chapter01 - CHAPTER 1 The Nature of Strategic Management...

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CHAPTER 1 The Nature of Strategic Management True/False Introduction 1. The underpinnings of strategic management hinge on managers gaining an understanding of competitors, markets, prices, suppliers, distributors, governments, creditors, shareholders and customers worldwide. Ans: T Page: 4 2. The majority of Americans do not think the Internet will change society more than the telephone and television combined, although it has revolutionized the way of doing business. Ans: F Page: 4 3. Worldwide ecological destruction and deterioration is a strategic issue that needs immediate and substantive attention by all businesses and managers, according to Mark Starik. Ans: T Page: 4 What Is Strategic Management? 4. To exploit and create new and different opportunities for tomorrow are the purposes of strategic management. Ans: T Page: 5 5. Even though useful, strategic planning has been cast aside by corporate America since the early 1990s. Ans: F Page: 5 6. Identifying a firm’s internal opportunities and weaknesses is part of strategy formulation. Ans: F Page: 5 208
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7. Resource allocation is included in strategy-formulation activities. Ans: T Page: 5 8. The terms strategic management and strategy implementation are synonymous. Ans: F Page: 5 9. The first essential strategy-formulation activity is establishing annual objectives. Ans: F Page: 5 10. The focus of strategic management is on solving problems that an organization encounters. Ans: F Page: 5 11. Decision making is the final activity performed during strategy formulation. Ans: T Page: 5-6 12. Middle management sets the moral tone of an organization, which is then filtered downward to lower management for implementation. Ans: F Page: 6 13. Strategy evaluation is the action stage of the strategic-management process. Ans: F Page: 6 14. Strategy evaluation involves taking corrective actions. Ans: T Page: 6 15. Strategy implementation consists of three basic activities: (1) establish objectives, (2) devise policies, and (3) measure performance. Ans: F Page: 6 16. Strategy implementation is often considered to be the most difficult stage in the strategic-management process because it requires personal discipline, commitment and sacrifice. Ans: T Page: 6 209
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17. Strategy-implementation activities impact all employees and managers in an organization, whereas strategy formulation may not directly involve certain department managers. Ans: F Page: 6 18. Strategy formulation, implementation and evaluation activities occur at three hierarchical levels in a large diversified organization: corporate, divisional and functional. Ans: T Page: 6 19. According to recent research, the strategic management process can benefit only large firms. Ans: F
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This note was uploaded on 09/08/2009 for the course MBA 506 taught by Professor Dr.kuruppu during the Spring '09 term at American International.

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chapter01 - CHAPTER 1 The Nature of Strategic Management...

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