Strategic Management & Business Policy, 13e (Wheelen/Hunger)
Chapter 1 Basic Concepts in Strategic Management
1) Strategic management is one decision that determines the short-term performance of a
corporation.
Answer: FALSE
Diff: 1 Page Ref: 5
Topic: The Study of Strategic Management
2) In the externally oriented planning phase, plans are developed by heavily involving the
input of managers from lower levels.
Answer: FALSE
Diff: 2 Page Ref: 5
Topic: The Study of Strategic Management
3) General Electric led the transition from strategic planning to strategic management
during the 1980s.
Answer: TRUE
Diff: 1 Page Ref: 6
Topic: The Study of Strategic Management
4) One of the benefits of strategic management is a clearer sense of vision for the firm.
Answer: TRUE
Diff: 2 Page Ref: 6
Topic: The Study of Strategic Management
,5) To be effective, strategic management must be a formal process.
Answer: FALSE
Diff: 3 Page Ref: 7
Topic: The Study of Strategic Management
6) Globalization is the internationalization of markets and corporations.
Answer: TRUE
Diff: 1 Page Ref: 8
Topic: Globalization and Environmental Sustainability: Challenges to Strategic
Management
7) As more industries become global, strategic management is becoming less important
in positioning a company for long-term competitive advantage.
Answer: FALSE
Diff: 2 Page Ref: 8
Topic: Globalization and Environmental Sustainability: Challenges to Strategic
Management
,8) Environmental sustainability reflects business practices to reduce a firm's impact on
the physical environment.
Answer: TRUE
Diff: 2 Page Ref: 8
Topic: Globalization and Environmental Sustainability: Challenges to Strategic
Management
AACSB: Ethical Reasoning
9) One member of the European Union (EU) is Chile.
Answer: FALSE
Diff: 2 Page Ref: 9
Topic: Globalization and Environmental Sustainability: Challenges to Strategic
Management
10) The goal of NAFTA is complete economic integration.
Answer: FALSE
Diff: 2 Page Ref: 9
Topic: Globalization and Environmental Sustainability: Challenges to Strategic
Management
11) Climate change has become a growing concern for businesses to include in their
corporate strategies.
Answer: TRUE
Diff: 2 Page Ref: 9-10
Topic: Globalization and Environmental Sustainability: Challenges to Strategic
Management
AACSB: Ethical Reasoning
, 12) Knowing a company is mindful of its impact on the environment seldom changes
consumer buying habits.
Answer: FALSE
Diff: 2 Page Ref: 10
Topic: Globalization and Environmental Sustainability: Challenges to Strategic
Management
13) While there are litigation and physical risks to companies as a result of climate
change, there is no risk currently identified to the company on its overall reputation.
Answer: FALSE
Diff: 3 Page Ref: 11
Topic: Globalization and Environmental Sustainability: Challenges to Strategic
Management
AACSB: Reflective Thinking
14) Population ecology is a theory that proposes organizations can and do adapt to
change by imitating other successful organizations.
Answer: FALSE
Diff: 1 Page Ref: 12-13
Topic: Theories of Organizational Adaptation
15) According to organizational learning theory, an organization uses knowledge to
improve the fit between itself and its environment.
Answer: TRUE
Diff: 2 Page Ref: 13
Topic: Theories of Organizational Adaptation
Chapter 1 Basic Concepts in Strategic Management
1) Strategic management is one decision that determines the short-term performance of a
corporation.
Answer: FALSE
Diff: 1 Page Ref: 5
Topic: The Study of Strategic Management
2) In the externally oriented planning phase, plans are developed by heavily involving the
input of managers from lower levels.
Answer: FALSE
Diff: 2 Page Ref: 5
Topic: The Study of Strategic Management
3) General Electric led the transition from strategic planning to strategic management
during the 1980s.
Answer: TRUE
Diff: 1 Page Ref: 6
Topic: The Study of Strategic Management
4) One of the benefits of strategic management is a clearer sense of vision for the firm.
Answer: TRUE
Diff: 2 Page Ref: 6
Topic: The Study of Strategic Management
,5) To be effective, strategic management must be a formal process.
Answer: FALSE
Diff: 3 Page Ref: 7
Topic: The Study of Strategic Management
6) Globalization is the internationalization of markets and corporations.
Answer: TRUE
Diff: 1 Page Ref: 8
Topic: Globalization and Environmental Sustainability: Challenges to Strategic
Management
7) As more industries become global, strategic management is becoming less important
in positioning a company for long-term competitive advantage.
Answer: FALSE
Diff: 2 Page Ref: 8
Topic: Globalization and Environmental Sustainability: Challenges to Strategic
Management
,8) Environmental sustainability reflects business practices to reduce a firm's impact on
the physical environment.
Answer: TRUE
Diff: 2 Page Ref: 8
Topic: Globalization and Environmental Sustainability: Challenges to Strategic
Management
AACSB: Ethical Reasoning
9) One member of the European Union (EU) is Chile.
Answer: FALSE
Diff: 2 Page Ref: 9
Topic: Globalization and Environmental Sustainability: Challenges to Strategic
Management
10) The goal of NAFTA is complete economic integration.
Answer: FALSE
Diff: 2 Page Ref: 9
Topic: Globalization and Environmental Sustainability: Challenges to Strategic
Management
11) Climate change has become a growing concern for businesses to include in their
corporate strategies.
Answer: TRUE
Diff: 2 Page Ref: 9-10
Topic: Globalization and Environmental Sustainability: Challenges to Strategic
Management
AACSB: Ethical Reasoning
, 12) Knowing a company is mindful of its impact on the environment seldom changes
consumer buying habits.
Answer: FALSE
Diff: 2 Page Ref: 10
Topic: Globalization and Environmental Sustainability: Challenges to Strategic
Management
13) While there are litigation and physical risks to companies as a result of climate
change, there is no risk currently identified to the company on its overall reputation.
Answer: FALSE
Diff: 3 Page Ref: 11
Topic: Globalization and Environmental Sustainability: Challenges to Strategic
Management
AACSB: Reflective Thinking
14) Population ecology is a theory that proposes organizations can and do adapt to
change by imitating other successful organizations.
Answer: FALSE
Diff: 1 Page Ref: 12-13
Topic: Theories of Organizational Adaptation
15) According to organizational learning theory, an organization uses knowledge to
improve the fit between itself and its environment.
Answer: TRUE
Diff: 2 Page Ref: 13
Topic: Theories of Organizational Adaptation
