Strategic Management Exam 1 (Chapters
t t t t
1-3) with correct answers
t t t t
42) tA tsequential tset tof tanalyses tand tchoices tthat tcan tincrease tthe tlikelihood tthat ta tfirm twill tchoose ta
tstrategy tthat tgenerates tcompetitive tadvantages tis tthe
A) torganizational tchange tprocess.
B) tstrategic tmanagement tprocess.
C) tmission tstatement tprocess.
D) tgoal tsetting tprocess. t- tCorrect t tAnswer t- tAnswer: tB
43) tA tfirm's t________ tis tits tlong-term tpurpose tthat tdefines tboth twhat tit taspires tto tbe tin tthe tlong trun
tand twhat tit twants tto tavoid tin tthe tmeantime.
A) tmission
B) tstrategy
C) tobjective
D) tgoal t- tCorrect t tAnswer t- tAnswer: tA
44) tThe tstrategic tmanagement tprocess tbegins twhen ta tfirm
A) tdetermines tits tobjectives.
B) tdefines tits tmission.
C) tmakes ta tstrategic tchoice.
D) timplements tits tstrategy. t- tCorrect t tAnswer t- tAnswer: tB
45) tFirms twhose tmission tis tcentral tto tall tthey tdo tare tknown tas t________ tfirms.
,A) tmissionary
B) temergent
C) tparity
D) tvisionary t- tCorrect t tAnswer t- tAnswer: tD
46) tFrom t1926 tto t1995, tvisionary tfirms tearned t________ treturns tcompared tto tfirms tthat twere tnot
tvisionary tfirms.
A) tsubstantially tlower
B) tsubstantially thigher
C) tmarginally tlower
D) tequivalent t- tCorrect t tAnswer t- tAnswer: tB
47) tThe tmission tstatements tof tvisionary tfirms
A) tsuggest tthat tprofit tmaximizing, twhile tan timportant tcorporate tobjective, tis tnot ttheir tprimary treason
tfor texistence.
B) tsuggest tthat tprofit tmaximizing tis tneither tan timportant tcorporate tobjective tnor ttheir tprimary treason
tfor texistence.
C) tsuggest tthat tprofit tmaximizing tis ttheir tprimary treason tfor texistence.
D) tsuggest tthat tvalue tmaximizing tis ttheir tprimary treason tof texistence. t- tCorrect t tAnswer t- tAnswer: tA
48) tWhich tof tthe tfollowing tstatements tregarding tfirm tmission tis taccurate?
A) tWhile tsome tfirms thave tused ttheir tmissions tto tdevelop tstrategies tthat tcreate tsignificant tcompetitive
tadvantages, tfirm tmissions tcan thurt ta tfirm's tperformance tas twell.
B) tVirtually tall tfirms thave tused tmissions tto tdevelop tstrategies tthat tcreate tsignificant tcompetitive
tadvantages, twhile tvery tfew tfirms thave tused tmissions tthat tcan thurt ttheir tperformance.
C) tIt tis tvery trare tfor tfirms tto tbe table tto tuse ttheir tmissions tto tdevelop tstrategies tthat tcreate tsignificant
tcompetitive tadvantages, tand tmost tfirm tmissions tactually thurt ttheir tperformance.
,D) tMissions ttend tto thave tvery tlittle timpact ton ta tfirm's tability tto tcreate tsignificant tcompetitive
tadvantages. t- tCorrect t tAnswer t- tAnswer: tA
49) t________ tare tspecific tmeasurable ttargets ta tfirm tcan tuse tto tevaluate tthe textent tto twhich tit tis
trealizing tits tmission.
A) tStrategies
B) tMissions
C) tCompetitive tadvantages
D) tObjectives t- tCorrect t tAnswer t- tAnswer: tD
50) tHigh tquality tobjectives tare tthose tthat tare
A) ttightly tconnected tto telements tof ta tfirm's tmission tand tare trelatively teasy tto tmeasure tand ttrack tover
ttime.
B) tdifficult tto tmeasure tand ttrack tover ttime.
C) tnon-existent.
D) tnot tquantitative. t- tCorrect t tAnswer t- tAnswer: tA
51) tBy tconducting ta(n) t________, ta tfirm tidentifies tthe tcritical tthreats tand topportunities tin tits
tcompetitive tenvironment.
A) tinternal tanalysis
B) tcompetitive tanalysis
C) texternal tanalysis
D) tstrategic tchoice t- tCorrect t tAnswer t- tAnswer: tC
52) t________ thelps ta tfirm tunderstand twhich tof tits tresources tand tcapabilities tare tlikely tto tbe tsources tof
tcompetitive tadvantage.
A) tCompetitive tanalysis
, B) tInternal tanalysis
C) tStrategic tchoice
D) tExternal tanalysis t- tCorrect t tAnswer t- tAnswer: tB
53) tActions tfirms ttake tto tgain tcompetitive tadvantages tin ta tsingle tmarket tor tindustry tare tknown tas
A) tbusiness tlevel tstrategies.
B) tcorporate tlevel tstrategies.
C) tdiversification tstrategies.
D) tstrategy timplementation. t- tCorrect t tAnswer t- tAnswer: tA
54) tActions tfirms ttake tto tgain tcompetitive tadvantages tby toperating tin tmultiple tmarkets tor tindustries
tsimultaneously tare tknown tas
A) tcorporate tlevel tstrategies.
B) tdiversification tstrategies.
C) tbusiness tlevel tstrategies.
D) tstrategic talliance tstrategies. t- tCorrect t tAnswer t- tAnswer: tA
55) t________ toccurs twhen ta tfirm tadopts torganizational tpolicies tand tpractices tthat tare tconsistent twith
tits tstrategy.
A) tStrategy tformulation
B) tStrategic tchoice
C) tStrategy timplementation
D) tStrategic tcontrol t- tCorrect t tAnswer t- tAnswer: tC
56) tWhen ta tfirm tis table tto tcreate tmore teconomic tvalue tthan trival tfirms tit tis tsaid tto thave ta(n)
A) tcomparative tadvantage.
t t t t
1-3) with correct answers
t t t t
42) tA tsequential tset tof tanalyses tand tchoices tthat tcan tincrease tthe tlikelihood tthat ta tfirm twill tchoose ta
tstrategy tthat tgenerates tcompetitive tadvantages tis tthe
A) torganizational tchange tprocess.
B) tstrategic tmanagement tprocess.
C) tmission tstatement tprocess.
D) tgoal tsetting tprocess. t- tCorrect t tAnswer t- tAnswer: tB
43) tA tfirm's t________ tis tits tlong-term tpurpose tthat tdefines tboth twhat tit taspires tto tbe tin tthe tlong trun
tand twhat tit twants tto tavoid tin tthe tmeantime.
A) tmission
B) tstrategy
C) tobjective
D) tgoal t- tCorrect t tAnswer t- tAnswer: tA
44) tThe tstrategic tmanagement tprocess tbegins twhen ta tfirm
A) tdetermines tits tobjectives.
B) tdefines tits tmission.
C) tmakes ta tstrategic tchoice.
D) timplements tits tstrategy. t- tCorrect t tAnswer t- tAnswer: tB
45) tFirms twhose tmission tis tcentral tto tall tthey tdo tare tknown tas t________ tfirms.
,A) tmissionary
B) temergent
C) tparity
D) tvisionary t- tCorrect t tAnswer t- tAnswer: tD
46) tFrom t1926 tto t1995, tvisionary tfirms tearned t________ treturns tcompared tto tfirms tthat twere tnot
tvisionary tfirms.
A) tsubstantially tlower
B) tsubstantially thigher
C) tmarginally tlower
D) tequivalent t- tCorrect t tAnswer t- tAnswer: tB
47) tThe tmission tstatements tof tvisionary tfirms
A) tsuggest tthat tprofit tmaximizing, twhile tan timportant tcorporate tobjective, tis tnot ttheir tprimary treason
tfor texistence.
B) tsuggest tthat tprofit tmaximizing tis tneither tan timportant tcorporate tobjective tnor ttheir tprimary treason
tfor texistence.
C) tsuggest tthat tprofit tmaximizing tis ttheir tprimary treason tfor texistence.
D) tsuggest tthat tvalue tmaximizing tis ttheir tprimary treason tof texistence. t- tCorrect t tAnswer t- tAnswer: tA
48) tWhich tof tthe tfollowing tstatements tregarding tfirm tmission tis taccurate?
A) tWhile tsome tfirms thave tused ttheir tmissions tto tdevelop tstrategies tthat tcreate tsignificant tcompetitive
tadvantages, tfirm tmissions tcan thurt ta tfirm's tperformance tas twell.
B) tVirtually tall tfirms thave tused tmissions tto tdevelop tstrategies tthat tcreate tsignificant tcompetitive
tadvantages, twhile tvery tfew tfirms thave tused tmissions tthat tcan thurt ttheir tperformance.
C) tIt tis tvery trare tfor tfirms tto tbe table tto tuse ttheir tmissions tto tdevelop tstrategies tthat tcreate tsignificant
tcompetitive tadvantages, tand tmost tfirm tmissions tactually thurt ttheir tperformance.
,D) tMissions ttend tto thave tvery tlittle timpact ton ta tfirm's tability tto tcreate tsignificant tcompetitive
tadvantages. t- tCorrect t tAnswer t- tAnswer: tA
49) t________ tare tspecific tmeasurable ttargets ta tfirm tcan tuse tto tevaluate tthe textent tto twhich tit tis
trealizing tits tmission.
A) tStrategies
B) tMissions
C) tCompetitive tadvantages
D) tObjectives t- tCorrect t tAnswer t- tAnswer: tD
50) tHigh tquality tobjectives tare tthose tthat tare
A) ttightly tconnected tto telements tof ta tfirm's tmission tand tare trelatively teasy tto tmeasure tand ttrack tover
ttime.
B) tdifficult tto tmeasure tand ttrack tover ttime.
C) tnon-existent.
D) tnot tquantitative. t- tCorrect t tAnswer t- tAnswer: tA
51) tBy tconducting ta(n) t________, ta tfirm tidentifies tthe tcritical tthreats tand topportunities tin tits
tcompetitive tenvironment.
A) tinternal tanalysis
B) tcompetitive tanalysis
C) texternal tanalysis
D) tstrategic tchoice t- tCorrect t tAnswer t- tAnswer: tC
52) t________ thelps ta tfirm tunderstand twhich tof tits tresources tand tcapabilities tare tlikely tto tbe tsources tof
tcompetitive tadvantage.
A) tCompetitive tanalysis
, B) tInternal tanalysis
C) tStrategic tchoice
D) tExternal tanalysis t- tCorrect t tAnswer t- tAnswer: tB
53) tActions tfirms ttake tto tgain tcompetitive tadvantages tin ta tsingle tmarket tor tindustry tare tknown tas
A) tbusiness tlevel tstrategies.
B) tcorporate tlevel tstrategies.
C) tdiversification tstrategies.
D) tstrategy timplementation. t- tCorrect t tAnswer t- tAnswer: tA
54) tActions tfirms ttake tto tgain tcompetitive tadvantages tby toperating tin tmultiple tmarkets tor tindustries
tsimultaneously tare tknown tas
A) tcorporate tlevel tstrategies.
B) tdiversification tstrategies.
C) tbusiness tlevel tstrategies.
D) tstrategic talliance tstrategies. t- tCorrect t tAnswer t- tAnswer: tA
55) t________ toccurs twhen ta tfirm tadopts torganizational tpolicies tand tpractices tthat tare tconsistent twith
tits tstrategy.
A) tStrategy tformulation
B) tStrategic tchoice
C) tStrategy timplementation
D) tStrategic tcontrol t- tCorrect t tAnswer t- tAnswer: tC
56) tWhen ta tfirm tis table tto tcreate tmore teconomic tvalue tthan trival tfirms tit tis tsaid tto thave ta(n)
A) tcomparative tadvantage.
