,TESTBANK FOR Contemporary Strategy Analysis
12th Edition Robert M. Grant
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
, Contemporary Strategy Analysis 12e
TEST BANK: CHAPTER 1
The Concept of Strategy
True or False Questions
1. Strategy is a unifying theme that gives coherence and direction to the actions and decisions of an
organization.
[See p.4]
*a. T
b. F
2. The successful of both President Zelensky in leading Ukrainian resistance to the 2022 Russian invasion
and Taylor Swift’s successful career as musician and entertainer may be attributed to their use of
systematic strategic planning
[See p.4]
a. T
*b. F
3. A key component of an effective strategy is clear, consistent, long-term goals.
[See p.4]
*a. T
b. F
4. If a firm can devise a brilliant strategy, it will be successful irrespective of how effectively it is
implemented.
[See p.7]
a. T
*b. F
5. A major problem of using SWOT analyses in distinguishing strengths from weaknesses and
opportunities from threats.
[See p.9]
*a. T
b. F
6. “Strategic fit” refers to the consistency between a firm’s strategy, its external environment, and its
internal resources and capabilities.
[See pp.9-10]
*a. T
b. F
7. Contingency theory postulates that a firm’s strategy must be flexible enough to meet every possible
contingency.
[See pp.10]
a. T
*b. F
8. Strategy denotes an overall plan whereas a tactic is a scheme for a specific action.
[See p.12]
*a. T
b. F
© 2025 John Wiley & Sons, Inc. 1
,9. The principles of military strategy are rarely applicable to business situations.
[See p.12]
a. T
*b. F
10. Strategic decisions are important, involve a significant commitment of resources, and should be easily
reversible.
[See p.12]
a. T
*b. F
11. The main factor causing the transition from corporate planning to strategic management was the
increasing inability of companies to forecast economic conditions four or five years into the future.
[See p.12]
*a. T
b. F
12. Strategy is a detailed plan that programs the actions of an organization or an individual.
[See p.11]
a. T
*b. F
13. Strategic choices involve two basic questions: where and how to compete?
[See pp.17]
*a. T
b. F
14. In the large, complex firm, two main levels of strategy can be distinguished: corporate strategy and
business (or competitive) strategy.
[See p.16]
*a. T
b. F
15. 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.
[See pp.17-18]
a. T
*b. F
16. The dynamic, future-oriented dimension of a firm’s strategy is described by its
mission and vision statements and its performance targets.
[See p.18]
*a. T
b. F
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.
[See p.19]
*a. T
b. F
18. According to Henry Mintzberg, firm strategy should be formulated by top management through rational
deliberation utilizing all available data.
[See p.19]
a. T
*b. F
© 2025 John Wiley & Sons, Inc. 2
,19. 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.
[See pp.20]
a. T
*b. F
20. Applying the tools of strategy analysis to not-for-profit organizations is simplified by the fact that they
do not need to be concerned with maximizing profit.
[See pp.22-23]
a. T
*b. F
Multiple Choice Questions
1. The primary purpose of strategy is:
[See p.4]
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
2. The success of both President Zelensky as a wartime leader and Taylor Swift as a musician and
entertainer may be attributed to the fact that both:
[See pp.4-8]
a. Have used social media as their primary channel of communication
b. Have a knack for being in the right place at the right time
*c. Have combined clear goals with deep understanding of their competitive environment
d. Have sought popularity beyond their national borders
3. For both individuals and businesses, successful strategies are characterized by:
[See pp.4-8]
a. Unrelenting commitment to ambitious goals
*b. Clear goals, understanding their competitive environment, awareness of internal strengths and
weaknesses, and effective implementation
c. Meticulous planning
d. Possessing superior resources and capabilities
4. A major challenge in formulating strategies to guide our own lives is that:
[See pp.7-8]
a. It is difficult to appraise our own resources and capabilities
b. Formulating strategy is easy, implementing it requires commitment
*c. Establishing clear goals is difficult: focused goals are conducive to success in one aspect of life but
often lead to failure in other aspects of life
d. Strategies are not much use when our lives are subject to frequent changes
5. The main problem of SWOT as a framework for strategy analysis is that:
[See p.9]
*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
6. Strategic fit refers to:
[See pp.9-10]
a. The need for a firm’s strategy to be consistent with its vision, mission, and culture
© 2025 John Wiley & Sons, Inc. 3
,*b. The consistency of a firm’s strategy with its external and internal environments
c. The need for a firm’s strategy to be unique
d. The need for a firm’s strategy to fit the needs of all its stakeholders, not just shareholders
7. A conceptualization the firm as an “activity system” is a means of depicting:
[See pp.9-10]
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
8. Ryanair’s strategic position is as Europe’s lowest-cost airline may be attributed to:
[See p.10]
a. The willingness of its CEO, Michael O’Leary, to challenge conventional notions of customer and
employee satisfaction
b. Its use of secondary airports where costs are lower
c. The high operating costs of major airlines such as British Airways, Lufthansa, and Air France-KLM on
short-haul routes
*d. An integrated, consistent set of activities designed to maximize productivity and minimize operating
costs
9. The principal similarity between business and military strategy is that:
[See p.12]
a. They share the same objective: to annihilate rivals
*b. They share common concepts and principles
c. The nature of leadership is much the same whether in a military or business context
d. They are both concerned with tactical maneuvers to establish positions of advantage.
10. Military strategy and business strategy differ in that:
[See p.12]
a. There is no concept like tactics in business
b. Military strategy can only be learned through field experience; business strategy can be developed
through analytical frameworks
*c. The objective of military strategy is to defeat the enemy; most business strategies seek coexistence
rather than annihilation
d. None - there is no conceptual difference
11. Because the future cannot be known, strategy is:
[See pp.11-12]
a. Guesswork
*b. A basis for action
c. An exercise in contingency planning
d. Only useful if it is preceded by forecasting
12. Strategic decisions are those decisions that are:
[See p.12]
*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
13. The main reason for the transition from corporate planning to strategic management during the late
1970s and 1980s was:
[See p.12]
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.
© 2025 John Wiley & Sons, Inc. 4
,14. Between the 1980s and 1990s the emphasis of strategic analysis shifted from:
[See p.12]
a. Corporate strategy to business strategy
*b. Industry analysis to the analysis of resources and capabilities
c. Forecasting macro trends to understanding technological change
d. Generic strategies to strategic differentiation
15. In the late 1970s and early 1980s, Michael Porter pioneered:
[See p.12]
*a. The application of industrial organization economics to strategic management
b. Empirical research into the relationship between market share and firm profitability
c. The resource-based view of the firm
d. The application of game theory to competitive analysis
16. During the 21st century, the increasing complexity of the business environment has encouraged
companies to:
[See p.13]
a. Adopt new business models
b. Increase flexibility and risk containment
c. Embrace social and environmental responsibility
*d. All the above
17. The more turbulent a firm’s external environment, the more must its strategy:
[See p.11]
a. Be formulated top-down rather than bottom-up
*b. Be about direction rather than specific plans
c. Emphasize innovation
d. Rely upon inputs from external consultants
18. When a firm’s external environment becomes increasingly unpredictable:
[See p.11]
*a. Strategy becomes an increasingly important in providing direction for the business
b. Strategy becomes based upon intuition rather than analysis
c. Cost cutting becomes a dominant priority
d. Firm’s need to be guided by performance targets rather than by strategy
19. Strategy assists the quality of strategic decision making by:
[See pp.11-13]
a. Expanding the range of decision alternatives under consideration
b. Ensuring that decisions are concentrated in the firm’s top management team
*c. Facilitating the use of analytical tools
d. All of the above
20. Which of the following is not one of the ways in which a systematic, strategy-making process improves
an organization’s decision making:
[See pp.11-14]
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
21. A description of a company’s organizational purpose is called a:
[See p.15]
a. Vision statement
b. Values statement
*c. Mission statement
d. All the above
© 2025 John Wiley & Sons, Inc. 5
,22. When identifying a company’s strategy, its statements of a strategy found in its public documents need
to be:
[See p.15]
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
23. The primary distinction between corporate strategy and business strategy is:
[See pp.16-17]
a. Corporate strategy is the responsibility of the CEO, business strategy is formulated by the heads of
business units
*b. Corporate strategy is concerned with where the firm competes; business strategy with how it competes
in particular markets
c. Corporate strategy is concerned with establishing competitive advantage; business strategy with
strategy implementation in individual businesses
d. Corporate strategy is concerned with the long-term performance of the firm; business strategy with
resource deployment.
24. The two questions of “where” and “how” to compete define:
[See pp. 15-16]
*a. A firm’s corporate and business strategies
b. A firm’s strategic management process
c. A firm’s vision and mission
d. A firm’s values and culture
25. Business strategy defines:
[See p.16]
*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
26. “Competing with dual strategies” refers to :
[See p.18]
a. The need to reconcile cost leadership with differentiation advantage
*b. The need to compete for tomorrow while also computing for today
c. The need to keep abreast of technological change
d. Being both innovative and efficient
27. The relationship between design and emergence in strategy making is best described as:
[See pp.18-19]
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
29. The extent to which an organization’s strategy is determined by decentralized emergence rather than
by centralized design depends mainly upon:
[See p.19]
*a. How turbulent and unpredictable is the external environment of the organization
b. How the organization is structured
c. The commitment of the organization to experimentation
d. Whether the organization has a formalized process of strategic planning.
30. The main value of analytical approaches to strategy formulation is:
© 2025 John Wiley & Sons, Inc. 6
, [See pp.20-21]
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
31. The applicability of the tools and techniques of strategy analysis to not-for-profit organizations is:
[See pp.22-23]
*a. Greater for organizations that face competition than those that do not
b. Greater for organizations that charge for their services than those which do not
c. Greater for organizations that compete for funding than those which compete for customers.
d. Is severely limited by the lack of a profit motive
32. For charities and other not-for-profit organizations that supply goods and services for free, the most
important focus for strategy making tends to be:
[See p.23]
“a. Competing in the market for finance from donors and other sources
b. Competing with other organizations seeking to supply similar goods or services to the same consumers
c. Establishing internal consensus around organizational goals
d. Managing relations with government and regulatory bodies
© 2025 John Wiley & Sons, Inc. 7
, Contemporary Strategy Analysis 12e
TEST BANK: CHAPTER 2
Goals, Values and Performance
True or false questions
1. T h e entrepreneurs who create business enterprises are motivated primarily by the desire for personal
wealth.
[See p. 33]
a. T
*b. F
2. “Value” refers to the monetary worth of a product or asset.
[See p.33]
*a. T
b. F
3. The value created by a firm is the value received by the customers for that firm’s products, minus the
real cost of producing these products.
[See p.34]
* a. T
b. F
4. If a firm to pursue stakeholder interests rather than shareholder interests, it means that it maximizes
value received by all stakeholders rather than the value received by shareholders alone.
[See pp.34-35]
* a. T
b. F’
5. Implementing stakeholder value maximization is inherently more difficult than implementing shareholder
value maximization because of the difficulties of measuring total value creation.
[See p.35]
*a. T
b. F
6. In most continental European countries, company law requires boards of directors to ensure that their
companies operate primarily in the interests of shareholders, while in most English-speaking countries are
required to take account of employees, society, and the interests of the company as a whole.
{See p.35]
a. T
*b. F
7. The tendency for stakeholder interests and shareholder interests to converge means that stakeholder
value maximization and shareholder value maximization leads to identical corporate behavior.
stakeholders.
[See p.36]
a. T
*b. F
8. Firms are often constrained from pursing goals other than profit maximization by the pressure of
competition and threat of acquisition.
[See p.36]
*a. T
b. F
© 2025 John Wiley & Sons, Inc. 1
12th Edition Robert M. Grant
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
, Contemporary Strategy Analysis 12e
TEST BANK: CHAPTER 1
The Concept of Strategy
True or False Questions
1. Strategy is a unifying theme that gives coherence and direction to the actions and decisions of an
organization.
[See p.4]
*a. T
b. F
2. The successful of both President Zelensky in leading Ukrainian resistance to the 2022 Russian invasion
and Taylor Swift’s successful career as musician and entertainer may be attributed to their use of
systematic strategic planning
[See p.4]
a. T
*b. F
3. A key component of an effective strategy is clear, consistent, long-term goals.
[See p.4]
*a. T
b. F
4. If a firm can devise a brilliant strategy, it will be successful irrespective of how effectively it is
implemented.
[See p.7]
a. T
*b. F
5. A major problem of using SWOT analyses in distinguishing strengths from weaknesses and
opportunities from threats.
[See p.9]
*a. T
b. F
6. “Strategic fit” refers to the consistency between a firm’s strategy, its external environment, and its
internal resources and capabilities.
[See pp.9-10]
*a. T
b. F
7. Contingency theory postulates that a firm’s strategy must be flexible enough to meet every possible
contingency.
[See pp.10]
a. T
*b. F
8. Strategy denotes an overall plan whereas a tactic is a scheme for a specific action.
[See p.12]
*a. T
b. F
© 2025 John Wiley & Sons, Inc. 1
,9. The principles of military strategy are rarely applicable to business situations.
[See p.12]
a. T
*b. F
10. Strategic decisions are important, involve a significant commitment of resources, and should be easily
reversible.
[See p.12]
a. T
*b. F
11. The main factor causing the transition from corporate planning to strategic management was the
increasing inability of companies to forecast economic conditions four or five years into the future.
[See p.12]
*a. T
b. F
12. Strategy is a detailed plan that programs the actions of an organization or an individual.
[See p.11]
a. T
*b. F
13. Strategic choices involve two basic questions: where and how to compete?
[See pp.17]
*a. T
b. F
14. In the large, complex firm, two main levels of strategy can be distinguished: corporate strategy and
business (or competitive) strategy.
[See p.16]
*a. T
b. F
15. 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.
[See pp.17-18]
a. T
*b. F
16. The dynamic, future-oriented dimension of a firm’s strategy is described by its
mission and vision statements and its performance targets.
[See p.18]
*a. T
b. F
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.
[See p.19]
*a. T
b. F
18. According to Henry Mintzberg, firm strategy should be formulated by top management through rational
deliberation utilizing all available data.
[See p.19]
a. T
*b. F
© 2025 John Wiley & Sons, Inc. 2
,19. 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.
[See pp.20]
a. T
*b. F
20. Applying the tools of strategy analysis to not-for-profit organizations is simplified by the fact that they
do not need to be concerned with maximizing profit.
[See pp.22-23]
a. T
*b. F
Multiple Choice Questions
1. The primary purpose of strategy is:
[See p.4]
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
2. The success of both President Zelensky as a wartime leader and Taylor Swift as a musician and
entertainer may be attributed to the fact that both:
[See pp.4-8]
a. Have used social media as their primary channel of communication
b. Have a knack for being in the right place at the right time
*c. Have combined clear goals with deep understanding of their competitive environment
d. Have sought popularity beyond their national borders
3. For both individuals and businesses, successful strategies are characterized by:
[See pp.4-8]
a. Unrelenting commitment to ambitious goals
*b. Clear goals, understanding their competitive environment, awareness of internal strengths and
weaknesses, and effective implementation
c. Meticulous planning
d. Possessing superior resources and capabilities
4. A major challenge in formulating strategies to guide our own lives is that:
[See pp.7-8]
a. It is difficult to appraise our own resources and capabilities
b. Formulating strategy is easy, implementing it requires commitment
*c. Establishing clear goals is difficult: focused goals are conducive to success in one aspect of life but
often lead to failure in other aspects of life
d. Strategies are not much use when our lives are subject to frequent changes
5. The main problem of SWOT as a framework for strategy analysis is that:
[See p.9]
*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
6. Strategic fit refers to:
[See pp.9-10]
a. The need for a firm’s strategy to be consistent with its vision, mission, and culture
© 2025 John Wiley & Sons, Inc. 3
,*b. The consistency of a firm’s strategy with its external and internal environments
c. The need for a firm’s strategy to be unique
d. The need for a firm’s strategy to fit the needs of all its stakeholders, not just shareholders
7. A conceptualization the firm as an “activity system” is a means of depicting:
[See pp.9-10]
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
8. Ryanair’s strategic position is as Europe’s lowest-cost airline may be attributed to:
[See p.10]
a. The willingness of its CEO, Michael O’Leary, to challenge conventional notions of customer and
employee satisfaction
b. Its use of secondary airports where costs are lower
c. The high operating costs of major airlines such as British Airways, Lufthansa, and Air France-KLM on
short-haul routes
*d. An integrated, consistent set of activities designed to maximize productivity and minimize operating
costs
9. The principal similarity between business and military strategy is that:
[See p.12]
a. They share the same objective: to annihilate rivals
*b. They share common concepts and principles
c. The nature of leadership is much the same whether in a military or business context
d. They are both concerned with tactical maneuvers to establish positions of advantage.
10. Military strategy and business strategy differ in that:
[See p.12]
a. There is no concept like tactics in business
b. Military strategy can only be learned through field experience; business strategy can be developed
through analytical frameworks
*c. The objective of military strategy is to defeat the enemy; most business strategies seek coexistence
rather than annihilation
d. None - there is no conceptual difference
11. Because the future cannot be known, strategy is:
[See pp.11-12]
a. Guesswork
*b. A basis for action
c. An exercise in contingency planning
d. Only useful if it is preceded by forecasting
12. Strategic decisions are those decisions that are:
[See p.12]
*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
13. The main reason for the transition from corporate planning to strategic management during the late
1970s and 1980s was:
[See p.12]
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.
© 2025 John Wiley & Sons, Inc. 4
,14. Between the 1980s and 1990s the emphasis of strategic analysis shifted from:
[See p.12]
a. Corporate strategy to business strategy
*b. Industry analysis to the analysis of resources and capabilities
c. Forecasting macro trends to understanding technological change
d. Generic strategies to strategic differentiation
15. In the late 1970s and early 1980s, Michael Porter pioneered:
[See p.12]
*a. The application of industrial organization economics to strategic management
b. Empirical research into the relationship between market share and firm profitability
c. The resource-based view of the firm
d. The application of game theory to competitive analysis
16. During the 21st century, the increasing complexity of the business environment has encouraged
companies to:
[See p.13]
a. Adopt new business models
b. Increase flexibility and risk containment
c. Embrace social and environmental responsibility
*d. All the above
17. The more turbulent a firm’s external environment, the more must its strategy:
[See p.11]
a. Be formulated top-down rather than bottom-up
*b. Be about direction rather than specific plans
c. Emphasize innovation
d. Rely upon inputs from external consultants
18. When a firm’s external environment becomes increasingly unpredictable:
[See p.11]
*a. Strategy becomes an increasingly important in providing direction for the business
b. Strategy becomes based upon intuition rather than analysis
c. Cost cutting becomes a dominant priority
d. Firm’s need to be guided by performance targets rather than by strategy
19. Strategy assists the quality of strategic decision making by:
[See pp.11-13]
a. Expanding the range of decision alternatives under consideration
b. Ensuring that decisions are concentrated in the firm’s top management team
*c. Facilitating the use of analytical tools
d. All of the above
20. Which of the following is not one of the ways in which a systematic, strategy-making process improves
an organization’s decision making:
[See pp.11-14]
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
21. A description of a company’s organizational purpose is called a:
[See p.15]
a. Vision statement
b. Values statement
*c. Mission statement
d. All the above
© 2025 John Wiley & Sons, Inc. 5
,22. When identifying a company’s strategy, its statements of a strategy found in its public documents need
to be:
[See p.15]
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
23. The primary distinction between corporate strategy and business strategy is:
[See pp.16-17]
a. Corporate strategy is the responsibility of the CEO, business strategy is formulated by the heads of
business units
*b. Corporate strategy is concerned with where the firm competes; business strategy with how it competes
in particular markets
c. Corporate strategy is concerned with establishing competitive advantage; business strategy with
strategy implementation in individual businesses
d. Corporate strategy is concerned with the long-term performance of the firm; business strategy with
resource deployment.
24. The two questions of “where” and “how” to compete define:
[See pp. 15-16]
*a. A firm’s corporate and business strategies
b. A firm’s strategic management process
c. A firm’s vision and mission
d. A firm’s values and culture
25. Business strategy defines:
[See p.16]
*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
26. “Competing with dual strategies” refers to :
[See p.18]
a. The need to reconcile cost leadership with differentiation advantage
*b. The need to compete for tomorrow while also computing for today
c. The need to keep abreast of technological change
d. Being both innovative and efficient
27. The relationship between design and emergence in strategy making is best described as:
[See pp.18-19]
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
29. The extent to which an organization’s strategy is determined by decentralized emergence rather than
by centralized design depends mainly upon:
[See p.19]
*a. How turbulent and unpredictable is the external environment of the organization
b. How the organization is structured
c. The commitment of the organization to experimentation
d. Whether the organization has a formalized process of strategic planning.
30. The main value of analytical approaches to strategy formulation is:
© 2025 John Wiley & Sons, Inc. 6
, [See pp.20-21]
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
31. The applicability of the tools and techniques of strategy analysis to not-for-profit organizations is:
[See pp.22-23]
*a. Greater for organizations that face competition than those that do not
b. Greater for organizations that charge for their services than those which do not
c. Greater for organizations that compete for funding than those which compete for customers.
d. Is severely limited by the lack of a profit motive
32. For charities and other not-for-profit organizations that supply goods and services for free, the most
important focus for strategy making tends to be:
[See p.23]
“a. Competing in the market for finance from donors and other sources
b. Competing with other organizations seeking to supply similar goods or services to the same consumers
c. Establishing internal consensus around organizational goals
d. Managing relations with government and regulatory bodies
© 2025 John Wiley & Sons, Inc. 7
, Contemporary Strategy Analysis 12e
TEST BANK: CHAPTER 2
Goals, Values and Performance
True or false questions
1. T h e entrepreneurs who create business enterprises are motivated primarily by the desire for personal
wealth.
[See p. 33]
a. T
*b. F
2. “Value” refers to the monetary worth of a product or asset.
[See p.33]
*a. T
b. F
3. The value created by a firm is the value received by the customers for that firm’s products, minus the
real cost of producing these products.
[See p.34]
* a. T
b. F
4. If a firm to pursue stakeholder interests rather than shareholder interests, it means that it maximizes
value received by all stakeholders rather than the value received by shareholders alone.
[See pp.34-35]
* a. T
b. F’
5. Implementing stakeholder value maximization is inherently more difficult than implementing shareholder
value maximization because of the difficulties of measuring total value creation.
[See p.35]
*a. T
b. F
6. In most continental European countries, company law requires boards of directors to ensure that their
companies operate primarily in the interests of shareholders, while in most English-speaking countries are
required to take account of employees, society, and the interests of the company as a whole.
{See p.35]
a. T
*b. F
7. The tendency for stakeholder interests and shareholder interests to converge means that stakeholder
value maximization and shareholder value maximization leads to identical corporate behavior.
stakeholders.
[See p.36]
a. T
*b. F
8. Firms are often constrained from pursing goals other than profit maximization by the pressure of
competition and threat of acquisition.
[See p.36]
*a. T
b. F
© 2025 John Wiley & Sons, Inc. 1
