Midterm Quiz # 1

• In today's business environment, more than in any preceding era, the only constant is commerce.

  FALSE
• Opportunities and threats are largely within the control of a single organization thus the word internal.

  FALSE
• A clear vision statement describes the values and priorities of an organization.

  FALSE
• A strategic plan is, in essence, a company's game play.

  FALSE
• Normally, a firm can sustain a competitive advantage for only a certain period due to rival firms imitating and undermining that advantage.

  TRUE
• The Internet has changed the way we organize our lives, inhabit our homes, and relate to and interact with family, friends, neighbors, and even ourselves.

  TRUE
• Organizations should continually monitor internal and external events and trends so that timely changes can be made as needed.

  TRUE
• Intuition is essential to making good strategic decisions.

  TRUE
• Because no organization has unlimited resources, strategists must decide which alternative strategies will benefit the firm most.

  TRUE
• Hunch artists, who make a diagnosis but don't check it out with the facts, are the ones in medicine who kill people and in management kill businesses.

  TRUE
• The purpose of strategic management is to exploit and create new and different opportunities for tomorrow.

  TRUE
• Vision should be challenging, measurable, consistent, reasonable, and clear.

  FALSE
• A vision statement broadly charts the future direction of an organization.

  FALSE
• The challenge of implementation is to stimulate employees only throughout an organization, to work with pride and enthusiasm toward achieving stated objectives.

  FALSE
• E-commerce and globalization are internal changes that are transforming business and society today.

  FALSE
• This course integrates material from all business courses.

  TRUE
• Strategic management is all about gaining and maintaining competitive advantage.

  TRUE
• Objectives should be established in each department or divisions.

  TRUE
• Basic tenet of strategic management is that firms need to formulate strategies to take advantage of external opportunities and to avoid or reduce the impact of internal threats.

  FALSE
• Firms, like organisms, must be adept at adapting or they will not survive.

  TRUE
• Strategy evaluation is needed because success today is a guarantee of success tomorrow!

  FALSE
• Successful strategy implementation hinges upon workers' ability to motivate employees, which is more an art than a science.

  FALSE
• Success always creates new and different problems, complacent organizations experience demise.

  TRUE
• By fostering communication and interaction among managers and employees across hierarchical levels, strategic management helps a firm function as a competitive team.

  TRUE
• Strategic management is a pure science that lends itself to a nice, neat, one-two-three approach.

  FALSE