Test Bank for Strategic Management and Business Policy Globalization, Innovation and Sustainability, 16th edition By Thomas L. Wheelen, J. David Hunger, Alan N. Hoffman, Charles E. Bamford 2024 Chapter 1-13

Test $ u y
Bank
Strategic Management and Business Policy: Globalization,
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Innovation and Sustainability, Global Edition,
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Thomas L. WheelenJ David HungerAlan N.
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Hoffman
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16th edition
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,Strategic Management and Business Policy, 16e, Global Edition (Wheelen)
Chapter 1 Basic Concepts of Strategic Management

1) What was strategic management originally called?
A) Business policy
B) Planning
C) Marketing strategy
D) Short-term planning
E) Operational planning
Answer: A
Difficulty: Easy
Learning Obj.: 1.1: Discuss the benefits of strategic management
AACSB: Application of knowledge

2) Research suggests that strategic management evolves through four sequential phases in
corporations. The first phase is
A) externally oriented planning.
B) b asic financial planning.
C) i nternally oriented planning.
D) forecast-based planning.
E) strategic management.
Answer: B
Difficulty: Easy
Learning Obj.: 1.1: Discuss the benefits of strategic management
AACSB: Application of knowledge

3) The time horizon involved with regard to forecast-based planning is usually
A) one year.
B) o ne quarter.
C) t hree to five years.
D) less than one month.
E) five to ten years.
Answer: C
Difficulty: Easy
Learning Obj.: 1.1: Discuss the benefits of strategic management
AACSB: Application of knowledge

4) A difference between basic financial planning and forecast-based planning is
A) the time horizon is shorter in forecast-based planning.
B) f orecast-based planning incorporates environmental data and extrapolates current trends.
C) b asic financial planning utilizes consultants with sophisticated techniques.
D) basic financial planning utilizes scenarios and contingency strategies.
E) basic financial planning relies heavily on input from lower levels in the organization.
Answer: B
Difficulty: Moderate
Learning Obj.: 1.1: Discuss the benefits of strategic management
AACSB: Analytical thinking

,5) Top-down planning that emphasizes formal strategy formulation $ u y $ u y $ u y $ u y $ u y $ u y




and leaves the
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implementation issues
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management
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A) forecast-based planning. $ u y




B) externally oriented planning. $ u y $ u y




C) strategic management. $ u y




D) basic financial planning. $ u y $ u y




E) none of the $ u y $uy




above.
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Answer:
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B Difficulty: $ u y




Moderate
Learning Obj.: 1.1: Discuss the benefits of $ u y $ u y $ u y $ u y $ u y




strategic management
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AACSB: Application $uy $ u y




of knowledge
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6) In the final phase of$ u y
strategic management, strategic $ u y $ u y $ u y $ u y $ u y $ u y $ u y
information $ u y
is
available to
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A) people throughout the organization. $ u y $ u y $ u y




B) the top management responsible
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decision-making. $ u y $ u y $ u y $ u y




C) middle management. $ u y




D) operational personnel. $ u y




E) only those responsible for $ u y $ u y $ u y




implementing the strategy.
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Answer: A $ u y $uy $ u y




Difficulty: Moderate
Learning Obj.: 1.1: Discuss the benefits of $ u y $ u y $ u y $ u y $ u y




strategic management
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AACSB: Application $uy $ u y




of knowledge
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7) In a survey of 50 corporations,
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which of the following
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was
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rated as one of the three top $ u
benefits
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of strategic $ u y $ u y $ u y $uy $ u y $ u y $ u y $ u y $ u y




management?
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A) Clearer sense of strategic direction for the firm $ u y $ u y $ u y $ u y $ u y $ u y $ u y




B) Higher levels of employee motivation $ u y $ u y $ u y $ u y




C) Higher levels of job satisfaction $ u y $ u y $ u y $ u y




D) Improved productivity $ u y




E) Lower employee $uy




turnover Answer: A
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Difficulty:
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Moderate
Learning Obj.: 1.1: Discuss the benefits of $ u y $ u y $ u y $ u y $ u y




strategic management
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AACSB: Application $uy $ u y




of knowledge
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8) When an organization is involved in formal strategic planning, which
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is not $ u y $ u y




one of the strategic questions
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that an organization
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generally may $ u y $ u y $ u y $ u y $ u y $ u y $ u y




ask
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itself? $ u y




A) Where is the organization now? $ u y $ u y $ u y $ u y




B) Are we on target to hit our
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financial objectives next year? $ u y $ u y $ u y $ u y $ u y $ u y $ u y $ u y $ u y




C) If no changes are$
made,
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where
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will the organization
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be in $ u y $ u y $ u y $ u y $ u y $ u y $ u y $ u y




one year? $ u y $ u y

, D) If the evaluation
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is negative,
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what specific $ u y $ u y $ u y $ u y $ u y
actions $ u y
should
management
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take? $ u y




E) If no changes are made, where will the
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organization be in 10 years?
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Answer: B
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Difficulty: Moderate
Learning Obj.: 1.1: Discuss the benefits of
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strategic management
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AACSB:
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thinking
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