Which of the following is a reason some firms do not engage in strategic planning?
CHAPTER 1 Show 2.Although the Internet has increased in popularity, it has actually led to increases in
company expenses. 3.Consumer e-commerce is five times greater than business-to-business e-commerce. What Is Strategic Management? 5.Even though useful, strategic planning has been cast aside by corporate America since the early 1990s. 6.Resource allocation is included in strategy-formulation activities. 7.The terms strategic management and strategy implementation are synonymous. 8.A vision statement is, in essence, a company’s game plan. 9.Strategy implementation is often considered to be the most difficult stage in the strategic-management process because it requires personal
discipline, commitment and sacrifice. 10.The final stage in strategic management is strategy implementation. 11.Strategy formulation, implementation and evaluation activities occur at three hierarchical levels in a large diversified organization: corporate, divisional and functional. 12.One of the fundamental strategy evaluation activities is reviewing external and internal
factors that are the bases for current strategies. 13.An objective, logical, systematic approach for making major decisions in an organization is a way to describe the strategic-management process. 15.Analytical
and intuitive thinking should complement each other. 16.According to Albert Einstein, “Knowledge is far more important than intuition.” 17.Management by intuition can be defined as operating from the “I’ve-already-made-up-my-mind-don’t-bother- me-with-the-facts mode.” 18.By monitoring external events, companies should be able to identify when change is
required. Key Terms in Strategic Management 20.Once a firm acquires a competitive advantage, they are usually able to sustain the competitive advantage for an extended period of time. 21.Newspaper companies in the United States
provide a good example of how a company can sustain a competitive advantage over the long term. 22.In order for a firm to achieve sustained competitive advantage, a firm must continually adapt to changes in external trends and events and effectively formulate, implement, and evaluate strategies that capitalize upon those factors. 23.Strategists are usually found in higher levels of management and have considerable
authority for decision-making in the firm. 24.The middle manager is the most visible and critical strategic manager. 25.All strategists have similar attitudes, values, ethics and concerns for social responsibility. 26.A vision statement answers the question, “What is our business?,” whereas a mission statement answers, “What do we want to become?” 27.In the last five years, the position of chief strategy officer (CSO) has diminished in comparison to other top management ranks of many organizations. 28.A clear mission statement describes the values and priorities of an organization. 29.As of 2004, Wal-Mart was the largest corporation in the world. 30.Strengths and weaknesses are determined
relative to competitors. 31.In a multidivisional firm, objectives should be established for the overall company and not for each division. 32.Objectives should be measurable, quantitative, challenging, realistic, consistent and prioritized. 33.Annual objectives are long-term milestones that organizations must achieve to reach short-term objectives. 34.Annual objectives are especially important in strategy formulation. 35.According to research, a healthier workforce can more effectively and efficiently implement strategies. The Strategic-Management Model 37.Once an effective strategy is designed, modifications are rarely required. 38.Application of the strategic-management process is typically more formal in larger and well-established organizations. Benefits of Strategic Management 40.The changes that occurred at Disney after Robert Iger took over as CEO exemplifies the fact that more and more organizations are centralizing the strategic-management process. 41.Firms with planning systems more closely resembling strategic-management theory generally exhibit superior long-term financial performance relative to their industry. 42.Low-performing
firms typically underestimate their competitor’s strengths and overestimate their own firm’s strengths. 43.According to Greenley, strategic management provides a cooperative, integrated and enthusiastic approach to tackling problems and opportunities. Why Some Firms Do No Strategic Planning 45.Crises and fires in an organization allows managers the training and time for effective strategic planning. Pitfalls in Doing Strategic Planning 47.Managers must be very formal in
strategic planning because formality induces flexibility and creativity. Guidelines for Effective Strategic Management 49.Strategic-management must be a self-reflective learning process that familiarizes managers and employees in the organization with key
strategic issues and feasible alternatives for resolving those issues. Business Ethics and Strategic Management 51.Merely having a code of ethics is not sufficient to ensure ethical business behavior. 52.An
integral part of the responsibility of all managers is to provide ethical leadership by constant example and demonstration. Comparing Business and Military Strategy The Nature of Global Competition 55.One risk in international operations is that nationalistic factions could seize the operations. Conclusion 57.Nonprofit organizations have less need for strategic management because
they are not interested in making a profit. 58.Firms can be more proactive with strategic management. Introduction 60. The one factor that has most significantly impacted the nature and core of buying
and selling in nearly all industries has been What Is Strategic Management? 62. ____________ is used to refer to strategic formulation, implementation and evaluation, with ______________ referring only to strategic formulation. 63. During what stage of strategic management are a firm’s specific internal strengths and weaknesses determined? 64. An important activity in __________ is taking corrective action. 65.
What step in the strategic development process involves mobilizing employees and managers to put strategies into action? 66. What types of skills are especially critical for successful strategy implementation? 67.
Which phase of strategic management is called the action phase? 68. __________ is not a strategy-implementation activity. 69. Strategy
evaluation is necessary because 70. Which statement best describes intuition? 71. _________ and _________ are external forces transforming business and society today. 72. Anything that a firm does especially well
compared to rival firms is referred to as: Key Terms in Strategic Management 74. Which individuals are most responsible for the success and failure of an organization? 75.
The first step in strategic planning is generally: 76. What are enduring statements of purpose that distinguish one business from other similar firms? 77.
The largest company in the world is: 78. Usually, external opportunities and threats are: 79.
Specific results an organization seeks to achieve in pursuing its basic mission are: 80. Internal __________ are activities in an organization that are performed especially well. 81. What are the means by which long-term objectives will be
achieved? 82. Long-term objectives should be all of the following except: 83. __________ can best be described as short-term in nature. 84. In which phase of strategic management are annual objectives especially important? 85. What are guides to decision making? The Strategic-Management Model 87. Which of the following is not included in the strategic management model? Benefits of Strategic Management 89. The act of
strengthening employees’ sense of effectiveness by encouraging and rewarding them to participate in decision-making and exercise initiative and imagination is referred to as: 90. How do line managers become “owners” of the strategy? 91. The changes that occurred when Robert Iger took over the reigns at Disney, demonstrate which current trend in organizations? 92. According to research, organizations using strategic management are __________ than those that do not. 93.
According to Greenley, strategic management offers all of these benefits except that Why Some Firms Do No
Strategic Planning Pitfalls in Doing Strategic Planning 96. What is not a pitfall an organization should avoid in strategic planning? 97. Which of the following statements is false? Business Ethics and Strategic Management 99. A (n) ____________ can provide a basis on which policies can be devised to guide daily decisions and behavior at the work site. 100.Because they must take the __________ of the firm, strategists’ salaries are high compared to those of other individuals in the
organization. 101.What can be created by ethics training and an ethics culture? 102.Which of these business actions
is (are) always considered to be unethical? 103.Ethical standards come out of __________ in a final analysis. Comparing Business and
Military Strategy 105.Military strategy is based on an assumption of __________, whereas business strategy is based on an assumption of __________. The Nature of Global Competition 107.A(n) __________ refers to a firm investing in international operations, while the _________ is the country where that business is
conducted. 108.The greatest advantage of international operations is: 109.All of these are potential disadvantages of an international operation except: Essay Questions 111.Which stage in the strategic-management process is most difficult? Explain why. 112.Explain the
relationship between strategic management and competitive advantage for firms. How can a firm achieve sustained competitive advantage? 113.Define what strategists are. Describe what they do in an organization. 114.Define and discuss the differences between vision and mission statements. 115.Discuss some forces that influence the formality of strategic-management systems. 116.List 10 major benefits of
strategic management, as stated by Greenley. 117.Give at least seven reasons why some firms do no strategic planning. 118.What are the pitfalls in strategic planning that management in an organization should watch out for or avoid? Identify any five pitfalls. 119.Explain the significance of the ISO (International Organization for Standardization). What are the
purposes of ISO 9000, ISO 14000, and ISO 14001? 120.Explain what Drucker means when he says, “Trees die from the top.” 121.Compare and contrast business and military strategy. 122.What are the advantages and disadvantages of having international operations?
Explain. There are also numerous potential disadvantages of having internal operations: What are the reasons why strategic planning may not occur?Here are some reasons why strategic initiatives and plans fail.. Unrealistic goals or lack of focus and resources. ... . Plans are overly complex. ... . Financial estimates are significantly inaccurate. ... . Plans are based on insufficient data. ... . Inflexible/undefined team roles and responsibilities.. Which of the following is not a purpose of strategic planning?The correct option is: D) conducting a job analysis
Strategic planning as a process includes: Defining and developing a mission.
Which of the following is not a part of strategic planning?The correct answer is Family Planning Programme.
Which of the following is a pitfall of strategic planning?Common challenges of strategic planning
There are four main challenges when it comes to strategic planning: lack of ownership, poor communication, lack of alignment, and slow adoption. It's important to understand what's at the core of these challenges before we dive into solutions.
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