Ch01
Student: ___________________________________________________________________________
1. Nortel, like other firms, suffered from a drop in overall industry demand for telecommunications
equipment during 2000 and 2001. According to the text, this would be an example of the "romantic"
perspective of leadership.
True False
2. Strategic management consists of the analysis, decisions, and actions an organization undertakes in order
to create and sustain competitive advantages.
True False
3. Strategic management includes strategy analysis, strategy formulation, and strategy implementation.
True False
4. Management innovations such as total quality, benchmarking, and business process reengineering often
lead to sustainable competitive advantage.
True False
5. Strategic management recognizes the trade-offs between effectiveness and efficiency.
True False
6. The best firms always realize their intended strategy.
True False
7. According to the text, formulating strategy includes taking into consideration strategy at the business,
international, and corporate levels. In addition managers must formulate effective entrepreneurial
initiatives.
True False
8. Business-level strategy focuses on two issues, (1) what businesses to compete in, and (2) how businesses
can be managed to achieve synergy.
True False
9. Corporate-level strategy addresses how firms compete and outperform their rivals as well as achieve and
sustain competitive advantages.
True False
10. Effective leadership can play a large role in fostering corporate entrepreneurship. Corporate
entrepreneurship can have a very positive impact on a firm's bottom line.
True False
11. The three primary participants in corporate governance are: (1) the shareholders; (2) management (led by
the chief executive officer); and, (3) employees.
True False
12. Decisions by Boards of Directors are always consistent with shareholder interests.
True False
13. Former Chrysler vice chairman Robert Lutz stated: "We are here to serve the shareholder and create
shareholder value. I insist that the only person who owns the company is the person who paid good
money for it." This is an example of a symbiotic approach to stakeholder management.
True False
14. Stockholders in a company are the only individuals with an interest in the financial performance in the
company.
True False
,15. Stockholders, employees, and the community-at-large are among a firm's stakeholders.
True False
16. Symbiosis is the ability to recognize interdependencies among the interests of multiple stakeholders
within and outside an organization.
True False
17. One of the benefits of crowdsourcing is that stakeholders are restricted to one narrow role.
True False
18. Social responsibility is the idea that organizations are not only accountable to stockholders but also to the
community-at-large.
True False
19. Shell, NEC, and Proctor & Gamble have been measuring their performance according to what has
been called a "triple bottom line." This technique involves an assessment of financial, social, and
environmental performance.
True False
20. The strategic management process should be addressed only by top-level executives. Mid-level and low-
level employees are best equipped to implement the organization's strategies.
True False
21. Organizational vision statements are the beginning point for the hierarchy of goals throughout the
organization. An organization's vision statement should be massively inspiring, overarching, and long-
term.
True False
22. Although vision statements vary from organization to organization, vision statements are intended to
motivate and inspire employees to work toward a general goal.
True False
23. Strategic objectives are more specific than vision statements.
True False
24. According to the text, a mission statement is an overarching statement that is massively inspiring, long-
term, and only discusses the purpose of the company.
True False
25. A mission statement encompasses both the purpose of the company as well as the basis of competition
and competitive advantage.
True False
26. Some excellent examples of mission statements are: "To be the happiest place on earth" (Disney)
and "restoring patients to full life" (Medtronic).
True False
27. Strategic objectives should be measurable, specific, appropriate, and realistic, but not constrained by time
deadlines.
True False
28. Much research has supported the notion that individuals work much harder when they are asked to "do
their best" rather than when they are striving toward a specific goal.
True False
29. Objectives in organizations should be clear, stated, and known by employees throughout the
organization.
True False
,30. Strategic management should only include short-term objectives. Long-term objectives are covered in the
organization's vision statement.
True False
31. Organizational goals and objectives should be vague in order to allow for changes in strategy.
True False
32. The text addresses two perspectives of leadership as well as their implications. These two perspectives
are
A. romantic and unromantic.
B. romantic and internal control.
C. external control and unromantic.
D. romantic and external control.
33. A CEO made a lot of mistakes such as committing errors in assessing the market and competitive
conditions and improperly redesigning the organization into numerous business units. Such errors led
to significant performance declines. According to the text, this example illustrates the __________
perspective of leadership.
A. external control
B. romantic
C. internal mechanism
D. operational
34. According to the text, the strategic management process entails three ongoing processes:
A. analysis, actions, and synthesis.
B. analysis, decisions, and actions.
C. analysis, evaluation, and critique.
D. analysis, synthesis, and antithesis.
35. Management innovations such as total quality, benchmarking, and business process reengineering cannot
lead to sustainable competitive advantage because
A. companies that have implemented these techniques have lost money.
B. there is no proof that these techniques work.
C. they cost too much money and effort to implement.
D. every company is trying to implement them and hence it does not make a company different from
others.
36. The "organizational versus individual rationality" perspective suggests that
A. what is good for a functional area is always good for the organization.
B. what is good for the organization is always good for a functional area.
C. what is best for a functional area may not be best for the organization.
D.the "incremental" perspective may be best for functional areas while the "rational" perspective may be
best for the organization.
37. The four key attributes of strategic management include the idea that
A. strategy must be directed toward overall organizational goals and objectives.
B. strategy must be focused on long-term objectives.
C. strategy must be focused on one specific area of an organization.
D. strategy must focus on competitor strengths.
38. The four key attributes of strategic management include all of the following except:
A. including multiple stakeholder interests in decision making.
B. incorporating both short-term and long-term perspectives.
C. recognizing the trade-offs between effectiveness and efficiency.
D. emphasis on the attainment of short-term objectives.
, 39. "Effectiveness" is often defined as
A. doing things right.
B. stakeholder satisfaction.
C. doing the right thing.
D. productivity enhancement.
40. All of the following are ambidextrous behaviors except
A. taking initiative and being alert to opportunities beyond the confines of one's own job.
B. being cooperative and seeking opportunities to combine one's efforts with others.
C. intensely focusing on one's own responsibilities and maximizing the output of one's department in an
organization.
D. being brokers, always looking to build internal linkages.
41. 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.
42. According to Henry Mintzberg, decisions flowing from a firm's strategic analysis are its
A. emergent strategy.
B. deliberate strategy.
C. intended strategy.
D. realized strategy.
43. __________ may be considered the "advance work" that must be done in order to effectively formulate
and implement strategies.
A. Goal setting
B. Corporate entrepreneurship
C. Strategy analysis
D. Organizational design
44. __________ involves ensuring proper strategic controls and organizational designs.
A. Corporate governance
B. Corporate-level strategy
C. Strategy implementation
D. Business-level strategy
45. The three participants in corporate governance are
A. the shareholders, board of directors, and employees.
B. the shareholders, labor unions, and employees.
C. the shareholders, board of directors, and management.
D. the shareholders, banks and lending institutions, and management.
46. While working to prioritize and fulfill their responsibilities, members of an organization's board of
directors should
A. represent their own interests.
B. represent the interests of the shareholders.
C. direct all actions of the CEO.
D. emphasize the importance of short-term goals.
47. Members of Boards of Directors are
A. appointed by the Securities and Exchange Commission.
B. elected by the shareholders as their representatives.
C. elected by the public.
D. only allowed to serve one term of four years.
Student: ___________________________________________________________________________
1. Nortel, like other firms, suffered from a drop in overall industry demand for telecommunications
equipment during 2000 and 2001. According to the text, this would be an example of the "romantic"
perspective of leadership.
True False
2. Strategic management consists of the analysis, decisions, and actions an organization undertakes in order
to create and sustain competitive advantages.
True False
3. Strategic management includes strategy analysis, strategy formulation, and strategy implementation.
True False
4. Management innovations such as total quality, benchmarking, and business process reengineering often
lead to sustainable competitive advantage.
True False
5. Strategic management recognizes the trade-offs between effectiveness and efficiency.
True False
6. The best firms always realize their intended strategy.
True False
7. According to the text, formulating strategy includes taking into consideration strategy at the business,
international, and corporate levels. In addition managers must formulate effective entrepreneurial
initiatives.
True False
8. Business-level strategy focuses on two issues, (1) what businesses to compete in, and (2) how businesses
can be managed to achieve synergy.
True False
9. Corporate-level strategy addresses how firms compete and outperform their rivals as well as achieve and
sustain competitive advantages.
True False
10. Effective leadership can play a large role in fostering corporate entrepreneurship. Corporate
entrepreneurship can have a very positive impact on a firm's bottom line.
True False
11. The three primary participants in corporate governance are: (1) the shareholders; (2) management (led by
the chief executive officer); and, (3) employees.
True False
12. Decisions by Boards of Directors are always consistent with shareholder interests.
True False
13. Former Chrysler vice chairman Robert Lutz stated: "We are here to serve the shareholder and create
shareholder value. I insist that the only person who owns the company is the person who paid good
money for it." This is an example of a symbiotic approach to stakeholder management.
True False
14. Stockholders in a company are the only individuals with an interest in the financial performance in the
company.
True False
,15. Stockholders, employees, and the community-at-large are among a firm's stakeholders.
True False
16. Symbiosis is the ability to recognize interdependencies among the interests of multiple stakeholders
within and outside an organization.
True False
17. One of the benefits of crowdsourcing is that stakeholders are restricted to one narrow role.
True False
18. Social responsibility is the idea that organizations are not only accountable to stockholders but also to the
community-at-large.
True False
19. Shell, NEC, and Proctor & Gamble have been measuring their performance according to what has
been called a "triple bottom line." This technique involves an assessment of financial, social, and
environmental performance.
True False
20. The strategic management process should be addressed only by top-level executives. Mid-level and low-
level employees are best equipped to implement the organization's strategies.
True False
21. Organizational vision statements are the beginning point for the hierarchy of goals throughout the
organization. An organization's vision statement should be massively inspiring, overarching, and long-
term.
True False
22. Although vision statements vary from organization to organization, vision statements are intended to
motivate and inspire employees to work toward a general goal.
True False
23. Strategic objectives are more specific than vision statements.
True False
24. According to the text, a mission statement is an overarching statement that is massively inspiring, long-
term, and only discusses the purpose of the company.
True False
25. A mission statement encompasses both the purpose of the company as well as the basis of competition
and competitive advantage.
True False
26. Some excellent examples of mission statements are: "To be the happiest place on earth" (Disney)
and "restoring patients to full life" (Medtronic).
True False
27. Strategic objectives should be measurable, specific, appropriate, and realistic, but not constrained by time
deadlines.
True False
28. Much research has supported the notion that individuals work much harder when they are asked to "do
their best" rather than when they are striving toward a specific goal.
True False
29. Objectives in organizations should be clear, stated, and known by employees throughout the
organization.
True False
,30. Strategic management should only include short-term objectives. Long-term objectives are covered in the
organization's vision statement.
True False
31. Organizational goals and objectives should be vague in order to allow for changes in strategy.
True False
32. The text addresses two perspectives of leadership as well as their implications. These two perspectives
are
A. romantic and unromantic.
B. romantic and internal control.
C. external control and unromantic.
D. romantic and external control.
33. A CEO made a lot of mistakes such as committing errors in assessing the market and competitive
conditions and improperly redesigning the organization into numerous business units. Such errors led
to significant performance declines. According to the text, this example illustrates the __________
perspective of leadership.
A. external control
B. romantic
C. internal mechanism
D. operational
34. According to the text, the strategic management process entails three ongoing processes:
A. analysis, actions, and synthesis.
B. analysis, decisions, and actions.
C. analysis, evaluation, and critique.
D. analysis, synthesis, and antithesis.
35. Management innovations such as total quality, benchmarking, and business process reengineering cannot
lead to sustainable competitive advantage because
A. companies that have implemented these techniques have lost money.
B. there is no proof that these techniques work.
C. they cost too much money and effort to implement.
D. every company is trying to implement them and hence it does not make a company different from
others.
36. The "organizational versus individual rationality" perspective suggests that
A. what is good for a functional area is always good for the organization.
B. what is good for the organization is always good for a functional area.
C. what is best for a functional area may not be best for the organization.
D.the "incremental" perspective may be best for functional areas while the "rational" perspective may be
best for the organization.
37. The four key attributes of strategic management include the idea that
A. strategy must be directed toward overall organizational goals and objectives.
B. strategy must be focused on long-term objectives.
C. strategy must be focused on one specific area of an organization.
D. strategy must focus on competitor strengths.
38. The four key attributes of strategic management include all of the following except:
A. including multiple stakeholder interests in decision making.
B. incorporating both short-term and long-term perspectives.
C. recognizing the trade-offs between effectiveness and efficiency.
D. emphasis on the attainment of short-term objectives.
, 39. "Effectiveness" is often defined as
A. doing things right.
B. stakeholder satisfaction.
C. doing the right thing.
D. productivity enhancement.
40. All of the following are ambidextrous behaviors except
A. taking initiative and being alert to opportunities beyond the confines of one's own job.
B. being cooperative and seeking opportunities to combine one's efforts with others.
C. intensely focusing on one's own responsibilities and maximizing the output of one's department in an
organization.
D. being brokers, always looking to build internal linkages.
41. 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.
42. According to Henry Mintzberg, decisions flowing from a firm's strategic analysis are its
A. emergent strategy.
B. deliberate strategy.
C. intended strategy.
D. realized strategy.
43. __________ may be considered the "advance work" that must be done in order to effectively formulate
and implement strategies.
A. Goal setting
B. Corporate entrepreneurship
C. Strategy analysis
D. Organizational design
44. __________ involves ensuring proper strategic controls and organizational designs.
A. Corporate governance
B. Corporate-level strategy
C. Strategy implementation
D. Business-level strategy
45. The three participants in corporate governance are
A. the shareholders, board of directors, and employees.
B. the shareholders, labor unions, and employees.
C. the shareholders, board of directors, and management.
D. the shareholders, banks and lending institutions, and management.
46. While working to prioritize and fulfill their responsibilities, members of an organization's board of
directors should
A. represent their own interests.
B. represent the interests of the shareholders.
C. direct all actions of the CEO.
D. emphasize the importance of short-term goals.
47. Members of Boards of Directors are
A. appointed by the Securities and Exchange Commission.
B. elected by the shareholders as their representatives.
C. elected by the public.
D. only allowed to serve one term of four years.
