Question
Chapter 1
1) The decision to expand or diversify operations is a strategy-formulation issue.
- A) True
- B) False
2) The terms strategic management and strategic planning are synonymous in this text.
- A) True
- B) False
3) Anything the firm does well especially when compared to rival firms could be considered a competitive advantage.
- A) True
- B) False
4) Strengths and weaknesses are determined relative to competitors.
- A) True
- B) False
5) Objectives should be specific, measurable, achievable, reasonable, consistent, time-bound, and clear.
- A) True
- B) False
6) The goal of strategic management is to
- A) achieve competitive advantage.
- B) maintain competitive advantage.
- C) achieve and maintain competitive advantage.
- D) eliminate competitive advantage.
- E) eliminate and abolish competitive advantage.
7) The strategic-management process
- A) occurs once a year.
- B) is a semiannual process.
- C) is a continuous process.
- D) applies mostly to companies with sales greater than $100 million.
- E) applies mostly to small businesses.
8) An important activity in ________ is taking corrective action.
- A) strategy evaluation
- B) strategy implementation
- C) strategy formulation
- D) strategy leadership
- E) all of the above
9) In which phase of strategic management are annual objectives especially important?
- A) Reduction
- B) Formulation
- C) Implementation
- D) Evaluation
- E) Policy
10) In which phase of strategic management are long-term objectives especially important?
- A) Formulation
- B) Control
- C) Evaluation
- D) Implementation
- E) Management
Chapter 2
1) The purpose of a mission statement is to declare all of these EXCEPT
- A) a reason for being.
- B) an annual financial plan.
- C) a statement of purpose.
- D) whom an organization wants to serve.
2) Carefully developed written mission statements provide a basis for organizing work, departments, activities, and segments around a common purpose.
- A) True
- B) False
3) A mission statement is an enduring statement of purpose that distinguishes one organization from other similar enterprises.
- A) True
- B) False
4) Whereas the mission statement answers the question, “What do we want to become?” the vision statement answers the question, “What is our business?”
- A) True
- B) False
5) A small nonprofit organization would probably develop a vision statement but not a mission statement.
- A) True
- B) False
6) The foundation for development of a comprehensive mission statement is provided by a clear vision.
- A) True
- B) False
7) A good mission statement has
- A) an employee orientation.
- B) a customer orientation.
- C) a shareholder orientation.
- D) an environmental orientation.
- E) a profit orientation
8) Which statement is TRUE?
- A) Companies must choose between having a mission statement or a vision statement.
- B) A company can’t have a mission statement unless it has a vision statement.
- C) A vision statement cannot be established until a company has developed its mission statement.
- D) The vision statement should be established before the mission statement.
- E) Companies are required by law to have both mission and vision statements.
9) Which group would be classified as stakeholders?
- A) Governments
- B) Creditors
- C) Suppliers
- D) Employees
- E) All of the above
10) As indicated in the strategic-management model, a clear ________ is needed before alternative strategies can be formulated and implemented.
- A) short-term objective
- B) implementation plan
- C) audit policy
- D) mission statement
- E) evaluation strategy