BMGT500 – Strategic Management
Review: Chapter 1-2
Class: ________________________ Student: ________________________
C 1. A company's strategy is most accurately defined as
A. management's approaches to building revenues, controlling costs and generating an attractive profit.
B. management's concept of "who we are, what we do, and where we are headed."
C. management's action plan in responding to economic and market conditions, competing successfully, conducting operations, and improving the company's financial and market performance.
D. the business model that a company's board of directors has approved for outcompeting rivals and making the company profitable.
E. the choices management has made regarding what financial plan to pursue.
2. A company's mission statement typically addresses which of the following questions?
A. "Who are we and what do we do?"
B. "What objectives and level of performance do we want to achieve?"
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E. builds shareholder value, passes the completeness test, and passes the customer satisfaction test.
4. The strategy-making, strategy-executing process includes five phases. They are ______________________, _________________________, _________________________, _________________________, _________________________.
5. Explain why a company's strategy cannot be completely planned out in advance and why crafting a company's strategy cannot be a one-time, once-and-for-all managerial exercise. Identify at least 3 factors that account for why company strategies evolve.
6. A company's strategic vision concerns
A. a company's directional path and future product-market-customer-technology focus.
B. why the company does certain things in trying to please its customers.
C. management's storyline of how it intends to make a profit with the chosen strategy.
D. "who we are and what we do."
E. what future actions the enterprise will likely undertake to outmaneuver rivals and achieve a sustainable competitive advantage.
7. Which of the following is the best example of a well-stated financial objective?
A. Increase earnings per share by 15% annually.
B. Gradually boost market share from 10% to 15% over the next several years.
C. Achieve lower costs than any other industry competitor.
D. Boost revenues by a percentage greater than the industry average.
E. Maximize total company profits and return on investment.
8. A company's strategic plan consists of
A. its objectives and its strategy for achieving them.
B. a vision of where it is headed, a set of performance targets, and a strategy to achieve them.
C. its strategy and management's specific, detailed plans for implementing it.
D. a company's strategic vision, strategic objectives, strategic intent, and strategy.
E. a strategic vision, a strategy, and a business model.
9. The task of crafting a company's strategy is typically a job for the company's whole management team, not just a small group of senior executives. True or false? Explain and support your answer.
10. Identify and briefly discuss at least three obligations of a company's board of directors in corporate governance and the strategy-making, strategy-executing process.