Chapter 01
Strategic Management: Creating Competitive Advantages
True / False Questions
1. Hewlett-Packard's failure and success under the leadership first of Carly Fiorina and then of Mark
Hurd was said to be a direct result of the quality of leadership of each of these CEOs. According to the
text, this would be an example of the "romantic" perspective of leadership.
True False
2. Strategic management consists of the analyses, decisions, and actions an organization undertakes in
order to create and sustain competitive advantages.
True False
3. Strategic management is concerned with the analysis of strategic goals as stated in the vision, mission,
and strategic objectives of a firm.
True False
4. The three interrelated and principal activities of strategic management are: strategy analysis, strategy
formulation, and strategy implementation.
True False
5. Strategic management is not concerned with how to create competitive advantage in the marketplace.
True False
,6. 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.
True False
7. Making trade-off decisions between effectiveness and efficiency is central to the practice of strategic
management.
True False
8. Only shareholders in a publicly held company are stakeholders because they are the only group that has
a stake in the success of the organization.
True False
9. Strategic management is only concerned with short-term perspectives.
True False
10. Focusing on a single stakeholder is a good strategic principle for managers to follow.
True False
11. According to Peter Senge, a leading strategic management author, creative tension results from the
need to incorporate both short-term and long-term perspectives in strategic management.
True False
12. Shareholders expect only short-term value and therefore good managers should only focus on meeting
short-term performance targets.
True False
13. Focusing on the short term and efficiency is always a bad management principle.
True False
,14. Ambidexterity refers to a manager's challenge to align resources, without having to take advantage of
existing product markets or to proactively explore new opportunities.
True False
15. According to a recent study involving 41 business units in 10 multinational companies, one
ambidextrous behavior exhibited by managers is that of being brokers who are always looking to build
internal networks.
True False
16. According to Henry Mintzberg, a management scholar, most firms realize their original intended
strategy.
True False
17. The final realized strategy of a firm is a combination of deliberate and emergent strategies.
True False
18. In the Mintzberg model, organizational decisions determined only by analysis are intended strategy.
True False
19. Strategy analysis is the study of the external environments of the firm.
True False
20. Both the internal and external environments of a firm must be analyzed as well as the goals of the firm
before managers can formulate and implement appropriate strategies.
True False
21. Strategy formulation involves decisions made by firms regarding investments, commitments, and other
aspects of operations that create and sustain competitive advantage.
True False
, 22. All successful firms compete and outperform their rivals by developing bases for competitive
advantage, which can be achieved only through cost leadership.
True False
23. Business-level strategy focuses on (1) what businesses to compete in and (2) the management of the
business portfolio to create synergy among its businesses.
True False
24. Corporate-level strategy addresses how firms compete and outperform their rivals as well as achieve
and sustain competitive advantages.
True False
25. International strategy involves decisions concerning appropriate entry strategy and attaining
competitive advantage in international markets.
True False
26. Entrepreneurial activity aimed at new value creation is not a major engine for economic growth.
True False
27. Strategy implementation involves actions that carry out the formulated strategy including proper
strategic controls, organizational designs, and leadership.
True False
28. Effective leadership can play a large role in fostering corporate entrepreneurship. Corporate
entrepreneurship can have a very positive impact on the bottom line of a firm.
True False
Strategic Management: Creating Competitive Advantages
True / False Questions
1. Hewlett-Packard's failure and success under the leadership first of Carly Fiorina and then of Mark
Hurd was said to be a direct result of the quality of leadership of each of these CEOs. According to the
text, this would be an example of the "romantic" perspective of leadership.
True False
2. Strategic management consists of the analyses, decisions, and actions an organization undertakes in
order to create and sustain competitive advantages.
True False
3. Strategic management is concerned with the analysis of strategic goals as stated in the vision, mission,
and strategic objectives of a firm.
True False
4. The three interrelated and principal activities of strategic management are: strategy analysis, strategy
formulation, and strategy implementation.
True False
5. Strategic management is not concerned with how to create competitive advantage in the marketplace.
True False
,6. 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.
True False
7. Making trade-off decisions between effectiveness and efficiency is central to the practice of strategic
management.
True False
8. Only shareholders in a publicly held company are stakeholders because they are the only group that has
a stake in the success of the organization.
True False
9. Strategic management is only concerned with short-term perspectives.
True False
10. Focusing on a single stakeholder is a good strategic principle for managers to follow.
True False
11. According to Peter Senge, a leading strategic management author, creative tension results from the
need to incorporate both short-term and long-term perspectives in strategic management.
True False
12. Shareholders expect only short-term value and therefore good managers should only focus on meeting
short-term performance targets.
True False
13. Focusing on the short term and efficiency is always a bad management principle.
True False
,14. Ambidexterity refers to a manager's challenge to align resources, without having to take advantage of
existing product markets or to proactively explore new opportunities.
True False
15. According to a recent study involving 41 business units in 10 multinational companies, one
ambidextrous behavior exhibited by managers is that of being brokers who are always looking to build
internal networks.
True False
16. According to Henry Mintzberg, a management scholar, most firms realize their original intended
strategy.
True False
17. The final realized strategy of a firm is a combination of deliberate and emergent strategies.
True False
18. In the Mintzberg model, organizational decisions determined only by analysis are intended strategy.
True False
19. Strategy analysis is the study of the external environments of the firm.
True False
20. Both the internal and external environments of a firm must be analyzed as well as the goals of the firm
before managers can formulate and implement appropriate strategies.
True False
21. Strategy formulation involves decisions made by firms regarding investments, commitments, and other
aspects of operations that create and sustain competitive advantage.
True False
, 22. All successful firms compete and outperform their rivals by developing bases for competitive
advantage, which can be achieved only through cost leadership.
True False
23. Business-level strategy focuses on (1) what businesses to compete in and (2) the management of the
business portfolio to create synergy among its businesses.
True False
24. Corporate-level strategy addresses how firms compete and outperform their rivals as well as achieve
and sustain competitive advantages.
True False
25. International strategy involves decisions concerning appropriate entry strategy and attaining
competitive advantage in international markets.
True False
26. Entrepreneurial activity aimed at new value creation is not a major engine for economic growth.
True False
27. Strategy implementation involves actions that carry out the formulated strategy including proper
strategic controls, organizational designs, and leadership.
True False
28. Effective leadership can play a large role in fostering corporate entrepreneurship. Corporate
entrepreneurship can have a very positive impact on the bottom line of a firm.
True False
