Question 1

The relationship between design and emergence in strategy making is best described as:

Accepted Answer

A)  An interactive process between strategic planners and line managers
B)  A tension between the forces of centralization and decentralization
C)  A process in which intended strategy is adapted as it is implemented
D)  An example of the agency problem in which the interests of salaried managers displace the interests of owners

Question 2

A conceptualization the firm as an "activity system" is a means of depicting:

Accepted Answer

A)  How a firm's strategy should be implemented
B)  The extent to which a firm's resources and capabilities are aligned with its strategic goals
C)  The extent to which a firm's strategic goals are aligned with its industry environment
D)  The components of a firm's strategy and consistency with which they fit together

Question 3

Strategy is a detailed plan that programs the actions of an organization or an individual.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not one of the ways in which a systematic, strategy-making process improves an organization's decision making:

Accepted Answer

A)  Reducing the number of choices being considered
B)  Integrating and pooling the knowledge of different members of the organization
C)  Facilitating the use of analytic tools
D)  Providing algorithms that generate optimal solutions to strategic problems

Question 5

Strategic decisions are those decisions that are:

Accepted Answer

A)  Important, commit resources, and are irreversible
B)  Long term
C)  Are confined to the senior executives of an organization
D)  Concerned with establishing competitive advantage

Question 6

The primary purpose of strategy is:

Accepted Answer

A)  To maximize shareholder value
B)  To achieve success
C)  To ensure that all stakeholders benefit from the value created by the firm
D)  To be a responsible corporate citizen B

Question 7

Between the 1980sand 1990s the emphasis of strategic analysis shifted from:

Accepted Answer

A)  Corporate strategy to business strategy
B)  Industry analysis to resource and capability analysis
C)  Forecasting macro trends to understanding technological change
D)  Generic strategies to strategic differentiation

Question 8

When describing the strategy of a firm, it is best to ignore the current positioning of the firm in order to concentrate upon the direction in which the firm will develop in the future.

Accepted Answer

A) True 
 B)False  False

Question 9

During the 21st century, the complexity of the challenges posed by disruptive, digital technologies and accelerating rates of change have encouraged companies to:

Accepted Answer

A)  Shift their strategic focus towards the growth markets of Asia, Africa, and Latin America.
B)  Rejecting shareholder value maximization in favor of maximizing stakeholder interests
C)  Depend increasingly upon strategic alliances and other forms of collaboration
D)  Prefer mergers and acquisitions to organic growth.

Question 10

The principal temporal challenge of that strategic management faces is:

Accepted Answer

A)  The need to match internal organizational change with the rate of change in the external environment
B)  The need to compete for today while preparing for the future
C)  The need to keep abreast of technological change
D)  Increasing responsiveness and innovation

Question 11

Business strategy defines:

Accepted Answer

A)  How a firm competes in a particular industry or market
B)  Which industries or markets a firm chooses to compete in
C)  Both of the above
D)  Neither of the above

Question 12

When identifying a company's strategy, its statements of a strategy found in its public documents need to be:

Accepted Answer

A)  Treated with skepticism
B)  Checked against the company's decisions and actions
C)  Interpreted using modern techniques of textual analysis
D)  Checked against its statements of vision and mission

Question 13

The main value of analytical approaches to strategy formulation is:

Accepted Answer

A)  To identify the optimal strategy that a firm should adopt
B)  To provide understanding of strategic issues
C)  To substitute for manager's intuition and creativity
D)  To ensure that strategic decision making is assigned to the capable people within the organization

Question 14

Game theory is a useful for studying competitive behavior in politics, military campaigns and international relations, but it cannot be used to analyze business strategies.

Accepted Answer

A) True 
 B)False

Question 15

The principles of military strategy are rarely applicable to business situations.

Accepted Answer

A) True 
 B)False

Question 16

"Strategic fit" refers to the consistency between a firm's strategy and, on one hand, its external environment and, on the other, its internal resources and capabilities.

Accepted Answer

A) True 
 B)False

Question 17

The reason that a firm's realized strategy diverges from its intended strategy is because strategy making is, to a great extent, an emergent process.

Accepted Answer

A) True 
 B)False  True

Question 18

The balance between intended and emergent strategy depends primarily upon the stability and predictability of the organization's business environment.The more stable and predictable the environment, the greater the importance of emergent strategy.

Accepted Answer

A) True 
 B)False

Question 19

The main problem of SWOT as a framework for strategy analysis is that:

Accepted Answer

A)  Distinguishing opportunities from threats and strengths from weaknesses is often difficult
B)  It has now been superseded by more sophisticated analytical frameworks
C)  It is focused on strategy formulation and fails to take account of strategy implementation
D)  It is so widely used that it no longer has any novelty.

Question 20

The main reason for the transition from corporate planning to strategic management during the late 1970s and 1980s was:

Accepted Answer

A)  The increasing costs of corporate planning departments
B)  Disappointing outcomes of corporate diversification
C)  A more turbulent business environment that was increasingly difficult to predict
D)  Growing disillusionment with central planning.

Exam 1: The Concept of Strategy

The relationship between design and emergence in strategy making is best described as:

Correct AnswerverifiedShow Answer

A conceptualization the firm as an "activity system" is a means of depicting:

Correct AnswerverifiedShow Answer

Strategy is a detailed plan that programs the actions of an organization or an individual.

Correct AnswerverifiedShow Answer

Which of the following is not one of the ways in which a systematic, strategy-making process improves an organization's decision making:

Correct AnswerverifiedShow Answer

Strategic decisions are those decisions that are:

Correct AnswerverifiedShow Answer

The primary purpose of strategy is:

Correct AnswerverifiedB

Between the 1980sand 1990s the emphasis of strategic analysis shifted from:

Correct AnswerverifiedShow Answer

When describing the strategy of a firm, it is best to ignore the current positioning of the firm in order to concentrate upon the direction in which the firm will develop in the future.

Correct AnswerverifiedFalse

During the 21st century, the complexity of the challenges posed by disruptive, digital technologies and accelerating rates of change have encouraged companies to:

Correct AnswerverifiedShow Answer

The principal temporal challenge of that strategic management faces is:

Correct AnswerverifiedShow Answer

Business strategy defines:

Correct AnswerverifiedShow Answer

When identifying a company's strategy, its statements of a strategy found in its public documents need to be:

Correct AnswerverifiedShow Answer

The main value of analytical approaches to strategy formulation is:

Correct AnswerverifiedShow Answer

Game theory is a useful for studying competitive behavior in politics, military campaigns and international relations, but it cannot be used to analyze business strategies.

Correct AnswerverifiedShow Answer

The principles of military strategy are rarely applicable to business situations.

Correct AnswerverifiedShow Answer

"Strategic fit" refers to the consistency between a firm's strategy and, on one hand, its external environment and, on the other, its internal resources and capabilities.

Correct AnswerverifiedShow Answer

The reason that a firm's realized strategy diverges from its intended strategy is because strategy making is, to a great extent, an emergent process.

Correct AnswerverifiedTrue

The balance between intended and emergent strategy depends primarily upon the stability and predictability of the organization's business environment.The more stable and predictable the environment, the greater the importance of emergent strategy.

Correct AnswerverifiedShow Answer

The main problem of SWOT as a framework for strategy analysis is that:

Correct AnswerverifiedShow Answer

The main reason for the transition from corporate planning to strategic management during the late 1970s and 1980s was:

Correct AnswerverifiedShow Answer

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B

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False

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True

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