【正文】 generally superior to the entrepreneurial and adaptive modes when the organization is fairly large, when knowledge is spread throughout the organization, and when the organization has at least a moderate amount of time to engage in strategic planning. The book proposes that the planning mode is more rational and thus a better way of making most strategic decisions than are the other modes. It may not, however, always be possible. The entrepreneurial mode can be very useful when time is short, one person or group is able to grasp the essentials of the business and its environment, and that person or group is able to influence the rest of the organization to accept the strategic decision. The adaptive mode is generally not considered to be very effective in most situations, but seems to be the fallback mode when entrepreneurial or planning modes can39。t operate effectively because of political infighting or lethargy. It is a typical mode in notforprofit organizations.ADDITIONAL DISCUSSION QUESTIONSA1. What is meant by the hierarchy of strategy?The hierarchy of strategy is a term used to describe the interrelationships among the three levels of strategy (corporate, business, and functional) typically found in large business corporations. Beginning with the corporate level, each level of strategy forms the strategic environment of the next level in the corporation. This means that corporate level objectives, strategies, and policies form a key part of the environment of a division or business unit. The objectives, strategies, and policies of the division or unit must therefore be formulated so as to help achieve the plans of the corporate level. The same is true of functional departments which must operate within the objectives, strategies, and policies of a division or unit.A2. Does every business firm have business strategies?Every business firm should have a business strategy for every industry or market segment it serves. A business strategy aims at improving the petitive position of a business firm39。s products or services in a specific industry or market segment. Firms must therefore have business strategies even if they are not organized on the basis of operating divisions. Nevertheless, it is still possible that some business firms do not have clearly stated business strategies. If they hope to be successful, however, they must have at least some rudimentary (even though unstated) position they take in terms of getting and keeping customers or clients through petitive and/or cooperative strategies.A3. What information is needed for the proper formulation of strategy? Why?In order to properly formulate strategy, it is essential to have information on the important variables in both the external and internal environments of the corporation. This includes general forces in the societal environment as well as the more easytoidentify groups such as customers and petitors in the task environment. A corporation needs to have this information in order to identify a need it can fulfill via its corporate mission. It is also important to have information on the corporation39。s structure, culture, and resources. A corporation needs to have this information in order to assess its capabilities to satisfy a customer39。s need by making and/or distributing a product or service. Information on both the internal and external environments can also help a corporation to predict likely opportunities and threats. Longterm strategies can be designed with these in mind.MULTIPLE CHOICE QUESTIONS (The letter after each item number is the correct answer)1B Which is NOT one of the strategic questions that an organization must ask itself? a. Where is the organization now? b. How can functional and operational areas be improved? () c. If no changes are made, where will the organization be in one year? d. If the evaluation is negative, what specific actions should management take? e. If no changes are made, where will the organization be in 10 years?2D Which of the following is NOT a characteristic of strategic decisions as mentioned in the text? a. directive b. consequential c. rare d. continuous ()3A Strategic planning within a small organization a. may be informal and irregular. () b. must be elaborate to allow for future growth. c. should be formalized and explicitly stated d. should be done by the president only. e. is unnecessary and a waste of time. 4D An organization that is skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights a. asks if it should be or not be. b. is operating in Phase 1 of strategic management. c. has a mechanistic structure. d. is a learning organization. () e. is crazy. 5B Research suggests that strategic management evolves through four sequential phases in corporations. The first phase is a. externallyoriented planning. b. basic financial planning. () c. internallyoriented planning. d. forecastbased planning. e. strategic management. 6A Research done by Henry Mintzberg suggests that strategy formulation a. is irregular and a discontinuous process. () b. should be followed unswervingly to ensure success of the plan. c. is worthless. d. should be reviewed after a specific interval of time to make sure it is still applicable. e. is merely a checklist of actions following a logical process. 7B Which of the following is NOT one the five triggering events that are the stimulus for a strategic change? a. Intervention by the organization39。s bank b. Entrance of a new petitor into the industry () c. Change in ownership of the organization d. New CEO e. Awareness by management of decreased profitability 8B The corporate mission is best described by which one of the following? a. A description of the activities carried out by the organizatio