Question 1

One critical ability of a strategic leader is skill in attracting and managing human capital.

Accepted Answer

A) True 
 B)False

Question 2

Rewarding those who use proper channels and procedures to report observed wrongdoings is an example of an action that should be taken by a strategic leader to develop an ethical organizational culture.

Accepted Answer

A) True 
 B)False

Question 3

Competitive aggressiveness describes a firm's:

Accepted Answer

A)  tendency to engage in new ideas and creative processes. 
B)  willingness to allow employees to take actions free of organizational constraints. 
C)  ability to be a leader in the marketplace. 
D)  propensity to take actions that allow it to outperform rivals consistently and substantially.

Question 4

The Enron employee who reported the financial manipulations at the company to her superiors can be considered to have engaged in:

Accepted Answer

A)  managerial opportunism. 
B)  white-collar crime. 
C)  vindictive disloyalty. 
D)  an act of courage.

Question 5

The CEO/chairman of PharmaPacifica was recently killed in an airplane crash.This tragedy has thrown PharmaPacifica into turmoil as there is no one in the organization qualified to step into the former CEO's shoes.This is an example of:

Accepted Answer

A)  a failure of succession management. 
B)  managerial hubris. 
C)  the risk inherent in CEO duality. 
D)  excessive reliance on the internal managerial labor market.

Question 6

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.

Question 7

What are organizational controls? Why are strategic controls and financial controls important aspects of the strategic management process?

Accepted Answer

The answer of What are organizational controls? Why are strategic...

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.

Question 9

__________ 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

Question 10

Define human capital and its importance to the firm's success.

Accepted Answer

The answer of Define human capital and its importance to...

Question 11

The CEO of CLEO, Inc., in all her communications to employees consistently refers to her dream of CLEO becoming the company of choice for employee assistance programs.She keeps this theme uppermost and it is reflected in the firm's motto, the title of its Web newsletter, and even on the company T-shirts and mugs.This is an example of the firm's:

Accepted Answer

A)  core ideology. 
B)  organizational culture. 
C)  strategy. 
D)  envisioned future.

Question 12

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.Which of the following statements made during the debate is false?

Accepted Answer

A)  If Clarita Cosmetics lays off a large number of employees, a significant loss of human capital 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 13

The ability to attract and manage __________ may be the most important skill a strategic leader must have.

Accepted Answer

A)  human capital 
B)  financial resources 
C)  responses to competitors' actions 
D)  investment strategies

Question 14

__________ capital increases cooperation among individuals inside and outside the firm.

Accepted Answer

A)  Human 
B)  Social 
C)  Visionary 
D)  Cultural

Question 15

An emphasis on strategic controls encourages managers to be risk averse.

Accepted Answer

A) True 
 B)False

Question 16

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)  a high level of integrity and a low tolerance for ambiguity. 
B)  high emotional intelligence and high tolerance for ambiguity. 
C)  a high level of integrity and high emotional intelligence. 
D)  a low tolerance for ambiguity and a high level of experience.

Question 17

A heterogeneous top management team is composed of individuals with:

Accepted Answer

A)  different functional backgrounds, experience, and education. 
B)  similar commitments to the organization's core ideology and culture. 
C)  a high level of education and industry expertise. 
D)  long tenure in the organization who have held various functional positions.

Question 18

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

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 helps regulate and control employee behavior and influences how the firm conducts its business.

Exam 12: Strategic Leadership

One critical ability of a strategic leader is skill in attracting and managing human capital.

Rewarding those who use proper channels and procedures to report observed wrongdoings is an example of an action that should be taken by a strategic leader to develop an ethical organizational culture.

Competitive aggressiveness describes a firm's:

The Enron employee who reported the financial manipulations at the company to her superiors can be considered to have engaged in:

The CEO/chairman of PharmaPacifica was recently killed in an airplane crash.This tragedy has thrown PharmaPacifica into turmoil as there is no one in the organization qualified to step into the former CEO's shoes.This is an example of:

Organizational controls provide:

What are organizational controls? Why are strategic controls and financial controls important aspects of the strategic management process?

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

Define human capital and its importance to the firm's success.

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.Which of the following statements made during the debate is false?

The ability to attract and manage __________ may be the most important skill a strategic leader must have.

__________ capital increases cooperation among individuals inside and outside the firm.

An emphasis on strategic controls encourages managers to be risk averse.

A heterogeneous top management team is composed of individuals with:

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