This OpenStax ancillary resource is © Rice University under a CC BY 4.0 International license; it may be reproduced or modified but must be
attributed to OpenStax, Rice University and any changes must be noted.
Chapter 9 THE STRATEGIC MANAGEMENT PROCESS: ACHIEVING AND SUSTAINING COMPETITIVE
ADVANTAGE
TRUE-FALSE QUESTIONS
Title: ANSWER: T REFERENCE: Strategic Management LEARNING OUTCOME: 1
1. The strategic management process is the set of activities that firm managers undertake in order to try to
put their firms in the best possible position to compete successfully in the marketplace.
a. True
b. False
Title: ANSWER: F REFERENCE: Strategic Management LEARNING OUTCOME: 1
2. The top managers in organizations prefer to deal with the steps of strategic management one at a time
to be able to provide the necessary attention to details.
a. True
b. False
Title: ANSWER: F REFERENCE: Firm Vision and Mission LEARNING OUTCOME: 2
3. The vision statement describes the strategy a firm will use to follow its vision along with a description of
why do they exists.
a. True
b. False
Title: ANSWER: T REFERENCE: Firm Vision and Mission LEARNING OUTCOME: 2
4. The mission statement takes the why of a vision statement and gives a broad description of how the firm
will try to make its vision a reality.
a. True
b. False
Title: ANSWER: F REFERENCE: Firm Vision and Mission LEARNING OUTCOME: 2
5. Strategy and goals statements together are the first building blocks in defining why a firm exists and in
developing a plan to accomplish what the firm wants to accomplish.
a. True
b. False
Title: ANSWER: F REFERENCE: The Role of Strategic Analysis in Formulating a Strategy LEARNING
OUTCOME: 3
6. In PESTEL analysis, a key question asked is are new firms coming into this market.
a. True
b. False
Title: ANSWER: T REFERENCE: The Role of Strategic Analysis in Formulating a Strategy LEARNING
OUTCOME: 3
7. PESTEL, Porter’s Five Forces, and Resources and Capabilities are three important strategic analysis tools
managers can utilize in formulating the strategies.
a. True
b. False
, Principles of Management
Title: ANSWER: F REFERENCE: Strategic Objectives and Levels of Strategy LEARNING OUTCOME: 4
8. Strategic objectives usually identify why a firm exists.
a. True
b. False
Title: ANSWER: T REFERENCE: Strategic Objectives and Levels of Strategy LEARNING OUTCOME: 4
9. A business-level strategy is the framework a firm uses to organize its activities, and it is developed by the
firm’s top managers.
a. True
b. False
Title: ANSWER: F REFERENCE: Strategic Objectives and Levels of Strategy LEARNING OUTCOME: 4
10. Business strategy is the broadest level of strategy, and is concerned with decisions about growing,
maintaining, or shrinking very large companies.
a. True
b. False
Title: ANSWER: T REFERENCE: Strategic Objectives and Levels of Strategy LEARNING OUTCOME: 4
11. The BCG Matrix has recommendations for businesses in each quadrant—for example, a business in the
dog quadrant should be sold or closed. Cash cows provide income to the corporation, and stars provide
growth.
a. True
b. False
Title: ANSWER: F REFERENCE: Strategic Objectives and Levels of Strategy LEARNING OUTCOME: 4
12. A stability strategy involves developing plans to increase the size of the firm in terms of revenue,
market share, or geographic reach.
a. True
b. False
Title: ANSWER: T REFERENCE: Planning Firm Actions to Implement Strategies LEARNING OUTCOME: 5
13. A plan includes decisions about when and how actions should be accomplished and what resources will
be required to complete the actions.
a. True
b. False
Title: ANSWER: F REFERENCE: Planning Firm Actions to Implement Strategies LEARNING OUTCOME: 5
14. The SMART framework can be applied to business or personal goals. A good goal should be specific,
measurable, applicable, rewarded, and time-bound.
a. True
b. False
Title: ANSWER: T REFERENCE: Measuring and Evaluating Strategic Performance LEARNING OUTCOME: 6
15. The strategy cycle is a process managers use to achieve an advantage in the marketplace, and the
measurement and evaluation stage tells managers whether the advantage is being achieved.
a. True
b. False
April 30, 2019 2
attributed to OpenStax, Rice University and any changes must be noted.
Chapter 9 THE STRATEGIC MANAGEMENT PROCESS: ACHIEVING AND SUSTAINING COMPETITIVE
ADVANTAGE
TRUE-FALSE QUESTIONS
Title: ANSWER: T REFERENCE: Strategic Management LEARNING OUTCOME: 1
1. The strategic management process is the set of activities that firm managers undertake in order to try to
put their firms in the best possible position to compete successfully in the marketplace.
a. True
b. False
Title: ANSWER: F REFERENCE: Strategic Management LEARNING OUTCOME: 1
2. The top managers in organizations prefer to deal with the steps of strategic management one at a time
to be able to provide the necessary attention to details.
a. True
b. False
Title: ANSWER: F REFERENCE: Firm Vision and Mission LEARNING OUTCOME: 2
3. The vision statement describes the strategy a firm will use to follow its vision along with a description of
why do they exists.
a. True
b. False
Title: ANSWER: T REFERENCE: Firm Vision and Mission LEARNING OUTCOME: 2
4. The mission statement takes the why of a vision statement and gives a broad description of how the firm
will try to make its vision a reality.
a. True
b. False
Title: ANSWER: F REFERENCE: Firm Vision and Mission LEARNING OUTCOME: 2
5. Strategy and goals statements together are the first building blocks in defining why a firm exists and in
developing a plan to accomplish what the firm wants to accomplish.
a. True
b. False
Title: ANSWER: F REFERENCE: The Role of Strategic Analysis in Formulating a Strategy LEARNING
OUTCOME: 3
6. In PESTEL analysis, a key question asked is are new firms coming into this market.
a. True
b. False
Title: ANSWER: T REFERENCE: The Role of Strategic Analysis in Formulating a Strategy LEARNING
OUTCOME: 3
7. PESTEL, Porter’s Five Forces, and Resources and Capabilities are three important strategic analysis tools
managers can utilize in formulating the strategies.
a. True
b. False
, Principles of Management
Title: ANSWER: F REFERENCE: Strategic Objectives and Levels of Strategy LEARNING OUTCOME: 4
8. Strategic objectives usually identify why a firm exists.
a. True
b. False
Title: ANSWER: T REFERENCE: Strategic Objectives and Levels of Strategy LEARNING OUTCOME: 4
9. A business-level strategy is the framework a firm uses to organize its activities, and it is developed by the
firm’s top managers.
a. True
b. False
Title: ANSWER: F REFERENCE: Strategic Objectives and Levels of Strategy LEARNING OUTCOME: 4
10. Business strategy is the broadest level of strategy, and is concerned with decisions about growing,
maintaining, or shrinking very large companies.
a. True
b. False
Title: ANSWER: T REFERENCE: Strategic Objectives and Levels of Strategy LEARNING OUTCOME: 4
11. The BCG Matrix has recommendations for businesses in each quadrant—for example, a business in the
dog quadrant should be sold or closed. Cash cows provide income to the corporation, and stars provide
growth.
a. True
b. False
Title: ANSWER: F REFERENCE: Strategic Objectives and Levels of Strategy LEARNING OUTCOME: 4
12. A stability strategy involves developing plans to increase the size of the firm in terms of revenue,
market share, or geographic reach.
a. True
b. False
Title: ANSWER: T REFERENCE: Planning Firm Actions to Implement Strategies LEARNING OUTCOME: 5
13. A plan includes decisions about when and how actions should be accomplished and what resources will
be required to complete the actions.
a. True
b. False
Title: ANSWER: F REFERENCE: Planning Firm Actions to Implement Strategies LEARNING OUTCOME: 5
14. The SMART framework can be applied to business or personal goals. A good goal should be specific,
measurable, applicable, rewarded, and time-bound.
a. True
b. False
Title: ANSWER: T REFERENCE: Measuring and Evaluating Strategic Performance LEARNING OUTCOME: 6
15. The strategy cycle is a process managers use to achieve an advantage in the marketplace, and the
measurement and evaluation stage tells managers whether the advantage is being achieved.
a. True
b. False
April 30, 2019 2
