test bank

Questions Chapter 01
The Concept of Strategy

True False Questions

Question title

Question stem

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Difficulty
1 Easy
2 Medium
3 Hard

Reference link

Topic
TF01.01
Strategy is a detailed plan and a program of instructions that every member of the organization must carefully follow to ensure success
F
1
Introduction and objectives
Strategy definition
TF01.02
Strategy is a unifying theme and a general guideline
T
1
Introduction and objectives
Strategy definition
TF01.03
For most firms, luck appears to be the largest factor explaining whether they fail or succeed
F
2
The role of strategy in success
Strategy definition
TF01.04
Executing a good strategy well often determines the extent of a firm’s success
T
1
The role of strategy in success
Strategy role
TF01.05
A sound strategy requires four components: simple, short term goals; deep understanding of competitive environment; objective appraisal of resources; and effective implementation of the strategy
F
2
The role of strategy in success
Strategy definition
TF01.06
The basic strategy framework links a firm to its owners – the shareholders
F
1
The basic framework for strategy analysis
Strategy definition
TF01.07
The role of business strategy can be described as the selection of resources a firm chooses to achieve its long-term goals and the way it organizes those resources into activities
T
2
Strategic management today
Corporate and business strategy

Strategy role
TF01.08
The conceptual problem with using SWOT analyses is that most people ignore deep analysis of internal factors and underestimate their own weaknesses
F
3
A brief history of business strategy
From corporate planning to strategic management
Capsule 1.5
Analytical tool

TF01.09
The concept of “Strategic fit” describes the gap or fit between the environment and a firm’s strategy
T
1
The basic framework for strategy analysis
Strategic fit
Strategy definition