BUS 475 Chapter 2 & 12

Which statement best describes escalating commitment?

Individuals acting as decision-makers continue to support and invest in a project despite feedback indicating that it will fail.

Which statement best describes the cognitive bias of representativeness?

Individuals reach conclusions based on a small sample size or otherwise limited data, thereby violating the law of large numbers.

What should a successful vision do for an organization?

It should make employees feel that their work is important. It should inspire employees.

What is strategic leadership?

The use of influence and power by executives to direct the activities of individuals while pursuing an organization's goals

In the strategy process, questions concerning HOW to compete, such as through differentiation, are referred to as ______ strategy.

business

Which of the following leads to systematic errors in decision making and hinders rational thinking?

cognitive biases

A powerful strategic commitment assures ______.

that steps are taken to achieve the mission

Which statements about vision statements and firm performance are true?

Vision statements and firm performance are sometimes associated with one another. A positive relationship between vision statements and firm performance is more likely to exist when the visions are customer-oriented.

Which theory proposes that when faced with decisions, we tend to satisfice rather than optimize?

theory of bounded rationality

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

Which of the following is a statement of guiding principles that typically provides very specific ethical considerations?

core values statement

A company with a ______ vision statement tends to be more flexible and more likely to succeed.

customer-oriented

A common cognitive bias is ______, which occurs when decision makers continue to support and invest in a project, even after receiving feedback indicating that it is likely to fail.

escalating commitment

A core values statement provides information to employees regarding the company's ______.

ethics and morals

Incentives that are too high-powered, such as an outsized bonus, may cause individuals to ______.

focus too much attention on the incentive and not enough on strategic activities

The primary purpose of the board of directors is ______.

general strategic oversight and guidance

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

What are cognitive biases?

obstacles in thinking that result in systematic errors in decision making and hinder rational thinking

______ 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

What type of vision statement tends to limit a manager's flexibility and ability to adapt?

product-oriented

A strategic business unit (SBU) is defined as a ______.

standalone division of a larger conglomerate

What is System 1 of the brain according to Daniel Kahneman and Amos Tverksy?

the brain's default mode

Strategy Implementation primarily involves ______

the organization, coordination, and integration of how work gets done

Upper-echelons theory views organizational outcomes as a reflection of the values of the ______.

top management team

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

Which of the following are addressed during corporate strategy formulation?

which geographic location to compete in which market to compete in which industry to compete in