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