,Strategic Management: Text and Cases, 9e (Dess)
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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
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result of the quality of her leadership. According to the text, this would be an example of the "r
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omantic" perspective of leadership. pn pn pn
Answer: TRUE p n
Explanation: In the romantic view of leadership, the implicit assumption is that the leader is the
p n pn pn pn pn pn pn pn pn pn pn pn pn pn pn pn
key force in determining an organization's success or lack thereof. Under Ms. Marchionni's lead
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ership, 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.
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Difficulty: 2 Medium pn pn
Topic: Strategy and the Strategic Management Process
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Learning Objective: 01- pn p n
01 The definition of strategic management and its four key attributes. Bloom's: Understand
pn pn pn pn pn pn pn pn pn pn pn p n
AACSB: Analytical Thinking Access p n pn pn
ibility: Keyboard Navigation
p n pn
2) Strategic management consists of the analyses, decisions, and actions an organization
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undertakes in order to create and sustain competitive advantages.
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Answer: TRUE p n
Explanation: According to the textbook, this is the definition of strategic management. Difficu
p n pn pn pn pn pn pn pn pn pn pn pn
lty: 1 Easypn pn
Topic: Strategy and the Strategic Management Process
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Learning Objective: 01- pn p n
01 The definition of strategic management and its four key attributes. Bloom's: Remember
pn pn pn pn pn pn pn pn pn pn pn p n
AACSB: Knowledge Application Ac p n pn pn
cessibility: Keyboard Navigation p n pn
3) Management innovations such as total quality, just-in- pn pn pn pn pn pn
time, benchmarking, business process reengineering, and outsourcing are important but not enoug
pn pn pn pn pn pn pn pn pn pn pn
h for building sustainable competitive advantage.
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Answer: TRUE p n
Explanation: Sustainable competitive advantage cannot be achieved through operational effecti
p n pn pn pn pn pn pn pn pn
veness alone. Popular management innovations of the last two decades like total quality, just-in-
pn pn pn pn pn pn pn pn pn pn pn pn pn
time, benchmarking, business process reengineering, and outsourcing are concerned with operati
pn pn pn pn pn pn pn pn pn pn
onal effectiveness.
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Difficulty: 2 Medium pn pn
Topic: Strategy and the Strategic Management Process
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Learning Objective: 01- pn p n
01 The definition of strategic management and its four key attributes. Bloom's: Understand
pn pn pn pn pn pn pn pn pn pn pn p n
AACSB: Analytical Thinking Access p n pn pn
ibility: Keyboard Navigation
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4) Trade-off decisions between effectiveness and efficiency are important in the practice of
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,strategic management. pn
Answer: TRUE p n
Explanation: The fourth attribute of strategic management is that it involves the recognition of
p n pn pn pn pn pn pn pn pn pn pn pn pn p
trade-
n
offs between effectiveness and efficiency. Some authors have referred to this as the difference
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between doing the right thing (effectiveness) and doing things right (efficiency).
pn pn pn pn pn pn pn pn pn pn
Difficulty: 2 Medium pn pn
Topic: Strategy and the Strategic Management Process
p n pn pn pn pn pn
Learning Objective: 01- pn p n
01 The definition of strategic management and its four key attributes. Bloom's: Understand
pn pn pn pn pn pn pn pn pn pn pn p n
AACSB: Analytical Thinking Access p n pn pn
ibility: Keyboard Navigation
p n pn
5) According to Henry Mintzberg, a management scholar, most firms do not realize their original
pn pn pn pn pn pn pn pn pn pn pn pn pn pn
intended strategy. pn
Answer: TRUE p n
Explanation: Henry Mintzberg states that the intended strategy rarely survives in its original for
p n pn pn pn pn pn pn pn pn pn pn pn pn
m. Unforeseen environmental developments, unanticipated resource constraints, or changes in ma
pn pn pn pn pn pn pn pn pn pn
nagerial preferences may result in at least some parts of the intended strategy remaining unrealiz
pn pn pn pn pn pn pn pn pn pn pn pn pn pn
ed. On the other hand, good managers will want to take advantage of a new opportunity presente
pn pn pn pn pn pn pn pn pn pn pn pn pn pn pn pn
d by the environment, even if it was not part of the original set of intentions.
pn pn pn pn pn pn pn pn pn pn pn pn pn pn pn
Difficulty: 2 Medium pn pn
Topic: Strategy and the Strategic Management Process
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Learning Objective: 01- pn p n
02 The strategic management process and its three interrelated and principal activities.
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Bloom's: Understand AACS p n pn
B: Analytical Thinking
p n pn
Accessibility: Keyboard Navigation p n pn
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 p n
Explanation: Realized strategy is that strategy of a firm in which organizational decisions are det
p n pn pn pn pn pn pn pn pn pn pn pn pn pn
ermined by both analysis and unforeseen environmental developments, unanticipated resource cons
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traints, and/or changes in managerial preferences.
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Difficulty: 2 Medium pn pn
Topic: Strategy and the Strategic Management Process
p n pn pn pn pn pn
Learning Objective: 01- pn p n
02 The strategic management process and its three interrelated and principal activities.
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Bloom's: Understand p n
AACSB: Knowledge Application Ac p n pn pn
cessibility: Keyboard Navigation p n pn
, 7) Strategy analysis is the study of only the big picture external environments of the firm.
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Answer: FALSE p n
Explanation: Strategy analysis is the study of the external and internal environments of a firm,
p n pn pn pn pn pn pn pn pn pn pn pn pn pn pn
and their fit with organizational vision and goals.
pn pn pn pn pn pn pn
Difficulty: 2 Medium pn pn
Topic: Strategy and the Strategic Management Process
p n pn pn pn pn pn
Learning Objective: 01- pn p n
02 The strategic management process and its three interrelated and principal activities.
pn pn pn pn pn pn pn pn pn pn pn
Bloom's: Understand p n
AACSB: Knowledge Application Ac
p n pn pn
cessibility: Keyboard Navigation p n pn
8) All successful firms compete and outperform their rivals by developing bases for competitive
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advantage, which can be achieved only through cost leadership.
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Answer: FALSE p n
Explanation: Successful firms strive to develop bases for competitive advantage, which can be ach
p n pn pn pn pn pn pn pn pn pn pn pn pn
ieved through cost leadership and/or differentiation as well as by focusing on a narrow or industry
pn pn pn pn pn pn pn pn pn pn pn pn pn pn pn
wide market segment.
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Difficulty: 2 Medium pn pn
Topic: Strategy and the Strategic Management Process
p n pn pn pn pn pn
Learning Objective: 01- pn p n
02 The strategic management process and its three interrelated and principal activities.
pn pn pn pn pn pn pn pn pn pn pn
Bloom's: Understand AACS p n pn
B: Analytical Thinking
p n pn
Accessibility: Keyboard Navigation p n pn
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 p n
Explanation: The primary participants are: (1) the shareholders, (2) the management (led by the ch
p n pn pn pn pn pn pn pn pn pn pn pn pn pn
ief executive officer), and (3) the board of directors.
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Difficulty: 2 Medium pn pn
Topic: Corporate Governance
p n pn
Learning Objective: 01- pn p n
03 The strategic role of corporate governance and stakeholder management, as well as how "sym
pn pn pn pn pn pn pn pn pn pn pn pn pn pn
biosis" can be achieved among an organization's stakeholders. Bloom's: Understand
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AACSB: Knowledge Application Ac
p n pn pn
cessibility: Keyboard Navigation p n pn
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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
pn pn pn pn pn pn pn pn pn pn pn pn pn pn pn pn
result of the quality of her leadership. According to the text, this would be an example of the "r
pn pn pn pn pn pn pn pn pn pn pn pn pn pn pn pn pn pn
omantic" perspective of leadership. pn pn pn
Answer: TRUE p n
Explanation: In the romantic view of leadership, the implicit assumption is that the leader is the
p n pn pn pn pn pn pn pn pn pn pn pn pn pn pn pn
key force in determining an organization's success or lack thereof. Under Ms. Marchionni's lead
pn pn pn pn pn pn pn pn pn pn pn pn pn
ership, the company reported a 19.5-million-dollar loss for 2016 after having reported a 73.8-
pn pn pn pn pn pn pn pn pn pn pn pn pn
million-dollar profit for the previous year under its previous CEO.
pn pn pn pn pn pn pn pn pn
Difficulty: 2 Medium pn pn
Topic: Strategy and the Strategic Management Process
p n pn pn pn pn pn
Learning Objective: 01- pn p n
01 The definition of strategic management and its four key attributes. Bloom's: Understand
pn pn pn pn pn pn pn pn pn pn pn p n
AACSB: Analytical Thinking Access p n pn pn
ibility: Keyboard Navigation
p n pn
2) Strategic management consists of the analyses, decisions, and actions an organization
pn pn pn pn pn pn pn pn pn pn pn
undertakes in order to create and sustain competitive advantages.
pn pn pn pn pn pn pn pn
Answer: TRUE p n
Explanation: According to the textbook, this is the definition of strategic management. Difficu
p n pn pn pn pn pn pn pn pn pn pn pn
lty: 1 Easypn pn
Topic: Strategy and the Strategic Management Process
p n pn pn pn pn pn
Learning Objective: 01- pn p n
01 The definition of strategic management and its four key attributes. Bloom's: Remember
pn pn pn pn pn pn pn pn pn pn pn p n
AACSB: Knowledge Application Ac p n pn pn
cessibility: Keyboard Navigation p n pn
3) Management innovations such as total quality, just-in- pn pn pn pn pn pn
time, benchmarking, business process reengineering, and outsourcing are important but not enoug
pn pn pn pn pn pn pn pn pn pn pn
h for building sustainable competitive advantage.
pn pn pn pn pn
Answer: TRUE p n
Explanation: Sustainable competitive advantage cannot be achieved through operational effecti
p n pn pn pn pn pn pn pn pn
veness alone. Popular management innovations of the last two decades like total quality, just-in-
pn pn pn pn pn pn pn pn pn pn pn pn pn
time, benchmarking, business process reengineering, and outsourcing are concerned with operati
pn pn pn pn pn pn pn pn pn pn
onal effectiveness.
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Difficulty: 2 Medium pn pn
Topic: Strategy and the Strategic Management Process
p n pn pn pn pn pn
Learning Objective: 01- pn p n
01 The definition of strategic management and its four key attributes. Bloom's: Understand
pn pn pn pn pn pn pn pn pn pn pn p n
AACSB: Analytical Thinking Access p n pn pn
ibility: Keyboard Navigation
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4) Trade-off decisions between effectiveness and efficiency are important in the practice of
pn pn pn pn pn pn pn pn pn pn pn
,strategic management. pn
Answer: TRUE p n
Explanation: The fourth attribute of strategic management is that it involves the recognition of
p n pn pn pn pn pn pn pn pn pn pn pn pn p
trade-
n
offs between effectiveness and efficiency. Some authors have referred to this as the difference
pn pn pn pn pn pn pn pn pn pn pn pn pn pn
between doing the right thing (effectiveness) and doing things right (efficiency).
pn pn pn pn pn pn pn pn pn pn
Difficulty: 2 Medium pn pn
Topic: Strategy and the Strategic Management Process
p n pn pn pn pn pn
Learning Objective: 01- pn p n
01 The definition of strategic management and its four key attributes. Bloom's: Understand
pn pn pn pn pn pn pn pn pn pn pn p n
AACSB: Analytical Thinking Access p n pn pn
ibility: Keyboard Navigation
p n pn
5) According to Henry Mintzberg, a management scholar, most firms do not realize their original
pn pn pn pn pn pn pn pn pn pn pn pn pn pn
intended strategy. pn
Answer: TRUE p n
Explanation: Henry Mintzberg states that the intended strategy rarely survives in its original for
p n pn pn pn pn pn pn pn pn pn pn pn pn
m. Unforeseen environmental developments, unanticipated resource constraints, or changes in ma
pn pn pn pn pn pn pn pn pn pn
nagerial preferences may result in at least some parts of the intended strategy remaining unrealiz
pn pn pn pn pn pn pn pn pn pn pn pn pn pn
ed. On the other hand, good managers will want to take advantage of a new opportunity presente
pn pn pn pn pn pn pn pn pn pn pn pn pn pn pn pn
d by the environment, even if it was not part of the original set of intentions.
pn pn pn pn pn pn pn pn pn pn pn pn pn pn pn
Difficulty: 2 Medium pn pn
Topic: Strategy and the Strategic Management Process
p n pn pn pn pn pn
Learning Objective: 01- pn p n
02 The strategic management process and its three interrelated and principal activities.
pn pn pn pn pn pn pn pn pn pn pn
Bloom's: Understand AACS p n pn
B: Analytical Thinking
p n pn
Accessibility: Keyboard Navigation p n pn
6) The final realized strategy of a firm is a combination of deliberate and time-
pn pn pn pn pn pn pn pn pn pn pn pn pn
tested strategies only.
pn pn
Answer: FALSE p n
Explanation: Realized strategy is that strategy of a firm in which organizational decisions are det
p n pn pn pn pn pn pn pn pn pn pn pn pn pn
ermined by both analysis and unforeseen environmental developments, unanticipated resource cons
pn pn pn pn pn pn pn pn pn pn
traints, and/or changes in managerial preferences.
pn pn pn pn pn
Difficulty: 2 Medium pn pn
Topic: Strategy and the Strategic Management Process
p n pn pn pn pn pn
Learning Objective: 01- pn p n
02 The strategic management process and its three interrelated and principal activities.
pn pn pn pn pn pn pn pn pn pn pn
Bloom's: Understand p n
AACSB: Knowledge Application Ac p n pn pn
cessibility: Keyboard Navigation p n pn
, 7) Strategy analysis is the study of only the big picture external environments of the firm.
pn pn pn pn pn pn pn pn pn pn pn pn pn pn
Answer: FALSE p n
Explanation: Strategy analysis is the study of the external and internal environments of a firm,
p n pn pn pn pn pn pn pn pn pn pn pn pn pn pn
and their fit with organizational vision and goals.
pn pn pn pn pn pn pn
Difficulty: 2 Medium pn pn
Topic: Strategy and the Strategic Management Process
p n pn pn pn pn pn
Learning Objective: 01- pn p n
02 The strategic management process and its three interrelated and principal activities.
pn pn pn pn pn pn pn pn pn pn pn
Bloom's: Understand p n
AACSB: Knowledge Application Ac
p n pn pn
cessibility: Keyboard Navigation p n pn
8) All successful firms compete and outperform their rivals by developing bases for competitive
pn pn pn pn pn pn pn pn pn pn pn pn pn
advantage, which can be achieved only through cost leadership.
pn pn pn pn pn pn pn pn
Answer: FALSE p n
Explanation: Successful firms strive to develop bases for competitive advantage, which can be ach
p n pn pn pn pn pn pn pn pn pn pn pn pn
ieved through cost leadership and/or differentiation as well as by focusing on a narrow or industry
pn pn pn pn pn pn pn pn pn pn pn pn pn pn pn
wide market segment.
pn pn
Difficulty: 2 Medium pn pn
Topic: Strategy and the Strategic Management Process
p n pn pn pn pn pn
Learning Objective: 01- pn p n
02 The strategic management process and its three interrelated and principal activities.
pn pn pn pn pn pn pn pn pn pn pn
Bloom's: Understand AACS p n pn
B: Analytical Thinking
p n pn
Accessibility: Keyboard Navigation p n pn
9) The three primary participants in corporate governance are: (1) the shareholders, (2) the
pn pn pn pn pn pn pn pn pn pn pn pn pn
management (led by the chief executive officer), and (3) the employees.
pn pn pn pn pn pn pn pn pn pn
Answer: FALSE p n
Explanation: The primary participants are: (1) the shareholders, (2) the management (led by the ch
p n pn pn pn pn pn pn pn pn pn pn pn pn pn
ief executive officer), and (3) the board of directors.
pn pn pn pn pn pn pn pn
Difficulty: 2 Medium pn pn
Topic: Corporate Governance
p n pn
Learning Objective: 01- pn p n
03 The strategic role of corporate governance and stakeholder management, as well as how "sym
pn pn pn pn pn pn pn pn pn pn pn pn pn pn
biosis" can be achieved among an organization's stakeholders. Bloom's: Understand
pn pn pn pn pn pn pn pn p n
AACSB: Knowledge Application Ac
p n pn pn
cessibility: Keyboard Navigation p n pn
