1. Multiple Choice Questions True/False Questions Chapter 1 The Nature and Scope of Strategic Management

2. Multiple Choice Questions 1.When defining strategic management the most important thing to remember is that it is: a.Not as easy as you think b.Mainly the province of senior managers c.A living evolving process d.More conceptual than practical e.A way of determining responsibilities 2.As a general statement it can be said that the earliest strategic managers were generally involved in: a.the military b.ruling countries c.developing from craft to industrial situations d.the development of systems for large corporations e.any organisations that require management of large groups 1. c 2. a

3. Multiple Choice Questions 3.In recent years the teachings and writings of Sun Tzu have enjoyed a revival because of the perceived relevance to: a.the worldwide problems with terrorism b.the fact that his strategic teachings are timeless c.the ability to deal with competitors d.the emphasis on management structures e.none of the above 4.Which of the following was responsible for a model of strategy which attempted to create a balance between efficiency and effectiveness? a.Sun Tzu b.Max Weber c.Frederick Winslow Taylor d.Carl Von Clausewitz e.Adam Smith 3.b 4.d

4. Multiple Choice Questions 5.Which of the following developed systems which combined both the physical and psychological needs of workers? a.Max Weber b.Frederick Winslow Taylor c.Frank and Lillian Gilbreth d.Henri Fayol e.Adam Smith 6.Which of the following is not a feature of Max Weber ’ s ideal type of bureaucracy? a.Clearly defined hierarchical structures b.Efficiency and rationality c.Clearly defined psychological needs and profiles d.Clearly defined spheres of competences e.Clearly defined roles of responsibility 5. c 6. c

5. Multiple Choice Questions 7.Henry Mintzberg was responsible for developing a multidimensional approach to strategy based on the five Ps. Which of the following are the correct five Ps? a.Plan, ploy, pattern, position perspective b.Plan, plot, pattern, position perspective c.Plan, ploy, pattern, position performance d.Plan, ploy, pattern, participation perspective e.Passion, ploy, pattern, position perspective 8.Which of the following is not one of Porter ’ s five forces that impact on competition? a.New rivals entering the industry b.Competition amongst sellers in the industry c.A clearly defined management structure d.The bargaining power of buyers e.The bargaining power of suppliers 8. c 7. a

6. Multiple Choice Questions 9.An organisation's strategy: a.remains set in place longer than the mission and objectives b.generally forms over a period of time as events unfold c.tends to be formed at the same time the mission is developed and objectives are formulated d.is usually conceived at a single time when managers sit down and work out a comprehensive strategic plan for the next 3-5 years e.none of these is true 10. The primary focus of strategic management is: a.strategic analysis b.the total organisation c.strategy formulation d.strategy implementation e.competitive advantage. 10.b 9.b

7. Multiple Choice Questions 11. Which of the following applies to strategic issues? a.Require only top management decisions b.Consider only the organisation's external environment c.Future-oriented d.Concern allocation of small amounts of resources e.Do not have long-term impact on the organisation 12. Which of the following is not an advantage of strategic management? a.It provides organisations with a clearer sense of direction and purpose b.It helps improve the political, economic, social and technological environment of the organisation c.It helps orientate management decisions to relevant environmental conditions d.It helps organisations be proactive rather than reactive e.Organisations using it significantly outperform their own past results and the results of those organisations not using it 12.b 11. c

8. Multiple Choice Questions 13. Which of the following defines what business or businesses the firm is in or should be in? a.Business strategy b.Corporate strategy c.Functional strategy d.National strategy e.None of the above 14. Which of the following defines how each individual business unit will attempt to achieve its mission? a.Business strategy b.Corporate strategy c.Functional strategy d.National strategy e.Corporate mission 13.b 14. a

9. Multiple Choice Questions 15. Which of the following focuses on supporting the corporate and business strategies? a.Competitive strategy b.Corporate strategy c.Operational strategy d.National strategy e.Mission strategy 16. Which one of the following is not a primary task of strategic managers? a.Establishing strategic objectives b.Developing the steps to follow in implementing operational level plans c.Defining the business and developing a mission d.Developing a strategy e.Implementing and evaluating the chosen strategy 15. c 16. b

10. Multiple Choice Questions 17. The task of strategy choice involves: a.developing plans and activities which will improve the organisation's performance and competitive position b.determining how the organisation can be more market and efficiency oriented c.monitoring whether the organisation is achieving good financial performance d.keeping the organisation free of debt e.none of these are really central to strategy choice 18. Which one of the following is at the core of strategic management? a.Choosing which organisational objectives to focus on b.Being alert for opportunities to change work responsibilities c.Adapting the organisation to a changing external environment d.Choosing whether to make decisions autocratically or on the basis of participation e.Promoting responsiveness to changes in organisational norms and values 18. c 17. a

11. Multiple Choice Questions 19. Jobs with strategic management responsibility: a.seldom exist within a functional department or in an operating unit b.exist at the line of business level, the product line level, and are also found in not-for-profit organisations c.are found only at the general manager level and above d.entail operating and administrative responsibilities but do not involve entrepreneurial responsibilities e.none of these 20. The process of strategic management is characterised by: a.the tendency of managers to develop a strategy before they set target performance objectives b.the systematic fashion with which managers implement the strategy they have chosen c.the steps that strategic planners always go through in writing the strategic plan d.the sequence with which managers move from one phase of the process to the next e.none of these 19. b 20. e

12. True/False Questions 1.Certain principles of strategic management are timeless and can be used in many different organisations. 2.Military strategy may have been where it all began but the principles are really only relevant to military situations. 3.Adam Smith is best remembered for the pig iron experiment. 4.The book, The Wealth of Nations is Mintzberg ’ s most important contribution to strategic management. 5.Determining the best way of performing a task was directly related to the author of Principles of Scientific Management written by Frederick Winslow Taylor. 2.F 5.T 3.F 4.F 1.T

13. True/False Questions 6.Maslow ’ s hierarchy of needs proposes that the point at which they have been met will determine the best approach for managers to take. 7.The resource based view of the firm measure the physical and tangible assets held by an organisation to determine its ability to compete in the market place. 8.Strategic management is irrelevant to non-profit organisations. 9.Strategic management advocates a strictly functional, operational or activity based approach to management. 10. Strategic management is a process. 6.T 7.F 8.F 9.F 10.T

14. True/False Questions 11. Strategic management is based on a short-term approach, which can offer a quick fix. 12. Organisations exist because they perform some function that society demands. 13. Corporate strategy refers to how an organisation operates. 14. Operational strategy refers to how an organisation implements its strategic decisions. 15. Competitive strategy refers to the type of activity an organisation concerns itself with. 12.T 11.F 13.F 15.F 14.T

15. True/False Questions 16. Strategic management improves organisational effectiveness. 17. It is more important to be efficient than effective. 18. Strategic managers believe there is no real need to differentiate their product or service. 19. Differentiation, low cost or targeting a specific segment of the market forms the basis of competitive advantage. 20. Satisfying needs of customers more efficiently and effectively than their competitors is the basis of sustained competitive advantage. 18. F 17. F 16. T 19. T 20. T

16. True/False Questions 21. Innovation is an essential part of successful organisations. 22. The process of innovation in an organisation is not a natural one. 23. Strategic management is a process that does not require strong leadership. 24. Strategic management is best described as an intellectual, technical pursuit. 25. Strategic management is a complex process. 22. T 21.T 23. F 24. F 25. T