Concept of Strategy

Chapter 1

The Concept of Strategy

Test Bank

True/False Questions

1. Strategy is a detailed plan and a program of instructions that every member of the organization must carefully follow to ensure success.

False

Page: p4

2. Strategy is a unifying theme and a general guideline.

True

Page: p4

3. For most firms, luck appears to be the only factor explaining whether these organizations fail or succeed.

False

Page: p5

4. Strategy is a major determinant of the probability and the extent of the success of a firm.

True

Page: p5

5. One can describe a sound strategy in terms of four factors: goals; understanding of competitive environment; appraisal of resources; and implementation of strategic decisions.

True

Page: p9

6. Analytic frameworks or models that represent the firm within its competitive environment are unlikely to be of any use to managers in the practical task of developing strategies for their businesses.

False

Page: p27

7. The role of business strategy can be described as the determination of a firm’s resources to achieve its long-term goals and as the way it organizes its activities.

True

Page: p11

8. In the SWOT model, S and W relate to the external environment whereas O and T refer to the internal environment, i.e. the firm itself.

False

Page: p12

9. The concept of “Strategic fit” describes the match between a firm’s strategy, its external environment and its resources and capabilities.

True

Page: p13

10. Strategy has its origins in military strategy.

True

Page: p13

11. Strategy denotes the entire plan whereas a tactic refers to a scheme for a specific action.

True

Page: p14

12. Strategic decisions are important, involve a significant commitment of resources and are easily reversible.

False

Page: p14

13. Different...