MGMT 449 MIDTERM 1 QUESTIONS WITH VERIFIED
ANSWERS
*Know the two perspectives of leadership and their implications. - Answers - External
Control Perspective and Romantic View
*External Control Perspective - Answers - External forces determine the organization's
success (economic downturns)
*Romantic View - Answers - A leader is the key force in org's success (Steve Jobs)
*Know the three components of strategic management process and its four key
attributes - Answers - Three components:
1. Analysis
2. Decisions
3. Actions
Four key attributes:
1. Directs the organization toward overall goals and objectives.
2. Includes multiple stakeholders in decision making.
3. Needs to incorporate short-term and long-term perspectives.
4. Recognizes trade-offs between efficiency and effectiveness.
*Analysis - Answers - Strategic goals (vision, mission, strategic objectives), internal
environment, external environment
*Decisions - Answers - Formulation; what industries should we compete in? How should
we compete in those industries?
*Actions - Answers - Implementation of strategy; allocate resources and turn strategy
into a reality
*Know what is required to achieve sustainable competitive advantage - Answers - Cost
leadership and/or differentiation
(focusing on a narrow or industry wide market segment)
Ambidextrous - Answers - when managers focus on long-term effectiveness and short-
term efficiency at the same time
Intended Strategy - Answers - organization decisions are only determined by analysis
and rarely survive in original form
ANSWERS
*Know the two perspectives of leadership and their implications. - Answers - External
Control Perspective and Romantic View
*External Control Perspective - Answers - External forces determine the organization's
success (economic downturns)
*Romantic View - Answers - A leader is the key force in org's success (Steve Jobs)
*Know the three components of strategic management process and its four key
attributes - Answers - Three components:
1. Analysis
2. Decisions
3. Actions
Four key attributes:
1. Directs the organization toward overall goals and objectives.
2. Includes multiple stakeholders in decision making.
3. Needs to incorporate short-term and long-term perspectives.
4. Recognizes trade-offs between efficiency and effectiveness.
*Analysis - Answers - Strategic goals (vision, mission, strategic objectives), internal
environment, external environment
*Decisions - Answers - Formulation; what industries should we compete in? How should
we compete in those industries?
*Actions - Answers - Implementation of strategy; allocate resources and turn strategy
into a reality
*Know what is required to achieve sustainable competitive advantage - Answers - Cost
leadership and/or differentiation
(focusing on a narrow or industry wide market segment)
Ambidextrous - Answers - when managers focus on long-term effectiveness and short-
term efficiency at the same time
Intended Strategy - Answers - organization decisions are only determined by analysis
and rarely survive in original form
