MGMT 449 - EXAM 1 (CHAPTERS 1 - 3) QUESTIONS
WITH VERIFIED ANSWERS
1.1 Know the perspectives of leadership and their implications. - Answers - Romantic
view:
leader is the key force determining the organization's success - or lack thereof.
External control:
external forces - where the leader has limited influence - determine the organization's
success
1.2 Know the three components of strategic management process and its four key
attributes. - Answers - Analysis:
strategic goals (vision, mission, strategic objectives)
internal and external environment
Decisions - Formulation:
what industries should we compete in?
how should we compete in those industries?
Actions - Implementation:
Allocate necessary resources
Design the organization to bring intended strategies to reality
Key Attributes:
Directs the organization toward overall goals and objectives
Includes multiple stakeholders in decision making
Needs to incorporate short-term and long-term perspectives**
Recognizes trade-offs between efficiency and effectiveness
1.3 Know what is required to achieve sustainable competitive advantage. - Answers -
Possible only by performing different activities from rivals, or performing similar activities
in different ways
Cost leadership
Differentiation
Focusing on a narrow or industrywide market segment
, 1.4 Know the difference between organizational versus the individual rationality
perspective. - Answers - Romantic view: (IND.)
leader is the key force determining the organization's success - or lack thereof.
External control: (ORG.)
external forces - where the leader has limited influence - determine the organization's
success
1.5 Know the difference between effectiveness and efficiency. - Answers - Efficiency:
doing things right
performing actions at a low cost relative to a benchmark
Effectiveness
doing the right thing
tailoring actions to the needs of an organization rather than wasting effort
1.6 Know the difference between deliberate, realized and emergent strategies. -
Answers - Intended strategy:
strategy in which organizational decisions are determined only by analysis. Intended
strategy rarely survives in its original form
Realized strategy:
strategy in which organizational decisions are determined by both analysis (deliberate)
and unforeseen environmental developments, unanticipated resource constraints,
and/or changes in managerial preferences (emergent)
1.6 Example Question
According to Henry Mintzberg, the realized strategies of a firm
A. are a combination of deliberate and emergent strategies.
B. are a combination of deliberate and differentiation strategies.
C. must be based on a company's strategic plan.
D. must be kept confidential for competitive reasons. - Answers - A. are a combination
of deliberate and emergent strategies
1.7 Know the key factors that contribute to rivalry. - Answers - Operational effectiveness
= performing similar activities better than rivals
Sustainable competitive advantage is possible only by performing different activities
from rivals
1.8 Know the various approaches to managing relationships with stakeholders. -
Answers - Zero Sum:
Stakeholders compete for attention & resources
WITH VERIFIED ANSWERS
1.1 Know the perspectives of leadership and their implications. - Answers - Romantic
view:
leader is the key force determining the organization's success - or lack thereof.
External control:
external forces - where the leader has limited influence - determine the organization's
success
1.2 Know the three components of strategic management process and its four key
attributes. - Answers - Analysis:
strategic goals (vision, mission, strategic objectives)
internal and external environment
Decisions - Formulation:
what industries should we compete in?
how should we compete in those industries?
Actions - Implementation:
Allocate necessary resources
Design the organization to bring intended strategies to reality
Key Attributes:
Directs the organization toward overall goals and objectives
Includes multiple stakeholders in decision making
Needs to incorporate short-term and long-term perspectives**
Recognizes trade-offs between efficiency and effectiveness
1.3 Know what is required to achieve sustainable competitive advantage. - Answers -
Possible only by performing different activities from rivals, or performing similar activities
in different ways
Cost leadership
Differentiation
Focusing on a narrow or industrywide market segment
, 1.4 Know the difference between organizational versus the individual rationality
perspective. - Answers - Romantic view: (IND.)
leader is the key force determining the organization's success - or lack thereof.
External control: (ORG.)
external forces - where the leader has limited influence - determine the organization's
success
1.5 Know the difference between effectiveness and efficiency. - Answers - Efficiency:
doing things right
performing actions at a low cost relative to a benchmark
Effectiveness
doing the right thing
tailoring actions to the needs of an organization rather than wasting effort
1.6 Know the difference between deliberate, realized and emergent strategies. -
Answers - Intended strategy:
strategy in which organizational decisions are determined only by analysis. Intended
strategy rarely survives in its original form
Realized strategy:
strategy in which organizational decisions are determined by both analysis (deliberate)
and unforeseen environmental developments, unanticipated resource constraints,
and/or changes in managerial preferences (emergent)
1.6 Example Question
According to Henry Mintzberg, the realized strategies of a firm
A. are a combination of deliberate and emergent strategies.
B. are a combination of deliberate and differentiation strategies.
C. must be based on a company's strategic plan.
D. must be kept confidential for competitive reasons. - Answers - A. are a combination
of deliberate and emergent strategies
1.7 Know the key factors that contribute to rivalry. - Answers - Operational effectiveness
= performing similar activities better than rivals
Sustainable competitive advantage is possible only by performing different activities
from rivals
1.8 Know the various approaches to managing relationships with stakeholders. -
Answers - Zero Sum:
Stakeholders compete for attention & resources
