Strategic Management- Chapter 2
Why is employee involvement crucial when developing an inspiring vision and mission? (Check all that apply.)
Because belief in the vision and mission statements motivates employees. Because employees may develop helpful strategic initiatives.
True or false: Emergent strategy is planned.
False
______ strategy answers questions regarding how to implement the business strategy.
Functional
Which of the following are questions that managers are likely to ask when beginning the strategic management process? (Check all that apply.
How can we achieve our goals? What do we ultimately hope to achieve? What are our values?
What should a successful vision do for an organization? (Check all that apply.)
It should inspire employees. It should make employees feel that their work is important.
Which conditions are most likely to foster a positive relationship between vision statements and firm performance?
Organizational structures align with the vision statements. Internal stakeholders are invested in defining the vision. The vision statements are customer-oriented.
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.
Mission
The mission focuses on how the company can accomplish their goals.
What distinguishes a Level-5 leader from other levels of leaders?
They create enduring greatness.
A(n) ______ can help employees feel that they are doing something worthwhile and are part of something important and meaningful.
aspirational vision
In the strategy process, questions concerning HOW to compete, such as through differentiation, are referred to as _____ strategy.
business
Which strategy addresses the question of how to compete?
business
A(n) ______ is a statement of principles to guide an organization as it works to achieve its vision and fulfill its mission.
core values statement
A company with a ______ vision statement tends to be more flexible and more likely to succeed.
customer-oriented
What is the primary focus of a customer-oriented vision statement?
developing goods and services that solve consumer problems
An inspiring vision helps employees ______.
find meaning in their work.
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
Studies show that CEOs spend the majority of their time ______.
meeting people face-to-face
A _____outlines what an organization does, while a vision outlines what the organization wants to do.
mission
A ______ vision statement defines a business by describing the goods or services it produces or offers.
product-oriented
The type of vision statement that tends to limit a manager's flexibility and ability to adapt is the ______ vision statement.
product-oriented
The type of vision statement that tends to limit a manager's flexibility and ability to adapt is the ______ vision statement. problem-solving
product-oriented
What type of vision statement focuses on the good or service provided?
product-oriented
The executives of a computer software company developed an intended strategy to make the company more competitive. The company's ultimate ______ strategy contained elements not only of the intended strategy but also unplanned elements from a(n) ______ strategy.
realized; emergent
A strategic business unit (SBU) is defined as a(n) ______
standalone division of a larger conglomerate
Functional strategy is primarily concerned with ______.
strategy implementation
a powerful strategic commitment assures
that steps are taken to achieve the mission
Which of the following is the conceptual framework developed by Jim Collins that describes the progression of leadership through distinct, sequential levels?
the Level-5 leadership pyramid
What is System 1 of the brain according to Daniel Kahneman and Amos Tverksy?
the brain's default mode
If parts of a firm's intended strategy fall by the wayside, it is referred to as
unrealized strategy.
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
Strategy formulation concerns the choice of strategy in terms of ______ to compete.
where and how
Corporate strategy concerns questions related to ______
where to compete
Which of the following are addressed during corporate strategy formulation?
which geographic location to compete in which industry to compete in which market to compete in
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
Which of the following terms best describes an organization's primary objective and what it ultimately wants to accomplish?
vision
Strategy Implementation primarily involves which of the following?
the organization, coordination, and integration of how work gets done
Both strategy formulation and strategy implementation are aspects of ______.
the strategy process
Which statements about vision statements and firm performance are true?
Effective vision statements can provide a foundation for creating competitive advantage. Vision statements and firm performance are sometimes associated with one another.
According to Daniel Kahneman and Amos Tversky, System 1 is analytical, logical, and deliberate.
False..Reason: System 2 decision making is analytical, logical, and deliberate.
True or false: Smart strategic leaders devise ways to make sure that their employees feel invested in the firm's vision.
True
Strategic commitments tend to be which of the following?
difficult to reverse costly
A core values statement provides information to employees regarding the company's ______
ethics and morals
According to the Level-5 pyramid, which level of leadership has the fewest members?
executives
Research about how CEOs spend their days suggests that CEOs spend most of their time ______.
interacting with others
An organization's ______ is what an organization actually does, including the products and services it plans to provide and the markets in which it will compete
mission
Which of the following is an important part of strategic leadership and is the strategic leader's ability to influence and direct individuals to do things?
power
Which of the following are three approaches that strategic leaders rely on to formulate and implement strategy?
strategic planning strategy as planned emergence scenario planning
Which of the following is the least formal approach to setting the strategy process?
strategy as planned emergence