Chapter 1: The Nature of Strategic Management

Multiple Choice
Top of Form

1. The three stages of strategic management are

strategy formulation, strategy implementation, and strategy execution.

strategy formulation, strategy execution, and strategy assessment.

strategy formulation, strategy implementation, and strategy evaluation.

stratify assessment, strategy execution, and strategy evaluation.

2. Job titles that refer to strategists include which of the following?

External audit

Owner, entrepreneur, executive director, and accountant

Chief executive officer, salesman, dean, and lawyer

Owner, dean, president, and executive director

3. Relative deficiency or superiority is important information in performing which

activity?

External audit

Allocating resources
 Internal audit

Evaluating strategies

4. How often should strategic-management activities be performed?

Annually

Quarterly

Monthly

Continuously

5. Who is most responsible for developing, communicating, and enforcing the code of
business ethics for a firm?

Strategists

Line managers

Staff managers

All managers

6. Strategy-implementation activities include

conducting research.
 measuring performance.

preparing a TOWS matrix.

establishing annual objectives.

7. In a large organization, strategic management activities occur at what level(s)?

Corporate and divisional only

Divisional

Strategic business unit only

Functional, divisional, and corporate

8. Conducting research, integrating intuition with analysis, and making decisions are all
__________ activities.

strategy-formulation

strategy-implementation

long-range planning

short-range planning

9. Which of these questions is addressed by a mission statement?

 What do we want to become?

What is our business?

How many employees must we have?

Who do we want to serve?

10. Internal strengths and weaknesses are usually

the major cause of organizational demise or success.

controllable activities within an organization.

most important for CEOs and the board of directors.

not as important as external opportunities and threats.

11. An organization's strengths and weaknesses are determined relative to

its strategic business units.

government

competitors

external opportunities and threats.

12. __________ are the means by which long-term objectives will be achieved
 Mission statements

Strategies

Vision statements

Long-term goals

13. Strategic management allows an organization to be more

complacent

proactive

authoritarian

reactive

14. __________ may be the most important benefit of strategic management.

Profit

Commitment

Understanding

Order
15. __________ is one of the reasons for poor or no strategic planning in organizations.

Prior good experience

Fear of success

Low expense

Self-interest
Bottom of Form