MGMT449 TEST PREP COMPLETELY
SOLVED!!
Why are strategies important in an organization? - ANSWERThey have a major impact
on performance relative to competitors.
How do managers identify and determine the process they want to use to create
competitive advantage? - ANSWERstrategy-making
Who is responsible for managing the strategy-making process and its implementation? -
ANSWERleadership
Why is competitive advantage an important part of creating profitability in a firm? -
ANSWERIt allows the firm to outperform rivals.
Why should maximizing shareholder value be the primary goal of profit-making
companies? - ANSWERto provide risk capital to shareholders
What do shareholders expect managers to deliver through strategic leadership? -
ANSWERhigh profitability and sustainable profit growth
How do strategic leaders use a business model to create competitive advantage? -
ANSWERto see how strategies will work together to achieve goals
In what way is a company's performance affected by the industry in which it competes?
- ANSWERDifferent industries have different competitive conditions.
Why is the profitability and profit growth of a company based on its relative success in
its industry and not on how much profit is made? - ANSWERDifferent industries are
characterized by different competitive conditions.
What is the role of the CEO as a corporate-level manager? - ANSWERto oversee
strategies for the entire organization
How do general managers ensure their business units support the overall goals of the
company? - ANSWERby developing strategies that support corporate objectives
Why are functional-level managers in a unique position to generate ideas for major
strategies of a company? - ANSWERThey are closest to the customer.
How does the strategy-making process typically end? - ANSWERwith the design of
control systems to implement the strategy
, Why is a customer-oriented approach to formulating a mission more effective than a
product-oriented business definition? - ANSWERA customer-oriented approach helps
safeguard the company from shifts in demand.
Which value or attribute can lead to higher performance and more success? -
ANSWERencouraging entrepreneurial behavior
What should be a manager's focus when setting up goals to increase the long-term
performance and competitiveness of the organization? - ANSWERissues such as
customer satisfaction and efficiency
Why is it important that managers monitor the feedback loop? - ANSWERIt provides
information for future strategy formulation.
How can managers most effectively implement strategies in a way that maximizes
profitability ethically and legally? - ANSWERuse governance systems that focus on
culture and control systems
Why do critics claim that formal planning systems are not effective? - ANSWERThe
world is unpredictable
When would the ability for lower-level managers to formulate and alter strategic
priorities be especially important? - ANSWERwhen radical new technology is introduced
in the industry
According to Henry Mintzberg's model of strategy development, why do many planned
strategies fail to be implemented? - ANSWERManagers did not anticipate changes in
the environment.
How can top-level managers develop more effective strategic plans? - ANSWERinclude
formal planning and emergent strategies
What is one of the biggest advantages to scenario planning in terms of strategic
management? - ANSWERManagers are forced to think outside the box.
Why is the ivory tower concept of planning less effective than a decentralized
approach? - ANSWERIt ignores the importance of autonomous action.
Why might a manager who uses simple analogies to explain complex issues create
problems in the decision-making process? - ANSWERThe analogy might not be valid.
Why is the use of devil's advocacy helpful in the decision-making process? - ANSWERIt
can counteract cognitive biases.
SOLVED!!
Why are strategies important in an organization? - ANSWERThey have a major impact
on performance relative to competitors.
How do managers identify and determine the process they want to use to create
competitive advantage? - ANSWERstrategy-making
Who is responsible for managing the strategy-making process and its implementation? -
ANSWERleadership
Why is competitive advantage an important part of creating profitability in a firm? -
ANSWERIt allows the firm to outperform rivals.
Why should maximizing shareholder value be the primary goal of profit-making
companies? - ANSWERto provide risk capital to shareholders
What do shareholders expect managers to deliver through strategic leadership? -
ANSWERhigh profitability and sustainable profit growth
How do strategic leaders use a business model to create competitive advantage? -
ANSWERto see how strategies will work together to achieve goals
In what way is a company's performance affected by the industry in which it competes?
- ANSWERDifferent industries have different competitive conditions.
Why is the profitability and profit growth of a company based on its relative success in
its industry and not on how much profit is made? - ANSWERDifferent industries are
characterized by different competitive conditions.
What is the role of the CEO as a corporate-level manager? - ANSWERto oversee
strategies for the entire organization
How do general managers ensure their business units support the overall goals of the
company? - ANSWERby developing strategies that support corporate objectives
Why are functional-level managers in a unique position to generate ideas for major
strategies of a company? - ANSWERThey are closest to the customer.
How does the strategy-making process typically end? - ANSWERwith the design of
control systems to implement the strategy
, Why is a customer-oriented approach to formulating a mission more effective than a
product-oriented business definition? - ANSWERA customer-oriented approach helps
safeguard the company from shifts in demand.
Which value or attribute can lead to higher performance and more success? -
ANSWERencouraging entrepreneurial behavior
What should be a manager's focus when setting up goals to increase the long-term
performance and competitiveness of the organization? - ANSWERissues such as
customer satisfaction and efficiency
Why is it important that managers monitor the feedback loop? - ANSWERIt provides
information for future strategy formulation.
How can managers most effectively implement strategies in a way that maximizes
profitability ethically and legally? - ANSWERuse governance systems that focus on
culture and control systems
Why do critics claim that formal planning systems are not effective? - ANSWERThe
world is unpredictable
When would the ability for lower-level managers to formulate and alter strategic
priorities be especially important? - ANSWERwhen radical new technology is introduced
in the industry
According to Henry Mintzberg's model of strategy development, why do many planned
strategies fail to be implemented? - ANSWERManagers did not anticipate changes in
the environment.
How can top-level managers develop more effective strategic plans? - ANSWERinclude
formal planning and emergent strategies
What is one of the biggest advantages to scenario planning in terms of strategic
management? - ANSWERManagers are forced to think outside the box.
Why is the ivory tower concept of planning less effective than a decentralized
approach? - ANSWERIt ignores the importance of autonomous action.
Why might a manager who uses simple analogies to explain complex issues create
problems in the decision-making process? - ANSWERThe analogy might not be valid.
Why is the use of devil's advocacy helpful in the decision-making process? - ANSWERIt
can counteract cognitive biases.
