Chapter 1 MC

An organization is responsible to many different entities. In order to meet the demands of these groups, organizations must participate in stakeholder management. Stakeholder management means that: A. interests of the stockholders are not the only interests that matter B. stakeholders are second in importance to the stockholders C. stakeholders and managers inevitably work at cross-purposes D. all stakeholders receive financial rewards

A) Interests of the Stockholders are not the only interests that matter

We want to be the top-ranked supplier to our customers. (PPG) This is an example of a: A. nonfinancial strategic objective B. financial strategic objective. C. vision statement D. mission statement

A) Non-Financial Strategic Objective

Managers should do more than just focus on short-term financial performance. One concept that helps managers do this is stakeholder symbiosis. This means that: A. stakeholders are dependent on each other for their success B. stakeholders look out for their individual interests C. one can only gain at the expense of someone else D. all stakeholders want to maximize shareholder returns

A) Stakeholders are dependent on each other for their success

According to the text, the strategic management process entails three ongoing processes: A. analyses, actions, and synthesis B. analyses, decisions, and actions C. analyses, evaluation, and critique D. analyses, synthesis, and antithesis

B) Analyses, Decisions, Actions

In contrast to the vision of an organization, its mission should: A. be shorter in length B. encompass both the purpose of the company as well as the basis of competition C. encompass all the major rules and regulations of the corporate work force D. be less detailed.

B) Encompass both the purpose of the company as well as the basis of competition

While working to prioritize and fulfill their responsibilities, members of the board of directors of an organization should: A. represent their own interests B. represent the interests of the shareholders C. direct all actions of the CEO D. emphasize the importance of short-term goals

B) Represent the interests of the Shareholders

Procter and Gamble has perfected a technique for compacting cleaning powder into a liquid concentration. Consumers, retailers, shipping and wholesalers, and environmentalists all have benefited from the resulting change in consumer shopping habits and the revolution in industry supply-chain economics. According to the text, this is an example of __________. A. zero-sum relationship among stakeholders B. stakeholder symbiosis C. rewarding stakeholders D. emphasizing financial returns

B) Stakeholder Symbiosis

Strategy formulation and implementation is a challenging ongoing process. To be effective, it should not involve: A. the CEO and the board of directors B. the board of directors, CEO, and CFO C. competitors D. line and staff managers

C) Competitors

According to the text, the triple bottom line approach to corporate accounting includes three components: A. financial, environmental, and customer B. financial, organizational, and customer C. financial, environmental, and social D. financial, organizational, and psychological

C) Financial, Environmental, Social

According to Henry Mintzberg, decisions following from the strategic analysis of the firm are its: A. emergent strategy B. deliberate strategy C. intended strategy D. realized strategy

C) Intended Strategy

All of the following are ambidextrous behaviors EXCEPT: A. taking initiative and being alert to opportunities beyond the confines of one's own job B. being cooperative and seeking opportunities to combine one's efforts with others C. intensely focusing on the responsibilities of one individual and maximizing the output D. being brokers, always looking to build internal linkages

C) Intensely focusing on the responsibilities of one individual and maximizing the output

Peter Senge, of MIT, recognized three types of leaders. __________ are individuals that, although having little positional power and formal authority, generate their power through the conviction and clarity of their ideas. A. Local line leaders B. Executive leaders C. Internal networkers D. Shop floor leaders

C) Internal Networkers

__________ involves ensuring proper strategic controls and organizational designs. A. Corporate governance B. Corporate-level strategy C. Strategy implementation D. Business-level strategy

C) Strategy Implementation

Successful organizations are effective in motivating people. Employees work best when: A. they are asked to do their best B. work requirements are vague and unclear C. they are striving toward specific goals D. they are guided by an abstract mission statement

C) They are striving toward specific goals

Leadership is a necessary (but not sufficient) condition for organizational success. Leaders should emerge at which level(s) of an organization? A. only at the top B. in the middle C. throughout the organization D. only during times of change

C) Throughout the Organization

The organizational versus the individual rationality perspective suggests that: A. what is good for a functional area is always good for the organization B. what is good for the organization is always good for a functional area C. what is best for a functional area may not be best for the organization D. the incremental perspective may be best for functional areas while the "rational"

C) What is best for a functional area may not be best for the organization

The four key attributes of strategic management include all of the following EXCEPT: A. including multiple stakeholder interests in decision making B. incorporating both short-term and long-term perspectives C. recognizing the trade-offs between effectiveness and efficiency D. emphasis on the attainment of short-term objectives

D) Emphasis on the attainment of short-term objectives

Vision statements are used to create a better understanding of the overall purpose and direction of the organization. Vision statements: A. are very specific B. provide specific objectives C. set organizational structure D. evoke powerful and compelling mental images

D) Evoke powerful and compelling mental images

The text addresses two perspectives of leadership as well as their implications. These two perspectives are: A. romantic and unromantic B. romantic and internal control C. external control and unromantic D. romantic and external control

D) Romantic and External Control