Question 1

The strategic leader emphasizes the efficient execution of a given plan.

Accepted Answer

The strategic leader focuses on setting the vision and direction for an organization, rather than just executing a plan.

Question 2

A hallmark of a great leader is knowing when and how to follow the lead of others.

Accepted Answer

A great leader recognizes the strengths and expertise of team members and understands that collaboration and allowing others to lead or contribute is essential for success. Knowing when to step back and let others take charge is a key trait of a great leader.

Question 3

Homogeneous groups tend to make better decisions because all group members have similar backgrounds and see things in similar ways.

Accepted Answer

Homogeneous groups may suffer from groupthink, which is a phenomenon where group members prioritize conformity over creativity and critical thinking. Diversity in a group can bring a range of perspectives and ideas, leading to more robust decision-making processes.

Question 4

An executive team can accommodate diverse input while acting as an integrated unit.

Accepted Answer

An effective executive team should be able to consider diverse viewpoints while still functioning as a cohesive unit working towards a common goal. This allows for a more comprehensive analysis of the situation and better decision-making. However, if the team members are unable to work together as a unit, then the diverse input will not be effectively utilized, resulting in suboptimal decisions.

Question 5

Firms seek competitive advantage through the quality of their human capital.

Accepted Answer

Human capital refers to the knowledge, skills, talents, and abilities that employees bring to the workplace. The quality of an organization's human capital can give it a competitive advantage, particularly if it is able to attract and retain talented employees who can help the firm to innovate, increase productivity, and provide better customer service. Therefore, the statement is true.

Question 6

A superordinate goal is an overarching reference point for a host of hierarchical subgoals.

Accepted Answer

A superordinate goal provides direction and unity to a complex set of interrelated subgoals. It helps to prioritize efforts and focus resources on achieving a common goal.

Question 7

The terms vision and mission may be used interchangeably.

Accepted Answer

Vision and mission are not interchangeable terms. Vision refers to a statement that outlines what an organization wants to achieve in the long term, while mission refers to a statement that outlines an organization's purpose, values, and objectives.

Question 8

Vision and mission statements are statements of organizational identity and purpose that can guide executives in making corporate decisions.

Accepted Answer

Vision and mission statements define the identity of an organization and its purpose, providing guidance for executives in making decisions that align with the organization's values and goals.

Question 9

The ambiguity of vision statements enables organizations the flexibility to change strategy or implementation tactics when it looks as if business as usual isn't going to realize the expressed vision.

Accepted Answer

Vision statements are intentionally written in an ambiguous manner, and this allows organizations to have flexibility in changing their strategy or implementation tactics if it seems like their current approach is not leading them towards realizing their vision.

Question 10

To be effective, visions and missions must be put in action in terms of specific goals and objectives for directing strategic actions.

Accepted Answer

Visions and missions provide a high-level direction and purpose for an organization, but to achieve them, specific goals and objectives must be set to guide strategic actions and decision-making. Without specific goals and objectives, visions and missions may remain abstract and difficult to implement.

Question 11

Improperly executed succession planning can undermine investor confidence and depress company stock prices.

Accepted Answer

Succession planning is crucial for ensuring the long-term success and stability of a company. If it is poorly executed or not planned at all, it can create uncertainty and instability among investors, leading to a loss of confidence in the company and ultimately lower stock prices. Therefore, it is important for companies to have a solid and well-thought-out succession plan in place to avoid any negative impact on investor confidence and stock prices.

Question 12

Mission statements generally express long-term action horizons and are ambiguous and ambitious by design.

Accepted Answer

The answer of Mission statements generally express long-term action horizons...

Question 13

Succession planning is the process of managing a well-planned and well-executed transition from one CEO to the next.

Accepted Answer

Succession planning involves identifying, developing, and preparing potential candidates for leadership positions in an organization, including the CEO role, to ensure a smooth and successful transition.

Question 14

An effective executive team relies partly on the division of labor.

Accepted Answer

Division of labor ensures that each member of the team has a specific role and tasks assigned to them, leading to better efficiency and productivity. It also eliminates any confusion or conflicts that may arise from unclear responsibilities. Therefore, an effective executive team relies partly on the division of labor.

Question 15

Vision and mission statements inform managers and employees of the firm's direction.

Accepted Answer

Vision and mission statements provide guidance and direction to managers and employees about the firm's goals and objectives.

Question 16

The mission statement is the declaration of what a firm is and its fundamental values and purposes.

Accepted Answer

The mission statement is indeed the declaration of what a firm is and its fundamental values and purposes.

Question 17

At many companies, managers track strategic progress with a tool called a balanced scorecard.

Accepted Answer

The statement is true. Many companies use the balanced scorecard as a tool to track strategic progress.

Question 18

Social capital is the money invested in business-related social functions.

Accepted Answer

Social capital refers to the networks, relationships, and trust among individuals or groups that can facilitate cooperation and benefit the collective good, rather than the money invested in business-related social functions.

Question 19

Clearly articulated vision and mission statements may be used as substitutes for strategy.

Accepted Answer

While vision and mission statements are an important part of strategic planning, they do not serve as a substitute for a well-developed strategy. A strategy outlines a detailed plan of action to achieve specific goals and objectives, while vision and mission statements express the purpose and direction of the organization.

Question 20

Vision is a simple statement or understanding of what the firm will be in the future.

Accepted Answer

This is true, vision is a statement that outlines the desired future state of the company. It helps set goals and guide decision-making towards achieving that vision.

Quiz 2: Leading Strategically Through Effective Vision and Mission