ANSWER TRUE OR FALSE 19) The strategic management process matches the conditions of an ever-changing market and competitive structure with a firm's continuously evolving resources, capabilities, and competencies

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ANSWER TRUE OR FALSE

19) The strategic management process matches the conditions of an ever-changing market and competitive structure with a firm's continuously evolving resources, capabilities, and competencies.

20. The probability of a firm achieving value creation in today's business environment is enhanced for the firm that is aware that its survival depends on its ability to capture intelligence, transform it into usable knowledge, and diffuse it rapidly throughout the company. Firm's accepting this challenge shift their focus from merely obtaining information to exploiting that information to gain a competitive advantage over rival firms.

21. The "deterministic perspective" of strategy formulation argues that firms should adapt to their environments because characteristics of the environment determine which strategies will succeed

22. The Industrial Organization Economics perspective is closely aligned with the "enactment" perspective of strategy formulation.

23. The I/O model of above average returns specifies that the industry in which a firm chooses to compete has a stronger influence on the firm's performance than do the choices the firm's managers make inside the organization.

4. Porter's five forces model suggests that an industry's profitability is a function of interactions among suppliers, buyers, competitive rivalry among firms currently in the industry, product substitutes, and potential entrants into the industry.

25. Resources may only be tangible.

26. Individual resources alone may yield a competitive advantage according to the resource-based model of above average returns.

27. Through continued use, capabilities become stronger and more difficult for competitor's to understand and imitate.

28. As a source of competitive advantage, a capability must by necessity be complex.

29. Managerial capabilities are important for a firm to take advantage of its resources.

30. Managerial competencies are important in most firms; particularly they have been shown to be critically important to successful entry into foreign markets.

31. The most important competencies largely reside in people-- the knowledge they possess and the systems they manage-- rather than inanimate objects.

32. Strategic decisions are intended to help a firm develop one or more competitive advantages, how managers exercise discretion (latitude for action) is critical to the firm's success.

33. A critical element of organizational success is having a top management team with superior managerial and decision-making skills.

34. The more heterogeneous a top management team is, the more capacity it has to provide effective strategic leadership in formulating strategy the more heterogeneous a top management team is, the more capacity it has to provide effective strategic leadership in formulating strategy.

35. The more heterogeneous and larger the top management team is, the more difficult it is for the team to effectively implement changes.

36. The balanced scorecard is a framework that strategic leaders can use to verify that they have established both financial controls and strategic controls to assess their firm's performance.

37. The firm's understanding of the external environment is matched with knowledge about its internal organization to form its strategic direction, and to take strategic actions that result in value creation above average returns.

38. The five forces model recognizes that suppliers can become a firm's competitors by integrating forward, as can buyers by integrating backward.

39. Matching what a firm can do with what it might do allows the firm to develop strategic intent, pursue its strategic mission, and select and implement its strategies.

40. In studying the internal environment, firms determine what they might do.

41. By exploiting core competencies and meeting the demanding standards of global competition, firms create value for customers.

42. One resource on its own often yields competitive advantage.

43. Tangible resources are valuable because they are easy to leverage and firms can derive additional business or value from a tangible resource.

44. To be a source of competitive advantage, a resource or capability must allow the firm to perform an activity in a manner superior to the way competitors perform it, or to perform value creating activity that competitors cannot perform.

45. There are essentially two approaches to meeting customer needs, lower cost with acceptable feathers, or highly differentiated with acceptable cost.

46. Only those firms with the capacity to continuously improve, innovate, and upgrade their competencies can expect to meet and, it is hoped, exceed customers' expectations across time.

47. The trend toward firms expanding their geographic scope contributes to the increasing intensity in the competitive rivalry between firms.

48. Firms are mutually interdependent, they feel each other's actions and responses, and marketplace success is a function of both individual strategies and the consequences of their use.

49. When assessing how a competitor will respond to a strategic action, the competitor's past behavior is assumed to be a reasonable predictor of future behavior.

50. Developing a competitive advantage leads to profits because a firm is able to do things to product something valuable and unique that other firms can't or won't do. True

51. Porter's Type 4 is a best-value focus strategy.

52. Porter's Type 3 generic strategy is differentiation, a strategy aimed at producing products and services considered unique industry wide.

53. The takeover of Jollibee over Red Ribbon is a classic example of a Merger.

54. Management changes are less extensive when strategies to be implemented move a firm in a major new direction.

55. Successful strategy formulation does not guarantee successful strategy implementation.

56. Establishing semiannual objectives is a decentralized activity that directly involves all managers in an organization.

57. Changes in a firm's strategic direction occur automatically.

58. Establishing objectives can lead to conflict because managers and strategists must make trade-offs.

59. Annual objectives serve as guidelines for action however ii is not critical for success.

60. Changes in a firm's strategic direction occur automatically.

61. Policies set boundaries, constraints, and limits on the kinds of administrative actions that can be taken to reward and sanction behavior.

62. Policies also clarify what work is to be done but not by whom.

63. Policies should be stated in writing whenever possible though they don't represent the means for carrying out strategic decisions

64. In organizations that use a strategic-management approach to decision making, resource allocation is often based on political or personal factors.

65. Allocating resources to particular divisions and departments means that strategies will be successfully implemented.

66. Establishing annual objectives can lead to conflict because individuals have different expectations and perceptions.

67. An absence of conflict can signal indifference and apathy.

68. Organizational structure does not dictate how objectives and policies will be established

69. A functional structure often leads to short-term and narrow thinking that may undermine what is best for the firm as a whole.

70. Communication is often good in a functional structure.

71. Another advantage of the SBU structure is that it makes the tasks of planning and control by the corporate office more manageable.

72. A matrix structure is the most complex of all designs because it depends upon both vertical and horizontal flows of authority and communication.

73. A disadvantage of a matrix structure is that it facilitates the use of specialized personnel, equipment, and facilities.

74. Restructuring is concerned primarily with employee well-being. False

75. The benefit of restructuring is increased employee commitment and innovation. False