GEB 4891 Chapter 2 Quiz

In the 1980s, Japanese competitors brought better-quality chips to the market at lower cost, threatening Intel Corporation's position and strategic plan regarding the production of DRAM (dynamic random-access memory) chips. When the functional managers at Intel came up with the simple rule of producing whichever product delivered the higher margin, the front-line managers shifted Intel's production capacity away from the lower-margin DRAM business to the higher-margin semiconductor business. This ___________ emerged as a consequence of the firm's resource allocation process.

Bottom-up strategy

According to the Level-5 leadership pyramid, the Level 2 manager is a(n)

Contributing team member.

The board of directors of Best Digital Inc., a company that has a large product mix, has decided to get actively involved in research and development for the next three financial years. Budget for each business unit under the company will be allocated from the headquarters in proportion to its previous performance. The board has also decided to liquidate those units that have failed to perform so far. Which of the following strategies does this scenario best illustrate?

Corporate strategy

Which of the following statements is true of the Level-5 leadership pyramid?

Each level of leadership builds upon the previous one in the pyramid.

Which of the following statements does the upper-echelons theory support?

Executives interpret situations through the lens of their unique perspectives, shaped by personal circumstances, values, and experiences.

Which of the following questions does the values espoused by a company primarily answer?

How do we accomplish our goals?

Which of the following questions would a firm's business strategy ideally answer?

How to compete?

A firm's _____ is likely to fall by the wayside because of unpredictable events and turn into unrealized strategy.

Intended strategy

Larry has been recently promoted to the position of a team lead at an insurance company. This promotion was based on his boss's assessment that Larry is capable of conveying the company's vision and mission to groups. As a result, he can guide groups to superior performance. From this scenario, we can say that Larry is currently at _____ of the Level-5 leadership pyramid.

Level 4

An organization's ____________ describes what the organization actually does—the products and services it plans to provide, and the markets in which it will compete.

Mission

Product-oriented vision statements provide managers with

Service goals

_____ is best described as the behaviors and styles of executives that influence others to achieve an organization's vision and mission.

Strategic leadership

According to the upper-echelons theory,

organizational outcomes reflect the values of the top management team.

Which of the following statements is true of customer-oriented visions?

They define a business in terms of providing solutions to people's needs.

As the chief executive officer (CEO) of Yahoo, Marissa Mayer declared Yahoo's vision to be "to make the world's daily habits more inspiring and entertaining." She wants to inspire Yahoo's employees and get its customers excited again. Which of the following approaches to the development of strategy does Yahoo best illustrate?

Top-down strategic planning

Evaluating the data collected from environmental analysis, the corporate executives of F&S Pharma Inc. realized that it was the right time to expand the business. The company's vision was accordingly adjusted from "To Be the Best in the Pharmaceutical Industry" to "To Make Good Health Accessible to Everyone around the Globe." To support the new vision, the executives decided that the company would first enter the Asian market where its growth potential would be huge. To further support these decisions, the general managers of different SBUs and the functional managers formulated their own strategies. Which of the following approaches to the development of strategy does this best illustrate?

Top-down strategic planning

Which of the following statements accurately brings out the difference between an organization's vision and mission?

Vision defines what the organization wants to accomplish ultimately, whereas the mission defines the means by which vision is accomplished.

A company's vision primarily states

What the company wants to accomplish ultimately

Which of the following actions of an automobile firm will be considered as a strategic commitment?

the firm investing eight years and $4 billion to develop a range of hybrid cars with which it will compete in the future

If a company chooses to keep its vision customer-oriented rather than product-oriented, what will be its implication?

The company will tend to be more flexible when adapting to changing environments.