E1 Flashcards
(24 cards)
Strategies are the means by which long-terms objectives are achieved
TRUE
Good Business ethics is a prerequisite for good strategic management: good ethics is just good business
TRUE
Strategic management isthe art and science of formulating, implementing and evaluating cross-functional objectives that enable an organization to achieve its strategies
FALSE
An organization can control its external opportunities and threats butcan only adopt to its internal strengths and weaknesses
FALSE
What are the three stages of the strategic management process?
FORMULATION, IMPLEMENTATION, and EVALUATION
The benefits of strategic management includeall of the following except?
INCREASEDCONFLICT AND POLARIZATION
The vision statement answers the question “what do we want to become?” while the mission statement answers the question “What is our business?”
TRUE
If an organization chooses to have both a mission and a vision, the mission statement should be established first, as mission identifies where we are andvision indicates where we want to go
FALSE
When developing a mission statement, it is usually advisable to involve as few managers as possible.
FALSE
Important benefits of vision and mission statements include all of the following except:
Allows for divergent views among managers to be revealed and celebrated through the process
The nine components of a mission statement include all of the following except
Concern for competitors
The purpose of an external audit is to develop a finite list of opportunities that could benefit a firm and threats that should be avoided
TRUE
The five key external forces first impact an organization as opportunities and threats which, in turn, affect that organization’s various stakeholders.
FALSE
In an EFE Matrix, opportunities often receive higher weights than threats, but threats too can receive high weights if they are especially severe or threatening.
TRUE
Economic factors have little impact on the attractiveness of various strategies.
FALSE
Political, governmental, and legal factors can represent key opportunities and threats for both small and large organizations.
TRUE
Key social, cultural, demographic and environmental variables include all of the following except:
size of government budget deficits
Potential advantages of international operations include all of the following except:
Economies of scale can be achieved from just domestic rather than global operations
As rivalry among competing firms intensifies, industry profits decrease, in some cases to the point where any industry becomes inherently unattractive.
TRUE
Bargaining power of consumers is usually the most powerful of the five competitive forces.
FALSE
The global challenge faces by U.S. business is twofold; how to gain and maintain imports from other nations; and how to defend foreign markets from exported goods.
FALSE
When the threat of of new firms entering the market is strong, incumbent firms generally fortify their positions and take actions to deter new entrants, e.g., lowering pries, extending warranties, adding features, or offering special financing.
TRUE
The basic objectives of a competitive intelligence program include all of the following except:
Identify potential moves that the firm might take that would endanger a competitor’s position in the market
One difference between CPM and EFE matrices is that
CPM matrix includes both internal and external issues
