Chapter 1 The Concept of Strategy True False

Chapter 1 The Concept of Strategy True or False Questions 1. Strategy is a detailed plan and set of instructions that programs the actions of an organization. @ Pages and References: p4 a. T *b. F 2. Strategy is a unifying theme that gives coherence and direction to the actions and decisions of an organization. @ Pages and References: p4 *a. T b. F 3. The career success of both Queen Elizabeth II and Lady Gaga may be attributed mainly to the influences of luck and superior resources @ Pages and References: p5 a. T *b. F 4. If a firm can devise a brilliant strategy, it will be successful irrespective of how effectively it is implemented. @ Pages and References: p5 a. T *b. F 5. A key component of an effective strategy is clear, consistent, long-term goals. @ Pages and References: p10 *a. T b. F 6. A major problem of using SWOT analyses in distinguishing strengths form weaknesses and opportunities from threats. @ Pages and References: p11 *a. T b. F 7. The concept of “Strategic fit” describes the gap or fit between the environment and a firm’s strategy. @ Pages and References: p13 *a. T b. F 8. Contingency theory postulates that a firm’s strategy must to flexible in order to meet any possible contingency. @ Pages and References: p11. a. T *b. F 9. Business strategy has intellectual origins in military strategy. @ Pages and References: p12 *a. T b. F 10. Strategy denotes the entire plan whereas a tactic refers to a scheme for specific actions. @ Pages and References: p12 *a. T b. F 11. Strategic decisions are important, involve a significant commitment of resources and should be easily reversible. @ Pages and References: p12 a. T *b. F 12. The main factor causing the transition from corporate planning to strategic management was the work of Michael Porter and fellow academics at Harvard Business School. @ Pages and References: p13 *a. T b. F 13. Strategy answers two basic questions: where and how to compete? @ Pages and References: p18 *a. T b. F 14. In the large, complex firm, two main levels of strategy can be distinguished: corporate strategy and business (or competitive) strategy. @ Pages and References: p18 *a. T b. F 15. A vision statement describes a company’s purpose, while a mission statement projects what a company wants to be. @ Pages and References: pp17-18 a. T *b. F 16. An intended strategy is a set of initial ethical intentions; an emergent strategy comprises actions or changes that emerge from the organization or its environment; and finally, the realized strategy is the set of strategic changes and actions that actually takes place. @ Pages and References: p21 a. T *b. F 17. A firm’s strategy can be described in terms of the answers to two questions: What is the form trying to achieve? And how is it building a competitive advantage? @ Pages and References: p20 a. T *b. F 18. The dynamic dimension of a firm’s strategy (“competing for tomorrow”) is described by its Mission statement, its vision statement, and its specific performance targets for the future. @ Pages and References: p21 *a. T b. F 19. According to Henry Mintzberg, while realized strategy is primarily an outcome of intended strategy, emergent strategy also plays an important role. @ Pages and References: p22. *a. T b. F 20. The balance between intended and emergent strategy depends primarily upon the stability and predictability of the organization’s business environment. The more stable and predictable the environment, the greater the importance of emergent strategy. 2 @ Pages and References: p23 *a. T b. F 3