Chapter 1
The Concept of Strategy
1. Strategy today is essentially a detailed plan which every member of the organization must
follow to ensure success.
@Pages and References: Page 2
a. T
*b. F
2. Strategy is in essence a long-term plan for an organisation to achieve its long-term
objectives.
@Pages and References: Page 2
*a. T
b. F
3. For most firms, although good luck may play a part, success is more likely to be a result of
a soundly grounded and well executed strategy.
@Pages and References: Pages 10-12
*a. T
b. F
4. Sound strategy and implementation largely determine the probability and extent of the
success of a firm.
@Pages and References: Pages 10-12
*a. T
b. F
,5. A sound strategy relies on four factors: simple and consistent goals; sound understanding
of the competitive environment; objective appraisal of resources; and effective
implementation of strategic decisions.
@Pages and References: Pages 10-12
a. T
*b. F
6. Usually, business success has been proved to rely in the end on superior resources.
@Pages and References: Pages 10-12
a. T
*b. F
7. From the military arena, tactics are about actions and techniques for winning battles,
whereas strategy is about winning the war.
@Pages and References: Pages 12-16
*a. T
b. F
8. Strategic decisions are likely to significantly affect the organisation as a whole and
involve major resource commitment.
@Pages and References: Pages 12-16
*a. T
b. F
9. Business strategy has largely evolved from the theories put forward by academics.
@Pages and References: Pages 13-16
a. T
*b. F
,10. Strategy in the 1950's and 1960's was dominated by top-down corporate planning and
so-called scientific management.
@Pages and References: Pages 13-16
*a. T
b. F
11. In the 1970's and 1980's, strategy evolved to be viewed more in terms of competition,
competitive advantage, market share and profit.
@Pages and References: Pages 13-16
*a. T
b. F
12. Strategy today has been forced to evolve to cope with an increasingly fast-paced and
volatile environment, making inflexible long-term plans redundant.
@Pages and References: Pages 13-16
*a. T
b. F
13. In summary, strategy has evolved from "strategy as a detailed plan" to become "strategy
as direction" in the early 21st century.
@Pages and References: Page 17
*a. T
b. F
14. Corporate strategy is also called business strategy, or competitive strategy.
@Pages and References: Page 17
a. T
, *b. F
15. To determine a large firm's strategy, it's sufficient to read the annual corporate report.
@Pages and References: Pages 17-19
a. T
*b. F
16. Much can be learned about a firm's actual strategy by looking at where it invests most
money, and what products, services and technologies it is working on.
@Pages and References: Pages 17-19
*a. T
b. F
17. Some observers have noticed that there's only a weak link between a firm's intended or
stated strategy, and its actual or realised strategy.
@Pages and References: Pages 22-24
*a. T
b. F
18. The essential purpose of a commercial firm can be seen as creating value for customers
– and then to appropriate a portion of this value for the firm.
@Pages and References: Pages 26-28
*a. T
b. F
19. Company law throughout the developed, industrialised world obliges firms to primarily
focus on profit for shareholders.
@Pages and References: Pages 26-28
The Concept of Strategy
1. Strategy today is essentially a detailed plan which every member of the organization must
follow to ensure success.
@Pages and References: Page 2
a. T
*b. F
2. Strategy is in essence a long-term plan for an organisation to achieve its long-term
objectives.
@Pages and References: Page 2
*a. T
b. F
3. For most firms, although good luck may play a part, success is more likely to be a result of
a soundly grounded and well executed strategy.
@Pages and References: Pages 10-12
*a. T
b. F
4. Sound strategy and implementation largely determine the probability and extent of the
success of a firm.
@Pages and References: Pages 10-12
*a. T
b. F
,5. A sound strategy relies on four factors: simple and consistent goals; sound understanding
of the competitive environment; objective appraisal of resources; and effective
implementation of strategic decisions.
@Pages and References: Pages 10-12
a. T
*b. F
6. Usually, business success has been proved to rely in the end on superior resources.
@Pages and References: Pages 10-12
a. T
*b. F
7. From the military arena, tactics are about actions and techniques for winning battles,
whereas strategy is about winning the war.
@Pages and References: Pages 12-16
*a. T
b. F
8. Strategic decisions are likely to significantly affect the organisation as a whole and
involve major resource commitment.
@Pages and References: Pages 12-16
*a. T
b. F
9. Business strategy has largely evolved from the theories put forward by academics.
@Pages and References: Pages 13-16
a. T
*b. F
,10. Strategy in the 1950's and 1960's was dominated by top-down corporate planning and
so-called scientific management.
@Pages and References: Pages 13-16
*a. T
b. F
11. In the 1970's and 1980's, strategy evolved to be viewed more in terms of competition,
competitive advantage, market share and profit.
@Pages and References: Pages 13-16
*a. T
b. F
12. Strategy today has been forced to evolve to cope with an increasingly fast-paced and
volatile environment, making inflexible long-term plans redundant.
@Pages and References: Pages 13-16
*a. T
b. F
13. In summary, strategy has evolved from "strategy as a detailed plan" to become "strategy
as direction" in the early 21st century.
@Pages and References: Page 17
*a. T
b. F
14. Corporate strategy is also called business strategy, or competitive strategy.
@Pages and References: Page 17
a. T
, *b. F
15. To determine a large firm's strategy, it's sufficient to read the annual corporate report.
@Pages and References: Pages 17-19
a. T
*b. F
16. Much can be learned about a firm's actual strategy by looking at where it invests most
money, and what products, services and technologies it is working on.
@Pages and References: Pages 17-19
*a. T
b. F
17. Some observers have noticed that there's only a weak link between a firm's intended or
stated strategy, and its actual or realised strategy.
@Pages and References: Pages 22-24
*a. T
b. F
18. The essential purpose of a commercial firm can be seen as creating value for customers
– and then to appropriate a portion of this value for the firm.
@Pages and References: Pages 26-28
*a. T
b. F
19. Company law throughout the developed, industrialised world obliges firms to primarily
focus on profit for shareholders.
@Pages and References: Pages 26-28
