12e TB Chap 13

Chapter 13 - Strategic Control
Chapter 13
Strategic Control
Multiple Choice Questions
1. (p. 354) _______________ 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. 354) 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
3. (p. 354) 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
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4. (p. 355) 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
5. (p. 356) 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
6. (p. 356) Which of the following types of strategic control seldom is used with environmental
factors?
A. Strategic surveillance
B. Special alert control
C. Premise control
Difficulty: Medium
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7. (p. 356) ___________ is designed to check systematically and continuously whether the
premises on which the strategy is based are still valid.
C. Special alert control
D. Premise control
Difficulty: Medium
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8. (p. 357) ___________ is designed to monitor a broad range of events inside and outside the
firm that are likely to affect the course of its strategy.
B. Strategic surveillance
C. Premise control
Difficulty: Medium
9. (p. 357) Strategic surveillance must be kept:

A. As focused as possible
B. As unfocused as possible
C. As fast as possible
D. Internal
Difficulty: Medium
10. (p. 357) A(n) _____________ is the thorough and often rapid, reconsideration of the firm's
strategy because of a sudden, unexpected event.
C. Milestone control
D. Premise control
Difficulty: Medium
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11. (p. 358) _____________ 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.
B. Special alert control
C. Premise control
Difficulty: Medium
12. (p. 360) __________ 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
13. (p. 360) 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
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14. (p. 361) 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
15. (p. 361) 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
16. (p.363) 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
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17. (p. 363) 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
18. (p. 365) 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
19. (p. 365) 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
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20. (p. 367) 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
Essay Questions
21. Define strategic control. How is this different from post-action control?
Please refer to the introductory discussion on page 354.
22. What is premise control? Identify and give examples of some environmental and industry
factors.
Please refer to the discussion titled "Premise Control" on pages 355-357.
23. 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 page 357.
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24. What is implementation control? Identify the two basic types.

Please refer to the discussion titled "Implementation Control," on page 358-360.
25. Describe the balance scorecard methodology. Why is it used?

Please refer to the discussion titled "The Balanced Scorecard Methodology," on pages 363367.
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What are the basic types of strategic control discussed in the text?

What is premise control and what factors does it check?

Chapter 13 - Strategic Control

1. (p. 354) _______________ is concerned with tracking a strategy as it is being implemented,

3. (p. 354) The control of strategy can be characterized as a form of:

Chapter 13 - Strategic Control

Chapter 13 - Strategic Control

Chapter 13 - Strategic Control

9. (p. 357) Strategic surveillance must be kept:

Chapter 13 - Strategic Control

Chapter 13 - Strategic Control

Chapter 13 - Strategic Control

Chapter 13 - Strategic Control

Chapter 13 - Strategic Control

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

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

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