Strategic Management: Text and Cases, 9e (Dess)
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Chapter 1 MK M K Strategic Management: Creating Competitive Advantages
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1) Lands' End's failure under the leadership of Ms. Frederica Marchionni was said to b
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e a direct result of the quality of her leadership. According to the text, this would be
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an example of the "romantic" perspective of leadership.
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Answer: TRUE M K
Explanation: In the romantic view of leadership, the implicit assumption is that the lea
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der is the key force in determining an organization's success or lack thereof. Under M
MK MK MK MK MK MK MK MK MK MK MK MK MK MK
,s. Marchionni's leadership, the company reported a 19.5-million-
MK MK MK MK MK MK MK
dollar loss for 2016 after having reported a 73.8-million-
MK MK MK MK MK MK MK MK
dollar profit for the previous year under its previous CEO.
MK MK MK MK MK MK MK MK MK
Difficulty: 2 Medium MK MK
Topic: Strategy and the Strategic Management Process
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Learning Objective: 01-
MK M K
01 The definition of strategic management and its four key attributes. Bloom's: Understan
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d
AACSB: Analytical Thinking Acc
M K MK MK
essibility: Keyboard Navigation
M K MK
2) Strategic management consists of the analyses, decisions, and actions an organ
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ization undertakes in order to create and sustain competitive advantages.
MK MK MK MK MK MK MK MK MK
Answer: TRUE M K
Explanation: According to the textbook, this is the definition of strategic management.
M K MK MK MK MK MK MK MK MK MK MK
MKDifficulty: 1 Easy MK MK
Topic: Strategy and the Strategic Management Process
M K MK MK MK MK MK
Learning Objective: 01-
MK M K
01 The definition of strategic management and its four key attributes. Bloom's: Remembe
MK MK MK MK MK MK MK MK MK MK MK M K
r
AACSB: Knowledge Application
M K MK MK
Accessibility: Keyboard Navigation M K MK
3) Management innovations such as total quality, just-in-
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time, benchmarking, business process reengineering, and outsourcing are important but no
MK MK MK MK MK MK MK MK MK MK
t enough for building sustainable competitive advantage.
MK MK MK MK MK MK
Answer: TRUE M K
Explanation: Sustainable competitive advantage cannot be achieved through operational
M K MK MK MK MK MK MK MK MK
effectiveness alone. Popular management innovations of the last two decades like total
MK MK MK MK MK MK MK MK MK MK MK MK
quality, just-in-MK
time, benchmarking, business process reengineering, and outsourcing are concerned with
MK MK MK MK MK MK MK MK MK MK
operational effectiveness. MK
Difficulty: 2 Medium MK MK
Topic: Strategy and the Strategic Management Process
M K MK MK MK MK MK
Learning Objective: 01-
MK M K
01 The definition of strategic management and its four key attributes. Bloom's: Understan
MK MK MK MK MK MK MK MK MK MK MK M K
d
AACSB: Analytical Thinking Acc
M K MK MK
essibility: Keyboard Navigation
M K MK
4) Trade-off decisions between effectiveness and efficiency are important in the practice of
MK MK MK MK MK MK MK MK MK MK MK
,strategic management. MK
Answer: TRUE M K
Explanation: The fourth attribute of strategic management is that it involves the recog
M K MK MK MK MK MK MK MK MK MK MK MK
nition of trade- MK MK
offs between effectiveness and efficiency. Some authors have referred to this as the d
MK MK MK MK MK MK MK MK MK MK MK MK MK
ifference between doing the right thing (effectiveness) and doing things right (efficien
MK MK MK MK MK MK MK MK MK MK MK
cy).
Difficulty: 2 Medium MK MK
Topic: Strategy and the Strategic Management Process
M K MK MK MK MK MK
Learning Objective: 01- MK M K
01 The definition of strategic management and its four key attributes. Bloom's: Understan
MK MK MK MK MK MK MK MK MK MK MK M K
d
AACSB: Analytical Thinking AccM K MK MK
essibility: Keyboard Navigation M K MK
5) According to Henry Mintzberg, a management scholar, most firms do not realize their
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original intended strategy.
K MK MK
Answer: TRUE M K
Explanation: Henry Mintzberg states that the intended strategy rarely survives in its ori
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ginal form. Unforeseen environmental developments, unanticipated resource constraints, or
MK MK MK MK MK MK MK MK M
changes in managerial preferences may result in at least some parts of the intended str
K MK MK MK MK MK MK MK MK MK MK MK MK MK MK
ategy remaining unrealized. On the other hand, good managers will want to take advant
MK MK MK MK MK MK MK MK MK MK MK MK MK
age of a new opportunity presented by the environment, even if it was not part of the
MK MK MK MK MK MK MK MK MK MK MK MK MK MK MK MK M
Koriginal set of intentions. MK MK MK
Difficulty: 2 Medium MK MK
Topic: Strategy and the Strategic Management Process
M K MK MK MK MK MK
Learning Objective: 01- MK M K
02 The strategic management process and its three interrelated and principal activities.
MK MK MK MK MK MK MK MK MK MK MK
Bloom's: Understand AAC M K MK
SB: Analytical Thinking
M K MK
Accessibility: Keyboard Navigation M K MK
6) The final realized strategy of a firm is a combination of deliberate and time-
MK MK MK MK MK MK MK MK MK MK MK MK MK
tested strategies only.
MK MK
Answer: FALSE M K
Explanation: Realized strategy is that strategy of a firm in which organizational decision
M K MK MK MK MK MK MK MK MK MK MK MK
s are determined by both analysis and unforeseen environmental developments, unanticipate
MK MK MK MK MK MK MK MK MK MK
d resource constraints, and/or changes in managerial preferences.
MK MK MK MK MK MK MK
Difficulty: 2 Medium MK MK
Topic: Strategy and the Strategic Management Process
M K MK MK MK MK MK
Learning Objective: 01- MK M K
02 The strategic management process and its three interrelated and principal activities.
MK MK MK MK MK MK MK MK MK MK MK
Bloom's: Understand M K
AACSB: Knowledge Application M K MK MK
Accessibility: Keyboard Navigation M K MK
, 7) Strategy analysis is the study of only the big picture external environments of the firm.
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Answer: FALSE M K
Explanation: Strategy analysis is the study of the external and internal environments o
M K MK MK MK MK MK MK MK MK MK MK MK
f a firm, and their fit with organizational vision and goals.
MK MK MK MK MK MK MK MK MK MK
Difficulty: 2 Medium MK MK
Topic: Strategy and the Strategic Management Process
M K MK MK MK MK MK
Learning Objective: 01- MK M K
02 The strategic management process and its three interrelated and principal activities.
MK MK MK MK MK MK MK MK MK MK MK
Bloom's: Understand M K
AACSB: Knowledge Application M K MK MK
Accessibility: Keyboard Navigation M K MK
8) All successful firms compete and outperform their rivals by developing bases for co
MK MK MK MK MK MK MK MK MK MK MK MK
mpetitive advantage, which can be achieved only through cost leadership.
MK MK MK MK MK MK MK MK MK
Answer: FALSE M K
Explanation: Successful firms strive to develop bases for competitive advantage, which ca
M K MK MK MK MK MK MK MK MK MK MK
n be achieved through cost leadership and/or differentiation as well as by focusing on a
MK MK MK MK MK MK MK MK MK MK MK MK MK MK MK
narrow or industrywide market segment.
MK MK MK MK
Difficulty: 2 Medium MK MK
Topic: Strategy and the Strategic Management Process
M K MK MK MK MK MK
Learning Objective: 01- MK M K
02 The strategic management process and its three interrelated and principal activities.
MK MK MK MK MK MK MK MK MK MK MK
Bloom's: Understand AAC M K MK
SB: Analytical Thinking
M K MK
Accessibility: Keyboard Navigation M K MK
9) The three primary participants in corporate governance are: (1) the shareholders,
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(2) the management (led by the chief executive officer), and (3) the employees.
K MK MK MK MK MK MK MK MK MK MK MK MK
Answer: FALSE M K
Explanation: The primary participants are: (1) the shareholders, (2) the management (led
M K MK MK MK MK MK MK MK MK MK MK MK
by the chief executive officer), and (3) the board of directors.
MK MK MK MK MK MK MK MK MK MK
Difficulty: 2 Medium MK MK
Topic: Corporate Governance
M K MK
Learning Objective: 01- MK M K
03 The strategic role of corporate governance and stakeholder management, as well as h
MK MK MK MK MK MK MK MK MK MK MK MK MK
ow "symbiosis" can be achieved among an organization's stakeholders. Bloom's: Underst
MK MK MK MK MK MK MK MK MK M K
and
AACSB: Knowledge Application M K MK MK
Accessibility: Keyboard Navigation M K MK
MK MK MK MK MK MK MK
Chapter 1 MK M K Strategic Management: Creating Competitive Advantages
MK MK MK MK
1) Lands' End's failure under the leadership of Ms. Frederica Marchionni was said to b
MK MK MK MK MK MK MK MK MK MK MK MK MK
e a direct result of the quality of her leadership. According to the text, this would be
MK MK MK MK MK MK MK MK MK MK MK MK MK MK MK MK
an example of the "romantic" perspective of leadership.
MK MK MK MK MK MK MK MK
Answer: TRUE M K
Explanation: In the romantic view of leadership, the implicit assumption is that the lea
M K MK MK MK MK MK MK MK MK MK MK MK MK
der is the key force in determining an organization's success or lack thereof. Under M
MK MK MK MK MK MK MK MK MK MK MK MK MK MK
,s. Marchionni's leadership, the company reported a 19.5-million-
MK MK MK MK MK MK MK
dollar loss for 2016 after having reported a 73.8-million-
MK MK MK MK MK MK MK MK
dollar profit for the previous year under its previous CEO.
MK MK MK MK MK MK MK MK MK
Difficulty: 2 Medium MK MK
Topic: Strategy and the Strategic Management Process
M K MK MK MK MK MK
Learning Objective: 01-
MK M K
01 The definition of strategic management and its four key attributes. Bloom's: Understan
MK MK MK MK MK MK MK MK MK MK MK M K
d
AACSB: Analytical Thinking Acc
M K MK MK
essibility: Keyboard Navigation
M K MK
2) Strategic management consists of the analyses, decisions, and actions an organ
MK MK MK MK MK MK MK MK MK MK
ization undertakes in order to create and sustain competitive advantages.
MK MK MK MK MK MK MK MK MK
Answer: TRUE M K
Explanation: According to the textbook, this is the definition of strategic management.
M K MK MK MK MK MK MK MK MK MK MK
MKDifficulty: 1 Easy MK MK
Topic: Strategy and the Strategic Management Process
M K MK MK MK MK MK
Learning Objective: 01-
MK M K
01 The definition of strategic management and its four key attributes. Bloom's: Remembe
MK MK MK MK MK MK MK MK MK MK MK M K
r
AACSB: Knowledge Application
M K MK MK
Accessibility: Keyboard Navigation M K MK
3) Management innovations such as total quality, just-in-
MK MK MK MK MK MK
time, benchmarking, business process reengineering, and outsourcing are important but no
MK MK MK MK MK MK MK MK MK MK
t enough for building sustainable competitive advantage.
MK MK MK MK MK MK
Answer: TRUE M K
Explanation: Sustainable competitive advantage cannot be achieved through operational
M K MK MK MK MK MK MK MK MK
effectiveness alone. Popular management innovations of the last two decades like total
MK MK MK MK MK MK MK MK MK MK MK MK
quality, just-in-MK
time, benchmarking, business process reengineering, and outsourcing are concerned with
MK MK MK MK MK MK MK MK MK MK
operational effectiveness. MK
Difficulty: 2 Medium MK MK
Topic: Strategy and the Strategic Management Process
M K MK MK MK MK MK
Learning Objective: 01-
MK M K
01 The definition of strategic management and its four key attributes. Bloom's: Understan
MK MK MK MK MK MK MK MK MK MK MK M K
d
AACSB: Analytical Thinking Acc
M K MK MK
essibility: Keyboard Navigation
M K MK
4) Trade-off decisions between effectiveness and efficiency are important in the practice of
MK MK MK MK MK MK MK MK MK MK MK
,strategic management. MK
Answer: TRUE M K
Explanation: The fourth attribute of strategic management is that it involves the recog
M K MK MK MK MK MK MK MK MK MK MK MK
nition of trade- MK MK
offs between effectiveness and efficiency. Some authors have referred to this as the d
MK MK MK MK MK MK MK MK MK MK MK MK MK
ifference between doing the right thing (effectiveness) and doing things right (efficien
MK MK MK MK MK MK MK MK MK MK MK
cy).
Difficulty: 2 Medium MK MK
Topic: Strategy and the Strategic Management Process
M K MK MK MK MK MK
Learning Objective: 01- MK M K
01 The definition of strategic management and its four key attributes. Bloom's: Understan
MK MK MK MK MK MK MK MK MK MK MK M K
d
AACSB: Analytical Thinking AccM K MK MK
essibility: Keyboard Navigation M K MK
5) According to Henry Mintzberg, a management scholar, most firms do not realize their
MK MK MK MK MK MK MK MK MK MK MK MK M
original intended strategy.
K MK MK
Answer: TRUE M K
Explanation: Henry Mintzberg states that the intended strategy rarely survives in its ori
M K MK MK MK MK MK MK MK MK MK MK MK
ginal form. Unforeseen environmental developments, unanticipated resource constraints, or
MK MK MK MK MK MK MK MK M
changes in managerial preferences may result in at least some parts of the intended str
K MK MK MK MK MK MK MK MK MK MK MK MK MK MK
ategy remaining unrealized. On the other hand, good managers will want to take advant
MK MK MK MK MK MK MK MK MK MK MK MK MK
age of a new opportunity presented by the environment, even if it was not part of the
MK MK MK MK MK MK MK MK MK MK MK MK MK MK MK MK M
Koriginal set of intentions. MK MK MK
Difficulty: 2 Medium MK MK
Topic: Strategy and the Strategic Management Process
M K MK MK MK MK MK
Learning Objective: 01- MK M K
02 The strategic management process and its three interrelated and principal activities.
MK MK MK MK MK MK MK MK MK MK MK
Bloom's: Understand AAC M K MK
SB: Analytical Thinking
M K MK
Accessibility: Keyboard Navigation M K MK
6) The final realized strategy of a firm is a combination of deliberate and time-
MK MK MK MK MK MK MK MK MK MK MK MK MK
tested strategies only.
MK MK
Answer: FALSE M K
Explanation: Realized strategy is that strategy of a firm in which organizational decision
M K MK MK MK MK MK MK MK MK MK MK MK
s are determined by both analysis and unforeseen environmental developments, unanticipate
MK MK MK MK MK MK MK MK MK MK
d resource constraints, and/or changes in managerial preferences.
MK MK MK MK MK MK MK
Difficulty: 2 Medium MK MK
Topic: Strategy and the Strategic Management Process
M K MK MK MK MK MK
Learning Objective: 01- MK M K
02 The strategic management process and its three interrelated and principal activities.
MK MK MK MK MK MK MK MK MK MK MK
Bloom's: Understand M K
AACSB: Knowledge Application M K MK MK
Accessibility: Keyboard Navigation M K MK
, 7) Strategy analysis is the study of only the big picture external environments of the firm.
MK MK MK MK MK MK MK MK MK MK MK MK MK MK
Answer: FALSE M K
Explanation: Strategy analysis is the study of the external and internal environments o
M K MK MK MK MK MK MK MK MK MK MK MK
f a firm, and their fit with organizational vision and goals.
MK MK MK MK MK MK MK MK MK MK
Difficulty: 2 Medium MK MK
Topic: Strategy and the Strategic Management Process
M K MK MK MK MK MK
Learning Objective: 01- MK M K
02 The strategic management process and its three interrelated and principal activities.
MK MK MK MK MK MK MK MK MK MK MK
Bloom's: Understand M K
AACSB: Knowledge Application M K MK MK
Accessibility: Keyboard Navigation M K MK
8) All successful firms compete and outperform their rivals by developing bases for co
MK MK MK MK MK MK MK MK MK MK MK MK
mpetitive advantage, which can be achieved only through cost leadership.
MK MK MK MK MK MK MK MK MK
Answer: FALSE M K
Explanation: Successful firms strive to develop bases for competitive advantage, which ca
M K MK MK MK MK MK MK MK MK MK MK
n be achieved through cost leadership and/or differentiation as well as by focusing on a
MK MK MK MK MK MK MK MK MK MK MK MK MK MK MK
narrow or industrywide market segment.
MK MK MK MK
Difficulty: 2 Medium MK MK
Topic: Strategy and the Strategic Management Process
M K MK MK MK MK MK
Learning Objective: 01- MK M K
02 The strategic management process and its three interrelated and principal activities.
MK MK MK MK MK MK MK MK MK MK MK
Bloom's: Understand AAC M K MK
SB: Analytical Thinking
M K MK
Accessibility: Keyboard Navigation M K MK
9) The three primary participants in corporate governance are: (1) the shareholders,
MK MK MK MK MK MK MK MK MK MK M
(2) the management (led by the chief executive officer), and (3) the employees.
K MK MK MK MK MK MK MK MK MK MK MK MK
Answer: FALSE M K
Explanation: The primary participants are: (1) the shareholders, (2) the management (led
M K MK MK MK MK MK MK MK MK MK MK MK
by the chief executive officer), and (3) the board of directors.
MK MK MK MK MK MK MK MK MK MK
Difficulty: 2 Medium MK MK
Topic: Corporate Governance
M K MK
Learning Objective: 01- MK M K
03 The strategic role of corporate governance and stakeholder management, as well as h
MK MK MK MK MK MK MK MK MK MK MK MK MK
ow "symbiosis" can be achieved among an organization's stakeholders. Bloom's: Underst
MK MK MK MK MK MK MK MK MK M K
and
AACSB: Knowledge Application M K MK MK
Accessibility: Keyboard Navigation M K MK
