Strategic Management: Text and Cases, 9e (Dess)
BN BN BN BN BN BN BN
Chapter 1 BN B N Strategic Management: Creating Competitive Advantages
BN BN BN BN
1) Lands' End's failure under the leadership of Ms. Frederica Marchionni was said to be
BN BN BN BN BN BN BN BN BN BN BN BN BN BN
a direct result of the quality of her leadership. According to the text, this would be an
BN BN BN BN BN BN BN BN BN BN BN BN BN BN BN BN BN
example of the "romantic" perspective of leadership.
BN BN BN BN BN BN
Answer: TRUEB N
Explanation: In the romantic view of leadership, the implicit assumption is that the leade
B N BN BN BN BN BN BN BN BN BN BN BN BN
r is the key force in determining an organization's success or lack thereof. Under Ms. M
BN BN BN BN BN BN BN BN BN BN BN BN BN BN BN
,archionni's leadership, the company reported a 19.5-million-
BN BN BN BN BN BN
dollar loss for 2016 after having reported a 73.8-million-
BN BN BN BN BN BN BN BN
dollar profit for the previous year under its previous CEO.
BN BN BN BN BN BN BN BN BN
Difficulty: 2 Medium BN BN
Topic: Strategy and the Strategic Management Process
B N BN BN BN BN BN
Learning Objective: 01-
BN B N
01 The definition of strategic management and its four key attributes. Bloom's: Understand
BN BN BN BN BN BN BN BN BN BN BN B N
AACSB: Analytical Thinking Acce
B N BN BN
ssibility: Keyboard Navigation
B N BN
2) Strategic management consists of the analyses, decisions, and actions an organiz
BN BN BN BN BN BN BN BN BN BN
ation undertakes in order to create and sustain competitive advantages.
BN BN BN BN BN BN BN BN BN
Answer: TRUE B N
Explanation: According to the textbook, this is the definition of strategic management.
B N BN BN BN BN BN BN BN BN BN BN BN
Difficulty: 1 Easy BN BN
Topic: Strategy and the Strategic Management Process
B N BN BN BN BN BN
Learning Objective: 01-
BN B N
01 The definition of strategic management and its four key attributes. Bloom's: Remember
BN BN BN BN BN BN BN BN BN BN BN B N
AACSB: Knowledge Application A
B N BN BN
ccessibility: Keyboard NavigationB N BN
3) Management innovations such as total quality, just-in-
BN BN BN BN BN BN
time, benchmarking, business process reengineering, and outsourcing are important but not
BN BN BN BN BN BN BN BN BN BN BN
enough for building sustainable competitive advantage.
BN BN BN BN BN
Answer: TRUE B N
Explanation: Sustainable competitive advantage cannot be achieved through operational e
B N BN BN BN BN BN BN BN BN
ffectiveness alone. Popular management innovations of the last two decades like total qua
BN BN BN BN BN BN BN BN BN BN BN BN
lity, just-in-
BN
time, benchmarking, business process reengineering, and outsourcing are concerned with o
BN BN BN BN BN BN BN BN BN BN
perational effectiveness.
BN
Difficulty: 2 Medium BN BN
Topic: Strategy and the Strategic Management Process
B N BN BN BN BN BN
Learning Objective: 01-
BN B N
01 The definition of strategic management and its four key attributes. Bloom's: Understand
BN BN BN BN BN BN BN BN BN BN BN B N
AACSB: Analytical Thinking Acce
B N BN BN
ssibility: Keyboard Navigation
B N BN
4) Trade-off decisions between effectiveness and efficiency are important in the practice of
BN BN BN BN BN BN BN BN BN BN BN
,strategic management. BN
Answer: TRUE B N
Explanation: The fourth attribute of strategic management is that it involves the recognit
B N BN BN BN BN BN BN BN BN BN BN BN
ion of trade-
BN BN
offs between effectiveness and efficiency. Some authors have referred to this as the diff
BN BN BN BN BN BN BN BN BN BN BN BN BN
erence between doing the right thing (effectiveness) and doing things right (efficiency).
BN BN BN BN BN BN BN BN BN BN BN
Difficulty: 2 Medium BN BN
Topic: Strategy and the Strategic Management Process
B N BN BN BN BN BN
Learning Objective: 01- BN B N
01 The definition of strategic management and its four key attributes. Bloom's: Understand
BN BN BN BN BN BN BN BN BN BN BN B N
AACSB: Analytical Thinking Acce B N BN BN
ssibility: Keyboard Navigation B N BN
5) According to Henry Mintzberg, a management scholar, most firms do not realize their o
BN BN BN BN BN BN BN BN BN BN BN BN BN
riginal intended strategy.
BN BN
Answer: TRUE B N
Explanation: Henry Mintzberg states that the intended strategy rarely survives in its origi
B N BN BN BN BN BN BN BN BN BN BN BN
nal form. Unforeseen environmental developments, unanticipated resource constraints, or ch
BN BN BN BN BN BN BN BN BN
anges in managerial preferences may result in at least some parts of the intended strategy
BN BN BN BN BN BN BN BN BN BN BN BN BN BN B
Nremaining unrealized. On the other hand, good managers will want to take advantage of
BN BN BN BN BN BN BN BN BN BN BN BN BN BN
a new opportunity presented by the environment, even if it was not part of the original s
BN BN BN BN BN BN BN BN BN BN BN BN BN BN BN BN
et of intentions.
BN BN
Difficulty: 2 Medium BN BN
Topic: Strategy and the Strategic Management Process
B N BN BN BN BN BN
Learning Objective: 01- BN B N
02 The strategic management process and its three interrelated and principal activities.
BN BN BN BN BN BN BN BN BN BN BN
Bloom's: Understand AACS B N BN
B: Analytical Thinking
B N BN
Accessibility: Keyboard Navigation B N BN
6) The final realized strategy of a firm is a combination of deliberate and time-
BN BN BN BN BN BN BN BN BN BN BN BN BN
tested strategies only.
BN BN
Answer: FALSE B N
Explanation: Realized strategy is that strategy of a firm in which organizational decisions
B N BN BN BN BN BN BN BN BN BN BN BN BN
are determined by both analysis and unforeseen environmental developments, unanticipated r
BN BN BN BN BN BN BN BN BN BN
esource constraints, and/or changes in managerial preferences.
BN BN BN BN BN BN
Difficulty: 2 Medium BN BN
Topic: Strategy and the Strategic Management Process
B N BN BN BN BN BN
Learning Objective: 01- BN B N
02 The strategic management process and its three interrelated and principal activities.
BN BN BN BN BN BN BN BN BN BN BN
Bloom's: Understand B N
AACSB: Knowledge Application A B N BN BN
ccessibility: Keyboard Navigation B N BN
, 7) Strategy analysis is the study of only the big picture external environments of the firm.
BN BN BN BN BN BN BN BN BN BN BN BN BN BN
Answer: FALSE B N
Explanation: Strategy analysis is the study of the external and internal environments of
B N BN BN BN BN BN BN BN BN BN BN BN BN
a firm, and their fit with organizational vision and goals.
BN BN BN BN BN BN BN BN BN
Difficulty: 2 Medium BN BN
Topic: Strategy and the Strategic Management Process
B N BN BN BN BN BN
Learning Objective: 01- BN B N
02 The strategic management process and its three interrelated and principal activities.
BN BN BN BN BN BN BN BN BN BN BN
Bloom's: Understand B N
AACSB: Knowledge Application A B N BN BN
ccessibility: Keyboard Navigation B N BN
8) All successful firms compete and outperform their rivals by developing bases for comp
BN BN BN BN BN BN BN BN BN BN BN BN
etitive advantage, which can be achieved only through cost leadership.
BN BN BN BN BN BN BN BN BN
Answer: FALSE B N
Explanation: Successful firms strive to develop bases for competitive advantage, which can
B N BN BN BN BN BN BN BN BN BN BN BN
be achieved through cost leadership and/or differentiation as well as by focusing on a narro
BN BN BN BN BN BN BN BN BN BN BN BN BN BN
w or industrywide market segment.
BN BN BN BN
Difficulty: 2 Medium BN BN
Topic: Strategy and the Strategic Management Process
B N BN BN BN BN BN
Learning Objective: 01- BN B N
02 The strategic management process and its three interrelated and principal activities.
BN BN BN BN BN BN BN BN BN BN BN
Bloom's: Understand AACS B N BN
B: Analytical Thinking
B N BN
Accessibility: Keyboard Navigation B N BN
9) The three primary participants in corporate governance are: (1) the shareholders, (
BN BN BN BN BN BN BN BN BN BN BN
2) the management (led by the chief executive officer), and (3) the employees.
BN BN BN BN BN BN BN BN BN BN BN BN
Answer: FALSE B N
Explanation: The primary participants are: (1) the shareholders, (2) the management (led by
B N BN BN BN BN BN BN BN BN BN BN BN
the chief executive officer), and (3) the board of directors.
BN BN BN BN BN BN BN BN BN BN
Difficulty: 2 Medium BN BN
Topic: Corporate Governance
B N BN
Learning Objective: 01- BN B N
03 The strategic role of corporate governance and stakeholder management, as well as ho
BN BN BN BN BN BN BN BN BN BN BN BN BN
w "symbiosis" can be achieved among an organization's stakeholders. Bloom's: Understand
BN BN BN BN BN BN BN BN BN B N
AACSB: Knowledge Application A B N BN BN
ccessibility: Keyboard Navigation B N BN
BN BN BN BN BN BN BN
Chapter 1 BN B N Strategic Management: Creating Competitive Advantages
BN BN BN BN
1) Lands' End's failure under the leadership of Ms. Frederica Marchionni was said to be
BN BN BN BN BN BN BN BN BN BN BN BN BN BN
a direct result of the quality of her leadership. According to the text, this would be an
BN BN BN BN BN BN BN BN BN BN BN BN BN BN BN BN BN
example of the "romantic" perspective of leadership.
BN BN BN BN BN BN
Answer: TRUEB N
Explanation: In the romantic view of leadership, the implicit assumption is that the leade
B N BN BN BN BN BN BN BN BN BN BN BN BN
r is the key force in determining an organization's success or lack thereof. Under Ms. M
BN BN BN BN BN BN BN BN BN BN BN BN BN BN BN
,archionni's leadership, the company reported a 19.5-million-
BN BN BN BN BN BN
dollar loss for 2016 after having reported a 73.8-million-
BN BN BN BN BN BN BN BN
dollar profit for the previous year under its previous CEO.
BN BN BN BN BN BN BN BN BN
Difficulty: 2 Medium BN BN
Topic: Strategy and the Strategic Management Process
B N BN BN BN BN BN
Learning Objective: 01-
BN B N
01 The definition of strategic management and its four key attributes. Bloom's: Understand
BN BN BN BN BN BN BN BN BN BN BN B N
AACSB: Analytical Thinking Acce
B N BN BN
ssibility: Keyboard Navigation
B N BN
2) Strategic management consists of the analyses, decisions, and actions an organiz
BN BN BN BN BN BN BN BN BN BN
ation undertakes in order to create and sustain competitive advantages.
BN BN BN BN BN BN BN BN BN
Answer: TRUE B N
Explanation: According to the textbook, this is the definition of strategic management.
B N BN BN BN BN BN BN BN BN BN BN BN
Difficulty: 1 Easy BN BN
Topic: Strategy and the Strategic Management Process
B N BN BN BN BN BN
Learning Objective: 01-
BN B N
01 The definition of strategic management and its four key attributes. Bloom's: Remember
BN BN BN BN BN BN BN BN BN BN BN B N
AACSB: Knowledge Application A
B N BN BN
ccessibility: Keyboard NavigationB N BN
3) Management innovations such as total quality, just-in-
BN BN BN BN BN BN
time, benchmarking, business process reengineering, and outsourcing are important but not
BN BN BN BN BN BN BN BN BN BN BN
enough for building sustainable competitive advantage.
BN BN BN BN BN
Answer: TRUE B N
Explanation: Sustainable competitive advantage cannot be achieved through operational e
B N BN BN BN BN BN BN BN BN
ffectiveness alone. Popular management innovations of the last two decades like total qua
BN BN BN BN BN BN BN BN BN BN BN BN
lity, just-in-
BN
time, benchmarking, business process reengineering, and outsourcing are concerned with o
BN BN BN BN BN BN BN BN BN BN
perational effectiveness.
BN
Difficulty: 2 Medium BN BN
Topic: Strategy and the Strategic Management Process
B N BN BN BN BN BN
Learning Objective: 01-
BN B N
01 The definition of strategic management and its four key attributes. Bloom's: Understand
BN BN BN BN BN BN BN BN BN BN BN B N
AACSB: Analytical Thinking Acce
B N BN BN
ssibility: Keyboard Navigation
B N BN
4) Trade-off decisions between effectiveness and efficiency are important in the practice of
BN BN BN BN BN BN BN BN BN BN BN
,strategic management. BN
Answer: TRUE B N
Explanation: The fourth attribute of strategic management is that it involves the recognit
B N BN BN BN BN BN BN BN BN BN BN BN
ion of trade-
BN BN
offs between effectiveness and efficiency. Some authors have referred to this as the diff
BN BN BN BN BN BN BN BN BN BN BN BN BN
erence between doing the right thing (effectiveness) and doing things right (efficiency).
BN BN BN BN BN BN BN BN BN BN BN
Difficulty: 2 Medium BN BN
Topic: Strategy and the Strategic Management Process
B N BN BN BN BN BN
Learning Objective: 01- BN B N
01 The definition of strategic management and its four key attributes. Bloom's: Understand
BN BN BN BN BN BN BN BN BN BN BN B N
AACSB: Analytical Thinking Acce B N BN BN
ssibility: Keyboard Navigation B N BN
5) According to Henry Mintzberg, a management scholar, most firms do not realize their o
BN BN BN BN BN BN BN BN BN BN BN BN BN
riginal intended strategy.
BN BN
Answer: TRUE B N
Explanation: Henry Mintzberg states that the intended strategy rarely survives in its origi
B N BN BN BN BN BN BN BN BN BN BN BN
nal form. Unforeseen environmental developments, unanticipated resource constraints, or ch
BN BN BN BN BN BN BN BN BN
anges in managerial preferences may result in at least some parts of the intended strategy
BN BN BN BN BN BN BN BN BN BN BN BN BN BN B
Nremaining unrealized. On the other hand, good managers will want to take advantage of
BN BN BN BN BN BN BN BN BN BN BN BN BN BN
a new opportunity presented by the environment, even if it was not part of the original s
BN BN BN BN BN BN BN BN BN BN BN BN BN BN BN BN
et of intentions.
BN BN
Difficulty: 2 Medium BN BN
Topic: Strategy and the Strategic Management Process
B N BN BN BN BN BN
Learning Objective: 01- BN B N
02 The strategic management process and its three interrelated and principal activities.
BN BN BN BN BN BN BN BN BN BN BN
Bloom's: Understand AACS B N BN
B: Analytical Thinking
B N BN
Accessibility: Keyboard Navigation B N BN
6) The final realized strategy of a firm is a combination of deliberate and time-
BN BN BN BN BN BN BN BN BN BN BN BN BN
tested strategies only.
BN BN
Answer: FALSE B N
Explanation: Realized strategy is that strategy of a firm in which organizational decisions
B N BN BN BN BN BN BN BN BN BN BN BN BN
are determined by both analysis and unforeseen environmental developments, unanticipated r
BN BN BN BN BN BN BN BN BN BN
esource constraints, and/or changes in managerial preferences.
BN BN BN BN BN BN
Difficulty: 2 Medium BN BN
Topic: Strategy and the Strategic Management Process
B N BN BN BN BN BN
Learning Objective: 01- BN B N
02 The strategic management process and its three interrelated and principal activities.
BN BN BN BN BN BN BN BN BN BN BN
Bloom's: Understand B N
AACSB: Knowledge Application A B N BN BN
ccessibility: Keyboard Navigation B N BN
, 7) Strategy analysis is the study of only the big picture external environments of the firm.
BN BN BN BN BN BN BN BN BN BN BN BN BN BN
Answer: FALSE B N
Explanation: Strategy analysis is the study of the external and internal environments of
B N BN BN BN BN BN BN BN BN BN BN BN BN
a firm, and their fit with organizational vision and goals.
BN BN BN BN BN BN BN BN BN
Difficulty: 2 Medium BN BN
Topic: Strategy and the Strategic Management Process
B N BN BN BN BN BN
Learning Objective: 01- BN B N
02 The strategic management process and its three interrelated and principal activities.
BN BN BN BN BN BN BN BN BN BN BN
Bloom's: Understand B N
AACSB: Knowledge Application A B N BN BN
ccessibility: Keyboard Navigation B N BN
8) All successful firms compete and outperform their rivals by developing bases for comp
BN BN BN BN BN BN BN BN BN BN BN BN
etitive advantage, which can be achieved only through cost leadership.
BN BN BN BN BN BN BN BN BN
Answer: FALSE B N
Explanation: Successful firms strive to develop bases for competitive advantage, which can
B N BN BN BN BN BN BN BN BN BN BN BN
be achieved through cost leadership and/or differentiation as well as by focusing on a narro
BN BN BN BN BN BN BN BN BN BN BN BN BN BN
w or industrywide market segment.
BN BN BN BN
Difficulty: 2 Medium BN BN
Topic: Strategy and the Strategic Management Process
B N BN BN BN BN BN
Learning Objective: 01- BN B N
02 The strategic management process and its three interrelated and principal activities.
BN BN BN BN BN BN BN BN BN BN BN
Bloom's: Understand AACS B N BN
B: Analytical Thinking
B N BN
Accessibility: Keyboard Navigation B N BN
9) The three primary participants in corporate governance are: (1) the shareholders, (
BN BN BN BN BN BN BN BN BN BN BN
2) the management (led by the chief executive officer), and (3) the employees.
BN BN BN BN BN BN BN BN BN BN BN BN
Answer: FALSE B N
Explanation: The primary participants are: (1) the shareholders, (2) the management (led by
B N BN BN BN BN BN BN BN BN BN BN BN
the chief executive officer), and (3) the board of directors.
BN BN BN BN BN BN BN BN BN BN
Difficulty: 2 Medium BN BN
Topic: Corporate Governance
B N BN
Learning Objective: 01- BN B N
03 The strategic role of corporate governance and stakeholder management, as well as ho
BN BN BN BN BN BN BN BN BN BN BN BN BN
w "symbiosis" can be achieved among an organization's stakeholders. Bloom's: Understand
BN BN BN BN BN BN BN BN BN B N
AACSB: Knowledge Application A B N BN BN
ccessibility: Keyboard Navigation B N BN
