MGMT 449 - Exam 1 (Chapters 1 - 3) Advanced Test Answer Already Passed.

1.1 Know the perspectives of leadership and their implications. - correct answer 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. - correct answer 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. - correct answer 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. - correct answer 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. - correct answer 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. - correct answer 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. - correct answer A. are a combination of deliberate and emergent strategies 1.7 Know the key factors that contribute to rivalry. - correct answer 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. - correct answer Zero Sum: Stakeholders compete for attention & resources Gain of one is a loss to the other Symbiosis: Stakeholders are dependent upon each other for success & well-being Receive mutual benefits 1.8 Example Question P&G created a cleaning product that led to a change in consumer shopping habits and also a revolution in industry supply chain economics. According to the text, this is an example of ___________. A. zero-sum relationship among stakeholders B. stakeholder symbiosis C. rewarding stakeholders D. emphasizing financial returns - correct answer B. stakeholder symbiosis 1.9 Know why top level executives are important for strategic implementation other than the fact that they formulate the strategy. - correct answer Champion and guide ideas 1.10 Know the Triple Bottom Line concept. - correct answer Assessment of a firm's financial, social, and environmental performance - accounting for the environmental and social costs of doing business 1.11 Know the Shared Value Concept. - correct answer Policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in which it operates. Social responsibility is not just an added cost to business. Instead businesses are creators of value that they then share with society in a mutually beneficial rela