Question 1

Strategy formulation at the business level addresses best how to compete in a given business

Accepted Answer

A)   to attain competitive advantage.
B)   to reduce costs.
C)   to decrease buyer power.
D)   to thwart entry of new rivals.E) A) and B)
F) A) and C)

Question 2

Effective leaders set a direction and develop an organization so that it is committed to excellence and ________ behavior.

Accepted Answer

A)   performant
B)   strategic
C)   ethical
D)   positiveE) C) and D)
F) B) and D)

Question 3

The three primary participants in corporate governance are: (1) the shareholders, (2) the management (led by the chief executive officer), and (3) the employees.

Accepted Answer

A) True 
 B)False

Question 4

Strategy analysis is the starting point of the strategic management process and consists of the

Accepted Answer

A)   analysis only of the vision, mission, and objectives of the firm.
B)   analysis of the relevant internal and external environmental factors only.
C)   analysis of relevant competitors only.
D)   matching of vision, mission, and objectives with the relevant internal and external environmental factors.E) None of the above
F) B) and C)

Question 5

Effectiveness is often defined as

Accepted Answer

A)   doing things right.
B)   stakeholder satisfaction.
C)   doing the right thing.
D)   productivity enhancement.E) All of the above
F) None of the above

Question 6

________ may be considered the advance work that must be done in order to effectively formulate and implement strategies.

Accepted Answer

A)   Goal setting
B)   Corporate entrepreneurship
C)   Strategy analysis
D)   Organizational designE) None of the above
F) All of the above

Question 7

Our goal is to help save 100,000 more lives each year. (Varian Medical Systems)  This is an example of a

Accepted Answer

A)   nonfinancial strategic objective.
B)   financial strategic objective.
C)   vision statement.
D)   mission statement.E) B) and C)
F) C) and D)

Question 8

Leadership is a necessary (but not sufficient)  condition for organizational success. Leaders should emerge at which level(s)  of an organization?

Accepted Answer

A)   only at the top
B)   in the middle
C)   throughout the organization
D)   only during times of changeE) B) and D)
F) All of the above

Question 9

A CEO made a lot of mistakes in assessing the market and the competitive conditions and improperly redesigning the organization into numerous business units. Such errors led to significantperformance declines. According to the text, this example illustrates the ________ perspective of leadership.

Accepted Answer

A)   external control
B)   romantic
C)   internal mechanism
D)   operationalE) A) and B)
F) B) and D)

Question 10

The organizational versus the individual rationality perspective suggests that objectives that are

Accepted Answer

A)   good for a functional area are always good for the overall organization.
B)   good for the overall organization are always best for a functional area.
C)   best for a functional area may not be best for the overall organization.
D)   best for one functional area will never be best for all functional areas.E) A) and D)
F) B) and C)

Question 11

Strategic management involves the recognition of trade-offs between effectiveness and

Accepted Answer

A)   cost.
B)   value.
C)   return on investment.
D)   efficiency.E) A) and B)
F) All of the above

Question 12

Strategic management consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.

Accepted Answer

A) True 
 B)False

Question 13

Some benefits of sustainability projects include

Accepted Answer

A)   reducing risks.
B)   lagging behind regulations.
C)   displeasing communities.
D)   ignoring employee morale.E) All of the above
F) B) and C)

Question 14

Richard Branson, the founder of the Virgin Group, is well known for creating an inclusive organizational structure in which anybody in the organization can be involved in generating and acting on new business ideas.

Accepted Answer

A) True 
 B)False

Question 15

Learning organizations permit the entire organization to benefit from ________ talents.

Accepted Answer

A)   internal and external
B)   individual and collective
C)   internal and collective
D)   external and individualE) C) and D)
F) B) and D)

Question 16

The text argues that a strategic perspective in an organization should be emphasized

Accepted Answer

A)   at the top of the organization.
B)   at the middle of the organization.
C)   throughout the organization.
D)   from the bottom up.E) A) and B)
F) B) and C)

Question 17

Traditional financial models are built around relatively easy-to-measure, monetized results; whereas, the benefits of sustainability projects involve

Accepted Answer

A)   clear tangibles.
B)   clear intangibles.
C)   fuzzy tangibles.
D)   fuzzy intangibles.E) A) and B)
F) B) and C)

Question 18

Members of boards of directors are

Accepted Answer

A)   appointed by the Securities and Exchange Commission.
B)   elected by the shareholders as their representatives.
C)   elected by the public.
D)   only allowed to serve one term of four years.E) All of the above
F) B) and D)

Question 19

In strategic management, both the short-term and long-term perspectives need to be considered because

Accepted Answer

A)   shareholder value is only measured by short-term returns.
B)   shareholders only care about long-term returns.
C)   long-term vision precludes the analysis of present operating needs.
D)   the creative tension between the two forces managers to develop more successful strategy.E) All of the above
F) A) and B)

Question 20

The ROI on sustainability efforts can be difficult to quantify because

Accepted Answer

A)   an excess of necessary data for accurate calculation is readily available.
B)   benefits from such projects are tangible.
C)   the payback period is on a different time frame.
D)   the payback period is on the same time frame.E) A) and D)
F) A) and C)

Exam 1: Strategic Management Creating Competitive Advantages

A CEO made a lot of mistakes in assessing the market and the competitive conditions and improperly redesigning the organization into numerous business units. Such errors led to significantperformance declines. According to the text, this example illustrates the ________ perspective of leadership.

Correct AnswerverifiedShow Answer

Effective leaders set a direction and develop an organization so that it is committed to excellence and ________ behavior.

Correct AnswerverifiedShow Answer

In strategic management, both the short-term and long-term perspectives need to be considered because

Correct AnswerverifiedShow Answer

Richard Branson, the founder of the Virgin Group, is well known for creating an inclusive organizational structure in which anybody in the organization can be involved in generating and acting on new business ideas.

Correct AnswerverifiedShow Answer

________ may be considered the advance work that must be done in order to effectively formulate and implement strategies.

Correct AnswerverifiedShow Answer

The text argues that a strategic perspective in an organization should be emphasized

Correct AnswerverifiedShow Answer

Effectiveness is often defined as

Correct AnswerverifiedShow Answer

Our goal is to help save 100,000 more lives each year. (Varian Medical Systems) This is an example of a

Correct AnswerverifiedShow Answer

Some benefits of sustainability projects include

Correct AnswerverifiedShow Answer

Traditional financial models are built around relatively easy-to-measure, monetized results; whereas, the benefits of sustainability projects involve

Correct AnswerverifiedShow Answer

Strategy formulation at the business level addresses best how to compete in a given business

Correct AnswerverifiedShow Answer

Strategy analysis is the starting point of the strategic management process and consists of the

Correct AnswerverifiedShow Answer

Leadership is a necessary (but not sufficient) condition for organizational success. Leaders should emerge at which level(s) of an organization?

Correct AnswerverifiedShow Answer

Strategic management involves the recognition of trade-offs between effectiveness and

Correct AnswerverifiedShow Answer

Members of boards of directors are

Correct AnswerverifiedShow Answer

Learning organizations permit the entire organization to benefit from ________ talents.

Correct AnswerverifiedShow Answer

Strategic management consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.

Correct AnswerverifiedShow Answer

The three primary participants in corporate governance are: (1) the shareholders, (2) the management (led by the chief executive officer), and (3) the employees.

Correct AnswerverifiedShow Answer

The ROI on sustainability efforts can be difficult to quantify because

Correct AnswerverifiedShow Answer

The organizational versus the individual rationality perspective suggests that objectives that are

Correct AnswerverifiedShow Answer

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