Multiple Choice Questions

True/False Questions

Chapter 1
The Nature and Scope of Strategic
Management
 Multiple Choice Questions
1. When defining strategic management the most important thing
to remember is that it is:
a. Not as easy as you think
b. Mainly the province of senior managers
c. A living evolving process 1. c
d. More conceptual than practical
e. A way of determining responsibilities

2. As a general statement it can be said that the earliest strategic

managers were generally involved in:
a. the military
b. ruling countries 2. a
c. developing from craft to industrial situations
d. the development of systems for large corporations
e. any organisations that require management of large groups
 Multiple Choice Questions
3. In recent years the teachings and writings of Sun Tzu have enjoyed
a revival because of the perceived relevance to:
a. the worldwide problems with terrorism
b. the fact that his strategic teachings are timeless
c. the ability to deal with competitors
d. the emphasis on management structures 3.b
e. none of the above

4. Which of the following was responsible for a model of strategy

which attempted to create a balance between efficiency and
effectiveness?
a. Sun Tzu
b. Max Weber
c. Frederick Winslow Taylor
4.d
d. Carl Von Clausewitz
e. Adam Smith
 Multiple Choice Questions
5. Which of the following developed systems which combined
both the physical and psychological needs of workers?
a. Max Weber
b. Frederick Winslow Taylor
c. Frank and Lillian Gilbreth
d. Henri Fayol 5. c
e. Adam Smith

6. Which of the following is not a feature of Max Webers ideal

type of bureaucracy?
a. Clearly defined hierarchical structures
b. Efficiency and rationality
c. Clearly defined psychological needs and profiles 6. c
d. Clearly defined spheres of competences
e. Clearly defined roles of responsibility
 Multiple Choice Questions
7. Henry Mintzberg was responsible for developing a
multidimensional approach to strategy based on the five Ps. Which
of the following are the correct five Ps?
a. Plan, ploy, pattern, position perspective
b. Plan, plot, pattern, position perspective
c. Plan, ploy, pattern, position performance
d. Plan, ploy, pattern, participation perspective 7. a
e. Passion, ploy, pattern, position perspective

8. Which of the following is not one of Porters five forces that

impact on competition?
a. New rivals entering the industry
b. Competition amongst sellers in the industry
c. A clearly defined management structure 8. c
d. The bargaining power of buyers
e. The bargaining power of suppliers
 Multiple Choice Questions
9. An organisation's strategy:
a. remains set in place longer than the mission and objectives
b. generally forms over a period of time as events unfold
c. tends to be formed at the same time the mission is developed and
objectives are formulated
d. is usually conceived at a single time when managers sit down and
work out a comprehensive strategic plan for the next 3-5 years
e. none of these is true
9.b
10. The primary focus of strategic management is:
a. strategic analysis
b. the total organisation
c. strategy formulation
d. strategy implementation 10.b
e. competitive advantage.
 Multiple Choice Questions
11. Which of the following applies to strategic issues?
a. Require only top management decisions
b. Consider only the organisation's external environment
c. Future-oriented
d. Concern allocation of small amounts of resources
e. Do not have long-term impact on the organisation 11. c
12. Which of the following is not an advantage of strategic management?
a. It provides organisations with a clearer sense of direction and purpose
b. It helps improve the political, economic, social and technological
environment of the organisation
c. It helps orientate management decisions to relevant environmental
conditions
d. It helps organisations be proactive rather than reactive 12.b
e. Organisations using it significantly outperform their own past results and
the results of those organisations not using it
 Multiple Choice Questions
13. Which of the following defines what business or businesses the
firm is in or should be in?
a. Business strategy
b. Corporate strategy
c. Functional strategy
d. National strategy 13.b
e. None of the above

14. Which of the following defines how each individual business

unit will attempt to achieve its mission?
a. Business strategy
b. Corporate strategy
c. Functional strategy
14. a
d. National strategy
e. Corporate mission
 Multiple Choice Questions
15. Which of the following focuses on supporting the corporate and
business strategies?
a. Competitive strategy
b. Corporate strategy
c. Operational strategy
d. National strategy 15. c
e. Mission strategy

16. Which one of the following is not a primary task of strategic

managers?
a. Establishing strategic objectives
b. Developing the steps to follow in implementing operational level
plans
c. Defining the business and developing a mission 16. b
d. Developing a strategy
e. Implementing and evaluating the chosen strategy
 Multiple Choice Questions
17. The task of strategy choice involves:
a. developing plans and activities which will improve the organisation's
performance and competitive position
b. determining how the organisation can be more market and efficiency
oriented
c. monitoring whether the organisation is achieving good financial
performance
d. keeping the organisation free of debt 17. a
e. none of these are really central to strategy choice
18. Which one of the following is at the core of strategic management?
a. Choosing which organisational objectives to focus on
b. Being alert for opportunities to change work responsibilities
c. Adapting the organisation to a changing external environment
d. Choosing whether to make decisions autocratically or on the basis of
participation
e. Promoting responsiveness to changes in organisational norms and
values
18. c
 Multiple Choice Questions
19. Jobs with strategic management responsibility:
a. seldom exist within a functional department or in an operating unit
b. exist at the line of business level, the product line level, and are also
found in not-for-profit organisations
c. are found only at the general manager level and above
d. entail operating and administrative responsibilities but do not involve
entrepreneurial responsibilities
e. none of these 19. b
20. The process of strategic management is characterised by:
a. the tendency of managers to develop a strategy before they set target
performance objectives
b. the systematic fashion with which managers implement the strategy
they have chosen
c. the steps that strategic planners always go through in writing the
strategic plan
d. the sequence with which managers move from one phase of the
process to the next
e. none of these 20. e
 True/False Questions
1. Certain principles of strategic management are timeless and can
be used in many different organisations.
1.T
2. Military strategy may have been where it all began but the
principles are really only relevant to military situations.
2.F
3. Adam Smith is best remembered for the pig iron experiment.
3.F
4. The book, The Wealth of Nations is Mintzbergs most important
contribution to strategic management.
4.F
5. Determining the best way of performing a task was directly
related to the author of Principles of Scientific Management
written by Frederick Winslow Taylor.
5.T
 True/False Questions
6. Maslows hierarchy of needs proposes that the point at which
they have been met will determine the best approach for
managers to take.
6.T
7. The resource based view of the firm measure the physical and
tangible assets held by an organisation to determine its ability to
compete in the market place.
7.F
8. Strategic management is irrelevant to non-profit organisations.
8.F
9. Strategic management advocates a strictly functional,
operational or activity based approach to management.

10. Strategic management is a process.

9.F
10.T
 True/False Questions
11. Strategic management is based on a short-term approach, which
can offer a quick fix.
11.F
12. Organisations exist because they perform some function that
society demands.
12.T
13. Corporate strategy refers to how an organisation operates.
13.F
14. Operational strategy refers to how an organisation implements
its strategic decisions.
14.T
15. Competitive strategy refers to the type of activity an
organisation concerns itself with.
15.F
 True/False Questions
16. Strategic management improves organisational effectiveness.
16. T
17. It is more important to be efficient than effective.
17. F
18. Strategic managers believe there is no real need to differentiate
their product or service.
18. F
19. Differentiation, low cost or targeting a specific segment of the
market forms the basis of competitive advantage.
19. T
20. Satisfying needs of customers more efficiently and effectively
than their competitors is the basis of sustained competitive
advantage.
20. T
 True/False Questions

21. Innovation is an essential part of successful organisations.

21.T
22. The process of innovation in an organisation is not a natural
one.
22. T
23. Strategic management is a process that does not require strong
leadership.
23. F
24. Strategic management is best described as an intellectual,
technical pursuit.
24. F
25. Strategic management is a complex process.
25. T