Management 428 midterm exam

Which of the following statements does the upper echelons theory support? -Organizational outcomes including strategic choices and performance levels reflect the values of external stakeholders -The leadership actions of executives are independent of their characteristics like age, education, and career experiences -strong leader ship is solely the result of innate abilities and not learning -executives interpret situations through the lens of their unique perspectives shaped by personal circumstances, values, and experiences

-executives interpret situations through the lens of their unique perspectives shaped by personal circumstances, values, and experiences

in which of the following cases was a company at a major competitive disadvantage? -facebook hired sheryl sandberg because mark zuckerberg, facebooks founder, lacked important business skills -without a clear strategic position, sears tried to be too many things for too many types of customers -sams club decided to prescreen its customers via required membership to establish creditworthiness

-without a clear strategic position, sears tried to be too many things for too many types of customers

According to the level 5 pyramid, the level 2 manager is a

Contributing team member

Which of the following statements is true of level 5 leadership pyramid -successful companies are led by level 1 executives -at level three managers are capable of devising a vision and mission to guide the firm toward superior performance -each level of leadership builds upon the previous one in the pyramid -once a manager moves to higher level he or she loses the qualities required in the previous levels to gain new ones

Each level of leadership builds upon the previous one in the pyramid

Within the context of strategic management it is important to understand that black swan event in the past have demonstrated that

Stakeholders can affect or be affected by firms actions

If a company chooses to keep it's vision customer oriented rather than product oriented, what will be the implication of that decision

The company will tend to be more flexible when adapting to changing environments

which of the following groups is most likely to be considered a firm's internal stakeholder? -creditors -customers -alliance partners -board members

board members

The pattern of faulty and biased decision making that occurs in groups whose members strive for argument at the expense of good decision making is called:

groupthink

When an organization briefly describes what they do and how they do it they have more than likely articulated their

mission statement

The annual net profit after taxes for Tele Corp., a multinational conglomerate, is $5.5 billion. As legal owners, which of the following stakeholder groups has the most legitimate claim on this profit? -managers -shareholders -local communities

shareholders

Which of the following does a firm possess when it can outperform other firms in the same industry or the industry average over a prolonged period of time? - consistent power position - long-term capital gain - strategic positioning - sustainable competitive advantage

sustainable competitive advantage

a good strategy should be able to provide products and services to customers at an attractive price point while maintaining internal costs resulting in

value creation

Which of the following statements about competitive advantage is not true? - A firm will have a sustainable competitive advantage when it outperforms its competitors over a prolonged period of time. - A firm can gain a competitive advantage by providing goods similar to its competitors' goods at a lower price. - A firm's competitive advantage is always absolute, not relative. - A firm's past performance does not guarantee its future performance.

A firm's competitive advantage is always absolute, not relative.

Revved Rider Inc., a motorcycle company, is the market leader due to its superior engine technology and service orientation. These unique qualities have helped the company generate revenues that are consistently higher than other firms in the same industry. Which of the following can be concluded about Revved Rider Inc. from this scenario? - It has a direct investment in the other firms. - It has a competitive advantage over the other firms. - It has an exchange relationship with the other firms. - It has competitive parity with the other firms.

It has a competitive advantage over the other firms.

And organizations ____________ describes what the organization actually does— The products and services at Plans to provide, and the markets in which it will compete

Mission

_____________ Is best described as executives use of power and influence to direct the activities of others when pursuing organizational goals

Strategic leadership

A diagnosis of the competitive challenge, an element of a good strategy, is primarily accomplished through strategy

analysis

According to the upper-echelons theory,

organizational outcomes reflect the values of the top management team.

Which of the following questions would a firm's business strategy ideally answer -how should we compete -where should we compete -why should we compete -how should we implement the functional strategy

How should we compete

A firm's ____________ strategy is likely to fall by the wayside of unpredictable events and turn into unrealized strategy

Intended

Larry has been recently promoted to the position of a team lead at an insurance company. This promotion was based on his boss's assessment that Larry is capable of conveying the company's vision and mission to groups. As a result, he can guide groups to superior performance. From this scenario, we can say that Larry is currently at _____ of the Level-5 leadership pyramid.

Level 4

A firm is likely to have a competitive advantage when it - performs at a level similar to the other firms in the industry. - provides goods similar to those of its competitors, but at a higher price. - provides services that consumers will value more than those of its rivals. - minimizes the difference between value creation and the costs involved.

provides services that consumers will value more than those of its rivals.

Quick Eats is a fast-food restaurant that has recently entered the hospitality industry. Since most of its competitors are pursuing a low-cost position and doing well, Quick Eats also wants to adopt the same strategy. Which of the following will be a likely implication of this decision? - Quick Eats will face low profit potential. - Quick Eats will be able to create higher value for its customers. - Quick Eats will be better placed to gain a competitive advantage in the industry. - Quick Eats will not face any direct competition in the industry.

Quick Eats will face low profit potential.

Which of the following has contributed to Tesla's competitive advantage in terms of stock appreciation? - copying the most popular features of competitors' vehicles - reinvesting profits to continually design and produce better electric vehicles - keeping its proprietary technologies secret - using inexpensive materials to keep costs low

reinvesting profits to continually design and produce better electric vehicles

-An integrated management field -combines analysis, formulation, and implementation in the quest for competitive advantage -enables you to: -view a firm in its entirety -think like a general manager -position your organization for superior performance

Strategic management

this statement will effectively guide a strategist?

The principles of strategic management can be applied universally to all organizations.

Which of the following statements is true of customer oriented visions?

They define a business in terms of providing solutions to people's needs.

is an important tool because it allows a manager to recognize, prioritize, and address the needs of various stakeholders.

stakeholder impact analysis

all of the following are examples of in internal stakeholders except? -employees -stockholders -board members -suppliers

suppliers

which of the following groups will not be considered a company's internal stakeholder? -suppliers -board members -shareholders -managers

suppliers

Why are black swan events such as accounting scandals and the global financial crisis perceived as caused by cheap credit and subprime mortgages offered by financial institutions, bad for business?

they erode the implicit trust between the corporate world and society

Which of the following statements accurately brings out the difference between an organizations vision and mission?

Vision defines what the organization wants to accomplish ultimately, whereas the mission defines the means by which vision is accomplished.

Organizational core values are the answer to which of the following questions

What commitments do we make to act both legally and ethically?

A company's vision primarily States

What the company wants to ultimately accomplish

which of the following statements related to a firms stakeholders is not true -if internal or external stakeholders withhold participation in the firms exchange relationships, it can have severe negative performance implications -a firms stakeholders include organizations and groups along with individuals who can affect or be affected by the firms actions -While external stakeholders are those who make contributions toward the firm, internal stakeholders are those who reap all the benefits.

While external stakeholders are those who make contributions toward the firm, internal stakeholders are those who reap all the benefits.

How has Walmart staked out a unique strategic position?

by cutting costs to offer lower prices than competitors.

Which of the following statements is true of strategy? - Statements of desire, on their own, are strategy. - Tactical tools that are a part of a firm's functional and global initiatives are strategy. - Operational effectiveness and competitive benchmarking are strategy. - Actions that allow a firm to address a competitive challenge are strategy.

Actions that allow a firm to address a competitive challenge are strategy.

all of the following below are examples of external stakeholders except? -employees -government -communities -customers

employees

The metaphor of a black swan best applies to

events that are considered highly unexpected and highly impactful when they do occur.

which of the following is a philanthropic responsibility of a firm? -not infringing on other firms' patents -providing products at appropriate prices -exhibiting corporate citizenship -obeying government regulations

exhibiting corporate citizenship

Gadgets n' Stuff Inc. is a vendor who supplies machine parts to an appliance manufacturing company. In return, Gadgets n' Stuff Inc. relies on the company for its revenue and is affected by any decisions taken by the company. In this scenario, gadgets n' stuff Inc. is a(n) _________ for the appliance manufacturing company.

external stakeholder

Product oriented vision statements provide managers with

goals to improve service.

The greater the difference between value creation and cost, the

greater a firm's economic contribution.

which of the following is a stakeholder attribute that managers should consider at every step in a stakeholder impact analysis? -supremacy -legitimacy -literacy -solvency

legitimacy

When a firm integrates the competitive strategies of cost-leadership and differentiation, it will most likely result in

trade-offs that work against each other.