreak of war
,Page 3 of 81
Answer: C
Rationale: Employee morale is an internal factor, not an external one. External
factors include economic conditions, legislation, and geopolitical events .
5. The strategic management process entails three ongoing processes. What are
they?
A) Analyses, actions, and synthesis
B) Analyses, decisions, and actions
C) Analyses, evaluation, and critique
D) Analyses, synthesis, and decisions
Answer: B
Rationale: The three ongoing processes are analyses (of internal and external
environments), decisions (about strategy formulation), and actions (strategy
implementation) .
6. According to Henry Mintzberg, a firm's realized strategy is a combination of
which two elements?
A) Intended strategy and emergent strategy
B) Deliberate strategy and abandoned strategy
C) Planned strategy and failed strategy
D) Vision and mission
Answer: A
Rationale: Realized strategy is the combination of deliberate (intended) strategy
and emergent strategies that arise from unanticipated developments .
7. What does the term "effectiveness" mean in the context of strategic
management?
A) Doing things right
B) Doing the right thing
, Page 4 of 81
C) Maximizing productivity
D) Minimizing waste
Answer: B
Rationale: Effectiveness is tailoring actions to the needs of an organization—doing
the right thing—while efficiency is doing things right .
8. A CEO who is blamed for a company's decline and credited for its success is
operating under which perspective?
A) External control view
B) Romantic view
C) Stakeholder view
D) Symbiosis view
Answer: B
Rationale: The romantic view attributes organizational outcomes primarily to the
leader's actions, dominating popular business press coverage .
9. Which of the following is a key assumption of the external control view of
leadership?
A) Leaders have complete control over firm outcomes
B) External factors often determine firm success more than leadership actions
C) Internal resources are the primary source of competitive advantage
D) Leadership development is the key to organizational success
Answer: B
Rationale: The external control view emphasizes that external factors, often
unanticipated, play a major role in determining organizational success .
10. The difference between efficiency and effectiveness is best described as:
A) Efficiency is doing the right thing; effectiveness is doing things right
B) Efficiency is doing things right; effectiveness is doing the right thing
