SEVI 3013 EXAM 3 REVIEW QUESTIONS
As a firm seeks to add vital resources and capabilities, what strategic framework is
used? - Answer -Build, Borrow, Buy
In the United States, a firm's key stakeholder(s) is(are) the: - Answer -shareholders
Which of the following is NOT one of the steps outlined in the Playing to Win model?
A. Where to Play
B. How to Win
C. Resources Needed
D. Financial Modeling - Answer -Financial Modeling
Executive compensation is a governance mechanism that seeks to align managers' and
owners' interests through all of the following EXCEPT:
A. bonuses.
B. long-term incentives such as stock options.
C. salary.
D. penalties for inadequate firm performance. - Answer -penalties for inadequate firm
performance.
Organizational structure specifies the firm's: - Answer -formal reporting relationships,
procedures, controls, and authority and decision-making processes.
Being able to understand, evaluate and think strategically is a critical skill because it will
benefit you in which role?
A. As a Manager in the company
B. As an Investor in a company
C. Both A & B are True
D. Neither A or B is accurate - Answer -Both A & B are True
Which statement best describes the key questions that Strategic Leaders use to impact
their business:
A. What differentiation is required to achieve a low cost delivery and maximize our
Shareholder value?
B. What is my competitor doing that we must be prepared to copy and duplicate at all
costs?
C. What other businesses can I buy with the excess cash flow provided by the
business?
D. What Choices can we make with our resources that will provide a competitive
advantage that provides above average returns over a long period of time? - Answer -
What Choices can we make with our resources that will provide a competitive
advantage that provides above average returns over a long period of time?
, Simon Leagreet, the chairperson and CEO of L-EVA Industries, Inc., has long been the
major power at L-EVA. A majority of the directors are concerned that, while Mr.
Leagreet has been responsible for the firm's earning above-average returns, he has
been displaying a tendency toward personal extravagance at the firm's expense. In
order to limit Mr. Leagreet's power, the board of directors plans to:
A. elect an insider as the lead director.
B. appoint another individual as chairperson of the board of directors.
C. require Mr. Leagreet to personally certify the firm's financial reports.
D. reduce the size of the stock option package provided to Mr. Leagreet. - Answer -
appoint another individual as chairperson of the board of directors.
In the Playing to Win example, P&G worked through a strategic problem with their Oil of
Olay product by re-aligning the product line to a new market of consumers. This first
Step was an example of what key step in their process? - Answer -Define Where to
Play
A firm's __________ specifies the work to be done and how to do it given the firm's
strategy or strategies. - Answer -structure
The board of directors of CamCell, Inc., wishes to design a CEO compensation plan
that will align the personal interests of the CEO with the interests of the shareholders in
long-term firm performance. The board wishes the CEO to take more short-term risks in
order to achieve potentially higher long-term returns. Consequently, the board has
decided on an incentive plan that involves payout based on the firm's performance five
years in the future. CamCell is presently searching for a new CEO. Which of the
following statements is true?
A. This plan will be very attractive in luring candidates for the CEO position.
B. CamCell may have to over-compensate its CEO in order to offset the personal risk a
CEO would undertake under this plan.
C. Institutional investors disapprove of long-term executive incentive plans and they
may sell their blocks of stock in CamCell. - Answer -CamCell may have to over-
compensate its CEO in order to offset the personal risk a CEO would undertake under
this plan.
The three key participants in corporate governance are: - Answer -Shareholders /
Board of Directors / Exec Team (CEO)
The first step in Lafler/Martin's strategic approach outlined in Playing to Win is to define
the following:
A. A Winning Strategic Model.
B. A Winning Strategic Leadership Approach
C. A Winning Market Approach
D. A Winning Aspiration - Answer -A Winning Aspiration
As a firm seeks to add vital resources and capabilities, what strategic framework is
used? - Answer -Build, Borrow, Buy
In the United States, a firm's key stakeholder(s) is(are) the: - Answer -shareholders
Which of the following is NOT one of the steps outlined in the Playing to Win model?
A. Where to Play
B. How to Win
C. Resources Needed
D. Financial Modeling - Answer -Financial Modeling
Executive compensation is a governance mechanism that seeks to align managers' and
owners' interests through all of the following EXCEPT:
A. bonuses.
B. long-term incentives such as stock options.
C. salary.
D. penalties for inadequate firm performance. - Answer -penalties for inadequate firm
performance.
Organizational structure specifies the firm's: - Answer -formal reporting relationships,
procedures, controls, and authority and decision-making processes.
Being able to understand, evaluate and think strategically is a critical skill because it will
benefit you in which role?
A. As a Manager in the company
B. As an Investor in a company
C. Both A & B are True
D. Neither A or B is accurate - Answer -Both A & B are True
Which statement best describes the key questions that Strategic Leaders use to impact
their business:
A. What differentiation is required to achieve a low cost delivery and maximize our
Shareholder value?
B. What is my competitor doing that we must be prepared to copy and duplicate at all
costs?
C. What other businesses can I buy with the excess cash flow provided by the
business?
D. What Choices can we make with our resources that will provide a competitive
advantage that provides above average returns over a long period of time? - Answer -
What Choices can we make with our resources that will provide a competitive
advantage that provides above average returns over a long period of time?
, Simon Leagreet, the chairperson and CEO of L-EVA Industries, Inc., has long been the
major power at L-EVA. A majority of the directors are concerned that, while Mr.
Leagreet has been responsible for the firm's earning above-average returns, he has
been displaying a tendency toward personal extravagance at the firm's expense. In
order to limit Mr. Leagreet's power, the board of directors plans to:
A. elect an insider as the lead director.
B. appoint another individual as chairperson of the board of directors.
C. require Mr. Leagreet to personally certify the firm's financial reports.
D. reduce the size of the stock option package provided to Mr. Leagreet. - Answer -
appoint another individual as chairperson of the board of directors.
In the Playing to Win example, P&G worked through a strategic problem with their Oil of
Olay product by re-aligning the product line to a new market of consumers. This first
Step was an example of what key step in their process? - Answer -Define Where to
Play
A firm's __________ specifies the work to be done and how to do it given the firm's
strategy or strategies. - Answer -structure
The board of directors of CamCell, Inc., wishes to design a CEO compensation plan
that will align the personal interests of the CEO with the interests of the shareholders in
long-term firm performance. The board wishes the CEO to take more short-term risks in
order to achieve potentially higher long-term returns. Consequently, the board has
decided on an incentive plan that involves payout based on the firm's performance five
years in the future. CamCell is presently searching for a new CEO. Which of the
following statements is true?
A. This plan will be very attractive in luring candidates for the CEO position.
B. CamCell may have to over-compensate its CEO in order to offset the personal risk a
CEO would undertake under this plan.
C. Institutional investors disapprove of long-term executive incentive plans and they
may sell their blocks of stock in CamCell. - Answer -CamCell may have to over-
compensate its CEO in order to offset the personal risk a CEO would undertake under
this plan.
The three key participants in corporate governance are: - Answer -Shareholders /
Board of Directors / Exec Team (CEO)
The first step in Lafler/Martin's strategic approach outlined in Playing to Win is to define
the following:
A. A Winning Strategic Model.
B. A Winning Strategic Leadership Approach
C. A Winning Market Approach
D. A Winning Aspiration - Answer -A Winning Aspiration
