Chapter 1

This activity contains 15 questions.

The term 'corporate strategy' concerns strategy and strategic decisions:

A) In certain types of organisations.

B) At all levels in an organisation.

C) Developed by the senior management in an organisation.
D) In the private sector only.

A key characteristic of strategic decisions is:

A) They are likely to be concerned with, or affect, the long-term direction of an organisation.

B) They are normally definite decisions about the future of the organisation.
C) They identify specific areas of strategic interest for the management of an organisation.
D) They result in better organisational performance..

Strategic fit means:

A) Creating opportunities by building on resources and competences.

B) Having a balanced portfolio which meets customer requirements.

C) Tailoring strategies to address forces in the business environment.
D) Meeting the expectations of stakeholders.

The purpose of strategy is to provide:

A) The strategic direction for an organisation in the foreseeable future.

B) Direction and scope of an organisation over the long-term, which achieves advantage for an organisation within
a changing environment to meet the needs of markets.
C) Direction and scope of an organisation over the long-term, which achieves advantage in a changing
environment through its configuration of resources and competences with the aim of fulfilling stakeholder
expectations.
D) A set of standards which all employees in an organisation should strive to attain.

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It is possible to identify different levels of strategy in an organisation, these are:

A) Corporate; strategic business unit; operational.

B) Corporate and functional.

C) Strategic and tactical.
D) Corporate and business unit.

An organisation's mission can be defined as:

A) The overriding purpose in line with the values or expectations of stakeholders.

B) The overriding purpose regardless of the values or expectations of stakeholders.

C) The organisation's business plan.
D) The desired future state of the organisation.

The purpose of analysing an organisation's strategic position is:

A) To understand the operational and corporate requirements of an organisation.

B) To understand the strategic position of the organisation in terms of its strategic capability and the expectations
and purposes of stakeholders.
C) To understand the strategic position of the organisation in terms of its external environment, the strategic
capability of the organisation and the expectations and purposes of stakeholders.
D) To evaluate the resources necessary to translate strategy into action.

Strategic choices require an understanding of:

A) the underlying bases for future strategy at business unit and corporate levels; the options for developing strategy
in terms of directions and methods of development.
B) the business environment, the competition and the strategic capability of the organisation.
C) The key drivers of change.
D) The organisational strengths and weaknesses.

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Strategy in a public sector organisation differs from a private sector company because:

A) Planning horizons are determined by political considerations, rather than market conditions.

B) They do not have customers.

C) They do not have to make a profit.
D) They do not have stakeholders.

Strategic drift, where strategies progressively fail to address the strategic position of the
organisation, is frequently followed by:

A) Transformational change.

B) Demise.
C) Transformational change or demise.
D) A change of CEO.

A design view of strategy refers to:

A) The systematic, rational way in which strategy is always developed in organisations.

B) The pulling together of ideas that develop from different parts of the organisation.
C) Pulling together the different decisions made throughout an organisation so as to develop a coherent overall
strategy.
D) The deliberate positioning of the organisation through a rational, analytic, structured and directive process.

The experience lens suggests that strategies develop.

A) Through the individual experience of a few top managers or strategic planners.

B) Through the shared assumptions in the organisation often thought of as the organisational culture.
C) Through the shared assumptions across similar sorts of organisations within an industry (or organisational
field).
D) All of the above.

The ideas lens suggests that ideas for new strategies develop as a result of:

A) The ideas of top managers and strategic planners.

B) The variety and diversity of ideas competing with each other within an organisation.
C) A fast changing and often unpredictable environment requiring new responses from organisation.
D) B and C above.

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The ideas lens suggest that new strategies take shape in organisations:

A) Because the new ideas that develop from within the organisation are selected by formal evaluation through
strategic planning systems.
B) Because new ideas are tried out in the market and either succeed or don’t.
C) Because there are sufficient people in the organisation that find a new strategy attractive.
D) All of the above.

Which of the following statements describes how the design, experience and ideas lenses help explain
strategy development processes?

A) Strategic planning processes are explained through the design lens. The experience lens and ideas lens are not
relevant.
B) The way in which organisational politics contributes to strategy development is explained through the experience
lens.
C) Logical incrementalism is best understood in terms of the ideas lens.
D) All three lenses help explain different strategy development processes that are observable in organisations.

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