Review Questions and Exercises

1. Is it necessary that the ve steps in the strategic management process be performed sequentially? Why or why not?

2. What is the difference between an intended strategy and a realized strategy? Why is this distinction important?

3. How have outside perspectives in uenced the development of the strategic management eld?

4. Does the CEO alone make the strategic decisions for an organization? Explain.

True or False

1. A strategy seeks to develop and sustain competitive advantage.

2. Strategic management refers to formulating successful strategies for an organization.

3. Each step in the strategic management process is independent so that changes in one step will not substantially affect other steps.

4. The intended strategy and the realized strategy can never be the same.

5. Whereas industrial organization theory emphasizes the in uence of industry factors of rm performance, resource-based theory emphasizes the role of rm factors.

6. Strategic decisions are made solely by and are ultimately the responsibility of the chief executive alone.

Multiple Choice

7. Strategies are formulated in the strategic management stage that occurs immediately after

A. the assessment of internal strengths and weaknesses.

B. implementation of the strategy.

C. control of the strategy.

D. none of the above

8. The strategy originally planned by top management is called the

A. grand strategy.

B. realized strategy.

C. emergent strategy.

D. none of the above

9. The notion that successful rms tend to be the ones that adapt to in uences in their industries is based on

A. industrial organization theory.

B. resource-based theory.

C. contingency theory.

D. none of the above

10. The notion of distinctive competence is consistent with

A. industrial organization theory.

B. resource-based theory.

C. contingency theory.

D. none of the above

11. In order to contribute to sustained competitive advantage, rm resources should be

A. valuable and rare.

B. not subject to perfect imitation.

C. without strategically relevant resources.

D. all of the above

12. Which of the following is not a characteristic of strategic decisions?

A. They are long-term in nature.

B. They involve choices.

C. They do not involve trade-offs.

D. All of the above are characteristics of strategic decisions.