1 When performing an external audit it is important to note that

1) The goal is to develop an exhaustive list of every possible factor that could influence the business.

2)As many managers and employees as possible should be involved in the process of performing an external audit

3)An external audit focuses on identifying and evaluating trends and events within the control of management

4)Only key strategists should be involved in the process of performing an external audit

5) Collecting and evaluating information on competitors is not a necessary step in the external audit

2 Which of the following statements is not correct regarding an organization's culture.

1)Culture captures the unconscious forces that shape a workforce

2) Organizational culture does not significantly affect business decisions

3)None of these

4)It is a pattern of behavior developed by an organization over time and used to introduce new members as the correct way to perceive, think, and respond in situations

5)Can be resistant to change

3 Which of the following statements about mission statements is correct?

1)research has failed to find a positive relationship between mission statements and organizational performance

2)the most important time for a company to develop mission and vision statements is when the company is experiencing financial difficulty

3)when a company has been successful, the question "What is our business?" becomes less important

4)the mission statement should be short, preferably one sentence

5)an effective mission statement provides useful criteria for developing and selecting strategies

4 Match each description with the following strategic management terms

High employee turnover is an example of

Guidelines, rules, and procedures established to support

implementation efforts

Where are we now, where do we want to go, and how are

we going to get there?

Ownership of scarce resources is an example of

is achieved by effectively formulating, implementing, and

evaluating strategies that capitalize on changes in trends

and internal capabilities

the act of strengthening employees' sense of effectiveness

by encouraging them to participate in decision making and

to exercise initiative and imagination, and then rewarding

them for doing so.

1 Strength

2. Empowerment

2 Policies

4 Fundamental strategic questions

5, Sustainable competitive advantage

6. Weakness