Question 1

A competitive advantage is considered to be a sustained competitive advantage when the

Accepted Answer

A sustained competitive advantage is one that endures for a significant period of time, as opposed to a temporary advantage that may disappear quickly. This means that the advantage is not easily replicated by competitors and can provide long-term benefits for the firm.

Question 2

The first step in the strategic management process is

Accepted Answer

The first step in the strategic management process is to define the mission and major goals of the organization. This provides a clear direction for the organization and helps in developing strategies to achieve those goals. Once the goals are defined, the other steps such as analyzing the macroenvironment and industry environment, determining strengths and weaknesses, and deciding on a fit between the organization and environment can be taken.

Question 3

Functional managers

Accepted Answer

Functional managers are responsible for specific business functions or operations within a company or division. They oversee and execute decisions related to their specific area, such as finance, marketing, or operations. They do not have a strategic role in setting overall direction for the company, but rather focus on day-to-day operations and implementing business-level decisions made by higher-level managers.

Question 4

The principal driver(s)of shareholder value is (are)

Accepted Answer

Both profitability and profit growth are important drivers of shareholder value. Profitability ensures that a company is generating returns on invested capital and creating value for shareholders. Profit growth indicates that the company is expanding and generating future returns, which also creates value for shareholders. Market share is important, but it is not as directly linked to shareholder value as profitability and profit growth. Thus, the best choice is D, profitability and profit growth.

Question 5

Emergent strategies arise in a company with careful long-term planning.

Accepted Answer

Emergent strategies develop in response to unexpected opportunities and challenges, rather than from deliberate long-term planning.

Question 6

Which of the following is the organization's principal general manager?

Accepted Answer

The CEO (Chief Executive Officer) is the highest-ranking executive in an organization and is responsible for making major corporate decisions and managing the overall operations and resources of the company.

Question 7

Vice President Chung is responsible for executing decisions about human resources.Ms.Chung is

Accepted Answer

Ms. Chung is responsible for a specific function of the organization, which is human resources. Therefore, she is a functional manager.

Question 8

Strategic leadership is about

Accepted Answer

Strategic leadership involves effectively managing a company's strategy and creating competitive advantage. While strategy formulation and implementation are important components of strategic leadership, the overall focus is on the ability to lead and guide the organization towards long-term success. The other options provided are either too narrow or not directly related to the concept of strategic leadership.

Question 9

Strategy formulation refers to the

Accepted Answer

Strategy formulation involves analyzing an organization's internal and external environment and then selecting an appropriate strategy to achieve its objectives. It precedes strategy implementation, which is the process of putting the chosen strategy into action. Strategy formulation is a top-down planning process that may give rise to emergent strategies, but its main task is to select a strategy that fits the organization's strengths, weaknesses, opportunities, and threats. Designing organizational structures and control systems is part of strategy implementation, not formulation. Choosing a realized strategy is not part of strategy formulation either, since that implies the strategy has already been implemented.

Question 10

The great virtue of scenario planning is that managers must think outside the box to anticipate what they might do in different situations.

Accepted Answer

Scenario planning requires managers to consider multiple potential outcomes and think creatively about how to respond to each one, encouraging them to think outside the box and anticipate a range of possibilities.

Question 11

Roza Munoz is the head of Maxwell House Coffee,a division of the Kraft Foods Company.Which of the following is not likely to be one of Ms.Munoz's responsibilities?

Accepted Answer

While Roza Munoz may be involved in executing Kraft Foods' overall strategy and developing a business-level strategy for Maxwell House Coffee, it is unlikely that defining Kraft Food's mission would fall under her specific responsibilities as the head of a division. This task is typically reserved for top executives at the corporate level. Supervising functional-level managers and deciding how to compete in the industry are also likely to be among her responsibilities.

Question 12

In practice,the strategies of most organizations are probably a combination of the intended and emergent strategies.

Accepted Answer

Most organizations tend to have both intended strategies, meaning those that were purposely planned and implemented, as well as emergent strategies, which are developed in response to unforeseen circumstances and opportunities. This combination of planned and unplanned strategies can help organizations adapt to changing circumstances while also working towards their long-term goals.

Question 13

Honda redefined the U.S.motorcycle industry with a brilliantly conceived intented strategy.

Accepted Answer

Honda's success in the U.S. motorcycle market was largely due to an emergent strategy rather than a pre-conceived intended strategy. They adapted to market conditions and consumer preferences as they expanded.

Question 14

Profit growth is best measured

Accepted Answer

Profit growth is best measured over time as it provides a comprehensive view of a company's financial performance and sustainability.

Question 15

Maximizing shareholder value is

Accepted Answer

Maximizing shareholder value is the ultimate goal of profit-making companies. It means increasing the value of the company's stock as much as possible, which benefits the shareholders who own the stock. This is achieved by growing profits, increasing market share, and making other strategic decisions.

Question 16

Which of the following dimension(s)is (are)encompassed by a company's business model?

Accepted Answer

A company's business model encompasses all of these dimensions. Selecting customers and defining/differentiating product offerings are part of the company's value proposition. Determining how to produce goods and services is part of the company's operations strategy. Determining how to grow the business over time is part of the company's growth strategy.

Question 17

Given that they are developed through years of experience,rules of thumb rarely if ever lead to severe errors in the decision making process.

Accepted Answer

Rules of thumb are informal, heuristic-based guidelines that are not always foolproof and can lead to errors in decision making, particularly in complex or unfamiliar situations. While they may be developed through years of experience, they are still subject to biases and limitations, and it is important to balance them with critical thinking and data analysis.

Question 18

Within a diversified company,the responsibilities of corporate-level strategic managers include

Accepted Answer

Corporate-level strategic managers are responsible for overseeing the development of strategies for the total organization and allocating resources among its different business areas. They are also responsible for identifying potential opportunities for corporate diversification and considering the overall fit of each business unit with the company's mission and goals. Option A is a responsibility of business-level strategic managers, option B is a responsibility of functional-level managers, option C is a task that may be carried out at multiple levels of the organization, and option E is a responsibility of supply chain or purchasing managers.

Question 19

General managers are found

Accepted Answer

The answer of General managers are found
...

Question 20

Research finds that leaders who exhibit a high degree of emotional intelligence tend to be significantly less effective than those who do not.

Accepted Answer

This statement is not supported by research. In fact, research consistently shows that leaders with high emotional intelligence are more effective in their roles. Emotional intelligence allows leaders to better understand and manage their own emotions, as well as the emotions of those around them, leading to better communication, collaboration, and decision-making.

Quiz 1: Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage