Question 1

A company's mission

Accepted Answer

A)   lays out the desired future state of the company.
B)   outlines the manner in which employees and managers should conduct themselves.
C)   defines the manner in which strategies will be developed and attained.
D)   describes what the company does.
E)   answers the question, "What will our business become?"

Question 2

Good strategic leaders

Accepted Answer

A)   possess a willingness to delegate and empower subordinates.
B)   control all facets of decision making.
C)   are confident in their ability to make sound decisions without consulting others.
D)   assure uniformity of purpose through the exercise of power.
E)   have the ability to be inconsistent when the situation requires inconsistency.

Question 3

The final component of the strategic management process is crafting the organization's mission statement,which provides the framework or context within which strategies are formulated.

Accepted Answer

A) True 
 B)False

Question 4

A competitive advantage is considered to be a sustained competitive advantage when the

Accepted Answer

A)   advantage endures for a number of years.
B)   firm is able to spread the advantage to all of its business units.
C)   advantage is very large.
D)   advantage was gained at a low cost.
E)   managers who developed the advantage are still employed at the firm.

Question 5

Well-constructed goals provide a means by which the performance of managers can be evaluated.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not a characteristic of well-constructed goals?

Accepted Answer

A)   They are precise and measurable.
B)   They are the result of a group decision process.
C)   They specify a time period.
D)   They are challenging but realistic.
E)   They address critical issues.

Question 7

Identify and discuss the criticisms of the traditional strategic planning process and why it is useful to view strategy as an emergent process.

Accepted Answer

The traditional planning process is view...

Question 8

Which of the following dimension(s) is (are) encompassed by a company's business model?

Accepted Answer

A)   Selecting customers
B)   Defining and differentiating its product offerings
C)   Determining how it will produce goods and services
D)   Determining how it will grow the business over time
E)   All of these.

Question 9

Strategic leadership is concerned with how to most effectively manage a company's strategy-making process to create competitive advantage.

Accepted Answer

A) True 
 B)False

Question 10

Honda redefined the U.S.motorcycle industry with a brilliantly conceived intented strategy.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is the organization's principal general manager?

Accepted Answer

A)   The Board of Director
B)   Marketing division head
C)   CFO
D)   CEO
E)   Controller

Question 12

Profit growth is best measured

Accepted Answer

A)   by the increase in share price.
B)   by the return on investment.
C)   by the increase in net sales.
D)   over time.
E)   by increases in liquidity.

Question 13

Which of the following cognitive biases occurs when decision makers commit even more resources if they receive feedback that the project is failing?

Accepted Answer

A)   Prior hypothesis bias
B)   Reasoning by analogy
C)   Illusion of control
D)   Escalating commitment
E)   Representativeness

Question 14

A strategy can be defined as a set of related actions that managers take to increase their company's performance.

Accepted Answer

A) True 
 B)False

Question 15

Explain the formal strategic planning process.Name each step in the process and describe the specific activities included in each step and the relationship between the steps.

Accepted Answer

The strategy formulation portion of the ...

Question 16

Maximizing shareholder value is

Accepted Answer

A)   a byproduct of a company's cost reduction programs.
B)   not generally a viable goal for a company.
C)   not the responsibility of a company's managers.
D)   the ultimate goal of profit-making companies.
E)   not required to attract risk capital.

Question 17

Which of the following cognitive biases refers to the fact that decision makers who have strong prior beliefs about the relationship between two variables tend to make decisions on the basis of these beliefs,even when presented with evidence that their beliefs are wrong?

Accepted Answer

A)   Prior hypothesis bias
B)   Reasoning by analogy
C)   Illusion of control
D)   Escalating commitment
E)   Representativeness

Question 18

Which of the following is not a cognitive bias?

Accepted Answer

A)   Escalating commitment
B)   Reasoning by analogy
C)   Ivory tower thinking
D)   Representativeness
E)   Illusion of control

Question 19

A business model is managers' conception of how the set of strategies their company pursues should mesh together into a congruent whole,thus enabling the company to gain a competitive advantage and achieve superior profitability and profit growth.

Accepted Answer

A) True 
 B)False

Question 20

One of the factors that distinguishes organizations in the nonprofit sector from for-profit businesses is the lack of concern for strategic management.

Accepted Answer

A) True 
 B)False

Exam 1: Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

Identify and discuss the criticisms of the traditional strategic planning process and why it is useful to view strategy as an emergent process.

Correct AnswerverifiedThe traditional planning process is view...View AnswerShow Answer

A competitive advantage is considered to be a sustained competitive advantage when the

Correct AnswerverifiedShow Answer

Explain the formal strategic planning process.Name each step in the process and describe the specific activities included in each step and the relationship between the steps.

Correct AnswerverifiedThe strategy formulation portion of the ...View AnswerShow Answer

A company's mission

Correct AnswerverifiedShow Answer

Which of the following is not a cognitive bias?

Correct AnswerverifiedShow Answer

A business model is managers' conception of how the set of strategies their company pursues should mesh together into a congruent whole,thus enabling the company to gain a competitive advantage and achieve superior profitability and profit growth.

Correct AnswerverifiedShow Answer

Which of the following cognitive biases occurs when decision makers commit even more resources if they receive feedback that the project is failing?

Correct AnswerverifiedShow Answer

A strategy can be defined as a set of related actions that managers take to increase their company's performance.

Correct AnswerverifiedShow Answer

Honda redefined the U.S.motorcycle industry with a brilliantly conceived intented strategy.

Correct AnswerverifiedShow Answer

Profit growth is best measured

Correct AnswerverifiedShow Answer

Which of the following is the organization's principal general manager?

Correct AnswerverifiedShow Answer

Which of the following dimension(s) is (are) encompassed by a company's business model?

Correct AnswerverifiedShow Answer

Strategic leadership is concerned with how to most effectively manage a company's strategy-making process to create competitive advantage.

Correct AnswerverifiedShow Answer

Maximizing shareholder value is

Correct AnswerverifiedShow Answer

The final component of the strategic management process is crafting the organization's mission statement,which provides the framework or context within which strategies are formulated.

Correct AnswerverifiedShow Answer

Which of the following cognitive biases refers to the fact that decision makers who have strong prior beliefs about the relationship between two variables tend to make decisions on the basis of these beliefs,even when presented with evidence that their beliefs are wrong?

Correct AnswerverifiedShow Answer

Well-constructed goals provide a means by which the performance of managers can be evaluated.

Correct AnswerverifiedShow Answer

Good strategic leaders

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of well-constructed goals?

Correct AnswerverifiedShow Answer

One of the factors that distinguishes organizations in the nonprofit sector from for-profit businesses is the lack of concern for strategic management.

Correct AnswerverifiedShow Answer

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The traditional planning process is view...
View Answer

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The strategy formulation portion of the ...
View Answer

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