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.

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.

True or false: Emergent strategy is planned.

False

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.

______ 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.

True or false: Smart strategic leaders devise ways to make sure that their employees feel invested in the firm's vision.

True

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

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

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

Research about how CEOs spend their days suggests that CEOs spend most of their time ______.

interacting with others

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

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

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

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

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

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

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

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

Which of the following terms best describes an organization's primary objective and what it ultimately wants to accomplish?

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