Strategic Management BBA 5 (C) Mid exam

The most critical distinction between strategic and operational decisions lies in their:

• Time horizon and organizational scope

• Departmental origin and authority level

• Financial versus non-financial nature

• Quantitative versus qualitative focus

The key purpose of a mission statement within the strategic-management process is to:

• Define the organization’s current business activities

• Predict environmental opportunities and threats

• Specify detailed annual targets and budgets

• Identify competitive advantages numerically

A firm that continuously scans its external environment to adjust long-term strategies demonstrates:

• Environmental adaptability

• Strategic rigidity

• Tactical efficiency

• Functional specialization

In strategic terms, competitive advantage is achieved when a firm:

• Maintains superior performance through unique and valuable capabilities

• Lowers costs more rapidly than rivals on a short-term basis

• Increases production capacity regardless of market demand

• Focuses mainly on internal administrative efficiency

The evaluation stage of strategic management primarily involves:

• Measuring results and taking corrective actions

• Designing vision and mission statements

• Selecting alternative strategic options

• Developing budgets and performance plans

The integration of different functional areas such as finance, marketing, and operations during strategy implementation ensures:

• Coherent execution of strategic objectives

• Isolation of departmental priorities

• Standardization of routine procedures

• Reduction in long-term flexibility

A clear mission statement should include all of the following components EXCEPT:

• The organization’s target customers and markets.

• A detailed five-year financial forecast.

• The firm’s basic technology or products/services.

• The company’s philosophy or core values.

The “Internal Audit” in the strategic management process is concerned with assessing:

• Economic, social, and political trends.

• Strengths and weaknesses across value-chain activities.

• Competitor pricing strategies.

• Government regulatory changes only.

Empowerment in organizations is best described as:

• Centralizing decision-making at the top management level.

• Delegating authority to lower-level managers and employees.

• Reducing the number of hierarchical levels.

• Outsourcing non-core functions to external vendors.

Which of the following is NOT a typical component of an organization’s philosophy as part of its mission?

• Core values and beliefs.

• Ethical standards and social responsibility.

• Specific quarterly sales targets.

• Commitment to employee development.