Strategic Management
CHAPTER 1
The Nature of Strategic Management
True/False
Introduction
1. The underpinnings of strategic management hinge on managers gaining an understanding of competitors, markets, prices, suppliers, distributors, governments, creditors, shareholders and customers worldwide.
Ans: T Page: 4
2. Although the Internet has increased in popularity, it has actually led to increases in company expenses.
Ans: F Page 4
3. Consumer e-commerce is five times greater than business-to-business e-commerce.
Ans: F Page 4
What Is Strategic Management?
4. Optimizing for tomorrow the trends of today is the purpose of strategic management.
Ans: F Page: 5
5. Even though useful, strategic planning has been cast aside by corporate America since the early 1990s.
Ans: F Page: 5
Resource allocation is included in strategy-formulation activities.
Ans: T Page: 5
6. The terms strategic management and strategy implementation are synonymous.
Ans: F Page: 5
7. A vision statement is, in essence, a company’s game plan.
Ans: F Page: 5
8. Strategy implementation is often considered to be the most difficult stage in the strategic-management process because it requires personal discipline, commitment and sacrifice.
Ans: T Page: 6
9. The final stage in strategic management is strategy implementation.
Ans: F Page 6
10. Strategy formulation, implementation and evaluation activities occur at three hierarchical levels in a large diversified organization: corporate, divisional and functional.
Ans: T Page: 6
11. One of the fundamental strategy evaluation activities is reviewing external and internal factors that are the bases for current strategies.
Ans: T Page: 6
12. An objective, logical, systematic approach for making major decisions in an organization is a way to describe the strategic-management process.
Ans: T Page: 7
13. Strategic
The Nature of Strategic Management
True/False
Introduction
1. The underpinnings of strategic management hinge on managers gaining an understanding of competitors, markets, prices, suppliers, distributors, governments, creditors, shareholders and customers worldwide.
Ans: T Page: 4
2. Although the Internet has increased in popularity, it has actually led to increases in company expenses.
Ans: F Page 4
3. Consumer e-commerce is five times greater than business-to-business e-commerce.
Ans: F Page 4
What Is Strategic Management?
4. Optimizing for tomorrow the trends of today is the purpose of strategic management.
Ans: F Page: 5
5. Even though useful, strategic planning has been cast aside by corporate America since the early 1990s.
Ans: F Page: 5
Resource allocation is included in strategy-formulation activities.
Ans: T Page: 5
6. The terms strategic management and strategy implementation are synonymous.
Ans: F Page: 5
7. A vision statement is, in essence, a company’s game plan.
Ans: F Page: 5
8. Strategy implementation is often considered to be the most difficult stage in the strategic-management process because it requires personal discipline, commitment and sacrifice.
Ans: T Page: 6
9. The final stage in strategic management is strategy implementation.
Ans: F Page 6
10. Strategy formulation, implementation and evaluation activities occur at three hierarchical levels in a large diversified organization: corporate, divisional and functional.
Ans: T Page: 6
11. One of the fundamental strategy evaluation activities is reviewing external and internal factors that are the bases for current strategies.
Ans: T Page: 6
12. An objective, logical, systematic approach for making major decisions in an organization is a way to describe the strategic-management process.
Ans: T Page: 7
13. Strategic