Questions and Answers of Strategic Management

Identify a company with a published mission statement on its website. Evaluate its mission statement along each of the following criteria:a. Is the mission statement comprehensive? Is it concise?b.
Is it necessary that the five steps in the strategic management process be performed sequentially? Why or why not?
What is the difference between an intended strategy and a realized strategy? Why is this distinction important?
How have outside perspectives influenced the development of the strategic management field?
Does the CEO alone make the strategic decisions for an organization? Explain.
A strategy seeks to develop and sustain competitive advantage. True or False
Strategic management refers to formulating successful strategies for an organization. True or False
Each step in the strategic management process is independent so that changes in one step will not substantially affect other steps. True or False
The intended strategy and the realized strategy can never be the same. True or False
Whereas IO theory emphasizes the influence of industry factors of firm performance, resource-based theory emphasizes the role of firm factors. True or False
Strategic decisions are made solely by and are ultimately the responsibility of the CEO alone. True or False
Strategies are formulated in the strategic management stage that occurs immediately after __________.A. the assessment of internal strengths and weaknesses B. implementation of the strategy C.
The strategy originally planned by top management is called __________.A. grand strategy B. realized strategy C. emergent strategy D. none of the above
The notion that successful firms tend to be the ones that adapt to influences in their industries is based on __________.A. IO theory B. resource-based theory C. contingency theory D. none of the
The notion of distinctive competence is consistent with __________.A. IO theory B. resource-based theory C. contingency theory D. none of the above
In order to contribute to sustained competitive advantage, firm resources should be __________.A. valuable and rare B. not subject to perfect imitation C. without strategically relevant resources D.
Which of the following is not a characteristic of strategic decisions?A. They are long term in nature.B. They involve choices.C. They do not involve trade-offs.D. All of the above are characteristics
Visit the websites of several major restaurant chains. Identify the industry(s) in which each one operates.Would you categorize them in the same industry or in different industries (e.g., fast food,
Identify an industry that has low barriers to entry and one that has high barriers. Explain how the difference in entry barriers influences competitive behavior in these industries.
Identify some businesses whose sales have been adversely affected by substitute products. Why has this occurred?
Identify an industry in which the suppliers have strong bargaining power and another industry in which the buyers have most of the bargaining power. How does this affect potential profitability in
A firm always operates in a single, distinct industry. True or False
All industries follow the stages of the industry life cycle model. True or False
The likelihood that new firms will enter an industry is contingent on the extent to which barriers to entry have been erected. True or False
Higher capital requirements for entering an industry ultimately raise average profitability within that industry. True or False
Substitute products are produced by competitors in the same industry. True or False
A key limitation of Porter’s five forces model is its reliance on resource-based theory. True or False
Industry growth is no longer rapid enough to support a large number of competitors in __________.A. growth B. shakeout C. maturity D. decline
The intensity of rivalry among firms in an industry is dependent on __________.A. concentration of competitors B. high fixed or storage costs C. high exit barriers D. all of the above
The decline in unit costs of a product or service that occurs as the absolute volume of production increases is known as __________.A. production effectiveness B. effective operations management C.
When switching costs are high, __________.A. customers are less likely to try a new competitor.B. companies spend more on technology.C. companies seek new suppliers to reduce costs.D. none of the
Which of the following is not a cost advantage independent of scale?A. proprietary technology B. favorable locations C. experience in the industry D. high volume of production
What is occurring when those who purchase an industry’s goods and services exercise great control over pricing and other terms?A. a high bargaining power of suppliers B. a low bargaining power of
Explain how changes in interest rates affect the automobile, home construction, and auto repair industries.
How has government regulation affected the agriculture and banking industries?
Using your college or university as an example, explain how political-legal and economic forces have affected its operations over the past decade.
Select an industry with which you are at least somewhat familiar. Utilize the search engines at www.findarticles.com and identify some of the important macroenvironmental influences faced by
It is unusual for a single firm to influence a macroenvironmental force. True or False
Government regulations in the United States have declined consistently since the mid-2000s. True or False
Some firms favor specific regulations because they erect barriers to newcomers in the industry. True or False
The Collective Trade Assessment (CTA) has worked toward greater freedom in trade across nations. True or False
A decline in GDP negatively affects all industries. True or False
When the dollar is weak, American manufacturers often open new production facilities abroad and increase purchases from foreign sources. True or False
The acronym referring to the analysis of forces in the external environment is __________.A. WASP B. PEST C. STOP D. SERCH
In this stage of analysis, macroenvironmental forces should be applied to __________.A. the firm B. the industry C. all industries D. multiple firms
Increased government regulation __________.A. is universally opposed by firms B. is necessary to promote free trade C. is all of the above D. is none of the above
At the global level, the period from World War II to the late 1980s was marked by __________.A. an increase in trade protection B. a decrease in trade protection C. an absence of U.S. imports D. none
When the value of the U.S. dollar increases, U.S. firms __________.A. compete at an advantage in foreign markets B. compete at a disadvantage in foreign markets C. tend to decrease exports to nations
A decline in a nation’s GDP for two or more consecutive quarters is known as __________.A. a depression B. a recession C. economic stagnation D. none of the above
Give an example illustrating how social trends present both opportunities and threats to businesses in hightech industries.
Give an example illustrating how the Internet has presented an opportunity or a threat to a particular industry or business organization.
Using your college or university as an example, explain how social and technological forces have affected its operations over the past decade.
Select a large firm with which you are at least somewhat familiar. Utilize the search engines at www.findarticles.com, and identify some of the important social and technological influences on the
In many respects, social forces are the drivers of consumer markets. True or False
The expansion of a religion in an emerging country is an example of a social force. True or False
The unconscious reference to one’s own cultural values as a standard of judgment is known as cultural bias. True or False
Commoditization refers to the ability to individualize product and service offerings to meet specific buyer needs. True or False
Reading business publications can serve as a means of environmental scanning. True or False
Environmental scanning can be difficult for large firms because of the availability of too much information. True or False
Which of the following is not an example of a social force?A. trends B. values C. industrial change D. all of the above
When a recession occurs __________.A. all industries benefit B. some industries benefit C. no industries benefit D. none of the above
Technological forces often __________.A. decimate an entire industry B. spawn new industries C. vary substantially among industries D. all of the above
How has the Internet changed strategic management?A. It promotes information symmetry.B. It can often be used as a distribution channel.C. It often reduces costs.D. all of the above
E-tailing is synonymous with __________.A. B2B B. B2C C. C2C D. C2B
The systematic collection and analysis of information about relevant macroenvironmental trends is known as __________.A. strategic planning B. strategic management C. environmental scanning D. none
What is and should be the relationship between an organization’s mission and its strategy?
Why do stakeholders in the same organization often have different goals? Would it not be best if they shared the same goals? Explain.
What is the difference between social responsibility and managerial ethics?
Why do there seem to be so many ethical concerns in organizations today?
What are the key advantages and disadvantages of leveraged buyouts?
Goals are specific and often quantified versions of objectives. True or False
If a firm is able to consistently earn above-average profits, it is effectively balancing the goals of its stakeholders. True or False
The agency problem refers to the balancing act a firm must exhibit when attempting to satisfy the myriad of governmental agencies. True or False
Most organizations can be classified as either ethical or unethical. True or False
The integrative social contracts view of ethics suggests that decisions should be based on religious convictions. True or False
Offshoring refers to the relocation of some or all of a firm’s manufacturing or other business activities to another country, usually to reduce costs. True or False
The reason for the firm’s existence is known as __________.A. the vision B. organizational goals C. organizational objectives D. none of the above
Which of the following is not an example of a stakeholder?A. customers B. suppliers C. employees D. none of the above
An individual’s responsibility to make business decisions that are legal, honest, moral, and fair is known as __________.A. social responsibility B. the social imperative C. managerial ethics D.
Leveraged buyouts can __________.A. strap the company with a large amount of debt B. serve as a system of checks and balances C. lead to the sale of company assets D. all of the above
The ethical perspective that suggests that organizational decisions should be made in accordance with established rules or guidelines is known as __________.A. the self-interest view B. the justice
The assessment of strategies and related processes that promote superior performance from both market and environmental perspectives is known as _________.A. CSR B. managerial ethics C. management
What are the advantages and disadvantages of internal growth as opposed to growth through mergers and acquisitions?
Why would management adopt a stability strategy? Can stability strategies be viable over a lengthy period of time? Why or why not?
When is a retrenchment strategy appropriate? What criteria can help determine what particular retrenchment strategy should be used?
How should the BCG matrix be applied? Are such portfolios always useful to corporate executives?
What are the advantages and disadvantages associated with corporations operating in centralized or decentralized fashions?
What factors should a firm’s managers consider when determining the degree of international involvement appropriate for the organization?
Because firms operating in single industries are more susceptible to industry downturns, most firms eventually diversify into other industries. True or False
The growth strategy is always the most effective strategy for a healthy firm. True or False
Synergy occurs when the combination of two organizations results in higher effectiveness and efficiency than would otherwise be generated by them separately. True or False
Strategic alliances typically involve higher bureaucratic and developmental costs when compared to mergers and acquisitions. True or False
Corporate restructuring involves the acquisition of business units unrelated to the firm’s core business unit. True or False
The BCG matrix provides managers with a systematic means of determining whether a growth, stability, or retrenchment strategy should be adopted. True or False
Diversification allows a firm to __________.A. concentrate its efforts on a single business B. use its resources more effectively C. create excess resources D. all of the above
A firm seeking rapid growth should pursue __________.A. internal growth B. external growth C. divestment of poor performing businesses D. a restructuring strategy
When a firm purchases both its suppliers and buyers, it is engaging in __________.A. forward integration B. backward integration C. both forward and backward integration D. none of the above
Which of the following is not a potential reason for selecting a stability strategy?A. The industry is not growing.B. Growth may place constraints on customer service.C. Costs associated with growth
Firms operating on an international basis limit their activities to __________.A. importing and exporting B. licensing C. strategic alliances D. all of the above
Which of the following is not an advantage of international joint ventures?A. Access to knowledge about a foreign market is given.B. Ability to eliminate risk associated with global expansion is

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