,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 res
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ult of the quality of her leadership. According to the text, this would be an example of the "romanti
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c" perspective of leadership.
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Answer: TRUE s t
Explanation: In the romantic view of leadership, the implicit assumption is that the leader is the ke
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y force in determining an organization's success or lack thereof. Under Ms. Marchionni's leadershi
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p, the company reported a 19.5-million-dollar loss for 2016 after having reported a 73.8-million-
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dollar profit for the previous year under its previous CEO.
st st st st st st st st st
Difficulty: 2 Medium st st
Topic: Strategy and the Strategic Management Process
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Learning Objective: 01- st s t
01 The definition of strategic management and its four key attributes. Bloom's: Understand
st st st st st st st st st st st s t
AACSB: Analytical Thinking Accessi s t st st
bility: Keyboard Navigation s t st
2) Strategic management consists of the analyses, decisions, and actions an organization un
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dertakes in order to create and sustain competitive advantages.
st st st st st st st st
Answer: TRUE s t
Explanation: According to the textbook, this is the definition of strategic management. Difficulty
s t st st st st st st st st st st st
: 1 Easy
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Topic: Strategy and the Strategic Management Process
s t st st st st st
Learning Objective: 01- st s t
01 The definition of strategic management and its four key attributes. Bloom's: Remember
st st st st st st st st st st st s t
AACSB: Knowledge Application Acc s t st st
essibility: Keyboard Navigation s t st
3) Management innovations such as total quality, just-in- st st st st st st
time, benchmarking, business process reengineering, and outsourcing are important but not enough
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for building sustainable competitive advantage.
st st st st
Answer: TRUE s t
Explanation: Sustainable competitive advantage cannot be achieved through operational effectiv
s t st st st st st st st st
eness alone. Popular management innovations of the last two decades like total quality, just-in-
st st st st st st st st st st st st st
time, benchmarking, business process reengineering, and outsourcing are concerned with operation
st st st st st st st st st st
al effectiveness.
st
Difficulty: 2 Medium st st
Topic: Strategy and the Strategic Management Process
s t st st st st st
Learning Objective: 01- st s t
01 The definition of strategic management and its four key attributes. Bloom's: Understand
st st st st st st st st st st st s t
AACSB: Analytical Thinking Accessi s t st st
bility: Keyboard Navigation s t st
4) Trade-off decisions between effectiveness and efficiency are important in the practice of
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,strategic management. st
Answer: TRUE s t
Explanation: The fourth attribute of strategic management is that it involves the recognition of tra
s t st st st st st st st st st st st st st
de-
offs between effectiveness and efficiency. Some authors have referred to this as the difference bet
st st st st st st st st st st st st st st
ween doing the right thing (effectiveness) and doing things right (efficiency).
st st st st st st st st st st
Difficulty: 2 Medium st st
Topic: Strategy and the Strategic Management Process
s t st st st st st
Learning Objective: 01- st s t
01 The definition of strategic management and its four key attributes. Bloom's: Understand
st st st st st st st st st st st s t
AACSB: Analytical Thinking Accessi s t st st
bility: Keyboard Navigation s t st
5) According to Henry Mintzberg, a management scholar, most firms do not realize their original int
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ended strategy. st
Answer: TRUE s t
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 manage
st st st st st st st st st
rial preferences may result in at least some parts of the intended strategy remaining unrealized. On t
st st st st st st st st st st st st st st st st
he other hand, good managers will want to take advantage of a new opportunity presented by the en
st st st st st st st st st st st st st st st st st
vironment, even if it was not part of the original set of intentions. st st st st st st st st st st st st
Difficulty: 2 Medium st st
Topic: Strategy and the Strategic Management Process
s t st st st st st
Learning Objective: 01- st s t
02 The strategic management process and its three interrelated and principal activities.
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Bloom's: Understand AACSB s t st
: Analytical Thinking
s t st
Accessibility: Keyboard Navigation s t st
6) The final realized strategy of a firm is a combination of deliberate and time-
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tested strategies only. st st
Answer: FALSE s t
Explanation: Realized strategy is that strategy of a firm in which organizational decisions are determ
s t st st st st st st st st st st st st st
ined by both analysis and unforeseen environmental developments, unanticipated resource constraint
st st st st st st st st st st
s, and/or changes in managerial preferences.
st st st st st
Difficulty: 2 Medium st st
Topic: Strategy and the Strategic Management Process
s t st st st st st
Learning Objective: 01- st s t
02 The strategic management process and its three interrelated and principal activities.
st st st st st st st st st st st
Bloom's: Understand s t
AACSB: Knowledge Application Acc s t st st
essibility: Keyboard Navigation s t st
, 7) Strategy analysis is the study of only the big picture external environments of the firm.
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Answer: FALSE s t
Explanation: Strategy analysis is the study of the external and internal environments of a firm, an
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d their fit with organizational vision and goals.
st st st st st st st
Difficulty: 2 Medium st st
Topic: Strategy and the Strategic Management Process
s t st st st st st
Learning Objective: 01- st s t
02 The strategic management process and its three interrelated and principal activities.
st st st st st st st st st st st
Bloom's: Understand s t
AACSB: Knowledge Application Acc s t st st
essibility: Keyboard Navigation s t st
8) All successful firms compete and outperform their rivals by developing bases for competitive ad
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vantage, which can be achieved only through cost leadership.
st st st st st st st st
Answer: FALSE s t
Explanation: Successful firms strive to develop bases for competitive advantage, which can be achie
s t st st st st st st st st st st st st
ved through cost leadership and/or differentiation as well as by focusing on a narrow or industrywide
st st st st st st st st st st st st st st st st
market segment. st
Difficulty: 2 Medium st st
Topic: Strategy and the Strategic Management Process
s t st st st st st
Learning Objective: 01- st s t
02 The strategic management process and its three interrelated and principal activities.
st st st st st st st st st st st
Bloom's: Understand AACSB s t st
: Analytical Thinking
s t st
Accessibility: Keyboard Navigation s t st
9) The three primary participants in corporate governance are: (1) the shareholders, (2) the ma
st st st st st st st st st st st st st
nagement (led by the chief executive officer), and (3) the employees.
st st st st st st st st st st
Answer: FALSE s t
Explanation: The primary participants are: (1) the shareholders, (2) the management (led by the chief
s t st st st st st st st st st st st st st st
executive officer), and (3) the board of directors.
st st st st st st st
Difficulty: 2 Medium st st
Topic: Corporate Governance
s t st
Learning Objective: 01- st s t
03 The strategic role of corporate governance and stakeholder management, as well as how "symbio
st st st st st st st st st st st st st st
sis" can be achieved among an organization's stakeholders. Bloom's: Understand
st st st st st st st st s t
AACSB: Knowledge Application Acc s t st st
essibility: Keyboard Navigation s t st
st st st st st st
Chapter 1 Strategic Management: Creating Competitive Advantages
st s t st st st st
1) Lands' End's failure under the leadership of Ms. Frederica Marchionni was said to be a direct res
st st st st st st st st st st st st st st st st
ult of the quality of her leadership. According to the text, this would be an example of the "romanti
st st st st st st st st st st st st st st st st st st
c" perspective of leadership.
st st st
Answer: TRUE s t
Explanation: In the romantic view of leadership, the implicit assumption is that the leader is the ke
s t st st st st st st st st st st st st st st st
y force in determining an organization's success or lack thereof. Under Ms. Marchionni's leadershi
st st st st st st st st st st st st st
p, the company reported a 19.5-million-dollar loss for 2016 after having reported a 73.8-million-
st st st st st st st st st st st st st
dollar profit for the previous year under its previous CEO.
st st st st st st st st st
Difficulty: 2 Medium st st
Topic: Strategy and the Strategic Management Process
s t st st st st st
Learning Objective: 01- st s t
01 The definition of strategic management and its four key attributes. Bloom's: Understand
st st st st st st st st st st st s t
AACSB: Analytical Thinking Accessi s t st st
bility: Keyboard Navigation s t st
2) Strategic management consists of the analyses, decisions, and actions an organization un
st st st st st st st st st st st
dertakes in order to create and sustain competitive advantages.
st st st st st st st st
Answer: TRUE s t
Explanation: According to the textbook, this is the definition of strategic management. Difficulty
s t st st st st st st st st st st st
: 1 Easy
st st
Topic: Strategy and the Strategic Management Process
s t st st st st st
Learning Objective: 01- st s t
01 The definition of strategic management and its four key attributes. Bloom's: Remember
st st st st st st st st st st st s t
AACSB: Knowledge Application Acc s t st st
essibility: Keyboard Navigation s t st
3) Management innovations such as total quality, just-in- st st st st st st
time, benchmarking, business process reengineering, and outsourcing are important but not enough
st st st st st st st st st st st st
for building sustainable competitive advantage.
st st st st
Answer: TRUE s t
Explanation: Sustainable competitive advantage cannot be achieved through operational effectiv
s t st st st st st st st st
eness alone. Popular management innovations of the last two decades like total quality, just-in-
st st st st st st st st st st st st st
time, benchmarking, business process reengineering, and outsourcing are concerned with operation
st st st st st st st st st st
al effectiveness.
st
Difficulty: 2 Medium st st
Topic: Strategy and the Strategic Management Process
s t st st st st st
Learning Objective: 01- st s t
01 The definition of strategic management and its four key attributes. Bloom's: Understand
st st st st st st st st st st st s t
AACSB: Analytical Thinking Accessi s t st st
bility: Keyboard Navigation s t st
4) Trade-off decisions between effectiveness and efficiency are important in the practice of
st st st st st st st st st st st
,strategic management. st
Answer: TRUE s t
Explanation: The fourth attribute of strategic management is that it involves the recognition of tra
s t st st st st st st st st st st st st st
de-
offs between effectiveness and efficiency. Some authors have referred to this as the difference bet
st st st st st st st st st st st st st st
ween doing the right thing (effectiveness) and doing things right (efficiency).
st st st st st st st st st st
Difficulty: 2 Medium st st
Topic: Strategy and the Strategic Management Process
s t st st st st st
Learning Objective: 01- st s t
01 The definition of strategic management and its four key attributes. Bloom's: Understand
st st st st st st st st st st st s t
AACSB: Analytical Thinking Accessi s t st st
bility: Keyboard Navigation s t st
5) According to Henry Mintzberg, a management scholar, most firms do not realize their original int
st st st st st st st st st st st st st st
ended strategy. st
Answer: TRUE s t
Explanation: Henry Mintzberg states that the intended strategy rarely survives in its original form.
s t st st st st st st st st st st st st st
Unforeseen environmental developments, unanticipated resource constraints, or changes in manage
st st st st st st st st st
rial preferences may result in at least some parts of the intended strategy remaining unrealized. On t
st st st st st st st st st st st st st st st st
he other hand, good managers will want to take advantage of a new opportunity presented by the en
st st st st st st st st st st st st st st st st st
vironment, even if it was not part of the original set of intentions. st st st st st st st st st st st st
Difficulty: 2 Medium st st
Topic: Strategy and the Strategic Management Process
s t st st st st st
Learning Objective: 01- st s t
02 The strategic management process and its three interrelated and principal activities.
st st st st st st st st st st st
Bloom's: Understand AACSB s t st
: Analytical Thinking
s t st
Accessibility: Keyboard Navigation s t st
6) The final realized strategy of a firm is a combination of deliberate and time-
st st st st st st st st st st st st st
tested strategies only. st st
Answer: FALSE s t
Explanation: Realized strategy is that strategy of a firm in which organizational decisions are determ
s t st st st st st st st st st st st st st
ined by both analysis and unforeseen environmental developments, unanticipated resource constraint
st st st st st st st st st st
s, and/or changes in managerial preferences.
st st st st st
Difficulty: 2 Medium st st
Topic: Strategy and the Strategic Management Process
s t st st st st st
Learning Objective: 01- st s t
02 The strategic management process and its three interrelated and principal activities.
st st st st st st st st st st st
Bloom's: Understand s t
AACSB: Knowledge Application Acc s t st st
essibility: Keyboard Navigation s t st
, 7) Strategy analysis is the study of only the big picture external environments of the firm.
st st st st st st st st st st st st st st
Answer: FALSE s t
Explanation: Strategy analysis is the study of the external and internal environments of a firm, an
s t st st st st st st st st st st st st st st
d their fit with organizational vision and goals.
st st st st st st st
Difficulty: 2 Medium st st
Topic: Strategy and the Strategic Management Process
s t st st st st st
Learning Objective: 01- st s t
02 The strategic management process and its three interrelated and principal activities.
st st st st st st st st st st st
Bloom's: Understand s t
AACSB: Knowledge Application Acc s t st st
essibility: Keyboard Navigation s t st
8) All successful firms compete and outperform their rivals by developing bases for competitive ad
st st st st st st st st st st st st st
vantage, which can be achieved only through cost leadership.
st st st st st st st st
Answer: FALSE s t
Explanation: Successful firms strive to develop bases for competitive advantage, which can be achie
s t st st st st st st st st st st st st
ved through cost leadership and/or differentiation as well as by focusing on a narrow or industrywide
st st st st st st st st st st st st st st st st
market segment. st
Difficulty: 2 Medium st st
Topic: Strategy and the Strategic Management Process
s t st st st st st
Learning Objective: 01- st s t
02 The strategic management process and its three interrelated and principal activities.
st st st st st st st st st st st
Bloom's: Understand AACSB s t st
: Analytical Thinking
s t st
Accessibility: Keyboard Navigation s t st
9) The three primary participants in corporate governance are: (1) the shareholders, (2) the ma
st st st st st st st st st st st st st
nagement (led by the chief executive officer), and (3) the employees.
st st st st st st st st st st
Answer: FALSE s t
Explanation: The primary participants are: (1) the shareholders, (2) the management (led by the chief
s t st st st st st st st st st st st st st st
executive officer), and (3) the board of directors.
st st st st st st st
Difficulty: 2 Medium st st
Topic: Corporate Governance
s t st
Learning Objective: 01- st s t
03 The strategic role of corporate governance and stakeholder management, as well as how "symbio
st st st st st st st st st st st st st st
sis" can be achieved among an organization's stakeholders. Bloom's: Understand
st st st st st st st st s t
AACSB: Knowledge Application Acc s t st st
essibility: Keyboard Navigation s t st
