1. Which is the best question to ask when starting the strategic management process?
(a) “What is our mission?”
(b) “How well are we currently doing?”
(c) “How can we get where we want to be?”
(d) “Why aren’t we doing better?”
2. The ability of a firm to consistently outperform its rivals is called.
(a) vertical integration
(b) competitive advantage
(c) strategic intent
(d) core competency
3. General Electric is a complex conglomerate that owns many firms operating in very different industries. The strategies pursued for each of these units within GE would best be called -level strategies.
(a) corporate
(b) business
(c) functional
(d) transnational
4. An organization that is downsizing by cutting staff to reduce costs can be described as pursuing a strategy.
(a) liquidation
(b) divestiture
(c) retrenchment
(d) stability