Strategic Management Quiz 1

An external analysis is the process of scanning and evaluating an organization's various external environmental sectors to determine positive and negative trends that could impact on organizational performance.

• True

• False

Threats are positive external environmental trends or changes that will help the organization improve its performance.

• True

• False

The specific environment includes such sectors as demographics, economics, and political/legal factors.

• True

• False

Buyers have bargaining power if the industry's product is not important to the quality of the buyers' products or services.

• True

• False

Substitute products can be found in the same industry

• True

• False

An external analysis enables the organization to examine opportunities and threats

• True

• False

Companies that use strategic management tend to have higher levels of performance.

• True

• False

Business strategies are concerned with the broad and more long-term choices of "what business(es) are we in or do we want to be in, and what do we want to do with these businesses?"

• True

• False

Strategy implementation is the process of evaluating how the strategy has been implemented, as well as the outcomes of the strategy.

• True

• False

A company's board of directors' legal obligation is to represent the shareholders and protect their interests.

• True

• False