True or False
1. Strategy is a detailed plan that programs the actions of an organization or an individual.
[See pp.15-16]
a. T
b. F*
2. 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
3. The career success of both Queen Elizabeth II and Lady Gaga may be attributed to their willingness to engage in
systematic strategic planning
[See pp.4-5]
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.5]
a. T
b. F*
5. A key component of an effective strategy is clear, consistent, long-term goals.
[See p.5]
a. T*
b. F
6. A major problem of using SWOT analyses in distinguishing strengths from weaknesses and opportunities from
threats.
[See p.11]
a. T*
,b. F
7. “Strategic fit” related to the consistency between a firm’s strategy and, on one hand, its external environment and,
on the other, its internal resources and capabilities.
[See p.10]
a. T*
b. F
8. Contingency theory postulates that a firm’s strategy must to flexible in order to meet any possible contingency.
[See p.11]
a. T
b. F*
9. Many of the concepts and theories of business strategy have their origins in military strategy.
[See p12]
a. T*
b. F
10. Strategy denotes an overall plan whereas a tactic is a scheme for a specific action.
[See p.12]
a. T*
b. F
11. Strategic decisions are important, involve a significant commitment of resources, and should be easily reversible.
[See p.12]
a. T
b. F*
12. The main factor causing the transition from corporate planning to strategic management was the influence of
business school academics such as Michael Porter at Harvard Business School.
[See p.13]
,a. T*
b. F
13. Strategic choices involve two basic questions: where and how to compete?
[See p.18]
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.18]
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 p.21]
a. T
b. F*
16. 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.22]
a. T*
b. F
17. According to Henry Mintzberg, firm strategy should be formulated by top management through rational
deliberation utilizing all available data.
[See p.22]
a. T
b. F*
, 18. The dynamic, future-oriented dimension of a firm’s strategy is described by its mission and vision statements
and its performance targets.
[See p.21]
a. T*
b. F
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 p.23]
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 p.27]
a. T
b. F*
1. Value refers to the estimated monetary worth of a product or asset
@ Pages and References: p35
*a. T
b. F
2. A firm’s Value Added is the difference between the value of its outputs and the total costs of the inputs
purchased by the firm to provide these outputs
@ Pages and References: p36
*a. T
b. F
3. One type of value creating activity is commerce, which transforms raw material and intermediate
products into final products
1. Strategy is a detailed plan that programs the actions of an organization or an individual.
[See pp.15-16]
a. T
b. F*
2. 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
3. The career success of both Queen Elizabeth II and Lady Gaga may be attributed to their willingness to engage in
systematic strategic planning
[See pp.4-5]
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.5]
a. T
b. F*
5. A key component of an effective strategy is clear, consistent, long-term goals.
[See p.5]
a. T*
b. F
6. A major problem of using SWOT analyses in distinguishing strengths from weaknesses and opportunities from
threats.
[See p.11]
a. T*
,b. F
7. “Strategic fit” related to the consistency between a firm’s strategy and, on one hand, its external environment and,
on the other, its internal resources and capabilities.
[See p.10]
a. T*
b. F
8. Contingency theory postulates that a firm’s strategy must to flexible in order to meet any possible contingency.
[See p.11]
a. T
b. F*
9. Many of the concepts and theories of business strategy have their origins in military strategy.
[See p12]
a. T*
b. F
10. Strategy denotes an overall plan whereas a tactic is a scheme for a specific action.
[See p.12]
a. T*
b. F
11. Strategic decisions are important, involve a significant commitment of resources, and should be easily reversible.
[See p.12]
a. T
b. F*
12. The main factor causing the transition from corporate planning to strategic management was the influence of
business school academics such as Michael Porter at Harvard Business School.
[See p.13]
,a. T*
b. F
13. Strategic choices involve two basic questions: where and how to compete?
[See p.18]
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.18]
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 p.21]
a. T
b. F*
16. 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.22]
a. T*
b. F
17. According to Henry Mintzberg, firm strategy should be formulated by top management through rational
deliberation utilizing all available data.
[See p.22]
a. T
b. F*
, 18. The dynamic, future-oriented dimension of a firm’s strategy is described by its mission and vision statements
and its performance targets.
[See p.21]
a. T*
b. F
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 p.23]
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 p.27]
a. T
b. F*
1. Value refers to the estimated monetary worth of a product or asset
@ Pages and References: p35
*a. T
b. F
2. A firm’s Value Added is the difference between the value of its outputs and the total costs of the inputs
purchased by the firm to provide these outputs
@ Pages and References: p36
*a. T
b. F
3. One type of value creating activity is commerce, which transforms raw material and intermediate
products into final products
