Strategic Leadership Exam 1
Leadership - correct answer the process of influencing others to understand and agree about
what needs to be done and how to do it, and the process of facilitating individual and collective
efforts to accomplish shared objectives
Key Strategic Leadership Capabilities (7) - correct answer 1. Develop, communicate, and
establish vision
2. Global mindset
3. culture of innovation
4. resource management, human and social capital
5. execution
6. ethical decision making
7. adaptability
Role of strategic leaders - correct answer to develop and lead firms to fulfill their mission, vision,
and strategy
Upper Echelons Theory - correct answer A conceptual framework that views organizational
outcomes—strategic choices and performance levels—as reflections of the values of the
members of the top management team.
weak situation - correct answer A situation where any behavior is considered appropriate;
unstructured; ambiguous and complex
strategic leaders make decisions in these situations most often
bounded rationality - correct answer A set of boundaries or constraints that tend to complicate
the rational decision-making process
,Strategic Leadership Exam 1
aka our experiences, values, backgrounds that can help or limit us
decision making is limited by (3) - correct answer the limited information available
the cognitive limitations
the time available to make the decision
Do leaders matter to organizational outcomes? - correct answer No, Environmental and
organizational constraints limit influence at the top; Executives are a very homogenous group
yes, depends on managerial discretion
Managerial Discretion - correct answer The latitude of action available to managers
Helps determine how much choice leaders have in choosing a strategy
exists when there's little constraint and lots of ambiguity in solutions
Managerial Discretion consists of (3) - correct answer Task environment, organizational
characteristics, managerial characteristics
Task Environment (regarding managerial discretion) - correct answer Product Differentiability +
Market Growth + Industry Structure - Demand Instability + Quasi-legal Constraints - Powerful
Outside Forces -
, Strategic Leadership Exam 1
Organizational Characteristics (regarding managerial discretion) - correct answer Internal Forces
(size, age, culture, capital intensity) -
Resource Availability +
Powerful Inside Forces -
Strategy - correct answer Central integrated, externally oriented concept of how firm will
achieve objectives; involves a UVP, trade offs, aligning activities
Mission - correct answer Fundamental Purpose, Values
Objectives - correct answer Specific Targets
strategic analysis - correct answer • Industry Analysis • Customer/ Market Trends •
Environmental Forecast • Competitor Analysis • Internal Assessment
organizational support - correct answer Structure • Process • Functional Policies • Rewards •
Peoples • Symbols • Activities
Key elements of strategy (5) - correct answer arena, vehicles, differentiation, staging
(speed/sequence of moves), economic logic (how will the firm obtain returns)
Interpersonal roles of strategic leaders (3) - correct answer figurehead, leader (admin,
motivational), liaison
informational roles of strategic leaders (3) - correct answer monitor, disseminator, spokesperson
decisional roles of strategic leaders (4) - correct answer Entrepreneur (seeks growth opps),
disturbance handler, resource allocator, negotiator
Leadership - correct answer the process of influencing others to understand and agree about
what needs to be done and how to do it, and the process of facilitating individual and collective
efforts to accomplish shared objectives
Key Strategic Leadership Capabilities (7) - correct answer 1. Develop, communicate, and
establish vision
2. Global mindset
3. culture of innovation
4. resource management, human and social capital
5. execution
6. ethical decision making
7. adaptability
Role of strategic leaders - correct answer to develop and lead firms to fulfill their mission, vision,
and strategy
Upper Echelons Theory - correct answer A conceptual framework that views organizational
outcomes—strategic choices and performance levels—as reflections of the values of the
members of the top management team.
weak situation - correct answer A situation where any behavior is considered appropriate;
unstructured; ambiguous and complex
strategic leaders make decisions in these situations most often
bounded rationality - correct answer A set of boundaries or constraints that tend to complicate
the rational decision-making process
,Strategic Leadership Exam 1
aka our experiences, values, backgrounds that can help or limit us
decision making is limited by (3) - correct answer the limited information available
the cognitive limitations
the time available to make the decision
Do leaders matter to organizational outcomes? - correct answer No, Environmental and
organizational constraints limit influence at the top; Executives are a very homogenous group
yes, depends on managerial discretion
Managerial Discretion - correct answer The latitude of action available to managers
Helps determine how much choice leaders have in choosing a strategy
exists when there's little constraint and lots of ambiguity in solutions
Managerial Discretion consists of (3) - correct answer Task environment, organizational
characteristics, managerial characteristics
Task Environment (regarding managerial discretion) - correct answer Product Differentiability +
Market Growth + Industry Structure - Demand Instability + Quasi-legal Constraints - Powerful
Outside Forces -
, Strategic Leadership Exam 1
Organizational Characteristics (regarding managerial discretion) - correct answer Internal Forces
(size, age, culture, capital intensity) -
Resource Availability +
Powerful Inside Forces -
Strategy - correct answer Central integrated, externally oriented concept of how firm will
achieve objectives; involves a UVP, trade offs, aligning activities
Mission - correct answer Fundamental Purpose, Values
Objectives - correct answer Specific Targets
strategic analysis - correct answer • Industry Analysis • Customer/ Market Trends •
Environmental Forecast • Competitor Analysis • Internal Assessment
organizational support - correct answer Structure • Process • Functional Policies • Rewards •
Peoples • Symbols • Activities
Key elements of strategy (5) - correct answer arena, vehicles, differentiation, staging
(speed/sequence of moves), economic logic (how will the firm obtain returns)
Interpersonal roles of strategic leaders (3) - correct answer figurehead, leader (admin,
motivational), liaison
informational roles of strategic leaders (3) - correct answer monitor, disseminator, spokesperson
decisional roles of strategic leaders (4) - correct answer Entrepreneur (seeks growth opps),
disturbance handler, resource allocator, negotiator
