Chapter 1 Study Guide
Chapter 1 Study Guide: The Nature of Strategic Management
True/False Questions
1) Strategic management focuses on integrating management, marketing, finance/accounting, production/operations, research and development, and information systems to achieve organizational success. TRUE
2) Optimizing for tomorrow the trends of today is the purpose of strategic management. FALSE
3) Even though useful, strategic planning has been cast aside by corporate America since the early 1990s. FALSE
4) Resource allocation is included in strategy-formulation activities. TRUE
5) The terms strategic management and strategic planning are synonymous in this text. TRUE
6) A vision statement is, in essence, a company's game plan. FALSE
7) Strategy implementation is often considered to be the most difficult stage in the strategic-management process because it requires personal discipline, commitment, and sacrifice. TRUE
8) The final stage in strategic management is strategy implementation. FALSE
9) Strategy formulation, implementation and evaluation activities occur at three hierarchical levels in a large diversified organization: corporate, divisional and functional. TRUE
10) One of the fundamental strategy evaluation activities is reviewing external and internal factors that are the bases for current strategies. TRUE
11) An objective, logical, systematic approach for making major decisions in an organization is a way to describe the strategic-management process. TRUE
12) Strategic management is an attempt to organize qualitative and quantitative information in a way that allows effective decisions to be made under conditions of uncertainty. TRUE
13) Analytical and intuitive thinking should complement each other. TRUE
14) According to Albert Einstein, "Knowledge is far more important than intuition." FALSE
15) Management by intuition can be defined as operating from the "I've-already-made-up-my-mind-don't-bother- me-with-the-facts mode."
True/False Questions
1) Strategic management focuses on integrating management, marketing, finance/accounting, production/operations, research and development, and information systems to achieve organizational success. TRUE
2) Optimizing for tomorrow the trends of today is the purpose of strategic management. FALSE
3) Even though useful, strategic planning has been cast aside by corporate America since the early 1990s. FALSE
4) Resource allocation is included in strategy-formulation activities. TRUE
5) The terms strategic management and strategic planning are synonymous in this text. TRUE
6) A vision statement is, in essence, a company's game plan. FALSE
7) Strategy implementation is often considered to be the most difficult stage in the strategic-management process because it requires personal discipline, commitment, and sacrifice. TRUE
8) The final stage in strategic management is strategy implementation. FALSE
9) Strategy formulation, implementation and evaluation activities occur at three hierarchical levels in a large diversified organization: corporate, divisional and functional. TRUE
10) One of the fundamental strategy evaluation activities is reviewing external and internal factors that are the bases for current strategies. TRUE
11) An objective, logical, systematic approach for making major decisions in an organization is a way to describe the strategic-management process. TRUE
12) Strategic management is an attempt to organize qualitative and quantitative information in a way that allows effective decisions to be made under conditions of uncertainty. TRUE
13) Analytical and intuitive thinking should complement each other. TRUE
14) According to Albert Einstein, "Knowledge is far more important than intuition." FALSE
15) Management by intuition can be defined as operating from the "I've-already-made-up-my-mind-don't-bother- me-with-the-facts mode."