leadership & strategic management final
The presence and participation of customers in the service delivery process is an example of _______.
Inseparability
This ratio shows how many days the firm keeps an average day of inventory on hand throughout the year.
Inventory Turn-days
The purchase of fixed assets and the purchase or sale of securities issued by other entities, the sale of stocks and bonds, the repurchase of securities, and the payment of dividends would be reported as _________ in the Cash Flow Statement.
Investing Activities
The leader's vision and leadership style dictate which school of thought?
Entrepreneurial school
A change in the mortgage and interest rates in a country due to an economic downturn is an example of ...
Environmental Dynamism
Unfavorable conditions in the general or macro environment is called:
Environmental Hostility
These strategic alliances occur when one organization purchases some level of ownership in the other.
Equity strategic alliance
The four main elements of strategic management include all of the following EXCEPT.
Extermination
Which of the following is NOT one of the determinants of Organizational Culture?
External Environment
The "Levers of Control" balance ______ and _____ in an organization.
Flexibility and Formality
Which of the following is NOT a key factor in strategy formation?
Geographic location
How is the power distance cultural dimension defined?
It is related to the distribution of power; degree of equality and degree of emphasis on hierarchy.
The "planning" school of thought is often criticized by scholars because:
It separates strategy formulation from strategy implementation It does not consider organizational culture and politics It sees the external environment as simple and stable It focuses too much on planning but pays less attention to strategy implementation
How is an authoritarian leadership style defined?
It uses a top-down approach which supports that followers of the leader obey the instruction instead of participating in the decision-making process.
Personal interactions and experiences are important parts of services, and employees play a key role in the H&T industry. This describes ____ characteristic of the H&T industry.
Labor intensive
Which of the following is a barrier to strategy implementation and change?
Lack of resources Government regulations Trade Unions Financial difficulties
The four responsibilities for businesses described by Carroll (2008) are...
Legal, Economic, Ethics, and Philanthropic
Who developed the Five Forces Model?
Michael Porter
According to the planning school of thought, who should mainly participate and work in implementing strategies?
Middle managers / supervisors and employees
The _____ includes a clear purpose and states why the organization is in existence.
Mission
Firms define strategic management by a process including:
Missions, Visions, Goals and Objectives
This type of strategic alliance occurs when organizations create an agreement to share resources without creating a separate entity.
Non-Equity Strategic Alliance
The primary focus of which organizations is to serve the society and the environment?
Non-profit tourism organizations
Which one is NOT considered as a major barrier to change and strategy implementation in hospitality organizations?
Offering relevant, good and timely training programs
The Cash Flow Statement can be prepared one of two ways. This method starts with net income and then lists adjustments, thereby converting total net income into a measure of accrued cash
indirect method
An organization seeks to engage in CSR by sponsoring a local softball team. This fits within which CSR dimension?
local community
Which of the following is NOT a benefit of franchising for the franchisor?
loss of ownership
Environmental hostility is an unfavorable condition in the _____ environment.
macro
Which of the following is considered a business capability?
management decision-making
Who is a person who generally controls or administers an organization or group of employees?
manager
When classifying and defining an environments' category, one should refer to the ____ and ____ perspectives.
micro and macro
This organizational structure has separate divisions based on products, services, and geographical areas.
multi-divisional structure
The acquisition and development of new skills and knowledge to implement the new strategy and the types of training activities to develop and prepare relevant managers and employees are key issues under what category of the strategic formation process?
operational processes
Which of the following is NOT part of the operational process?
outcome
Which of the following is NOT a category of income in the income statement?
owner's equity
Which school focuses on mission, vision, goals, and strategies?
planning school
Power and politics drive which school of thought?
power school
Which of the following is NOT an ethical issue for H&T Organizations?
profit
Which classification of the H&T organization focuses on financial objectives?
profit motive
The BCG growth-share matrix suggests that as a product moves through its lifecycle, it is categorized into one of four types for the purpose of funding decisions. This type includes new products with the potential for success but ones that require a great deal of effort and resources for development and whose market share is less dominant, as competition may be more aggressive.
question marks
Which of these sectors are NOT included in the H&T industry?
retail
Which of the following is NOT a leverage ratio?
return to equity ratio
When supply catches demand and when the rate of growth of firms subsides, they start to compete directly against one another. This is the __________ phase of the industry lifecycle.
shakeout
Which of the following is NOT an area of activity reported on the cash-flow statement?
start-up activities
An internal analysis of an organization is part of a SWOT analysis. This includes identifying an organization's:
strengths and weaknesses
Which of the following is NOT part of Harris Rosen's leadership style?
take control over every aspect of the business
This approach believes that strategic planning includes four separate elements: analysis, strategy formulation, strategy implementation, and control/monitoring.
the planning school
Owners' equity indicates the residual interest owed to owners or shareholders. It is equivalent to
total assets of the firm minus its liabilities
According to the entrepreneurial school of thought, the leader's vision and her/his leadership style influence the organization's strategic posture and direction.
true
An inside-out approach is about developing strategy based on the firm's resources, capabilities, and competencies, while tapping opportunities based on its strengths.
true
Being proactive and deliberative is essential in strategic management.
true
Changes in rules, regulations, and Laws that affect the business environment must be tracked by the firm.
true
Companies enter into joint venture partnerships because they reduce the risk of failure by sharing the burden with a partner and gain rapid market access, and internationally they can have an increase in company and product acceptance by having a local firm serving as the direct interface with the customer.
true
Corporate strategy is a firm's overall approach to gaining a competitive advantage by operating in several businesses simultaneously.
true
Forces that arise from the general (macro) and micro (task) environments present opportunities or pose threats depending on how they impact an organization.
true
Geocentric strategy involves the collaboration of headquarters and subsidiaries around the world.
true
Porter's five forces framework helps us analyze the industry in which an organization operates—its competitors, suppliers, buyers, new entrants, and substitutes.
true
Rosen believes in "responsible capitalism" or the need for organizations to give back to their communities.
true
Services in the H&T industry are undergoing a shift from service to experience.
true
Social disclosure is another term for CSR reporting.
true
Strategic management can help H&T organizations in providing a link between external and internal environments.
true
The four components of cultural intelligence are meta-cognitive, cognitive, motivational, and behavioral.
true
The hospitality and tourism (H&T) industry is one of the most significant service industries in developed countries in terms of income generation and employment.
true
The overall objective of the business is to create value for its stakeholders.
true
There is a hierarchical and integrative relationship among the schools of thought in the strategic management field and they are rarely found in their pure form
true
When revenues are greater than overall expenses for an operating period, a company records a profit.
true
The resource-based view suggests that a competitive advantage comes from a firm's unique resources. These resources must be
valuable, rare, inimitable, non-substitutable, and used effectively by the organization
The overall objective of the business is to create _____ for its stakeholders.
value
These three factors drive positioning strategies according to Porter.
variety, needs, and access
The _____ describes where the organization wants to go from where it is at present.
vision
Robert Niles, editor of Theme Park Insider, is skeptical about the park's future for all but which one of the following reasons?
Increased attendance revenues
Strategic alliances became a focal point of strategic management literature during which time frame?
1990s
During which time frame was there an increase emphasis on corporate social responsibility within strategic management?
2000s
Environmental dynamism is reflected into the H&T industry with a ____ day shift from high-peak to low-peak seasons.
365
This occurs when a firm establishes a direct presence in an area by setting up a branch or subsidiary and then expands into the area by granting franchises and providing direct services to its franchisees.
Branch or subsidiary operation
Which of the following can be described as ethical dilemmas for the H&T industry?
Accounting practices Social networking issues Diversity issues
According to the resource-based view (RBV) in the strategic management field, a resource must be what to help an organization create competitive advantage?
All of them together (Valuable, Rare, Inimitable and Non-substitutable)
Good strategies are based on which of the following:
An inside-out approach An outside-in approach A long-term approach
These systems ensure that organizational members' activities fall within the acceptable domain of activity.
Boundary Systems
Management's vision and mission statements are considered part of their__________.
Belief system
What attributes compile the Five Forces Model?
Buyers' Bargaining Power, Substitutes, New Comers, Suppliers' Bargaining Power, and Competition among industry incumbents
When the decision-making power and responsibility is held by top management this is known as:
Centralized structure
Which one is an appropriate strategy in overcoming barriers and resistance to change?
Communicating with all relevant parties Providing resources Providing training and support
Which of the following statements is NOT true?
Competitive advantage can be attained without core capabilities and distinctive competencies
Which school of thought in the strategic management field combines the other 9 schools of thought?
Configuration
Which school of thought has been proposed in order to combine all the previous schools into one perspective?
Configurational school
Which of the following is NOT a school of thought in the strategic management field?
Configurational school The global school The design school The learning school
Which school of thought focuses on transformational leadership at its core?
Configurations school
An attribute that a company does exceedingly well is considered a ______.
Core capability
CSR stands for ______ in business.
Corporate Social Responsibility
Which of the following is typically an OWNER responsibility in a management contract?
Cover the payment of all wages and salaries of employees.
Which of the following is NOT a factor that has encouraged H&T organizations to become internationalized through franchising?
Decreased travel and tourism
Attention on goal achievement for the business and individuals is an example of what control system?
Diagnostic
This portfolio approach matrix includes nine cells based on long-term industry attractiveness and business strength/competitive position.
Directional Policy Matrix (GE-McKinsey)
Which approach values the significance of power distribution, politics, organizational culture and learning from mistakes in the strategy formation process?
Emergent (learning) school
The importance of customer-to-customer interactions in service organizations highlights which characteristic of the H&T industry?
Heterogeneity
Variations in service delivery from customer to customer and from time to time will always occur. Which characteristic of the H&T industry does this describe?
Heterogeneity
Organizational functions in hospitality and tourism businesses can be divided into several subsets. Select all that apply.
Human Resources, Marketing, Operations, Technology, and Finance
Value is created for the firms' ___________.
Immediate or primary stakeholders and for its secondary stakeholders
What is behavioral cultural intelligence?
Includes an individuals' skills and their capacity to show suitable verbal and non-verbal communications in other cultures.
What is the main guide that shows individual how to interpret and respond to the environment?
Organizational culture
Which one is NOT one of the operational process variables when implementing strategies?
Outcome/results
Trust and reliability are key criteria under what category of franchise partner selection?
Partner-related criteria
Consumer demand for H&T services exhibits very cyclic behavior over a short period of time. This describes the ______ characteristic of the H&T industry.
Perishability
The value of a hotel room will be lost if it is not sold for a night. Which characteristic of the H&T industry does this statement describe?
Perishability
Which of the following is NOT a major responsibility of a business?
Philanthropic
A PESTE analysis consist of
Political, Economic, Sociocultural, Technological, and Ecological
Strategy formation is deliberate and definitive is the approach of which school of strategy?
Positioning school
Duncan (1972) refers to the organizational level to include____ as a component.
Products, Services, Goals and Objectives
Hospitality and tourism organizations can be categorized according to:
Profit Motive (profit or non-profit) Geographical coverage Size Functional area
Return on Assets (ROA) and Return on Equity (ROE) are examples of
Profitability Ratios
The static-dynamic dimension can be described as the following:
Refers to the degree of change over time related to the factors of variables pertaining to the internal and external environments
The number of factors or variables that influence the environment is a _____ dimension.
Simple-Complex
The alignment between a firms' internal resources and capabilities and external opportunities is called ____.
Strategic Fit
Which phase of strategic management involves the analysis of the general environment?
Strategic analysis
Strategic Management includes the following phases:
Strategic analysis, strategy formulation, strategy implementation, and strategy control/evaluation
Which phase of strategic management includes the assessment of how far the organization has achieved their goals?
Strategic control/evaluation
Allocating resources, recruitment, hiring, and training are parts of which phase of strategic management?
Strategy implementation
The 4 components of a SWOT analysis consist of ...
Strengths, Weakness, Opportunities, and Threats
This situation arises when a firm is not able to pursue generic-level strategies in their pure form but combines cost leadership and differentiation.
Stuck in the middle
An influence on firms to charge higher prices for materials is:
Suppliers Bargaining Power
What is an example of an interactive system?
Tactical day to day actions
This approach says strategy depends on the situation. There is no one best way of doing things.
The Contingency Approach
Environmental munificence can be defined as:
The availability of slack resources and the opportunities for firms to grow
Hall and Tolbert (2008) define organizational structure as the following:
The coordination of workflow and communication and management of authority relationships in an organization.
Which school of thought highlights planning as a formal step by step process driven by senior management?
The planning school
Environmental volatility can be defined as:
The rate of change related to factors in the external environment
Which one of the followings is NOT a traditional functional area of a H&T company especially at the operational/unit level?
The research and development function
In the spring of 2006, Six Flags shifted its focus to appeal to what type of guest?
affluent families who were likely to stay longer
The four main elements of strategic management are interdependent and dynamic. They are:
analysis, formulation, implementation, and control
The basic approach to interpreting a balance sheet is summed up by the following formula:
assets = liabilities + owners' equity
What type of system is encouraging of opportunity-seeking behavior but can disrupt the resources of an organization?
boundary
Which of the following is an example of Task-related selection criteria in franchisee selection?
brand name reputation
This concept is related to right and wrong decisions of individuals or firms.
business ethics
At which level is the firm's objective to sustain its advantage by focusing on efficiencies related to production, operations, administration, marketing, human resources, and other support functions?
functional level
The above-average profits a firm is able to generate from its business operations when compared to its competition.
competitive advantage
Which of the following are business ethics that need more attention in the H&T industry?
corporate tax avoidance Discrimination Safety and security
Objectives must be definite and linked to ______
goals
Strategic context is further divided into external and internal context. Which of the following is part of the external context?
environmental uncertainty
The ____ and social responsibilities build bridges between businesses and their stakeholders/communities.
ethical
According to Pett & Dibrell's (2001) model of strategic alliance formation, this stage involves the initial process of bringing together two or more firms in order to enable them to assess one another's strengths and weaknesses.
exploratory stage
An environment that includes firms, individuals, systems and institutions is known as ...
external environment
A centralized management structure facilitates decision-making, as employees are able to express their ideas openly and offer input for decision-making.
false
Business and Economic cycles do not impact the H&T industry.
false
Developing an appropriate organizational structure to facilitate the strategy development and implementation process is a bit overrated.
false
For a firm to be able to sustain its competitive advantage, there should be absolutely no ambiguity between its competencies and outcomes such as firm performance.
false
Harris Rosen opened his initial hotel by securing a large loan.
false
In strategic management the context refers to description, selection and justification of a certain strategy (or strategies).
false
In the strategic management field, the configurational school suggests one best way of doing things. According to this school of thought, you cannot use and combine different schools of thought in strategy development and implementation.
false
Managers look at the long-term visions of the operation.
false
Strategic management should be viewed only from the senior management perspective with emphasis on senior executives or the role of a leader. Middle managers and frontline employees have no role in this process.
false
The balance sheet is interpreted using the formula: liabilities = assets + owners' equity
false
The income statement is a document that helps leaders and investors identify the position of the firm within the industry by demonstrating the strengths and weaknesses of their assets, liabilities, and investor equity.
false
The strategic management literature clearly explains how far strategy formation in international firms differs from strategy formation in domestic firms.
false
