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Question one: please indicate Yes or No.
1. Strategy formulation is often considered to be the most difficult stage in the
strategic-management process because it requires personal discipline,
commitment and sacrifice.
2.
3. Anything the firm does especially ell compared to ri!al firms could be
considered a competiti!e ad!antage.
". Strategists are usually found in higher le!els of management and ha!e
considerable authority for decision-ma#ing in the firm.
$. %b&ecti!es should be measurable, quantitati!e, challenging, realistic, consistent
and prioriti'ed.
(. )he mission statement should be short*preferably one sentence.
+. ,f an organi'ation chooses to ha!e both a mission and a !ision, the mission
statement should be established first.
-. .hen de!eloping a mission statement, it is usually ad!isable to in!ol!e as fe
managers as possible.
/. 0esearch has failed to find a positi!e relationship beteen mission statements
and organi'ational performance.
11. A mission statement promotes a sense of shared e2pectations among all le!els
and generations of employees.
11. .hen a company has been successful and3or unsuccessful, the question
4.hat is our business56 should be as#ed.
12. An e2ternal audit focuses on identifying and e!aluating trends and e!ents
ithin the control of management.
13. As many managers and employees as possible should be in!ol!ed in the process
of performing an e2ternal audit.
1". )o perform an e2ternal audit, a company first must gather competiti!e
intelligence and information about social, cultural, demographic, en!ironmental,
economic, political, legal, go!ernmental and technological trends.
1$. 0esearch findings suggest that a greater percentage of a firm7s profitability
can be e2plained by the industry than can be e2plained by the firm7s internal
factors.
1(. According to 8ichael 9orter, fi!e competiti!e forces create !ital opportunities
and threats to organi'ations: :1; ne entrants, :2; substitute products or ser!ices,
:3; bargaining poer of suppliers, :"; bargaining poer of buyers, and :$;
ri!alry among e2isting firms.
1+. )he process of performing an internal audit, compared to the e2ternal audit,
pro!ides more opportunity for participants to understand ho their &obs,
departments and di!isions fit into the hole organi'ation.
1-. <ultural products include !alues, beliefs, stories, and language.
1/. =in#ages beteen a firm7s culture and strategies often determine success.
21. )he smile is one form of communication that or#s the same orldide.
21. Allocating resources is one of the fi!e basic acti!ities :functions; performed
by managers.
22. <ontrolling is the management function that is most important for the e!aluation
stage of the strategic management process.
23. )he purpose of organi'ing is to achie!e coordinated effort by defining tas# and
authority relations.
2". )here are se!en basic functions of mar#eting: customer analysis, selling,
product and ser!ice planning, pricing, distribution, mar#eting research and
opportunity analysis.
2$. )est mar#eting is used more frequently by industrial companies than consumer
goods companies.
2(. )hree areas, according to >ames ?an @orne, comprise the functions or basic
decision areas of finance: the in!estment decision, the financing decision and
the earnings decision.
2+. )he functions of information systems are groing in importance because
organi'ations are becoming more comple2, decentrali'ed and globally
dispersed.
2-. Affecti!e strategy formulation can usually guarantee successful strategy
implementation.
2/. ,t is alays easier to say you are going to do something :strategy formulation;
than to actually do it :strategy implementation;.
31. Annual ob&ecti!es are #ey components in the strategic-management process
because they dictate ho resources ill be allocated.
31. 9olicies refer to specific guidelines, methods, procedures, rules, forms, and
administrati!e practices established to support and encourage or# toard
stated goals.
32. <onflict of any #ind is a!oidable in organi'ations.
33. A2changing members of conflicting parties so each can gain an appreciation of
the other7s point of !ie e2emplifies a confrontation approach.
3". )as#s and acti!ities are grouped together by business function in a di!isional
organi'ational structure.
3$. )he most comple2 of all designs is a matri2 structure.
3(. 8ost strategists belie!e that an organi'ation7s ell being depends on
e!aluation of the strategic-management process.
3+. Adequate, timely feedbac# is important to effecti!e strategy e!aluation.
3-. According to 0ichard 0umelt, consonance and consistency are based on a
firm7s e2ternal assessment.
3/. <orrecti!e action in strategy e!aluation is necessary to #eep an organi'ation
on trac# toard achie!ing stated ob&ecti!es
"1. %b&ecti!e is the end results of planned acti!ity
Question Two A : Befine the folloing concepts
Strategy
Strategic e!aluation
<orporate strategy
Cusiness strategy
Dunctional strategy
B: Bescribe the process of performing internal audit5

Question Three A: hat are the main benefits of setting ob&ecti!es5
B: .hat are the main questions you can use for appraisal strategic performance5


Question for students who did not do the mid exam
Befine strategic management and e2plain the main benefits of employing this
technique5