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Exam (elaborations) Strategic Management MG4037 Contemporary Strategy Analysis ( Batch 6) Pages 60 to 80.
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c. A key theme in the US Navy’s strategic planning processd. The ability to cut costs through moving production to offshore locations.
42. When the environment becomes more turbulent and unpredictable:
[See p.15]
a. Strategy becomes less important than intuition
b. Strategy becomes an increasingly important as a source of direction*
c. External consultants need to play a greater role in strategy making
d. Strategy becomes an impossible exercise
43. Strategy can help decision making by:
[See p.16]
a. Expanding the range of decision alternatives under consideration
b. Ensuring that strategic decisions are restricted to the CEO and top management team
c. Facilitating the use of analytical tools*
d. All of these
44. The two questions of “where” and “how” to compete define:
[See p.18]
a. a firm’s corporate and business strategies*
b. a firm’s strategic management process
c. a firm’s vision and mission
d. a firm’s values and culture
45. The main difference between corporate level strategy and business level strategy is:
[See pp.17-18]
a. Corporate strategy defines the scope of a firm’s activities, while business strategy focuses on how to beat the
competition in specific product markets*
b. Corporate strategy defines a firm’s overall structure, while business strategy describes its actions
c. Corporate strategy comprises the overall strategic plan, while business strategy focuses on implementing that
strategy in each product market
,d. Corporate level strategy is concerned with long term goals, while business level strategy focuses on short term
competitiveness
46. When identifying a company’s strategy, its statements of a strategy found in its public documents need to be:
[See pp.17-18]
a. Treated with skepticism
b. Checked against the company’s decisions and actions*
c. Interpreted using modern techniques of textual analysis
d. Checked against its statements of vision and mission
47. Business strategy defines:
[See p.19]
a. the way a firm competes in a particular industry or market
b. the way a firm establishes a competitive advantage over its rivals within a specific industry or market
c. Both of the above*
d. Neither of the above
48. The division of responsibility between corporate and business strategy is consistent with the following principle:
[See p.19]
a. The hierarchical nature of authority within organizations
b. Corporate level strategy is the domain of headquarters executives; divisional managers are responsible for
business strategies*
c. Corporate level strategy is the domain of the parent company; functional managers are responsible for business
strategies
d. Delegation is the key to reconciling responsiveness and adaptability with overall integration
49. The relationship between design and emergence in strategy making is best described as:
[See p.23]
a. An interactive process between strategic planners and line managers
b. A tension between the forces of centralization and decentralization
c. A process in which intended strategy is adapted as it is implemented*
d. An example of the agency problem in which the interests of salaried managers displace the interests of owners
, 50. Strategy improves decision-making by:
[See pp.16-17]
a. Reducing the number of choices being considered
b. Integrating and pooling the knowledge of different members of the organization
c. Facilitating the use of analytic tools
d. All of these*
51. The main value of analytical approaches to strategy formulation is:
[See pp.23-24]
a. To identify the optimal strategy that a firm should adopt.
b. To provide understanding of strategic issues.*
c. To substitute for manager’s intuition and creativity.
d. To ensure that strategic decision making is assigned to the capable people within the organization
52. The extent to which an organization’s strategy is determined by decentralized emergence rather than by
centralized design depends mainly upon:
[See pp.22-23]
a. How turbulent and unpredictable is the external environment of the organization.*
b. How the organization is structured.
c. The commitment of the organization to experimentation.
d. Whether the organization has a formalized process of strategic planning.
53. The applicability of the tools and techniques of strategy analysis to not-for-profit organizations is:
[See p.26-28]
a. Greater for organizations that face competition than those that do not*
b. Greater for organizations that charge for their services than those which do not
c. Greater for organizations that compete to for funding than those which compete for customers.
d. Is severely limited by the lack of a profit motive
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