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Chapter 06 - Strategic Management: How Star Managers Realize a Grand Design Chapter 06 Strategic Management: How Star Managers Realize a Grand Design True / False Questions 1. Managers must be willing to make large, painful decisions to suddenly alter strategy. True False 2. In a world of rapid and discontinuous change, the ability to please nonmanagerial employees has been called the golden trait among managers. True False 3. A business plan is a document with the purpose of outlining a proposed firm's profit and loss statements for its first operating cycle. True False 4. Formal business plans can be dangerous to the survival of new businesses; many who try them fail because of the resources required to write and agree upon the plan. True False 5. A strategy is a large-scale action plan that sets direction for an organization. True False 6. Strategic management is the process of involving select managers from the executive leadership of the organization in the formulation and implementation of strategies and strategic goals. True False 6-1 Chapter 06 - Strategic Management: How Star Managers Realize a Grand Design 7. An organization should adopt strategic management and strategic planning to encourage new ideas. True False 8. Bad planning is usually a result of top managers' inability to gather enough information. True False 9. Planning is usually a straightjacket for new ideas, since it effectively blocks peripheral vision in favor of a predetermined course. True False 10. A sustainable competitive advantage is the ability of an organization to produce goods or services more effectively than its competitors and outperform them. True False 11. Ford's Sync in-dash communications platform, despite its high level of technology, has been unable to provide the company with a distinct competitive advantage. True False 12. Harvard Business School professor Michael Porter is a leading authority on competitive strategy. True False 13. Strategic conservation attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company. True False 6-2 Chapter 06 - Strategic Management: How Star Managers Realize a Grand Design 14. Strategic positioning can be achieved by performing similar activities to rivals, but in different ways. True False 15. A strategic position may be based on serving the few needs of a few customers. True False 16. Good strategy allows a company to be everything to everyone. True False 17. Strategic planning is appropriate for large companies, but does not help the performance of small companies. True False 18. Management of a small company in an industry that is not very competitive should not engage in strategic planning because the small gains in performance may not be worth the effort. ... View Full Document

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