Question 1

Jeff Bezos, CEO of Amazon.com, uses the S team (senior management) to engage in continuous strategic planning.

Accepted Answer

According to Amazon's website, the S team (senior management team) is responsible for "setting the company's strategic direction, reviewing key operational priorities, and monitoring progress on key initiatives." Jeffrey Bezos leads this team as the CEO of Amazon.com.

Question 2

For many large corporations the typical strategic planning staff has just fewer than how many people?

Accepted Answer

According to the passage, the typical strategic planning staff for large corporations has just fewer than 10 people.

Question 3

Individuals such as Phil Knight at Nike and Steve Jobs at Apple who energized their companies and provided change and movement by providing a vision for that change are known as

Accepted Answer

Individuals like Phil Knight and Steve Jobs are known as transformational leaders because they inspired and motivated their companies to move forward and achieve a new vision. They went beyond just managing their businesses; they transformed them through their leadership style and ability to communicate a clear vision for change.

Question 4

Which of the following provides an example of a transformational leader?

Accepted Answer

Transformational leaders inspire and motivate their followers to achieve exceptional outcomes and, in the process, develop their own leadership capacity. They often lead by example, are charismatic, and help followers grow and innovate. Phil Knight energized Nike, Louis Gerstner redefined IBM's business model, Steve Ballmer showed hands-on leadership and problem-solving at Microsoft, and Ivan Seidenberg empowered his team at Verizon, all embodying aspects of transformational leadership.

Question 5

The role of the board of directors in reviewing, evaluating, and shaping corporate strategy is likely to be less active in the future.

Accepted Answer

The board of directors has a crucial role in reviewing, evaluating, and shaping corporate strategy. This role is likely to become more active in the future as companies face increasing pressure from stakeholders to prioritize long-term sustainability and social responsibility. Therefore, it is important for the board to be actively involved in shaping the company's strategic direction.

Question 6

What are the responsibilities of top management?

Accepted Answer

The answer of What are the responsibilities of top management?...

Question 7

The confidence levels of executive leaders may blind them to information that is contrary to a decided course of action; this may help to understand why overconfident CEOs are more likely to conduct mergers and acquisitions.

Accepted Answer

Research has shown that overconfident CEOs are more likely to conduct mergers and acquisitions, ignoring or not fully considering potential risks and negative outcomes. This is often due to their confidence levels and tendency to focus on information that confirms their beliefs, while disregarding contradictory data.

Question 8

According to the research, in turbulent environments, the best type of planning is

Accepted Answer

The answer of According to the research, in turbulent environments,...

Question 9

When calculating a "deserved pay" for CEOs based upon earnings growth and shareholder return, financial research firm Obermatt found that

Accepted Answer

The answer of When calculating a "deserved pay" for CEOs...

Question 10

Executive leadership is the directing of activities toward the accomplishment of corporate objectives.

Accepted Answer

Executive leadership involves setting and accomplishing corporate objectives by directing the activities of an organization.

Question 11

The negative side of confident executive leaders is that their very confidence may lead to hubris, in which their confidence blinds them to information that is contrary to a decided course of action.

Accepted Answer

Confident executive leaders may become overly confident and fail to consider opposing viewpoints or information, leading to hubris that can negatively impact their decision-making abilities.

Question 12

Which of the following is not a key characteristic of transformational executive leaders?

Accepted Answer

Energizing the board to formulate strategy is not a key characteristic of transformational executive leaders. While the CEO may work with the board to develop strategy, their primary focus is on inspiring and leading the organization as a whole. The other options, including presenting a role for others to follow, communicating high performance standards, demonstrating confidence in employees, and articulating a strategic vision, are all important characteristics of transformational executive leaders.

Question 13

Transformational leaders transform organizations from market leaders in one industry to market leadership in another.

Accepted Answer

Transformational leaders primarily focus on inspiring and motivating their followers to achieve unexpected or remarkable results within the same organization, rather than transforming the organization's market leadership from one industry to another.

Question 14

Society increasingly expects corporate boards to balance the economic goal of profitability with the social needs of society.

Accepted Answer

Corporate social responsibility (CSR) has become a significant concern for corporate boards as society expects companies to not only focus on profit-making but also social welfare. Companies are expected to consider the needs of their stakeholders, including customers, employees, and the local community, while making business decisions. This approach ensures that companies contribute to the sustainable development of the communities they operate in.

Question 15

According to a survey of 156 large corporations, in what percentage of the firms were strategies first proposed in business units and then sent to headquarters for approval?

Accepted Answer

According to the given information, strategies were proposed in business units and then sent to headquarters for approval in a majority of large corporations. The percentage is not given directly but based on the answer choices, the closest option is 66%. Therefore, option D is the best choice.

Question 16

A description of what the company is capable of becoming is referred to as

Accepted Answer

A strategic vision is a statement of what the company aspires to become in the future. It is a description of the company's long-term goals and objectives, and the direction in which it is headed.

Question 17

According to the text, one of the primary responsibilities of top management in strategic management is

Accepted Answer

The text states that one of the primary responsibilities of top management in strategic management is providing executive leadership.

Question 18

All of the following are true of overconfident CEOs EXCEPT

Accepted Answer

The statement "overconfident CEOs were less likely to make an acquisition when they could avoid selling new stock to finance them" is not true. The other options are all true characteristics of overconfident CEOs.

Question 19

Usually, the strategic planning staff is charged with supporting only top management in the strategic planning process.

Accepted Answer

Strategic planning staff often supports not only top management but also various levels of the organization in the strategic planning process, facilitating coordination and communication across different departments and teams.

Quiz 2: Corporate Governance