,Strategic Management: Text and Cases, 9e (Dess)
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Chapter 1 Strategic Management: Creating Competitive Advantages
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1) Lands' End's failure under the leadership of Ms. Frederica Marchionni was said to be a direct r
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esult of the quality of her leadership. According to the text, this would be an example of the "ro
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mantic" perspective of leadership.
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Answer: TRUE c n
Explanation: In the romantic view of leadership, the implicit assumption is that the leader is the
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key force in determining an organization's success or lack thereof. Under Ms. Marchionni's lead
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ership, the company reported a 19.5-million-dollar loss for 2016 after having reported a 73.8-
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million-dollar profit for the previous year under its previous CEO.
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Difficulty: 2 Medium cn cn
Topic: Strategy and the Strategic Management Process
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Learning Objective: 01- cn c n
01 The definition of strategic management and its four key attributes. Bloom's: Understand
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AACSB: Analytical Thinking Access c n cn cn
ibility: Keyboard Navigation
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2) Strategic management consists of the analyses, decisions, and actions an organization
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undertakes in order to create and sustain competitive advantages.
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Answer: TRUE c n
Explanation: According to the textbook, this is the definition of strategic management. Difficul
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ty: 1 Easy
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Topic: Strategy and the Strategic Management Process
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Learning Objective: 01- cn c n
01 The definition of strategic management and its four key attributes. Bloom's: Remember
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AACSB: Knowledge Application Ac c n cn cn
cessibility: Keyboard Navigation c n cn
3) Management innovations such as total quality, just-in- cn cn cn cn cn cn
time, benchmarking, business process reengineering, and outsourcing are important but not enoug
cn cn cn cn cn cn cn cn cn cn cn
h for building sustainable competitive advantage.
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Answer: TRUE c n
Explanation: Sustainable competitive advantage cannot be achieved through operational effecti
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veness alone. Popular management innovations of the last two decades like total quality, just-in-
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time, benchmarking, business process reengineering, and outsourcing are concerned with operati
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onal effectiveness.
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Difficulty: 2 Medium cn cn
Topic: Strategy and the Strategic Management Process
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Learning Objective: 01- cn c n
01 The definition of strategic management and its four key attributes. Bloom's: Understand
cn cn cn cn cn cn cn cn cn cn cn c n
AACSB: Analytical Thinking Access c n cn cn
ibility: Keyboard Navigation
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4) Trade-off decisions between effectiveness and efficiency are important in the practice of
cn cn cn cn cn cn cn cn cn cn cn
,strategic management. cn
Answer: TRUE c n
Explanation: The fourth attribute of strategic management is that it involves the recognition of
c n cn cn cn cn cn cn cn cn cn cn cn cn cn
trade-
offs between effectiveness and efficiency. Some authors have referred to this as the difference
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between doing the right thing (effectiveness) and doing things right (efficiency).
cn cn cn cn cn cn cn cn cn cn
Difficulty: 2 Medium cn cn
Topic: Strategy and the Strategic Management Process
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Learning Objective: 01- cn c n
01 The definition of strategic management and its four key attributes. Bloom's: Understand
cn cn cn cn cn cn cn cn cn cn cn c n
AACSB: Analytical Thinking Access c n cn cn
ibility: Keyboard Navigation
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5) According to Henry Mintzberg, a management scholar, most firms do not realize their original i
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ntended strategy. cn
Answer: TRUE c n
Explanation: Henry Mintzberg states that the intended strategy rarely survives in its original for
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m. Unforeseen environmental developments, unanticipated resource constraints, or changes in ma
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nagerial preferences may result in at least some parts of the intended strategy remaining unrealize
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d. On the other hand, good managers will want to take advantage of a new opportunity presented
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by the environment, even if it was not part of the original set of intentions.
cn cn cn cn cn cn cn cn cn cn cn cn cn cn
Difficulty: 2 Medium cn cn
Topic: Strategy and the Strategic Management Process
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Learning Objective: 01- cn c n
02 The strategic management process and its three interrelated and principal activities.
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Bloom's: Understand AACS c n cn
B: Analytical Thinking
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Accessibility: Keyboard Navigation c n cn
6) The final realized strategy of a firm is a combination of deliberate and time-
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tested strategies only.
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Answer: FALSE c n
Explanation: Realized strategy is that strategy of a firm in which organizational decisions are dete
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rmined by both analysis and unforeseen environmental developments, unanticipated resource constr
cn cn cn cn cn cn cn cn cn cn
aints, and/or changes in managerial preferences.
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Difficulty: 2 Medium cn cn
Topic: Strategy and the Strategic Management Process
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Learning Objective: 01- cn c n
02 The strategic management process and its three interrelated and principal activities.
cn cn cn cn cn cn cn cn cn cn cn
Bloom's: Understand c n
AACSB: Knowledge Application Ac c n cn cn
cessibility: Keyboard Navigation c n cn
, 7) Strategy analysis is the study of only the big picture external environments of the firm.
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Answer: FALSE c n
Explanation: Strategy analysis is the study of the external and internal environments of a firm,
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and their fit with organizational vision and goals.
cn cn cn cn cn cn cn
Difficulty: 2 Medium cn cn
Topic: Strategy and the Strategic Management Process
c n cn cn cn cn cn
Learning Objective: 01- cn c n
02 The strategic management process and its three interrelated and principal activities.
cn cn cn cn cn cn cn cn cn cn cn
Bloom's: Understand c n
AACSB: Knowledge Application Ac c n cn cn
cessibility: Keyboard Navigation c n cn
8) All successful firms compete and outperform their rivals by developing bases for competitive
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advantage, which can be achieved only through cost leadership.
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Answer: FALSE c n
Explanation: Successful firms strive to develop bases for competitive advantage, which can be ach
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ieved through cost leadership and/or differentiation as well as by focusing on a narrow or industry
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wide market segment.
cn cn
Difficulty: 2 Medium cn cn
Topic: Strategy and the Strategic Management Process
c n cn cn cn cn cn
Learning Objective: 01- cn c n
02 The strategic management process and its three interrelated and principal activities.
cn cn cn cn cn cn cn cn cn cn cn
Bloom's: Understand AACS c n cn
B: Analytical Thinking
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Accessibility: Keyboard Navigation c n cn
9) The three primary participants in corporate governance are: (1) the shareholders, (2) the
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management (led by the chief executive officer), and (3) the employees.
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Answer: FALSE c n
Explanation: The primary participants are: (1) the shareholders, (2) the management (led by the chi
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ef executive officer), and (3) the board of directors.
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Difficulty: 2 Medium cn cn
Topic: Corporate Governance
c n cn
Learning Objective: 01- cn c n
03 The strategic role of corporate governance and stakeholder management, as well as how "symb
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iosis" can be achieved among an organization's stakeholders. Bloom's: Understand
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AACSB: Knowledge Application Ac c n cn cn
cessibility: Keyboard Navigation c n cn
cn cn cn cn cn cn
Chapter 1 Strategic Management: Creating Competitive Advantages
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1) Lands' End's failure under the leadership of Ms. Frederica Marchionni was said to be a direct r
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
esult of the quality of her leadership. According to the text, this would be an example of the "ro
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
mantic" perspective of leadership.
cn cn cn
Answer: TRUE c n
Explanation: In the romantic view of leadership, the implicit assumption is that the leader is the
c n cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
key force in determining an organization's success or lack thereof. Under Ms. Marchionni's lead
cn cn cn cn cn cn cn cn cn cn cn cn cn
ership, the company reported a 19.5-million-dollar loss for 2016 after having reported a 73.8-
cn cn cn cn cn cn cn cn cn cn cn cn cn
million-dollar profit for the previous year under its previous CEO.
cn cn cn cn cn cn cn cn cn
Difficulty: 2 Medium cn cn
Topic: Strategy and the Strategic Management Process
c n cn cn cn cn cn
Learning Objective: 01- cn c n
01 The definition of strategic management and its four key attributes. Bloom's: Understand
cn cn cn cn cn cn cn cn cn cn cn c n
AACSB: Analytical Thinking Access c n cn cn
ibility: Keyboard Navigation
c n cn
2) Strategic management consists of the analyses, decisions, and actions an organization
cn cn cn cn cn cn cn cn cn cn cn
undertakes in order to create and sustain competitive advantages.
cn cn cn cn cn cn cn cn
Answer: TRUE c n
Explanation: According to the textbook, this is the definition of strategic management. Difficul
c n cn cn cn cn cn cn cn cn cn cn cn
ty: 1 Easy
cn cn
Topic: Strategy and the Strategic Management Process
c n cn cn cn cn cn
Learning Objective: 01- cn c n
01 The definition of strategic management and its four key attributes. Bloom's: Remember
cn cn cn cn cn cn cn cn cn cn cn c n
AACSB: Knowledge Application Ac c n cn cn
cessibility: Keyboard Navigation c n cn
3) Management innovations such as total quality, just-in- cn cn cn cn cn cn
time, benchmarking, business process reengineering, and outsourcing are important but not enoug
cn cn cn cn cn cn cn cn cn cn cn
h for building sustainable competitive advantage.
cn cn cn cn cn
Answer: TRUE c n
Explanation: Sustainable competitive advantage cannot be achieved through operational effecti
c n cn cn cn cn cn cn cn cn
veness alone. Popular management innovations of the last two decades like total quality, just-in-
cn cn cn cn cn cn cn cn cn cn cn cn cn
time, benchmarking, business process reengineering, and outsourcing are concerned with operati
cn cn cn cn cn cn cn cn cn cn
onal effectiveness.
cn
Difficulty: 2 Medium cn cn
Topic: Strategy and the Strategic Management Process
c n cn cn cn cn cn
Learning Objective: 01- cn c n
01 The definition of strategic management and its four key attributes. Bloom's: Understand
cn cn cn cn cn cn cn cn cn cn cn c n
AACSB: Analytical Thinking Access c n cn cn
ibility: Keyboard Navigation
c n cn
4) Trade-off decisions between effectiveness and efficiency are important in the practice of
cn cn cn cn cn cn cn cn cn cn cn
,strategic management. cn
Answer: TRUE c n
Explanation: The fourth attribute of strategic management is that it involves the recognition of
c n cn cn cn cn cn cn cn cn cn cn cn cn cn
trade-
offs between effectiveness and efficiency. Some authors have referred to this as the difference
cn cn cn cn cn cn cn cn cn cn cn cn cn cn
between doing the right thing (effectiveness) and doing things right (efficiency).
cn cn cn cn cn cn cn cn cn cn
Difficulty: 2 Medium cn cn
Topic: Strategy and the Strategic Management Process
c n cn cn cn cn cn
Learning Objective: 01- cn c n
01 The definition of strategic management and its four key attributes. Bloom's: Understand
cn cn cn cn cn cn cn cn cn cn cn c n
AACSB: Analytical Thinking Access c n cn cn
ibility: Keyboard Navigation
c n cn
5) According to Henry Mintzberg, a management scholar, most firms do not realize their original i
cn cn cn cn cn cn cn cn cn cn cn cn cn cn
ntended strategy. cn
Answer: TRUE c n
Explanation: Henry Mintzberg states that the intended strategy rarely survives in its original for
c n cn cn cn cn cn cn cn cn cn cn cn cn
m. Unforeseen environmental developments, unanticipated resource constraints, or changes in ma
cn cn cn cn cn cn cn cn cn cn
nagerial preferences may result in at least some parts of the intended strategy remaining unrealize
cn cn cn cn cn cn cn cn cn cn cn cn cn cn
d. On the other hand, good managers will want to take advantage of a new opportunity presented
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
by the environment, even if it was not part of the original set of intentions.
cn cn cn cn cn cn cn cn cn cn cn cn cn cn
Difficulty: 2 Medium cn cn
Topic: Strategy and the Strategic Management Process
c n cn cn cn cn cn
Learning Objective: 01- cn c n
02 The strategic management process and its three interrelated and principal activities.
cn cn cn cn cn cn cn cn cn cn cn
Bloom's: Understand AACS c n cn
B: Analytical Thinking
c n cn
Accessibility: Keyboard Navigation c n cn
6) The final realized strategy of a firm is a combination of deliberate and time-
cn cn cn cn cn cn cn cn cn cn cn cn cn
tested strategies only.
cn cn
Answer: FALSE c n
Explanation: Realized strategy is that strategy of a firm in which organizational decisions are dete
c n cn cn cn cn cn cn cn cn cn cn cn cn cn
rmined by both analysis and unforeseen environmental developments, unanticipated resource constr
cn cn cn cn cn cn cn cn cn cn
aints, and/or changes in managerial preferences.
cn cn cn cn cn
Difficulty: 2 Medium cn cn
Topic: Strategy and the Strategic Management Process
c n cn cn cn cn cn
Learning Objective: 01- cn c n
02 The strategic management process and its three interrelated and principal activities.
cn cn cn cn cn cn cn cn cn cn cn
Bloom's: Understand c n
AACSB: Knowledge Application Ac c n cn cn
cessibility: Keyboard Navigation c n cn
, 7) Strategy analysis is the study of only the big picture external environments of the firm.
cn cn cn cn cn cn cn cn cn cn cn cn cn cn
Answer: FALSE c n
Explanation: Strategy analysis is the study of the external and internal environments of a firm,
c n cn cn cn cn cn cn cn cn cn cn cn cn cn cn
and their fit with organizational vision and goals.
cn cn cn cn cn cn cn
Difficulty: 2 Medium cn cn
Topic: Strategy and the Strategic Management Process
c n cn cn cn cn cn
Learning Objective: 01- cn c n
02 The strategic management process and its three interrelated and principal activities.
cn cn cn cn cn cn cn cn cn cn cn
Bloom's: Understand c n
AACSB: Knowledge Application Ac c n cn cn
cessibility: Keyboard Navigation c n cn
8) All successful firms compete and outperform their rivals by developing bases for competitive
cn cn cn cn cn cn cn cn cn cn cn cn cn
advantage, which can be achieved only through cost leadership.
cn cn cn cn cn cn cn cn
Answer: FALSE c n
Explanation: Successful firms strive to develop bases for competitive advantage, which can be ach
c n cn cn cn cn cn cn cn cn cn cn cn cn
ieved through cost leadership and/or differentiation as well as by focusing on a narrow or industry
cn cn cn cn cn cn cn cn cn cn cn cn cn cn cn
wide market segment.
cn cn
Difficulty: 2 Medium cn cn
Topic: Strategy and the Strategic Management Process
c n cn cn cn cn cn
Learning Objective: 01- cn c n
02 The strategic management process and its three interrelated and principal activities.
cn cn cn cn cn cn cn cn cn cn cn
Bloom's: Understand AACS c n cn
B: Analytical Thinking
c n cn
Accessibility: Keyboard Navigation c n cn
9) The three primary participants in corporate governance are: (1) the shareholders, (2) the
cn cn cn cn cn cn cn cn cn cn cn cn cn
management (led by the chief executive officer), and (3) the employees.
cn cn cn cn cn cn cn cn cn cn
Answer: FALSE c n
Explanation: The primary participants are: (1) the shareholders, (2) the management (led by the chi
c n cn cn cn cn cn cn cn cn cn cn cn cn cn
ef executive officer), and (3) the board of directors.
cn cn cn cn cn cn cn cn
Difficulty: 2 Medium cn cn
Topic: Corporate Governance
c n cn
Learning Objective: 01- cn c n
03 The strategic role of corporate governance and stakeholder management, as well as how "symb
cn cn cn cn cn cn cn cn cn cn cn cn cn cn
iosis" can be achieved among an organization's stakeholders. Bloom's: Understand
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AACSB: Knowledge Application Ac c n cn cn
cessibility: Keyboard Navigation c n cn
