MAN4720 Ch 2 Quiz

Whole Food's choice to develop strict standards and labeling for seafood can best be categorized as - a values component - a vision component - a mission component - the CEO's responsibility - a strategy component

A mission component

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. - unrealized strategy - strategic alliance - intended strategy - bottom-up strategy

Bottom-up strategy

In keeping with its vision and values, Whole Foods could have - stopped selling fish - just bought fish from one supplier - only sold fresh seafood - not labeled the type of fish it was selling - bought its own fishing vessels and processing capacity

Bought its own fishing vessels and processing capacity

According to the Level-5 leadership pyramid, the Level 2 manager is a(n) - strategic leader - competent manager - contributing team member - effective leader

Contributing team member

The board of directors of Qwik 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? - functional strategy - business strategy - divisional strategy - corporate strategy

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. - Successful companies are led by Level-1 executives. - At Level 3, managers are capable of devising a vision and mission to guide the firm toward superior performance. - Once a manager moves to higher levels, he or she loses the qualities acquired in the previous levels to gain new ones.

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

The metaphor of a black swan best applies to - small businesses that become successful enough to raise capital through initial public offering - events that are considered highly unexpected and highly impactful when they do occur - highly profitable business units in low growth markets that are to be sustained solely for revenue generation - low profitable strategic business units within a large enterprise that are best divested or liquidated

Events that are considered highly unexpected and highly impactful when they do occur

Which of the following statements does the upper-echelons theory support? - Organizational outcomes including strategic choices and performance levels reflect the values of external stakeholders. - The leadership actions of executives are independent of their characteristics like age, education, and career experiences. - Strong leadership is solely the result of innate abilities and not learning. - Executives interpret situations through the lens of their unique perspectives, shaped by personal circumstances, values, and experiences.

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

Product-oriented vision statements provide managers with - goals for employee development - goals to improve service - strategic flexibility - ways to solve customer problems

Goals to improve service

The pattern of faulty and biased decision making that occurs in groups whose members strive for agreement at the expense of good decision making is called - brainstorming - groupthink - devil's advocacy - bounded rationality

Groupthink

Which of the following questions would a firm's business strategy ideally answer? - how should we compete? - where should we compete? - why should we compete? - how should we implement the functional strategy?

How should we compete?

A firm's ________ strategy is likely to fall by the wayside because of unpredictable events and turn into unrealized strategy. - recognized - realized - dominant - intended

Intended

Which of the following is not true concerning a customer-oriented mission? - it defines the means of how a customer need will be met - It has more flexibility than a product-oriented mission - It has a higher likelihood of remaining relevant in the long-term - Organizations that have customer-oriented missions are more likely to be successful

It defines the means of how a customer need will be met

Stan 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 Stan 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 Stan is currently at __________ of the Level-5 leadership pyramid. - level 1 - level 3 - level 4 - level 5

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 - vision - promissory note - code of conduct

Mission

When an organization briefly describes what they do and how they do it, they have more than likely articulated their - values statement - mission statement - strategic plan - strategic intent

Mission statement

According to the upper-echelons theory, - top managers of a company should isolate themselves from the organizational values. - organizational outcomes reflect the values of the top management team. - strong strategic leadership is solely the result of learning. - strategic commitments made by upper-level managers are inexpensive and short-term.

Organizational outcomes reflect the values of the top management team

Within the context of strategic management it is important to understand that black swan events in the past have demonstrated that - stakeholders can affect or be affected by a firm's actions - capitalism as an economic system is highly reliable - companies can successfully integrate cost-leadership and differentiation strategies - globalization has reduced the need for standardized corporate ethics

Stakeholders can affect or be affected by a firm's actions

________ is best described as executives' use of power and influence to direct the activities of others when pursuing organizational competitive advantage. - Intrapreneurship - venture capitalism - strategic leadership - machiavellianism

Strategic leadership

Which of the following statements is true of customer-oriented visions? - They tend to force managers to take a myopic view of the business environment - They define a business in terms of providing solutions to people's needs - They are inflexible with regard to adapting to changing environments - They state an organization's goals in terms of a good or service provided to customers

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

Evaluating the data collected from environmental analysis, the corporate executives of BigPharma 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? - scenario planning - bottom-up strategic approach - reverse mentoring - top-down strategic planning

Top-down strategic planning

Which of the following statements accurately brings out the difference between an organization's vision and mission? - Mission is the organization's aspirations for the future and vision is about how these aspirations can be made true over time - Vision is short-term: oriented and related to the organization's present, whereas the mission is futuristic - Vision is valid at the functional level of the organization, whereas mission covers the entire organization - Vision defines what the organization wants to accomplish ultimately, whereas the mission defines the means by which vision is accomplished

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

Organizational core values are the answer to which of the following questions? - What commitments do we make to act both legally and ethically? - Which of the value chain activities are primary? - What is the value added to a good or service at each step in the production? - What is the company's customer lifetime value?

What commitments do we make to act both legally and ethically?

A company's vision primarily states - how the company plans to accomplish its goals - what the company actually does to generate revenues - what the company wants to ultimately accomplish - how the company plans to compete in its industry

What the company wants to ultimately accomplish

A mission represents - the strategic actions the firm takes - the future that the firm is trying to create - the guardrails that keep the firm from making bad decision - a way to market the firm to consumers - the CEO's responsibility

The strategic actions the firm takes

If a company chooses to keep its vision customer-oriented rather than product-oriented, what will be the implication of that decision? - The company will tend to be more flexible when adapting to changing environments - The company will clearly define how it means to satisfy a customer need - The company will fail to establish a positive relationship between its vision statement and performance - The company will have a short-term, unidirectional focus

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

Which of the following actions of an automobile firm will be considered as a strategic commitment? - the firm launching an existing model of a car in red as a limited edition for six months - the firm investing eight years and $4 billion to develop a range of hybrid cars with which it will compete in the future - the firm spending $100,000 on renting a manufacturing facility to meet the temporary demand for its cars - the firm promoting its new model of coupe through a free European trip worth $15,000 to be won as an early-bird offer

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

A vision represents - the strategic actions the firm takes - the future that the firm is trying to create - the guardrails that keep the firm from making bad decision - a way to market the firm to consumers - the CEO's responsibility

The future that the firm is trying to create

Values represent - the strategic actions the firm takes - the future that the firm is trying to create - the guardrails that keep the firm from making bad decision - a way to market the firm to consumers - the CEO's responsibility

The guardrails that keep the firm from making bad decision