MBA 705 Exam 1 Book Questions (Ch. 1-3) #1 Questions with
Correct Answers
Are the five steps in the strategic management process necessary to be
performed sequentially? Why or why not? - ✔✔No, the steps don't need to be
performed sequentially. Strategy formulation is an iterative process, and steps
may need to be revisited as new information becomes available.
What is the difference between an intended strategy and a realized strategy?
Why is this distinction important? - ✔✔The intended strategy is the original plan
formulated by management, while the realized strategy is what the company
actually ends up implementing. The distinction is important because realized
strategies may differ from the original due to external or internal changes.
How have outside perspectives influenced the development of the strategic
management field? - ✔✔Outside perspectives, including contributions from
economics, psychology, sociology, and management studies, have shaped how
strategic management is viewed, particularly in terms of decision-making and
competitive advantage.
Does the CEO alone make the strategic decisions for an organization? Explain. -
✔✔No, strategic decisions are made in collaboration with top management
teams. While the CEO plays a critical role, decisions typically involve input from
various functional areas and sometimes from the board of directors.
T/F: A strategy seeks to develop and sustain competitive advantage. - ✔✔True
T/F: Strategic management refers to formulating successful strategies for an
organization. - ✔✔True
, T/F: Each step in the strategic management process is independent so that
changes in one step will not substantially affect other steps. - ✔✔False. Changes
in one step can impact the others, as the process is often iterative and
interconnected.
T/F: The intended strategy and the realized strategy can never be the same. -
✔✔False. While they often differ, the intended strategy can align with the
realized strategy if everything goes as planned.
T/F: Whereas IO theory emphasizes the influence of industry factors of firm
performance, resource-based theory emphasizes the role of firm factors. -
✔✔True
T/F: Strategic decisions are made solely by and are ultimately the responsibility of
the CEO alone. - ✔✔False. Strategic decisions involve input from multiple levels of
management, not just the CEO.
Strategies are formulated in the strategic management stage that occurs
immediately after__________.
A. the assessment of internal strengths and weaknesses
B. implementation of the strategy
C. control of the strategy
D. none of the above - ✔✔A. the assessment of internal strengths and
weaknesses
The strategy originally planned by top management is called__________
A. grand strategy
Correct Answers
Are the five steps in the strategic management process necessary to be
performed sequentially? Why or why not? - ✔✔No, the steps don't need to be
performed sequentially. Strategy formulation is an iterative process, and steps
may need to be revisited as new information becomes available.
What is the difference between an intended strategy and a realized strategy?
Why is this distinction important? - ✔✔The intended strategy is the original plan
formulated by management, while the realized strategy is what the company
actually ends up implementing. The distinction is important because realized
strategies may differ from the original due to external or internal changes.
How have outside perspectives influenced the development of the strategic
management field? - ✔✔Outside perspectives, including contributions from
economics, psychology, sociology, and management studies, have shaped how
strategic management is viewed, particularly in terms of decision-making and
competitive advantage.
Does the CEO alone make the strategic decisions for an organization? Explain. -
✔✔No, strategic decisions are made in collaboration with top management
teams. While the CEO plays a critical role, decisions typically involve input from
various functional areas and sometimes from the board of directors.
T/F: A strategy seeks to develop and sustain competitive advantage. - ✔✔True
T/F: Strategic management refers to formulating successful strategies for an
organization. - ✔✔True
, T/F: Each step in the strategic management process is independent so that
changes in one step will not substantially affect other steps. - ✔✔False. Changes
in one step can impact the others, as the process is often iterative and
interconnected.
T/F: The intended strategy and the realized strategy can never be the same. -
✔✔False. While they often differ, the intended strategy can align with the
realized strategy if everything goes as planned.
T/F: Whereas IO theory emphasizes the influence of industry factors of firm
performance, resource-based theory emphasizes the role of firm factors. -
✔✔True
T/F: Strategic decisions are made solely by and are ultimately the responsibility of
the CEO alone. - ✔✔False. Strategic decisions involve input from multiple levels of
management, not just the CEO.
Strategies are formulated in the strategic management stage that occurs
immediately after__________.
A. the assessment of internal strengths and weaknesses
B. implementation of the strategy
C. control of the strategy
D. none of the above - ✔✔A. the assessment of internal strengths and
weaknesses
The strategy originally planned by top management is called__________
A. grand strategy
