Chapter 2 LearnSmart
Top-down strategy is derived from __. -planned emergence strategy -military strategy -representational political systems -scenario planning
military strategy
Microsoft donating more than $3 billion in cash and software to people in need is an example of which type of corporate social responsibility? -philanthropic -ethical -legal -economic
philanthropic
In the __ step of the stakeholder impact analysis the firm identifies their stakeholders' interests and claims according to the power, legitimacy, and urgency framework. -fourth -fifth -first -third -second
second
Managing the interactions of individuals and groups that affect and are affected by the activities of a firm is known as __ strategy.
stakeholder
A strategic business unit (SBU) is defined as a(n) ___. -standalone division of a larger conglomerate -east way to divide a company -parent company that oversees standalone divisions -Fortune 500 company
standalone division of a larger conglomerate
What is the premise of Henry Mintzberg's position regarding strategic planning? -strategy can be planned or emerge from the bottom-up -strategic planning is too flexible -strategic planning does not impact overall strategy -top-down strategic planning is the most effective
strategy can be planned or emerge from the bottom-up
In the __ step of the stakeholder impact analysis, the firm identifies the opportunities and threats that stakeholders present to the firm. -third -fifth -fourth -second -first
third
A(n) __ of control describes the tendency of managers to overestimate their ability to manage events.
illusion
Larry, the owner of a 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? -autonomous actions -serendipity -planned emergence -resource-allocation process (RAP)
serendipity
J&S Employees, a startup Internet company with one office and just over 100 customers, would best benefit from which type of strategy? -scenario planning -top-down strategic planning -customer-oriented vision statement -strategy-as-planned-emergence
strategy-as-planned-emergence
According to the __, effective leadership is the outcome of certain intrinsic talents as well as education. -strategic management process -strategic formulation -leadership pyramid -upper-echelons theory
upper-echelons theory
When a stakeholder has power over a company it is __. -perceived to have a legally valid claim -helping to implement the firm's strategy -able to get the company to take immediate and urgent action -able to influence the company to pursue a course of action it would not otherwise take
-able to influence the company to pursue a course of action it would not otherwise take
How should managers prioritize stakeholder concerns in the final step of stakeholder impact analysis? -by considering the power, legitimacy, and urgency of stakeholder claims -by addressing the most vocal or visible complaints first -by bringing the question to a vote at shareholder meetings -by observing the actions of competitors
-by considering the power, legitimacy, and urgency of stakeholder claims
A firm that successfully executes a strategy benefits society by __ (Check all that apply). -limiting competition -creating value -reinvesting profits and increasing employment -eliminating legal restrictions on controversial practices
-creating value -reinvesting profits and increasing employment
Which of the following is considered an internal stakeholder? -employees -competitors -customers -board members -governments -stockholders -unions
-employees -board members -stockholders
What are the expectations that society has of the business enterprise as described in the CSR framework? (Check all that apply.) -ethical -legal -economic -aesthetic -philanthropic
-ethical -legal -economic -philanthropic
Which of the following are types of corporate social responsibilities that a firm may identify during the fourth step of stakeholder impact analysis? (Check all that apply). -medical -ethical -legal -economic -philanthropic
-ethical -legal -economic -philanthropic
Which of the following is NOT an issue involving CORPORATE strategy formulation? (Check all that apply.) -in which industry to compete -in which market to compete -how to compete -in which geographic location to compete -how to implement business strategy
-how to compete -how to implement business strategy
Which of the following are NOT questions involving FUNCTIONAL strategy implementation? (Check all that apply.) -how to implement business strategy? -in which industry to compete? -in which geographic location to compete? -how to compete?
-in which industry to compete? -in which geographic location to compete? -how to compete?
The stakeholders of a firm are __. -individuals or groups who own at least one share of a firm's stock -only those firms that contribute to the production and distribution of a company's products -only those who directly profit from a firm's success -individuals or groups that can affect and are affected by the actions of the firm
-individuals or groups that can affect and are affected by the actions of the firm
Which of the following are outcomes of effective stakeholder management? (Check all that apply.) -it lowers the cost of business transactions by building trust -it reduces organizational adaptability -it leads to beneficial cooperation from stakeholders -it helps the firm achieve predictable and stable returns
-it lowers the cost of business transactions by building trust -it leads to beneficial cooperation from stakeholders -it helps the firm achieve predictable and stable returns
Which of the following legal developments allow business to function as an institution? (Check all that apply.) -property rights -voting rights -contract enforcement -freedom of speech
-property rights -contract enforcement
The most likely result of failing to meet the needs of shareholders is that they will __. -purchase shares of competing companies as a hedge against a decline in the firm's market value -purchase more shares of the company's stock according to the "buy low, sell high" philosophy -lobby the Securities and Exchange Commission to impose fines or other penalties on the firm -sell the company's stock, negatively affecting the firm's market value
-sell the company's stock, negatively affecting the firm's market value
What are the approaches that can be utilized when strategizing for competitive advantage? -strategic planning -scenario planning -strategy as planned emergence -strategic commitment -strategic intent
-strategic planning -scenario planning -strategy as planned emergence
Which of the following are examples of a black swan event? (Check all that apply.) -the president's annual State of the Union Address -the accounting scandal at Enron -daily traffic jams during rush hour -the Fukushima nuclear disaster -the 9/11 terrorist attacks
-the accounting scandal at Enron -the Fukushima nuclear disaster -the 9/11 terrorist attacks
Shortcomings of top-down strategic planning are that __ (Check all that apply). -it is ineffective in stable environments -it excludes CEOs from the analysis stage -there is uncertainty about the future -plans for the future can be wrong
-there is uncertainty about the future -plans for the future can be wrong
Institutional investors, such as TIAA-CREF and The Vanguard Group, have much more power over a firm that individual investors, because __. -there are less institutional investors than there are individual investors -they can exercise block-voting rights or otherwise influence the corporate government process -they are able to buy or sell a much larger number of shares than can individuals -they have a small amount of assets under management
-they can exercise block-voting rights or otherwise influence the corporate government process -they are able to buy or sell a much larger number of shares than can individuals
Among the various types of responsibilities a business firm has, which of the following are specifically considered to be economic responsibilities? (Check all that apply.) -to do what society deems just and fair -to repay debt to suppliers -to give investors a return on invested capital -to obey consumer protection laws
-to repay debt to suppliers -to give investors a return on invested capital
An intended strategy is the outcome of a plan that has which of the following characteristics? (Check all that apply.) -top-down -improvised -rational -strategic
-top-down -rational -strategic
The __ is an example of a black swan event. -start of the academic year -2008 global financial crisis -duty to file taxes -annual flu season
2008 global financial crisis
T/F: A Level-3 leader ought to be able to create long-lasting greatness through resolve and humbleness.
False
T/F: Emergent strategy is planned.
False
T/F: Managers should only obey laws when they do not interfere with the firm's strategy.
False
T/F: The strategist's job is to focus on shareholders only.
False
According to the Level-5 pyramid, a Level-1 leader typically shows which capability? -Collaborates well with others -Offers a convincing vision and mission -Creates long-lasting greatness -Offers helpful and effective input
Offers helpful and effective input
T/F: The resource-allocation process (RAP) can be designed to support planned emergence.
True
A Level-__ leader is referred to as a contributing team member.
Two
__ is a form of communication that enables the CEO of a company to pick up on nonverbal information, such as moods and body language. -texting -a phone call -a face-to-face meeting -an email conversation
a face-to-face meeting
BP's actions after the 2010 Deepwater Horizon oil spill, widely described as gross negligence and a lack of business integrity, may result in __. -a new competitive advantage -improved relations with stakeholders -an increase in existing competitive advantages -a significant competitive disadvantage
a significant competitive disadvantage
Corporate strategy, business strategy, and functional strategy are __. -all developed by strategic business units -all part of strategic formulation -ways to divide work within an organization -random tasks the organization has to compete
all part of strategic formulation
Which of the following is a term used to describe a highly unlikely event that has a significant impact on society? -white knight event -unicorn event -blue bird event -black swan event
black swan event
__ strategy addresses the question of HOW to compete.
business
All of the following are sources of strategic initiatives except __. -consumer demand -serendipity -autonomous actions -the resource allocation process
consumer demand
Which of the four corporate social responsibilities is considered first and foremost for business enterprises? -economic -philanthropic -ethical -legal
economic
What does the Frappuccino story illustrate about the strategic management process? -emergent strategies can be very successful -bottom-up strategies are more effective than top-down ones -emergent strategies are a waste of time -individual managers tend to have customer-oriented visions while all CEOs tend to have product-ones
emergent strategies can be very successful
Which of the following incentivize employees by offering them discounted shares or retirement plans based on company stock? -initial public offerings -employee welfare benefit plans -stock buyback plans -employee stock ownership plans
employee stock ownership plans
Internet privacy, genetic engineering, and stem-cell research are examples of areas in which a firm's __ responsibilities exceed its legal responsibilities.
ethical
According to the Level-5 pyramid, which level of leadership has the fewest members? -effective leaders -competent managers -contributing team members -executives
executives
In the __ step of a stakeholder impact analysis, firms identify those stakeholders that currently have, or potentially can have, a material effect on the company. -fifth -second -third -fourth -first
first
Stakeholder impact analysis is a __-step process that allows managers to better understand and address stakeholders' needs. -two -three -five -four
five
The goal of using the AFI strategy framework for scenario planning to create strategic plans that are __. -pessimistic -static -complex -flexible
flexible
A Level-__ (fill out a number) leader presents a convincing vision and mission that helps groups improve their performance.
four
A Level-__ (number) leader presents a convincing vision and mission that helps groups improve their performance.
four
The Level-5 leadership pyramid is a conceptual framework that shows __. -why employees quit -why companies fail -why companies generate profits -how leaders develop
how leaders develop
Strategy __ concerns the organization, coordination, and integration of how work gets done.
implementation
A(n) __ strategy is the outcome of a rational and structured, top-down strategic plan. -serendipitous -emergent -intended -realized
intended
Research about how CEOs spend their days suggests that CEOs spend most of their time __. -interacting with others -performing research -brainstorming new ideas -monitoring the quality of the company's goods and services
interacting with others
__ allows for bottom-up strategic initiatives to occur within a company and to be reviewed by executives. -planned emergence -serendipity -a vision statement -a strategic initiative
planned emergence
__ 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
