,Strategic Management: Text and Cases, 9e (Dess) br br br br br br
Chapter 1 Strategic Management: Creating Competitive Advantages
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1) Lands' End's failure under the leadership of Ms. Frederica Marchionni was said to be a direct re
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sult of the quality of her leadership. According to the text, this would be an example of the "roma
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ntic" perspective of leadership.
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Answer: TRUE b r
Explanation: In the romantic view of leadership, the implicit assumption is that the leader is the k
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ey force in determining an organization's success or lack thereof. Under Ms. Marchionni's leader
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ship, the company reported a 19.5-million-dollar loss for 2016 after having reported a 73.8-
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million-dollar profit for the previous year under its previous CEO. br br br br br br br br br
Difficulty: 2 Medium br br
Topic: Strategy and the Strategic Management Process
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Learning Objective: 01- br b r
01 The definition of strategic management and its four key attributes. Bloom's: Understand
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AACSB: Analytical Thinking Access b r br br
ibility: Keyboard Navigation b r br
2) Strategic management consists of the analyses, decisions, and actions an organization u
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ndertakes in order to create and sustain competitive advantages.
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Answer: TRUE b r
Explanation: According to the textbook, this is the definition of strategic management. Difficult
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y: 1 Easy
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Topic: Strategy and the Strategic Management Process
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Learning Objective: 01- br b r
01 The definition of strategic management and its four key attributes. Bloom's: Remember
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AACSB: Knowledge Application Ac b r br br
cessibility: Keyboard Navigation b r br
3) Management innovations such as total quality, just-in- br br br br br br
time, benchmarking, business process reengineering, and outsourcing are important but not enoug
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h for building sustainable competitive advantage.
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Answer: TRUE b r
Explanation: Sustainable competitive advantage cannot be achieved through operational effectiv
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eness alone. Popular management innovations of the last two decades like total quality, just-in-
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time, benchmarking, business process reengineering, and outsourcing are concerned with operatio
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nal effectiveness.
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Difficulty: 2 Medium br br
Topic: Strategy and the Strategic Management Process
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Learning Objective: 01- br b r
01 The definition of strategic management and its four key attributes. Bloom's: Understand
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AACSB: Analytical Thinking Access b r br br
ibility: Keyboard Navigation b r br
4) Trade-off decisions between effectiveness and efficiency are important in the practice of
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,strategic management. br
Answer: TRUE b r
Explanation: The fourth attribute of strategic management is that it involves the recognition of t
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rade-
offs between effectiveness and efficiency. Some authors have referred to this as the difference b
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etween doing the right thing (effectiveness) and doing things right (efficiency).
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Difficulty: 2 Medium br br
Topic: Strategy and the Strategic Management Process
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Learning Objective: 01- br b r
01 The definition of strategic management and its four key attributes. Bloom's: Understand
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AACSB: Analytical Thinking Access b r br br
ibility: Keyboard Navigation
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5) According to Henry Mintzberg, a management scholar, most firms do not realize their original i
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ntended strategy. br
Answer: TRUE b r
Explanation: Henry Mintzberg states that the intended strategy rarely survives in its original form
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. Unforeseen environmental developments, unanticipated resource constraints, or changes in mana
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gerial preferences may result in at least some parts of the intended strategy remaining unrealized.
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On the other hand, good managers will want to take advantage of a new opportunity presented by t
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he environment, even if it was not part of the original set of intentions.
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Difficulty: 2 Medium br br
Topic: Strategy and the Strategic Management Process
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Learning Objective: 01- br b r
02 The strategic management process and its three interrelated and principal activities.
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Bloom's: Understand AACS b r br
B: Analytical Thinking
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Accessibility: Keyboard Navigation b r br
6) The final realized strategy of a firm is a combination of deliberate and time-
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tested strategies only.
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Answer: FALSE b r
Explanation: Realized strategy is that strategy of a firm in which organizational decisions are deter
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mined by both analysis and unforeseen environmental developments, unanticipated resource constra
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ints, and/or changes in managerial preferences.
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Difficulty: 2 Medium br br
Topic: Strategy and the Strategic Management Process
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Learning Objective: 01- br b r
02 The strategic management process and its three interrelated and principal activities.
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Bloom's: Understand b r
AACSB: Knowledge Application Ac b r br br
cessibility: Keyboard Navigation b r br
, 7) Strategy analysis is the study of only the big picture external environments of the firm.
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Answer: FALSE b r
Explanation: Strategy analysis is the study of the external and internal environments of a firm, a
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nd their fit with organizational vision and goals.
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Difficulty: 2 Medium br br
Topic: Strategy and the Strategic Management Process
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Learning Objective: 01- br b r
02 The strategic management process and its three interrelated and principal activities.
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Bloom's: Understand b r
AACSB: Knowledge Application Ac b r br br
cessibility: Keyboard Navigation b r br
8) All successful firms compete and outperform their rivals by developing bases for competitive a
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dvantage, which can be achieved only through cost leadership.
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Answer: FALSE b r
Explanation: Successful firms strive to develop bases for competitive advantage, which can be achi
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eved through cost leadership and/or differentiation as well as by focusing on a narrow or industrywi
br br br br br br br br br br br br br br br
de market segment.
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Difficulty: 2 Medium br br
Topic: Strategy and the Strategic Management Process
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Learning Objective: 01- br b r
02 The strategic management process and its three interrelated and principal activities.
br br br br br br br br br br br
Bloom's: Understand AACS b r br
B: Analytical Thinking
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Accessibility: Keyboard Navigation b r br
9) The three primary participants in corporate governance are: (1) the shareholders, (2) the
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management (led by the chief executive officer), and (3) the employees.
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Answer: FALSE b r
Explanation: The primary participants are: (1) the shareholders, (2) the management (led by the chi
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ef executive officer), and (3) the board of directors.
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Difficulty: 2 Medium br br
Topic: Corporate Governance
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Learning Objective: 01- br b r
03 The strategic role of corporate governance and stakeholder management, as well as how "symbi
br br br br br br br br br br br br br br
osis" can be achieved among an organization's stakeholders. Bloom's: Understand
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AACSB: Knowledge Application Ac b r br br
cessibility: Keyboard Navigation b r br
Chapter 1 Strategic Management: Creating Competitive Advantages
br b r br br br br
1) Lands' End's failure under the leadership of Ms. Frederica Marchionni was said to be a direct re
br br br br br br br br br br br br br br br br
sult of the quality of her leadership. According to the text, this would be an example of the "roma
br br br br br br br br br br br br br br br br br br
ntic" perspective of leadership.
br br br
Answer: TRUE b r
Explanation: In the romantic view of leadership, the implicit assumption is that the leader is the k
b r br br br br br br br br br br br br br br br
ey force in determining an organization's success or lack thereof. Under Ms. Marchionni's leader
br br br br br br br br br br br br br
ship, the company reported a 19.5-million-dollar loss for 2016 after having reported a 73.8-
br br br br br br br br br br br br br
million-dollar profit for the previous year under its previous CEO. br br br br br br br br br
Difficulty: 2 Medium br br
Topic: Strategy and the Strategic Management Process
b r br br br br br
Learning Objective: 01- br b r
01 The definition of strategic management and its four key attributes. Bloom's: Understand
br br br br br br br br br br br b r
AACSB: Analytical Thinking Access b r br br
ibility: Keyboard Navigation b r br
2) Strategic management consists of the analyses, decisions, and actions an organization u
br br br br br br br br br br br
ndertakes in order to create and sustain competitive advantages.
br br br br br br br br
Answer: TRUE b r
Explanation: According to the textbook, this is the definition of strategic management. Difficult
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y: 1 Easy
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Topic: Strategy and the Strategic Management Process
b r br br br br br
Learning Objective: 01- br b r
01 The definition of strategic management and its four key attributes. Bloom's: Remember
br br br br br br br br br br br b r
AACSB: Knowledge Application Ac b r br br
cessibility: Keyboard Navigation b r br
3) Management innovations such as total quality, just-in- br br br br br br
time, benchmarking, business process reengineering, and outsourcing are important but not enoug
br br br br br br br br br br br
h for building sustainable competitive advantage.
br br br br br
Answer: TRUE b r
Explanation: Sustainable competitive advantage cannot be achieved through operational effectiv
b r br br br br br br br br
eness alone. Popular management innovations of the last two decades like total quality, just-in-
br br br br br br br br br br br br br
time, benchmarking, business process reengineering, and outsourcing are concerned with operatio
br br br br br br br br br br
nal effectiveness.
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Difficulty: 2 Medium br br
Topic: Strategy and the Strategic Management Process
b r br br br br br
Learning Objective: 01- br b r
01 The definition of strategic management and its four key attributes. Bloom's: Understand
br br br br br br br br br br br b r
AACSB: Analytical Thinking Access b r br br
ibility: Keyboard Navigation b r br
4) Trade-off decisions between effectiveness and efficiency are important in the practice of
br br br br br br br br br br br
,strategic management. br
Answer: TRUE b r
Explanation: The fourth attribute of strategic management is that it involves the recognition of t
b r br br br br br br br br br br br br br
rade-
offs between effectiveness and efficiency. Some authors have referred to this as the difference b
br br br br br br br br br br br br br br
etween doing the right thing (effectiveness) and doing things right (efficiency).
br br br br br br br br br br
Difficulty: 2 Medium br br
Topic: Strategy and the Strategic Management Process
b r br br br br br
Learning Objective: 01- br b r
01 The definition of strategic management and its four key attributes. Bloom's: Understand
br br br br br br br br br br br b r
AACSB: Analytical Thinking Access b r br br
ibility: Keyboard Navigation
b r br
5) According to Henry Mintzberg, a management scholar, most firms do not realize their original i
br br br br br br br br br br br br br br
ntended strategy. br
Answer: TRUE b r
Explanation: Henry Mintzberg states that the intended strategy rarely survives in its original form
b r br br br br br br br br br br br br
. Unforeseen environmental developments, unanticipated resource constraints, or changes in mana
br br br br br br br br br br
gerial preferences may result in at least some parts of the intended strategy remaining unrealized.
br br br br br br br br br br br br br br br
On the other hand, good managers will want to take advantage of a new opportunity presented by t
br br br br br br br br br br br br br br br br br
he environment, even if it was not part of the original set of intentions.
br br br br br br br br br br br br br
Difficulty: 2 Medium br br
Topic: Strategy and the Strategic Management Process
b r br br br br br
Learning Objective: 01- br b r
02 The strategic management process and its three interrelated and principal activities.
br br br br br br br br br br br
Bloom's: Understand AACS b r br
B: Analytical Thinking
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Accessibility: Keyboard Navigation b r br
6) The final realized strategy of a firm is a combination of deliberate and time-
br br br br br br br br br br br br br
tested strategies only.
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Answer: FALSE b r
Explanation: Realized strategy is that strategy of a firm in which organizational decisions are deter
b r br br br br br br br br br br br br br
mined by both analysis and unforeseen environmental developments, unanticipated resource constra
br br br br br br br br br br
ints, and/or changes in managerial preferences.
br br br br br
Difficulty: 2 Medium br br
Topic: Strategy and the Strategic Management Process
b r br br br br br
Learning Objective: 01- br b r
02 The strategic management process and its three interrelated and principal activities.
br br br br br br br br br br br
Bloom's: Understand b r
AACSB: Knowledge Application Ac b r br br
cessibility: Keyboard Navigation b r br
, 7) Strategy analysis is the study of only the big picture external environments of the firm.
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Answer: FALSE b r
Explanation: Strategy analysis is the study of the external and internal environments of a firm, a
b r br br br br br br br br br br br br br br
nd their fit with organizational vision and goals.
br br br br br br br
Difficulty: 2 Medium br br
Topic: Strategy and the Strategic Management Process
b r br br br br br
Learning Objective: 01- br b r
02 The strategic management process and its three interrelated and principal activities.
br br br br br br br br br br br
Bloom's: Understand b r
AACSB: Knowledge Application Ac b r br br
cessibility: Keyboard Navigation b r br
8) All successful firms compete and outperform their rivals by developing bases for competitive a
br br br br br br br br br br br br br
dvantage, which can be achieved only through cost leadership.
br br br br br br br br
Answer: FALSE b r
Explanation: Successful firms strive to develop bases for competitive advantage, which can be achi
b r br br br br br br br br br br br br
eved through cost leadership and/or differentiation as well as by focusing on a narrow or industrywi
br br br br br br br br br br br br br br br
de market segment.
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Difficulty: 2 Medium br br
Topic: Strategy and the Strategic Management Process
b r br br br br br
Learning Objective: 01- br b r
02 The strategic management process and its three interrelated and principal activities.
br br br br br br br br br br br
Bloom's: Understand AACS b r br
B: Analytical Thinking
b r br
Accessibility: Keyboard Navigation b r br
9) The three primary participants in corporate governance are: (1) the shareholders, (2) the
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management (led by the chief executive officer), and (3) the employees.
br br br br br br br br br br
Answer: FALSE b r
Explanation: The primary participants are: (1) the shareholders, (2) the management (led by the chi
b r br br br br br br br br br br br br br
ef executive officer), and (3) the board of directors.
br br br br br br br br
Difficulty: 2 Medium br br
Topic: Corporate Governance
b r br
Learning Objective: 01- br b r
03 The strategic role of corporate governance and stakeholder management, as well as how "symbi
br br br br br br br br br br br br br br
osis" can be achieved among an organization's stakeholders. Bloom's: Understand
br br br br br br br br b r
AACSB: Knowledge Application Ac b r br br
cessibility: Keyboard Navigation b r br
