Exam
Name___________________________________

MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question. 

1) 

Which of the following is a definition of strategic management? 

1) 

_______ 

A) 

Strategic management refers to those aspects of management that are the responsibility of an organisation's most senior managers. 

B) 

Strategic management is concerned with the annual planning processes by which an organisation determines its annual targets and budget allocations. 

C) 

Strategic management refers to an approach to business planning based on the objectives of the various stakeholder groups affected by the organisation's activities. 

D) 

Strategic management refers to those activities and processes through which an organisation determines its mission and/or objectives and the plans, policies and actions to achieve them. 

2) 

Which one of the following is not a major concern of strategic management? 

2) 

_______ 

A) 

Mission and objectives 

B) 

Strategic options 

C) 

The marketing mix 

D) 

Organisational resources and competencies 

E) 

The external environment 

3) 

Which of the following is a criterion for distinguishing operational, tactical and strategic decisions? 

3) 

_______ 

A) 

Cost of implementation 

B) 

Who is responsible for implementation 

C) 

Type of decision 

D) 

Time taken to make decisions 

E) 

Scope of the decision's impact on the organisation 

4) 

Which of the decisions listed below is not an example of a strategic decision? 

4) 

_______ 

A) 

Decision to invest in a new production plant 

B) 

Decision to enter a new market 

C) 

Decision to launch a new advertising campaign 

D) 

Decision to launch new product 

5) 

Which of the following would you not expect to see in an organisational mission statement? 

5) 

_______ 

A) 

A statement of what the organisation is trying to achieve 

B) 

An indication of the nature of the industry the organisation is in 

C) 

A statement of why the organisation exists 

D) 

A quantified financial target 

6) 

Which of the following is an outcome of the analysis of the strategic capability of an organisation? 

6) 

_______ 

A) 

An understanding of strengths and weaknesses  

B) 

An understanding of opportunities and threats 

C) 

An understanding of customer needs 

D) 

An understanding of HR capability 

7) 

What do you understand by the term 'strategic direction'? 

7) 

_______ 

A) 

'Strategic direction' refers to the direction the organisation would like to move in the next five years. 

B) 

'Strategic direction' refers to the underlying intent of a strategy, e.g. growth, consolidation, market entry or diversification. 

C) 

'Strategic direction' refers to the leadership offered by the senior management team of an organisation. 

D) 

'Strategic direction' refers to the general direction in which an industry as a whole is moving. 

8) 

Which of the following statements best explains the term 'strategic method' when applied to strategic choice? 

8) 

_______ 

A) 

'Strategic method' refers to the decision making process used to select one option from the available choices. 

B) 

'Strategic method' refers to the change management methods by which an organisation implements its chosen strategy. 

C) 

'Strategic method' refers to the internal processes used to generate strategic options, e.g. brainstorming, studying competitors, etc. 

D) 

'Strategic method' refers to the particular way the direction will be pursued, e.g. merger, strategic alliance, organic growth or joint venture. 

9) 

Which of the following do/es not help explain why strategy implementation is often difficult to achieve in the way intended? 

9) 

_______ 

A) 

Poor understanding of the strategy by those implementing it 

B) 

The complex range of changes involved 

C) 

Changes in the external environment 

D) 

The difficulties of planning for unintended outcomes 

E) 

The problems associated with marketing new products 

10) 

Which of the following is not one of the types of strategy identified in the hierarchy of strategies? 

10) 

______ 

A) 

Corporate level strategy 

B) 

Business level strategy 

C) 

Operational level strategy  

D) 

Market level strategy 

11) 

What does SBU stand for? 

11) 

______ 

A) 

Services business unit 

B) 

Small business unit 

C) 

Single business unit 

D) 

Strategic business unit 

12) 

Which of the following best describes the goal of an organisation? 

12) 

______ 

A) 

Long term direction 

B) 

Desired future state the aspiration of the organisation 

C) 

General statement of aim or purpose 

D) 

Overriding purpose in line with the values or expectations of shareholders 

13) 

What is the difference between a mission and a vision? 

13) 

______ 

A) 

A mission specifies why the organisation exists, while the vision expresses what the organisation is trying to achieve in the foreseeable future. 

B) 

A vision is what the organisations leaders would like to achieve, while a mission is the task they have accepted as more realistic. 

C) 

A vision expresses why an organisation exists, while a mission specifies what an organisation is trying to achieve in the foreseeable future. 

D) 

The terms 'mission' and 'vision' refer to the same thing. The two terms are synonymous. 

14) 

How do an organisation's strategic objectives relate to its mission? 

14) 

______ 

A) 

Strategic objectives do not usually relate to the mission but are the basis for an organisation's strategic plan. 

B) 

Strategic objectives provide a more precise or quantifiable basis for developing strategy than the general mission statement. 

C) 

Strategic objectives break the mission down into those parts that relate to specific functional areas of the business. 

D) 

Strategic objectives are based on the mission but each one relates to a specific SBU of the organisation. 

15) 

Why is it important that objectives are measurable? 

15) 

______ 

A) 

Controlling strategy implementation and evaluating the outcomes of a strategy depend on being able to measure organisational performance against targets. 

B) 

Reward systems depend on meeting targets so it is vital that measurements are taken so that performance-related pay and bonuses can be calculated. 

C) 

Strategy is best evaluated using quantitative data so measurements must be taken. 

D) 

All of the key measures of business performance are financial and so setting financial targets is vital. 

16) 

What do you understand by the term 'strategic drift'? 

16) 

______ 

A) 

Progressive failure of strategies to address the strategic position of the organisation 

B) 

Emergent approach to strategy 

C) 

Where an intended strategy is unrealised 

D) 

Sudden failure of strategies to address the strategic position of the organisation 

17) 

In the private sector, strategy making is dominated by pursuit of which of the following objectives? 

17) 

______ 

A) 

Corporate social responsibility 

B) 

Market share 

C) 

New product development 

D) 

Profits 

18) 

Which of the following groups' interests are given greatest importance when developing strategy in business organisations? 

18) 

______ 

A) 

Employees 

B) 

Shareholders 

C) 

Suppliers 

D) 

Customers 

19) 

Which of the following would not be classed as a 'not-for-profit' organisation? 

19) 

______ 

A) 

Save the Children 

B) 

Amnesty International 

C) 

British Airways 

D) 

The Advertising Standards Authority 

20) 

The objectives of strategy in the public sector tend to be concerned with which of the following? 

20) 

______ 

A) 

Satisfying shareholders 

B) 

Competitive advantage 

C) 

Profitability 

D) 

Value for money 

21) 

Which of the following is not a typical characteristic of strategy making in the not-for-profit sector? 

21) 

______ 

A) 

Multiple objectives  

B) 

Meeting expectations of shareholders 

C) 

Consensus building  

D) 

Values and ideology 

22) 

Which of the following are not usually key stakeholder groups in the not-for-profit sector? 

22) 

______ 

A) 

Recipients of the service 

B) 

Funding providers 

C) 

Shareholders 

D) 

Government regulators 

23) 

Which of the following terms must be included in a definition of strategy? Choose all that apply. 

23) 

______ 

A) 

Constant environment 

B) 

Stakeholder expectations 

C) 

Direction and scope	 

D) 

Long term	 

24) 

Which of the following statements is least likely to apply to strategic decisions?  

24) 

______ 

A) 

They are made in situations of uncertainty. 

B) 

They are simple in nature. 

C) 

They involve considerable change. 

D) 

They affect operational decisions.	 

25) 

Which type of strategy is concerned with the overall purpose and scope of an organisation? 

25) 

______ 

A) 

Strategic-business-level strategy 

B) 

Operational strategy 

C) 

Business-level strategy 

D) 

Corporate-level strategy 

26) 

Which type of strategy focuses on how resources, processes and people can be used to deliver high-level strategies?  

26) 

______ 

A) 

Strategic-business-level strategy 

B) 

Operational strategy 

C) 

Business-level strategy 

D) 

Operational strategy 

27) 

A group of managers is considering how their organisation can compete successfully in a particular market. What type of strategy are they devising?  

27) 

______ 

A) 

Operational  

B) 

Business 

C) 

Strategic 

D) 

Corporate 

28) 

Which type of strategy is most likely to relate to the expectations of the shareholders and the stock market? 

28) 

______ 

A) 

Operational 

B) 

Strategic-business-level 

C) 

Business-level 

D) 

Corporate-level 

29) 

In the public sector, organisations must make decisions about how units should provide best-value services. What is the equivalent to this type of strategy in a commercial organisation? 

29) 

______ 

A) 

Strategic-business strategy 

B) 

Operational-level strategy 

C) 

Corporate-level strategy 

D) 

Business-level strategy 

30) 

Which term is used for the overall purpose of the organisation? 

30) 

______ 

A) 

Strategic capability 

B) 

Goal 

C) 

Mission	 

D) 

Vision 

31) 

Which three of the following elements make up the Exploring Corporate Strategy model?  

31) 

______ 

A) 

Strategic position 

B) 

Strategic planning 

C) 

Strategic choices 

D) 

Strategy in action 

32) 

In which of the categories of the Exploring Corporate Strategy model would you place the organisation's environment, purpose, culture and capability?  

32) 

______ 

A) 

Strategic position 

B) 

Strategy in action 

C) 

Strategic choices 

33) 

Which of the elements of the Exploring Corporate Strategy model involves understanding the underlying bases for future strategy at both the business unit and corporate levels and the options for developing strategy in terms of both the directions and methods of development?  

33) 

______ 

A) 

Strategic planning 

B) 

Strategic position 

C) 

Strategy in action 

D) 

Strategic choices 

34) 

The managers of an organisation are assessing whether they can grow organically, using their own resources. Which of the elements of the Exploring Corporate Strategy model are they working on?  

34) 

______ 

A) 

Strategic choices 

B) 

Strategy in action 

C) 

Strategic planning 

D) 

Strategic position 

35) 

Which of the following are roles that are likely to involve strategy development? Choose all that apply. 

35) 

______ 

A) 

Manager of a business unit in a multinational 

B) 

In-house strategy specialist 

C) 

Team supervisor 

D) 

Strategy consultant 

36) 

Which of the following is a key question for 'content researchers'? 

36) 

______ 

A) 

How can managers make rational decisions based on all the relevant information? 

B) 

How does discourse shape what is actually going on? 

C) 

What sort of strategy performs best under what conditions? 

D) 

How can we construct a mathematical model of a complex world? 

37) 

Which two statements accurately relate to the process approach to strategy, led by Mintzberg and Pettigrew? 

37) 

______ 

A) 

Strategy formulation and implementation is messy. 

B) 

Strategy must be based on accurately identifying a hierarchy of aims and goals. 

C) 

Managers make decisions based on organisational politics and history as much as on economic bases. 

D) 

Strategy is largely based on discourse  the way in which the organisation is discussed. 

38) 

Which of the following is not one of the strategy lenses that offer different ways of looking at the issues of strategy development for an organisation? 

38) 

______ 

A) 

Experience 

B) 

Design 

C) 

Discourse 

D) 

Inspiration 

E) 

Ideas 

TRUE/FALSE.  Write 'T' if the statement is true and 'F' if the statement is false. 

39) 

Achieving sustainable competitive advantage is an overriding objective of strategy in the not-for-profit sector. 

39) 

______ 

40) 

In the private sector the overriding objective of strategy is to achieve value for money in service provision. 

40) 

______ 

41) 

The strategic capability of the organisation is made up of resources and competences. 

41) 

______ 

42) 

Operational level strategy is about how to compete successfully in particular markets. 

42) 

______ 

43) 

Strategic management is not important in the public sector because the public sector is not concerned with creating competitive advantage. 

43) 

______ 

44) 

Corporate governance is concerned with how the organisation serves its customers and deals with the environment. 

44) 

______ 

45) 

A strategic business unit is a part of an organisation for which there is a distinct external market for goods or services that is different from another SBU. 

45) 

______ 

46) 

A mission is the desired future state of the organisation. 

46) 

______ 

47) 

Strategic choices are concerned with the impact on strategy of the the external environment, an organisation's strategic capability and the expectations of stakeholders.  

47) 

______ 

48) 

The analytical approach of specialised planning departments was poorly able to cope with the more dynamic and competitive world that emerged in the late 1970s.   

48) 

______ 

49) 

Strategy-as-practice researchers have built on sociological and psychological traditions to examine closely the actual practice of managers in strategy. 

49) 

______ 

50) 

Managers must communicate strategy to their teams and will achieve greater performance from them the more convincing they are in interpreting it. 

50) 

______ 

 

1) 

D 

2) 

C 

3) 

E 

4) 

C 

5) 

D 

6) 

A 

7) 

B 

8) 

D 

9) 

E 

10) 

D 

11) 

D 

12) 

C 

13) 

A 

14) 

B 

15) 

A 

16) 

A 

17) 

D 

18) 

B 

19) 

C 

20) 

D 

21) 

B 

22) 

C 

23) 

A, B, C, D 

24) 

B 

25) 

D 

26) 

B 

27) 

B 

28) 

D 

29) 

D 

30) 

C 

31) 

A, C, D 

32) 

A 

33) 

D 

34) 

A 

35) 

A, B, D 

36) 

C 

37) 

A, C 

38) 

D 

39) 

FALSE 

40) 

FALSE 

41) 

TRUE 

42) 

FALSE 

43) 

FALSE 

44) 

FALSE 

45) 

TRUE 

46) 

FALSE 

47) 

FALSE 

48) 

TRUE 

49) 

TRUE 

50) 

TRUE