Question 1

What are the arguments against top-down strategic planning and scenario planning?

Accepted Answer

Critics of top-down and scenario planning argue that strategic planning is not the same as strategic thinking. In fact, they argue the strategic planning processes are often too regimented and confining. As such, they do not allow for the necessary strategic thinking. Managers doing strategic planning may also fall prey to an illusion of control-that is, the hard numbers in a strategic plan can convey a false sense of security. According to critics of strategic planning, in order to be successful, a strategy should be based on an inspiring vision and not on hard data alone. They advise that managers should focus on all types of information sources, including soft sources that can generate new insights, such as personal experience or the experience of front-line employees.

Question 2

When the strong dictatorial rule in Backenstein unexpectedly collapsed due to the shocking death of the royal family in an explosion, the nation's economy experienced drastic changes. The laws became more restrictive, the country lost many locally produced resources and products, and the distribution of wealth became inequitable. The unexpected event that led to these changes can best be described as a(n) ________ event.

Accepted Answer

A)  extinction 
B)  wild card 
C)  black swan 
D)  miracle 
A)  extinction 
B)  wild card 
C)  black swan 
D)  miracle C

Question 3

Under the strategy as a planned emergence model, even entry-level employees can help generate strategic initiatives.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following best describes a Level 5 manager in the Level-5 leadership pyramid?

Accepted Answer

A)  Connie is an employee who just started her career at DK Inc.; she has already been appreciated for her knowledge and skills in the new company. 
B)  Dmitri is an employee at Infinite Circle Inc.; he has helped his team achieve their targets by contributing to the team's efforts. 
C)  Luigi is part of the marketing team at RT Corp.; he has been given the charge of managing a team of three, so he will be promoted to a manager's position next month. 
D)  Asoka is the CEO of Green Machines Inc.; he has helped his company in gaining and sustaining a competitive advantage through ethical decision making. 
A)  Connie is an employee who just started her career at DK Inc.; she has already been appreciated for her knowledge and skills in the new company. 
B)  Dmitri is an employee at Infinite Circle Inc.; he has helped his team achieve their targets by contributing to the team's efforts. 
C)  Luigi is part of the marketing team at RT Corp.; he has been given the charge of managing a team of three, so he will be promoted to a manager's position next month. 
D)  Asoka is the CEO of Green Machines Inc.; he has helped his company in gaining and sustaining a competitive advantage through ethical decision making.

Question 5

What is meant by corporate social responsibility (CSR)?

Accepted Answer

To identify a firm's responsibilities to

Question 6

Organic Food Inc., a multinational company, relies on its media partner Radio Plus to regularly advertise its offers, sales, and new products. Radio Plus is invested in this relationship because it generates most of its revenue from advertising Organic Food's products. In this scenario, Radio Plus is Organic Food Inc.'s

Accepted Answer

A)  stockholder. 
B)  workforce. 
C)  internal stakeholder. 
D)  external stakeholder. 
A)  stockholder. 
B)  workforce. 
C)  internal stakeholder. 
D)  external stakeholder.

Question 7

Burke Furnishings is a company that manufactures and sells home furniture. It sources its materials from another country to keep costs low. An assembly line worker in one of its manufacturing centers noticed that there was increasing concern regarding the potential toxicity of the flame-resistant materials used in the furniture. In response, she compiled a list of nontoxic flame-resistant materials that the company could use. When her manager learned about this, he presented the prospect and got it approved from the top management team. This is an example of the

Accepted Answer

A)  top-down strategic planning approach. 
B)  planned emergence approach. 
C)  scenario planning process. 
D)  reverse engineering process. 
A)  top-down strategic planning approach. 
B)  planned emergence approach. 
C)  scenario planning process. 
D)  reverse engineering process.

Question 8

Blue Billion Inc. is a large company that sells a variety of products such as cosmetics, jewelry, frozen foods, navigation electronics, and airplanes. Apart from this, the company also has a strong presence in the service industry through its chain of dance studios, casinos, and nightclubs. Each of its product divisions operates as an individual business and is responsible for its own profits and losses. Thus, these product divisions under Blue Billion can be referred to as

Accepted Answer

A)  limited liability companies. 
B)  functional departments. 
C)  strategic business units. 
D)  corporations. 
A)  limited liability companies. 
B)  functional departments. 
C)  strategic business units. 
D)  corporations.

Question 9

Which of the following statements is true of corporate strategy?

Accepted Answer

A)  The objective of corporate-level strategy is to ensure that the sum of the values of individual business units is greater than the overall corporate value. 
B)  A corporate strategy must be able to create synergies across business units that are quite different. 
C)  Formulating a corporate strategy involves general managers answering questions relating to how to compete in order to achieve superior performance. 
D)  Deciding whether to adopt a differentiation or a cost-leadership strategy is part of formulating the corporate strategy. 
A)  The objective of corporate-level strategy is to ensure that the sum of the values of individual business units is greater than the overall corporate value. 
B)  A corporate strategy must be able to create synergies across business units that are quite different. 
C)  Formulating a corporate strategy involves general managers answering questions relating to how to compete in order to achieve superior performance. 
D)  Deciding whether to adopt a differentiation or a cost-leadership strategy is part of formulating the corporate strategy.

Question 10

As the legal owners, ________ have the most legitimate claim on a company's profits.

Accepted Answer

A)  creditors 
B)  employees 
C)  shareholders 
D)  board members 
A)  creditors 
B)  employees 
C)  shareholders 
D)  board members

Question 11

An employee lacking some of the innate abilities to be a top-level manager can still become an effective strategic leader through hard work and experience.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following functions do the general managers in strategic business units primarily perform?

Accepted Answer

A)  design generic business strategies based on guidelines received from corporate headquarters 
B)  set overarching strategic objectives to unify the entire conglomerate under one mission 
C)  take responsibility for decisions and actions within a single functional area 
D)  allocate scarce resources among different business divisions 
A)  design generic business strategies based on guidelines received from corporate headquarters 
B)  set overarching strategic objectives to unify the entire conglomerate under one mission 
C)  take responsibility for decisions and actions within a single functional area 
D)  allocate scarce resources among different business divisions

Question 13

Describe the traditional top-down strategic planning process.

Accepted Answer

In the traditional top-down strategic pl

Question 14

Executives whose visions and decisions help their companies achieve competitive advantage can be considered strategic leaders.

Accepted Answer

A) True 
 B)False

Question 15

Define strategic leadership.

Accepted Answer

Strategic leadership pertains

Question 16

A ________ is best described as any activity a firm pursues to explore and develop new products and processes, new markets, or new ventures.

Accepted Answer

A)  strategic initiative 
B)  value chain 
C)  supply chain 
D)  corrective action 
A)  strategic initiative 
B)  value chain 
C)  supply chain 
D)  corrective action

Question 17

The CEO of Chyron Media has decided to enter the markets of emerging nations like China and Brazil. This means that the books, magazines, and websites published under the Chyron Media banner would be made available in these nations. Which of the following strategies does this scenario best illustrate?

Accepted Answer

A)  corporate strategy 
B)  functional strategy 
C)  business strategy 
D)  divisional strategy 
A)  corporate strategy 
B)  functional strategy 
C)  business strategy 
D)  divisional strategy

Question 18

Strategic leaders spend the majority of their time working alone to devise new strategies.

Accepted Answer

A) True 
 B)False

Question 19

Who formulates a company's corporate strategy? What is the objective of this strategy?

Accepted Answer

Corporate executives at headquarters for

Question 20

The founder of T-Square Construction strongly believes in the notion of corporate social responsibility, so he has proposed a number of philanthropic activities that he expects the company to pursue. In order to accomplish this vision, the managers should first

Accepted Answer

A)  review all legal codes in the areas in which T-Square operates and ensure all permits are up-to-date. 
B)  ensure that the company is profitable and has a sustainable competitive advantage. 
C)  make sure it is paying employees wages that allow them to live comfortably. 
D)  ask for public input on issues that the company can help address. 
A)  review all legal codes in the areas in which T-Square operates and ensure all permits are up-to-date. 
B)  ensure that the company is profitable and has a sustainable competitive advantage. 
C)  make sure it is paying employees wages that allow them to live comfortably. 
D)  ask for public input on issues that the company can help address.

What are the arguments against top-down strategic planning and scenario planning?

Under the strategy as a planned emergence model, even entry-level employees can help generate strategic initiatives.

Which of the following best describes a Level 5 manager in the Level-5 leadership pyramid?

What is meant by corporate social responsibility (CSR)?

Which of the following statements is true of corporate strategy?

As the legal owners, ________ have the most legitimate claim on a company's profits.

An employee lacking some of the innate abilities to be a top-level manager can still become an effective strategic leader through hard work and experience.

Which of the following functions do the general managers in strategic business units primarily perform?

Describe the traditional top-down strategic planning process.

Executives whose visions and decisions help their companies achieve competitive advantage can be considered strategic leaders.

Define strategic leadership.

A ________ is best described as any activity a firm pursues to explore and develop new products and processes, new markets, or new ventures.

Strategic leaders spend the majority of their time working alone to devise new strategies.

Who formulates a company's corporate strategy? What is the objective of this strategy?

The founder of T-Square Construction strongly believes in the notion of corporate social responsibility, so he has proposed a number of philanthropic activities that he expects the company to pursue. In order to accomplish this vision, the managers should first

What Is Strategy

External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

Internal Analysis: Resources, Capabilities, and Core Competencies

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation, Entrepreneurship, and Platforms

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Strategic Alliances, Mergers, and Acquisitions

Global Strategy: Competing Around the World

Organizational Design: Structure, Culture, and Control

Corporate Governance and Business Ethics

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Exam 2: Strategic Leadership: Managing the Strategy Process

What are the arguments against top-down strategic planning and scenario planning?

Under the strategy as a planned emergence model, even entry-level employees can help generate strategic initiatives.

Which of the following best describes a Level 5 manager in the Level-5 leadership pyramid?

What is meant by corporate social responsibility (CSR)?

Which of the following statements is true of corporate strategy?

As the legal owners, ________ have the most legitimate claim on a company's profits.

An employee lacking some of the innate abilities to be a top-level manager can still become an effective strategic leader through hard work and experience.

Which of the following functions do the general managers in strategic business units primarily perform?

Describe the traditional top-down strategic planning process.

Executives whose visions and decisions help their companies achieve competitive advantage can be considered strategic leaders.

Define strategic leadership.

A ________ is best described as any activity a firm pursues to explore and develop new products and processes, new markets, or new ventures.

Strategic leaders spend the majority of their time working alone to devise new strategies.

Who formulates a company's corporate strategy? What is the objective of this strategy?

The founder of T-Square Construction strongly believes in the notion of corporate social responsibility, so he has proposed a number of philanthropic activities that he expects the company to pursue. In order to accomplish this vision, the managers should first

What Is Strategy

External Analysis: Industry Structure, Competitive Forces, and Strategic Groups

Internal Analysis: Resources, Capabilities, and Core Competencies

Competitive Advantage, Firm Performance, and Business Models

Business Strategy: Differentiation, Cost Leadership, and Blue Oceans

Business Strategy: Innovation, Entrepreneurship, and Platforms

Corporate Strategy: Vertical Integration and Diversification

Corporate Strategy: Strategic Alliances, Mergers, and Acquisitions

Global Strategy: Competing Around the World

Organizational Design: Structure, Culture, and Control

Corporate Governance and Business Ethics

Filters