Deck 13: Strategic Leadership and Knowledge Management

Question 1

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

Answer 1

False
The purpose of analyzing external threats is to assess what possible negative impact socioeconomic, political, environmental, and demographic factors may have on the organization. See "Conducting a SWOT Analysis."

Question 2

A vision should point to which activities an organization should take on and which activities it should avoid.

Answer 2

True
James R. Lucas, a specialist in vision formulation, writes that a carefully considered and articulated vision helps us know who we are and who we are not. The vision also points to what we do successfully and what we do not, which activities we should take on and which we should avoid. See "The Nature of Strategic Leadership."

Question 3

A recommended method of achieving revolutionary thinking is for a firm to engage in four types of incrementalism at the same time.

Answer 3

False
To be an industry leader, a company's leaders must think in revolutionary terms. Revolutionary companies such as Amazon.com and Netflix create the rules for others to follow. See "The Nature of Strategic Leadership."

Question 4

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

Question 5

A key characteristic of strategic thinking is that it involves high-level cognitive activity on the part of the leader.

Question 6

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

Question 7

An organization's strategy is its:

A) method for achieving profit targets.
B) overall concept for achieving its objectives.
C) master plan for conducting operations.
D) analysis of the environment.

Question 8

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

Question 9

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.

Question 10

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

Question 11

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

Question 12

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

Question 13

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.

Question 14

An example of contrarian thinking on the part of the owner of a pizza chain might be, "Why bother diversifying into subs and calzones like most of our competition? Let's just focus on selling excellent pizza."

Question 15

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

Question 16

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 17

Asking what-if questions is part of formulating strategies.

Question 18

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

Question 19

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

Question 20

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

Question 21

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

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

Question 22

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 23

Which of the following is least characteristic of strategic leadership?

A) High-level cognitive ability on the part of the leader
B) Anticipating and creating a future
C) Revolutionary thinking
D) The leader as the primary source of input for strategy formulation

Question 24

When a company is founded, a major strategic task of the founder is to:

A) begin hiring the necessary workers.
B) get all the legal work done.
C) obtain funds for the company.
D) define the purpose of the company.

Question 25

A major aspect of direction setting by the leader is to:

A) anticipate and create a future for the firm.
B) implement a goal-setting system.
C) practice transactional leadership.
D) carefully review past financial results.

Question 26

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 27

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 28

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 29

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 30

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 31

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 32

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 33

An important characteristic of a strategy developed through revolutionary and contrarian thinking is that it:

A) preserves the status quo.
B) moves quality up one notch.
C) seriously challenges the status quo.
D) improves organizational efficiency.

Question 34

The most frequent activity in knowledge management is:

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

Question 35

A carefully considered vision statement:

A) helps us know who we are and who we are not.
B) specifies which short-range goals are achievable.
C) deals with the past, present, and future.
D) defines reporting relationships throughout the organization.

Question 36

In relation to an organization, systems thinking refers to:

A) understanding how the organization interacts with the environment.
B) eliminating waste throughout the organizational system.
C) understanding how to motivate a diverse group of employees.
D) figuring out how people can interact successfully with machinery.

Question 37

The recommended approach for strategy formulation by a leader is for him or her to:

A) involve people in making only decisions that are less critical.
B) inspire a large number of people to help achieve organizational purposes.
C) rely heavily on mathematical forecasts of the future.
D) delegate the task to the company planning department.

Question 38

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 39

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 40

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 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

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 43

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, what would you suggest to Derek?

Question 44

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 has been hit hard and resulted 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 45

Arthur is the CEO of an export company. Over the years, the company has been highly successful and delivering consistent results. Several analysts attribute this to Arthur's leadership style that allowed 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

Question 46

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 47

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 48

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 49

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 50

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 51

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 52

Jett Inc., an automobile manufacturer, uses solar energy to run about 30 percent of the automobile manufacturing operations. Jett's initiative can be referred to as:

A) a strategic alliance.
B) a green strategy.
C) a hedgehog concept.
D) transactional leadership.

Question 53

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 54

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 55

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 56

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 57

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 the the firms. This can be referred to as:

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

Question 58

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 59

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 60

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.