Ch2 Test Questions & Answers Strategic Leadership Managing

Student name:__________

1. Which of the following statements about product-oriented visions is true?
   1. ______

They tend to force managers to take a myopic view of the competitive landscape.

They allow firms to set goals that focus primarily on filling the organization’s needs.

They allow companies to effectively adapt to changing environments.

They define a business in terms of providing solutions to customers.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 1 Easy
Learning Objective : 02-05 Evaluate the strategic implications of product-oriented and customer-orien
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 42 Which of the following statements about prod...

1. Chandani is the founder of a firm producing self-driving vehicles. Because the industry is so new and chaotic, Chandani favors a top-down strategic planning approach in which she exerts strong control over all aspects of the business, from product development and design to manufacturing and marketing. What is wrong with this scenario?
   1. ______

The top-down approach leaves other employees uncertain about their roles in the company.

The top-down approach can only be applied to specific business functions.

The self-driving vehicle industry is changing too much for the top-down approach to be effective.

The top-down approach is expensive to maintain, leaving the company at a competitive disadvantage.

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 2 Medium
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Top-Down Strategic Planning and Scenario Planning
Source : Chapter 02 Test Bank > MC Qu. 83 Chadani is the founder of a firm producing self...

1. Chris is the manager of a graphic design firm, and he relies on a top-down strategic management approach to maintain tight control over the activities of his employees. The company has recently started to lose market share to its more innovative competitors, and Chris wants to encourage his employees to start contributing to the strategy formulation process to make the company more competitive. Which of the following steps should Chris take?
   1. ______

Take an extended vacation and see how the business naturally reorganizes itself in his absence.

Allow employees to take whatever approach they feel is appropriate when dealing with customers.

Schedule individual meetings with employees and demand that they come prepared with five ideas.

Designate Friday afternoons as time for employees to pursue outside interests loosely related to the business.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Strategic Approaches to Winning a Sustainable Competitive Advantage
Source : Chapter 02 Test Bank > MC Qu. 94 Chris is the manager of a graphic design fir...

1. EverMart Inc. is a large company that sells a variety of products such as cosmetics, jewelry, frozen foods, navigation electronics, and airplanes. Apart from this, the company also has a strong presence in the service industry through its chain of dance studios, casinos, and nightclubs. Each of its product divisions operates as an individual business and is responsible for its own profits and losses. Thus, these product divisions under EverMart can be referred to as
   1. ______

strategic business units.

limited liability companies.

functional departments.

corporations.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : Strategic Approaches to Winning a Sustainable Competitive Advantage
Source : Chapter 02 Test Bank > MC Qu. 73 EverMart Inc. is a large company that...

1. Which of the following is an example of a business acting upon an organizational core value?
   1. ______

Emerald Autos finances research for developing more powerful engines.

Emerald Autos launches an ad campaign that promotes the company as being environmentally friendly.

Emerald Autos reduces engine emissions below federal guidelines to reduce pollution.

Emerald Autos lowers its retail prices to gain an advantage over its closest competitor.

Question Details
AACSB : Ethics
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-06 Justify why anchoring a firm in ethical core values is essential for long-
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 47 Which of the following is an example of a bu...

1. Describe devil’s advocacy and dialectic inquiry as frameworks for strategic decision making.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-10 Compare and contrast devil’s advocacy and dialectic inquiry as frame
Topic : Decision Making
Source : Chapter 02 Test Bank > SA Qu. 130 Describe devil’s advocacy and dialectic...

1. What does the upper-echelons theory propagate?

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-02 Outline how you can become a strategic leader.
Topic : Top Management Teams
Source : Chapter 02 Test Bank > SA Qu. 112 What does the upper-echelons theory propagat...

1. Constraints such as time or the brain’s inability to process large amounts of data that prevent us from appropriately processing and evaluating each piece of information we encounter are known as
   1. ______

strategic limitations.

cognitive limitations.

confirmation biases.

cognitive biases.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-09 Describe and evaluate the two distinct modes of decision making.
Topic : Decision Making
Source : Chapter 02 Test Bank > MC Qu. 105 Constraints such as time or the brain’s...

1. Marta and Qing both serve as SBU managers of their divisions. They have both been asked by the CEO to generate two different courses of action for a new product launch. This strategic decision-making technique can be described as
   1. ______

strategic intent.

group think.

dialectic inquiry.

devil’s advocacy decision framework.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-09 Describe and evaluate the two distinct modes of decision making.
Topic : Decision Making
Source : Chapter 02 Test Bank > MC Qu. 26 Marta and Qing both serve as SBU managers of ...

1. Which of the following summarizes the difference between a firm’s vision and mission?
   1. ______

A vision states the ethical values of a firm; a mission states the monetary goals of a firm.

A vision states what a firm wants to accomplish; a mission states how a firm plans to accomplish this vision.

A vision states how much a firm wants to earn; a mission states how these earnings will be accomplished.

A vision states the management values of a firm; a mission states the values of the other workers.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-04 Describe the roles of vision, mission, and values in a firm's strategy.
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 37 Which of the following summarizes the differ...

1. Homestyle is a company that manufactures and sells home furniture. It sources its materials from another country to keep costs low. An assembly line worker in one of its manufacturing centers noticed that there was increasing concern regarding the potential toxicity of the flame-resistant materials used in the furniture. In response, she compiled a list of nontoxic flame-resistant materials that the company could use. When her manager learned about this, he presented the prospect and got it approved from the top management team. This is an example of the
   1. ______

reverse engineering process.

top-down strategic planning approach.

scenario planning process.

planned emergence approach.

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Strategic Approaches to Winning a Sustainable Competitive Advantage
Source : Chapter 02 Test Bank > MC Qu. 92 Homestyle is a company that manufactures and...

1. Nuke It is a major manufacturer of microwave ovens. Which of the following statements will best inspire the organization with a shared vision for Nuke It?
   1. ______

At Nuke It, employees at all levels are motivated to make the best microwave ovens on the market.

At Nuke It, employees want to create a cheaper microwave oven than our closest competitor does.

At Nuke It, employees know that they will make a competitive wage.

At Nuke It, employees can trust our managers to steer the company.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 02-04 Describe the roles of vision, mission, and values in a firm's strategy.
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 36 Nuke It is a major manufacturer of microwave...

1. A vision describes in broad, inspirational terms what an organization hopes to accomplish in the future.
   1. ______

• true
• false

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 1 Easy
Learning Objective : 02-04 Describe the roles of vision, mission, and values in a firm's strategy.
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > TF Qu. 12 A vision describes in broad, inspirational t...

1. Malik has been an employee with Terrific Tools for 17 years. He started with an entry-level job, and today he is a manager of an entire product division. Over the years, Malik has acquired a reputation for doing the right things in the company. Hence, as an efficient leader, he is capable of effectively communicating and motivating his subordinates to work toward the company’s vision and mission. According to the Level-5 leadership pyramid, which is the highest level of leadership Malik has reached so far?
   1. ______

Level 3

Level 4

Level 5

Level 2

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 02-02 Outline how you can become a strategic leader.
Topic : Top Management Teams
Source : Chapter 02 Test Bank > MC Qu. 59 Malik has been an employee with Terrific...

1. Why is addressing strategic inflection points a difficult leadership challenge? Describe two difficulties faced by leaders confronted with this challenge.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-08 Explain the causes of strategic dissonance and how to navigate strategic i
Topic : Strategy and the Strategic Management Process
Source : Chapter 02 Test Bank > SA Qu. 127 Why is addressing strategic inflection...

1. A(n)________ is best described as the strategic option that top managers decide most closely matches the current reality and which is then executed.
   1. ______

executive summary

dominant strategic plan

bottom-up emergent strategy

realized strategy

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : The Strategic Role of Managers in Strategy Formulation and Implementation
Source : Chapter 02 Test Bank > MC Qu. 85 A(n) ________ is best described as the strategi...

1. TransNational Inc. is a large conglomerate that operates in 17 different countries. The corporate executives at the headquarters have decided that the company’s objective for the next two years will be to increase its customer equity, or the value of potential future revenues generated by all its customers in a lifetime. Based on this guideline received from the top management team, the product leader of the home audio division has decided to adopt a cost-leadership strategy in all of his 17 units. Thus, the decision made by the product leader best illustrates a________ strategy.
   1. ______

grand

business

corporate

functional

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : The Strategic Role of Managers in Strategy Formulation and Implementation
Source : Chapter 02 Test Bank > MC Qu. 75 TransNational Inc. is a large conglomerate...

1. Two product development teams at NextTech Inc. are using a devil’s advocacy decision framework to make strategic decisions regarding rollout of the company’s new products. Team 1 favors introducing new products only in the spring and fall. Team 2 questions the assumptions behind the timing of product rollout and points out things that might go wrong. What will happen in the final step of the process?
   1. ______

The teams will agree on a course of action.

The teams will critique each other’s plans.

A synthesis of the two plans will be adopted.

Each team will pursue one of the options.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 02-10 Compare and contrast devil’s advocacy and dialectic inquiry as frame
Topic : Decision Making
Source : Chapter 02 Test Bank > MC Qu. 107 Two product development teams at...

1. The former CEO of Sam’s Club, a division with its own profit-and-loss responsibility, Rosalind Brewer, reported to Walmart’s CEO, C. Douglas McMillon, who as corporate executive oversees Walmart’s entire operations. Sam’s Club, therefore, is a________ of Walmart.
   1. ______

branch office

strategic business unit

corporate partner

house brand manufacturer

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : Strategic Approaches to Winning a Sustainable Competitive Advantage
Source : Chapter 02 Test Bank > MC Qu. 64 The former CEO of Sam’s Club, a...

1. What functions do strong ethical values serve?

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-06 Justify why anchoring a firm in ethical core values is essential for long-
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > SA Qu. 125 What functions do strong ethical values serv...

1. Which of the following is an assumption that top-down strategic planning rests on?
   1. ______

Decisions made in the past do not affect our future.

Change is constant.

Time cannot be compressed at will.

We can predict the future from the past.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Top-Down Strategic Planning and Scenario Planning
Source : Chapter 02 Test Bank > MC Qu. 82 Which of the following is an assumption that...

1. The CEO of an app company encourages the firm's employees to suggest possible apps that could be useful in their favorite activities. One of the firm's software designers is inspired by her love of knitting to propose an app that will allow users to photograph an item of clothing, enter their measurements, and then receive a customized knitting pattern. The firm's policy of asking for employee product ideas is best described as a
   1. ______

corrective action.

supply chain.

value chain.

strategic initiative.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Strategic Approaches to Winning a Sustainable Competitive Advantage
Source : Chapter 02 Test Bank > MC Qu. 90 The CEO of an app company encourages...

1. Strategic commitments are actions that are
   1. ______

costly, long-term-oriented, and difficult to reverse.

costly, short-term-oriented, and easy to reverse.

inexpensive, short-term-oriented, and easy to reverse.

inexpensive, long-term-oriented, and difficult to reverse.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-04 Describe the roles of vision, mission, and values in a firm's strategy.
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 35 Strategic commitments are actions that are

1. Define strategic leadership.

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-01 Explain the role of strategic leaders and what they do.
Topic : The Strategic Role of Managers in Strategy Formulation and Implementation
Source : Chapter 02 Test Bank > SA Qu. 110 Define strategic leadership.

1. First Pharma Inc. and GeoVax Inc. are two competing firms in the pharmaceutical industry. While First Pharma Inc.’s vision is “to be a preeminent drug manufacturer in the industry,” GeoVax Inc.’s vision is “to make good health a reality for everyone around the world.” Which of the following is an implication of these different visions?
   1. ______

GeoVax Inc. will be more flexible than First Pharma Inc. when adapting to changing environments.

First Pharma Inc.’s vision is more long-term and futuristic than GeoVax Inc.’s vision.

First Pharma Inc. is more likely to have a positive relationship between its vision and firm performance than GeoVax Inc.

GeoVax Inc.’s vision is more product-oriented than the vision of First Pharma Inc.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 02-05 Evaluate the strategic implications of product-oriented and customer-orien
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 43 First Pharma Inc. and GeoVax Inc. are two co...

1. Differentiate between a firm’s intended, realized, and emergent strategies.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 2 Medium
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Methods of Strategy Implementation
Source : Chapter 02 Test Bank > SA Qu. 119 Differentiate between a firm’s intende...

1. Colton is exploring multiple suppliers in order to find the best price. However, instead of calling all eight potential suppliers, he only reaches out to the first three and bases his selection on those instead of contacting all suppliers. Colton's action best describes the concept of
   1. ______

optimal decision making.

the illusion of control.

satisficing.

escalating commitment.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-09 Describe and evaluate the two distinct modes of decision making.
Topic : Decision Making
Source : Chapter 02 Test Bank > MC Qu. 104 Colton is exploring multiple suppliers...

1. What makes scenario planning more flexible than top-down strategic planning?

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Top-Down Strategic Planning and Scenario Planning
Source : Chapter 02 Test Bank > SA Qu. 117 What makes scenario planning more flexible t...

1. Strategic thinking is different from strategic planning in that
   1. ______

strategic thinking is regimented and confining, whereas strategic planning is more flexible.

strategic thinking can create an illusion of control, whereas strategic planning avoids this.

strategic thinking includes all types of information sources while strategic planning does not.

strategic thinking relies more on hard data and statistical analysis than strategic planning.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : The Strategic Role of Managers in Strategy Formulation and Implementation
Source : Chapter 02 Test Bank > MC Qu. 86 Strategic thinking is different from strateg...

1. Define cognitive biases, and then give an example of a cognitive bias and how it can affect decision making.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-09 Describe and evaluate the two distinct modes of decision making.
Topic : Decision Making
Source : Chapter 02 Test Bank > SA Qu. 128 Define cognitive biases, and then give...

1. Why is it better for firms to keep their vision statements customer-oriented rather than product-oriented?
   1. ______

Customer-oriented visions tend to have a more short-range view of changing environments.

Customer-oriented visions tend to have a more myopic view of changing environments.

Customer-oriented visions tend to be more stable when dealing with changing environments.

Customer-oriented visions tend to be more flexible when adapting to changing environments.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-05 Evaluate the strategic implications of product-oriented and customer-orien
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 41 Why is it better for firms to keep their vis...

1. To support the rise of emergent strategies, an organization should
   1. ______

limit serendipity that is in the form of random events and accidental happenstances.

centralize decision making and all other activities.

empower lower-level employees to take up autonomous actions.

rely solely on hard data to formulate strategies.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Strategic Approaches to Winning a Sustainable Competitive Advantage
Source : Chapter 02 Test Bank > MC Qu. 93 To support the rise of emergent strategies, ...

1. What is the importance of the dissonance gap when a firm encounters a strategic inflection point?
   1. ______

The greater the dissonance gap, the more difficult it is for the organization to change course.

It measures the lag between the strategic inflection point and its negative financial impact.

It measures the length of time organizational leaders have to respond to the strategic inflection point.

The smaller the dissonance gap, the more likely the firm will experience self-reinforcing failure.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-08 Explain the causes of strategic dissonance and how to navigate strategic i
Topic : Strategy and the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 100 What is the importance of the dissonance...

1. What are the arguments against top-down strategic planning and scenario planning?

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Top-Down Strategic Planning and Scenario Planning
Source : Chapter 02 Test Bank > SA Qu. 118 What are the arguments against top-down stra...

1. Core values provide ethical guidelines for how individual employees will behave.
   1. ______

• true
• false

Question Details
AACSB : Ethics
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 2 Medium
Learning Objective : 02-06 Justify why anchoring a firm in ethical core values is essential for long-
Topic : Leaders Role in Establishing a Firm's Ethical Climate
Source : Chapter 02 Test Bank > TF Qu. 08 Core values provide ethical guidelines for h...

1. The process that describes the method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage is called
   1. ______

strategic process.

strategic planning.

strategic management.

strategic technology.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : Strategy and the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 21 The process that describes the method by whi...

1. Understanding the Resource Allocation Process (RAP) will have large effects on shaping a firm’s realized strategy. Which of the following is an example of such an allocation of resources?
   1. ______

3M's discovery that led to Post-it Notes

Intel’s rule to “maximize margin-per-wafer-start”

Teach for America’s mission statement

Starbucks’ launch of iced drinks

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Methods of Strategy Implementation
Source : Chapter 02 Test Bank > MC Qu. 95 Understanding the Resource Allocation Proces...

1. How do strong ethical values benefit a firm?
   1. ______

They provide strong public relations, which can either benefit or hinder competitive advantage.

They emphasize benefiting stakeholders by significantly increasing profit.

They lay the groundwork for a quick increase of profits and short-term success.

They serve as the guardrails put in place to keep the company on track when pursuing its mission.

Question Details
AACSB : Ethics
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-06 Justify why anchoring a firm in ethical core values is essential for long-
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 48 How do strong ethical values benefit a firm?

1. Corporate executives at OverFlight Inc. decide to compete in the remote-control drone industry by equipping their drones with the best video cameras available. By doing this, they completed part of their________ strategy.
   1. ______

corporate

business

implementation

functional

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : Strategy and the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 63 Corporate executives at OverFlight Inc. decide...

1. A firm’s resource-allocation process (RAP) has very little effect on its realized strategy.
   1. ______

• true
• false

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Methods of Strategy Implementation
Source : Chapter 02 Test Bank > TF Qu. 07 A firm’s resource-allocation process (...

1. Which of the following answers best explains why addressing strategic inflection points is a difficult leadership challenge?
   1. ______

Top-management opinions have coalesced around a leader without individuals critically evaluating and challenging the leader’s opinions and assumptions.

It requires an approach derived from military strategy in which all strategic intelligence and decision-making responsibilities are concentrated in the office of the CEO.

It calls for a blended strategy in which organizational structure and systems allow both top-down and bottom-up strategic initiatives to emerge for evaluation and coordination.

It requires fundamental changes to the firm’s strategy, and leaders are often late in comprehending that their belief system is no longer a good fit with the new circumstances.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-08 Explain the causes of strategic dissonance and how to navigate strategic i
Topic : Strategy and the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 102 Which of the following answers best...

1. At a strategic inflection point, the more the convictions of strategic leaders deviate from reality,
   1. ______

the smaller the dissonance gap.

the easier it is to capitalize on the opportunity.

the more difficult it is to change course.

the more likely it is the firm will be successful.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-08 Explain the causes of strategic dissonance and how to navigate strategic i
Topic : Strategy and the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 103 At a strategic inflection point, the...

1. After carefully assessing the market potential for solar-powered mobile devices, the top-level executives of We Know Inc. decided that the company would be launching a line of solar-powered tablets within the next two years. This would mean that the tablet division would need to immediately begin research and development efforts. Which of the following strategies in the planned emergence model does this best illustrate?
   1. ______

intended strategy

emergent strategy

unrealized strategy

tactical strategy

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Methods of Strategy Implementation
Source : Chapter 02 Test Bank > MC Qu. 87 After carefully assessing the market potenti...

1. Progress Apparel’s core value statement reads we will ensure our clothing is made with the highest respect toward human rights and environmental protection. Which of the following actions exemplifies how Progress’s core values drive its strategic decision making?
   1. ______

introducing an online customer service unit to keep customers happy

investing in more efficient machinery to reduce costs and lower prices for consumers

demanding that textile suppliers pay livable wages and maintain safe production facilities

purchasing a full-page advertisement in a major newspaper touting the company’s values

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-06 Justify why anchoring a firm in ethical core values is essential for long-
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 49 Progress Apparel’s core value statemen...

1. Friendly’s was a popular restaurant chain that served breakfast all day and specialized in classic, homestyle meals. This menu attracted customers of all ages, from retirees to families with young children. Greta Friend, the CEO of the company, wanted to increase profits, so she instructed her executive team to update the menu, refashion the décor, and appeal to upscale professionals. Knowing her success at building the Friendly’s brand, the team trusted her ability to define Friendly’s strategy and praised her innovative concepts for updating the brand. Among the changes, the new menu replaced the all-day breakfast with alcoholic drink specials, and metal bistro tables replaced the cozy, high-backed booths. Sales decreased dramatically after the innovations were introduced, and many longtime customers stopped coming to the restaurant. What cognitive bias led the management team into making these decision-making errors?
   1. ______

reason by analogy

groupthink

escalation of commitment

confirmation bias

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 02-09 Describe and evaluate the two distinct modes of decision making.
Topic : Decision Making
Source : Chapter 02 Test Bank > MC Qu. 106 Friendly’s was a popular restaurant chain...

1. Which of the following strategies best illustrates a generic business strategy?
   1. ______

a cost-cutting strategy that corporate executives in the headquarters want all business units of a large conglomerate to implement

a decision to computerize a firm’s database in order to improve customer service

a decision to niche market the jewelry sold by a company while the apparel division under the same company sells its products through mass marketing

a strategy to use monetary incentives to motivate employees working on a project

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : The Strategic Role of Managers in Strategy Formulation and Implementation
Source : Chapter 02 Test Bank > MC Qu. 74 Which of the following strategies best...

1. Total Coverage, an insurance brokerage firm, has experienced a 6 percent decline in revenues in consecutive quarters. To lower operating costs, managers reduced the customer service staff from 20 employees to 13. Management also enlisted the remaining employees to help produce a new company vision: to give customers of all budgets a customized package of policies to meet all their insurance needs. What is wrong with this scenario?
   1. ______

Total Coverage’s vision is not aspirational.

Total Coverage’s vision is not customer-oriented.

Total Coverage’s organizational structures do not align with the vision.

Internal stakeholders were not invested in defining the vision.

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 02-05 Evaluate the strategic implications of product-oriented and customer-orien
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 46 Total Coverage, an insurance brokerage firm...

1. As the CEO of a conglomerate, Sarah exhibited her strong commitment toward the company’s core value that customers’ well-being is more important than profit when she convinced the board of directors to liquidate the company’s pesticide subsidiary. The pesticide brand sold by her company was a major revenue earner in lesser-developed nations, but studies indicate that it is a carcinogen. Sarah persuaded the board that the company had to be responsible toward society. In this scenario, Sarah has demonstrated
   1. ______

strategic leadership.

individualism.

Machiavellianism.

intrapreneurship.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 02-01 Explain the role of strategic leaders and what they do.
Topic : The Strategic Role of Managers in Strategy Formulation and Implementation
Source : Chapter 02 Test Bank > MC Qu. 54 As the CEO of a conglomerate, Sarah...

1. Which of the following is a decision framework in which two teams each generate a detailed but alternate plan of action, with a goal, if feasible, of achieving a synthesis between the two plans?
   1. ______

devil’s advocacy

dialectic inquiry

decision tree

DACI model

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-10 Compare and contrast devil’s advocacy and dialectic inquiry as frame
Topic : Decision Making
Source : Chapter 02 Test Bank > MC Qu. 109 Which of the following is a decision...

1. The CEO of EveryCar was the child of parents who had difficulty making enough money to support their family. As a result, he and his siblings did not have access to many advantages that children from wealthier families had. This CEO, therefore, emphasized making affordable, low-maintenance vehicles that could be bought by low-income households. Which of the following does this example demonstrate?
   1. ______

Level-5 leadership pyramid

scenario planning

dominant strategic planning

upper-echelons theory

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 02-02 Outline how you can become a strategic leader.
Topic : The Strategic Role of Managers in Strategy Formulation and Implementation
Source : Chapter 02 Test Bank > MC Qu. 57 The CEO of EveryCar was the child...

1. Who formulates a company’s corporate strategy? What is the objective of this strategy?

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : The Strategic Role of Managers in Strategy Formulation and Implementation
Source : Chapter 02 Test Bank > SA Qu. 114 Who formulates a company’s corporate s...

1. The first step to gain and sustain a competitive advantage is to
   1. ______

put the guiding policies of an organization into practice.

understand the strategies of the competitors.

develop functional and business-level strategies.

define an organization’s vision, mission, and values.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-04 Describe the roles of vision, mission, and values in a firm's strategy.
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 30 The first step to gain and sustain a competi...

1. Which of the following strategy plans might work best in an industry that is considered a fast-changing environment with new laws going into effect regularly?
   1. ______

bottom-up planning

scenario planning

top-down planning

dominant planning

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Strategy and the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 19 Which of the following strategy plans might ...

1. Which of the following statements is true of strategic initiatives?
   1. ______

Random events and accidental happenstances reduce the possibility of strategic initiatives in organizations.

Strategic initiatives result from top-down planning by executives and not through a bottom-up process.

Strategic initiatives can be the result of a response to external trends or come from internal sources.

When lower-level employees are less empowered, the possibility of strategic initiatives is higher.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Strategic Approaches to Winning a Sustainable Competitive Advantage
Source : Chapter 02 Test Bank > MC Qu. 91 Which of the following statements is true of...

1. The production head at the All Paints Corp. would frequently stay back after office hours and experiment with new color combinations even though this was part of the new product development team’s job. As a result of these experiments, he came up with two new interior paint colors, foggy morning and mint julep. The new colors proved popular among test groups, and quickly became some of All Paints best-selling products. Which of the following strategies does this scenario best illustrate?
   1. ______

intended strategy

tactical strategy

emergent strategy

unrealized strategy

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Methods of Strategy Implementation
Source : Chapter 02 Test Bank > MC Qu. 89 The production head at the All Paints...

1. Agro Ecology Inc. is a company that manufactures mechanical and biological products to support sustainable farming methods. The company envisions that sustainable farming will replace industrial agricultural practices in the near future. Which of the following statements would make an accurate vision for Agro Ecology?
   1. ______

Agro Ecology aims to make working fun and pleasurable for its employees.

All people should have access to food and fibers produced using sustainable farming methods.

We provide environmentally safe agricultural products by investing in research and innovation.

We make products that support environmentally conscious agriculture.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 02-04 Describe the roles of vision, mission, and values in a firm's strategy.
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 31 Agro Ecology Inc. is a company that...

1. Explain the role of power in the strategic leadership process.

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 2 Medium
Learning Objective : 02-01 Explain the role of strategic leaders and what they do.
Topic : The Strategic Role of Managers in Strategy Formulation and Implementation
Source : Chapter 02 Test Bank > SA Qu. 111 Explain the role of power in the strategic l...

1. Define organizational core values with the help of an example.

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-06 Justify why anchoring a firm in ethical core values is essential for long-
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > SA Qu. 124 Define organizational core values with the h...

1. Who among the following is responsible for making business strategies in a large conglomerate?
   1. ______

the lower-level employees in the company

the board of directors at the headquarters

the general managers of strategic business units

the shareholder of the company

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : The Strategic Role of Managers in Strategy Formulation and Implementation
Source : Chapter 02 Test Bank > MC Qu. 71 Who among the following is responsible...

1. What are customer-oriented vision statements? Explain with the help of an example.

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-05 Evaluate the strategic implications of product-oriented and customer-orien
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > SA Qu. 122 What are customer-oriented vision statements...

1. The two detailed courses of action generated in Step 1 of the dialectic inquiry decision framework are known as
   1. ______

assonance and dissonance.

point and counterpoint

System 1 and System 2.

thesis and antithesis.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-10 Compare and contrast devil’s advocacy and dialectic inquiry as frame
Topic : Decision Making
Source : Chapter 02 Test Bank > MC Qu. 108 The two detailed courses of action generated...

1. Top-down strategic planning as an approach to the strategic management process will be most effective when the
   1. ______

environment is constantly changing.

size of the firm is large.

probability of black swan events is high.

top management wants to decentralize decision making.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Top-Down Strategic Planning and Scenario Planning
Source : Chapter 02 Test Bank > MC Qu. 96 Top-down strategic planning as an approach t...

1. MoreCash Inc. is a major financial services corporation. With the CEO of MoreCash Inc. preparing to retire, several top managers are vying for the position. Jared considers himself to be a leading candidate. He not only has advanced degrees from business schools and more than a decade of experience working for MoreCash Inc., but he also has personally ensured that his division has exceeded its performance benchmarks over the past three years, even though many of his employees are dissatisfied because they feel they are stagnating in their jobs. According to the Level-5 leadership pyramid, why has Jared failed to exhibit the qualities of a Level-5 leader?
   1. ______

His actions do not match the organization’s strategy.

He is not able to help others reach their full potential.

His individual skills are not well developed.

He lacks the organizational ability to accomplish the organization’s goals.

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 02-02 Outline how you can become a strategic leader.
Topic : Top Management Teams
Source : Chapter 02 Test Bank > MC Qu. 61 MoreCash Inc. is a major financial...

1. What is a strategic inflection point?
   1. ______

the step at which two alternate plans of action are synthesized and a new plan adopted

a random event or pleasant surprise that has a profound impact on a firm’s strategic plan

the recognition that a firm’s current strategy no longer provides the expected outcomes

the moment when the fundamentals of a business and its industry are about to change

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-08 Explain the causes of strategic dissonance and how to navigate strategic i
Topic : Strategy and the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 101 What is a strategic inflection point?

1. Customer-oriented vision statements are better suited than product-oriented vision statements for helping companies to adapt to changing environments.
   1. ______

• true
• false

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 2 Medium
Learning Objective : 02-05 Evaluate the strategic implications of product-oriented and customer-orien
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > TF Qu. 14 Customer-oriented vision statements are...

1. Meiko has been tasked with formulating the business strategy for LaFrance Beauty’s new line of skin rejuvenating cream. Which of the following ideas would Meiko be likely to include in her proposal?
   1. ______

Invest in increasing social media posts about LaFrance products.

Open kiosks in shopping centers located in developing countries with rising disposable incomes.

Reorganize the manufacturing division to gain efficiency.

Promote the cream as the only one on the market with a new miracle enzyme.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : The Strategic Role of Managers in Strategy Formulation and Implementation
Source : Chapter 02 Test Bank > MC Qu. 72 Meiko has been tasked with formulating...

1. Visionary companies differ from their competition in that
   1. ______

employees in visionary organizations find meaning in their work and are motivated.

a visionary company focuses on scenario planning and future competitive threats.

in a visionary company it is the CEO’s managerial style that gives the company its emergent strategy.

visionary companies typically emphasize measuring financial performance.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-04 Describe the roles of vision, mission, and values in a firm's strategy.
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 22 Visionary companies differ from their compet...

1. Rayya is exploring multiple suppliers in order to find the best price. However, instead of calling all seven potential suppliers, he only reaches out to the first four and bases his selection on those instead of contacting all suppliers. Rayya’s action best describes the concept of
   1. ______

the illusion of control.

satisficing.

optimal decision making.

escalating commitment.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-09 Describe and evaluate the two distinct modes of decision making.
Topic : Decision Making
Source : Chapter 02 Test Bank > MC Qu. 16 Rayya is exploring multiple suppliers in order...

1. Do vision statements help firms gain and sustain competitive advantage?
   1. ______

No, vision statements do not, but mission statements do.

It depends, because the effectiveness of vision statements differs by type.

Yes, but only if the vision statements are short, concise and are well written.

They do only if the vision statement follows the strategic management process.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-05 Evaluate the strategic implications of product-oriented and customer-orien
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 27 Do vision statements help firms gain and sus...

1. Hanna, the owner of GT Trading Inc., is engaged in the strategy formulation stage. She has already allocated a significant sum of money to upgrade the company’s communication network (sunk costs) but has failed to see any positive outcomes. Given the money she has already spent, she feels she needs to recover those costs and moves forward with the communications upgrade even though the outcome does not seem promising. This best illustrates the concept of
   1. ______

optimal decision making.

the illusion of control.

cognitive limitations.

escalating commitment.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-09 Describe and evaluate the two distinct modes of decision making.
Topic : Decision Making
Source : Chapter 02 Test Bank > MC Qu. 17 Hanna, the owner of GT Trading Inc., is...

1. Jennifer was just named the CEO of a pen company called National Pens Inc. She immediately changed the name to “Jenn’s Pens.” When asked why she made this change by the board of directors, who showed research that there was no correlation between success and CEO names, she responded by saying, “my previous company had the name of their CEO in the title, and they were very successful.” This fallacy on Jenifer’s part reveals her
   1. ______

confirmation bias.

groupthink.

optimal decision making.

escalation of commitment.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-09 Describe and evaluate the two distinct modes of decision making.
Topic : Decision Making
Source : Chapter 02 Test Bank > MC Qu. 18 Jennifer was just named the CEO of a pen com...

1. Strategies developed at the departmental level, such as the customer service, human resources, procurement, and sales departments, within a strategic business unit are referred to as________ strategies.
   1. ______

corporate

functional

business

professional

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : Strategic Approaches to Winning a Sustainable Competitive Advantage
Source : Chapter 02 Test Bank > MC Qu. 77 Strategies developed at the departmental...

1. A surprise event that leads to a change in strategic initiatives, such as the accidental discovery of a new use for an existing product, is known as serendipity.
   1. ______

• true
• false

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Sustaining a Competitive Advantage
Source : Chapter 02 Test Bank > TF Qu. 06 A surprise event that leads to a change in s...

1. As a part of strategy formulation, a firm’s functional strategy primarily concerns questions relating to
   1. ______

how to implement business strategy.

when to compete.

where to compete.

how to enter target markets.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : The Strategic Role of Managers in Strategy Formulation and Implementation
Source : Chapter 02 Test Bank > MC Qu. 66 As a part of strategy formulation, a...

1. Maria is the chief operating officer of the start-up Apps4U. In which of the following scenarios does Maria exhibit strategic leadership?
   1. ______

Maria schedules a meeting with the manager of the marketing department and overcomes his skepticism about a new campaign aimed at customers in the 55+ age group. Over the next three months, Apps4U gains 250,000 new users in that group.

With a major pitch to potential investors coming up, Maria works alone for 10 hours a day until she writes the perfect sales pitch. Even though the rest of her team doubts that they can meet the performance goals Maria has set, she makes the presentation anyway.

Maria directs the company to produce an app for reptile enthusiasts, a community she happens to be a part of. Even though the app ends up losing significant amounts of money, Maria is proud of the product and uses it every day.

Citing budget concerns, Maria ignores the directions from Apps4U’s CEO to double the size of the customer support staff. As a result, the company misses its third quarter customer satisfaction target but exceeds its net profit expectations by 5 percent.

Question Details
AACSB : Knowledge Application
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 02-01 Explain the role of strategic leaders and what they do.
Topic : The Strategic Role of Managers in Strategy Formulation and Implementation
Source : Chapter 02 Test Bank > MC Qu. 56 Maria is the chief operating officer...

1. Why is it important for a business to have a vision?

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-04 Describe the roles of vision, mission, and values in a firm's strategy.
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > SA Qu. 120 Why is it important for a business to have a...

1. Briefly describe the Level-5 leadership pyramid.

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-02 Outline how you can become a strategic leader.
Topic : Top Management Teams
Source : Chapter 02 Test Bank > SA Qu. 113 Briefly describe the Level-5 leadership pyra...

1. A traditional top-down strategic planning process typically begins with
   1. ______

strategic leaders adjusting a company’s vision and mission based on environmental analysis.

functional managers formulating functional strategies for their respective departments.

employees at the operational level identifying problems within an organization.

employees who have close contact with customers taking autonomous actions.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Top-Down Strategic Planning and Scenario Planning
Source : Chapter 02 Test Bank > MC Qu. 81 A traditional top-down strategic planning pr...

1. Which of the following vision statements is most likely to produce a sustainable competitive advantage for a boat dealership?
   1. ______

to open dealerships across the country

to sell only the highest-rated luxury boats

to help our customers find the perfect boat for their individual needs

to generate the highest revenues of any dealership in the region

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 02-05 Evaluate the strategic implications of product-oriented and customer-orien
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 44 Which of the following vision statements is ...

1. Strategy formulation concerns where and how to compete, whereas strategy implementation concerns organizing, coordinating, and integrating how work gets done.
   1. ______

• true
• false

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : Strategic Formulation and Implementation
Source : Chapter 02 Test Bank > TF Qu. 11 Strategy formulation concerns where...

1. A mission describes how a firm will accomplish the broad goals set out in a vision statement.
   1. ______

• true
• false

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-04 Describe the roles of vision, mission, and values in a firm's strategy.
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > TF Qu. 13 A mission describes how a firm will accompli...

1. A positive relationship between vision statements and firm performance is more likely to exist when
   1. ______

vision statements are equivalent to listening to the customers.

internal stakeholders are isolated from defining and revising the visions.

visions are product-oriented.

organizational structures are aligned with the firm’s vision statement.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-05 Evaluate the strategic implications of product-oriented and customer-orien
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 45 A positive relationship between vision state...

1. Leary’s Shoes has sold and repaired shoes and leather goods in a shop in the mall since 1963. For decades, the shop flourished, particularly during holiday shopping seasons when the mall was crowded with shoppers. Ros Leary, the founder’s daughter, assumed management of the store when her father retired in the late 1990s. Unphased by the introduction of online shopping and shoe services, Ros believed her customers preferred personal service and would continue buying their shoes in person. However, year by year, the store’s sales and profits fell, even when Ros lowered prices, expanded her offerings, and held special sales promotions. What situation describes the contradiction between Ros’s beliefs about the shoe business and the evidence she is experiencing?
   1. ______

devil’s advocacy

serendipity

strategic dissonance

dialectic inquiry

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 3 Hard
Learning Objective : 02-08 Explain the causes of strategic dissonance and how to navigate strategic i
Topic : Strategy and the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 98 Leary’s Shoes has sold and repaired shoes...

1. The executives at Dizzy Corp. are developing strategic plans to address plausible future situations like an increase in the prices of cotton and synthetic fabrics by 20 percent, appreciation in the value of the dollar, increase in the cost of labor by 30 percent, and increase in demand for the company’s products. By doing so, the company will be well prepared with its planned responses if any of these situations occurs in the future. Thus, Dizzy Corp. is employing________ as the approach to the development of strategy.
   1. ______

reverse engineering

scenario planning

top-down strategic planning

pattern recognition

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Top-Down Strategic Planning and Scenario Planning
Source : Chapter 02 Test Bank > MC Qu. 84 The executives at Dizzy Corp. are...

1. The COVID-19 pandemic, the BP oil spill, and the 9/11 terrorist attacks are examples of
   1. ______

camel’s nose opportunities.

boiling frog scenarios.

purple squirrel discoveries.

black swan events.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Top-Down Strategic Planning and Scenario Planning
Source : Chapter 02 Test Bank > MC Qu. 97 The COVID-19 pandemic, the BP...

1. The distribution department at Wheat, Barley and Whey Corp. has decided to adopt the FIFO (first in, first out) method of inventory to dispatch its bags of wheat. Which of the following strategies does this scenario best illustrate?
   1. ______

master strategy

corporate strategy

functional strategy

business strategy

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : Strategic Approaches to Winning a Sustainable Competitive Advantage
Source : Chapter 02 Test Bank > MC Qu. 78 The distribution department at Wheat...

1. How does a mission statement differ from a firm’s vision?

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-04 Describe the roles of vision, mission, and values in a firm's strategy.
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > SA Qu. 121 How does a mission statement differ from a f...

1. All Foods is the parent company of several chain restaurants offering a variety of cuisines. The top management at All Foods has decided to enter the frozen foods industry based on its assessment of the profit potential in that industry. Which of the following strategies does this best illustrate?
   1. ______

business strategy

functional strategy

corporate strategy

divisional strategy

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : Strategic Approaches to Winning a Sustainable Competitive Advantage
Source : Chapter 02 Test Bank > MC Qu. 69 All Foods is the parent company of...

1. Gina is the founder and CEO of a successful technology firm. In a memo, she informs the company’s employees that remote workers will be required to attend onsite teambuilding events at least once per quarter. In this example, Gina’s authority to institute a policy change is based on
   1. ______

strategic leadership.

informal power.

position power.

strategic initiative.

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 02-01 Explain the role of strategic leaders and what they do.
Topic : The Strategic Role of Managers in Strategy Formulation and Implementation
Source : Chapter 02 Test Bank > MC Qu. 15 Gina is the founder and CEO of a successful...

1. Organizational values help people make choices that are ethical and company-goal-oriented. These values answer which strategic management question?
   1. ______

What is the best way to compete in the industry?

What do we want to accomplish as a company?

What are we about as a firm compared to our competitors?

How do we accomplish our goals in the organization?

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-04 Describe the roles of vision, mission, and values in a firm's strategy.
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 23 Organizational values help people make choic...

1. The CEO of All Star Corp. has decided to enter the markets of emerging nations like China and Brazil. This means that the books, magazines, and websites published under the Chyron Media banner would be made available in these nations. Which of the following strategies does this scenario best illustrate?
   1. ______

functional strategy

business strategy

divisional strategy

corporate strategy

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : Strategic Approaches to Winning a Sustainable Competitive Advantage
Source : Chapter 02 Test Bank > MC Qu. 65 The CEO of All Star Corp. has decided...

1. Why is it important for top management of a company to show commitment and involvement toward organizational values?

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-06 Justify why anchoring a firm in ethical core values is essential for long-
Topic : Leaders Role in Establishing a Firm's Ethical Climate
Source : Chapter 02 Test Bank > SA Qu. 126 Why is it important for top management of a ...

1. Describe the key characteristics of System 1 and System 2 thinking and briefly discuss how these two systems affect decision making.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-09 Describe and evaluate the two distinct modes of decision making.
Topic : Decision Making
Source : Chapter 02 Test Bank > SA Qu. 129 Describe the key characteristics of System...

1. The upper-echelons theory favors the idea that effective strategic leadership results from innate abilities rather than learning.
   1. ______

• true
• false

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-02 Outline how you can become a strategic leader.
Topic : Managerial Succession Process
Source : Chapter 02 Test Bank > TF Qu. 03 The upper-echelons theory favors the idea that...

1. System 2 thinking is fast, unconscious, and automatic; it is the brain’s default mode.
   1. ______

• true
• false

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-09 Describe and evaluate the two distinct modes of decision making.
Topic : Decision Making
Source : Chapter 02 Test Bank > TF Qu. 10 System 2 thinking is fast, unconscious, and...

1. Due to political instability in the country of Bajukistan, the strategic leaders at the headquarters of Maxim Industries have decided to close all production facilities in the country until stability returns. Maxim’s managers have formulated a________ strategy.
   1. ______

business-level

corporate-level

divisional-level

functional-level

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : Strategic Approaches to Winning a Sustainable Competitive Advantage
Source : Chapter 02 Test Bank > MC Qu. 70 Due to political instability in the...

1. Deep Earth Gardening has a vision of helping every American learn how to grow their own food. Its management team recently unveiled the mission statement “A garden at every home.” What is wrong with this mission statement?
   1. ______

It does not indicate how the company will accomplish its goals.

It is not inspirational and motivating for employees.

It does not include a stretch goal.

It is too specific.

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 02-04 Describe the roles of vision, mission, and values in a firm's strategy.
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 38 Deep Earth Gardening has a vision of helping...

1. Which of the following summarizes the difference between corporate strategy and business strategy?
   1. ______

Corporate strategy deals with where to compete; business strategy deals with how to compete.

Corporate strategy deals with when to compete; business strategy deals with how to compete.

Corporate strategy deals with how to compete; business strategy deals with where to compete.

Corporate strategy deals with how to compete; business strategy deals with when to compete.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : Strategy and the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 62 Which of the following summarizes...

1. To implement specific business strategies, general managers of strategic business units rely on
   1. ______

strategic leaders.

functional managers.

corporate executives.

external stakeholders.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : The Strategic Role of Managers in Strategy Formulation and Implementation
Source : Chapter 02 Test Bank > MC Qu. 76 To implement specific business strategies...

1. Why is it better for firms to keep their vision statements customer-oriented rather than product-oriented?

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-05 Evaluate the strategic implications of product-oriented and customer-orien
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > SA Qu. 123 Why is it better for firms to keep their vis...

1. Pablo is part of a sales team. He effectively coordinates his tasks with others in the team and willingly contributes to their efforts in achieving the team’s objectives. Thus, Pablo is in________ of the Level-5 leadership pyramid.
   1. ______

Level 5

Level 3

Level 4

Level 2

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-02 Outline how you can become a strategic leader.
Topic : Top Management Teams
Source : Chapter 02 Test Bank > MC Qu. 58 Pablo is part of a sales team. He effectively...

1. Which of the following statements is true of business strategy?
   1. ______

It must be able to create synergies across business units that are quite different.

It is implemented within the standalone business units of a larger conglomerate.

Corporate executives at headquarters formulate it.

Its objective is to increase the overall company value to make it higher than the sum of the individual business units’ value.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : Strategic Approaches to Winning a Sustainable Competitive Advantage
Source : Chapter 02 Test Bank > MC Qu. 68 Which of the following statements...

1. What is a strategic business unit (SBU)? Explain with an example.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : Strategic Approaches to Winning a Sustainable Competitive Advantage
Source : Chapter 02 Test Bank > SA Qu. 115 What is a strategic business unit (SBU)? Exp...

1. Visionary companies are able to outperform their competitors because
   1. ______

they isolate internal stakeholders in defining their visions.

they provide more aspirational visions.

their visions are primarily financial.

their vision statements are more product-oriented.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-04 Describe the roles of vision, mission, and values in a firm's strategy.
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 33 Visionary companies are able to outperform t...

1. In a large company, who is most responsible for devising the corporate strategy?
   1. ______

the human resource manager in the company

the head of the production department in the company

the CEO of the company

the lower-level employees in the company

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : The Strategic Role of Managers in Strategy Formulation and Implementation
Source : Chapter 02 Test Bank > MC Qu. 67 In a large company, who is most...

1. Managers should create two sets of core values: one for employees and one for themselves.
   1. ______

• true
• false

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 1 Easy
Learning Objective : 02-06 Justify why anchoring a firm in ethical core values is essential for long-
Topic : Leaders Role in Establishing a Firm's Ethical Climate
Source : Chapter 02 Test Bank > TF Qu. 09 Managers should create two sets of core valu...

1. When are employees likely to fail to adopt the organizational values of a firm?
   1. ______

when the organizational structure, such as its strategic decision making, is aligned with its values

when the internal stakeholders of the firm are involved in designing the values

when the strategic leaders in the firm propagate and exhibit the same values

when the top managers in the firm are merely paying lip service to the firm’s stated values

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-06 Justify why anchoring a firm in ethical core values is essential for long-
Topic : Leader’s Role in Establishing a Firm’s Ethical Climate
Source : Chapter 02 Test Bank > MC Qu. 52 When do employees fail to adopt the organiza...

1. It is helpful to break down strategy formulation and strategy implementation into five distinct areas.
   1. ______

• true
• false

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-03 Compare and contrast the roles of corporate, business, and functional lead
Topic : Strategic Approaches to Winning a Sustainable Competitive Advantage
Source : Chapter 02 Test Bank > TF Qu. 04 It is helpful to break down strategy formula...

1. Which of the following best describes a Level 5 manager in the Level-5 leadership pyramid?
   1. ______

Parvati is an employee who just started her career at TechnoApp Inc.; she has already been appreciated in the company for her knowledge and skills.

Desiree is the CEO of Pelletier LLC.; she has helped her company gain and sustain a competitive advantage through ethical decision making.

Billie is part of the marketing team at Beacon & Perez.; she has been given the charge of managing a team of five, so she will be promoted to a manager’s position next month.

Jory is an employee at Futuro Inc.; they have helped their team achieve its targets by contributing to the team’s efforts.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-02 Outline how you can become a strategic leader.
Topic : Value of Strategic Leadership
Source : Chapter 02 Test Bank > MC Qu. 60 Which of the following best describes a...

1. Upper management at ComfyShoe Inc., a manufacturer of insoles for shoes, wants to work on improving the product lines it already has without taking on other challenges at this time. Which of the following vision statements reflects that goal?
   1. ______

ComfyShoe Inc. wants to always satisfy the consumers who purchase insoles.

ComfyShoe Inc. wants to adapt their insoles to the changing demands of consumers.

ComfyShoe Inc. wants to be the best manufacturer of insoles in the industry.

ComfyShoe Inc. wants to provide the best benefits for employees in the insole industry.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 02-05 Evaluate the strategic implications of product-oriented and customer-orien
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 39 Upper management at ComfyShoe Inc., a manufa...

1. The management of Venture Manufacturing showed a commitment to________ by increasing the salary of many female employees to meet its goal of having equal pay for comparable work regardless of gender.
   1. ______

organizational core values

upper-echelons theory

scenario planning

product-oriented vision

Question Details
AACSB : Ethics
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-06 Justify why anchoring a firm in ethical core values is essential for long-
Topic : Leader’s Role in Establishing a Firm’s Ethical Climate
Source : Chapter 02 Test Bank > MC Qu. 50 The management of Venture Manufacturing show...

1. Which of the following frameworks correctly identifies the three steps in the strategic management process?
   1. ______

APE: Analyze-Plan-Execute

AFI: Analyze-Formulate-Implement

API: Analyze-Plan-Implement

AFE: Analyze-Formulate-Execute

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Bloom's : Apply
Difficulty : 1 Easy
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : The AFI Strategy Framework
Source : Chapter 02 Test Bank > MC Qu. 24 Which of the following frameworks correctly...

1. Which of the following examples reflects the most effective vision?
   1. ______

All employees at Enterprise Flooring are motivated to make the best flooring products on the market.

Many employees at Enterprise Flooring get paid well but do not feel their work is important.

Some employees at Enterprise Flooring do not understand the main goal of the company.

Most employees at Enterprise Flooring want to create better flooring products than the firm's closest competitor.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-04 Describe the roles of vision, mission, and values in a firm's strategy.
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 28 Which of the following examples reflects the...

1. The Founder of Teach for America, Wendy Kopp, wants to make teaching an attractive option for promising young professionals. Identify the phrase that represents the vision she developed for Teach for America.
   1. ______

to encourage parents to take a more active role in their children’s education

to cut wasteful spending from education budgets

to give all children in the United States the opportunity to attain an excellent education

to improve standardized test scores across the board

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-04 Describe the roles of vision, mission, and values in a firm's strategy.
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 29 The Founder of Teach for America, Wendy Kopp...

1. Which of the following statements best represents a customer-oriented vision?
   1. ______

“To be the top-rated dental practice in the state.”

“We are in the entertainment and hospitality typewriter business.”

“We provide solutions to streamline payroll and tax processing.”

“We aim to build the best child safety seats in the world.”

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 02-05 Evaluate the strategic implications of product-oriented and customer-orien
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 20 Which of the following statements best...

1. Because environments are always dynamic, all organizations will encounter a strategic inflection point.
   1. ______

• true
• false

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-08 Explain the causes of strategic dissonance and how to navigate strategic i
Topic : Strategy and the Strategic Management Process
Source : Chapter 02 Test Bank > TF Qu. 05 Because environments are always dynamic...

1. When start-up entrepreneurs make claims like, “We will be the Uber of X, where X is any other category than ride hailing” or “We will be the Airbnb of Y, where Y is any other category than hospitality services” they are best illustrating which of the following cognitive biases?
   1. ______

escalation of commitment

representativeness bias

confirmation bias

groupthink

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-09 Describe and evaluate the two distinct modes of decision making.
Topic : Decision Making
Source : Chapter 02 Test Bank > MC Qu. 25 When start-up entrepreneurs make claim...

1. What is the strategic management process?
   1. ______

Strategic leaders design a method to formulate and implement strategy.

Strategic leaders focus on creating a vision that reflects the company’s strategy.

The CEO decides who the product managers will be for a company.

The CEO defines the main problems facing a company.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : The Strategic Role of Managers in Strategy Formulation and Implementation
Source : Chapter 02 Test Bank > MC Qu. 79 What is the strategic management process?

1. To be effective, firms need to
   1. ______

back up their visions with strategic commitments that are costly and difficult to reverse.

pursue visions that are exclusively financial and not aspirational.

isolate top managers from the organizational values.

increase their strategic flexibility by developing product-oriented vision statements.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-04 Describe the roles of vision, mission, and values in a firm's strategy.
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 34 To be effective, firms need to

1. Executives whose visions and decisions help their companies achieve competitive advantage can be considered strategic leaders.
   1. ______

• true
• false

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-01 Explain the role of strategic leaders and what they do.
Topic : Strategic Approaches to Winning a Sustainable Competitive Advantage
Source : Chapter 02 Test Bank > TF Qu. 01 Executives whose visions and decisions help ...

1. What is the drawback in top-down strategic planning?

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Top-Down Strategic Planning and Scenario Planning
Source : Chapter 02 Test Bank > SA Qu. 116 What is the drawback in top-down strategic p...

1. In the top-down strategic planning approach, all strategic intelligence and decision-making responsibilities rest primarily on the
   1. ______

external stakeholders.

functional managers.

chief executive officer.

general manager.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Top-Down Strategic Planning and Scenario Planning
Source : Chapter 02 Test Bank > MC Qu. 80 In the top-down strategic planning approach,...

1. Home for Good is a nonprofit organization that works to place shelter animals in safe, loving homes. The credo of the organization is “help us help vulnerable animals.” For an organization like Home for Good, which of the following statements would make an appropriate mission?
   1. ______

We help place vulnerable animals in safe, loving homes by connecting shelter and rescue agencies with vetted adopters.

Help us place vulnerable animals in secure and loving homes.

One day, all animals will have the protection of a safe and loving home.

Our mission is to turn this not-for-profit organization into a for-profit organization so that the stakeholders benefit.

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 02-04 Describe the roles of vision, mission, and values in a firm's strategy.
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 32 Home for Good is a nonprofit organization...

1. Suzi Lau Apparels Inc. (SLA) had been outsourcing its production to less-developed countries in order to reduce its cost of production. With the emergence of its competitor, Linda Inc., SLA lost its competitive advantage. Linda had its production units in its home country that allowed the company to bring out the latest trends to the market earlier than SLA. Also, SLA frequently suffered due to political instability and lack of intellectual property laws in the outsourced countries. Thus, parts of SLA’s strategies became obsolete, and it had to relocate its production. What are such obsolete strategies referred to as in the planned emergence model?
   1. ______

tactical strategy

unrealized strategy

intended strategy

emergent strategy

Question Details
AACSB : Analytical Thinking
Accessibility : Keyboard Navigation
Bloom's : Analyze
Difficulty : 3 Hard
Learning Objective : 02-07 Evaluate top-down strategic planning, scenario planning, and strategy as p
Topic : Methods of Strategy Implementation
Source : Chapter 02 Test Bank > MC Qu. 88 Suzi Lau Apparels Inc. (SLA) had been outsou...

1. Strategic leadership refers to the use of power and influence by________ to direct the activities of others when pursuing an organization’s goals.
   1. ______

corporate executives

lower-level managers

external stakeholders

production workers

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-01 Explain the role of strategic leaders and what they do.
Topic : The Strategic Role of Managers in Strategy Formulation and Implementation
Source : Chapter 02 Test Bank > MC Qu. 55 Strategic leadership refers to the use...

1. A customer-oriented vision statement focuses employees to think about how best to
   1. ______

make a product easier to use.

improve a popular product.

increase their efficiency to benefit consumers.

solve a problem for a consumer.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-05 Evaluate the strategic implications of product-oriented and customer-orien
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 40 A customer-oriented vision statement focuses...

1. Strategic leaders spend the majority of their time working alone to devise new strategies.
   1. ______

• true
• false

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-01 Explain the role of strategic leaders and what they do.
Topic : The Strategic Role of Managers in Strategy Formulation and Implementation
Source : Chapter 02 Test Bank > TF Qu. 02 Strategic leaders spend the majority of thei...

1. ________ are best described as the ethical standards and norms that govern the behavior of individuals within a firm.
   1. ______

Corrective controls

Job descriptions

Customs duties

Organizational core values

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-06 Justify why anchoring a firm in ethical core values is essential for long-
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 51 ________ are best described as the ethical stan...

1. What happens when a firm fails to successfully navigate a strategic inflection point?
   1. ______

illusion of control

dialectic inquiry

self-reinforcing failure

planned emergence

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Understand
Difficulty : 2 Medium
Learning Objective : 02-08 Explain the causes of strategic dissonance and how to navigate strategic i
Topic : Strategy and the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 99 What happens when a firm fails to...

1. Organizational values help individuals make choices that are
   1. ______

both ethical and effective in advancing a company’s goals.

ethical but ineffective in achieving long-term success.

both illegal and effective.

legal but unethical.

Question Details
AACSB : Knowledge Application
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Learning Objective : 02-06 Justify why anchoring a firm in ethical core values is essential for long-
Topic : The Roles of Vision, Mission, and Values in the Strategic Management Process
Source : Chapter 02 Test Bank > MC Qu. 53 Organizational values help individuals make ...