Answer the following statements true (T) or false (F)
1. Good strategy allows a company to be everything to everyone.
2. Strategic planning is appropriate for large companies, but does not help the performance of small companies.
3. Management of a small company in an industry that is not very competitive should not engage in strategic planning because the small gains in performance may not be worth the effort.
4. Organizations may turn to the strategic-management process after a crisis.
1. FALSE
Strategy requires trade-offs in competing. Some strategies are incompatible. Thus a company has to choose not only what strategy to follow but what strategy not to follow.
2. FALSE
One analysis of several studies found that strategic planning was appropriate not just for large firms. Companies with fewer than 100 employees could benefit as well, although the improvement in financial performance was small.
3. TRUE
Research results indicate that for small companies strategic planning is probably not worth the effort unless the company is in a highly competitive industry where small differences in performance may affect the firm's survival potential.
4. TRUE
When is a good time to begin the strategic-management process? Often it's touched off by some crisis, such as the one Toyota faced regarding claims of uncontrolled acceleration problems in its automobiles.
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