MGMT 4000 EXAM.

MGMT 4000 EXAM. Strategic Management and Business Policy, 15e (Wheelmen et al.) Chapter 1 Basic Concepts in Strategic Management 1) The emphasis of strategic management is on A) Long-term performance. B) First line managers. C) The short-run performance of the corporation. D) An examination of the organization's internal environment. E) An investigation of competitor actions. Answer: A 2) Research suggests that strategic management evolves through four sequential phases in corporations. The first phase is A) Externally oriented planning. B) Basic financial planning. C) Internally oriented planning. D) forecast-based planning. E) Strategic management. Answer: B 3) The time horizon involved with regard to basic financial planning is usually A) one year. B) one quarter. C) three to five years. D) Less than one month. E) five to ten years. Answer: A 4) A difference between basic financial planning and forecast-based planning is A) The time horizon is shorter in forecast-based planning. B) forecast-based planning incorporates environmental data and extrapolates current trends. C) Basic financial planning utilizes consultants with sophisticated techniques. D) Basic financial planning utilizes scenarios and contingency strategies. E) Basic financial planning relies heavily on input from lower levels in the organization. Answer: B 5) Top-down planning that emphasizes formal strategy formulation and leaves the implementation issues to lower management levels is known as A) forecast-based planning. B) Externally oriented planning. C) Strategic management. D) Basic financial planning. E) None of the above Answer: B 6) In the final phase of strategic management, strategic information is available to A) People throughout the organization. B) The top management responsible for decision-making. C) Middle management. D) Operational personnel. E) Only those responsible for implementing the strategy. Answer: A 7) In a survey of 50 corporations, which of the following was rated as one of the three top benefits of strategic management? A) Clearer sense of strategic vision for the firm B) Higher levels of employee motivation C) Higher levels of job satisfaction D) Improved productivity E) Lower employee turnover Answer: A 8) When an organization is evaluating its strategic position, which is not one of the strategic questions that an organization generally may ask itself? A) Where is the organization now? B) Are we on target to hit our financial objectives next year? C) If no changes are made, where will the organization be in one year? D) If the evaluation is negative, what specific actions should management take? E) If no changes are made, where will the organization be in 10 years? Answer: B 9) Research of the planning practices of companies in the oil industry concludes that the real value of modern strategic planning is more in the that is part of a future-oriented planning process than in any resulting written strategic plan. A) Planning B) Strategic thinking and organizational learning C) Resulting written strategic plan D) Formality of the process E) Improved communication within the organization Answer: B 10) Strategic planning within a small organization A) May be informal and irregular. B) Must be elaborate to allow for future growth. C) Should always be formalized and explicitly stated. D) Should be done by the president only. E) is unnecessary and a waste of time. Answer: A 11) Strategic planning in a multidivisional corporation A) Should be informal to allow complete understanding by the many participants. B) Should be instigated only from the main corporate office. C) Should be accomplished quickly to decrease the likelihood of it becoming outdated. D) Should encourage a clear delineation between top management and lower-level managers. E) Should be a formalized and sophisticated system. Answer: E