Chapter 13 - Strategic Control

Chapter 13
Strategic Control

Multiple Choice Questions

1. (p. 398) _______________ is concerned with tracking a strategy as it is being implemented,

detecting problems or changes in its underlying premises and making necessary adjustments.
A. Strategy evaluation
B. Strategic implementation
C. Strategic control
D. Strategic decision-making

Difficulty: Medium
Learning Objective: 1

2. (p. 398) Which of the following is typically not a question asked by managers who are
responsible for the success of their strategy?
A. Are we moving in the proper direction?
B. Are key things falling in place?
C. Is our portfolio balanced?
D. How are we performing?

Difficulty: Medium
Learning Objective: 1

3. (p. 399) The rapid, accelerating change of the global marketplace has made the need for
____________ key in managing a company.
A. strategic control
B. Mission clarification
C. Long-term performance
D. Alternative structures

Difficulty: Medium
Learning Objective: 1

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4. (p. 399) The control of strategy can be characterized as a form of:

A. "Performance control"
B. "Mission control"
C. "Vision control"
D. "Steering control"

Difficulty: Medium
Learning Objective: 1

5. (p. 399) Which of the following is NOT one of the basic types of strategic control?
A. Premise control
B. Performance control
C. Special alert control
D. Implementation control

Difficulty: Hard
Learning Objective: 1

6. (p. 400) Which of the following types of strategic control has a low degree of focusing?
A. Special alert control
B. Implementation control
C. Strategic surveillance
D. Premise control

Difficulty: Medium
Learning Objective: 1

7. (p. 400) Which of the following types of strategic control has a low degree of formalization?
A. Special alert control
B. Implementation control
C. Strategic surveillance
D. Premise control
Difficulty: Medium
Learning Objective: 1

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8. (p. 400) Which of the following types of strategic control has a low degree of centralization?
A. Special alert control
B. Implementation control
C. Strategic surveillance
D. Premise control

Difficulty: Medium
Learning Objective: 1

9. (p. 400) Which of the following types of strategic control seldom is used with environmental
factors?
A. Strategic surveillance
B. Special alert control
C. Premise control
D. Implementation control

Difficulty: Medium
Learning Objective: 1

10. (p. 399) ___________ is designed to check systematically and continuously whether the
premises on which the strategy is based are still valid.
A. Strategic surveillance
B. Implementation control
C. Special alert control
D. Premise control

Difficulty: Medium
Learning Objective: 1

11. (p. 399) ________ is the systematic recognition and analysis of assumptions upon which a
strategic plan is based, to determine if those assumptions remain valid in changing
circumstances and in light of new information.
A. Special alert control
B. Implementation control
C. Premise control
D. Strategic surveillance
Difficulty: Medium
Learning Objective: 1

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12. (p. 401) ___________ is designed to monitor a broad range of events inside and outside the
firm that are likely to affect the course of its strategy.
A. Special alert control
B. Strategic surveillance
C. Premise control
D. Implementation control

Difficulty: Medium
Learning Objective: 1

13. (p. 401) Strategic surveillance must be kept:

A. As focused as possible
B. As unfocused as possible
C. As fast as possible
D. Internal

Difficulty: Medium
Learning Objective: 1

14. (p. 401) _______ should be a loose “environmental scanning” activity.

A. Special alert control
B. Implementation control
C. Strategic surveillance
D. Premise control

Difficulty: Medium
Learning Objective: 1

15. (p. 402) A(n) _____________ is the thorough and often rapid, reconsideration of the firm's
strategy because of a sudden, unexpected event.
A. Special alert control
B. Implementation control
C. Milestone control
D. Premise control

Difficulty: Medium
Learning Objective: 1

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16. (p. 402) The 2011 Japanese earthquake and tsunami would trigger what kind of control?
A. Strategic surveillance
B. Implementation control
C. Special alert control
D. Premise control

Difficulty: Medium
Learning Objective: 1

17. (p. 400) Which of the following types of strategic control has a low degree of focusing?
A. Special alert control
B. Implementation control
C. Strategic surveillance
D. Premise control

Difficulty: Medium
Learning Objective: 1

18. (p. 403) _____________ is designed to assess whether the overall strategy should be changed
in light of the results associated with the incremental actions that implement the overall
strategy.
A. Strategic surveillance
B. Special alert control
C. Premise control
D. Implementation control

Difficulty: Medium
Learning Objective: 1

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19. (p. 403) __________ provide managers with information that helps them determine whether
the overall strategy is progressing as planned or needs to be adjusted.
A. Strategic threats
B. Strategic thrusts
C. Milestone reviews
D. Frequency reviews

Difficulty: Medium
Learning Objective: 1

20. (p. 403) The __________ that take place usually involve a full-scale reassessment of the
strategy and of the advisability of continuing or refocusing the firm's direction.
A. Abandonment reviews
B. Milestone reviews
C. Strategic thrusts
D. Strategic implementation

Difficulty: Medium
Learning Objective: 1

21. (p. 405) Which of the following is NOT one of the steps necessary for operational control
systems to be effective?
A. Measure post-action performance
B. Set standards for performance
C. Initiate corrective action
D. Identify deviations from standards set

Difficulty: Medium
Learning Objective: 1

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22. (p. 406) The _______ is of particular interest because it provides a basis for examining
suggested actions and for finalizing decisions on changes or adjustments in the firm's
operations.
A. Progress to date
B. Simple ranking
C. Current deviation
D. Operational standard

Difficulty: Medium
Learning Objective: 1

23. (p.407) Robert Kaplan and David Norton created the _________, a management control
system that enables companies to clarify their strategies, translate them into action and
provide quantitative feedback as to whether the strategy is creating value, leveraging core
competencies, satisfying the company's customers and generating a financial reward to its
shareholders.
A. Balance-matrix
B. Shareholder methodology
C. Balanced scorecard
D. Strategic approach

Difficulty: Easy
Learning Objective: 2

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24. (p. 408) The ___________ typically uses measures like cash flow, return on equity, sales and
income growth as part of the balanced scorecard approach.
A. Customer perspective
B. Business process perspective
C. Learning and growth perspective
D. Financial perspective

Difficulty: Easy
Learning Objective: 2

25. (p. 409) A ______ is a user interface that organizes and presents information from multiple
digital sources simultaneously in a user-designed format on the computer screen.
A. Wiki
B. Genie
C. Dashboard
D. Widget

Difficulty: Easy
Learning Objective: 3

26. (p. 411) Strategic controls and comprehensive control programs like the _________ bring the
entire management task into focus.
A. Capital budgeting
B. Balanced scorecard
C. Financial budgeting
D. Sales budgeting

Difficulty: Easy
Learning Objective: 3

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27. (p. 411) The overriding goal of a control system is to enable the ____ and ________ of the
business.
A. Improvement, diversification
B. Process, development
C. Survival, long-term success
D. Invention, entrepreneurship

Difficulty: Easy
Learning Objective: 3

Essay Questions

28. Define strategic control. What questions does it help managers answer?

Please refer to the introductory discussion on pages 398-399.

Learning Objective: 1

29. How is strategic control different from postaction control?

Please refer to the discussion on page 398.

Learning Objective: 1

30. What is premise control? Identify and give examples of some environmental and industry
factors.

Please refer to the discussion titled "Premise Control" on pages 399-401.

Learning Objective: 1

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31. Define strategic surveillance. How does the nature of strategic surveillance differ from
that of premise controls?

Please refer to the discussion titled "Strategic Surveillance," on pages 401-402.

Learning Objective: 1

32. What is special alert control? Use an example to show its importance.

Please refer to the discussion “Special Alert Control” on pages 402-403.

Learning Objective: 1

33. What is implementation control? Identify the two basic types.

Please refer to the discussion titled "Implementation Control," on page 403.

Learning Objective: 1

34. Identify and discuss the steps common to all postaction controls.

Please refer to the discussion on page 405.

Learning Objective: 1

35. Describe the balance scorecard methodology. Why is it used?

Please refer to the discussion titled "The Balanced Scorecard Methodology," on pages 407-
411.

Learning Objective: 2

36. What is a dashboard? How does it help monitor performance?

Please refer to the discussion on pages 409-410.

Learning Objective: 2

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