Strategic Management Ch 12 MC
a. an assessment center operated by an external consulting firm evaluates company managers for promotion potential.
b. a new vice president of marketing is hired from a competitor. c. the senior vice president of finance is promoted to CEO.
d. a vice president of human resources is sent to a university executive MBA program for professional development.
c. operational d. innovational
a. monitoring the hiring of key employees and focusing on growth but not learning initiatives. b. designing and then implementing the balanced scorecard.
c. setting appropriate financial targets and establishing an effective business level synergy. d. determining strategic direction and establishing balanced organizational controls.
a. managerial opportunism. b. white-collar crime.
c. vindictive disloyalty. d. an act of courage.
a. effective communication.
b. effective performance appraisals.
c. adherence to the firm’s traditional core values. d. an appropriate reward system.
a. Appointing many outside board members. b. Increasing the firm’s sales.
c. Increasing the homogeneity of the top management team. d. Training and development programs.
a. high; social; low; human b. high; human; high; social c. high; human; low; social
d. None of these options are correct.
b. charismatic c. inspirational
b. similar commitments to the organization’s core ideology and culture. c. a high level of education and industry expertise.
d. long tenure in the organization who have held various functional positions.
a. If Clarita Cosmetics lays off a large number of employees, there will be a significant loss of human capital that will cause further downturns in the firm’s performance.
b. A moderate-sized layoff at Clarita Cosmetics will probably improve firm performance.
c. If Clarita Cosmetics restructures, it ought to increase investments in training and development.
d. A layoff will increase the slack at Clarita Cosmetics and allow the firm to absorb the increased number of errors employees may make until they learn their new tasks.
b. human capital c. technology
d. organizational culture
b. overemphasize strategic control and neglect financial controls.
c. overemphasize strategic and financial controls and neglect ethical controls.
d. neglect short-term controls of all kinds in favor of long-term strategic controls.
a. high levels of honesty, trustworthiness, and integrity. b. high emotional intelligence.
c. Both A and B are correct. d. low tolerance for ambiguity.
a. higher firm performance
b. innovation and strategic change
c. diminished debate among top managers d. better strategic decisions
a. the parameters within which strategies are to be implemented. b. goals and objectives that must be achieved.
c. information on action steps to be taken to implement the corporate strategy. d. managers with guidelines on how to treat employees.
a. CEO duality is associated with high CEO power.
b. CEO duality has been blamed for slow response to change by the organization. c. CEO duality is relatively rare in the U.S. except in large Fortune 500 firms.
d. If the CEO acts a steward, CEO duality facilitates effective decisions and actions.
a. Effectively Managing the Firm’s Resource Portfolio. b. Determining Strategic Direction.
c. Regulating and Controlling Employees.
d. Sustaining an Effective Organizational Culture.
b. developing an entrepreneurial mind set.
c. specifying the vision and the strategy to achieve that vision over time. d. exploiting and maintaining core competencies.
a. a new CEO hired from outside the firm but within the industry
b. internal CEO succession and a homogeneous top management team
c. external CEO succession and a heterogeneous top management team d. a new CEO hired from outside the industry
a. more difficult it will be for the team to implement strategies. b. more likely it is that the team will be cohesive.
c. less innovative the team’s decisions will tend to be. d. less diverse the team membership will be.
a. tendency to engage in new ideas and creative processes.
b. willingness to allow employees to take actions free of organizational constraints. c. ability to be a leader in the marketplace.
d. propensity to take actions that allow it to outperform rivals consistently and substantially.
a. more effective strategic control
b. greater influence on board decisions c. more limited perspective
d. a broader knowledge base
a. create more heterogeneous top management teams. b. focus on their core customer base.
c. implement transformational leadership.
d. emphasize the training and development of internal managerial talent.
a. heterogeneous group of advisors selected by the CEO. b. CEO and chairperson of the board.
c. key individuals who are responsible for selecting and implementing a firm’s strategy. d. officers listed in a firm’s annual report and the board of directors.
b. level of education.
c. tolerance for ambiguity. d. length of tenure.
a. Once a corporate culture is developed, strategic leaders can focus on other activities.
b. A strategy that is historically new for a firm should be implemented by incremental changes in the organization’s culture.
c. A central task of strategic leaders is to revise the corporate culture on an annual basis after analyzing the changes occurring in the competitive environment.
d. Organizational culture can be a source of competitive advantage because it influences employee behavior and how the firm’s conducts its business.
a. there is considerable CEO turnover in North American and European firms hence the need for succession plans.
b. IBM has a succession plan for CEO Sam Palmisano.
c. most formal succession plans call for the use of executive search firms. d. over 90 percent of firms have succession plans.
a. managerial model
b. holistic control system c. balanced scorecard
d. internal auditing system
a. innovativeness. b. risk taking.
d. competitive autonomy.
b. higher the corporation’s performance is.
c. more rapidly executive decisions can be make.
d. more difficult it becomes to make effective executive decisions.
a. the net present value of the future competencies of the workforce.
b. the amount of money purchasers of the firm would pay for the continuing employment of the present workforce.
c. the value-added that the firm’s workforce contributes to each product produced or service rendered. d. knowledge and skills of the firm’s work force.
a. revenues; costs
b. long-term financial outcomes; short-term financial performance c. content; outcomes
d. outcomes; content
a. customer. b. employee.
d. general society.
b. likely that product innovation will continue. c. likely there will be a change in strategy.
d. unlikely the new CEO will have a long tenure.
a. relying on the fundamental goodness of individuals.
b. using reward systems that recognize acts of courage.
c. communicating goals that describe the firm’s ethical standards.
d. creating a work environment where individuals are treated with dignity.
a. internal CEO with short tenure.
b. external CEO with a heterogeneous top management team.
c. dual CEO/chairperson with a homogenous top management team. d. CEO with long tenure who has a strong sense of hubris.
a well-known company. Although this company has been highly successful since 1995, Charles has heard persistent rumors of overly aggressive marketing tactics, questionable reporting of sales data, and an atmosphere of
intolerance of criticism. The CEO is a powerful and charismatic individual, who built the company from a small regional firm to an international powerhouse in only a decade. The other top managers have been hand-picked by the CEO, as have a number of the members of the board of directors. The salary for this position is very high and includes generous stock options. It would be a major step up in Charles’s career and would position him to move to CEO of another company in the future. Charles has prided himself on his high moral values and is viewed as an exceptionally ethical person by his peers. What should Charles do?
a. Charles should take the job because he can effect real change in the culture of the organization, and take advantage of the personal financial and career opportunities.
b. Charles should realize that personal moral values and the realities of the corporate world differ in both quality and degree. Consequently, he can take a job in an ethically borderline company without tainting his personal moral standing.
c. Charles should not rely on rumors to dissuade him from making an advantageous career decision.
d. Charles should not take the job because the culture of the organization is set by the CEO and other top managers. He would have little influence on the organizational culture as one of many top managers.
b. top management team. c. CEO.
b. financial resources
c. responses to competitors’ actions d. investment strategies
c. Visionary d. Cultural
a. characteristics of the manager
b. characteristics of the organization
c. cohesiveness of the board of directors d. the external environmental
a. there is CEO duality.
b. many of the members of the board of directors are outsiders.
c. the positions of chairman of the board and CEO are held by different persons. d. there is an independent board leadership structure.
a. adhesion to the status quo.
b. lack of an envisioned future.
c. competence becoming a liability.
d. failure to have a clear core ideology.
a. asset utilization improvements.
b. improvements in employee morale. c. increases in employee skills.
d. changes in turnover rates.
b. whether he or she is also the chairperson of the board of directors. c. his or her long tenure with the firm.
d. the level of social capital in the firm.
a. a failure of succession management. b. managerial hubris.
c. the risk inherent in CEO duality.
d. excessive reliance on the internal managerial labor market.
a. increase the number of employees in the firm. b. reduce organizational slack.
c. maximize current productivity per employee.
d. develop a workforce capable of continuous learning.
firm’s ethical ___ is the most effective means of ensuring that employees comply with the requirements.
a. a written code of ethics
b. a statement in the firm’s mission statement
c. a speech on ethics by the CEO of the company d. a value-based culture
a. autonomy b. reactivity c. risk taking
a. core ideology.
b. organizational culture. c. strategy.
d. envisioned future.
a. top management team b. board of directors
d. governance circle
a. industry structure. b. corporate culture.
c. market growth rate.
d. potential for product differentiation.
a. Internal hiring results in an increased level of innovation.
b. Insiders are familiar with the firm’s products, markets, technologies, and operating procedures. c. Use of the internal labor market reduces turnover among existing employees.
d. Insiders are more familiar with a firm’s operating procedures.
b. a core competency. c. flexibility.
a. when many of the outside directors are appointed by the CEO. b. when the CEO is also the chairman of the board.
c. when tenure of the top management team is shorter than the tenure of the board. d. the fact that inside board members report to the CEO.
a. entrepreneurial b. financial
d. learning and growth
provide information about the results of past actions, but do not communicate the drivers of the firm’s future performance.
a. Financial controls
b. Accounting information systems c. Policies and procedures
d. Strategic feedback systems
a. Sony’s top management team will be more heterogeneous with the addition of Sir Howard.
b. Sir Howard will have a broader perspective of the firm and its competitive environment than would a Sony insider.
c. If Sony’s top management team is homogeneous, Sir Howard’s future impact on Sony’s strategy is ambiguous.
d. The decision-making process on Sony’s top management team will be smoother and faster with the addition of Sir Howard.
b. depreciating asset.
c. resource to be maximized. d. renewable asset.
a. core ideology.
b. envisioned future.
c. organizational culture. d. business strategy.
a. extensive financial assets
b. transformational leadership c. high-quality human capital
d. an ethical organizational culture
a. the members of the board of directors. b. top management team members.
c. the CEO, top managers, and middle managers. d. rank-and-file employees.
a. firms where there is both a president and a CEO.
b. CEOs who sit on the board of directors of other firms. c. CEOs who hold office in more than one company.
d. the situation where the CEO is also chairperson of the board of directors.
a. establishing a code of conduct.
b. disseminating the code of conduct to all stakeholders to inform them of the firm’s ethical standards and practices.
c. creating a work environment in which people are treated with dignity. d. disciplining whistle-blowers.