Question 1

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

Accepted Answer

A larger and more heterogeneous top management team can result in communication and coordination challenges, leading to difficulties in implementing strategy effectively. A smaller, more cohesive team may be better equipped to make decisions and execute plans efficiently.

Question 2

Board members with substantive expertise in the firm's core functions and businesses aids the effectiveness of the top management team.

Accepted Answer

Board members with expertise in the firm's core functions and businesses can provide valuable insights and guidance to the top management team in making strategic decisions and setting direction for the company. This can lead to increased effectiveness and performance of the management team.

Question 3

Because of the challenges top executives face, they often are more effective when they operate as top management teams.

Accepted Answer

Top executives face complex and multifaceted challenges that require collaboration and communication. By working together as a team, they can leverage each other's strengths and experiences to make better decisions and lead their organization more effectively. Research has shown that top management teams are more effective in achieving strategic goals and improving organizational performance compared to individual leaders working alone.

Question 4

According to the chapter Opening Case, Apple has a succession plan for CEO Steve Jobs and anticipates an easy transition to a new CEO.

Accepted Answer

The chapter opening case provides no information about whether Apple has a succession plan for CEO Steve Jobs or how easy or difficult a transition to a new CEO would be.

Question 5

Compared to homogeneous top management teams, heterogeneous top management teams are more likely to change their firm's strategies when necessary and to support innovation.

Accepted Answer

Studies have shown that heterogeneous top management teams, with diverse backgrounds and perspectives, are more likely to bring fresh ideas and approaches to strategic decision making and innovation, compared to teams that are more homogeneous. They are also more likely to challenge the status quo and to adapt to changing market conditions.

Question 6

External environmental factors that may affect managerial discretion include industry structure, rate of market growth, and degree to which products an be differentiated.

Accepted Answer

External environmental factors such as industry structure, rate of market growth, and degree of product differentiation can influence managerial discretion.

Question 7

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

Accepted Answer

Homogeneity can lead to groupthink and limit diversity of thought, which can stifle innovation and inhibit strategic change. Heterogeneous teams that bring diverse perspectives and backgrounds are often associated with greater creativity and adaptive problem-solving.

Question 8

Firm size, firm age, the executive's tolerance for ambiguity, and his or her commitment to strategic outcomes are all factors that may affect managerial discretion.

Accepted Answer

These factors are all known to affect managerial discretion. Firm size and age can determine the complexity and level of bureaucracy within the organization, while the executive's personality traits, such as their tolerance for ambiguity, can affect decision-making styles. Additionally, commitment to strategic outcomes can influence the extent to which executives are willing to take risks and make significant changes within the company.

Question 9

As noted in the chapter Opening Case, some companies have effective succession plans. For example, Ellen Kullman was identified as a potential CEO several years before she assumed the position at DuPont.

Accepted Answer

The statement is true. The opening case of the chapter highlights the fact that some companies like DuPont have effective succession plans. Ellen Kullman was identified as a potential CEO several years before she actually assumed the position.

Question 10

Transformational leadership is the most effective strategic leadership style.

Accepted Answer

Transformational leadership empowers and motivates employees to achieve higher levels of performance and contributes to organizational success. This leadership style focuses on vision, inspiration, and growth, and has been found to be more effective than other leadership styles in achieving long-term strategic goals.

Question 11

Typically, a vice president would NOT be considered to hold a high enough position to be included in the top management team of an organization.

Accepted Answer

A vice president is typically considered to be part of the top management team in an organization, although the specific hierarchy and titles may vary between companies.

Question 12

A CEO may gain power by holding the titles of both CEO and Chairman of the Board.

Accepted Answer

When a CEO also holds the position of Chairman of the Board, they have more control over the company's decision-making processes and can exert more power over the board of directors. This is because the Chairman of the Board is the leader of the board, who sets the agenda, and can also influence the content of the board meetings.

Question 13

The most critical ability of a strategic leader is the ability to attract and then manage human capital.

Accepted Answer

Strategic leaders need to be able to attract top talent and then effectively manage and develop their employees to achieve strategic goals. Without a strong team, it is difficult to successfully execute a strategic plan.

Question 14

The chapter Opening Case reports on a survey which found that almost 90% of boards of corporations had a succession plan for their CEO.

Accepted Answer

The statement is not accurate as it does not specify the source or context of the survey, and the percentage mentioned may not reflect the actual findings of such surveys.

Question 15

The CEO is the individual with primary responsibility for effective strategic leadership within an organization.

Accepted Answer

The CEO (Chief Executive Officer) is the highest-ranking executive in an organization and is responsible for providing strategic leadership and making major corporate decisions.

Question 16

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

Accepted Answer

Strategic leadership involves several key elements, including anticipating future trends and changes, creating a vision for the future, remaining flexible and adaptable, and empowering others to contribute to strategic change efforts. This definition accurately captures the essence of strategic leadership.

Question 17

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

Accepted Answer

Top-level managers not only determine new strategic initiatives, but also design and implement the appropriate organizational structure and reward systems to support these initiatives. This ensures that the resources, capabilities, and incentives necessary for success are in place throughout the organization.

Question 18

The CEO of YorkMark, Inc., has an exceptional amount of power in the organization. It is likely the board of directors is composed of sympathetic outside members and insiders who report to the CEO.

Accepted Answer

The statement suggests that the CEO has a significant amount of power in the organization, which may indicate that they have a strong influence over the composition of the board. The fact that the board is described as having sympathetic outside members and insiders who report to the CEO further supports this idea.

Question 19

The decision making discretion of top-level managers is determined partly by external environmental factors such as the industry structure, the industry's rate of growth, and the degree to which products can be differentiated.

Accepted Answer

External environmental factors such as industry structure, rate of growth, and product differentiation can affect the decision-making discretion of top-level managers.

Question 20

According to the chapter Opening Case, the average tenure of CEOs has been declining in the past five years.

Accepted Answer

The opening case states that the average tenure of CEOs has been declining in the past five years.

Quiz 12: Strategic Leadership