Basic Concepts of Strategic Management Quiz

An example of an objective is "increased profitability," while an example of a goal is "to increase the firm's profitability in 2010 by 15% over 2009."

• TRUE

• FALSE

Corporate strategy occurs at the business unit or product level.

• TRUE

• FALSE

Strategic management is the set of managerial decisions that determines the short-term performance of a corporation.

• TRUE

• FALSE

Climate change has become a growing concern for businesses to include in their corporate strategies.

• TRUE

• FALSE

To be effective, strategic management must be a formal process.

• TRUE

• FALSE

One of the benefits of strategic management is a clearer sense of strategic vision for the firm.

• TRUE

• FALSE

A broad mission statement may limit the scope of a firm's activities in terms of the product or service offered.

• TRUE

• FALSE

Strategic flexibility is the ability to shift from one dominant strategy to another.

• TRUE

• FALSE

A strategy maximizes competitive advantage and minimizes competitive disadvantage.

• TRUE

• FALSE

Sustainability reflects business practices to manage the firm's triple bottom line: the profit/loss; the company’s social responsibility; and its environmental responsibility.

• TRUE

• FALSE