Question 1

Financial controls provide feedback about outcomes achieved from past actions and predictions about future performance.

Accepted Answer

A) True 
 B)False

Question 2

Rangle Holdings is using a balanced scorecard to evaluate its implementation of its strategies.How should Rangle use both strategic and financial controls in this assessment?

Accepted Answer

A)  Rangle should use strategic controls when assessing its performance relative to the learning and growth perspective and financial controls when assessing performance in terms of the financial perspective. 
B)  Rangle should use strategic controls when assessing its performance relative to the internal business processes perspective and financial controls when assessing performance in terms of the financial perspective. 
C)  Rangle should use strategic controls when assessing its performance relative to the learning and growth perspective and financial controls when assessing performance in terms of the internal perspective. 
D)  Rangle should use strategic controls when assessing its performance relative to the customer perspective and financial controls when assessing performance in terms of the internal business processes perspective. 
A)  Rangle should use strategic controls when assessing its performance relative to the learning and growth perspective and financial controls when assessing performance in terms of the financial perspective. 
B)  Rangle should use strategic controls when assessing its performance relative to the internal business processes perspective and financial controls when assessing performance in terms of the financial perspective. 
C)  Rangle should use strategic controls when assessing its performance relative to the learning and growth perspective and financial controls when assessing performance in terms of the internal perspective. 
D)  Rangle should use strategic controls when assessing its performance relative to the customer perspective and financial controls when assessing performance in terms of the internal business processes perspective.

Question 3

Organizational culture is a complex set of ideologies, symbols, and core values that are shared throughout the firm, but its development is so subtle and poorly understood that top managers cannot influence its content.

Accepted Answer

A) True 
 B)False

Question 4

Four perspectives are integrated to form the balanced scorecard framework.The financial perspective focuses on the view of the firm by the:

Accepted Answer

A)  customer. 
B)  employee. 
C)  shareholder. 
D)  general society. 
A)  customer. 
B)  employee. 
C)  shareholder. 
D)  general society.

Question 5

The underlying premise of the balanced scorecard is that firms jeopardize their future performance when strategic controls are emphasized at the expense of financial controls.

Accepted Answer

A) True 
 B)False

Question 6

Some companies have a preference for insiders to fill top-level management positions because of the desire for continuity and a continuing commitment to the firm's existing vision, mission, and chosen strategies.

Accepted Answer

A) True 
 B)False

Question 7

The primary responsibility for effective strategic leadership of the organization rests with the:

Accepted Answer

A)  board of directors. 
B)  top management team. 
C)  CEO. 
D)  stakeholders. 
A)  board of directors. 
B)  top management team. 
C)  CEO. 
D)  stakeholders.

Question 8

When a new CEO is selected from outside the firm, a change of strategy is likely, especially if the top management team is homogenous and highly cohesive.

Accepted Answer

A) True 
 B)False

Question 9

Which key strategic leadership action plays a key role in influencing how the firm conducts its business and regulates and controls employees' behavior?

Accepted Answer

A)  Effectively managing the firm's resource portfolio 
B)  Determining strategic direction 
C)  Regulating and controlling employees 
D)  Sustaining an effective organizational culture 
A)  Effectively managing the firm's resource portfolio 
B)  Determining strategic direction 
C)  Regulating and controlling employees 
D)  Sustaining an effective organizational culture

Question 10

What is organizational culture? What must strategic leaders do to develop and sustain an effective organizational culture?

Accepted Answer

Organizational culture is the complex se

Question 11

Shaping and reinforcing a new organizational culture requires all of the following EXCEPT:

Accepted Answer

A)  effective communication. 
B)  effective performance appraisals. 
C)  adherence to the firm's traditional core values. 
D)  an appropriate reward system. 
A)  effective communication. 
B)  effective performance appraisals. 
C)  adherence to the firm's traditional core values. 
D)  an appropriate reward system.

Question 12

A leader's style is commonly based upon what?

Accepted Answer

A)  The leader's work experience 
B)  The leader's educational background 
C)  The leader's race or ethnicity 
D)  The leader's personal ideology and experience 
A)  The leader's work experience 
B)  The leader's educational background 
C)  The leader's race or ethnicity 
D)  The leader's personal ideology and experience

Question 13

In addition to determining new strategic initiatives, top-level managers also develop the appropriate organizational structure and reward systems of a firm.

Accepted Answer

A) True 
 B)False

Question 14

The advantages of long tenure (firm-specific human and social capital, knowledge, and power) seem to outweigh the disadvantages of rigidity and maintaining the status quo.

Accepted Answer

A) True 
 B)False

Question 15

When a company does not possess all of the resources needed to successfully compete against its rivals, external social capital becomes increasingly critical to the firm's success.

Accepted Answer

A) True 
 B)False

Question 16

All of the following are external environmental sources that affect managerial discretion EXCEPT:

Accepted Answer

A)  industry structure. 
B)  corporate culture. 
C)  market growth rate. 
D)  potential for product differentiation. 
A)  industry structure. 
B)  corporate culture. 
C)  market growth rate. 
D)  potential for product differentiation.

Question 17

Which of the following is NOT one of the five dimensions thought to characterize an employee's entrepreneurial mind-set?

Accepted Answer

A)  Autonomy 
B)  Reactivity 
C)  Risk taking 
D)  Innovativeness 
A)  Autonomy 
B)  Reactivity 
C)  Risk taking 
D)  Innovativeness

Question 18

Executive headhunters have approached Charles about taking the position of senior vice president of marketing for a well-known company.Although this company has been highly successful since 1995, Charles has heard persistent rumors of overly aggressive marketing tactics, questionable reporting of sales data, and an atmosphere of intolerance of criticism.The CEO is a powerful and charismatic individual, who built the company from a small regional firm to an international powerhouse in only a decade.The other top managers have been handpicked by the CEO, as have a number of the members of the board of directors.The salary for this position is very high and includes generous stock options.It would be a major step up in Charles's career and would position him to move to CEO of another company in the future.Charles has prided himself on his high moral values and is viewed as an exceptionally ethical person by his peers.Which of the following should Charles do?

Accepted Answer

A)  Charles should take the job because he can effect real change in the culture of the organization and take advantage of the personal financial and career opportunities. 
B)  Charles should realize that personal moral values and the realities of the corporate world differ in both quality and degree.Consequently, he can take a job in an ethically borderline company without tainting his personal moral standing. 
C)  Charles should not rely on rumors to dissuade him from making an advantageous career decision. 
D)  Charles should not take the job because the culture of the organization is set by the CEO and other top managers.He would have little influence on the organizational culture as one of many top managers. 
A)  Charles should take the job because he can effect real change in the culture of the organization and take advantage of the personal financial and career opportunities. 
B)  Charles should realize that personal moral values and the realities of the corporate world differ in both quality and degree.Consequently, he can take a job in an ethically borderline company without tainting his personal moral standing. 
C)  Charles should not rely on rumors to dissuade him from making an advantageous career decision. 
D)  Charles should not take the job because the culture of the organization is set by the CEO and other top managers.He would have little influence on the organizational culture as one of many top managers.

Question 19

A firm will closely examine different segments of the balanced scorecard, depending on what it wants to learn about itself as it seeks balance.For example, PeliCorp wants to understand what processes it should emphasize in order to successfully use its competitive advantage.About which perspective is PeliCorp most concerned?

Accepted Answer

A)  Internal 
B)  Financial 
C)  Customer 
D)  Learning and growth 
A)  Internal 
B)  Financial 
C)  Customer 
D)  Learning and growth

Question 20

Faced with declining enrollment and increased competition from not-for-profit organizations offering inexpensive art courses for new hobbyists, the for-profit Delta Academy of Art has steadfastly stayed true to its mission of offering high-quality classical art instruction for both beginners and advanced artists at high tuition.Delta has been noted for the excellence of its artistic training for decades.This is an example of:

Accepted Answer

A)  adhesion to the status quo. 
B)  lack of an envisioned future. 
C)  competence becoming a liability. 
D)  failure to have a clear core ideology. 
A)  adhesion to the status quo. 
B)  lack of an envisioned future. 
C)  competence becoming a liability. 
D)  failure to have a clear core ideology.

Financial controls provide feedback about outcomes achieved from past actions and predictions about future performance.

Rangle Holdings is using a balanced scorecard to evaluate its implementation of its strategies.How should Rangle use both strategic and financial controls in this assessment?

Organizational culture is a complex set of ideologies, symbols, and core values that are shared throughout the firm, but its development is so subtle and poorly understood that top managers cannot influence its content.

Four perspectives are integrated to form the balanced scorecard framework.The financial perspective focuses on the view of the firm by the:

The underlying premise of the balanced scorecard is that firms jeopardize their future performance when strategic controls are emphasized at the expense of financial controls.

Some companies have a preference for insiders to fill top-level management positions because of the desire for continuity and a continuing commitment to the firm's existing vision, mission, and chosen strategies.

The primary responsibility for effective strategic leadership of the organization rests with the:

When a new CEO is selected from outside the firm, a change of strategy is likely, especially if the top management team is homogenous and highly cohesive.

Which key strategic leadership action plays a key role in influencing how the firm conducts its business and regulates and controls employees' behavior?

What is organizational culture? What must strategic leaders do to develop and sustain an effective organizational culture?

Shaping and reinforcing a new organizational culture requires all of the following EXCEPT:

A leader's style is commonly based upon what?

In addition to determining new strategic initiatives, top-level managers also develop the appropriate organizational structure and reward systems of a firm.

The advantages of long tenure (firm-specific human and social capital, knowledge, and power) seem to outweigh the disadvantages of rigidity and maintaining the status quo.

When a company does not possess all of the resources needed to successfully compete against its rivals, external social capital becomes increasingly critical to the firm's success.

All of the following are external environmental sources that affect managerial discretion EXCEPT:

Which of the following is NOT one of the five dimensions thought to characterize an employee's entrepreneurial mind-set?

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Entrepreneurship

Filters

Exam 12: Strategic Leadership

Financial controls provide feedback about outcomes achieved from past actions and predictions about future performance.

Rangle Holdings is using a balanced scorecard to evaluate its implementation of its strategies.How should Rangle use both strategic and financial controls in this assessment?

Organizational culture is a complex set of ideologies, symbols, and core values that are shared throughout the firm, but its development is so subtle and poorly understood that top managers cannot influence its content.

Four perspectives are integrated to form the balanced scorecard framework.The financial perspective focuses on the view of the firm by the:

The underlying premise of the balanced scorecard is that firms jeopardize their future performance when strategic controls are emphasized at the expense of financial controls.

Some companies have a preference for insiders to fill top-level management positions because of the desire for continuity and a continuing commitment to the firm's existing vision, mission, and chosen strategies.

The primary responsibility for effective strategic leadership of the organization rests with the:

When a new CEO is selected from outside the firm, a change of strategy is likely, especially if the top management team is homogenous and highly cohesive.

Which key strategic leadership action plays a key role in influencing how the firm conducts its business and regulates and controls employees' behavior?

What is organizational culture? What must strategic leaders do to develop and sustain an effective organizational culture?

Shaping and reinforcing a new organizational culture requires all of the following EXCEPT:

A leader's style is commonly based upon what?

In addition to determining new strategic initiatives, top-level managers also develop the appropriate organizational structure and reward systems of a firm.

The advantages of long tenure (firm-specific human and social capital, knowledge, and power) seem to outweigh the disadvantages of rigidity and maintaining the status quo.

When a company does not possess all of the resources needed to successfully compete against its rivals, external social capital becomes increasingly critical to the firm's success.

All of the following are external environmental sources that affect managerial discretion EXCEPT:

Which of the following is NOT one of the five dimensions thought to characterize an employee's entrepreneurial mind-set?

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Organizational Structure and Controls

Strategic Entrepreneurship

Filters