Question 1

Decisions by boards of directors are always consistent with shareholder interests.

Accepted Answer

A) True 
 B)False  False

Question 2

Discuss what is meant by recognizing trade-off between efficiency and effectiveness and provide an example of how this attribute of strategic management could influence the strategic decisions of a firm.

Accepted Answer

Efficiency involves the wise use of reso...

Question 3

The four key attributes of strategic management include all of the following except

Accepted Answer

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.E) A) and D)
F) A) and C)

Question 4

In contrast to an organization's vision, its mission should

Accepted Answer

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 work force.
D)   be less detailed.E) A) and B)
F) C) and D)

Question 5

Sears has developed a sophisticated quantitative model and found that there were positive relationships between employee satisfaction, customer satisfaction, and financial results. According to the text, this is an example of

Accepted Answer

A)   zero-sum relationship among stakeholders.
B)   stakeholder symbiosis.
C)   rewarding stakeholders.
D)   emphasizing financial returns.E) C) and D)
F) B) and C) B

Question 6

Examples of _____ include "To be the happiest place on earth" (Disney) , and "Restoring patients to full life" (Medtronics) .

Accepted Answer

A)   vision statements
B)   mission statements
C)   strategic objectives
D)   operational objectivesE) B) and C)
F) A) and B)

Question 7

Peter Senge, of MIT recognized three types of leaders. _____ are individuals that, although having little positional power and formal authority, generate their power through the conviction and clarity of their ideas.

Accepted Answer

A)   Local line leaders
B)   Executive leaders
C)   Internal networkers
D)   Shop floor leadersE) B) and C)
F) A) and B)

Question 8

Shareholders in a company are the only individuals with an interest in the financial performance in the company.

Accepted Answer

A) True 
 B)False

Question 9

Symbiosis is the ability to recognize interdependencies among the interests of multiple stakeholders within and outside an organization.

Accepted Answer

A) True 
 B)False

Question 10

A firm has a variety of different stakeholders. Identify several possible stakeholders a firm may have and discuss how the firm may achieve stakeholder symbiosis.

Accepted Answer

Stakeholders include suppliers...

Question 11

Effective vision statements include

Accepted Answer

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.E) A) and B)
F) A) and C)

Question 12

Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.

Accepted Answer

A) True 
 B)False  True

Question 13

While working to prioritize and fulfill their responsibilities, members of an organization's board of directors should

Accepted Answer

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.E) B) and D)
F) A) and D)

Question 14

The four key attributes of strategic management include the idea that a

Accepted Answer

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.E) C) and D)
F) B) and D)

Question 15

Globalization is the flow of capital, people, and information throughout the world.

Accepted Answer

A) True 
 B)False

Question 16

Strategic objectives should be measurable, specific, appropriate, and realistic, but not constrained by time deadlines.

Accepted Answer

A) True 
 B)False

Question 17

Vision statements are used to create a better understanding of the organization's overall purpose and direction. Vision statements

Accepted Answer

A)   are very specific.
B)   provide specific objectives.
C)   set organizational structure.
D)   evoke powerful and compelling mental images.E) A) and B)
F) A) and C)

Question 18

Objectives in organizations should be clear, stated, and known by employees throughout the organization.

Accepted Answer

A) True 
 B)False

Question 19

Strategic management should only include short-term objectives. Long-term objectives are covered in the organization's vision statement.

Accepted Answer

A) True 
 B)False

Question 20

Organizational goals and objectives should be vague in order to allow for changes in strategy.

Accepted Answer

A) True 
 B)False

Exam 1: Strategic Management: Creating Competitive Advantages

Decisions by boards of directors are always consistent with shareholder interests.

Correct AnswerverifiedFalse

Discuss what is meant by recognizing trade-off between efficiency and effectiveness and provide an example of how this attribute of strategic management could influence the strategic decisions of a firm.

Correct AnswerverifiedEfficiency involves the wise use of reso...View AnswerShow Answer

The four key attributes of strategic management include all of the following except

Correct AnswerverifiedShow Answer

In contrast to an organization's vision, its mission should

Correct AnswerverifiedShow Answer

Sears has developed a sophisticated quantitative model and found that there were positive relationships between employee satisfaction, customer satisfaction, and financial results. According to the text, this is an example of

Correct AnswerverifiedB

Examples of _____ include "To be the happiest place on earth" (Disney) , and "Restoring patients to full life" (Medtronics) .

Correct AnswerverifiedShow Answer

Peter Senge, of MIT recognized three types of leaders. _____ are individuals that, although having little positional power and formal authority, generate their power through the conviction and clarity of their ideas.

Correct AnswerverifiedShow Answer

Shareholders in a company are the only individuals with an interest in the financial performance in the company.

Correct AnswerverifiedShow Answer

Symbiosis is the ability to recognize interdependencies among the interests of multiple stakeholders within and outside an organization.

Correct AnswerverifiedShow Answer

A firm has a variety of different stakeholders. Identify several possible stakeholders a firm may have and discuss how the firm may achieve stakeholder symbiosis.

Correct AnswerverifiedStakeholders include suppliers...View AnswerShow Answer

Effective vision statements include

Correct AnswerverifiedShow Answer

Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.

Correct AnswerverifiedTrue

While working to prioritize and fulfill their responsibilities, members of an organization's board of directors should

Correct AnswerverifiedShow Answer

The four key attributes of strategic management include the idea that a

Correct AnswerverifiedShow Answer

Globalization is the flow of capital, people, and information throughout the world.

Correct AnswerverifiedShow Answer

Strategic objectives should be measurable, specific, appropriate, and realistic, but not constrained by time deadlines.

Correct AnswerverifiedShow Answer

Vision statements are used to create a better understanding of the organization's overall purpose and direction. Vision statements

Correct AnswerverifiedShow Answer

Objectives in organizations should be clear, stated, and known by employees throughout the organization.

Correct AnswerverifiedShow Answer

Strategic management should only include short-term objectives. Long-term objectives are covered in the organization's vision statement.

Correct AnswerverifiedShow Answer

Organizational goals and objectives should be vague in order to allow for changes in strategy.

Correct AnswerverifiedShow Answer

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False

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Efficiency involves the wise use of reso...
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B

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Stakeholders include suppliers...
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True

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