[Test Bank] Strategic Management: Text and Cases 10th Edition by Dess, McNamara, Eisner

24) According to the external control view of leadership, which of the following factors would not be considered an external factor that might positively or negatively affect a firm's success? A) economic downturns

B) governmental legislation

C) outbreak of war

D) company employee morale

Answer:  D

Explanation:  In the external control view of leadership, external factors are responsible for positively or negatively affecting company success. These external factors often are unanticipated and are not due to the company's leadership.

Difficulty: 2 Medium

Topic:  Strategy and the Strategic Management Process

Learning Objective:  01-01 The definition of strategic management and its four key attributes. Bloom's:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

25) According to the text, the strategic management process entails three ongoing processes. They are

A) analyses, actions, and synthesis. B) analyses, decisions, and actions. C) analyses, evaluation, and critique.

D) analyses, synthesis, and decisions.

Answer:  B

Explanation: The strategic management of an organization entails three ongoing processes:

analyses, decisions, and actions. Difficulty: 1 Easy

Topic:  Strategy and the Strategic Management Process

Learning Objective:  01-01 The definition of strategic management and its four key attributes. Bloom's:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

26) Management innovations such as total quality, benchmarking, and business process reengineering cannot lead to sustainable competitive advantage because

A) companies that have implemented these techniques have lost money. B) there is no proof that these techniques work.

C) they cost too much money and effort to implement. D) every company is trying to implement them.

Answer:  D

Explanation: The popular management innovations of the last two decades (total quality, just-in- time, benchmarking, business process reengineering and outsourcing) are all about operational effectiveness. Each of these is important, but none leads to sustainable competitive advantage because everyone is doing them. Strategy is all about being different.

Difficulty: 2 Medium

Topic:  Strategy and the Strategic Management Process

Learning Objective:  01-01 The definition of strategic management and its four key attributes. Bloom's:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

27) The organizational versus the individual rationality perspective suggests that objectives that are

A) good for a functional area are always good for the overall organization. B) good for the overall organization are always best for a functional area. C) best for a functional area may not be best for the overall organization. D) best for one functional area will never be best for all functional areas.

Answer:  C

Explanation: Strategic management is directed toward overall organizational goals and objectives. Effort must be directed at what is best for the total organization, not just a single functional area. Some authors have referred to this perspective as organizational versus individual rationality. What might look rational or ideal for one functional area, such as operations, may not be in the best interest of the overall firm.

Difficulty: 2 Medium

Topic:  Strategy and the Strategic Management Process

Learning Objective:  01-01 The definition of strategic management and its four key attributes. Bloom's:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

28) The four key attributes of strategic management include the idea that strategy must

A) be directed toward overall organizational goals and objectives. B) be focused only on long-term objectives.

C) be focused on only one specific area of an organization. D) focus only on competitor strengths.

Answer:  A

Explanation: The key attributes of strategic management are that it directs the organization toward overall goals and objectives, includes multiple stakeholders in decision making, needs to incorporate short-term and long-term perspectives, and recognizes trade-offs between efficiency and effectiveness.

Difficulty: 2 Medium

Topic:  Strategy and the Strategic Management Process

Learning Objective:  01-01 The definition of strategic management and its four key attributes. Bloom's:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

29) The four key attributes of strategic management include all of the following except

A) including multiple stakeholder interests in decision making. B) incorporating both short-term and long-term perspectives.

C) recognizing the trade-offs between effectiveness and efficiency. D) emphasis on the attainment of short-term objectives.

Answer:  D

Explanation: The key attributes of strategic management are that it directs the organization toward overall goals and objectives, includes multiple stakeholders in decision making, needs to incorporate short-term and long-term perspectives, and recognizes trade-offs between efficiency and effectiveness.

Difficulty: 1 Easy

Topic:  Strategy and the Strategic Management Process

Learning Objective:  01-01 The definition of strategic management and its four key attributes. Bloom's:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

30) Effectiveness is often defined as

A) doing things right.

B) stakeholder satisfaction. C) doing the right thing.

D) productivity enhancement.

Answer:  C

Explanation: Effectiveness is tailoring actions to the needs of an organization rather than wasting effort, or doing the right thing.

Difficulty: 1 Easy

Topic:  Strategy and the Strategic Management Process

Learning Objective:  01-01 The definition of strategic management and its four key attributes. Bloom's:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

31) In choosing to focus on stakeholders, which of the following will not lead to success for a manager?

A) shareholders and employees

B) employees and suppliers

C) customers and the community at large

D) customers only

Answer:  D

Explanation: Stakeholders are those individuals, groups, and organizations that have a stake in the success of the organization, including owners (shareholders in a publicly held corporation), employees, customers, suppliers, the community at large, and so on. Managers will not be successful if they focus on a single stakeholder.

Difficulty: 2 Medium

Topic:  Strategy and the Strategic Management Process

Learning Objective:  01-01 The definition of strategic management and its four key attributes. Bloom's:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation