Deck 2: Strategic Leadership

Question 1

Strategic leadership entails the set of assumptions,premises,and accepted wisdom that bounds or frames a manager's understanding of the firm.

Answer 1

False

Question 2

The training of future strategic leaders yields a competitive advantage for a firm,in part because knowledge and skills are necessary for successful execution of strategy.

Answer 2

True

Question 3

Firm size,firm age,tolerance for ambiguity,and commitment to strategic outcomes are all examples of characteristics of the organization that may affect managerial discretion.

Answer 3

False

Question 4

Competitive aggressiveness,proactiveness,risk aversion,innovativeness,and autonomy are the five dimensions characterizing a firm's entrepreneurial orientation.

Question 5

It is very uncommon for a CEO to appoint a number of outside board members.

Question 6

When a new CEO is selected from outside the firm,a change of strategy is likely,especially if the top management team is homogenous and highly cohesive.

Question 7

Strategic leadership is the ability to anticipate,envision,maintain flexibility,and empower others to create strategic change as necessary.

Question 8

Neither hiring temporary workers nor star players is sufficient for developing an effective organizational team.

Question 9

A manager's decision discretion is influenced by his or her own characteristics,environmental sources external to the firm,and characteristics of the Board of Directors.

Question 10

An organization leader's new vision must take into account the current and core competencies of the firm.

Question 11

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

Question 12

The more heterogeneous and the larger the top management team,the easier it is to implement strategy effectively.

Question 13

Corporate cultures emerge in organizations,but their development is so subtle that top managers cannot influence their formation.

Question 14

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

Question 15

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

Question 16

Heterogeneous top management teams are more likely to change their firm's strategies when necessary and to support innovation.

Question 17

Effective strategic leaders are willing to make candid,courageous,yet pragmatic,decisions-decisions based mostly on the leader's seasoned intuition.

Question 18

External environmental factors that may affect managerial discretion include industry structure,rate of market growth,and degree of product differentiation.

Question 19

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

Question 20

Different approaches to leadership by CEOs such as Jack Welch and Sam Walton demonstrate the profound influence strategic leaders can have on an organization.

Question 21

Effective strategic leadership entails the ability to articulate clear ____ and ____.

A) employee attitudes,corporate culture
B) strategic change,performance trends
C) goals,objectives
D) strategic intent,motivate followers

Question 22

Which of the following is NOT likely to encourage change in a firm's strategy?

A) A new CEO from outside the firm
B) A homogeneous top management team
C) A top management team with managers from different functional backgrounds
D) A new CEO from outside the industry

Question 23

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

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

Question 24

Some researchers argue that a firm's long-term competitiveness depends on the:

A) ability of managers to maintain a constant managerial frame.
B) ability of managers to challenge their managerial frames on a continual basis.
C) ability of managers to fend off change.
D) abilities of lower-level management teams.

Question 25

A CEO obtains power from all of the following EXCEPT:

A) the fact that many of the outside directors are appointed by the CEO.
B) the CEO is also the chairman of the board.
C) the tenure of the top management team is shorter than that of the board.
D) the fact that inside board members report to the CEO.

Question 26

An emphasis on strategic controls encourages managers to focus on more short-term goals and efficient operations.

Question 27

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

A) Internal hiring results in a higher turnover rate of existing personnel.
B) Insiders are familiar with the firm's products.
C) Insider hiring reflects a desire for continuity.
D) Insiders are more familiar with a firm's operating procedures.

Question 28

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

A) interpersonal skills.
B) commitment to the firm.
C) tolerance for ambiguity.
D) aspiration levels.

Question 29

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

A) Innovation
B) Identification of environmental changes
C) Diminished debate
D) Strategic change

Question 30

The more involved a board of directors is in shaping the firm's strategic direction:

A) the lower is the corporation's performance.
B) the higher is the corporation's performance.
C) the more likely it is that the firm's top management team is homogenous in its makeup.
D) the more difficult it becomes to make executive decisions.

Question 31

A CEO's commitment to the status quo is influenced strongly by:

A) educational training.
B) the prestige of the university from which the CEO earned his or her degree.
C) long tenure with one firm.
D) the breadth of knowledge of the top management team.

Question 32

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

A) more effective strategic control
B) greater influence on organizational decisions
C) more limited perspective
D) high level of innovation

Question 33

The larger the top management team:

A) the more difficult it is for the team to implement strategies.
B) the more likely it is that the team will be homogeneous.
C) the less innovative the team's decisions are.
D) the higher quality the team's decisions are.

Question 34

An external labor market is:

A) the opportunities for managerial positions within a firm.
B) a collection of career opportunities for managers in organizations outside of the one for which they currently work.
C) the relationship between the CEO and its subordinates.
D) influential in the building of a homogenous top management team.

Question 35

A new CEO selected from outside the firm:

A) will successfully guide the company to higher profits.
B) has a narrower perspective of the firm and its competitive environment.
C) usually encourages innovation and strategic change.
D) will not be inclined to change the strategic direction of the firm.

Question 36

All of the following are external environmental sources that affect managerial discretion EXCEPT:

A) industry structure.
B) corporate culture.
C) market growth rate.
D) potential for product differentiation.

Question 37

Which of the following is NOT a factor that determines the amount of a manager's decision discretion?

A) Characteristics of the manager
B) Characteristics of the organization
C) Cohesiveness of the Board of Directors
D) External environmental sources

Question 38

All of the following are characteristics of the organization that affect managerial discretion EXCEPT:

A) size of the company.
B) availability of resources.
C) corporate culture.
D) degree of managerial self-confidence.

Question 39

A heterogeneous top management team is composed of individuals with:

A) different functional backgrounds,experience,and education.
B) similar experiences and similar education.
C) a high level of education.
D) a similar level of technical training.

Question 40

Money motivates,social capital inspires.

Question 41

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

A) Once a corporate culture is developed,strategic leaders can focus on other activities.
B) It is not possible to develop a corporate culture into a core competency.
C) A central task of strategic leaders is to change 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 the firm's conduct in the marketplace.

Question 42

Competitive aggressiveness describes a firm's:

A) tendency to engage in new ideas and creative processes.
B) tendency 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 43

Much of the development of U.S.industry can be attributed to:

A) the educational level of its workforce.
B) its emphasis on innovation.
C) the effectiveness of its human capital.
D) the country's financial markets.

Question 44

A firm that has the ability to be a market leader rather than a follower is said to be:

A) innovative.
B) a risk taker.
C) proactive.
D) competitively aggressive.

Question 45

Which of the following is NOT one of the five dimensions thought to characterize a firm's entrepreneurial orientation?

A) Autonomy
B) Reactivity
C) Risk taking
D) Innovativeness

Question 46

Many companies are now requiring ____ for top management positions.

A) development of a successful advertising campaign
B) MBAs from prestigious schools
C) specialized knowledge in a functional area
D) global competency

Question 47

The effective development and management of the firm's ____ may be the primary determinant of its sustainable competitive advantage.

A) capital base
B) human capital
C) technology
D) competitive edge

Question 48

Which of the following will lead to the probability that a manager will be a successful strategic leader?

A) Appointing many outside board members
B) Increasing the firm's sales
C) Increased expenditures on capital equipment
D) Training and development programs

Question 49

Which of the following is NOT an action of effective strategic leadership?

A) Establishing ethical practices
B) Fostering an effective corporate culture
C) Developing human capital
D) De-emphasizing core competencies

Question 50

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

A) a cost to be minimized.
B) expendable.
C) a resource to be maximized.
D) part of the organization that must be restructured.

Question 51

The process of transferring host-country or third-country national managers into the domestic market of the multinational firm is known as:

A) expatriation.
B) repatriation.
C) inpatriation.
D) reverse patriation.

Question 52

When the top management team is homogeneous and a new CEO is selected from inside the firm,it is:

A) unlikely for the current strategy to change.
B) likely that product innovation will continue.
C) likely there will be a change in strategy.
D) unlikely the new CEO will have a long tenure.

Question 53

Which of the following is a source of competitive advantage at General Electric?

A) The firm's Internet strategy
B) The firm's emphasis on technology management
C) The firm's system of training and development of future leaders
D) The firm's strategic orientation

Question 54

The benefits of training and development programs include all of the following EXCEPT:

A) establishing independent core values.
B) promoting the firm's strategic vision.
C) providing a systematic view of the organization.
D) building knowledge and skills.

Question 55

Determining the strategic direction for the firm refers to:

A) developing a short-term vision of the firm's strategic intent.
B) developing a tactical strategic response.
C) developing a long-term vision of the firm's strategic intent.
D) the top management team's heterogeneous status.

Question 56

If a firm is a market leader,rather than a market follower,it can be characterized as being ____.

A) proactive
B) aggressive
C) strategic
D) risk-taking

Question 57

If a firm is to have an adequate number of highly qualified managers,it must tap the following highly qualified labor pool:

A) Former employees.
B) College interns.
C) Foreign-born but U.S.-trained applicants.
D) Women.

Question 58

It is clear that large firms:

A) develop core competencies in a single functional area when implementing strategy.
B) exploit core competencies across different organizational units when implementing strategy.
C) have an identifiable brand name in order to create a competitive advantage during the implementation stage.
D) make a number of acquisitions in order to develop and exploit core competencies within the organization.

Question 59

The concept of employee autonomy is highly related to the concept of ____.

A) cohesiveness
B) loyalty
C) charisma
D) empowerment

Question 60

Human capital refers to the:

A) number of employees employed by a firm.
B) resources available to the Human Resources department.
C) number of individuals comprising the top management team.
D) knowledge and skills of the firm's work force.

Question 61

What is strategic leadership and how important are top-level managers as an organizational resource?

Question 62

Financial controls focus on:

A) the strategic actions of the firm.
B) the long-term performance of the firm.
C) short-term financial outcomes.
D) the risk taking ability of the top management team.

Question 63

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

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

Question 64

Strategic controls focus on the:

A) short-term performance of the firm.
B) outcomes of strategic actions.
C) long-term goals of the firm.
D) content of strategic actions.

Question 65

Most corporate restructuring is designed to ____.

A) refocus the firm on its core businesses
B) reduce costs,especially labor costs
C) simultaneously stimulate centralization and decentralization.
D) generate rapid growth

Question 66

An emphasis on ____ produces short-term and risk-averse managerial decisions.

A) strategic controls
B) corporate culture
C) financial controls
D) balanced organizational controls

Question 67

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

A) effective communication.
B) effective performance appraisals.
C) the firing of non-performing employees.
D) an appropriate reward system.

Question 68

The ____ is a framework firms can use to verify that they have established both strategic and financial controls.

A) managerial model
B) holistic control system
C) balanced scorecard
D) dual oversight system

Question 69

In the text,unethical practices are compared to ____.

A) a terminal illness
B) broken promises
C) corporate schizophrenia
D) a contagious disease

Question 70

Criteria for reevaluating internal business processes using the balanced scorecard include all of the following EXCEPT ____.

A) improvements in innovative ability
B) asset utilization improvements
C) increases in employee morale
D) changes in employee turnover

Question 71

Actions that effective strategic leaders can take to develop an ethical organizational culture include all of the following EXCEPT:

A) communicating goals that describe the firm's ethical standards.
B) using reward systems that recognize acts of courage.
C) relying on the fundamental goodness of individuals.
D) creating a work environment where individuals are treated with dignity.

Question 72

In the balanced scorecard framework ____ controls are used to assess the organization's performance relative to learning and growth.

A) developmental
B) strategic
C) holistic
D) financial

Question 73

The Enron scandal is a good example of ____.

A) managerial opportunism
B) failure to implement the balanced scorecard
C) poor implementation of corporate culture
D) failure to adhere to the counsel of staff attorneys

Question 74

Ethical practices within a firm tend to increase:

A) as its top managers gain experience.
B) the effectiveness of strategic implementation processes.
C) the market performance of the firm.
D) as the firm becomes more international in its operations.

Question 75

When organizations are reported to engage in unethical practices:

A) poor financial controls will usually be to blame.
B) the value in the stock market tends to drop sharply.
C) the Justice Department oversees the reorganization of the firm.
D) they become takeover targets.

Question 76

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

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

Question 77

Organizational controls provide:

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 78

One catalyst for critical changes in the organizational culture is:

A) the selection of top managers from outside the corporation.
B) change in the industry structure.
C) new competition from foreign firms.
D) decreasing industry profits.

Question 79

Managerial opportunism occurs when managers:

A) have opportunities in the external labor market.
B) have opportunities in the internal labor market.
C) take actions that are in their own best interests but not in the firm's best interests.
D) take actions that are in their own best interests and also in the firm's best interests.

Question 80

The practices associated with an ethical culture have become institutionalized in the firm if they:

A) are integrated to form a written code of ethics.
B) are mentioned in the firm's mission statement.
C) are first embraced by the CEO of the company.
D) become the set of behaviors and actions accepted by most of the firm's employees and stakeholders.