Test Bank
pp
For
Strategic Management and
pp pp
BusinessPolicy: p
pp Globalization, Innovation and
pp pp
Sustainability
Sixteenth Edition, Global Edition
pp pp pp
By
Charles E. Bamford pp pp
Thomas L. Wheelen
pp pp pp
Alan N. Hoffman J.
pp pp pp pp
David Hunger
pp pp
,Strategic Management and Business Policy, 16e, Global Edition
pp pp pp pp pp pp pp
(Wheelen) Chapter 1
pp Basic Concepts of Strategic Management
pp pp pp pp pp pp
1) What was strategic management originally called?
pp pp pp pp pp
A) Business policy pp
B) Planning
C) Marketing strategy pp
D) Short-term planning pp
E) Operational planning pp
Answer: A
pp p p
Difficulty: Easy p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Application of knowledge
pp pp p p pp pp
2) Research suggests that strategic management evolves through four sequential phases
pp pp pp pp pp pp pp pp pp
in corporations. The first phase is
pp pp pp pp pp pp
A) externally oriented planning. pp pp
B) b asic financial planning.
pp pp pp
C) i nternally oriented planning.
pp pp pp
D) forecast-based planning. pp
E) strategic management. pp
Answer: B
pp p p
Difficulty: Easy p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Application of knowledge
pp pp p p pp pp
3) The time horizon involved with regard to forecast-based planning is usually
pp pp pp pp pp pp pp pp pp pp
A) one year. pp
B) o ne quarter.
pp pp
C) t hree to five years.
pp pp pp pp
D) less than one month. pp pp pp
E) five to ten years. pp pp pp
Answer: C
pp p p
Difficulty: Easy
pp p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Application of knowledge
pp pp p p pp pp
4) A difference between basic financial planning and forecast-based planning is
pp pp pp pp pp pp pp pp pp
A) the time horizon is shorter in forecast-based planning.
pp pp pp pp pp pp pp
B) f orecast-based planning incorporates environmental data and extrapolates current trends.
pp pp pp pp pp pp pp pp pp
C) b asic financial planning utilizes consultants with sophisticated techniques.
pp pp pp pp pp pp pp pp
D) basic financial planning utilizes scenarios and contingency strategies.
pp pp pp pp pp pp pp
E) basic financial planning relies heavily on input from lower levels in the
pp pp pp pp pp pp pp pp pp pp pp
organization. Answer: B
pp pp p p
Difficulty: Moderate p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Analytical thinking
pp pp p p pp
1
.
,5) Top-down planning that emphasizes formal strategy formulation and leaves
pp pp pp pp pp pp pp pp
the implementation issues to lower management levels is known as
pp pp pp pp pp pp pp pp pp pp
A) forecast-based planning. pp
B) externally oriented planning. pp pp
C) strategic management. pp
D) basic financial planning. pp pp
E) none of the above. pp pp pp
Answer: B
pp p p
Difficulty:
pp
p Moderate
p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Application of knowledge
pp pp p p pp pp
6) In the final phase of strategic management, strategic information is available to
pp pp pp pp pp pp pp pp pp pp pp
A) people throughout the organization. pp pp pp
B) the top management responsible for decision-making.
pp pp pp pp pp
C) middle management. pp
D) operational personnel. pp
E) only those responsible for implementing the strategy.
pp pp pp pp pp pp
Answer: A
pp p p
Difficulty: Moderate p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Application of knowledge
pp pp p p pp pp
7) In a survey of 50 corporations, which of the following was rated as one of the three
pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp
top benefits of strategic management?
pp pp pp pp pp
A) Clearer sense of strategic direction for the firm
pp pp pp pp pp pp pp
B) Higher levels of employee motivation pp pp pp pp
C) Higher levels of job satisfaction pp pp pp pp
D) Improved productivity pp
E) Lower employee turnover pp pp
Answer: A
pp p p
Difficulty: Moderate p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Application of knowledge
pp pp p p pp pp
8) When an organization is involved in formal strategic planning, which is not one of
pp pp pp pp pp pp pp pp pp pp pp pp pp
the strategic questions that an organization generally may ask itself?
pp pp pp pp pp pp pp pp pp pp
A) Where is the organization now? pp pp pp pp
B) Are we on target to hit our financial objectives next year?
pp pp pp pp pp pp pp pp pp pp
C) If no changes are made, where will the organization be in one year?
pp pp pp pp pp pp pp pp pp pp pp pp
D) If the evaluation is negative, what specific actions should management take?
pp pp pp pp pp pp pp pp pp pp
E) If no changes are made, where will the organization be in 10
pp pp pp pp pp pp pp pp pp pp pp
years? Answer: B
pp pp p p
Difficulty: Moderate p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Analytical thinking
pp pp p p pp
2
.
, 9) In the Bain & Company survey of executives from more than 70 countries, which of
pp pp pp pp pp pp pp pp pp pp pp pp pp pp
the following was the number one tool used by decision makers?
pp pp pp pp pp pp pp pp pp pp pp
A) Customer relationship management pp pp
B) S trategic planning
pp pp
C) Marketing planning pp
D) Financial management pp
E) Budgeting
Answer:
pp
p B p
Difficulty: Challenging p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Application of knowledge
pp pp p p pp pp
10) Strategic planning within a small organization pp pp pp pp pp
A) may be informal and irregular.
pp pp pp pp
B) must be elaborate to allow for future growth.
pp pp pp pp pp pp pp
C) should always be formalized and explicitly stated.
pp pp pp pp pp pp
D) should be done by the president only. pp pp pp pp pp pp
E) is unnecessary and a waste of time.
pp pp pp pp pp pp
Answer: A
pp p p
Difficulty: Moderate p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Application of knowledge
pp pp p p pp pp
11) Strategic planning in a large firm pp pp pp pp pp
A) should be informal to allow complete understanding by the many participants.
pp pp pp pp pp pp pp pp pp pp
B) should be instigated only from the main corporate office.
pp pp pp pp pp pp pp pp
C) should be accomplished quickly to decrease the likelihood of it becoming outdated.
pp pp pp pp pp pp pp pp pp pp pp
D) should encourage a clear delineation between top management and lower-level managers.
pp pp pp pp pp pp pp pp pp pp
E) should be a formalized and sophisticated system.
pp pp pp pp pp pp
Answer: E
pp p p
Difficulty: Moderate p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Application of knowledge
pp pp p p pp pp
12) Strategic management is the set of managerial decisions that help determine the long-
pp pp pp pp pp pp pp pp pp pp pp pp
term performance of a corporation.
pp pp pp pp
Answer: TRUE p p
Difficulty: Easy
pp p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Application of knowledge
pp pp p p pp pp
13) As annual budgets become less useful at stimulating long-term success, managers attempt
pp pp pp pp pp pp pp pp pp pp pp
to propose five-year plans.
pp pp pp pp
Answer: TRUE p p
Difficulty: Easy
pp p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
3
.
pp
For
Strategic Management and
pp pp
BusinessPolicy: p
pp Globalization, Innovation and
pp pp
Sustainability
Sixteenth Edition, Global Edition
pp pp pp
By
Charles E. Bamford pp pp
Thomas L. Wheelen
pp pp pp
Alan N. Hoffman J.
pp pp pp pp
David Hunger
pp pp
,Strategic Management and Business Policy, 16e, Global Edition
pp pp pp pp pp pp pp
(Wheelen) Chapter 1
pp Basic Concepts of Strategic Management
pp pp pp pp pp pp
1) What was strategic management originally called?
pp pp pp pp pp
A) Business policy pp
B) Planning
C) Marketing strategy pp
D) Short-term planning pp
E) Operational planning pp
Answer: A
pp p p
Difficulty: Easy p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Application of knowledge
pp pp p p pp pp
2) Research suggests that strategic management evolves through four sequential phases
pp pp pp pp pp pp pp pp pp
in corporations. The first phase is
pp pp pp pp pp pp
A) externally oriented planning. pp pp
B) b asic financial planning.
pp pp pp
C) i nternally oriented planning.
pp pp pp
D) forecast-based planning. pp
E) strategic management. pp
Answer: B
pp p p
Difficulty: Easy p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Application of knowledge
pp pp p p pp pp
3) The time horizon involved with regard to forecast-based planning is usually
pp pp pp pp pp pp pp pp pp pp
A) one year. pp
B) o ne quarter.
pp pp
C) t hree to five years.
pp pp pp pp
D) less than one month. pp pp pp
E) five to ten years. pp pp pp
Answer: C
pp p p
Difficulty: Easy
pp p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Application of knowledge
pp pp p p pp pp
4) A difference between basic financial planning and forecast-based planning is
pp pp pp pp pp pp pp pp pp
A) the time horizon is shorter in forecast-based planning.
pp pp pp pp pp pp pp
B) f orecast-based planning incorporates environmental data and extrapolates current trends.
pp pp pp pp pp pp pp pp pp
C) b asic financial planning utilizes consultants with sophisticated techniques.
pp pp pp pp pp pp pp pp
D) basic financial planning utilizes scenarios and contingency strategies.
pp pp pp pp pp pp pp
E) basic financial planning relies heavily on input from lower levels in the
pp pp pp pp pp pp pp pp pp pp pp
organization. Answer: B
pp pp p p
Difficulty: Moderate p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Analytical thinking
pp pp p p pp
1
.
,5) Top-down planning that emphasizes formal strategy formulation and leaves
pp pp pp pp pp pp pp pp
the implementation issues to lower management levels is known as
pp pp pp pp pp pp pp pp pp pp
A) forecast-based planning. pp
B) externally oriented planning. pp pp
C) strategic management. pp
D) basic financial planning. pp pp
E) none of the above. pp pp pp
Answer: B
pp p p
Difficulty:
pp
p Moderate
p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Application of knowledge
pp pp p p pp pp
6) In the final phase of strategic management, strategic information is available to
pp pp pp pp pp pp pp pp pp pp pp
A) people throughout the organization. pp pp pp
B) the top management responsible for decision-making.
pp pp pp pp pp
C) middle management. pp
D) operational personnel. pp
E) only those responsible for implementing the strategy.
pp pp pp pp pp pp
Answer: A
pp p p
Difficulty: Moderate p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Application of knowledge
pp pp p p pp pp
7) In a survey of 50 corporations, which of the following was rated as one of the three
pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp pp
top benefits of strategic management?
pp pp pp pp pp
A) Clearer sense of strategic direction for the firm
pp pp pp pp pp pp pp
B) Higher levels of employee motivation pp pp pp pp
C) Higher levels of job satisfaction pp pp pp pp
D) Improved productivity pp
E) Lower employee turnover pp pp
Answer: A
pp p p
Difficulty: Moderate p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Application of knowledge
pp pp p p pp pp
8) When an organization is involved in formal strategic planning, which is not one of
pp pp pp pp pp pp pp pp pp pp pp pp pp
the strategic questions that an organization generally may ask itself?
pp pp pp pp pp pp pp pp pp pp
A) Where is the organization now? pp pp pp pp
B) Are we on target to hit our financial objectives next year?
pp pp pp pp pp pp pp pp pp pp
C) If no changes are made, where will the organization be in one year?
pp pp pp pp pp pp pp pp pp pp pp pp
D) If the evaluation is negative, what specific actions should management take?
pp pp pp pp pp pp pp pp pp pp
E) If no changes are made, where will the organization be in 10
pp pp pp pp pp pp pp pp pp pp pp
years? Answer: B
pp pp p p
Difficulty: Moderate p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Analytical thinking
pp pp p p pp
2
.
, 9) In the Bain & Company survey of executives from more than 70 countries, which of
pp pp pp pp pp pp pp pp pp pp pp pp pp pp
the following was the number one tool used by decision makers?
pp pp pp pp pp pp pp pp pp pp pp
A) Customer relationship management pp pp
B) S trategic planning
pp pp
C) Marketing planning pp
D) Financial management pp
E) Budgeting
Answer:
pp
p B p
Difficulty: Challenging p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Application of knowledge
pp pp p p pp pp
10) Strategic planning within a small organization pp pp pp pp pp
A) may be informal and irregular.
pp pp pp pp
B) must be elaborate to allow for future growth.
pp pp pp pp pp pp pp
C) should always be formalized and explicitly stated.
pp pp pp pp pp pp
D) should be done by the president only. pp pp pp pp pp pp
E) is unnecessary and a waste of time.
pp pp pp pp pp pp
Answer: A
pp p p
Difficulty: Moderate p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Application of knowledge
pp pp p p pp pp
11) Strategic planning in a large firm pp pp pp pp pp
A) should be informal to allow complete understanding by the many participants.
pp pp pp pp pp pp pp pp pp pp
B) should be instigated only from the main corporate office.
pp pp pp pp pp pp pp pp
C) should be accomplished quickly to decrease the likelihood of it becoming outdated.
pp pp pp pp pp pp pp pp pp pp pp
D) should encourage a clear delineation between top management and lower-level managers.
pp pp pp pp pp pp pp pp pp pp
E) should be a formalized and sophisticated system.
pp pp pp pp pp pp
Answer: E
pp p p
Difficulty: Moderate p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Application of knowledge
pp pp p p pp pp
12) Strategic management is the set of managerial decisions that help determine the long-
pp pp pp pp pp pp pp pp pp pp pp pp
term performance of a corporation.
pp pp pp pp
Answer: TRUE p p
Difficulty: Easy
pp p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
management AACSB: Application of knowledge
pp pp p p pp pp
13) As annual budgets become less useful at stimulating long-term success, managers attempt
pp pp pp pp pp pp pp pp pp pp pp
to propose five-year plans.
pp pp pp pp
Answer: TRUE p p
Difficulty: Easy
pp p p p p
Learning Obj.: 1.1: Discuss the benefits of strategic
pp p p pp pp pp pp pp
3
.
