Chapter 1 What is strategy and who is involved?

Strategic management includes the following:
1. establishment of strategic direction.
2. analysis of the internal environment.
3. strategic restructuring.
4. all of the above.
The strategy context is the:
1. external environment of the industry.
2. set of circumstances under which both the strategy process and strategy content are determined.
3. combination of needs expressed by stakeholder, shareholders and customers.
4. economic environment of the country in which an organization operates.
Strategic thinking is an activity that involves:
1. shareholders shaping the way strategic leaders create strategy.
2. assessing the internal strengths of an organization.
3. pursuing a competitive advantage within an industry.
4. managers considering how they should organize their thinking to achieve a successful strategic reasoning process.
Strategic formation involves:
1. managers organizing their strategizing activities to achieve a successful strategy formation process.
2. structuring the organization to ensure it supports the strategy.
3. aligning the strategic control measures to monitor implementation.
4. gaining the support of stakeholders and shareholders for the proposed strategy.
Strategic change, a necessary aspect of strategy, requires managers to:
1. communicate with suppliers to ensure smooth relationships.
2. organize changes to achieve a successful strategic renewal process.
3. listen to the needs of customers.
4. control processes through monitoring and measurement initiatives.
Which of the following is not a major activity of the strategic management process?
1. Analysis of the internal and external environments.
2. Establishment of strategic direction.
3. Formulation of strategies.
4. Production scheduling.
A firm has achieved ____ when it successfully formulates and implements a value-creating strategy.
1. Strategic competitiveness
2. A permanently sustainable competitive advantage
3. Substantial returns
4. Legal and ethical core values
A competitive advantage:
1. can be permanent if the firm has successfully implemented the strategic management process.
2. entails reducing investors’ risk to near zero.
3. can be identified only if it has been unsuccessfully challenged by competitors.
4. exists when competing firms are unable to find investors.

Chapter 1 What is strategy and who is involved?

Quiz