Deck 13: Strategic Leadership and Knowledge Management

Question 1

Crowdsourcing is an untested method of generating ideas that should not yet be considered as a viable alternative to strong in-house creative innovation.

Answer 1

False

Question 2

A major contribution of knowledge management programs is that the electronic storage and retrieval of information makes it almost unnecessary for people to develop ideas by talking face-to-face.

Answer 2

False

Question 3

A major purpose of strategic leadership is to:

A) provide direction and inspiration in an organization.
B) help employees develop operating plans.
C) coach group members toward higher levels of effectiveness.
D) apply behavior modification throughout the organization.

Answer 3

A

Question 4

Organizational learning is facilitated when workers use political skills to make connections with others and influence them in relation to useful knowledge.

Question 5

Implementation requires executing a number of organized goals that lead toward the successful implementation of a new initiative.

Question 6

An advanced approach to knowledge management is to deliver useful information to workers just at the point when the information is needed.

Question 7

Experts believe that business leaders need to become even more analytical and results-oriented in the modern business world.

Question 8

Strategic leadership is a process of providing:

A) strategies to ambitious employees hoping to rise through the organization.
B) the direction and inspiration needed to create or sustain an organization.
C) an specific, step-by-step concept of how the firm will achieve its goals.
D) a system of leadership initiatives that will help the firm operate at lower costs.

Question 9

As a business owner, you are using the Hedgehog concept when you diversify into several unrelated businesses.

Question 10

The knowledge application component of knowledge management deals with workers improving their job activities.

Question 11

Strategic leadership is more concerned with goal setting than with inspiration.

Question 12

An example of a strategic alliance would be a train manufacturer and an airplane manufacturer working jointly to build a train that will travel without touching the rails.

Question 13

Planning is not the only important component of creating a solid business strategy.

Question 14

A central challenge for modern organizations is for leaders at every level of a company to consider the big picture.

Question 15

The business strategy of acquisition is often used to acquire new technology that a firm needs to broaden its product line.

Question 16

The purpose of the strategy of competitive advantage is to hire people away from competitors.

Question 17

An external threat in a SWOT analysis refers primarily to laws that would be broken by implementing a particular strategy.

Question 18

The knowledge creation component of knowledge management is used to spur innovation.

Question 19

The business strategy of differentiation involves making a product or service unique by offering it at an unusually low price.

Question 20

An aspect of effective knowledge management is that organization members acquire power by hoarding and acquiring knowledge.

Question 21

According to recent studies, hiring employees with global work experience give companies a stronger ability to:

A) think strategically.
B) make overseas business contacts.
C) appeal to cultures other than the one dominant at the company's base of operations.
D) save money on travel.

Question 22

According to the Hedgehog concept, a company succeeds by:

A) entering the market ahead of competition.
B) following the benchmarks set by another company.
C) entering many fields at the same time.
D) becoming very good at one thing.

Question 23

The most frequent activity in knowledge management is:

A) knowledge development.
B) knowledge application.
C) knowledge dissemination.
D) knowledge creation.

Question 24

The first-mover strategy deals with:

A) relocating a company to a more profitable market.
B) getting to the market first.
C) being the first to imitate a product.
D) being the first company to acquire a competitor.

Question 25

The problem with the authority for important strategic decisions resting only with the CEO of a company is that:

A) CEOs often make too much money and are thus complacent.
B) the pace of the modern business environment is too much for one mind to comprehend.
C) CEOs are rarely revolutionary thinkers.
D) personal biases and other factors can cloud a single executive's opinion.

Question 26

A retailer targeting low income groups is an example of the _____ strategy.

A) imitation
B) cost-leadership
C) focus
D) first-mover

Question 27

The purpose of a SWOT analysis is to assess:

A) strengths, weaknesses, opportunities, and threats.
B) strategies, weaknesses, options, and time.
C) satisfactions, worst options, and trade-offs.
D) successes, winners, and ominous threats.

Question 28

To achieve best results, advanced technology for knowledge management should be:

A) centralized in a department headed by the chief knowledge officer.
B) combined with an organizational culture that values knowledge management.
C) installed on every computer in a company.
D) installed first in staff departments and then in line departments.

Question 29

A company with a strategy of high quality typically:

A) focuses on quality products for high-end consumers.
B) concentrates its efforts on consumer products.
C) offers the lowest prices.
D) supplements quality with other points of differentiation.

Question 30

A key part of knowledge management in organizations is:

A) selecting intelligent people for key positions.
B) spying on what competitors are doing.
C) conducting training programs.
D) sharing information systematically.

Question 31

A powerful strategy for gaining competitive advantage is to:

A) hire talented, well-motivated people throughout the firm.
B) develop the talents among the least talented employees.
C) hire the occasional candidate with a poor employment history to be socially responsible.
D) promote employees on the basis of seniority to encourage company loyalty.

Question 32

The founders of great companies typically use intuition to formulate:

A) a great purpose.
B) an inspirational business name.
C) a new understanding of workflow.
D) a novel way of improving working conditions.

Question 33

The internal weaknesses in a SWOT analysis include factors such as:

A) deficiencies in the current management team.
B) risks of pursuing a particular course of action.
C) cash flow problems the company is experiencing.
D) problems associated with maintaining the status quo.

Question 34

After the formulation of an innovative vision, a key part of leadership effectiveness is the strategy behind:

A) implementing that vision.
B) disciplining employees who do not share that vision.
C) comparing that vision against those of competitors to ensure uniqueness.
D) crowdsourcing to discover if the decision needs to be altered.

Question 35

A company engages in the brand-leadership strategy when it:

A) imitates leading brands.
B) diversifies into several successful brands.
C) develops the reputation of its brand name.
D) develops products that other companies do not offer.

Question 36

Which one of the following is NOT one of the three components of knowledge management?

A) Knowledge creation
B) Knowledge hoarding
C) Knowledge dissemination
D) Knowledge application

Question 37

A strategically minded worker at any level would be likely to think:

A) "How can I finish this project as efficiently as possible?"
B) "What strategy should I use to benefit my immediate team?"
C) "What small tasks can I accomplish first before tackling the big picture?"
D) "How does what I am doing right now support corporate strategy?"

Question 38

The recommended approach for implementing strategy is to include which group in every conversation about strategy?

A) Lowest-level workers
B) The sales organization
C) Human resources
D) Customers who are already satisfied

Question 39

Nathan is the CEO of a large business firm whose sales are declining rapidly. A superior act of strategic leadership would be for him to:

A) give the company a new strategic direction.
B) wait for the business cycle to become favorable again.
C) persist with the existing strategy with minor changes.
D) hire an innovative advertising agency to help improve sales.

Question 40

Gucci was able to improve the downward trajectory of its business by:

A) diversifying and putting it name on many new products.
B) focusing on quality and the highest possible price point.
C) revamping its business strategy with a human touch.
D) improving organizational efficiency.

Question 41

Caiden Inc., a leader in the apparel industry, wants to infuse change and add variety to its existing collection. The company makes extensive use of social media to receive feedback, suggestions, and ideas from existing and potential customers. This is an example of:​

A) ​knowledge hierarchy.
B) ​knowledge application.
C) ​knowledge dissemination.
D) ​knowledge creation.

Question 42

​Which of the following is a contributing factor to team learning?

A) ​Brand leadership
B) ​Cost leadership
C) ​Personal mastery of the job
D) ​Exploitative innovation

Question 43

A major leadership initiative for enhancing a learning organization is to:

A) establish supervisory training programs.
B) get workers to focus almost entirely on their own work.
C) create a vision to be shared mostly by the top-management team.
D) create a strategic intent to learn.

Question 44

Lorenzo Inc., a pharmaceutical company, has decided to purchase two major biotechnology research firms in order expand its operations and enhance its market presence. This is an example of:​

A) ​growth through acquisition.
B) ​product diversification.
C) ​a strategic alliance.
D) ​a first-mover strategy.

Question 45

Derek, the CEO of Kellen Inc., approaches his management consultant to ask for his suggestions on how to improve his leadership skills to sustain and improve organizational performance. If you were the management consultant and believed that Derek was capable of implementing a servant leadership style, what would you suggest he do?

Question 46

Desmond Inc., a high-end automobile company, aims to develop the firm into one that consistently endeavors to create new knowledge and innovations. To gain more insights into this strategy, the CEO approaches the regional marketing head of the company to ask for his advice. If you were the marketing head, what advice would you provide to the CEO?
​

Question 47

Maddox Corp., a smartphone manufacturer, in the initial years of its entry into the market, adopted a deliberate strategy of quickly capturing a sizeable portion of the market share by lowering the selling price of its smartphones. Which business strategy has the company adopted in the given example?

A) ​First-mover strategy
B) Imitation strategy
C) ​Focus strategy
D) Cost-leadership strategy

Question 48

In the past several years, Dawson Inc., a consumer durables company, has been focusing only on a particular region due to its forecasted potential for the durables industry. Due to recessionary conditions in the region, the sales of Dawson's products have been hit hard, resulting in severe losses. Which of the following strategies could prevent such a scenario?

A) Brand leadership
B) First-mover strategy
C) Global diversification
D) Niche strategy

Question 49

​Which of the following is a key characteristic of servant leadership?

A) ​Focus on niche groups
B) ​High power distance
C) ​Hierarchical boundaries
D) ​Caring for people

Question 50

A major responsibility of a chief knowledge officer is to:

A) systematically collect information.
B) encourage workers to track down coworkers who have the information they need.
C) develop and deliver classroom-based training.
D) develop and deliver online training.

Question 51

Peter and his teammates engage in action learning when they:

A) learn at a fast pace.
B) bring company-relevant cases into the classroom.
C) use the Internet as a primary source of learning.
D) learn while attacking a significant organizational problem.

Question 52

Felix Inc., a real estate company, wants to increase efficiency at work and improve customer experience. In pursuit of this goal, it creates an online portal that could store relevant information on various aspects in a systematic manner. Users can easily access required information. Which of the following captures the above mentioned scenario?​

A) ​Knowledge hierarchy
B) ​Knowledge dissemination
C) ​Knowledge creation
D) ​Knowledge application

Question 53

​Which of the following is true of the cost-leadership strategy?

A) ​Competitors can easily enter the field.
B) ​Profits can be maintained at a constant level in the long-run.
C) ​Brand loyalty becomes more intense.
D) ​Advertisement costs will decrease.

Question 54

Amber Corp. and Kyler Corp., two major technology firms, have decided to operate together in specific areas such as distribution and marketing for better utilization of the expertise available in both firms. This can be referred to as:

A) an imitation.
B) a strategic alliance.
C) a differentiation strategy.
D) a cost-leadership strategy.

Question 55

Daisy Inc. enjoys a monopoly in the procurement and distribution of coffee beans. The company undertakes a strategic analysis of its market position. A local daily newspaper has published a report stating that a global coffee beans producer is entering the region to set up retail stores in order to increase its efficiency in distribution. Daisy Inc. is most likely to include this fact under which of the following components of a SWOT analysis?

A) External opportunities
B) External threats
C) Internal strengths
D) Internal weaknesses

Question 56

​Simon Corp., a global financial services firm, has entered a region whose per capita income is very high. To make its financial products more attractive, it introduces new schemes that specifically cater to high income groups. This is an example of:

A) ​a strategic alliance.
B) ​a cost-leadership strategy.
C) ​a focus strategy.
D) ​an acquisition strategy.

Question 57

Weston Corp., a dairy processing company, is located close to the local dairy farms from where it procures its daily inputs. In the context of SWOT analysis, under which of the following components can this fact be included in the company's strategic planning analysis?

A) External opportunities
B) External threats
C) Internal strengths
D) Internal weaknesses

Question 58

Jett Inc., an automobile manufacturer, has decided to create an electric vehicle that, while not as efficient as its market competitors, can be sold a much reduced price. What strategy is Jett implementing?

A) Focus strategy
B) Imitation strategy
C) Differentiation strategy
D) Green strategy.

Question 59

Bradley Inc., a cell phone manufacturing company, has been experiencing a downward trend in its sales and profit in recent times. The CEO of Bradley approaches its marketing advisor to suggest ideas and ways to regain market share and sales. If you were the marketing advisor, what would you suggest to improve the company's prospects?

Question 60

Arthur is the CEO of an export company. Over the years, the company has been highly successful at delivering consistent results. Several analysts attribute this to Arthur's leadership style, which allows his subordinates to take up leadership roles and deliver efficient results. Which of the following best describes Arthur's leadership style?

A) Servant leadership
B) Cost leadership
C) Brand leadership
D) Transactional leadership