Test Questions & Answers Chapter 1 What Is Strategy? - Strategic Mgmt 4e | Updated Test Bank Henry by Anthony E. Henry. DOCX document preview.
Chapter 1: What is Strategy?
Test Bank
Type: fill-in-blank
Title: Chapter 01 Question 01
1) There is agreement that the role of strategy is to achieve _________ for an organization.
Type: fill-in-blank
Title: Chapter 01 Question 02
2) To be sustainable, competitive advantage must be difficult for competitors to _________________.
Type: multiple choice question
Title: Chapter 01 Question 03
3) Strategy involves matching an organization’s resources to the environment. It also involves an understanding of the different relationships in which the organization is involved. These relationships are made up of:
a. Collaborators
b. Stakeholders
c. Competitors
d. Shareholders
Type: true-false
Title: Chapter 01 Question 04
4) Successful strategy is based on doing well what your competitors cannot do or cannot easily do.
a. True
b. False
Type: multiple response question
Title: Chapter 01 Question 05
5) Factors in the general or macro environment include: Please select all that apply.
Type: multiple choice question
Title: Chapter 01 Question 06
6) The strategic management process involves three main phases. These are:
a. Strategy analysis, strategy formulation, strategy review
b. Strategy formulation, strategy implementation, strategy review
c. Strategy analysis, strategy formulation, strategy implementation
d. Strategy analysis, strategy implementation, strategy review
Type: true-false
Title: Chapter 01 Question 07
7) Strategy formulation is a conscious process that is based on the results of the strategy analysis.
a. True
b. False
Type: fill-in-blank
Title: Chapter 01 Question 08
8) When we ask the question ‘why does the organization exist’, we are trying to understand the _____________ of the organization.
Type: multiple response question
Title: Chapter 01 Question 09
9) Effective implementation of strategies requires:
Type: multiple choice question
Title: Chapter 01 Question 10
10) A vision statement will usually express:
a. Why the organization exists
b. The aspirations of the organization
c. What the organization believes
d. The values and purpose of the organization
Type: fill-in-blank
Title: Chapter 01 Question 11
11) An organization’s _______ seeks to answer the question why an organization exists or “What business are we in?” as Peter Drucker argued.
Type: fill-in-blank
Title: Chapter 01 Question 12
12) Jim Collins and Jerry Porras argue that the __________ of an organization do not change as competitive condition changes but remain largely unchanged.
Type: true-false
Title: Chapter 01 Question 13
13) Mission could be expressed as employees’ emotional commitment towards the organization.
a. True
b. False
Type: fill-in-blank
Title: Chapter 01 Question 14
14) An organization’s purpose can be defined as the reason an organization exists beyond ________________.
Type: multiple response question
Title: Chapter 01 Question 15
15) The ‘theory of the business’ (Drucker 1995) consists of: Please select all that apply.
Type: multiple response question
Type: multiple choice question
Title: Chapter 01 Question 17
17) A decision regarding whether to acquire a business in an unrelated industry would be the concern of:
a. Corporate level strategy
b. Business level strategy
c. Functional level strategy
d. Parent level strategy
Type: fill-in-blank
Title: Chapter 01 Question 18
18) Business level strategy is sometimes known as _________________ strategy.
Type: multiple response question
Title: Chapter 01 Question 19
19) Strategy in the 1960s was characterized by: Please select all that apply.
Type: true-false
Title: Chapter 01 Question 20
20) The resource-based view of the firm considers competitive advantage to come from appropriate positioning in a particular industry.
a. True
b. False
Type: multiple choice question
Title: Chapter 01 Question 21
21) The work of Andrews (1971) and Ansoff (1965) is associated with which approach?
a. The learning school
b. The positioning school
c. The resource-based view
d. The design school
Type: multiple response question
Title: Chapter 01 Question 22
22) Dynamic capability approach increasingly gains its popularity in the strategic management field: Please select all that apply.
Type: true-false
Title: Chapter 01 Question 23
23) According to the chaos and complexity theory, over time, linear rational approaches to decision-making may be insufficient to meet the context in which organizations operate.
a. False
b. True
Type: multiple response question
Title: Chapter 01 Question 24
24) The oil company Shell developed scenario planning. This allows the company to formulate its strategic alternatives. Which of the below applies to this approach of strategy formulation? Please select all that apply
Type: multiple choice question
Title: Chapter 01 Question 25
25) The selection of ‘generic’ strategies is most associated with which approach to strategy?
a. The emergent approach
b. The learning school
c. The resource-based view
d. The design school
Type: multiple response question
Title: Chapter 01 Question 26
26) An intended strategy can be: Please select all that apply.
Type: fill-in-blank
Title: Chapter 01 Question 27
27) Mintzberg (1996) stated ‘We all know we shall get nowhere without emergent learning alongside ___________________’.
Type: fill-in-blank
Title: Chapter 01 Question 28
28) A shareholder is an example of a ___________________ that could be internal and external.
Type: multiple response question
Title: Chapter 01 Question 29
29) In the framework of strategic management, values determine: Please select all that apply
Type: multiple response question
Type: true-false
Title: Chapter 01 Question 31
31) In general, a firm can substitute its business strategy with a business model.
a. True
b. False
Business strategy can be defined as the course of action and decisions, which assist the firm in achieving specific business objectives and compete in a given market. Thus, business model and business strategy are complementing each other.