SEVI Ch 1

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.
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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.
D
A CEO made a lot of mistakes in assessing the market and the 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
B
According to the external control view of leadership, which of the following factors would not be considered an external factor that might positively or negatively affect a firm's success?

A. economic downturns
B. governmental legislation
C. outbreak of war
D. company employee morale
D
Melvin Alexander, executive director of Principled Solutions Enterprise, a management consulting firm specializing in health care, suggests that environmental changes oblige firms to make strategic changes in order to survive. Which of the following is one of the strategic changes he foresees will occur in the next three to five years?

A. changes in the behavior of the health care consumers
B.reduction in the number of available medical doctors
C. increases in the number of locations of health care facilities
D. decreases in information technology investment
A
According to the text, the strategic management process entails three ongoing processes. They are

A. analyses, actions, and synthesis.
B. analyses, decisions, and actions.
C. analyses, evaluation, and critique.
D. analyses, synthesis, and decisions.
B
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.
D
The organizational versus the individual rationality perspective suggests that objectives that are
A. good for a functional area are always good for the overall organization.
B. good for the overall organization are always best for a functional area.
C. best for a functional area may not be best for the overall organization.
D. best for one functional area will never be best for all functional areas.
C
The four key attributes of strategic management include the idea that strategy must

A. be directed toward overall organizational goals and objectives.
B. be focused only on long-term objectives.
C. be focused on only one specific area of an organization.
D. focus only on competitor strengths.
A
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.
D
Effectiveness is often defined as

A. doing thing sright.
B. stakeholder satisfaction.
C. doing the right thing.
D. productivity enhancement.
C
In choosing to focus on stakeholders, which of the following will not lead to success for a manager? A. shareholders and employees B. employees and suppliers C. customers and the community at large D. customers onlyDIn strategic management, both the short-term and long-term perspectives need to be considered because A. shareholder value is only measured by short-term returns. B. shareholders only care about long-term returns. C. long-term vision precludes the analysis of present operating needs. D. the creative tension between the two forces managers to develop more successful strategy.DStrategic management involves the recognition of trade-offs between effectiveness and A. cost. B. value. C. returnoninvestment. D. efficiency.DAll of the following are ambidextrous behaviors except A. taking initiative and being alert to opportunities beyond the job description. B. being cooperative and seeking opportunities to combine personal efforts with that of others. C. intensely focusing on the responsibilities of one individual and maximizing the output of the department in the organization in which that individual works. D. being brokers, always looking to build internal linkages.CAmbidextrous behaviors in individuals illustrate how a dual capacity for _______ can be woven into the fabric of an organization at the individual level. A. alignment and adaptability B. alignment and transparency C. alignment and internal linkages D. alignment and efficiencyA__________ 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 designCStrategy analysis is the starting point of the strategic management process and consists of the A. analysis only of the vision, mission, and objectives of the firm. B. analysis of the relevant internal and external environmental factors only. C. analysis of relevant competitors only. D. matching of vision, mission, and objectives with the relevant internal and external environmental factors.DStrategy formulation at the business level addresses best how to compete in a given business: A. to attain competitive advantage B. to reduce costs C. to decrease buyer power D. to thwart entry of new rivalsACorporate level strategy focuses on what businesses to compete in and A. how business can be managed to achieve synergy. B. how business can be managed to reduce synergy. C. how the firm can work as a stand-alone entity. D. how the firm can create more value by operating alone.ACorporate-level strategy looks at how to manage the ______ of its businesses to create synergies. A. portfolio B. stockprices C. competitors D. marketpricingAEntering foreign markets requires firms to ascertain foremost how they will attain A. market share. B. low costs. C. competitive advantage. D. low returns on investment.CNew value creation is a major engine for economic growth and is the main focus of _______________ strategy. A. portfolio B. corporate-level C. business-level D. entrepreneurialDTwo types of strategic control that firms must exercise for good strategy implementation are A. informational and confrontational. B. confrontational and behavioral. C. behavioral and financial. D. informational and behavioral.DEffective organizational design means that firms must have ________ that are consistent with their strategy. A. designs and plans B. organizational structures and designs C. adopters and designs D. adopters and plansBLearning organizations permit the entire organization to benefit from ____________ talents. A. internal and external B. individual and collective C. internal and collective D. external and individualBEffective leaders set a direction and develop an organization so that it is committed to excellence and ___________ behavior. A. performant B. strategic C. ethical D. positiveCStrategies should be formulated that enhance foremost the ____________ capacity of a firm. A. innovative B. learning C. implementation D. business-levelAThe three participants in corporate governance are the shareholders, A. board of directors, and employees. B. labor unions, and employees. C. board of directors, and management. D. banks and lending institutions, and management.CWhile working to prioritize and fulfill their responsibilities, members of the board of directors of an organization 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.BMembers 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.BAn organization is responsible to many different entities. In order to meet the demands of these groups, organizations must participate in stakeholder management. Stakeholder management means that A. interests of the stockholders are not the only interests that matter. B. stakeholders are second in importance to the stockholders. C. stakeholders and managers inevitably work at cross-purposes. D. all stake holders receive financial rewards.AStakeholders are A. a new way to describe stockholders. B. individuals, groups, and organizations who have a stake in the success of the organization. C. creditors who hold a lien on the assets of the organization. D. attorneys and their clients who sue the organization.BEmployee stakeholders are concerned with A. taxes, warranties, and regulations. B. wages, benefits, and job security. C. good citizenship behavior. D. dividends.BStockholders as a stakeholder group are interested primarily by A. payment of interest and repayment of principal. B. value and warranties. C. dividends and capital appreciation. D. taxes and compliance with regulations.CThe Sustainable Apparel Coalition accounts for more than one-third of the global A. apparel and washing product industry. B. consumer product industry. C. refinery industry. D. apparel and footwear industry.DWall Street executives have received excessive bonus pay in the past. This concerns which of the following stakeholder groups most directly? A. government B. suppliers C. creditors D. stockholdersDSupplier stakeholders are concerned with A. assurance of a continued relationship with the firm. B. employee benefits. C. safe working conditions. D. capital appreciation.ACommunity stakeholders are concerned primarily with A. product warranties. B. corporate citizenship behavior. C. capital appreciation. D. repayment of principal.BAccording to the text, the triple bottom line approach to corporate accounting includes which three components? A. financial, environmental, and customer B. financial, organizational, and customer C. financial, environmental, and social D. financial, organizational, and psychologicalCA key stakeholder group that is particularly susceptible to corporate social responsibility (CSR) initiatives is A. suppliers. B. rivals. C. government agencies. D. consumers.DAccording to the Corporate Citizenship poll conducted by Cone Communications, most Americans say they would be likely to switch brands to one associated with a good cause if there are similarities between A. price and availability. B. availability and quality. C. price and quality. D. price and durability.CAccording to a CEO survey by Accenture, __________________ are not mutually exclusive corporate goals. A. quality and profitability B. sustainability and profitability C. ROIandquality D. availabilityandROIBThe Clorox Green Works line of plant-based cleaning materials captured 42 percent of the natural cleaning products market in its first year. This is an example of the benefit of A. sustainability efforts. B. cost reduction efforts. C. marketingprograms. D. process management.ANorthrup Grumman saved $2 million in energy costs at a single facility by installing reflective roofs and fluorescent lighting, replacing old equipment, and making minor temperature and humidity-level adjustments. This is an example of the benefit of A. increasing revenue efforts. B. marketing programs. C. sustainability efforts. D. process management.CThe Fairmont Royal York in Toronto invested $25,000 in an energy conservation program to replace leaky steam traps and fix leaks, which resulted in an annual savings of over $200,000. This is an example of a sustainability effort to A. increase innovation. B. decrease revenue. C. lower costs. D. increase customers.CSustainability programs often find their success beyond company boundaries, thus ______ systems and _____ metrics cannot capture all of the relevant numbers. A. external; bio B. internal; process C. external;external D. internal; internalBThe case for sustainability projects needs to be made on the basis of a more holistic and comprehensive understanding of all the _____________ benefits. A. measurable and unmeasurable B. financial and physical C. tangible and intangible D. measurable and physicalCSome benefits of sustainability projects include A. reducing risks. B. lagging behind regulations. C. displeasing communities. D. ignoring employee morale.AMany organizations have a large number of functional areas with very diverse and sometimes competing interests. Such organizations will be most effective if A. each functional area focuses on achieving their own goals. B. goals are defined at the bottom and implemented at the top. C. functional areas work together to attain overall goals. D. management and employees have separate goals.CStrategy formulation and implementation is a challenging ongoing process. To be effective, it should not involve A. the CEO and the board of directors. B. the board of directors, CEO, and CFO. C. rivals. D. line and staff managers.CThe text argues that a strategic perspective in an organization should be emphasized A. at the top of the organization. B. at the middle of the organization. C. throughout the organization. D. from the bottom up.CPeter Senge, of MIT, recognized three types of leaders. These individuals champion and guide ideas, create a learning infrastructure, and establish a domain for taking action. A. local line leaders B. executive leaders C. internal networkers D. shop floor leadersBLeadership is a necessary (but not sufficient) condition for organizational success. Leaders should emerge at which level(s) of an organization? A. only at the top B. in the middle C. throughout the organization D. only during times of changeCLocal line leaders have __________ responsibility. A. local B. executive C. profit-and-loss D. noCInternal networkers generate their power through the _____________ of their ideas. A. validity and correctness B. conviction and clarity C. validation and recognition D. approval and awarenessBExecutive leaders champion and guide ideas by A. reinforcing ideas that did not work. B. creating a learning infrastructure. C. validating their formal authority. D. increasing their personal power.BRichard Branson, founder of the Virgin Group, empowers his companies through a(n) _______ structure in which anyone can bring forth new ideas. A. formal B. hierarchal C. multi-level D. informalDTransformational change involves A. extensive communication. B. little training. C. no employee development. D. few incentives.AWhirlpool's transformation under corporate vice president Nancy Snyder included financial investments in A. share holder dividends. B. capital spending. C. community development. D. paying down borrowed debt.BMethods by which successful executives show their interest in learning what others are thinking include A. holding townhall meetings and consulting employees on what they would do if in charge. B. holding townhall meetings and consulting bankers on what they would do if in charge. C. holding retreats and consulting rivals on what they would do if in charge. D. consulting rivals and consulting investment bankers.ATim Brown, CEO of IDEO, believes that the ________ of a person should not dictate the level of influence their ideas should be accorded. A. age B. seniority C. position D. educationCThe hierarchy of organizational goals is in this order (least specific to most specific): A. vision statements, strategic objectives, mission statements B. mission statements, strategic objectives, vision statements C. vision statements, mission statements, strategic objectives D. mission statements, vision statements, strategic objectivesCVision statements are used to create a better understanding of the overall purpose and direction of the organization. Vision statements A. are very specific. B. provide specific objectives. C. set organizational structure. D. evoke powerful and compelling mental images.DEffective vision statements include A. all strategic directions of the organization. B. a brief statement of the company's direction. C. strategic posturing and future objectives. D. financial objectives and projected figures.BWellPoint Health Network states: WellPoint will redefine our industry: through a new generation of consumer-friendly products that put individuals back in control of their future. This is an example of a A. strategic objective. B. vision statement. C. vague statement of direction. D. line manager's individual goal.BAlthough such visions cannot be accurately measured by a specific indicator of how well they are being achieved, they do provide a fundamental statement of the __________ of an organization. A. values, aspirations, and goals B. expected returns and limitations C. outstanding debt D. credibilityAIn contrast to the vision of an organization, its mission should A. be shorter in length. B. encompass both the purpose of the company as well as the basis of competition. C. encompass all the major rules and regulations of the corporate workforce. D. be less detailed.BThe vision and mission statements of a company set the overall direction of the organization. Strategic objectives serve what role? A. operationalize the mission statement B. modify the mission statement C. are a shorter version of the mission statement D. are only clarified by the board of directorsASuccessful organizations are effective in motivating people. Employees work best when A. they are asked to do their best. B. work requirements are vague and unclear. C. they are striving toward specific goals. D. they are guided by an abstract mission statement.CFortune Brands states they will cut corporate overhead costs by $30 million a year. This is an example of a A. non financial strategic objective. B. financial strategic objective. C. vision statement. D. mission statement.BWe want to be the top-ranked supplier to our customers. (PPG) This is an example of a A. nonfinancial strategic objective. B. financial strategic objective. C. vision statement. D. mission statement.AIn large organizations, conflicts can arise between functional areas. In order to resolve these conflicts, strategic objectives A. put financial objectives above human considerations. B. align departments toward departmental goals. C. help resolve conflicts through their common purpose. D. cause debate and increase conflict.CWhich of the following is not an example of a financial strategic objective? A. Increase sales growth 6% to 8%and accelerate core net earnings growth from 13% to 15% per share in each of the next 5 years. (Procter & Gamble) B. Reduce volatile air emissions 15 percent by 2015 from 2010 base year, indexed to net sales. (3M) C. Generate Internet-related revenue of $1.5billion.(AutoNation) D. Cut corporate overhead costs by $30 million per year. (Fortune Brands)BIn large organizations, the potential exists for different parts of an organization to pursue its own goals rather than the overall company goals. Proper _______ can help to resolve conflicts when they arise. A. mission statements B. vision statements C. organization structure D. objectivesD