In order to execute the formulated strategies, a firm is required to establish annual objectives, devise

policies, motivate employees and allocate resources.

True

Strategic management always starts with planning .

True

Strategic planning increases the resistance to change.

False

Goals give focus and direction to organization.

True

Of the following benefits, which does not belong to strategy map?

Consolidates all the activitiesStrategy mapping

Strategic planning is affordable to perform for small and medium business organizations.

False

One of the primary activities included in value chain analysis is the _______________.

Inbound logistics

The main part of the balanced scorecard is the _________ which offers a bright way of
communicating the high level data in a simply-edible format across of organization.

Strategy mapping

Objectives should always be long-term.

False

S in SWOT analysis stands for

Strengths
Strategic planning leads to competitive advantage which is a sustainable one.

True

T in SWOT Analysis stands for

Threats

Annual/yearly plan is a short-term plan which briefly describes the present situation of organization
as well as its goals and objectives strategies, monitoring mechanisms and the budget for the
_________.

Next year

Strategic ________ refers to employment of suitable system of monitoring and feedback.

Control

The vision statement describes the purpose and overall intention of the organization

False – Mission

Strategic planning is a philosophy because it emanates a powerful way of conducting and managing
a _________ organization.

Business

There are ________ types of strategic plans.

Two

The final step in strategic planning is ________

Conduct periodic and continuous reassessments.

To make the specified strategies succeed, organizational ________ are pursued.

Goals

Strategic management is taken in the context of an academic environment where the approach and
treatment are on theoretical while strategic planning is the buzzword in the world of business.
True

External environment has four types.

False – 2

The following elements belong to micro-level external environment except for

Demographic

Which of the following is an example of issues on economic forces?

Inflation rate is low but likely to rise soon

Competitive rivalry, supplier power, buyer power, threat of substitution and threat of new entry are

Five forces of a competitive environment

Oligopolies are found only in the sphere public utilities such as telephone service, power distribution,
as distribution and the like.

False – Absolute Monopolies

_________ is identified by how easy for the suppliers to increase their prices.

Supplier power

Environmental scanning refers to the study and interpretation of the elements or forces which exist in
the _______.

External and internal environment

These refer to the people who purchase and utilize the business firm's products and services.

Customers

It refers to the ongoing tracking of occurrence and trends in the internal and external environment
that currently and in the future success of business.

Environmental scanning
Keeping the customers satisfied is very important.

True

Total factor productivity of a business firm is raised through technology improvement and at the
same time reduces the unit output cost.

True

Important societal factors in the environment create the same effects on business organizations.

False – different

Rivals can hardly enter the market

False – can quickly

Which of the following statements describes a formal search?

There is a planned and deliberate effort exerted by the individual.

Cost of technology investment is an example of _________.

Threats

These advances are observed in the fields of business, communication, education, banking,
security, medicine and in all facets of everyday living.

Technological

There are _________ modes of environmental scanning.

The following questions should be considered when analyzing buyer power except for

How many potential suppliers do a business have?

Which of the following are considered as one of the possible business threats?
Indirect competition from expanded takeout sections at local grocery stores.

In informal search, the individual actively looks for _________ to increase the knowledge of a
particular issue.

Information

It refers to the setting in which business organization locally exists.

Internal environment

It refers to an economic scenario where nations, organizations, communities, companies and

Competition

The government , stakeholders, competitors, customers and suppliers have no responsibility to

False

__________ are considered as threats to business.

Competitors

Maximation of long-run profits is assumed to be the objective of all business firms.

True

Competitors are considered as _________ to business.

Threats

Because of the changing _________, there is a critical need to employ different approaches so as to
ensure customers' loyalty and patronage.

consumers' needs, demands, wants and sophisticated lifestyles

These are companies which sell similar products such as coffee and tea.
Similar products

It refers to the intermixture of people who come from all walks of life with different culture, attitudes,
values, aspirations, traditional beliefs, family backgrounds, standards of living, religions and
educational attainments.

Community

It is easy for the top management to deal directly with all the workers or employees of business firm.

False

These are the business investors who are willing to invest capital, take risks and engage in business
in exchange of return or profit.

Stakeholders

The manager may encourage cooperation among the members of the group in the company's
interest and may pay little attention to the technical aspects of work done by the said group.

True

It is the overall reason or purpose of existence which influences and guides the decision and
economic activities of business.

Mission

Corporate culture has ________ types.

Some Filipinos have a tendency to bring down other individuals. This only means that Filipinos have
________.

Crab mentality

It refers to the advantage over competitors gained by offering greater value to consumers either by
means of lower prices for the products and services provided or providing greater benefits and
services which justifies higher prices.

Competitive advantage
Competition with legitimate businesses is done through bold and unethical transgression of the
intellectual rights of other companies through duplication, plagiarism and false branding.

Corrupted competition

Customer delight may come from experiencing_________ , or any characteristics which will greatly
gratify and create a unique impact on them.

product excellence, quality service, product versatility

The focus of companies' business plans ad programs and the thrust of strategies are the
competitors.

False

Some investors are actively engage in the conduct of business and some prefer to be silent ones.

True

The __________have responsibility to society when a community is not able to attain the level of
self-sufficiency and that is to help the marginalized poor and deprived to improve and attain the
quality life.

government , stakeholders, competitors, customers and suppliers

In the world of business, the business organization's _________makes a significant contribution to

Value system

The focus of companies' business plans ad programs and the thrust of strategies are the
_________.

Customers

An important link between the _________ and its ultimate buyers is marketing.

business organization
Strategic planning demands the support and _________ of top management and which at the same
time the participation and commitment of employees.

Leadership

Which of the following does not belong to the secondary activities which are involved in the process
of converting input to output?

Service

Any kind of dynamic living population can be analyzed through demographics.

True

Without customers, there will still reason for companies to exist.

False

It includes all the activities which are required in keeping the products working effectively for the
consumer after selling and delivering the said products to the buyer.

Service

Inbound logistics is included in value chain analysis.

True

Strategic planning should be proactive

True

Evaluation and control are done to check if there is a need to _________ the strategy formulated

Change

Environmental scanning is the _______ stage in the basic model of strategic management.

First

There are _________ steps to follow in formulating strategies.

6
Mission should be time-bounded.

False – Objectives

The business firm's competitive __________ is determined through the use of a particular
technology by a firm for its transformation process .

Strengths

__________ forces may have different effect on the business firms in the industry .

Micro

________ are the direct stakeholders while indirect stakeholders are the individuals or entities which
stand to benefit from owners' investments.

Business owners

Directing is the starting point of strategic planning.

False

_________ can be gained when products and services of a certain business are different from its
competitors.

Differential strategy

The following are the benefits of strategy map except for

Consolidates all the activities of strategy mapping

Delays in decision making can cost a business firm good deal.

True

Conduciveness to ________ decision making is a requirement for an efficient operation of business

Quick
__________ refers to the study and interpretation of the elements or forces which exist in the
external and internal environment.

Environmental scanning

Strategic planning leads to competitive _________ which is a sustainable one.

This refers to a extensive plan developed by a business firm so as to take the said organization from
where is at present at the same time where the said business wants to be.

Strategy

Objectives will provide guidance and direction to the business.

True

Which of the following characterizes a specific objectives?

detailed, concrete and well defined

There are _______ internal growth strategies which may be adopted by business organization so as
to achieve objectives of increasing volume and turnover.

Setting good objectives also means that points of reference which a business cannot make an actual
measurement.

False – can

If the strategy is put into place, developing the said strategy is ineffective.

False – effective

In setting objectives , business organization should be able to quantify or measure whether the
objective is met or not.

True

Business organizations can avoid the pervading competition which exist in the business
environment.
False – cannot

Strategy formulation is important to the success of an organization

True

The third step in strategy formulation is ________.

Defining the strategic objectives.

Economies of sale increases cost when applied as a Competitive strategy because of volume.

False – lowers

Most of the products in the market are on maturity stage.

True

The goal of this strategy is to radically leapfrog or launch the business organization by introducing
completely new and highly differentiated products which give the latter a competitive posturing .

Innovation strategy

These are critically long-term action plans which are prepared with the purpose of directing how the
business organization will compete and survive.

Competitive strategies

To provide a variety of products, services or product and service features which competitors do not
offer or are not able to offer to consumers is the objective of the broad differentiation competitive
strategy.

Broad differentiation strategy

In this stage of product life cycle, promotion should be considered.

Growth stage

It refers to the process by which the business organization selects the best courses of action to
achieve its defined goals and objectives.
Strategy formulation

The following are the danger signs which signal that the business organization should use turnover
strategy to survive except

Competitive products

Strategic objectives should be communicated with all stakeholders and all employees.

True

Modifying the market means to try increasing consumption by finding new users and new market
segments .

True

In this strategy, mutual cooperation among competitors and at the same time competing with them is
considered so as expansion of market potential becomes possible and materialized.

Expansion through cooperation

This strategy is considered by the said firm when existing opportunities are present and exploiting its
current markets and current products is a good choice.

Market penetration

Corporate level strategy is broader in nature compared to other levels of strategy.

True

It refers to a strategy where the business firm acquires another dynamic business.

Horizontal integration