Chapter 6 Management Exam
10. Which of the following statements about strategy and strategic positioning is true?
A) Strategic position emerges from three sources.
B) Strategy requires trade-offs in competing.
C) A company has to choose not only what strategy to follow but what strategy not to follow.
D) Strategy involves creating a "fit" among activities.
E) All of the above statements about strategy and strategic positioning are true. - correct
answer-Answer: E
11. Research on strategic planning positively affected firm performance in
A) only large firms.
B) only large and medium-sized firms.
C) only medium-sized firms.
D) only medium-sized and small firms.
E) firms of all sizes. - correct answer-Answer: E
12. According to the text/ a small firm is likely to benefit significantly from strategic planning
A) regardless of the nature of its industry.
B) when it is in a very competitive industry.
C) when it is in a very non-competitive industry.
D) when it is in a very stable industry.
E) when it is in a very small market. - correct answer-Answer: B
13. Zach manages a small video rental store. In order to determine if strategic planning will
be likely to help his business/ Zach should primarily assess
A) how many competitors he has.
B) foot traffic by his location.
C) his profitability in the prior six months.
D) industry trends.
E) all of the above. - correct answer-Answer: A
14. The most important thing a good mission statement should express is the
A) organization's attitude toward its employees.
B) geographical areas in which the firm will compete.
C) firm's basic technology.
D) firm's purpose.
E) firm's major strengths. - correct answer-Answer: D
15. How many steps are in the strategic-management process?
A) 1
B) 2
C) 3
D) 4
E) 5 - correct answer-Answer: E
, 16. Which of the following is the second stage in the strategic-management process?
A) formulate the strategic plans
B) maintain strategic control
C) establish the grand strategy
D) establish the mission and vision
E) carry out the strategic plans - correct answer-Answer: C
17. Which of the following is the final step of the strategic management process?
A) formulate the strategic plans
B) maintain strategic control
C) establish the grand strategy
D) establish the mission and vision
E) carry out the strategic plans - correct answer-Answer: B
18. Which of the following is a question that should be answered by a company's mission
statement?
A) Does it inspire enthusiasm and encourage commitment?
B) Does it set standards of excellence?
C) Is it appropriate for the organization?
D) Is it well articulated?
E) What is our basic technology? - correct answer-Answer: E
19. Which of the following is a question that should be answered by a company's vision
statement?
A) What is our commitment to economic objectives?
B) Who are our customers?
C) What are our major products or services?
D) What are our basic beliefs/ values/ aspirations/ and philosophical priorities?
E) Is it ambitious? - correct answer-Answer: E
2. Wal-Mart is guided by the following credo: "Find out what customers want/ then provide it
to them as cheaply and quickly as possible." This is Wal-Mart's
A) mission.
B) vision.
C) strategy.
D) forecast.
E) central contingency plan. - correct answer-Answer: C
20. The "grand strategies" are
A) cost-leadership/ differentiation/ cost focus/ focused differentiation.
B) "SWOT."
C) growth/ stability/ defensive .
D) defender/ prospector/ analyzer/ reactor.
E) introduction/ growth/ maturity/ decline. - correct answer-Answer: C
21. Techno Tools is selling off land/ buildings and some of its product inventory. It is pursuing
which of these strategies?
A) growth
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