Strategic Management Theory & Cases: An Integrated Approach 13th Edition by Charles test bank

False

 
ANSWER:  
True


 
17. The feedback loop in the model of the strategic management process indicates that the process is ongoing; it never ends.
 
a. 
True

 
b. 
False

 
ANSWER:  
True


 
18. The planning model suggests that a company's strategies are the result of a plan from a highly structured process orchestrated by top management.
 
a. 
True

 
b. 
False

 
ANSWER:  
True


 
19. A customer comment on an online forum about changing a company’s product placement in stores stimulates a change in an existing business plan which results in increased profits and positive outcomes is an example of serendipity.
 
a. 
True

 
b. 
False

 
ANSWER:  
True


 
20. If a company focuses on its customers and creates incentives for employee productivity, the company will likely be successful in delivering shareholder value.
 
a. 
True

 
b. 
False

 
ANSWER:  
True


 
21. Mintzberg maintains that emergent strategies are often successful and may be more appropriate than intended strategies.
 
a. 
True

 
b. 
False

 
ANSWER:  
True


 
22. In practice, the strategies of most organizations are likely a combination of intended and emergent strategies.
 
a. 
True

 
b. 
False

 
ANSWER:  
True


 
23. Emergent strategies arise from within the organization as a direct result of prior planning.
 
a. 
True

 
b. 
False

 
ANSWER:  
False


 
24. Using customer surveys, focus groups and field research to drive business decisions is an example of the ivory tower concept of planning.
 
a. 
True

 
b. 
False

 
ANSWER:  
False


 
25. Making a general business decision about where to manufacture a product based on the result of a single survey of one small focus group is a cognitive bias known as illusion of control.
 
a. 
True

 
b. 
False

 
ANSWER:  
False


 
26. Research finds that leaders who exhibit a high degree of emotional intelligence tend to be significantly less effective than those who lack these attributes.
 
a. 
True

 
b. 
False

 
ANSWER:  
False


 
Multiple Choice

 
27. Which of the following principal factors helps increase shareholder value?
 
a. 
Profitability

 
b. 
Risk factors

 
c. 
Low brand awareness

 
d. 
Government regulations

 
e. 
High production costs

 
ANSWER:  
a


 
28. Which of the following statements about competitive advantage is true?
 
a. 
It is unaffected by the strategies taken by the company.

 
b. 
Sustainability is achieved when it lasts for three months.

 
c. 
It exists only when the company's profitability is greater than the 10 highest grossing firms in the world.

 
d. 
It exists only when the company's profitability is greater than the average profitability and profit growth of its rivals.

 
e. 
It is seldom affected by the business model of the company.

 
ANSWER:  
d


 
29. Which of the following best defines shareholder value?
 
a. 
It refers to the returns that shareholders earn from purchasing shares in a company.

 
b. 
It refers to the capital invested in a company by the shareholders.

 
c. 
It refers to the efforts taken by a company to sell its shares to prospective shareholders.

 
d. 
It refers to the efforts taken by a company to buy back its shares from its shareholders.