Question 1

To successfully implement a firm's strategy, the workforce must be viewed as a:

Accepted Answer

A)  variable cost. 
B)  depreciating asset. 
C)  resource to be maximized. 
D)  renewable asset. 
A)  variable cost. 
B)  depreciating asset. 
C)  resource to be maximized. 
D)  renewable asset.

Question 2

Internal labor markets consist of the career opportunities for managers within the firm for which they currently work.

Accepted Answer

A) True 
 B)False

Question 3

Members with substantive expertise in the firm's core functions and businesses aid the effectiveness of the top management team.

Accepted Answer

A) True 
 B)False

Question 4

The more homogeneous a top management team, the more likely those managers will be innovative and willing to pursue strategic change.

Accepted Answer

A) True 
 B)False

Question 5

The experience that results from long tenure in a firm is known to extend the breadth of an executive's knowledge base.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is NOT related to a CEO having long tenure in his or her position?

Accepted Answer

A)  More effective strategic control 
B)  Greater influence on board decisions 
C)  More limited perspective 
D)  A broader knowledge base 
A)  More effective strategic control 
B)  Greater influence on board decisions 
C)  More limited perspective 
D)  A broader knowledge base

Question 7

Normally, the more involved a Board of Directors is in shaping the firm's strategic direction, the:

Accepted Answer

A)  more balanced the organization is. 
B)  higher the corporation's performance is. 
C)  more rapidly executive decisions can be made. 
D)  more difficult it becomes to make effective executive decisions. 
A)  more balanced the organization is. 
B)  higher the corporation's performance is. 
C)  more rapidly executive decisions can be made. 
D)  more difficult it becomes to make effective executive decisions.

Question 8

The CEO of YorkMark, Inc., has an exceptional amount of power in the organization. It is likely the Board of Directors is composed of sympathetic outside members and insiders who report to the CEO.

Accepted Answer

A) True 
 B)False

Question 9

Competitive aggressiveness, proactiveness, risk aversion, innovativeness, and autonomy are the five dimensions characterizing the entrepreneurial mind-set.

Accepted Answer

A) True 
 B)False

Question 10

Research shows that ____________ is the most effective means of ensuring that employees comply with the firm's ethical requirements.

Accepted Answer

A)  a written code of ethics 
B)  a statement in the firm's mission statement 
C)  a speech on ethics by the CEO of the company 
D)  a value-based culture 
A)  a written code of ethics 
B)  a statement in the firm's mission statement 
C)  a speech on ethics by the CEO of the company 
D)  a value-based culture

Question 11

Organizational controls provide:

Accepted Answer

A)  the parameters within which strategies are to be implemented. 
B)  goals and objectives that must be achieved. 
C)  information on action steps to be taken to implement the corporate strategy. 
D)  managers with guidelines on how to treat employees. 
A)  the parameters within which strategies are to be implemented. 
B)  goals and objectives that must be achieved. 
C)  information on action steps to be taken to implement the corporate strategy. 
D)  managers with guidelines on how to treat employees.

Question 12

Employees usually have a strong preference for firms to use the internal managerial labor market when selecting top management team members and the CEO.

Accepted Answer

A) True 
 B)False

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

Clarita Cosmetics is confronting a decline in sales due largely to a general economic downturn. The top management team is debating whether to lay off employees. In the debate, the following statements are made. Which of the statements is FALSE?

Accepted Answer

A)  If Clarita Cosmetics lays off a large number of employees, there will be a significant loss of human capital that will cause further downturns in the firm's performance. 
B)  A moderate-sized layoff at Clarita Cosmetics will probably improve firm performance. 
C)  If Clarita Cosmetics restructures, it ought to increase investments in training and development. 
D)  A layoff will increase the slack at Clarita Cosmetics and allow the firm to absorb the increased number of errors employees may make until they learn their new tasks. 
A)  If Clarita Cosmetics lays off a large number of employees, there will be a significant loss of human capital that will cause further downturns in the firm's performance. 
B)  A moderate-sized layoff at Clarita Cosmetics will probably improve firm performance. 
C)  If Clarita Cosmetics restructures, it ought to increase investments in training and development. 
D)  A layoff will increase the slack at Clarita Cosmetics and allow the firm to absorb the increased number of errors employees may make until they learn their new tasks.

Question 15

Top management team members and CEOs who have long tenure on the team and in the organization have greater influence in Board decisions.

Accepted Answer

A) True 
 B)False

Question 16

The decision-making discretion of top-level managers is determined partly by external environmental factors such as the industry structure, the industry's rate of growth, and the degree to which products can be differentiated.

Accepted Answer

A) True 
 B)False

Question 17

Selection of an insider as a new CEO indicates a firm's desire to encourage innovation and strategic change.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is NOT one of the four perspectives in the balanced scorecard framework?

Accepted Answer

A)  entrepreneurial 
B)  financial 
C)  customer 
D)  learning and growth 
A)  entrepreneurial 
B)  financial 
C)  customer 
D)  learning and growth

Question 19

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 20

The Board of Directors for TundraPro, Inc., is searching for a new CEO. The firm is in need of new direction after suffering several years of declining performance and increasingly demoralized management and employees. The Board has decided it needs a CEO who can be a transformational leader. To this specific end, the Board needs to identify applicants who have

Accepted Answer

A)  high levels of honesty, trustworthiness, and integrity. 
B)  high emotional intelligence. 
C)  Both A and B are correct. 
D)  low tolerance for ambiguity. 
A)  high levels of honesty, trustworthiness, and integrity. 
B)  high emotional intelligence. 
C)  Both A and B are correct. 
D)  low tolerance for ambiguity.

To successfully implement a firm's strategy, the workforce must be viewed as a:

Internal labor markets consist of the career opportunities for managers within the firm for which they currently work.

Members with substantive expertise in the firm's core functions and businesses aid the effectiveness of the top management team.

The more homogeneous a top management team, the more likely those managers will be innovative and willing to pursue strategic change.

The experience that results from long tenure in a firm is known to extend the breadth of an executive's knowledge base.

Which of the following is NOT related to a CEO having long tenure in his or her position?

Normally, the more involved a Board of Directors is in shaping the firm's strategic direction, the:

The CEO of YorkMark, Inc., has an exceptional amount of power in the organization. It is likely the Board of Directors is composed of sympathetic outside members and insiders who report to the CEO.

Competitive aggressiveness, proactiveness, risk aversion, innovativeness, and autonomy are the five dimensions characterizing the entrepreneurial mind-set.

Research shows that ____________ is the most effective means of ensuring that employees comply with the firm's ethical requirements.

Organizational controls provide:

Employees usually have a strong preference for firms to use the internal managerial labor market when selecting top management team members and the CEO.

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

Clarita Cosmetics is confronting a decline in sales due largely to a general economic downturn. The top management team is debating whether to lay off employees. In the debate, the following statements are made. Which of the statements is FALSE?

Top management team members and CEOs who have long tenure on the team and in the organization have greater influence in Board decisions.

The decision-making discretion of top-level managers is determined partly by external environmental factors such as the industry structure, the industry's rate of growth, and the degree to which products can be differentiated.

Selection of an insider as a new CEO indicates a firm's desire to encourage innovation and strategic change.

Which of the following is NOT one of the four perspectives in the balanced scorecard framework?

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

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

To successfully implement a firm's strategy, the workforce must be viewed as a:

Internal labor markets consist of the career opportunities for managers within the firm for which they currently work.

Members with substantive expertise in the firm's core functions and businesses aid the effectiveness of the top management team.

The more homogeneous a top management team, the more likely those managers will be innovative and willing to pursue strategic change.

The experience that results from long tenure in a firm is known to extend the breadth of an executive's knowledge base.

Which of the following is NOT related to a CEO having long tenure in his or her position?

Normally, the more involved a Board of Directors is in shaping the firm's strategic direction, the:

The CEO of YorkMark, Inc., has an exceptional amount of power in the organization. It is likely the Board of Directors is composed of sympathetic outside members and insiders who report to the CEO.

Competitive aggressiveness, proactiveness, risk aversion, innovativeness, and autonomy are the five dimensions characterizing the entrepreneurial mind-set.

Research shows that ____________ is the most effective means of ensuring that employees comply with the firm's ethical requirements.

Organizational controls provide:

Employees usually have a strong preference for firms to use the internal managerial labor market when selecting top management team members and the CEO.

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

Clarita Cosmetics is confronting a decline in sales due largely to a general economic downturn. The top management team is debating whether to lay off employees. In the debate, the following statements are made. Which of the statements is FALSE?

Top management team members and CEOs who have long tenure on the team and in the organization have greater influence in Board decisions.

The decision-making discretion of top-level managers is determined partly by external environmental factors such as the industry structure, the industry's rate of growth, and the degree to which products can be differentiated.

Selection of an insider as a new CEO indicates a firm's desire to encourage innovation and strategic change.

Which of the following is NOT one of the four perspectives in the balanced scorecard framework?

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

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