STRATEGIC MANAGEMENT
CONCEPTS AND CASE STUDIES
1. According to Richard Rumelt, what distinguishes good strategy from bad strategy?
a. Good strategy includes visionary goals; bad strategy includes analysis.
b. Good strategy is a focused, coherent response to a real challenge; bad strategy consists
of platitudes and unrealistic goals. ✅
c. Good strategy involves more planning meetings.
d. Bad strategy relies on innovation alone.
2. Which of the following are key hallmarks of bad strategy?
a. Ignoring the real issue and setting goals without plans ✅
b. Focusing resources on core priorities
c. Using a guiding policy and coherent actions
d. Diagnosing external threats
3. What are the three elements of the kernel of good strategy?
a. Vision, mission, and objectives
b. Diagnosis, Guiding Policy, and Coherent Actions ✅
c. Goals, Tactics, and Results
d. Analysis, Execution, and Control
4. Why is the ‘Kernel of Good Strategy’ important?
a. It helps leaders motivate employees.
b. It provides a clear framework for developing robust strategy with analysis, policy, and
action. ✅
c. It ensures marketing alignment.
d. It replaces the need for financial analysis.
5. What is the role of leverage in strategic management?
a. Minimizing risk through diversification
b. Concentrating effort on key pressure points to achieve outsized impact ✅
1
, c. Spreading resources evenly
d. Reducing costs through automation
6. What are proximate objectives?
a. Unrealistic long-term visions
b. Achievable short-term goals that build momentum ✅
c. Objectives that require massive investment
d. Aspirational slogans
7. What does the concept of chain-linked systems refer to?
a. Systems with strong connections between teams
b. Identifying and fixing the weakest link in an interdependent system ✅
c. Using AI to connect data systems
d. Building networks for market growth
8. How does Rumelt suggest crafting a strategy?
a. By choosing from a list of possible actions
b. By designing a coordinated set of moves that reinforce each other ✅
c. By copying competitors’ strategies
d. By maximizing short-term profits
9. What does a focused strategy entail?
a. Diversifying across multiple markets
b. Concentrating resources on a few key priorities and rejecting distractions ✅
c. Expanding through acquisitions
d. Reducing operational costs
10. What is the significance of growth in strategic management?
a. It ensures short-term success
b. It leverages expansion benefits like scale and network effects ✅
c. It increases debt for investment
d. It reduces innovation pressure
2
, 11. Which is an example of a good strategy according to Rumelt?
a. Announcing inspirational slogans
b. Diagnosing a slowing market and revitalizing core products ✅
c. Expanding into unrelated industries
d. Prioritizing size over performance
12. What is a common pitfall of bad strategy?
a. Setting clear metrics
b. Using fuzzy slogans and unrealistic goals ✅
c. Identifying core problems
d. Focusing on leverage points
13. What gives strategy its ‘punch,’ according to Rumelt?
a. Detailed documentation
b. Coherent actions implementing the guiding policy ✅
c. High-level mission statements
d. Inspirational speeches
14. How can focusing on design improve strategic outcomes?
a. By anticipating competitors’ responses and orchestrating resources cleverly ✅
b. By simplifying the planning process
c. By emphasizing creative visuals
d. By reducing data complexity
15. What is the impact of rejecting lower-priority options in a focused strategy?
a. It limits flexibility
b. It amplifies impact on chosen priorities ✅
c. It reduces morale
d. It slows implementation
16. Which of the following is an example of a proximate objective?
a. Becoming a global leader in one year
b. Landing near Earth orbit before attempting to reach the moon ✅
c. Expanding into ten countries simultaneously
d. Creating a ten-year vision
3
CONCEPTS AND CASE STUDIES
1. According to Richard Rumelt, what distinguishes good strategy from bad strategy?
a. Good strategy includes visionary goals; bad strategy includes analysis.
b. Good strategy is a focused, coherent response to a real challenge; bad strategy consists
of platitudes and unrealistic goals. ✅
c. Good strategy involves more planning meetings.
d. Bad strategy relies on innovation alone.
2. Which of the following are key hallmarks of bad strategy?
a. Ignoring the real issue and setting goals without plans ✅
b. Focusing resources on core priorities
c. Using a guiding policy and coherent actions
d. Diagnosing external threats
3. What are the three elements of the kernel of good strategy?
a. Vision, mission, and objectives
b. Diagnosis, Guiding Policy, and Coherent Actions ✅
c. Goals, Tactics, and Results
d. Analysis, Execution, and Control
4. Why is the ‘Kernel of Good Strategy’ important?
a. It helps leaders motivate employees.
b. It provides a clear framework for developing robust strategy with analysis, policy, and
action. ✅
c. It ensures marketing alignment.
d. It replaces the need for financial analysis.
5. What is the role of leverage in strategic management?
a. Minimizing risk through diversification
b. Concentrating effort on key pressure points to achieve outsized impact ✅
1
, c. Spreading resources evenly
d. Reducing costs through automation
6. What are proximate objectives?
a. Unrealistic long-term visions
b. Achievable short-term goals that build momentum ✅
c. Objectives that require massive investment
d. Aspirational slogans
7. What does the concept of chain-linked systems refer to?
a. Systems with strong connections between teams
b. Identifying and fixing the weakest link in an interdependent system ✅
c. Using AI to connect data systems
d. Building networks for market growth
8. How does Rumelt suggest crafting a strategy?
a. By choosing from a list of possible actions
b. By designing a coordinated set of moves that reinforce each other ✅
c. By copying competitors’ strategies
d. By maximizing short-term profits
9. What does a focused strategy entail?
a. Diversifying across multiple markets
b. Concentrating resources on a few key priorities and rejecting distractions ✅
c. Expanding through acquisitions
d. Reducing operational costs
10. What is the significance of growth in strategic management?
a. It ensures short-term success
b. It leverages expansion benefits like scale and network effects ✅
c. It increases debt for investment
d. It reduces innovation pressure
2
, 11. Which is an example of a good strategy according to Rumelt?
a. Announcing inspirational slogans
b. Diagnosing a slowing market and revitalizing core products ✅
c. Expanding into unrelated industries
d. Prioritizing size over performance
12. What is a common pitfall of bad strategy?
a. Setting clear metrics
b. Using fuzzy slogans and unrealistic goals ✅
c. Identifying core problems
d. Focusing on leverage points
13. What gives strategy its ‘punch,’ according to Rumelt?
a. Detailed documentation
b. Coherent actions implementing the guiding policy ✅
c. High-level mission statements
d. Inspirational speeches
14. How can focusing on design improve strategic outcomes?
a. By anticipating competitors’ responses and orchestrating resources cleverly ✅
b. By simplifying the planning process
c. By emphasizing creative visuals
d. By reducing data complexity
15. What is the impact of rejecting lower-priority options in a focused strategy?
a. It limits flexibility
b. It amplifies impact on chosen priorities ✅
c. It reduces morale
d. It slows implementation
16. Which of the following is an example of a proximate objective?
a. Becoming a global leader in one year
b. Landing near Earth orbit before attempting to reach the moon ✅
c. Expanding into ten countries simultaneously
d. Creating a ten-year vision
3
