Question 1

Strategy-making is:

Accepted Answer

A)   primarily the responsibility of key executives rather than a task for a company's entire management team.
B)   more of a collaborative group effort that involves all managers and sometimes key employees,as opposed to being the function and responsibility of a few high-level executives.
C)   first and foremost the function and responsibility of a company's strategic planning staff.
D)   first and foremost the function and responsibility of a company's board of directors.
E)   first and foremost the function of a company's chief executive officer,who formulates strategic initiatives and submits them to the board of directors for approval.F) A) and C)
G) C) and D)

Question 2

The task of top executives when the company faces disruptive changes in its environment is to not only raise questions about the appropriateness of its direction and strategy but also to:

Accepted Answer

A)   know when to continue with the present corporate culture and when to shift to a different and better corporate culture.
B)   ferret out the causes and decide when adjustments are needed and what adjustments are needed for improved performance and operating excellence.
C)   figure out whether to arrive at decisions quickly or slowly in choosing among the various alternative adjustments.
D)   decide whether to try to fix the problems of poor strategy execution or simply shift to a strategy that is easier to execute correctly.
E)   decide how to identify the problems that need fixing.F) A) and E)
G) B) and D)

Question 3

A company's overall strategy:

Accepted Answer

A)   determines whether its strategic intent is proactive or reactive.
B)   is subject to being changed much less frequently than either its objectives or its mission statement and thus serves as the base of its strategy-making pyramid.
C)   should be based on a flexible strategic vision and strategic intent.
D)   is customarily reviewed and approved level-by-level by the company board of directors.
E)   is really a collection of strategic initiatives and actions devised by managers and key employees up and down the whole organizational hierarchy.F) A) and D)
G) None of the above

Question 4

Which of the following is an integral part of the managerial process of crafting and executing strategy?

Accepted Answer

A)   Developing a proven business model
B)   Deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage
C)   Setting objectives and using them as yardsticks for measuring the company's performance and progress
D)   Communicating the company's values and code of conduct to all employees
E)   Deciding on the company's strategic intentF) A) and D)
G) A) and B)

Question 5

The task of stitching together a strategy:

Accepted Answer

A)   entails addressing a series of hows: how to grow the business,how to please customers,how to outcompete rivals,how to respond to changing market conditions,and how to achieve strategic and financial objectives.
B)   is primarily an exercise in deciding which of several freshly emerging market opportunities to pursue.
C)   is mainly an exercise that should be dictated by what is comfortable to management from a risk perspective and what is acceptable in terms of capital requirements.
D)   requires trying to copy the strategies of industry leaders as closely as possible.
E)   is mainly an exercise in good planning.F) A) and B)
G) A) and C)

Question 6

Well-stated objectives are:

Accepted Answer

A)   quantifiable or measurable,and contain deadlines for achievement.
B)   succinct and concise so as to identify the company's risk and return options.
C)   broad and take into account views of all the stakeholders.
D)   directly related to the dividend payout ratio for stockholder returns.
E)   representative of customers' aspirations for company performance.F) B) and D)
G) C) and D)

Question 7

A company's strategic plan:

Accepted Answer

A)   maps out the company's history.
B)   links the company's financial targets to control mechanisms.
C)   outlines the competitive moves and approaches to be used in achieving the desired business results.
D)   focuses on offering a more appealing product than rivals.
E)   lists methods of making money in its chosen business.F) A) and C)
G) A) and E)

Question 8

Managers can deliberately set challenging performance targets at levels high enough to promote outstanding company performance by establishing:

Accepted Answer

A)   stretch objectives which challenge the organization to deliver stretch gains in performance.
B)   mainstay objectives that although are easily attainable,and the company is obligated to meet,they are designed to spur motivation in the workforce.
C)   financial objectives that drive standardization of cost-efficiency and unify stringent operating specifications.
D)   a specifically detailed and integrated model of operating policies,practices,and procedures.
E)   why the company does certain things in trying to please its customers.F) C) and E)
G) A) and B)

Question 9

Isabelle is in the process of setting financial and strategic objectives for her marketing company.She realizes she needs to add short-term and longer-term performance targets.Is it important to include short-term and long-term objectives at this stage? Which one is more important? Explain.

Accepted Answer

A company's set of financial and strateg...

Question 10

A company should not couch its mission in terms of making a profit because a profit is more correctly an:

Accepted Answer

A)   obligation and a reason for what a company does.
B)   objective and a result of what a company does.
C)   outlay and a rationale for what a company does.
D)   obligation and a responsibility for what a company does.
E)   outflow and a right of what a company does.F) D) and E)
G) All of the above

Question 11

The key duties of a company's board of directors in the strategy-making,strategy-executing process include:

Accepted Answer

A)   coming up with compelling strategy proposals of their own to debate against those put forward by top management.
B)   overseeing the company's financial accounting and financial reporting practices and evaluating the caliber of senior executives' strategy-making/strategy-executing skills.
C)   taking the lead in developing the company's business model and strategic vision.
D)   taking the lead in formulating the company's strategic plan but then delegating the task of implementing and executing the strategic plan to the company's CEO and other senior executives.
E)   approving the company's operating strategies,functional-area strategies,business strategy,and overall corporate strategy.F) D) and E)
G) All of the above

Question 12

What a company's top executives are saying about where the company is headed long term and about what the company's future product-market-customer mix will be:

Accepted Answer

A)   indicates what kind of business model the company is going to have in the future.
B)   constitutes the strategic vision for the company.
C)   signals what the firm's financial strategy will be.
D)   serves to define the company's present scope of operation.
E)   indicates what kind of products the company will offer in the future.F) B) and E)
G) B) and C)

Question 13

A well-conceived strategic vision helps prepare a company for the future.True or false? Explain and justify your answer.

Accepted Answer

A well-conceived strategic vision is dis...

Question 14

Perhaps the most important benefit of a vivid,engaging,and convincing strategic vision is:

Accepted Answer

A)   helping gain managerial consensus on what resources must be developed to successfully achieve strategic objectives.
B)   uniting company personnel behind managerial efforts to get the company moving in the intended direction.
C)   helping justify the company's mission of making a profit.
D)   helping company personnel understand the logic of the company's business model.
E)   keeping company personnel well-informed.F) A) and C)
G) C) and E)

Question 15

Functional-area strategies:

Accepted Answer

A)   concern the actions,approaches,and practices to be employed in managing particular functions within a business.
B)   specify what actions a company should take to resolve specific strategic issues and problems.
C)   are normally crafted by operating-level managers.
D)   are concerned with how to unify the firm's several different operating strategies into a cohesive whole.
E)   are normally crafted by the company's CEO and other senior executives.F) A) and D)
G) A) and E)

Question 16

Business strategy concerns:

Accepted Answer

A)   how to gain and sustain a competitive advantage for a single line of business.
B)   defining what set of businesses to be in and why.
C)   selecting a business model to use in pursuing business objectives.
D)   selecting a set of stretch financial and strategic objectives for a particular line of business.
E)   choosing the most appropriate strategic intent for a specific line of business.F) B) and C)
G) A) and D)

Question 17

Explain why an organization needs a strategic vision.What purpose does a strategic vision serve?

Accepted Answer

Top management's views and conclusions a...

Question 18

Which of the following questions is NOT something that company managers should consider in choosing to pursue one strategic course or directional path versus another?

Accepted Answer

A)   Are changing market and competitive conditions acting to enhance or weaken the company's business outlook?
B)   Is the company stretching its resources too thinly by trying to compete in too many markets or segments,some of which are unprofitable?
C)   Will our present business generate sufficient growth and profitability in the years ahead to please shareholders?
D)   What market opportunities should the company pursue and which ones should not be pursued?
E)   Do we have a better business model than key rivals?F) A) and B)
G) B) and E)

Question 19

What are the duties of a company's board of directors in the strategy-making,strategy-executing process?

Accepted Answer

A company's board of directors has four ...

Question 20

In a single-business company,the strategy-making hierarchy consists of:

Accepted Answer

A)   business strategy,divisional strategies,and departmental strategies.
B)   business strategy,functional strategies,and operating strategies.
C)   business strategy and operating strategy.
D)   managerial strategy,business strategy,and divisional strategies.
E)   corporate strategy,divisional strategies,and departmental strategies.F) A) and C)
G) A) and B)

Exam 2: Charting a Companys Direction: Its Vision, Mission, Objectives, Andstrategy

In a single-business company,the strategy-making hierarchy consists of:

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Explain why an organization needs a strategic vision.What purpose does a strategic vision serve?

Correct AnswerverifiedTop management's views and conclusions a...View AnswerShow Answer

Business strategy concerns:

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Managers can deliberately set challenging performance targets at levels high enough to promote outstanding company performance by establishing:

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The task of stitching together a strategy:

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A company's overall strategy:

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A well-conceived strategic vision helps prepare a company for the future.True or false? Explain and justify your answer.

Correct AnswerverifiedA well-conceived strategic vision is dis...View AnswerShow Answer

The key duties of a company's board of directors in the strategy-making,strategy-executing process include:

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Well-stated objectives are:

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Functional-area strategies:

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Strategy-making is:

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Which of the following is an integral part of the managerial process of crafting and executing strategy?

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Perhaps the most important benefit of a vivid,engaging,and convincing strategic vision is:

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The task of top executives when the company faces disruptive changes in its environment is to not only raise questions about the appropriateness of its direction and strategy but also to:

Correct AnswerverifiedShow Answer

Which of the following questions is NOT something that company managers should consider in choosing to pursue one strategic course or directional path versus another?

Correct AnswerverifiedShow Answer

A company should not couch its mission in terms of making a profit because a profit is more correctly an:

Correct AnswerverifiedShow Answer

What a company's top executives are saying about where the company is headed long term and about what the company's future product-market-customer mix will be:

Correct AnswerverifiedShow Answer

Isabelle is in the process of setting financial and strategic objectives for her marketing company.She realizes she needs to add short-term and longer-term performance targets.Is it important to include short-term and long-term objectives at this stage? Which one is more important? Explain.

Correct AnswerverifiedA company's set of financial and strateg...View AnswerShow Answer

What are the duties of a company's board of directors in the strategy-making,strategy-executing process?

Correct AnswerverifiedA company's board of directors has four ...View AnswerShow Answer

A company's strategic plan:

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Top management's views and conclusions a...
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A well-conceived strategic vision is dis...
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A company's set of financial and strateg...
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A company's board of directors has four ...
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