Strategic Management: Text and Cases, 9e (Dess)
Chapter 1 Strategic Management: Creating Competitive Advantages
1) Lands' End's failure under the leadership of Ms. Frederica Marchionni was said to
be a direct result of the quality of her leadership. According to the text, this would be
an example of the "romantic" perspective of leadership.
Answer: TRUE
Explanation: In the romantic view of leadership, the implicit assumption is that the leader is
the key force in determining an organization's success or lack thereof. Under Ms.
Marchionni's leadership, the company reported a 19.5-million-dollar loss for 2016 after
having reported a 73.8-million-dollar profit for the previous year under its previous CEO.
Difficulty: 2 Medium
Topic: Strategy and the Strategic Management Process
Learning Objective: 01-01 The definition of strategic management and its four key
attributes. Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2) Strategic management consists of the analyses, decisions, and actions an
organization undertakes in order to create and sustain competitive advantages.
Answer: TRUE
Explanation: According to the textbook, this is the definition of strategic
management. Difficulty: 1 Easy
Topic: Strategy and the Strategic Management Process
Learning Objective: 01-01 The definition of strategic management and its four key
attributes. Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
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.
Answer: TRUE
Explanation: Sustainable competitive advantage cannot be achieved through
operational effectiveness alone. Popular management innovations of the last two
decades like total quality, just-in-time, benchmarking, business process reengineering,
and outsourcing are concerned with operational effectiveness.
Difficulty: 2 Medium
Topic: Strategy and the Strategic Management Process
Learning Objective: 01-01 The definition of strategic management and its four key
attributes. Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
4) zTrade-off zdecisions zbetween zeffectiveness zand zefficiency zare zimportant zin zthe
zpractice zof
,strategic zmanagement.
Answer: zTRUE
Explanation: zThe zfourth zattribute zof zstrategic zmanagement zis zthat zit zinvolves zthe
zrecognition zof ztrade-offs zbetween zeffectiveness zand zefficiency. zSome zauthors
zhave zreferred zto zthis zas zthe zdifference zbetween zdoing zthe zright zthing
z(effectiveness) zand zdoing zthings zright z(efficiency). zDifficulty: z2 zMedium
Topic: zStrategy zand zthe zStrategic zManagement zProcess
Learning zObjective: z01-01 zThe zdefinition zof zstrategic zmanagement zand zits zfour
zkey zattributes. zBloom's: zUnderstand
AACSB: zAnalytical zThinking
zAccessibility: zKeyboard
zNavigation
5) zAccording zto zHenry zMintzberg, za zmanagement zscholar, zmost zfirms zdo znot
zrealize ztheir zoriginal zintended zstrategy.
Answer: zTRUE
Explanation: zHenry zMintzberg zstates zthat zthe zintended zstrategy zrarely zsurvives zin zits
zoriginal zform. zUnforeseen zenvironmental zdevelopments, zunanticipated zresource
zconstraints, zor zchanges zin zmanagerial zpreferences zmay zresult zin zat zleast zsome zparts zof
zthe zintended zstrategy zremaining zunrealized. zOn zthe zother zhand, zgood zmanagers zwill
zwant zto ztake zadvantage zof za znew zopportunity zpresented zby zthe zenvironment, zeven zif zit
zwas znot zpart zof zthe zoriginal zset zof zintentions.
Difficulty: z2 zMedium
Topic: zStrategy zand zthe zStrategic zManagement zProcess
Learning zObjective: z01-02 zThe zstrategic zmanagement zprocess zand zits zthree
zinterrelated zand zprincipal zactivities.
Bloom's: zUnderstand
zAACSB: zAnalytical
zThinking
Accessibility: zKeyboard zNavigation
6) zThe zfinal zrealized zstrategy zof za zfirm zis za zcombination zof zdeliberate zand ztime-
tested zstrategies zonly.
Answer: zFALSE
Explanation: zRealized zstrategy zis zthat zstrategy zof za zfirm zin zwhich zorganizational
zdecisions zare zdetermined zby zboth zanalysis zand zunforeseen zenvironmental
zdevelopments, zunanticipated zresource zconstraints, zand/or zchanges zin zmanagerial
zpreferences.
Difficulty: z2 zMedium
Topic: zStrategy zand zthe zStrategic zManagement zProcess
Learning zObjective: z01-02 zThe zstrategic zmanagement zprocess zand zits zthree
zinterrelated zand zprincipal zactivities.
Bloom's: zUnderstand
AACSB: zKnowledge zApplication
Accessibility: zKeyboard zNavigation
,7) zStrategy zanalysis zis zthe zstudy zof zonly zthe zbig zpicture zexternal zenvironments zof
zthe zfirm.
Answer: zFALSE
Explanation: zStrategy zanalysis zis zthe zstudy zof zthe zexternal zand zinternal
zenvironments zof za zfirm, zand ztheir zfit zwith zorganizational zvision zand zgoals.
Difficulty: z2 zMedium
Topic: zStrategy zand zthe zStrategic zManagement zProcess
Learning zObjective: z01-02 zThe zstrategic zmanagement zprocess zand zits zthree
zinterrelated zand zprincipal zactivities.
Bloom's: zUnderstand
AACSB: zKnowledge zApplication
Accessibility: zKeyboard zNavigation
8) zAll zsuccessful zfirms zcompete zand zoutperform ztheir zrivals zby zdeveloping zbases
zfor zcompetitive zadvantage, zwhich zcan zbe zachieved zonly zthrough zcost zleadership.
Answer: zFALSE
Explanation: zSuccessful zfirms zstrive zto zdevelop zbases zfor zcompetitive zadvantage,
zwhich zcan zbe zachieved zthrough zcost zleadership zand/or zdifferentiation zas zwell zas
zby zfocusing zon za znarrow zor zindustrywide zmarket zsegment.
Difficulty: z2 zMedium
Topic: zStrategy zand zthe zStrategic zManagement zProcess
Learning zObjective: z01-02 zThe zstrategic zmanagement zprocess zand zits zthree
zinterrelated zand zprincipal zactivities.
Bloom's: zUnderstand
zAACSB: zAnalytical
zThinking
Accessibility: zKeyboard zNavigation
9) zThe zthree zprimary zparticipants zin zcorporate zgovernance zare: z(1) zthe
zshareholders, z(2) zthe zmanagement z(led zby zthe zchief zexecutive zofficer), zand z(3)
zthe zemployees.
Answer: zFALSE
Explanation: zThe zprimary zparticipants zare: z(1) zthe zshareholders, z(2) zthe
zmanagement z(led zby zthe zchief zexecutive zofficer), zand z(3) zthe zboard zof zdirectors.
Difficulty: z2 zMedium
Topic: zCorporate zGovernance
Learning zObjective: z01-03 zThe zstrategic zrole zof zcorporate zgovernance zand
zstakeholder zmanagement, zas zwell zas zhow z"symbiosis" zcan zbe zachieved zamong
zan zorganization's zstakeholders. zBloom's: zUnderstand
AACSB: zKnowledge zApplication
Accessibility: zKeyboard zNavigation
, 10) zDecisions zby zboards zof zdirectors zare zalways zconsistent zwith zshareholder
zinterests.
Answer: zFALSE
Explanation: zThe zboard zof zdirectors z(BOD) zare zthe zelected zrepresentatives zof zthe
zshareholders, zcharged zwith zensuring zthat zthe zinterests zand zmotives zof
zmanagement zare zaligned zwith zthose zof zthe zowners z(i.e., zshareholders). zRecent
zscandals zhave zresulted zin zcriticism zand zcynicism zthat zthe zBOD zfulfills zthis zcharge.
Difficulty: z2 zMedium
Topic: zCorporate zGovernance
Learning zObjective: z01-03 zThe zstrategic zrole zof zcorporate zgovernance zand
zstakeholder zmanagement, zas zwell zas zhow z"symbiosis" zcan zbe zachieved zamong
zan zorganization's zstakeholders. zBloom's: zUnderstand
AACSB: zAnalytical zThinking
zAccessibility: zKeyboard
zNavigation
11) zEnsuring zeffective zcorporate zgovernance zrequires zan zeffective zand zengaged
zboard zof zdirectors, zuninvolved zshareholders, zand zproper zmanagerial zrewards
zand zincentives.
Answer: zFALSE
Explanation: zWe zfocus zon zthree zimportant zmechanisms zto zensure zeffective
zcorporate zgovernance: z(1) zan zeffective zand zengaged zboard zof zdirectors, z(2)
zshareholder zactivism, zand z(3) zproper zmanagerial zrewards zand zincentives.
Difficulty: z2 zMedium
Topic: zCorporate zGovernance
Learning zObjective: z01-03 zThe zstrategic zrole zof zcorporate zgovernance zand
zstakeholder zmanagement, zas zwell zas zhow z"symbiosis" zcan zbe zachieved zamong
zan zorganization's zstakeholders. zBloom's: zUnderstand
AACSB: zAnalytical zThinking
zAccessibility: zKeyboard
zNavigation
12) zSocial zresponsibility zis zthe zidea zthat zorganizations zare zonly zaccountable zto
zstockholders.
Answer: zFALSE
Explanation: zSocial zresponsibility zis zthe zexpectation zthat zbusinesses zor zindividuals
zwill zstrive zto zimprove zthe zoverall zwelfare zof zsociety. zFrom zthe zperspective zof za
zbusiness, zthis zmeans zthat zmanagers zmust ztake zactive zsteps zto zmake zsociety
zbetter zby zvirtue zof zthe zbusiness zbeing zin zexistence.
Difficulty: z2 zMedium
Topic: zCorporate zSocial zResponsibility zand zSustainability
Learning zObjective: z01-04 zThe zimportance zof zsocial zresponsibility, zincluding
zenvironmental zsustainability, zand zhow zit zcan zenhance za zcorporation's zinnovation
zstrategy.
Bloom's: zAnalyze
AACSB: zAnalytical zThinking
zAccessibility: zKeyboard
Chapter 1 Strategic Management: Creating Competitive Advantages
1) Lands' End's failure under the leadership of Ms. Frederica Marchionni was said to
be a direct result of the quality of her leadership. According to the text, this would be
an example of the "romantic" perspective of leadership.
Answer: TRUE
Explanation: In the romantic view of leadership, the implicit assumption is that the leader is
the key force in determining an organization's success or lack thereof. Under Ms.
Marchionni's leadership, the company reported a 19.5-million-dollar loss for 2016 after
having reported a 73.8-million-dollar profit for the previous year under its previous CEO.
Difficulty: 2 Medium
Topic: Strategy and the Strategic Management Process
Learning Objective: 01-01 The definition of strategic management and its four key
attributes. Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2) Strategic management consists of the analyses, decisions, and actions an
organization undertakes in order to create and sustain competitive advantages.
Answer: TRUE
Explanation: According to the textbook, this is the definition of strategic
management. Difficulty: 1 Easy
Topic: Strategy and the Strategic Management Process
Learning Objective: 01-01 The definition of strategic management and its four key
attributes. Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
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.
Answer: TRUE
Explanation: Sustainable competitive advantage cannot be achieved through
operational effectiveness alone. Popular management innovations of the last two
decades like total quality, just-in-time, benchmarking, business process reengineering,
and outsourcing are concerned with operational effectiveness.
Difficulty: 2 Medium
Topic: Strategy and the Strategic Management Process
Learning Objective: 01-01 The definition of strategic management and its four key
attributes. Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
4) zTrade-off zdecisions zbetween zeffectiveness zand zefficiency zare zimportant zin zthe
zpractice zof
,strategic zmanagement.
Answer: zTRUE
Explanation: zThe zfourth zattribute zof zstrategic zmanagement zis zthat zit zinvolves zthe
zrecognition zof ztrade-offs zbetween zeffectiveness zand zefficiency. zSome zauthors
zhave zreferred zto zthis zas zthe zdifference zbetween zdoing zthe zright zthing
z(effectiveness) zand zdoing zthings zright z(efficiency). zDifficulty: z2 zMedium
Topic: zStrategy zand zthe zStrategic zManagement zProcess
Learning zObjective: z01-01 zThe zdefinition zof zstrategic zmanagement zand zits zfour
zkey zattributes. zBloom's: zUnderstand
AACSB: zAnalytical zThinking
zAccessibility: zKeyboard
zNavigation
5) zAccording zto zHenry zMintzberg, za zmanagement zscholar, zmost zfirms zdo znot
zrealize ztheir zoriginal zintended zstrategy.
Answer: zTRUE
Explanation: zHenry zMintzberg zstates zthat zthe zintended zstrategy zrarely zsurvives zin zits
zoriginal zform. zUnforeseen zenvironmental zdevelopments, zunanticipated zresource
zconstraints, zor zchanges zin zmanagerial zpreferences zmay zresult zin zat zleast zsome zparts zof
zthe zintended zstrategy zremaining zunrealized. zOn zthe zother zhand, zgood zmanagers zwill
zwant zto ztake zadvantage zof za znew zopportunity zpresented zby zthe zenvironment, zeven zif zit
zwas znot zpart zof zthe zoriginal zset zof zintentions.
Difficulty: z2 zMedium
Topic: zStrategy zand zthe zStrategic zManagement zProcess
Learning zObjective: z01-02 zThe zstrategic zmanagement zprocess zand zits zthree
zinterrelated zand zprincipal zactivities.
Bloom's: zUnderstand
zAACSB: zAnalytical
zThinking
Accessibility: zKeyboard zNavigation
6) zThe zfinal zrealized zstrategy zof za zfirm zis za zcombination zof zdeliberate zand ztime-
tested zstrategies zonly.
Answer: zFALSE
Explanation: zRealized zstrategy zis zthat zstrategy zof za zfirm zin zwhich zorganizational
zdecisions zare zdetermined zby zboth zanalysis zand zunforeseen zenvironmental
zdevelopments, zunanticipated zresource zconstraints, zand/or zchanges zin zmanagerial
zpreferences.
Difficulty: z2 zMedium
Topic: zStrategy zand zthe zStrategic zManagement zProcess
Learning zObjective: z01-02 zThe zstrategic zmanagement zprocess zand zits zthree
zinterrelated zand zprincipal zactivities.
Bloom's: zUnderstand
AACSB: zKnowledge zApplication
Accessibility: zKeyboard zNavigation
,7) zStrategy zanalysis zis zthe zstudy zof zonly zthe zbig zpicture zexternal zenvironments zof
zthe zfirm.
Answer: zFALSE
Explanation: zStrategy zanalysis zis zthe zstudy zof zthe zexternal zand zinternal
zenvironments zof za zfirm, zand ztheir zfit zwith zorganizational zvision zand zgoals.
Difficulty: z2 zMedium
Topic: zStrategy zand zthe zStrategic zManagement zProcess
Learning zObjective: z01-02 zThe zstrategic zmanagement zprocess zand zits zthree
zinterrelated zand zprincipal zactivities.
Bloom's: zUnderstand
AACSB: zKnowledge zApplication
Accessibility: zKeyboard zNavigation
8) zAll zsuccessful zfirms zcompete zand zoutperform ztheir zrivals zby zdeveloping zbases
zfor zcompetitive zadvantage, zwhich zcan zbe zachieved zonly zthrough zcost zleadership.
Answer: zFALSE
Explanation: zSuccessful zfirms zstrive zto zdevelop zbases zfor zcompetitive zadvantage,
zwhich zcan zbe zachieved zthrough zcost zleadership zand/or zdifferentiation zas zwell zas
zby zfocusing zon za znarrow zor zindustrywide zmarket zsegment.
Difficulty: z2 zMedium
Topic: zStrategy zand zthe zStrategic zManagement zProcess
Learning zObjective: z01-02 zThe zstrategic zmanagement zprocess zand zits zthree
zinterrelated zand zprincipal zactivities.
Bloom's: zUnderstand
zAACSB: zAnalytical
zThinking
Accessibility: zKeyboard zNavigation
9) zThe zthree zprimary zparticipants zin zcorporate zgovernance zare: z(1) zthe
zshareholders, z(2) zthe zmanagement z(led zby zthe zchief zexecutive zofficer), zand z(3)
zthe zemployees.
Answer: zFALSE
Explanation: zThe zprimary zparticipants zare: z(1) zthe zshareholders, z(2) zthe
zmanagement z(led zby zthe zchief zexecutive zofficer), zand z(3) zthe zboard zof zdirectors.
Difficulty: z2 zMedium
Topic: zCorporate zGovernance
Learning zObjective: z01-03 zThe zstrategic zrole zof zcorporate zgovernance zand
zstakeholder zmanagement, zas zwell zas zhow z"symbiosis" zcan zbe zachieved zamong
zan zorganization's zstakeholders. zBloom's: zUnderstand
AACSB: zKnowledge zApplication
Accessibility: zKeyboard zNavigation
, 10) zDecisions zby zboards zof zdirectors zare zalways zconsistent zwith zshareholder
zinterests.
Answer: zFALSE
Explanation: zThe zboard zof zdirectors z(BOD) zare zthe zelected zrepresentatives zof zthe
zshareholders, zcharged zwith zensuring zthat zthe zinterests zand zmotives zof
zmanagement zare zaligned zwith zthose zof zthe zowners z(i.e., zshareholders). zRecent
zscandals zhave zresulted zin zcriticism zand zcynicism zthat zthe zBOD zfulfills zthis zcharge.
Difficulty: z2 zMedium
Topic: zCorporate zGovernance
Learning zObjective: z01-03 zThe zstrategic zrole zof zcorporate zgovernance zand
zstakeholder zmanagement, zas zwell zas zhow z"symbiosis" zcan zbe zachieved zamong
zan zorganization's zstakeholders. zBloom's: zUnderstand
AACSB: zAnalytical zThinking
zAccessibility: zKeyboard
zNavigation
11) zEnsuring zeffective zcorporate zgovernance zrequires zan zeffective zand zengaged
zboard zof zdirectors, zuninvolved zshareholders, zand zproper zmanagerial zrewards
zand zincentives.
Answer: zFALSE
Explanation: zWe zfocus zon zthree zimportant zmechanisms zto zensure zeffective
zcorporate zgovernance: z(1) zan zeffective zand zengaged zboard zof zdirectors, z(2)
zshareholder zactivism, zand z(3) zproper zmanagerial zrewards zand zincentives.
Difficulty: z2 zMedium
Topic: zCorporate zGovernance
Learning zObjective: z01-03 zThe zstrategic zrole zof zcorporate zgovernance zand
zstakeholder zmanagement, zas zwell zas zhow z"symbiosis" zcan zbe zachieved zamong
zan zorganization's zstakeholders. zBloom's: zUnderstand
AACSB: zAnalytical zThinking
zAccessibility: zKeyboard
zNavigation
12) zSocial zresponsibility zis zthe zidea zthat zorganizations zare zonly zaccountable zto
zstockholders.
Answer: zFALSE
Explanation: zSocial zresponsibility zis zthe zexpectation zthat zbusinesses zor zindividuals
zwill zstrive zto zimprove zthe zoverall zwelfare zof zsociety. zFrom zthe zperspective zof za
zbusiness, zthis zmeans zthat zmanagers zmust ztake zactive zsteps zto zmake zsociety
zbetter zby zvirtue zof zthe zbusiness zbeing zin zexistence.
Difficulty: z2 zMedium
Topic: zCorporate zSocial zResponsibility zand zSustainability
Learning zObjective: z01-04 zThe zimportance zof zsocial zresponsibility, zincluding
zenvironmental zsustainability, zand zhow zit zcan zenhance za zcorporation's zinnovation
zstrategy.
Bloom's: zAnalyze
AACSB: zAnalytical zThinking
zAccessibility: zKeyboard
