Question 1

The balanced scorecard focuses on both financial and non-financial controls.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is NOT associated with heterogeneous top management teams?

Accepted Answer

A)  Higher firm performance 
B)  Innovation and strategic change 
C)  Diminished debate among top managers 
D)  Better strategic decisions 
A)  Higher firm performance 
B)  Innovation and strategic change 
C)  Diminished debate among top managers 
D)  Better strategic decisions

Question 3

____ provide information about the results of past actions, but do not communicate the drivers of the firm's future performance.

Accepted Answer

A)  Financial controls 
B)  Accounting information systems 
C)  Policies and procedures 
D)  Strategic feedback systems 
A)  Financial controls 
B)  Accounting information systems 
C)  Policies and procedures 
D)  Strategic feedback systems

Question 4

Which of the following is NOT a benefit to the firm using the internal labor market to select a new CEO?

Accepted Answer

A)  Internal hiring results in an increased level of innovation. 
B)  Insiders are familiar with the firm's products, markets, technologies, and operating procedures. 
C)  Use of the internal labor market reduces turnover among existing employees. 
D)  Insiders are more familiar with a firm's operating procedures. 
A)  Internal hiring results in an increased level of innovation. 
B)  Insiders are familiar with the firm's products, markets, technologies, and operating procedures. 
C)  Use of the internal labor market reduces turnover among existing employees. 
D)  Insiders are more familiar with a firm's operating procedures.

Question 5

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

Accepted Answer

Organizational culture is the set of ide

Question 6

Determining the strategic direction of a firm involves:

Accepted Answer

A)  implementation of a balanced scorecard. 
B)  developing an entrepreneurial mind set. 
C)  specifying the vision and the strategy to achieve that vision over time. 
D)  exploiting and maintaining core competencies. 
A)  implementation of a balanced scorecard. 
B)  developing an entrepreneurial mind set. 
C)  specifying the vision and the strategy to achieve that vision over time. 
D)  exploiting and maintaining core competencies.

Question 7

Which of the following factors most encourages stability in a firm's strategy?

Accepted Answer

A)  A new CEO hired from outside the firm but within the industry 
B)  Internal CEO succession and a homogeneous top management team 
C)  External CEO succession and a heterogeneous top management team 
D)  A new CEO hired from outside the industry 
A)  A new CEO hired from outside the firm but within the industry 
B)  Internal CEO succession and a homogeneous top management team 
C)  External CEO succession and a heterogeneous top management team 
D)  A new CEO hired from outside the industry

Question 8

The CEO of Icon Image Associates wishes to radically change the corporate culture of the firm. She knows that she must convince others at Icon Image of the necessity for the culture change and gain their active support. The CEO knows that the key players in energizing the culture change and fostering alignment with the new strategic vision are:

Accepted Answer

A)  the members of the Board of Directors. 
B)  top management team members. 
C)  the CEO, top managers, and middle managers. 
D)  rank-and-file employees. 
A)  the members of the Board of Directors. 
B)  top management team members. 
C)  the CEO, top managers, and middle managers. 
D)  rank-and-file employees.

Question 9

A characteristic of the manager that may affect managerial discretion is his/her:

Accepted Answer

A)  amount of industry experience. 
B)  level of education. 
C)  tolerance for ambiguity. 
D)  length of tenure. 
A)  amount of industry experience. 
B)  level of education. 
C)  tolerance for ambiguity. 
D)  length of tenure.

Question 10

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 11

Firm size, firm age, the executive's tolerance for ambiguity, and his or her commitment to strategic outcomes are all factors that may affect managerial discretion.

Accepted Answer

A) True 
 B)False

Question 12

CEO duality refers to:

Accepted Answer

A)  firms where there is both a president and a CEO. 
B)  CEOs who sit on the Board of Directors of other firms. 
C)  CEOs who hold office in more than one company. 
D)  the situation where the CEO is also chairperson of the Doard of Directors. 
A)  firms where there is both a president and a CEO. 
B)  CEOs who sit on the Board of Directors of other firms. 
C)  CEOs who hold office in more than one company. 
D)  the situation where the CEO is also chairperson of the Doard of Directors.

Question 13

Omicron Artificial Intelligence is able to respond quickly to competitors' actions and to opportunities in the marketplace. This is an example of:

Accepted Answer

A)  agility. 
B)  a core competency. 
C)  flexibility. 
D)  responsiveness. 
A)  agility. 
B)  a core competency. 
C)  flexibility. 
D)  responsiveness.

Question 14

An organization's ____ is composed of the key individuals who are responsible for selecting and implementing the firm's strategies.

Accepted Answer

A)  top management team 
B)  Board of Directors 
C)  keiretsu 
D)  governance circle 
A)  top management team 
B)  Board of Directors 
C)  keiretsu 
D)  governance circle

Question 15

Monahegan Plasma Company is facing a performance downturn and realizes that a major rethinking of its strategy is in order. Under these circumstances, Monahegan Plasma would benefit from a(n):

Accepted Answer

A)  internal CEO with short tenure. 
B)  external CEO with a heterogeneous top management team. 
C)  dual CEO/chairperson with a homogenous top management team. 
D)  CEO with long tenure who has a strong sense of hubris. 
A)  internal CEO with short tenure. 
B)  external CEO with a heterogeneous top management team. 
C)  dual CEO/chairperson with a homogenous top management team. 
D)  CEO with long tenure who has a strong sense of hubris.

Question 16

A CEO may gain power by holding the titles of both CEO and Chairman of the Board.

Accepted Answer

A) True 
 B)False

Question 17

The Chapter 12 Strategic Focus reports on recent successes of NBC News, Nokia, and Standard Charter because of the top managers' decisions.

Accepted Answer

A) True 
 B)False

Question 18

Transformational leadership is the most effective strategic leadership style.

Accepted Answer

A) True 
 B)False

Question 19

The top management team at Ingenuity, Inc., has assigned a team of scientists to a multi-year project to investigate the viability of growing large amounts of fur from cloned cells of minks and foxes to produce no-kill fur products for coats and other clothing items. This idea would satisfy all the dimensions of the entrepreneurial orientation EXCEPT:

Accepted Answer

A)  innovativeness. 
B)  risk taking. 
C)  proactiveness. 
D)  competitive autonomy. 
A)  innovativeness. 
B)  risk taking. 
C)  proactiveness. 
D)  competitive autonomy.

Question 20

Which of the following statements is TRUE regarding effective organizational cultures?

Accepted Answer

A)  Once a corporate culture is developed, strategic leaders can focus on other activities. 
B)  A strategy that is historically new for a firm should be implemented by incremental changes in the organization's culture. 
C)  A central task of strategic leaders is to revise the corporate culture on an annual basis after analyzing the changes occurring in the competitive environment. 
D)  Organizational culture can be a source of competitive advantage because it influences employee behavior and how the firm's conducts its business. 
A)  Once a corporate culture is developed, strategic leaders can focus on other activities. 
B)  A strategy that is historically new for a firm should be implemented by incremental changes in the organization's culture. 
C)  A central task of strategic leaders is to revise the corporate culture on an annual basis after analyzing the changes occurring in the competitive environment. 
D)  Organizational culture can be a source of competitive advantage because it influences employee behavior and how the firm's conducts its business.

The balanced scorecard focuses on both financial and non-financial controls.

Which of the following is NOT associated with heterogeneous top management teams?

____ provide information about the results of past actions, but do not communicate the drivers of the firm's future performance.

Which of the following is NOT a benefit to the firm using the internal labor market to select a new CEO?

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

Determining the strategic direction of a firm involves:

Which of the following factors most encourages stability in a firm's strategy?

A characteristic of the manager that may affect managerial discretion is his/her:

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

Firm size, firm age, the executive's tolerance for ambiguity, and his or her commitment to strategic outcomes are all factors that may affect managerial discretion.

CEO duality refers to:

Omicron Artificial Intelligence is able to respond quickly to competitors' actions and to opportunities in the marketplace. This is an example of:

An organization's ____ is composed of the key individuals who are responsible for selecting and implementing the firm's strategies.

Monahegan Plasma Company is facing a performance downturn and realizes that a major rethinking of its strategy is in order. Under these circumstances, Monahegan Plasma would benefit from a(n):

A CEO may gain power by holding the titles of both CEO and Chairman of the Board.

The Chapter 12 Strategic Focus reports on recent successes of NBC News, Nokia, and Standard Charter because of the top managers' decisions.

Transformational leadership is the most effective strategic leadership style.

Which of the following statements is TRUE regarding effective organizational cultures?

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

The balanced scorecard focuses on both financial and non-financial controls.

Which of the following is NOT associated with heterogeneous top management teams?

____ provide information about the results of past actions, but do not communicate the drivers of the firm's future performance.

Which of the following is NOT a benefit to the firm using the internal labor market to select a new CEO?

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

Determining the strategic direction of a firm involves:

Which of the following factors most encourages stability in a firm's strategy?

A characteristic of the manager that may affect managerial discretion is his/her:

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

Firm size, firm age, the executive's tolerance for ambiguity, and his or her commitment to strategic outcomes are all factors that may affect managerial discretion.

CEO duality refers to:

Omicron Artificial Intelligence is able to respond quickly to competitors' actions and to opportunities in the marketplace. This is an example of:

An organization's ____ is composed of the key individuals who are responsible for selecting and implementing the firm's strategies.

Monahegan Plasma Company is facing a performance downturn and realizes that a major rethinking of its strategy is in order. Under these circumstances, Monahegan Plasma would benefit from a(n):

A CEO may gain power by holding the titles of both CEO and Chairman of the Board.

The Chapter 12 Strategic Focus reports on recent successes of NBC News, Nokia, and Standard Charter because of the top managers' decisions.

Transformational leadership is the most effective strategic leadership style.

Which of the following statements is TRUE regarding effective organizational cultures?

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