Ch 2 Strategic Management

Research about how CEOs spend their days suggests that CEOs spend most of their time ______. Multiple choice question. performing research monitoring the quality of the company's goods and services brainstorming new ideas interacting with others

interacting with others

A _____ outlines what an organization does, while a vision outlines what the organization wants to do.

mission statement

Which term refers to strategic initiatives that lower-level employees undertake of their own volition, typically in response to unanticipated events? Multiple choice question. planned emergence black swan events autonomous actions realized strategy

autonomous actions

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. Multiple choice question. commitment intent vision mission

mission

What distinguishes a Level-5 leader from other levels of leaders? Multiple choice question. They are better educated than others. They are rarely wrong. They flourish in corporations, but not as entrepreneurs. They create enduring greatness.

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 false question. True False

True

Which of the following types of questions does scenario planning ask? Multiple choice question. "Why me?" "And when?" "What if?" "So what?"

"What if?"

Research about how CEOs spend their days suggests that CEOs spend most of their time ______. Multiple choice question. -interacting with others -monitoring the quality of the company's goods and services -performing research -brainstorming new ideas

-interacting with others

According to the ______, effective leadership is the outcome of certain intrinsic talents as well as education. Multiple choice question. -upper-echelons theory -leadership pyramid -strategic management process -strategic formulation

-upper-echelons theory

Studies show that CEOs spend the majority of their time ______. Multiple choice question. making phone calls meeting people face-to-face working alone emailing colleagues

meeting people face-to-face

Top-down strategy is derived from ______. Multiple choice question. scenario planning military strategy planned emergence strategy representational political systems

military strategy

After creating a vision as part of the strategic management process, a firm must next establish a(n) ______. Multiple choice question. value-driven product list leadership team IPO mission

mission

What are the approaches that can be utilized when strategizing for competitive advantage? Multiple select question. Strategic planning Scenario planning Strategic intent Strategy as planned emergence Strategic commitment

Strategic planning Scenario planning Strategy as planned emergence

What is the typical result of cognitive limitations? Multiple choice question. We are able to process and evaluate large amounts of data. We choose the option that is "good enough" and satisfies immediate needs. We spend the time and energy necessary to research and find an optimal solution. We address unexpected scenarios with flexibility and a quick and effective response.

We choose the option that is "good enough" and satisfies immediate needs.

Which of the following are questions that managers are likely to ask when beginning the strategic management process? (Check all that apply.) Multiple select question. What do we ultimately hope to achieve? How can we achieve our goals? What are our values? Is our vision product- or customer-oriented?

What do we ultimately hope to achieve? How can we achieve our goals? What are our values?

Which of the following best describes an illusion of control? Multiple choice question. a long-term commitment to customer satisfaction a policy of consulting all stakeholders for major decisions a focus on flexible approaches to problem solving a belief that a strategic plan will address any scenario

a belief that a strategic plan will address any scenario

Which of the following leads to systematic errors in decision making and hinders rational thinking? Multiple choice question. emergent strategy behavioral economics cognitive biases serendipity

cognitive biases

Which cognitive bias refers to people's tendency to seek out information that aligns with their existing beliefs? Multiple choice question. escalating commitment groupthink confirmation bias reason by analogy

confirmation bias

All of the following are sources of strategic initiatives except ______. Multiple choice question. serendipity consumer demand autonomous actions the resource allocation process

consumer demand

A statement of guiding principles that typically provides very specific ethical considerations is a(n) ______. Multiple choice question. behavioral analysis sustainable competitive summary product-oriented vision statement core values statement

core values statement

In the strategy process, questions concerning WHERE to compete, such as the industry or market, is referred to as ______ strategy. Multiple choice question. functional business implementation corporate

corporate

A ______ vision statement defines a company by describing its interest in developing solutions to consumer problems. Multiple choice question. product-oriented customer-oriented marketing-oriented business-oriented

customer-oriented

What is the primary focus of a customer-oriented vision statement? Multiple choice question. providing low-cost alternatives to expensive goods and services marketing goods and services to the right customers developing goods and services that solve consumer problems improving the quality of goods and services

developing goods and services that solve consumer problems

What method for improving strategic decision making involves having a separate team or individual carefully analyze and critique the underlying assumptions and potential downsides of a proposed course of action? Multiple choice question. escalating commitment groupthink reason by analogy devil's advocacy

devil's advocacy

According to the Level-5 Pyramid, a Level-4 leader is also referred to as a(n) ______. Multiple choice question. contributing team member executive highly capable individual effective leader

effective leader

The story concerning the discovery of Starbucks' Frappuccino is an example of a(n) ______ strategy, or an unplanned strategic initiative that originated at the bottom and moved to the top. Multiple choice question. intended accidental emergent top-down

emergent

A common cognitive bias is ______, which is when decision makers continue to support and invest in a project, even after receiving feedback indicating that it is likely to fail. Multiple choice question. groupthink escalating commitment reason by analogy illusion of control

escalating commitment

A core values statement provides information to employees regarding the company's ______. Multiple choice question. ethics and morals vision and mission strategic planning marketing strategy

ethics and morals

According to the Level-5 pyramid, which level of leadership has the fewest members? Multiple choice question. effective leaders contributing team members executives competent managers

executives

Jennie is the CEO of an information technology company. Based on the data that her researchers have compiled, she feels confident that her strategic plan for the company will be successful in the future, regardless of what happens. Based on this information, it seems that Jennie ______. has an illusion of control is using a dominant strategic plan is conducting scenario planning has a customer-oriented vision

has an illusion of control

Strategy ______ concerns the organization, coordination, and integration of how work gets done. Multiple choice question. analysis organization formulation implementation

implementation

A(n) __________ strategy is the outcome of a rational and structured, top-down strategic plan. Multiple choice question. realized intended serendipitous emergent

intended

Serena is the CEO of an online retailer. She and her immediate staff have decided to implement a company-wide marketing strategy to improve online sales in Central and South America. What type of strategic approach is Serena engaging in? Multiple choice question. scenario planning bottom-up strategic planning strategy as planned emergence top-down strategic planning

top-down strategic planning

If parts of a firm's intended strategy fall by the wayside, it is referred to as Multiple choice question. realized strategy. emergent strategy. autonomous action. unrealized strategy.

unrealized strategy.

According to the ______, effective leadership is the outcome of certain intrinsic talents as well as education. Multiple choice question. leadership pyramid upper-echelons theory strategic formulation strategic management process

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 ______. Multiple choice question. mission vision products values

vision

In the strategic management process, which basic principle must be defined first? Multiple choice question. values strategy vision mission

vision

Which of the following terms best describes an organization's primary objective and what it ultimately wants to accomplish? Multiple choice question. vision mission values inspiration

vision

Strategy formulation concerns the choice of strategy in terms of ______ to compete. Multiple choice question. why and where where and how why or why not when and where

where and how

Corporate strategy concerns questions related to ______. Multiple choice question. how to compete whom to compete with why to compete where to compete

where to compete

Which of the following are addressed during corporate strategy formulation? Multiple select question. which geographic location to compete in which industry to compete in how to implement business strategy which market to compete in

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

Place in order from first to last the steps in the devil's advocacy decision framework. (Place the first step at the top.)

1. Team 1 formulates a course of action 2. Team 2 questions the assumptions of and critiques the proposed course of action 3. Team 1 revises the proposed course of action based on the input from Team 2 4. Team 2 questions the assumptions of and critiques the revised course of action, and Team 1 makes additional revisions 5. Team 1 and Team 2 agree upon a course of action

Rank the following levels of the level-5 leadership pyramid, placing the highest level at the top.

1. executive 2. effective leader 3. competent manager 4. contributing team member 5. highly capable individual

What is strategic leadership? A. the use of influence and power by executives to direct the activities of individuals while pursing an organization's goals B. the ability of executives to consider the concerns of the organization and coordinate and integrate the steps necessary to get work done C. a belief that an executive is capable of producing a plan that will address any business scenario D. an executive's ability to get employees to agree to any plan without critically evaluating or challenging the executive's views and assumptions

A. the use of influence and power by executives to direct the activities of individuals while pursing an organization's goals

Why is employee involvement crucial when developing an inspiring vision and mission? (Check all that apply.) Multiple select question. Because employees always want more work. Because employees must exercise developing vision and mission statements. Because employees may develop helpful strategic initiatives. Because belief in the vision and mission statements motivates employees.

Because employees may develop helpful strategic initiatives. Because belief in the vision and mission statements motivates employees.

What does the Frappuccino story illustrate about the strategic management process? Multiple choice question. -Emergent strategies can be very successful. -Emergent strategies are a waste of time. -Individual managers tend to have customer-oriented visions while all CEOs tend to have product-oriented ones. -Bottom-up strategies are more effective than top-down ones.

Emergent strategies can be very successful.

According to Daniel Kahneman and Amos Tversky, System 1 is analytical, logical, and deliberate. True false question. True False

False

True or false: Emergent strategy is planned. True false question. True False

False

Which statement best describes escalating commitment? Multiple choice question. -Individuals acting as decision makers continue to support and invest in a project despite feedback indicating that it will fail. -Individuals reach conclusions based on a small sample size or otherwise limited data, thereby violating the law of large numbers. -Individuals use simple analogies to explain complex problems, even though the two ideas in question may be very different from each other. -Individuals search only for information that confirms their existing beliefs and ignore evidence that contradicts those beliefs.

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 confirmation bias? Multiple choice question. -Individuals automatically agree with a leader without critically evaluating or challenging the leader's views and assumptions. -Individuals use simple analogies to explain complex problems, even though the ideas in question may be very different from each other. -Individuals reach conclusions based on a small sample size or otherwise limited data, thereby violating the law of large numbers. -Individuals search only for information that confirms their existing beliefs and ignore evidence that contradicts those beliefs.

Individuals search only for information that confirms their existing beliefs and ignore evidence that contradicts those beliefs.

Which statement best describes the cognitive bias known as reason by analogy? Multiple choice question. Individuals automatically agree with a leader without critically evaluating or challenging the leader's views and assumptions. Individuals search only for information that confirms their existing beliefs and ignore evidence that contradicts those beliefs. Individuals use simple examples to explain complex problems, even though the ideas in question may be very different from each other. Individuals reach conclusions based on a small sample size or otherwise limited data, thereby violating the law of large numbers.

Individuals use simple examples to explain complex problems, even though the ideas in question may be very different from each other.

What should a successful vision do for an organization? (Check all that apply.) Multiple select question. It should describe the products and services it plans to provide. It should inspire employees. It should ensure that employees understand their job duties. It should make employees feel that their work is important.

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

Which of the following statements about scenario planning is true? Multiple choice question. It assumes that circumstances will stay the same. It asks the question, "What are the core values?" It takes place at the corporate level but not the business level of strategy. It starts with a top-down approach.

It starts with a top-down approach.

Which level of strategic leader presents a convincing vision and mission that helps groups improve their performance? Multiple choice question. Level 3 Level 4 Level 1 Level 2

Level 4

______ describe(s) random events, pleasant surprises, and accidental happenstances that can have a profound impact on a firm's strategic initiatives. Multiple choice question. Resource-allocation process (RAP) Autonomous actions Serendipity Strategic initiatives

Serendipity

Which of the following statements is correct? Multiple choice question. Strategic initiatives generally lead to financial success. Strategic initiatives can be the result of top-down planning or a bottom-up process. Strategic initiatives are always the result of a bottom-up process. Strategic initiatives are always the result of top-down planning.

Strategic initiatives can be the result of top-down planning or a bottom-up process.

What are cognitive biases? Multiple choice question. -obstacles in thinking that result in systematic errors in decision making and hinder rational thinking -constraints that prevent us from evaluating everything we encounter, such as the brain's inability to process large amounts of data -mental limitations that cause individuals to pursue a course of action, even after receiving negative feedback about its likelihood of success -the way a firm allocates resources based on predetermined policies

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

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? Multiple choice question. value power vision groupthink

power

What type of vision statement focuses on the good or service provided? Multiple choice question. product-oriented manufacturing-oriented customer-oriented sales-oriented

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. Multiple choice question. intended; realized emergent; intended realized; emergent emergent, realized

realized; emergent

What cognitive bias involves using simple examples to make sense out of complex problems, even though the things being compared may be very different on a deeper level? Multiple choice question. reason by analogy confirmation bias representativeness escalating commitment

reason by analogy

_____ planning is a strategy-planning activity in which top management envisions various what-if scenarios to anticipate plausible futures in order to derive strategic responses.

scenario

Larry, the owner of small hotel resort, would like to advertise his hotel in major American newspapers and magazines as a part of his larger strategy. However, he doesn't have enough money to do so. One day, he meets Todd, the owner of a group of newspapers and magazines, who offers him advertising space in his publications on the condition that Larry provide him with a free stay at the hotel. This is an example of which of the following? Multiple choice question. autonomous actions resource-allocation process (RAP) serendipity planned emergence

serendipity

A(n) ______ is any activity a firm pursues to explore and develop new products and processes, new markets, or new ventures. Multiple choice question. vision statement strategic initiative competitive advantage AFI framework mission statement

strategic initiative

What are autonomous actions? Multiple choice question. -unexpected and unlikely occurrences that have a significant impact on society -random events, pleasant surprises, and accidental occurrences that can have a major impact on an organization's strategic initiatives -strategic initiatives that lower-level employees undertake of their own volition, often in response to unanticipated events -activities a firm pursues to explore and develop new products and processes, new markets, or new ventures

strategic initiatives that lower-level employees undertake of their own volition, often in response to unanticipated events

Which of the following is the least formal approach to setting the strategy process? Multiple choice question. top-down strategic planning strategic planning scenario planning strategy as planned emergence

strategy as planned emergence

Which of the following are three approaches that strategic leaders rely on to formulate and implement strategy? Multiple select question. scenario emergence strategy as planned emergence strategic planning scenario planning

strategy as planned emergence strategic planning scenario planning

Which of the following is the conceptual framework developed by Jim Collins that describes the progression of leadership through distinct, sequential levels? Multiple choice question. the 4-level leadership ranking the Level-5 leadership pyramid the Five-step leadership ladder the leadership sequential pentagon

the Level-5 leadership pyramid

What is System 1 of the brain according to Daniel Kahneman and Amos Tverksy? Multiple choice question. the brain's logical and analytical mode the brain's default mode the brain's sleeping mode the brain's biased mode

the brain's default mode

Strategy Implementation primarily involves which of the following? Multiple choice question. -the choice of strategy in terms of where and how to compete -making productive contributions through motivation and talent -the organization, coordination, and integration of how work gets done -the power and influence to direct activities of others

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

Both strategy formulation and strategy implementation are aspects of ______. Multiple choice question. the upper-echelons theory vision the strategy process the Level-5 Pyramid

the strategy process

What is strategic leadership? Multiple choice question. -an executive's ability to get employees to agree to any plan without critically evaluating or challenging the executive's views and assumptions -a belief that an executive is capable of producing a plan that will address any business scenario -the use of influence and power by executives to direct the activities of individuals while pursing an organization's goals -the ability of executives to consider the concerns of the organization and coordinate and integrate the steps necessary to get work done

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? Multiple choice question. the average education level of the firm's employees the values and experiences of the firm's leaders government regulations the origin and development of the firm

the values and experiences of the firm's leaders

Which theory proposes that when faced with decisions, we tend to satisfice rather than optimize? Multiple choice question. resource-allocation theory theory of bounded rationality theory of serendipity upper-echelons theory

theory of bounded rationality

An intended strategy is the outcome of a plan that has which of the following characteristics? Multiple select question. top-down rational improvised structured

top-down rational structured