GEB4891 MIDTERM REVIEW CH. 1-6 (Chapter 1) Questions And Answers

GEB4891 MIDTERM REVIEW CH. 1-6
(Chapter 1) Questions And Answers
1) Strategic management focuses on integrating management, marketing,
finance/accounting, production/operations, research and development, and information
systems to achieve organizational success. - CORRECT ANSWER-TRUE

2) Optimizing for tomorrow the trends of today is the purpose of strategic management.
- CORRECT ANSWER-FALSE

3) Even though useful, strategic planning has been cast aside by corporate America
since the early 1990s. - CORRECT ANSWER-FALSE

4) Resource allocation is included in strategy-formulation activities. - CORRECT
ANSWER-TRUE

5) The terms strategic management and strategic planning are synonymous in this text.
- CORRECT ANSWER-TRUE

6) A vision statement identifies the scope of a firm's operations in product and market
terms. - CORRECT ANSWER-FALSE

7) Strategy implementation is often considered to be the most difficult stage in the
strategic-management process because it requires personal discipline, commitment,
and sacrifice. - CORRECT ANSWER-TRUE

8) The final stage in strategic management is strategy implementation. - CORRECT
ANSWER-FALSE

9) Strategy formulation, implementation and evaluation activities occur at three
hierarchical levels in a large organization - CORRECT ANSWER-corporate, divisional
and functional.
: TRUE

10) One of the fundamental strategy evaluation activities is reviewing external and
internal factors that are the bases for current strategies. - CORRECT ANSWER-TRUE

11) An objective, logical, systematic approach for making major decisions in an
organization is a way to describe the strategic-management process. - CORRECT
ANSWER-TRUE

, 12) Strategic management is an attempt to organize qualitative and quantitative
information in a way that allows effective decisions to be made under conditions of
uncertainty. - CORRECT ANSWER-TRUE

13) Analytical and intuitive thinking should complement each other. - CORRECT
ANSWER-TRUE

14) According to Albert Einstein, "Knowledge is far more important than intuition." -
CORRECT ANSWER-FALSE

15) Management by intuition can be defined as operating from the "I've-already-made-
up-my-mind-don't-bother- me-with-the-facts mode." - CORRECT ANSWER-FALSE

16) By occasionally monitoring external events, companies should be able to identify
when change is required. - CORRECT ANSWER-FALSE

17) Firms, like organisms, must be "adept at adapting" or they will not survive. -
CORRECT ANSWER-TRUE

18) To say U.S. firms are being challenged in the automobile industry is an inaccurate
statement. - CORRECT ANSWER-FALSE

19) Anything the firm does especially well compared to rival firms could be considered a
competitive advantage. - CORRECT ANSWER-TRUE

20) Once a firm acquires a competitive advantage, they are usually able to sustain the
competitive advantage indefinitely. - CORRECT ANSWER-FALSE

21) Newspaper companies in the United States provide a good example of how a
company can sustain a competitive advantage over the long-term. - CORRECT
ANSWER-FALSE

22) Although the Internet has increased in popularity, it has actually led to increases in
company expenses. - CORRECT ANSWER-FALSE

23) While the number of people shopping online has increased, the average amount
spent online has decreased. - CORRECT ANSWER-FALSE

24) One of the ways in which the Internet has transferred power from businesses to
individuals is by making comparison-shopping quick and easy. - CORRECT ANSWER-
TRUE

25) Most traditional retailers have tried in vain to use their online sales to boost in-store
sales. - CORRECT ANSWER-FALSE