Strategic Management: Text and Cases, 9e
(Dess)
Chapterh1h StrategichManagement:hCreatinghCompetitivehAdvantages
1) Lands'hEnd'shfailurehunderhthehleadershiphofhMs.hFredericahMarchionnihwashsaidhtohbehahdir
ecthresulthofhthehqualityhofhherhleadership.hAccordinghtohthehtext,hthishwouldhbehanhexampleho
fhtheh"romantic"hperspectivehofhleadership.
Answer:h TRUE
Explanation:h Inhthehromantichviewhofhleadership,hthehimplicithassumptionhishthaththehleaderhish
thehkeyhforcehinhdetermininghanhorganization'shsuccesshorhlackhthereof.hUnderhMs.hMarchionni
'shleadership,hthehcompanyhreportedhah19.5-million-
dollarhlosshforh2016hafterhhavinghreportedhah73.8-million-
dollarhprofithforhthehprevioushyearhunderhitshprevioushCEO.
Difficulty:h2hMedium
Topic:h StrategyhandhthehStrategichManagementhProcess
LearninghObjective:h 01-
01hThehdefinitionhofhstrategichmanagementhandhitshfourhkeyhattributes.hBloom's:h Understand
AACSB:h AnalyticalhThinkinghAccess
ibility:h KeyboardhNavigation
2) Strategichmanagementhconsistshofhthehanalyses,hdecisions,handhactionshanhorganizati
onhundertakeshinhorderhtohcreatehandhsustainhcompetitivehadvantages.
Answer:h TRUE
Explanation:h Accordinghtohthehtextbook,hthishishthehdefinitionhofhstrategichmanagement.hDiffic
ulty:h1hEasy
Topic:h StrategyhandhthehStrategichManagementhProcess
LearninghObjective:h 01-
01hThehdefinitionhofhstrategichmanagementhandhitshfourhkeyhattributes.hBloom's:h Remember
AACSB:h KnowledgehApplicationhAc
cessibility:h KeyboardhNavigation
3) Managementhinnovationshsuchhashtotalhquality,hjust-in-
time,hbenchmarking,hbusinesshprocesshreengineering,handhoutsourcingharehimportanthbuthnothen
oughhforhbuildinghsustainablehcompetitivehadvantage.
Answer:h TRUE
Explanation:h Sustainablehcompetitivehadvantagehcannothbehachievedhthroughhoperationalheffec
tivenesshalone.hPopularhmanagementhinnovationshofhthehlasthtwohdecadeshlikehtotalhquality,hjus
t-in-
time,hbenchmarking,hbusinesshprocesshreengineering,handhoutsourcingharehconcernedhwithhoper
ationalheffectiveness.
Difficulty:h2hMedium
Topic:h StrategyhandhthehStrategichManagementhProcess
LearninghObjective:h 01-
01hThehdefinitionhofhstrategichmanagementhandhitshfourhkeyhattributes.hBloom's:h Understand
AACSB:h AnalyticalhThinkinghAccess
ibility:h KeyboardhNavigation
4) Trade-offhdecisionshbetweenheffectivenesshandhefficiencyharehimportanthinhthehpracticehof
,strategichmanagement.
Answer:h TRUE
Explanation:h Thehfourthhattributehofhstrategichmanagementhishthathithinvolveshthehrecognition
hofhtrade-
offshbetweenheffectivenesshandhefficiency.hSomehauthorshhavehreferredhtohthishashthehdifferen
cehbetweenhdoinghthehrighththingh(effectiveness)handhdoinghthingshrighth(efficiency).
Difficulty:h2hMedium
Topic:h StrategyhandhthehStrategichManagementhProcess
LearninghObjective:h 01-
01hThehdefinitionhofhstrategichmanagementhandhitshfourhkeyhattributes.hBloom's:h Understand
AACSB:h AnalyticalhThinkinghAccess
ibility:h KeyboardhNavigation
5) AccordinghtohHenryhMintzberg,hahmanagementhscholar,hmosthfirmshdohnothrealizehtheirhorigi
nalhintendedhstrategy.
Answer:h TRUE
Explanation:h HenryhMintzberghstateshthaththehintendedhstrategyhrarelyhsurviveshinhitshoriginalhf
orm.hUnforeseenhenvironmentalhdevelopments,hunanticipatedhresourcehconstraints,horhchangeshin
hmanagerialhpreferenceshmayhresulthinhathleasthsomehpartshofhthehintendedhstrategyhremaininghun
realized.hOnhthehotherhhand,hgoodhmanagershwillhwanthtohtakehadvantagehofhahnewhopportunityh
presentedhbyhthehenvironment,hevenhifhithwashnothparthofhthehoriginalhsethofhintentions.
Difficulty:h2hMedium
Topic:h StrategyhandhthehStrategichManagementhProcess
LearninghObjective:h 01-
02hThehstrategichmanagementhprocesshandhitshthreehinterrelatedhandhprincipalhactivities.
Bloom's:h UnderstandhAACS
B:h AnalyticalhThinking
Accessibility:h KeyboardhNavigation
6) Thehfinalhrealizedhstrategyhofhahfirmhishahcombinationhofhdeliberatehandhtime-
testedhstrategieshonly.
Answer:h FALSE
Explanation:h Realizedhstrategyhishthathstrategyhofhahfirmhinhwhichhorganizationalhdecisionsharehd
eterminedhbyhbothhanalysishandhunforeseenhenvironmentalhdevelopments,hunanticipatedhresourceh
constraints,hand/orhchangeshinhmanagerialhpreferences.
Difficulty:h2hMedium
Topic:h StrategyhandhthehStrategichManagementhProcess
LearninghObjective:h 01-
02hThehstrategichmanagementhprocesshandhitshthreehinterrelatedhandhprincipalhactivities.
Bloom's:h Understand
AACSB:h KnowledgehApplicationhAc
cessibility:h KeyboardhNavigation
,7) Strategyhanalysishishthehstudyhofhonlyhthehbighpicturehexternalhenvironmentshofhthehfirm.
Answer:h FALSE
Explanation:h Strategyhanalysishishthehstudyhofhthehexternalhandhinternalhenvironmentshofhahfir
m,handhtheirhfithwithhorganizationalhvisionhandhgoals.
Difficulty:h2hMedium
Topic:h StrategyhandhthehStrategichManagementhProcess
LearninghObjective:h 01-
02hThehstrategichmanagementhprocesshandhitshthreehinterrelatedhandhprincipalhactivities.
Bloom's:h Understand
AACSB:h KnowledgehApplicationhAc
cessibility:h KeyboardhNavigation
8) Allhsuccessfulhfirmshcompetehandhoutperformhtheirhrivalshbyhdevelopinghbaseshforhcompetiti
vehadvantage,hwhichhcanhbehachievedhonlyhthroughhcosthleadership.
Answer:h FALSE
Explanation:h Successfulhfirmshstrivehtohdevelophbaseshforhcompetitivehadvantage,hwhichhcanhbe
hachievedhthroughhcosthleadershiphand/orhdifferentiationhashwellhashbyhfocusinghonhahnarrowhorh
industrywidehmarkethsegment.
Difficulty:h2hMedium
Topic:h StrategyhandhthehStrategichManagementhProcess
LearninghObjective:h 01-
02hThehstrategichmanagementhprocesshandhitshthreehinterrelatedhandhprincipalhactivities.
Bloom's:h UnderstandhAACS
B:h AnalyticalhThinking
Accessibility:h KeyboardhNavigation
9) Thehthreehprimaryhparticipantshinhcorporatehgovernancehare:h(1)hthehshareholders,h(2)ht
hehmanagementh(ledhbyhthehchiefhexecutivehofficer),handh(3)hthehemployees.
Answer:h FALSE
Explanation:h Thehprimaryhparticipantshare:h(1)hthehshareholders,h(2)hthehmanagementh(ledhbyhth
ehchiefhexecutivehofficer),handh(3)hthehboardhofhdirectors.
Difficulty:h2hMedium
Topic:h CorporatehGovernance
LearninghObjective:h 01-
03hThehstrategichrolehofhcorporatehgovernancehandhstakeholderhmanagement,hashwellhashhowh"sy
mbiosis"hcanhbehachievedhamonghanhorganization'shstakeholders.hBloom's:h Understand
AACSB:h KnowledgehApplicationhAc
cessibility:h KeyboardhNavigation
, 10) Decisionshbyhboardshofhdirectorsharehalwayshconsistenthwithhshareholderhinterests.
Answer:h FALSE
Explanation:h Thehboardhofhdirectorsh(BOD)harehthehelectedhrepresentativeshofhthehshareholders,
hchargedhwithhensuringhthaththehinterestshandhmotiveshofhmanagementharehalignedhwithhthosehof
hthehownersh(i.e.,hshareholders).hRecenthscandalshhavehresultedhinhcriticismhandhcynicismhthathth
ehBODhfulfillshthishcharge.
Difficulty:h2hMedium
Topic:h CorporatehGovernance
LearninghObjective:h 01-
03hThehstrategichrolehofhcorporatehgovernancehandhstakeholderhmanagement,hashwellhashhowh"sy
mbiosis"hcanhbehachievedhamonghanhorganization'shstakeholders.hBloom's:h Understand
AACSB:h AnalyticalhThinkinghAccess
ibility:h KeyboardhNavigation
11) Ensuringheffectivehcorporatehgovernancehrequireshanheffectivehandhengagedhboardh
ofhdirectors,huninvolvedhshareholders,handhproperhmanagerialhrewardshandhincentives.
Answer:h FALSE
Explanation:h Wehfocushonhthreehimportanthmechanismshtohensureheffectivehcorporatehgoverna
nce:h(1)hanheffectivehandhengagedhboardhofhdirectors,h(2)hshareholderhactivism,handh(3)hproperh
managerialhrewardshandhincentives.
Difficulty:h2hMedium
Topic:h CorporatehGovernance
LearninghObjective:h 01-
03hThehstrategichrolehofhcorporatehgovernancehandhstakeholderhmanagement,hashwellhashhowh"sy
mbiosis"hcanhbehachievedhamonghanhorganization'shstakeholders.hBloom's:h Understand
AACSB:h AnalyticalhThinkinghAccess
ibility:h KeyboardhNavigation
12) Socialhresponsibilityhishthehideahthathorganizationsharehonlyhaccountablehtohstockholders.
Answer:h FALSE
Explanation:h Socialhresponsibilityhishthehexpectationhthathbusinesseshorhindividualshwillhstriveh
tohimprovehthehoverallhwelfarehofhsociety.hFromhthehperspectivehofhahbusiness,hthishmeanshthat
hmanagershmusthtakehactivehstepshtohmakehsocietyhbetterhbyhvirtuehofhthehbusinesshbeinghinhex
istence.
Difficulty:h2hMedium
Topic:h CorporatehSocialhResponsibilityhandhSustainability
LearninghObjective:h 01-
04hThehimportancehofhsocialhresponsibility,hincludinghenvironmentalhsustainability,handhhowhithc
anhenhancehahcorporation'shinnovationhstrategy.
Bloom's:h Analyze
AACSB:h AnalyticalhThinkinghAccess
ibility:h KeyboardhNavigation
(Dess)
Chapterh1h StrategichManagement:hCreatinghCompetitivehAdvantages
1) Lands'hEnd'shfailurehunderhthehleadershiphofhMs.hFredericahMarchionnihwashsaidhtohbehahdir
ecthresulthofhthehqualityhofhherhleadership.hAccordinghtohthehtext,hthishwouldhbehanhexampleho
fhtheh"romantic"hperspectivehofhleadership.
Answer:h TRUE
Explanation:h Inhthehromantichviewhofhleadership,hthehimplicithassumptionhishthaththehleaderhish
thehkeyhforcehinhdetermininghanhorganization'shsuccesshorhlackhthereof.hUnderhMs.hMarchionni
'shleadership,hthehcompanyhreportedhah19.5-million-
dollarhlosshforh2016hafterhhavinghreportedhah73.8-million-
dollarhprofithforhthehprevioushyearhunderhitshprevioushCEO.
Difficulty:h2hMedium
Topic:h StrategyhandhthehStrategichManagementhProcess
LearninghObjective:h 01-
01hThehdefinitionhofhstrategichmanagementhandhitshfourhkeyhattributes.hBloom's:h Understand
AACSB:h AnalyticalhThinkinghAccess
ibility:h KeyboardhNavigation
2) Strategichmanagementhconsistshofhthehanalyses,hdecisions,handhactionshanhorganizati
onhundertakeshinhorderhtohcreatehandhsustainhcompetitivehadvantages.
Answer:h TRUE
Explanation:h Accordinghtohthehtextbook,hthishishthehdefinitionhofhstrategichmanagement.hDiffic
ulty:h1hEasy
Topic:h StrategyhandhthehStrategichManagementhProcess
LearninghObjective:h 01-
01hThehdefinitionhofhstrategichmanagementhandhitshfourhkeyhattributes.hBloom's:h Remember
AACSB:h KnowledgehApplicationhAc
cessibility:h KeyboardhNavigation
3) Managementhinnovationshsuchhashtotalhquality,hjust-in-
time,hbenchmarking,hbusinesshprocesshreengineering,handhoutsourcingharehimportanthbuthnothen
oughhforhbuildinghsustainablehcompetitivehadvantage.
Answer:h TRUE
Explanation:h Sustainablehcompetitivehadvantagehcannothbehachievedhthroughhoperationalheffec
tivenesshalone.hPopularhmanagementhinnovationshofhthehlasthtwohdecadeshlikehtotalhquality,hjus
t-in-
time,hbenchmarking,hbusinesshprocesshreengineering,handhoutsourcingharehconcernedhwithhoper
ationalheffectiveness.
Difficulty:h2hMedium
Topic:h StrategyhandhthehStrategichManagementhProcess
LearninghObjective:h 01-
01hThehdefinitionhofhstrategichmanagementhandhitshfourhkeyhattributes.hBloom's:h Understand
AACSB:h AnalyticalhThinkinghAccess
ibility:h KeyboardhNavigation
4) Trade-offhdecisionshbetweenheffectivenesshandhefficiencyharehimportanthinhthehpracticehof
,strategichmanagement.
Answer:h TRUE
Explanation:h Thehfourthhattributehofhstrategichmanagementhishthathithinvolveshthehrecognition
hofhtrade-
offshbetweenheffectivenesshandhefficiency.hSomehauthorshhavehreferredhtohthishashthehdifferen
cehbetweenhdoinghthehrighththingh(effectiveness)handhdoinghthingshrighth(efficiency).
Difficulty:h2hMedium
Topic:h StrategyhandhthehStrategichManagementhProcess
LearninghObjective:h 01-
01hThehdefinitionhofhstrategichmanagementhandhitshfourhkeyhattributes.hBloom's:h Understand
AACSB:h AnalyticalhThinkinghAccess
ibility:h KeyboardhNavigation
5) AccordinghtohHenryhMintzberg,hahmanagementhscholar,hmosthfirmshdohnothrealizehtheirhorigi
nalhintendedhstrategy.
Answer:h TRUE
Explanation:h HenryhMintzberghstateshthaththehintendedhstrategyhrarelyhsurviveshinhitshoriginalhf
orm.hUnforeseenhenvironmentalhdevelopments,hunanticipatedhresourcehconstraints,horhchangeshin
hmanagerialhpreferenceshmayhresulthinhathleasthsomehpartshofhthehintendedhstrategyhremaininghun
realized.hOnhthehotherhhand,hgoodhmanagershwillhwanthtohtakehadvantagehofhahnewhopportunityh
presentedhbyhthehenvironment,hevenhifhithwashnothparthofhthehoriginalhsethofhintentions.
Difficulty:h2hMedium
Topic:h StrategyhandhthehStrategichManagementhProcess
LearninghObjective:h 01-
02hThehstrategichmanagementhprocesshandhitshthreehinterrelatedhandhprincipalhactivities.
Bloom's:h UnderstandhAACS
B:h AnalyticalhThinking
Accessibility:h KeyboardhNavigation
6) Thehfinalhrealizedhstrategyhofhahfirmhishahcombinationhofhdeliberatehandhtime-
testedhstrategieshonly.
Answer:h FALSE
Explanation:h Realizedhstrategyhishthathstrategyhofhahfirmhinhwhichhorganizationalhdecisionsharehd
eterminedhbyhbothhanalysishandhunforeseenhenvironmentalhdevelopments,hunanticipatedhresourceh
constraints,hand/orhchangeshinhmanagerialhpreferences.
Difficulty:h2hMedium
Topic:h StrategyhandhthehStrategichManagementhProcess
LearninghObjective:h 01-
02hThehstrategichmanagementhprocesshandhitshthreehinterrelatedhandhprincipalhactivities.
Bloom's:h Understand
AACSB:h KnowledgehApplicationhAc
cessibility:h KeyboardhNavigation
,7) Strategyhanalysishishthehstudyhofhonlyhthehbighpicturehexternalhenvironmentshofhthehfirm.
Answer:h FALSE
Explanation:h Strategyhanalysishishthehstudyhofhthehexternalhandhinternalhenvironmentshofhahfir
m,handhtheirhfithwithhorganizationalhvisionhandhgoals.
Difficulty:h2hMedium
Topic:h StrategyhandhthehStrategichManagementhProcess
LearninghObjective:h 01-
02hThehstrategichmanagementhprocesshandhitshthreehinterrelatedhandhprincipalhactivities.
Bloom's:h Understand
AACSB:h KnowledgehApplicationhAc
cessibility:h KeyboardhNavigation
8) Allhsuccessfulhfirmshcompetehandhoutperformhtheirhrivalshbyhdevelopinghbaseshforhcompetiti
vehadvantage,hwhichhcanhbehachievedhonlyhthroughhcosthleadership.
Answer:h FALSE
Explanation:h Successfulhfirmshstrivehtohdevelophbaseshforhcompetitivehadvantage,hwhichhcanhbe
hachievedhthroughhcosthleadershiphand/orhdifferentiationhashwellhashbyhfocusinghonhahnarrowhorh
industrywidehmarkethsegment.
Difficulty:h2hMedium
Topic:h StrategyhandhthehStrategichManagementhProcess
LearninghObjective:h 01-
02hThehstrategichmanagementhprocesshandhitshthreehinterrelatedhandhprincipalhactivities.
Bloom's:h UnderstandhAACS
B:h AnalyticalhThinking
Accessibility:h KeyboardhNavigation
9) Thehthreehprimaryhparticipantshinhcorporatehgovernancehare:h(1)hthehshareholders,h(2)ht
hehmanagementh(ledhbyhthehchiefhexecutivehofficer),handh(3)hthehemployees.
Answer:h FALSE
Explanation:h Thehprimaryhparticipantshare:h(1)hthehshareholders,h(2)hthehmanagementh(ledhbyhth
ehchiefhexecutivehofficer),handh(3)hthehboardhofhdirectors.
Difficulty:h2hMedium
Topic:h CorporatehGovernance
LearninghObjective:h 01-
03hThehstrategichrolehofhcorporatehgovernancehandhstakeholderhmanagement,hashwellhashhowh"sy
mbiosis"hcanhbehachievedhamonghanhorganization'shstakeholders.hBloom's:h Understand
AACSB:h KnowledgehApplicationhAc
cessibility:h KeyboardhNavigation
, 10) Decisionshbyhboardshofhdirectorsharehalwayshconsistenthwithhshareholderhinterests.
Answer:h FALSE
Explanation:h Thehboardhofhdirectorsh(BOD)harehthehelectedhrepresentativeshofhthehshareholders,
hchargedhwithhensuringhthaththehinterestshandhmotiveshofhmanagementharehalignedhwithhthosehof
hthehownersh(i.e.,hshareholders).hRecenthscandalshhavehresultedhinhcriticismhandhcynicismhthathth
ehBODhfulfillshthishcharge.
Difficulty:h2hMedium
Topic:h CorporatehGovernance
LearninghObjective:h 01-
03hThehstrategichrolehofhcorporatehgovernancehandhstakeholderhmanagement,hashwellhashhowh"sy
mbiosis"hcanhbehachievedhamonghanhorganization'shstakeholders.hBloom's:h Understand
AACSB:h AnalyticalhThinkinghAccess
ibility:h KeyboardhNavigation
11) Ensuringheffectivehcorporatehgovernancehrequireshanheffectivehandhengagedhboardh
ofhdirectors,huninvolvedhshareholders,handhproperhmanagerialhrewardshandhincentives.
Answer:h FALSE
Explanation:h Wehfocushonhthreehimportanthmechanismshtohensureheffectivehcorporatehgoverna
nce:h(1)hanheffectivehandhengagedhboardhofhdirectors,h(2)hshareholderhactivism,handh(3)hproperh
managerialhrewardshandhincentives.
Difficulty:h2hMedium
Topic:h CorporatehGovernance
LearninghObjective:h 01-
03hThehstrategichrolehofhcorporatehgovernancehandhstakeholderhmanagement,hashwellhashhowh"sy
mbiosis"hcanhbehachievedhamonghanhorganization'shstakeholders.hBloom's:h Understand
AACSB:h AnalyticalhThinkinghAccess
ibility:h KeyboardhNavigation
12) Socialhresponsibilityhishthehideahthathorganizationsharehonlyhaccountablehtohstockholders.
Answer:h FALSE
Explanation:h Socialhresponsibilityhishthehexpectationhthathbusinesseshorhindividualshwillhstriveh
tohimprovehthehoverallhwelfarehofhsociety.hFromhthehperspectivehofhahbusiness,hthishmeanshthat
hmanagershmusthtakehactivehstepshtohmakehsocietyhbetterhbyhvirtuehofhthehbusinesshbeinghinhex
istence.
Difficulty:h2hMedium
Topic:h CorporatehSocialhResponsibilityhandhSustainability
LearninghObjective:h 01-
04hThehimportancehofhsocialhresponsibility,hincludinghenvironmentalhsustainability,handhhowhithc
anhenhancehahcorporation'shinnovationhstrategy.
Bloom's:h Analyze
AACSB:h AnalyticalhThinkinghAccess
ibility:h KeyboardhNavigation
