MGT 499 2
A strategic business unit (SBU) is defined as a(n) ______.
standalone division of a larger conglomerate
Which of the following types of questions does scenario planning ask?
"What if?"
Which of the following are questions that managers are likely to ask when beginning the strategic management process?
-How can we achieve our goals? -What are our values? -What do we ultimately hope to achieve?
Which conditions are most likely to foster a positive relationship between vision statements and firm performance?
-Internal stakeholders are invested in defining the vision. -The vision statements are customer-oriented. -Organizational structures align with the vision statements.
Which statements about vision statements and firm performance are true?
-Vision statements and firm performance are sometimes associated with one another. -Effective vision statements can provide a foundation for creating competitive advantage.
Shortcomings of top-down strategic planning are that ______.
-there is uncertainty about the future -plans for the future can be wrong
Which of the following are addressed during corporate strategy formulation?
-which industry to compete in -which geographic location to compete in -which market to compete in
The ______ is an example of a black swan event.
2008 global financial crisis
Which of the following is NOT necessarily a capability a Level-1 leader typically exhibits?
Contributes through collaboration.
According to Daniel Kahneman and Amos Tversky, System 1 is analytical, logical, and deliberate. T/F
False
True or false: A Level-3 leader ought to be able to create long-lasting greatness through resolve and humbleness. T/F
False
True or false: Emergent strategy is planned.
False
Which statement best describes escalating commitment?
Individuals acting as decision makers continue to support and invest in a project despite feedback indicating that it will fail.
Which statement best describes representativeness?
Individuals reach conclusions based on a small sample size or otherwise limited data, thereby violating the law of large numbers.
Which statement best describes the cognitive bias known as reason by analogy?
Individuals use simple examples to explain complex problems, even though the ideas in question may be very different from each other.
A black swan event has which of the following characteristics?
It has a major impact on society.
Why are businesses with product-oriented vision statements often less effective than businesses with customer-oriented vision statements?
Product-oriented companies have less flexibility to meet consumer needs.
What is the premise of Henry Mintzberg's position regarding strategic planning?
Strategy can be planned or emerge from the bottom-up.
True or false: Smart strategic leaders devise ways to make sure that their employees feel invested in the firm's vision.
True
True or false: The resource-allocation process (RAP) can be designed to support planned emergence.
True
What is the typical result of cognitive limitations?
We choose the option that is "good enough" and satisfies immediate needs.
Which of the following best describes an illusion of control?
a belief that a strategic plan will address any scenario
______ is a form of communication that enables the CEO of a company to pick up on nonverbal information, such as moods and body language.
a face-to-face meeting
Which term refers to strategic initiatives that lower-level employees undertake of their own volition, typically in response to unanticipated events?
autonomous actions
In the strategy process, questions concerning HOW to compete, such as through differentiation, are referred to as _____ strategy.
business
Which of the following leads to systematic errors in decision making and hinders rational thinking?
cognitive biases
Which cognitive bias refers to people's tendency to seek out information that aligns with their existing beliefs?
confirmation bias
A statement of guiding principles that typically provides very specific ethical considerations is a(n) ______.
core values statement
Which of the following is NOT a capability that a Level-2 manager typically exhibits?
creates long lasting greatness
A ______ vision statement defines a company by describing its interest in developing solutions to consumer problems.
customer-oriented
According to the Level-5 Pyramid, a Level-4 leader is also referred to as a(n) ______.
effective leader
The story concerning the discovery of Starbucks' Frappuccino is an example of a(n) ______ strategy, or an unplanned strategic initiative that originated at the bottom and moved to the top.
emergent
An inspiring vision helps employees ______.
find meaning in their work.
The goal of using the AFI strategy framework for scenario planning is to create strategic plans that are ______.
flexible
______ strategy answers questions regarding how to implement the business strategy.
functional
Which cognitive bias involves individuals agreeing with a leader without critically evaluating or challenging the leader's views and assumptions?
groupthink
The Level-5 leadership pyramid is a conceptual framework that shows ______.
how leaders develop
Strategy ______ concerns the organization, coordination, and integration of how work gets done.
implementation
A(n) __________ strategy is the outcome of a rational and structured, top-down strategic plan.
intended
Research about how CEOs spend their days suggests that CEOs spend most of their time ______.
interacting with others
Which of the following is NOT one of the steps in the traditional top-down strategic planning process?
measurement
A ________________ outlines what an organization does, while a vision outlines what the organization wants to do.
mission
What type of vision statement focuses on the good or service provided?
product-oriented
Which of the following are three approaches that strategic leaders rely on to formulate and implement strategy?
scenario planning strategic planning strategy as planned emergence
Larry, the owner of small hotel resort, would like to advertise his hotel in major American newspapers and magazines as a part of his larger strategy. However, he doesn't have enough money to do so. One day, he meets Todd, the owner of a group of newspapers and magazines, who offers him advertising space in his publications on the condition that Larry provide him with a free stay at the hotel. This is an example of which of the following?
serendipity
______ describe(s) random events, pleasant surprises, and accidental happenstances that can have a profound impact on a firm's strategic initiatives.
serendipity
A(n) ______ is any activity a firm pursues to explore and develop new products and processes, new markets, or new ventures.
strategic initiative
A powerful strategic commitment assures _____.
that steps are taken to achieve the mission
What is System 1 of the brain according to Daniel Kahneman and Amos Tverksy?
the brain's default mode
Which theory proposes that when faced with decisions, we tend to satisfice rather than optimize?
theory of bounded rationality
What is strategic leadership?
the use of influence and power by executives to direct the activities of individuals while pursing an organization's goals
According to upper-echelons theory, the way strategic leaders of a firm interpret a situation is influenced by which of the following?
the values and experiences of the firm's leaders
What distinguishes a Level-5 leader from other levels of leaders?
they create enduring greatness
Upper-echelons theory views organizational outcomes as a reflection of the values of the ______.
top management team
Serena is the CEO of an online retailer. She and her immediate staff have decided to implement a company-wide marketing strategy to improve online sales in Central and South America. What type of strategic approach is Serena engaging in?
top-down strategic planning
According to the ______, effective leadership is the outcome of certain intrinsic talents as well as education.
upper-echelons theory
In crafting a strategic management plan, leaders must first determine the company's long-term objective. This means leaders must first define the organization's ______.
vision
In the strategic management process, which basic principle must be defined first?
vision
Strategy formulation concerns the choice of strategy in terms of ______ to compete.
where and how
Corporate strategy concerns questions related to ______.
where to compete