Chapter 1
The Concept of Strategy
True or False Questions
1. Strategy is a detailed plan and set of instructions that programs the actions of an organization.
@ Pages and References: p4
a. T
*b. F
2. Strategy is a unifying theme that gives coherence and direction to the actions and decisions of
an organization.
@ Pages and References: p4
*a. T
b. F
3. The career success of both Queen Elizabeth II and Lady Gaga may be attributed mainly to the
influences of luck and superior resources
@ Pages and References: p5
a. T
*b. F
4. If a firm can devise a brilliant strategy, it will be successful irrespective of how effectively it is
implemented.
@ Pages and References: p5
a. T
*b. F
5. A key component of an effective strategy is clear, consistent, long-term goals.
,@ Pages and References: p10
*a. T
b. F
6. A major problem of using SWOT analyses in distinguishing strengths form weaknesses and
opportunities from threats.
@ Pages and References: p11
*a. T
b. F
7. The concept of “Strategic fit” describes the gap or fit between the environment and a firm’s
strategy.
@ Pages and References: p13
*a. T
b. F
8. Contingency theory postulates that a firm’s strategy must to flexible in order to meet any
possible contingency.
@ Pages and References: p11.
a. T
*b. F
9. Business strategy has intellectual origins in military strategy.
@ Pages and References: p12
*a. T
b. F
10. Strategy denotes the entire plan whereas a tactic refers to a scheme for specific actions.
@ Pages and References: p12
,*a. T
b. F
11. Strategic decisions are important, involve a significant commitment of resources and should
be easily reversible.
@ Pages and References: p12
a. T
*b. F
12. The main factor causing the transition from corporate planning to strategic management was
the work of Michael Porter and fellow academics at Harvard Business School.
@ Pages and References: p13
*a. T
b. F
13. Strategy answers two basic questions: where and how to compete?
@ Pages and References: p18
*a. T
b. F
14. In the large, complex firm, two main levels of strategy can be distinguished: corporate
strategy and business (or competitive) strategy.
@ Pages and References: p18
*a. T
b. F
15. A vision statement describes a company’s purpose, while a mission statement projects what a
company wants to be.
@ Pages and References: pp17-18
a. T
, *b. F
16. An intended strategy is a set of initial ethical intentions; an emergent strategy comprises
actions or changes that emerge from the organization or its environment; and finally, the realized
strategy is the set of strategic changes and actions that actually takes place.
@ Pages and References: p21
a. T
*b. F
17. A firm’s strategy can be described in terms of the answers to two questions: What is the form
trying to achieve? And how is it building a competitive advantage?
@ Pages and References: p20
a. T
*b. F
18. The dynamic dimension of a firm’s strategy (“competing for tomorrow”) is described by its
Mission statement, its vision statement, and its specific performance targets for the future.
@ Pages and References: p21
*a. T
b. F
19. According to Henry Mintzberg, while realized strategy is primarily an outcome of intended
strategy, emergent strategy also plays an important role.
@ Pages and References: p22.
*a. T
b. F
The Concept of Strategy
True or False Questions
1. Strategy is a detailed plan and set of instructions that programs the actions of an organization.
@ Pages and References: p4
a. T
*b. F
2. Strategy is a unifying theme that gives coherence and direction to the actions and decisions of
an organization.
@ Pages and References: p4
*a. T
b. F
3. The career success of both Queen Elizabeth II and Lady Gaga may be attributed mainly to the
influences of luck and superior resources
@ Pages and References: p5
a. T
*b. F
4. If a firm can devise a brilliant strategy, it will be successful irrespective of how effectively it is
implemented.
@ Pages and References: p5
a. T
*b. F
5. A key component of an effective strategy is clear, consistent, long-term goals.
,@ Pages and References: p10
*a. T
b. F
6. A major problem of using SWOT analyses in distinguishing strengths form weaknesses and
opportunities from threats.
@ Pages and References: p11
*a. T
b. F
7. The concept of “Strategic fit” describes the gap or fit between the environment and a firm’s
strategy.
@ Pages and References: p13
*a. T
b. F
8. Contingency theory postulates that a firm’s strategy must to flexible in order to meet any
possible contingency.
@ Pages and References: p11.
a. T
*b. F
9. Business strategy has intellectual origins in military strategy.
@ Pages and References: p12
*a. T
b. F
10. Strategy denotes the entire plan whereas a tactic refers to a scheme for specific actions.
@ Pages and References: p12
,*a. T
b. F
11. Strategic decisions are important, involve a significant commitment of resources and should
be easily reversible.
@ Pages and References: p12
a. T
*b. F
12. The main factor causing the transition from corporate planning to strategic management was
the work of Michael Porter and fellow academics at Harvard Business School.
@ Pages and References: p13
*a. T
b. F
13. Strategy answers two basic questions: where and how to compete?
@ Pages and References: p18
*a. T
b. F
14. In the large, complex firm, two main levels of strategy can be distinguished: corporate
strategy and business (or competitive) strategy.
@ Pages and References: p18
*a. T
b. F
15. A vision statement describes a company’s purpose, while a mission statement projects what a
company wants to be.
@ Pages and References: pp17-18
a. T
, *b. F
16. An intended strategy is a set of initial ethical intentions; an emergent strategy comprises
actions or changes that emerge from the organization or its environment; and finally, the realized
strategy is the set of strategic changes and actions that actually takes place.
@ Pages and References: p21
a. T
*b. F
17. A firm’s strategy can be described in terms of the answers to two questions: What is the form
trying to achieve? And how is it building a competitive advantage?
@ Pages and References: p20
a. T
*b. F
18. The dynamic dimension of a firm’s strategy (“competing for tomorrow”) is described by its
Mission statement, its vision statement, and its specific performance targets for the future.
@ Pages and References: p21
*a. T
b. F
19. According to Henry Mintzberg, while realized strategy is primarily an outcome of intended
strategy, emergent strategy also plays an important role.
@ Pages and References: p22.
*a. T
b. F
