Question 1

As the business environment becomes increasingly complex, the demand for environmental decreases.

Accepted Answer

The statement is incorrect. As the business environment becomes increasingly complex, the demand for environmental sustainability actually increases. This is because businesses need to consider the long-term impact of their operations on the environment and society, in order to remain competitive and meet the expectations of customers, investors, and regulators. Additionally, there is growing awareness of the risks posed by climate change and other environmental issues, which is driving demand for sustainable solutions.

Question 2

A vision statement specifies an organization's present purpose.

Accepted Answer

A vision statement specifies an organization's future purpose or aspirations, not its present purpose.

Question 3

An organization's external environment presents strengths and weaknesses, while it internal environment presents opportunities and threats.

Accepted Answer

The statement is incorrect as an organization's external environment presents opportunities and threats, while its internal environment presents strengths and weaknesses.

Question 4

The underlying tenet of strategic management is that organizations need to formulate strategies to take advantage of external opportunities and to avoid or reduce the negative impact of external threats.

Accepted Answer

This statement accurately represents the core principle of strategic management, which is centered around identifying and responding to external factors that can impact the success of an organization. By formulating effective strategies, organizations can position themselves to succeed in the face of external challenges and capitalize on opportunities that arise.

Question 5

A basic distinction between strategic leadership and strategic management is that strategic management envisions where the organization would like to be in five to ten years while strategic leadership focuses on how to achieve the vision.

Accepted Answer

The answer of A basic distinction between strategic leadership and...

Question 6

Strategic leadership must involve managers at the top, middle, and lower levels of the organization.

Accepted Answer

Strategic leadership is not limited to top-level managers, but it involves managers at all levels of the organization. The responsibility of strategic leadership is to set the direction, create a vision, and align people and resources to achieve the goals of the organization. Hence, managers at all levels must take an active role in strategic leadership to ensure its success.

Question 7

The loss of market focus is a leading cause of business failures.

Accepted Answer

Businesses that lose sight of their target market and fail to adapt to changing customer needs and preferences are more likely to experience declining sales, decreased customer loyalty, and ultimately failure. Therefore, maintaining focus on the customer and their needs is crucial for long-term success.

Question 8

A strategic vision is a view of the future that is readily attainable.

Accepted Answer

A strategic vision is a view of the future that is desirable and achievable, but not necessarily readily attainable. It may require significant planning and effort to bring it to fruition.

Question 9

The combined analysis of the external environment and internal environment is commonly referred to as SWOT analysis.

Accepted Answer

SWOT analysis stands for Strengths, Weaknesses, Opportunities, and Threats. It combines the analysis of both internal and external factors of a company.

Question 10

Strategic leadership is a person's ability to anticipate, envision, maintain flexibility, think strategically, and work with others to initiate changes that will create a viable future for the organization.

Accepted Answer

This is the definition of strategic leadership.

Question 11

A strategic leader should concentrate decision-making power at the executive level rather than spread it throughout the organization.

Accepted Answer

The answer of A strategic leader should concentrate decision-making power...

Question 12

Environmental scanning is the first step in the strategic management process.

Accepted Answer

It is the first task in the strategy formulation step.

Question 13

The effectiveness of an organization's strategies is influenced by the degree of alignment between the organization's internal capabilities, resources, and its environmental opportunities.

Accepted Answer

The alignment between an organization's internal capabilities, resources, and its environmental opportunities plays a critical role in determining the effectiveness of its strategies. An organization that accurately assesses its capabilities and resources and aligns them with the opportunities presented by the external environment is more likely to achieve success than one that does not. Therefore, the statement is true.

Question 14

Examples of the "S" in SWOT analysis are brand name, reputation, and patents.

Accepted Answer

The "S" in SWOT analysis stands for strengths, which can include brand name, reputation, patents, and other positive attributes of a company or organization.

Question 15

Strategic leadership is the set of decisions and actions used to formulate and implement specific strategies that will achieve a competitively superior fit between the organization and its environment, so as to achieve organizational goals.

Accepted Answer

This is not the definition of the strategic leadership.

Question 16

Vision creation should be top management's responsibility.

Accepted Answer

The answer of Vision creation should be top management's responsibility....

Question 17

The first step in the strategic management process is strategy formulation.

Accepted Answer

Strategy Formulation is not the first step.

Question 18

Executive intuition is the instinctive ability to identify weak signals in the environment and respond without the benefit of concrete facts and information.

Accepted Answer

Executive intuition is often described as a gut feeling or sixth sense that allows leaders to make quick decisions based on limited information and their own experiences and insights. It is believed to be an important skill for successful executives, especially in fast-paced and complex environments.

Question 19

Leaders who rely too much on rational analysis to the exclusion of intuition tend to experience strategic leadership failures.

Accepted Answer

The answer of Leaders who rely too much on rational...

Question 20

The vision statement answers the question, "What is the organization's purpose?"

Accepted Answer

The answer of The vision statement answers the question, "What...

Quiz 11: Change Management and Strategic Leadership