Management 9th Edition By Richard L – Test Bank

Management 9th Edition By Richard L – Test Bank

Chapter 7—Strategy Formulation and Implementation

TRUE/FALSE

1. Strategic management largely determines which organizations succeed and which ones struggle.

ANS: T PTS: 1 DIF: 1 REF: 185
NAT: AACSB Analytic | Strategy TYP: F

2. Front-line mangers have the final responsibility for strategic planning.

ANS: F PTS: 1 DIF: 2 REF: 186
NAT: AACSB Analytic | Strategy TYP: F

3. Top managers and chief executives have the final responsibility for strategic planning.

ANS: T PTS: 1 DIF: 2 REF: 186
NAT: AACSB Analytic | Strategy TYP: F

4. Research has shown that strategic thinking and planning positively affect a firm’s performance and financial success.

ANS: T PTS: 1 DIF: 1 REF: 186
NAT: AACSB Analytic | Strategy TYP: F

5. Strategy means knowing your desired outcomes, how to acquire factual knowledge, thinking clearly about tactics and cause-effect relationships, and implementing behaviors that will achieve the desired outcomes.

ANS: T PTS: 1 DIF: 2 REF: 187
NAT: AACSB Analytic | Strategy TYP: F

6. Better-Than-The-Rest, Inc.’s ability to market its products better than its competitors is an example of its core competence.

ANS: T PTS: 1 DIF: 2 REF: 188
NAT: AACSB Analytic | Strategy TYP: A

7. Core competence is the plan of action that prescribes resource allocation and other activities for dealing with the environment.

ANS: F PTS: 1 DIF: 2 REF: 188
NAT: AACSB Analytic | Strategy TYP: F

8. The essence of formulating strategy is choosing how the organization will be identical to its key competitors in the industry.

ANS: F PTS: 1 DIF: 2 REF: 188
NAT: AACSB Analytic | Strategy TYP: F

9. Competitive advantage refers to the set of decisions and actions used to formulate and implement strategies.

ANS: F PTS: 1 DIF: 2 REF: 188
NAT: AACSB Analytic | Strategy TYP: F

10. The interaction of Production and Sales working together to produce profit greater than the total of both working separately is an example of synergy.

ANS: T PTS: 1 DIF: 3 REF: 189
NAT: AACSB Analytic | Strategy TYP: A