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Strategic Management

True/False Questions

THE IMPORTANCE OF STRATEGIC MANAGEMENT

1. Strategic management is the set of managerial decisions and actions that determines the short-term performance of an organization.
(False; moderate; p. 208)

2. “Strategic model” is a term that is often used in conjunction with strategic management and strategies.
(False; easy; p. 209)

3. The most fundamental questions about strategy address why firms, facing the same environmental conditions, have varying levels of performance.
(True; easy; p. 209)

THE STRATEGIC MANAGEMENT PROCESS

4. The first step in the strategic management process is analyzing the external environment.
(False; difficult; p. 210)

5. Within an industry, an environment can present opportunities to one organization and pose threats to another.
(True; moderate; p. 212)

6. Evaluating an organization’s intangible assets is part of doing an internal analysis in the strategic management process.
(True; easy; p. 212)

7. Activities that an organization does well or resources that it has available are called capabilities.
(False; easy; p. 212)

8. Exceptional or unique organizational resources are known as core capabilities.
(False; moderate; p. 212)

9. A strong organizational culture may act as a significant barrier to accepting any changes in organizational strategies.
(False; easy; p. 213)

10. SWOT analysis includes an analysis of an organization’s environmental opportunities and threats.
(True; easy; p. 214)

11. The final step in the strategic management process is implementing the objectives.
(False; easy; p. 216)

TYPES OF ORGANIZATIONAL STRATEGIES

12. Corporate-level strategies are developed for organizations that run more than one type of business.
(True; moderate; p. 217)

13. One method of implementing a growth strategy is to increase

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