Process Of Strategic Management Quiz Questions
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In a hypercompetition situation, a firm faces only a few competitors.
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True
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False
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This quiz focuses on the strategic management process, assessing understanding of key concepts like strategic implementation, analysis, and the BCG Matrix. It tests knowledge crucial for effective business strategy development and management.
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- 2.
Stakeholders are individuals and groups unaffected by the organization and its strategic accomplishments.
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True
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False
Correct Answer
A. FalseExplanation
The given answer is false because stakeholders are individuals and groups who are affected by the organization and its strategic accomplishments. Stakeholders have an interest or concern in the organization and can include employees, customers, shareholders, suppliers, and the community. They have the potential to impact or be impacted by the organization's decisions and actions, making them an important consideration in strategic planning and decision-making processes.Rate this question:
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- 3.
The strategic management process begins with analysis of mission, values, and objectives.
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True
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False
Correct Answer
A. TrueExplanation
The strategic management process indeed starts with the analysis of mission, values, and objectives. This initial step is crucial as it helps organizations define their purpose, identify their core values, and set clear objectives that align with their overall mission. By analyzing these elements, organizations can effectively develop strategies and make informed decisions to achieve their goals and fulfill their mission.Rate this question:
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- 4.
A(n) ________ expresses the organization’s reason for existence in society.
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Statement of purpose
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Mission statement
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Cash flow statement
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Net worth statement
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Operating objective
Correct Answer
A. Mission statementExplanation
A mission statement is a formal declaration that expresses the organization's reason for existence in society. It outlines the organization's core purpose, values, and goals. It serves as a guide for decision-making and helps align the organization's actions with its overall mission. A cash flow statement, net worth statement, and operating objective are financial or operational statements that provide different types of information and do not express the organization's reason for existence.Rate this question:
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- 5.
Businesses or products with high-market-shares in high-growth markets are referred to as ________ in the BCG Matrix.
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cash cows
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laggards
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stars
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Dogs
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Question marks
Correct Answer
A. starsExplanation
In the BCG Matrix, businesses or products with high-market-shares in high-growth markets are referred to as "stars". This means that these businesses or products have a strong market presence and are operating in rapidly growing industries. Stars typically require a high level of investment to maintain their market position and fuel further growth. They have the potential to become cash cows in the future if they can maintain their market share as the industry matures.Rate this question:
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- 6.
Strategic analysis typically refers to the process of:
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Crafting strategies to guide the allocation of resources.
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Analyzing the organization’s competitive position.
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Directing the total enterprise.
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Revising objectives and selecting new strategies.
Correct Answer
A. Analyzing the organization’s competitive position.Explanation
Strategic analysis involves evaluating the organization's competitive position in the market. This includes assessing the strengths and weaknesses of the organization, analyzing the competitive landscape, and identifying opportunities and threats. By understanding the organization's competitive position, managers can make informed decisions about resource allocation, set objectives, and develop strategies that will give the organization a competitive advantage.Rate this question:
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- 7.
Which of the following is a defining characteristic of a SWOT analysis?
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It determines the level of sales needed in order to breakeven.
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It is based on the statistical principle of multivariate.
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It identifies things that inhibit performance.
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It examines the diversity at the work place and increases cohesiveness.
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It is based on a year-to-year comparison of a firm’s ratios.
Correct Answer
A. It identifies things that inhibit performance.Explanation
A SWOT analysis is a strategic planning tool that identifies the strengths, weaknesses, opportunities, and threats of a business or project. It is used to assess the internal and external factors that may impact the success or failure of the venture. One of the defining characteristics of a SWOT analysis is that it helps identify the things that inhibit performance. By understanding and addressing these inhibiting factors, businesses can develop strategies to overcome them and improve their overall performance.Rate this question:
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- 8.
In the process of strategic management, strategic implementation is typically followed by strategic analysis.
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True
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False
Correct Answer
A. FalseExplanation
In the process of strategic management, strategic implementation is not typically followed by strategic analysis. Strategic implementation refers to the actual execution of the chosen strategies, while strategic analysis involves evaluating and assessing the effectiveness of those strategies. Therefore, strategic analysis usually occurs before strategic implementation to ensure that the chosen strategies are sound and aligned with the organization's goals and objectives.Rate this question:
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- 9.
Karen Inc. changes its business strategy from a focused differentiation strategy to a focused cost leadership one. Which of the following steps in the process of strategic management ideally includes this action?
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Strategy formulation
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Strategy identification
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Strategy analysis Strategy analysis
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Strategy outsourcing
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Strategy assessment
Correct Answer
A. Strategy formulationExplanation
Strategy formulation is the process of developing and selecting strategies to achieve the organization's objectives. It involves making decisions on how to allocate resources, identifying target markets, and determining competitive advantages. Changing the business strategy from focused differentiation to focused cost leadership is a key decision that falls under strategy formulation.Rate this question:
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- 10.
It is advisable to combine a cost leadership strategy with a differentiation strategy to get better results.
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True
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False
Correct Answer
A. FalseExplanation
Combining a cost leadership strategy with a differentiation strategy may not always lead to better results. These two strategies are fundamentally different from each other. A cost leadership strategy focuses on offering products or services at a lower cost compared to competitors, while a differentiation strategy focuses on offering unique and superior products or services. Combining these strategies may result in a lack of focus and confusion in the market. It is more effective to choose one strategy and execute it effectively rather than trying to combine both.Rate this question:
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Current Version
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Mar 21, 2023Quiz Edited by
ProProfs Editorial Team -
Dec 03, 2016Quiz Created by
Babbette_jackson
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