Question 1

An implication of complexity theory for the leadership of business enterprises is:

Accepted Answer

Complexity theory suggests that in complex and dynamic environments, rigid control is less effective. Allowing autonomy enables organizations to adapt and respond more flexibly to changes.

Question 2

During 2000-2013,the ratio of CEO compensation to the earnings of production workers among US companies averaged:

Accepted Answer

The ratio of CEO compensation to the earnings of production workers among US companies averaged around 300-times during the period from 2000 to 2013.

Question 3

According to the predictions of complexity theory,which of the following managerial actions is not likely to promote rapid evolutionary adaptation by an organization?

Accepted Answer

Leaders with well-developed emotional intelligence are important for managing teams and fostering a positive work environment, but they are not directly linked to promoting rapid evolutionary adaptation in the context of complexity theory.

Question 4

According to the economist Brian Arthur,the "second economy" comprises:

Accepted Answer

The "second economy" as described by Brian Arthur refers to a system of transactions managed entirely by machines, where digital processes operate autonomously without human intervention.

Question 5

Real options theory may change strategic management by:

Accepted Answer

The answer of Real options theory may change strategic management...

Question 6

The impact of the 2008/9 ﬁnancial crisis on ﬁnancial service ﬁrms suggests that loss of legitimacy is likely to have the following adverse effect:

Accepted Answer

The loss of legitimacy can lead to a lower valuation by investors, loss of employee morale, and adverse government policies, as all these factors are interconnected and can be triggered by a crisis of confidence in financial service firms.

Question 7

The growing number of takeovers of Western companies by Chinese and Indian companies reflects:

Accepted Answer

The answer of The growing number of takeovers of Western...

Question 8

Replacing mass manufacturing by lean manufacturing:

Accepted Answer

Lean manufacturing requires changes in human resource management to align with new processes, and failure to adapt can negatively impact operational performance.

Question 9

Achieving social legitimacy requires that businesses should:

Accepted Answer

The answer of Achieving social legitimacy requires that businesses should:
...

Question 10

As organizations and their environments become more complex and less predictable,the kind of leadership that fosters effective organizational adaptation is increasingly characterized by:

Accepted Answer

As organizations face complexity and unpredictability, leaders who manage identity, meaning, and the emotional climate help foster adaptability by aligning the organization's culture and values with changing environments.

Question 11

According to systems theory,high levels of interconnectedness can lead to:

Accepted Answer

According to systems theory, high levels of interconnectedness can lead to the amplification of small initial disturbances in unpredictable ways. This is also known as the butterfly effect, where a small change in one part of the system can have a significant impact on another part of the system. This can potentially lead to instability in the system, making it difficult to predict or control.

Question 12

The most effective remedy for the problems that have arisen from top managements' pursuit of shareholder value is likely to be:

Accepted Answer

The most effective remedy would be for management to shift its focus from stock market capitalization to the underlying drivers of long run profitability. This would help the company create sustainable value for all stakeholders, rather than prioritizing short-term gains for shareholders at the expense of other stakeholders. Increased government regulation or shareholder activism may be temporary solutions, but they do not address the root cause of the problem. A company's explicit commitment to creating stakeholder value is a step in the right direction, but it may not be sufficient if management is not fully committed to enacting the necessary changes.

Question 13

A major implication of corporate scandals,inequality,and environmental sustainability implies that company executives need for firm strategy to pay greater attention to:

Accepted Answer

The answer of A major implication of corporate scandals,inequality,and environmental...

Question 14

Complex biological and social systems demonstrate the capacity for self-organization.Self-organizing systems require:

Accepted Answer

Self-organizing systems require identity to define the system, information to process and adapt, and relationships to facilitate interactions and coordination among components.

Question 15

The first two decades of the 20^th and 21^st centuries were similar in terms of factors that were reshaping the business environment.The most significant of these common factors were:

Accepted Answer

Both the early 20th and 21st centuries experienced significant technological advancements that reshaped the business environment, such as electricity and the automobile in the 20th century, and the internet and mobile communication in the 21st century.

Question 16

During turbulent times,real options are increasingly important sources of value.The following are strategic measures can create option value for a firm:

Accepted Answer

Initiating multiple strategic alliances can create option value by providing flexibility and opportunities to adapt to changing market conditions, access new markets, and leverage complementary strengths.

Question 17

Research into leadership generally supports the view that complex organizations facing uncertain environments require leaders that are decisive decision makers rather than humble; empathetic individuals endowed with social and emotional intelligence.

Accepted Answer

Research actually supports the view that complex organizations facing uncertain environments require leaders that are humble; empathetic individuals endowed with social and emotional intelligence rather than only decisive decision makers.

Question 18

If competition,market turbulence,and accelerating technological change are increasing the pace at which firms' competitive advantage is eroded,to sustain competitive advantage companies need to:

Accepted Answer

The answer of If competition,market turbulence,and accelerating technological change are...

Question 19

The first 16 years of the 21st century have been characterized by unprecedented turbulence in the global economy,politics,and society.Two reasons for thinking that this turbulence may continue into the future are:

Accepted Answer

Increased global interconnectedness causes disturbances to be amplified while the declining global influence of the US implies a lack of leadership in managing these disturbances

Question 20

Digital technologies are increasing the intensity of competition in the markets for electronic hardware because they are causing:

Accepted Answer

The answer of Digital technologies are increasing the intensity of...

Quiz 16: Current Trends in Strategic Management