Chapter 01 – Strategic Management
Chapter 01
Strategic Management
Multiple Choice Questions
1. (p. 3) Which of the following is an element of a firm’s remote external environment?
2. (p. 3) Which of the following is NOT a part of a firm’s immediate external environment?
3. (p. 3) The immediate external environment includes:
4. (p. 3) The _______ comprises economic and social conditions, political priorities and
technological developments, all of which must be anticipated, monitored, assessed and
incorporated into the executive’s decision making.
5. (p. 3) The set of decisions and actions resulting in the formulation and implementation of
plans designed to achieve a company’s objectives is defined as:
6. (p. 3) Strategic management compromises nine critical tasks. Which of the following is NOT
one of the tasks?
7. (p. 4) Strategic management involves the _____, directing, _____ and controlling of a
company’s strategy-related decisions and actions.
8. (p.4) Large-scale, future-oriented plans, for interacting with the competitive environment to
achieve company objectives refers to its
9. (p. 4) A strategy is a company’s
10. (p. 4) A _____is a company’s game plan.
11. (p. 4) A(n) _____ reflects a company’s awareness of how, when and where is should
compete, against whom it should compete and for what purpose it should compete.
12. (p. 4) A(n) strategy reflects a company’s awareness of how, when and where is should ____,
against whom it should _____ and for what purpose it should _____.
13. (p. 4) Strategic issues require which level of management decisions?
14. (p. 5) Strategic decisions ostensibly commit the firm for
15. (p. 5) Strategic issues require large amounts of the company’s
16. (p. 4-5) Some business decisions are strategic and therefore deserve strategic management
attention. Which of the following is one of the six strategic issue dimensions?
17. (p. 5) Which of the following applies to strategic issues?
18. (p. 5) Strategic issues are ____ oriented.
19. (p. 5) Strategic decisions are based on what managers _____, rather than on what they
_____.
20. (p. 5) All businesses exist in a(n) _____ system.
21. (p. 5) In a turbulent and competitive free enterprise environment, a firm will succeed only if
it takes a(n) ____ stance towards change.
22. (p. 6) General Electric is a multi-business company. It typically would have ____ levels of
strategy.
23. (p. 6) Which level of strategy uses a portfolio approach?
24. (p. 6) Which level of strategy is in the middle of the decision-making hierarchy?
25. (p. 6) Which level of strategy is at the bottom of the decision-making hierarchy?
26. (p. 6) Which level of strategy is at the top of the decision-making hierarchy?
27. (p. 6) Typically how many strategic decision levels are in the corporate decision-making
hierarchy?
28. (p. 6) To a large extent, attitudes at the corporate level reflect the concerns of
29. (p. 6) The top of the decision-making hierarchy comprises all of these EXCEPT
30. (p. 6) In a multi-business firm, ______ -level executives determine the businesses in which
the firm should be involved.
31. (p. 6) At Office Supply, Inc., ____ -level managers would be responsible for determining
whether the company should be involved in home furnishings or electronic appliance
businesses, where as ____ -level managers would be responsible for determining how the firm
will compete in the selected product-market arena.
32. (p. 6) In the middle of the decision-making hierarchy is the _____ level.
33. (p. 6) Who determines the basis on which a company can compete in the selected product-
market arena?
34. (p. 6) Which of these managers tries to identify and secure the most profitable and
promising market segment?
35. (p. 6) The functional level of decision making is characterized by:
36. (p. 6) Which strategic level is typically responsible for developing annual objectives and
short-term strategies?
37. (p. 6) Which of the following is NOT a level in the decision-making hierarchy of a firm?
38. (p. 6) Functional managers are typically responsible for which of the following?
39. (p. 7) Whereas corporate and business-level managers center their attention on _____,
managers at functional-level center their attention on ____.
40. (p. 7) Decisions at which level of management tend to be more value-oriented and
conceptual?
41. (p. 8) Dividend policies are decided at the
42. (p. 8) Which level of decisions encompasses greater risk, cost and profit potential?
43. (p. 8) Corporate-level decisions are characterized by:
44. (p. 8) Decisions concerning plant location, distribution channels, geographic coverage and
market segmentation are typically made at:
45. (p. 8) The degree to which participation, responsibility, authority and discretion in decision-
making are specified is called:
46. (p. 8) Which one of these forces DOES NOT determine how much formality is needed in
strategic management?
47. (p. 8) Which of these is usually positively correlated with the cost, comprehensiveness,
accuracy and success of planning?
48. (p. 9) According to Henry Mintzberg, there are ____ modes based upon formality in
strategic management.
49. (p. 9) According to Henry Mintzberg, very large firms typically use the _____ mode of
strategic management.
50. (p. 9) Henry Mintzberg identified a mode which he associates with medium-sized firms in
relatively stable environments. This is referred to as a(n) ____ mode.