Strategy Managment
Chapter 8 Strategic Management
True/False Questions
THE IMPORTANCE OF STRATEGIC MANAGEMENT
1. Strategic management is the set of managerial decisions and actions that determines the short-term performance of an organization.
(False; moderate; p. 208)
2. “Strategic model” is a term that is often used in conjunction with strategic management and strategies.
(False; easy; p. 209)
3. The most fundamental questions about strategy address why firms, facing the same environmental conditions, have varying levels of performance.
(True; easy; p. 209)
THE STRATEGIC MANAGEMENT PROCESS
4. The first step in the strategic management process is analyzing the external environment.
(False; difficult; p. 210)
5. Within an industry, an environment can present opportunities to one organization and pose threats to another.
(True; moderate; p. 212)
6. Evaluating an organization’s intangible assets is part of doing an internal analysis in the strategic management process.
(True; easy; p. 212)
7. Activities that an organization does well or resources that it has available are called capabilities.
(False; easy; p. 212)
8. Exceptional or unique organizational resources are known as core capabilities.
(False; moderate; p. 212)
9. A strong organizational culture may act as a significant barrier to accepting any changes in organizational strategies.
(False; easy; p. 213)
10. SWOT analysis includes an analysis of an organization’s environmental opportunities and threats.
(True; easy; p. 214)
11. The final step in the strategic management process is implementing the objectives.
(False; easy; p. 216)
TYPES OF ORGANIZATIONAL STRATEGIES
12. Corporate-level strategies are developed for organizations that run more than one type of business.
(True; moderate; p. 217)
13. One method of implementing a growth strategy is to increase production capacity.
(True; moderate; p. 217)
14. A trucking company that grows by purchasing a chain of gasoline stations is engaged in horizontal
True/False Questions
THE IMPORTANCE OF STRATEGIC MANAGEMENT
1. Strategic management is the set of managerial decisions and actions that determines the short-term performance of an organization.
(False; moderate; p. 208)
2. “Strategic model” is a term that is often used in conjunction with strategic management and strategies.
(False; easy; p. 209)
3. The most fundamental questions about strategy address why firms, facing the same environmental conditions, have varying levels of performance.
(True; easy; p. 209)
THE STRATEGIC MANAGEMENT PROCESS
4. The first step in the strategic management process is analyzing the external environment.
(False; difficult; p. 210)
5. Within an industry, an environment can present opportunities to one organization and pose threats to another.
(True; moderate; p. 212)
6. Evaluating an organization’s intangible assets is part of doing an internal analysis in the strategic management process.
(True; easy; p. 212)
7. Activities that an organization does well or resources that it has available are called capabilities.
(False; easy; p. 212)
8. Exceptional or unique organizational resources are known as core capabilities.
(False; moderate; p. 212)
9. A strong organizational culture may act as a significant barrier to accepting any changes in organizational strategies.
(False; easy; p. 213)
10. SWOT analysis includes an analysis of an organization’s environmental opportunities and threats.
(True; easy; p. 214)
11. The final step in the strategic management process is implementing the objectives.
(False; easy; p. 216)
TYPES OF ORGANIZATIONAL STRATEGIES
12. Corporate-level strategies are developed for organizations that run more than one type of business.
(True; moderate; p. 217)
13. One method of implementing a growth strategy is to increase production capacity.
(True; moderate; p. 217)
14. A trucking company that grows by purchasing a chain of gasoline stations is engaged in horizontal