Chapter 1
The Strategic Management Process
TRUE/FALSE QUESTIONS
1. Strategic management includes a process by which organizations analyze and
learn from their internal and external environments.
Answer: T
2. External stakeholders are groups or individuals outside the organization that
have a particular interest in and a major impact on the organization.
Answer: T
3. Strategic management begins with the creation and execution of strategies,
followed by the definition of goals that can be met by following these strategies.
Answer: F
4. Enactment is the process of influencing the environment through strategic
actions.
Answer: T
5. Adaptation is the process associated with attempting to control the environment
to make it less hostile and more conducive to organizational success.
Answer: F
,6. Environmental determinism is the view that good management is associated
with determining which strategy will best fit the environment and then carrying
it out.
Answer: T
7. Unless an internal capability or resource is costly or difficult to imitate by
competitors, the capability or resource is unlikely to lead to a sustainable
competitive advantage.
Answer: T
8. Stakeholder analysis includes identifying and prioritizing key stakeholders.
Answer: T
9. Strategic thinking deals with the rigid and systematic parts of the strategic
management process.
Answer: F
MULTIPLE CHOICE QUESTIONS
10. Strategic management includes the following:
A. Establishment of strategic direction
B. Implementation of strategies
C. Analysis of the internal environment
D. Strategic restructuring
E. All of these are true
Answer: E
,11. Domain direction and navigation pertain to which aspect of the strategic
management process?
A. Corporate strategy formulation
B. Human resources strategy formulation
C. Strategy implementation
D. Business strategy formulation
E. Functional strategy formulation
Answer: D
12. Which of the following is not a stakeholder of an organization?
A. Employees
B. Stockholders
C. Customers
D. Competitors
E. These are all stakeholders. None of the above answers is correct.
Answer: E
13. Which of the following is not a major activity of the strategic management
process?
A. Analysis of the internal and external environments
B. Establishment of strategic direction
C. Formulation of strategies
D. Production scheduling
E. Implementation of strategies
, Answer: D
14. An organization’s environment typically:
A. Consists only of employees and managers
B. Includes all groups and individuals that are significantly influenced by or
have a major impact on the organization
C. Includes only stockholders
D. Consists only of competitors, suppliers, and customers
E. Reflects only owners, customers, and competitors
Answer: B
15. Which of the following is a part of an organization’s broad environment?
A. Society
B. Employees
C. Managers
D. Stockholders
E. Board of directors
Answer: A
16. All of the following are members of an organization’s task environment except:
A. Activist groups
B. Managers
C. Suppliers
D. Financial intermediaries
E. Local communities
The Strategic Management Process
TRUE/FALSE QUESTIONS
1. Strategic management includes a process by which organizations analyze and
learn from their internal and external environments.
Answer: T
2. External stakeholders are groups or individuals outside the organization that
have a particular interest in and a major impact on the organization.
Answer: T
3. Strategic management begins with the creation and execution of strategies,
followed by the definition of goals that can be met by following these strategies.
Answer: F
4. Enactment is the process of influencing the environment through strategic
actions.
Answer: T
5. Adaptation is the process associated with attempting to control the environment
to make it less hostile and more conducive to organizational success.
Answer: F
,6. Environmental determinism is the view that good management is associated
with determining which strategy will best fit the environment and then carrying
it out.
Answer: T
7. Unless an internal capability or resource is costly or difficult to imitate by
competitors, the capability or resource is unlikely to lead to a sustainable
competitive advantage.
Answer: T
8. Stakeholder analysis includes identifying and prioritizing key stakeholders.
Answer: T
9. Strategic thinking deals with the rigid and systematic parts of the strategic
management process.
Answer: F
MULTIPLE CHOICE QUESTIONS
10. Strategic management includes the following:
A. Establishment of strategic direction
B. Implementation of strategies
C. Analysis of the internal environment
D. Strategic restructuring
E. All of these are true
Answer: E
,11. Domain direction and navigation pertain to which aspect of the strategic
management process?
A. Corporate strategy formulation
B. Human resources strategy formulation
C. Strategy implementation
D. Business strategy formulation
E. Functional strategy formulation
Answer: D
12. Which of the following is not a stakeholder of an organization?
A. Employees
B. Stockholders
C. Customers
D. Competitors
E. These are all stakeholders. None of the above answers is correct.
Answer: E
13. Which of the following is not a major activity of the strategic management
process?
A. Analysis of the internal and external environments
B. Establishment of strategic direction
C. Formulation of strategies
D. Production scheduling
E. Implementation of strategies
, Answer: D
14. An organization’s environment typically:
A. Consists only of employees and managers
B. Includes all groups and individuals that are significantly influenced by or
have a major impact on the organization
C. Includes only stockholders
D. Consists only of competitors, suppliers, and customers
E. Reflects only owners, customers, and competitors
Answer: B
15. Which of the following is a part of an organization’s broad environment?
A. Society
B. Employees
C. Managers
D. Stockholders
E. Board of directors
Answer: A
16. All of the following are members of an organization’s task environment except:
A. Activist groups
B. Managers
C. Suppliers
D. Financial intermediaries
E. Local communities
