MGT 3830 Ch. 1-4 Exam Questions
With Correct Answers
Strategy today is essentially a detailed plan which every member of the organization must follow
to ensure success. - answer✔False
. Strategy is a unifying theme that gives coherence and direction to the actions and decisions of
an individual or an organization. - answer✔True
For most firms, although good luck may play a part, success is more likely to be a result of a
soundly grounded and well executed strategy. - answer✔T
Sound strategy and effective implementation largely determine the probability and extent of the
success of a firm. - answer✔T
A sound strategy relies on four factors: measurable short-term targets; sound understanding of
the competitive environment; objective appraisal of resources; and top down implementation of
strategic decisions. - answer✔F - long-term targets
Strategy has evolved from "strategy as a detailed plan" to become "strategy as direction" in the
early 21st century. - answer✔T
. Corporate strategy is also called business strategy, or competitive strategy. - answer✔F
Strategy is predominantly about countering short-term competition. - answer✔F- long term
Much can be learned about a firm's actual strategy by looking at where it invests most money,
and what products, services and technologies it is working on. - answer✔T
Some observers have noticed that there's only a weak link between a firm's intended or stated
strategy, and its actual or realized strategy - answer✔T
Strategy is fundamentally about:
a. Being better than rivals
b. Success in achieving long-term goals
c. Satisfying all stakeholders
a. A soundly formulated strategy and luck
b. An effectively formulated strategy and a strong awareness of the rivals' strengths
c. A clear understanding of the environment and strong political skills
d. A soundly formulated and effectively implemented strategy - answer✔d. A soundly
formulated and effectively implemented strategy
From the two illustrations describing key attributes of strategy at the beginning of the chapter,
four factors stand out:
a. Goals, environment, appraisal of resources, and social and cultural implications
b. Goals, internal and external analysis of the environment, effective implementation, and
awareness of rivals' strengths
c. Consistent goals, understanding the environment, objective appraisal of resources, and
effective implementation
d. Goals, environment, irreversibility of decision, and effective implementation - answer✔c.
Consistent goals, understanding the environment, objective appraisal of resources, and effective
implementation
Strategic goals should be:
a. Simple
b. Consistent
c. Long term
d. All of the above - answer✔d. All of the above
Appraising a firm's resources consists of:
a. Protecting the firm from its weaknesses and trying to reduce or eliminate them
b. Leveraging the firm's strengths to increase market share and profit
c. Being very realistic yet creative about what can be achieved with what you've got
d. Completing 360-degree analytical evaluations of top managers' strengths and weaknesses -
answer✔c. Being very realistic yet creative about what can be achieved with what you've got
The success of an organization in general, depends on the following:
d. The means by which organizations achieve their long-term objectives - answer✔d. The
means by which organizations achieve their long-term objectives
Corporate and Business strategy differ mainly in that:
a. Corporate Strategy has a broader scope, including decisions about which industries to operate
in
b. Business strategy is subordinate to corporate strategy
c. Both a and b
d. There is no real difference; they are the same thing - answer✔c. Both a and b`
Business strategy defines:
a. The way a firm competes in a particular industry or market
b. How a firm gains a competitive advantage over its rivals within a specific industry or market
c. Both a and b
d. Neither a nor b - answer✔c. Both a and b
Business strategy can be summarized as:
a. The means by which organisations achieve their long-term objectives
b. The means by which individuals achieve their objectives
c. The formal detailed plans used by organizations to guide their actions
d. When and where to compete? - answer✔a. Where and how to compete?
A mission statement:
a. is a statement of the company's values
b. is a basic statement of the organization's purpose
c. outlines what the company wants to be
d. articulates the company's competitive strategy - answer✔b. is a basic statement of the
organization's purpose
. In addition to just reading published information, to identify a firm's strategy you could
a. Identify where the company is making most of its investments
b. Identify where the company is doing most of its business
c. Find out what new products and services the company is putting most effort into
d. All of the above - answer✔d. All of the above
The shift in strategy from a plan to a direction leads to:
a. A downgrade its role in management
b. An overt quest for flexibility and responsiveness
c. A need for top managers' training
d. Less work for top managers - answer✔b. An overt quest for flexibility and responsiveness
As the environment becomes more turbulent, or unpredictable:
a. Strategy appears to not be very useful
b. Strategy remains just as vital a tool to navigate the firm through "stormy seas"
c. Strategy is put into the hands of external consultants
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