Question 1

To be effective,firms must implement their mission statements in strategic actions.The decision that Boeing made to develop the 787 Dreamliner is an example of what?

Accepted Answer

A)   A costly and long-term strategic commitment
B)   An attempt to win U.S. military contracts
C)   The results of an emergent strategy
D)   A customer-oriented mission statementE) A) and B)
F) A) and C)

Question 2

Shell Oil is provided as an example of a firm effectively using scenario planning.In the 1960s,they prepared for a strong OPEC and therefore rising oil prices.What are they now predicting about future energy needs?

Accepted Answer

A)   Energy needs will continue to grow, spurred by BRIC countries.
B)   In 2025, that 20 percent of our energy will be generated from renewable technologies.
C)   That the Middle East leadership will fracture and oil prices will drop.
D)   In 2025, that 50 percent of our energy will be generated from renewable technologies.E) All of the above
F) B) and D)

Question 3

Based on external and internal analyses,top-level executives design a rational and structured strategic plan that is called ____________.

Accepted Answer

A)   scenario planning
B)   an emergent strategy
C)   an intended strategy
D)   an unrealized strategyE) None of the above
F) All of the above

Question 4

Google's decision in 2010 to pull its servers out of mainland China and operate out of Hong Kong was a response to what?

Accepted Answer

A)   A drive to increase profits with a broader footprint in Asia.
B)   A request from the Chinese government to leave the country.
C)   A move to cut costs due to intense competition with the local search firm Baidu.
D)   Google's decision to stop using self-censoring, as required by the Chinese government to stay operating in mainland China.E) C) and D)
F) A) and B)

Question 5

If the early U.S.railroad companies defined themselves as being in the transportation needs business,which is more customer-oriented,they might have successfully moved into what product/service before any other firm?

Accepted Answer

A)   Commercial aviation (such as Delta and United) 
B)   Modern shipping and logistics (such as FedEx and UPS) 
C)   International cargo containers on large ocean ships
D)   Fuel efficient automobiles (such as Toyota and Ford) E) A) and B)
F) None of the above

Question 6

Strategic intent is used by firms to help define their short-term objectives.

Accepted Answer

A) True 
 B)False

Question 7

Applying a real options perspective to strategic decision making allows for:

Accepted Answer

A)   Breaking investment decisions into smaller, staged phases while obtaining new information about the project viability as it continues.
B)   Calculating the net present value of an investment and deciding whether or not to complete the project from the start.
C)   Starting a project with a realistic perspective that the organization will not be able to achieve competitive advantage with.
D)   Making sure that the project is customer-oriented as opposed to product-oriented.E) A) and C)
F) A) and D) A

Question 8

Strategic flexibility is achieved by:

Accepted Answer

A)   Managers developing a dominant plan and sticking to it.
B)   Managers responding when reality changes by activating alternate dominant plans.
C)   Ignoring feedback from the marketplace while creating new plans.
D)   Breaking the cycle of strategic planning-monitoring-responding.E) A) and D)
F) B) and C)

Question 9

As revealed in the Teach For America case,teacher effectiveness improves if their course objectives do what?

Accepted Answer

A)   Follow the standardized tests
B)   Are creative and repetitive in nature
C)   Focus on material in the course
D)   Are student-achievement orientedE) All of the above
F) C) and D)

Question 10

The analogy about building a new home is relevant to strategy because you use vision,mission,and values to begin with the end in mind.Strategic success must be created twice.Once by creating a clear mental picture of what the firm wants to accomplish and second ____________.

Accepted Answer

A)   by formulating and implementing a strategy to make the vision a reality
B)   by holding department meetings to communicate the vision
C)   to create a strong value system that will bind the company together in tough times
D)   by creating a blueprint for the organization to use in creating new mission statementsE) A) and D)
F) C) and D) A

Question 11

How is a real options perspective different from calculating the net present value?

Accepted Answer

A real options perspective is decision m...

Question 12

One concept behind linking RAP,decision making,and strategy is:

Accepted Answer

A)   How an organization uses its resources drives the decisions it makes, which can alter the strategy.
B)   Decision making is based on realized strategy, not the resources available.
C)   Firm resources and decision making do not affect intended strategy except in times of crisis.
D)   In line with the tenets of strategic planning on a five-year cycle.E) C) and D)
F) B) and D)

Question 13

The 2001 collapse of Enron,resulting in one of the biggest bankruptcies in U.S.history,demonstrates that:

Accepted Answer

A)   An organization may have a mission statement promoting ethical behavior, but it must have strong organizational values to guide the behavior of employees.
B)   Employees observe managerial behavior and tend to follow it.
C)   Having strong ethical values inside an organization is important for long-term success.
D)   All of these.E) All of the above
F) A) and D) D

Question 14

In scenario planning,what is the key question to ask to begin to generate different scenarios?

Accepted Answer

A)   What's happening now?
B)   Where are we?
C)   What if?
D)   Where are we going?E) None of the above
F) A) and C)

Question 15

The 2001 collapse of Enron resulted in the loss of jobs for over 20,000 employees.Arthur Anderson was also impacted by the Enron collapse and 30,000 employees lost their jobs.Why was Arthur Anderson so adversely affected by Enron's collapse?

Accepted Answer

A)   Enron was a major client and Arthur Anderson could not survive the business downturn from the bankruptcy.
B)   The firm was an accomplice in the accounting scandal at Enron.
C)   Arthur Anderson was the target of a hostile takeover directly after Enron's collapse.
D)   The accounting firm decided to get out of the entire energy sector as a result of the collapse of Enron.E) All of the above
F) A) and D)

Question 16

One of Henry Mintzberg's criticisms of the strategic planning process is that:

Accepted Answer

A)   It does not allow for strategic thinking.
B)   It rarely, if ever, gets implemented.
C)   It is too reliant on employee feedback.
D)   Managers do not like to use it.E) A) and C)
F) None of the above

Question 17

When managers envision different what-if scenarios to anticipate possible futures,the approach that is used is called:

Accepted Answer

A)   Strategic planning
B)   Strategy as planned emergence
C)   Strategy implantation
D)   Scenario planningE) A) and D)
F) C) and D)

Question 18

Japan Railways diversifying into bottled water is an example of turning a problem into a business opportunity.What type of strategy process does this represent?

Accepted Answer

A)   Top-down strategic planning
B)   An emergent strategy
C)   An unrealized strategy
D)   Scenario planningE) A) and D)
F) B) and D)

Question 19

Teach For America (TFA) has an inspiring mission,which is to eliminate educational inequality in the U.S.What is a major benefit discussed that TFA garnered by effectively using this mission?

Accepted Answer

A)   An extensive network to use for job openings at the end of two years of service.
B)   Significant supplemental income for the TFA workers while in the field.
C)   Scholarships for graduate programs at the end of the two years.
D)   A large number of applicants driving a highly selective group in the teaching jobs.E) B) and D)
F) C) and D)

Question 20

Organizational values help people make choices that are ethical and company-goal-oriented.These values answer which strategic management question?

Accepted Answer

A)   What do we want to accomplish as a firm?
B)   How do we accomplish our goals in the organization?
C)   What are we about as a firm relative to our competitors?
D)   What is the best way to compete in the marketplace?E) A) and C)
F) A) and B)

Exam 2: The Strategic Management Process

To be effective,firms must implement their mission statements in strategic actions.The decision that Boeing made to develop the 787 Dreamliner is an example of what?

Correct AnswerverifiedShow Answer

Shell Oil is provided as an example of a firm effectively using scenario planning.In the 1960s,they prepared for a strong OPEC and therefore rising oil prices.What are they now predicting about future energy needs?

Correct AnswerverifiedShow Answer

Based on external and internal analyses,top-level executives design a rational and structured strategic plan that is called ____________.

Correct AnswerverifiedShow Answer

Google's decision in 2010 to pull its servers out of mainland China and operate out of Hong Kong was a response to what?

Correct AnswerverifiedShow Answer

If the early U.S.railroad companies defined themselves as being in the transportation needs business,which is more customer-oriented,they might have successfully moved into what product/service before any other firm?

Correct AnswerverifiedShow Answer

Strategic intent is used by firms to help define their short-term objectives.

Correct AnswerverifiedShow Answer

Applying a real options perspective to strategic decision making allows for:

Correct AnswerverifiedA

Strategic flexibility is achieved by:

Correct AnswerverifiedShow Answer

As revealed in the Teach For America case,teacher effectiveness improves if their course objectives do what?

Correct AnswerverifiedShow Answer

The analogy about building a new home is relevant to strategy because you use vision,mission,and values to begin with the end in mind.Strategic success must be created twice.Once by creating a clear mental picture of what the firm wants to accomplish and second ____________.

Correct AnswerverifiedA

How is a real options perspective different from calculating the net present value?

Correct AnswerverifiedA real options perspective is decision m...View AnswerShow Answer

One concept behind linking RAP,decision making,and strategy is:

Correct AnswerverifiedShow Answer

The 2001 collapse of Enron,resulting in one of the biggest bankruptcies in U.S.history,demonstrates that:

Correct AnswerverifiedD

In scenario planning,what is the key question to ask to begin to generate different scenarios?

Correct AnswerverifiedShow Answer

The 2001 collapse of Enron resulted in the loss of jobs for over 20,000 employees.Arthur Anderson was also impacted by the Enron collapse and 30,000 employees lost their jobs.Why was Arthur Anderson so adversely affected by Enron's collapse?

Correct AnswerverifiedShow Answer

One of Henry Mintzberg's criticisms of the strategic planning process is that:

Correct AnswerverifiedShow Answer

When managers envision different what-if scenarios to anticipate possible futures,the approach that is used is called:

Correct AnswerverifiedShow Answer

Japan Railways diversifying into bottled water is an example of turning a problem into a business opportunity.What type of strategy process does this represent?

Correct AnswerverifiedShow Answer

Teach For America (TFA) has an inspiring mission,which is to eliminate educational inequality in the U.S.What is a major benefit discussed that TFA garnered by effectively using this mission?

Correct AnswerverifiedShow Answer

Organizational values help people make choices that are ethical and company-goal-oriented.These values answer which strategic management question?

Correct AnswerverifiedShow Answer

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