,Test |bank |Strategic |Management |and |Business |Policy: |Globalization, |Innovation |and
|Sustainability |15edition |Thomas |L |Wheelen
Chapter |1 | Basic |Concepts |in |Strategic |Management
1) The |emphasis |o f|strategic |management |is |on
A) long-term |performance.
B) first |line |managers.
C) the |short-run |performance |o f |the |corporation.
D) an |examination |o f |the |organization's |internal |environment.
E) an |investigation |o f|competitor |actions.
|Answer: | A
Difficulty: | Easy
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Application |of |knowledge
2) Research |suggests |that |strategic |management |evolves |through |four |sequential |phases |in
|corporations. |The |first |phase |is
A) externally |oriented |planning.
B) basic |financial |planning.
C) internally |oriented |planning.
D) forecast-based |planning.
E) strategic |management.
|Answer: |B
Difficulty: | Easy
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Application |of |knowledge
3) The |time |horizon |involved |with |regard |to |basic |financial |planning |is |usually
A) one |year.
B) one |quarter.
C) three |to |five |years.
D) less |than |one |month.
E) five |to |ten |years.
|Answer: |A
|Difficulty: | Easy
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Application |of |knowledge
4) A|difference |between |basic |financial |planning |and |forecast-based |planning |is
A) the |t ime |horizon |is |shorter |in |forecast-based |planning.
B) forecast-based |planning |incorporates |environmental |data |and |extrapolates |current |trends.
C) basic |financial |planning |utilizes |consultants |with |sophisticated |techniques.
D) basic |financial |planning |utilizes |scenarios |and |contingency |strategies.
E) basic |financial |planning |relies |heavily |on |input |from |lower |levels |in |the |organization.
|Answer: |B
Difficulty: | Moderate
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Analytical |thinking
,5) Top-down |planning |that |emphasizes |formal |strategy |formulation |and |leaves |the
|implementation |issues |to |lower |management |levels |is |known |as
A) forecast-based |planning.
B) externally |oriented |planning.
C) strategic |management.
D) basic |financial |planning.
E) none |of |the |above
|Answer: | B
|Difficulty: | Moderate
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Application |of |knowledge
6) In |the |final |phase |o f |strategic |management, |strategic |information |is |available |to
A) people |throughout |the |organization.
B) the |top |management |responsible |for |decision-making.
C) middle |management.
D) operational |personnel.
E) only |those |responsible |for |implementing |the |strategy.
|Answer: | A
Difficulty: | Moderate
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Application |of |knowledge
7) In |a |survey |o f |50 |corporations, |which |o f |t he |following |was |rated |as |one |of |t he |three |top
|benefits |of |strategic |management?
A) clearer |sense |o f |strategic |vision |for |the |firm
B) higher |levels |of |employee |motivation
C) higher |levels |o f |job |satisfaction
D) improved |productivity
E) lower |employee |turnover
|Answer: | A
Difficulty: | Moderate
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Application |of |knowledge
8) When |an |organization |is |evaluating |its |strategic |position, |which |is |not |one |of|the |strategic
|questions |that |an |organization |generally |may |ask |itself?
A) Where |is |the |organization |now?
B) Are |we |on |target |to |hit |our |financial |o bjectives |next |year?
C) If |no |changes |are |made, |where |will |the |organization |be |in |one |year?
D) If|the |evaluation |is |negative, |what |specific |actions |should |management |take?
E) If |no |changes |are |made, |where |will |t he |organization |be |in |10 |years?
|Answer: |B
Difficulty: | Moderate
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Analytical |thinking
9) Research |o f |t he |planning |practices |of |companies |in |the |oil |industry |concludes |that |the |real
, value |of |modern |strategic |planning |is |more |in |the that |is |part |of |a |future-oriented
|planning |process |than |in |any |resulting |written |strategic |plan.
A) planning
B) strategic |thinking |and |organizational |learning
C) resulting |written |strategic |plan
D) formality |o f |the |process
E) improved |communication |within |the |organization
|Answer: |B
Difficulty: | Difficult
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Application |of |knowledge
10) Strategic |planning |within |a |small |organization
A) may |be |informal |and |irregular.
B) must |be |elaborate |to |allow |for |future |growth.
C) should |always |be |formalized |and |explicitly |stated.
D) should |be |done |by |the |president |only.
E) is |unnecessary |and |a |waste |o f |t ime.
|Answer: | A
Difficulty: | Moderate
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Application |of |knowledge
11) Strategic |planning |in |a |multidivisional |corporation
A) should |be |informal |to |allow |complete |understanding |by |the |many |participants.
B) should |be |instigated |only |from |t he |main |corporate |office.
C) should |be |accomplished |quickly |to |decrease |the |likelihood |o f |it |becoming |outdated.
D) should |encourage |a |clear |delineation |between |top |management |and |lower-level |managers.
E) should |be |a |formalized |and |sophisticated |system.
|Answer: |E
Difficulty: | Moderate
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Application |of |knowledge
12) Strategic |management |is |the |set |of |managerial |decisions |that |determines |the |short-term
|performance |of |a |corporation.
Answer: |FALSE
|Difficulty: | Easy
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Application |of |knowledge
|Sustainability |15edition |Thomas |L |Wheelen
Chapter |1 | Basic |Concepts |in |Strategic |Management
1) The |emphasis |o f|strategic |management |is |on
A) long-term |performance.
B) first |line |managers.
C) the |short-run |performance |o f |the |corporation.
D) an |examination |o f |the |organization's |internal |environment.
E) an |investigation |o f|competitor |actions.
|Answer: | A
Difficulty: | Easy
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Application |of |knowledge
2) Research |suggests |that |strategic |management |evolves |through |four |sequential |phases |in
|corporations. |The |first |phase |is
A) externally |oriented |planning.
B) basic |financial |planning.
C) internally |oriented |planning.
D) forecast-based |planning.
E) strategic |management.
|Answer: |B
Difficulty: | Easy
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Application |of |knowledge
3) The |time |horizon |involved |with |regard |to |basic |financial |planning |is |usually
A) one |year.
B) one |quarter.
C) three |to |five |years.
D) less |than |one |month.
E) five |to |ten |years.
|Answer: |A
|Difficulty: | Easy
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Application |of |knowledge
4) A|difference |between |basic |financial |planning |and |forecast-based |planning |is
A) the |t ime |horizon |is |shorter |in |forecast-based |planning.
B) forecast-based |planning |incorporates |environmental |data |and |extrapolates |current |trends.
C) basic |financial |planning |utilizes |consultants |with |sophisticated |techniques.
D) basic |financial |planning |utilizes |scenarios |and |contingency |strategies.
E) basic |financial |planning |relies |heavily |on |input |from |lower |levels |in |the |organization.
|Answer: |B
Difficulty: | Moderate
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Analytical |thinking
,5) Top-down |planning |that |emphasizes |formal |strategy |formulation |and |leaves |the
|implementation |issues |to |lower |management |levels |is |known |as
A) forecast-based |planning.
B) externally |oriented |planning.
C) strategic |management.
D) basic |financial |planning.
E) none |of |the |above
|Answer: | B
|Difficulty: | Moderate
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Application |of |knowledge
6) In |the |final |phase |o f |strategic |management, |strategic |information |is |available |to
A) people |throughout |the |organization.
B) the |top |management |responsible |for |decision-making.
C) middle |management.
D) operational |personnel.
E) only |those |responsible |for |implementing |the |strategy.
|Answer: | A
Difficulty: | Moderate
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Application |of |knowledge
7) In |a |survey |o f |50 |corporations, |which |o f |t he |following |was |rated |as |one |of |t he |three |top
|benefits |of |strategic |management?
A) clearer |sense |o f |strategic |vision |for |the |firm
B) higher |levels |of |employee |motivation
C) higher |levels |o f |job |satisfaction
D) improved |productivity
E) lower |employee |turnover
|Answer: | A
Difficulty: | Moderate
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Application |of |knowledge
8) When |an |organization |is |evaluating |its |strategic |position, |which |is |not |one |of|the |strategic
|questions |that |an |organization |generally |may |ask |itself?
A) Where |is |the |organization |now?
B) Are |we |on |target |to |hit |our |financial |o bjectives |next |year?
C) If |no |changes |are |made, |where |will |the |organization |be |in |one |year?
D) If|the |evaluation |is |negative, |what |specific |actions |should |management |take?
E) If |no |changes |are |made, |where |will |t he |organization |be |in |10 |years?
|Answer: |B
Difficulty: | Moderate
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Analytical |thinking
9) Research |o f |t he |planning |practices |of |companies |in |the |oil |industry |concludes |that |the |real
, value |of |modern |strategic |planning |is |more |in |the that |is |part |of |a |future-oriented
|planning |process |than |in |any |resulting |written |strategic |plan.
A) planning
B) strategic |thinking |and |organizational |learning
C) resulting |written |strategic |plan
D) formality |o f |the |process
E) improved |communication |within |the |organization
|Answer: |B
Difficulty: | Difficult
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Application |of |knowledge
10) Strategic |planning |within |a |small |organization
A) may |be |informal |and |irregular.
B) must |be |elaborate |to |allow |for |future |growth.
C) should |always |be |formalized |and |explicitly |stated.
D) should |be |done |by |the |president |only.
E) is |unnecessary |and |a |waste |o f |t ime.
|Answer: | A
Difficulty: | Moderate
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Application |of |knowledge
11) Strategic |planning |in |a |multidivisional |corporation
A) should |be |informal |to |allow |complete |understanding |by |the |many |participants.
B) should |be |instigated |only |from |t he |main |corporate |office.
C) should |be |accomplished |quickly |to |decrease |the |likelihood |o f |it |becoming |outdated.
D) should |encourage |a |clear |delineation |between |top |management |and |lower-level |managers.
E) should |be |a |formalized |and |sophisticated |system.
|Answer: |E
Difficulty: | Moderate
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Application |of |knowledge
12) Strategic |management |is |the |set |of |managerial |decisions |that |determines |the |short-term
|performance |of |a |corporation.
Answer: |FALSE
|Difficulty: | Easy
Learning |Obj.: |1.1: |Discuss |the |benefits |o f|strategic |management |AACSB:
| Application |of |knowledge
