Strategic Management Theory & Cases: An Integrated Approach 13th Edition by Charles test bank
True / False
1. A strategy can be defined as a set of related actions that managers take to increase their company's performance.
a.
True
b.
False
ANSWER:
True
2. Strategic leadership is concerned with how to most effectively manage a company's strategy-making process to create competitive advantage.
a.
True
b.
False
ANSWER:
True
3. To increase shareholder value, managers must try to venture into new markets whether the results are profitable or not.
a.
True
b.
False
ANSWER:
False
4. A firm obtains competitive advantage when its strategy results in superior performance compared to its competitors.
a.
True
b.
False
ANSWER:
True
5. Return on invested capital (ROIC) is a measure of how efficiently and effectively managers use the capital at their disposal to produce profitability.
a.
True
b.
False
ANSWER:
True
6. The profit growth of a company can be measured by the increase in net profit over time.
a.
True
b.
False
ANSWER:
True
7. A business model is managers' conception of how the set of strategies their company pursues work together as a congruent whole, enabling the company to gain a competitive advantage as well as achieve superior profitability and profit growth.
a.
True
b.
False
ANSWER:
True
8. One of the factors that distinguish organizations in the nonprofit sector from profit-making businesses is the lack of a need for strategic management.
a.
True
b.
False
ANSWER:
False
9. General managers bear responsibility for the overall performance of the company or for one of its major self-contained subunits or divisions.
a.
True
b.
False
ANSWER:
True
10. Changing the process of submitting and receiving purchase orders in the production division of a company would primarily be the responsibility of a functional-level manager.
a.
True
b.
False
ANSWER:
True
11. The final component of the strategic management process is crafting the organization's mission statement, which provides the framework—or context—within which strategies are formulated.
a.
True
b.
False
ANSWER:
False
12. The vision of the company and the mission statement can be used interchangeably.
a.
True
b.
False
ANSWER:
False
13. The mission statement of a company defines a desired future state and articulates what the company would like to achieve.
a.
True
b.
False
ANSWER:
False
14. Well-constructed goals provide a means by which the performance of managers can be evaluated.
a.
True
b.
False
ANSWER:
True
15. Determining the technological and legal factors surrounding a company’s possible international expansion into India is an example of an internal analysis.
a.
True
b.
False
ANSWER:
False
16. The goal of a SWOT analysis is to create, affirm, or fine-tune a company-specific business model that will best align, fit, or match a company's resources and capabilities to the demands of the environment in which it operates.
a.
True
b.
1. A strategy can be defined as a set of related actions that managers take to increase their company's performance.
a.
True
b.
False
ANSWER:
True
2. Strategic leadership is concerned with how to most effectively manage a company's strategy-making process to create competitive advantage.
a.
True
b.
False
ANSWER:
True
3. To increase shareholder value, managers must try to venture into new markets whether the results are profitable or not.
a.
True
b.
False
ANSWER:
False
4. A firm obtains competitive advantage when its strategy results in superior performance compared to its competitors.
a.
True
b.
False
ANSWER:
True
5. Return on invested capital (ROIC) is a measure of how efficiently and effectively managers use the capital at their disposal to produce profitability.
a.
True
b.
False
ANSWER:
True
6. The profit growth of a company can be measured by the increase in net profit over time.
a.
True
b.
False
ANSWER:
True
7. A business model is managers' conception of how the set of strategies their company pursues work together as a congruent whole, enabling the company to gain a competitive advantage as well as achieve superior profitability and profit growth.
a.
True
b.
False
ANSWER:
True
8. One of the factors that distinguish organizations in the nonprofit sector from profit-making businesses is the lack of a need for strategic management.
a.
True
b.
False
ANSWER:
False
9. General managers bear responsibility for the overall performance of the company or for one of its major self-contained subunits or divisions.
a.
True
b.
False
ANSWER:
True
10. Changing the process of submitting and receiving purchase orders in the production division of a company would primarily be the responsibility of a functional-level manager.
a.
True
b.
False
ANSWER:
True
11. The final component of the strategic management process is crafting the organization's mission statement, which provides the framework—or context—within which strategies are formulated.
a.
True
b.
False
ANSWER:
False
12. The vision of the company and the mission statement can be used interchangeably.
a.
True
b.
False
ANSWER:
False
13. The mission statement of a company defines a desired future state and articulates what the company would like to achieve.
a.
True
b.
False
ANSWER:
False
14. Well-constructed goals provide a means by which the performance of managers can be evaluated.
a.
True
b.
False
ANSWER:
True
15. Determining the technological and legal factors surrounding a company’s possible international expansion into India is an example of an internal analysis.
a.
True
b.
False
ANSWER:
False
16. The goal of a SWOT analysis is to create, affirm, or fine-tune a company-specific business model that will best align, fit, or match a company's resources and capabilities to the demands of the environment in which it operates.
a.
True
b.