Strategic Management Practice Test: Process of Crafting and Executing Strategy | Practice Test / Quiz / MCQs

Home > Strategic Management 101 > Quizzes > Strategic Management Practice Test: Process of Crafting and Executing Strategy

Strategic Management Practice Test: Process of Crafting and Executing Strategy

Fast practice, instant feedback. Timer auto-submits when time’s up.

Avg score: 38% • Most missed: “A company that pursues and achieves strategic objectives”

Study First Challenge a Friend Stats

Strategic Management Practice Test: Process of Crafting and Executing Strategy

Time left 00:00

25 Questions

1. Which one of the following questions is not something that company managers should consider in choosing to pursue one strategic course or directional path versus another?

Will our present business generate sufficient growth and profitability in the years ahead to please shareholders?Is the company stretching its resources too thinly by trying to compete in too many markets or segments, some of which are unprofitable?Are changing market and competitive conditions acting to enhance or weaken the company’s business outlook?Do we have a better business model than key rivals?What emerging market opportunities should the company pursue and which ones should not be pursued?

2. Company objectives

play the important role of establishing the direction in which it needs to be headed.are important because they help guide managers in deciding what the company’s strategic intent should be.should be set in a manner that does not conflict with the performance targets of lower-level organizational units. are needed only in those areas directly related to a company's short-term and long-term profitability.need to be broken down into performance targets for each of its separate businesses, product lines, functional departments, and individual work units.

3. A company that pursues and achieves strategic objectives

is generally not strongly focused on its true mission of making a profit.is likely to be a weak financial performer because diverting resources to the pursuit of strategic objectives takes away from the achievement of financial performance targets.believes that the company’s financial performance is not as important as it really is.is frequently in a better position to improve its future financial performance because of the increased competitiveness that flows from the achievement of strategic objectives.is likely to weaken the achievement of its short-term and long-term financial objectives.

4. Functional strategies

concern the actions, approaches, and practices to be employed in managing particular functions or business processes or key activities within a business.are normally crafted by operating-level managers.are normally crafted by the company’s CEO and other senior executives.are concerned with how to unify the firm's several different operating strategies into a cohesive whole.specify what actions a company should take to resolve specific strategic issues and problems.

5. Management’s strategic vision for an organization

spells out how the company will become a big moneymaker and boost shareholder value.charts a strategic course for the organization (“where we are going”) and provides a rationale for why this directional path makes good sense.addresses the critical issue of “why our business model needs to change and how we plan to change it.”describes in fairly specific terms the organization’s strategic intent, strategic objectives, and strategy.spells out the organization’s strategic intent and the actions and moves that will be undertaken to achieve it.

6. Successfully leading the effort to instill a results-oriented work climate and put constructive pressure on the organization to achieve good results

requires that top executives make operating excellence the company’s only core value.entails such actions as promoting a culture of innovation and high performance, emphasizing individual initiative and creativity, and respecting the contribution of individuals and groups.hinges on the extent to which top management emphasizes a positive rather than a negative reward system.hinges on the degree to which lower-level managers and supervisors are good practitioners of MBWA.calls for top executives to stress the adoption of best practices and push for continuous product innovation.

7. Strengthening a company’s competencies and competitive capabilities

All of the above.is an exercise best orchestrated by senior managers who have the clout to enforce the necessary networking and cooperation among individuals, groups, departments, and external allies.often requires top executive action because senior managers are in the best position to anticipate changes in customer requirements and market conditions and see the potential of new competencies and capabilities.is often a top management function because proactively building new competencies and capabilities ahead of rivals to gain a competitive edge is strategic leadership of the best kind.often requires proactive leadership by top executives because they are in the best organizational position to spot opportunities to leverage existing competencies and competitive capabilities.

8. Breaking down resistance to a new strategic vision typically requires that top management

institute a balanced scorecard approach to measuring company performance, with the “balance” including a mixture of both old and new performance measures.raise wages and salaries to win the support of company personnel for the company’s new direction. frequently reiterate the basis for the new direction at company gatherings, address employee concerns and fears head-on, and provide updates and progress reports as events unfold .keep company personnel well-informed about forthcoming changes in the company’s strategy.move promptly to update the company’s business model and hold meetings with company personnel to explain the merits of the new business model.

9. Which of the following is the best example of a well-stated financial objective?

Increase earnings per share by 15% annually.Gradually boost market share from 10% to 15% over the next several years.Maximize total company profits and return on investment.Achieve lower costs than any other industry competitor.Boost revenues by a percentage greater than the industry average.

10. Masterful strategies come from

successful managerial efforts to develop a sound strategic vision.doing things differently from competitors where it counts—out-innovating them, being more efficient, adapting faster—rather than running with the herd.doing a very thorough job of strategic planning.involving as many company personnel as possible in the strategy-making process.crafting a strategy that mimics the best parts of the strategies of the industry leaders.

11. The leadership challenges that top executives face in making corrective adjustments when things are not going well include

knowing when to replace poorly performing subordinates and when to do a better job of coaching them to do the right things.having the analytical skills to separate the problems due to a bad strategy from the problems due to bad strategy execution.being able to discern whether to promote better achievement of strategic performance targets or whether to promote better achievement of financial performance targets.deciding whether the company would be better off making adjustments that curtail the achievement of strategic objectives or that curtail the achievement of financial objectives.deciding when adjustments are needed and what adjustments to make.

12. Perhaps the most important benefit of a vivid, engaging, and convincing strategic vision is

helping gain managerial consensus on what resources must be developed to successfully achieve strategic objectives.helping justify the company’s mission of making a profit.keeping company personnel well-informed.uniting company personnel behind managerial efforts to get the company moving in the intended direction.helping company personnel understand the logic of the company's business model.

13. The difference between the concept of a company mission statement and the concept of a strategic vision is that

a mission statement typically concerns a company’s present business scope (“who we are and what we do”) whereas the principal concern of a strategic vision is the company's long term direction and future product-market-customer-technology focus.the mission is to make a profit, whereas a strategic vision concerns what business model to employ in striving to make a profit.a mission statement deals with what to accomplish on behalf of shareholders and a strategic vision concerns what to accomplish on behalf of customers.a mission statement deals with “where we are headed ” whereas a strategic vision provides the critical answer to “how will we get there?”a mission concerns what to do to achieve short-run objectives and a strategic vision concerns what to do to achieve long-run performance targets.

14. Strategy-making is

first and foremost the function and responsibility of a company's board of directors.first and foremost the function of a company's chief executive officer—who formulates strategic initiatives and submits them to the board of directors for approval.more of a collaborative group effort that involves all managers and sometimes key employees, as opposed to being the function and responsibility of a few high-level executives.first and foremost the function and responsibility of a company's strategic planning staff.primarily the responsibility of key executives rather than a task for a company’s entire management team.

15. A company exhibits strategic intent when

it pursues a particular competitive advantage.it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective.top management establishes a comprehensive set of strategic objectives.senior executives pursue their strategic vision.it adopts a strategic plan.

16. A company's mission statement typically addresses which of the following questions?

What objectives and level of performance do we want to achieve?""Who are we and what do we do?""What business model should we employ to achieve our objectives and our vision?""Where are we going and what should our strategy be?""What approach should we take to achieve sustainable competitive advantage?""

17. The payoffs of a clear vision statement do not include

providing a tool for winning the support of organizational members for internal changes that will help make the vision a reality. greater ability to avoid strategic inflection points.helping to crystallize top management's own view about the firm's long-term direction. reducing the risks of rudderless decision-making.helping the organization prepare for the future.

18. The strategy-making, strategy-executing process

is principally concerned with sizing up an organization's internal and external situation, so as to be prepared for the challenge of developing a sound business model.is usually delegated to members of a company's board of directors so as not to infringe on the time of busy executives.includes establishing a company’s mission, developing a business model aimed at making the company an industry leader, and crafting a strategy to implement and execute the business model.embraces the tasks of developing a strategic vision, setting objectives, crafting a strategy, implementing and executing the strategy, and then monitoring developments and initiating corrective adjustments in light of experience, changing conditions, and new opportunities.is primarily the responsibility of top executives and the board of directors; very few managers below this level are involved.

19. The managerial purpose of setting objectives includes

pushing company personnel to be more inventive and to exhibit more urgency in improving the company’s financial performance and business position.converting the strategic vision into specific performance targets—results and outcomes the organization wants to achieve.All of these.challenging and helping stretch the organization to perform at its full potential and deliver the best possible results.using the objectives as yardsticks for tracking the company’s progress and performance.

20. A company’s strategic vision

spells out a company’s strategic intent, its strategic and financial objectives, and the business approaches and operating practices that will underpin its efforts to achieve sustainable competitive advantage.defines “who we are and what we do.”is management’s story line for how it plans to implement and execute a profitable business model.delineates management’s aspirations for the business, providing a panoramic view of “where we are going” and a convincing rationale for why this makes good business sense.sets forth what business the company is presently in and why it uses particular operating practices in trying to please customers.

21. A set of “stretch” financial and strategic objectives

challenges company personnel to execute the strategy with greater proficiency.helps convert the mission statement into meaningful company values.helps create a “balanced scorecard” for judging company performance.pushes the company closer to true profit maximization.is an effective tool for avoiding ho-hum results.

22. Developing a strategic vision for a company entails

coming up with a long-term plan for outcompeting rivals and achieving a competitive advantage.describing its business model and the kind of value that it is trying to deliver to customers.describing who we are and what we do.""prescribing a strategic direction for the company to pursue and a rationale for why this strategic path makes good business sense.putting together a story line of why the business will be a moneymaker.

23. Strategic intent refers to a situation where a company

decides to adopt a particular strategy.commits to pursuing stretch strategic objectives.changes its long-term direction and decides to pursue a newly-adopted strategic vision. relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective.commits to using a particular business model to make money.

24. Which of the following are common shortcomings of company vision statements?

Not customer-driven, out-of-step with emerging technological trends, and too ambitious Too specific, too inflexible, and can’t be achieved in 5 yearsToo broad, vague or incomplete, bland/uninspiring, not distinctive, and too reliant on superlativesUnrealistic, unconventional, and un-businesslikeToo broad, too narrow, and too risky

25. Managerial jobs with strategy-making responsibility

are relatively rare because most strategy-making is done by the members of a company's board of directors.are primarily located in the strategic planning departments of large corporations.are found only at the vice-president level and above in most companies.extend throughout the managerial ranks and exist in every part of a companybusiness units, operating divisions, functional departments, manufacturing plants, and sales districts.seldom exist within a functional department (e.g., marketing and sales) or in an operating unit (a plant or a district office) because these levels of the organization structure are well below the level where strategic decisions are typically made.

⚡ Recently practiced quizzes in this topic

Live quiz activity

25 Questions

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know?
Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

25 Questions

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know? Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know?
Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com