Strategic Management MIDTERM EXAM

Strategic Management is defined as the process that emphasizes the analysis of a company’s external and internal environment to achieve its objectives. The three main steps of this process are:

• Strategy Formulation, Strategic Planning, and Strategic Analysis

• Strategy Formulation, Strategy Implementation, and Strategy Evaluation

• Strategic Visioning, Mission Development, and Objective Setting

• Corporate Planning, Business Strategy, and Functional Strategy

A key difference between a business strategy and a military strategy is that a military strategy is based on the assumption of conflict, while a business strategy is based on the assumption of:

• Cooperation

• Competition

• Collaboration

• Command

Which of the following describes Corporate Strategy?

• A game plan for managing specific operating activities

• A plan for managing each functional department of a business unit

• The strategy at the single-business level

• The multi-business strategy concerning how to improve performance by managing a set of businesses simultaneously

The action taken by a manager to ensure that the organization is better off than its competitors or is able to fend off competitive actions is referred to as:

• Planning

• Corporate Planning

• Corporate Strategy

• Strategy

One of the major benefits of Strategic Management is that it helps the management become:

• More bureaucratic

• More proactive than reactive

• Less involved in day-to-day operations

• More focused on short-term profits

A major limitation of strategic management is that the process is considered:

• Too collaborative

• Costly and time-consuming

• Focused only on internal strengths

• Too easily adjustable

A scenario where managers cannot judge the company’s position correctly due to poor information systems and lack of awareness represents a limitation of strategic management related to:

• Failure to manage change

• Poor information system

• Failure to coordinate

• Failure to obtain employee commitment

The concept that involves preparing ways to use resources more economically and efficiently so that the company's purpose is achieved is called:

• Strategy

• Strategic Management

• Planning

• Corporate Strategy

Which of the following is NOT listed as one of the three main steps in the strategic management process?

• Strategy Formulation

• Strategy Implementation

• Strategy Planning

• Strategy Evaluation

Which statement aligns with the principle of strategy-making in most companies?

• It is solely the responsibility of the high-level executives to ensure confidentiality.

• It must be delegated only to the Business Unit managers.

• It is a collaborative team effort in which every manager has a role for the area he or she heads.

• The CEO must approve every decision without delegation.