Question 1

While working to prioritize and fulfill their responsibilities,members of an organization's board of directors should

Accepted Answer

A)   represent their own interests.
B)   represent the interests of the shareholders.
C)   direct all actions of the CEO.
D)   emphasize the importance of short-term goals.E) B) and D)
F) A) and D)

Question 2

Discuss what is meant by recognizing trade-off between efficiency and effectiveness and provide an example of how this attribute of strategic management could influence the strategic decisions of a firm.

Accepted Answer

Efficiency involves the wise use of reso...

Question 3

According to Henry Mintzberg,the realized strategies of a firm

Accepted Answer

A)   are a combination of deliberate and emergent strategies.
B)   are a combination of deliberate and differentiation strategies.
C)   must be based on a company's strategic plan.
D)   must be kept confidential for competitive reasons.E) A) and B)
F) A) and C)

Question 4

As firms work to become more efficient and effective in the global business environment,they are forced to continually innovate.Innovation in an organization

Accepted Answer

A)   will always increase a firm's performance.
B)   may enhance or destroy a firm's capabilities.
C)   should not be pursued by industry leaders.
D)   happens only incrementally.E) A) and B)
F) All of the above

Question 5

Intellectual capital is becoming increasingly important in today's economy.It is a concern of managers throughout organizations.

Accepted Answer

A) True 
 B)False

Question 6

Shareholders in a company are the only individuals with an interest in the financial performance in the company.

Accepted Answer

A) True 
 B)False

Question 7

Stakeholders are

Accepted Answer

A)   a new way to describe shareholders.
B)   individuals, groups, and organizations who have a stake in the success of the organization.
C)   creditors who hold a lien on the assets of the organization.
D)   attorneys and their clients who sue the organization.E) A) and B)
F) B) and C) B

Question 8

Wellpoint Health Networks states: "Wellpoint will redefine our industry: through a new generation of consumer-friendly products that put individuals back in control of their future." This is an example of a

Accepted Answer

A)   strategic objective.
B)   vision statement.
C)   vague statement of direction.
D)   line manager's individual goal.E) B) and C)
F) All of the above

Question 9

A firm has a variety of different stakeholders.Identify several possible stakeholders a firm may have and discuss how the firm may achieve stakeholder symbiosis.

Accepted Answer

Stakeholders include suppliers...

Question 10

Symbiosis is the ability to recognize interdependencies among the interests of multiple stakeholders within and outside an organization.

Accepted Answer

A) True 
 B)False

Question 11

Sears has developed a sophisticated quantitative model and found that there were positive relationships between employee satisfaction,customer satisfaction,and financial results.According to the text,this is an example of

Accepted Answer

A)   zero-sum relationship among stakeholders.
B)   stakeholder symbiosis.
C)   rewarding stakeholders.
D)   emphasizing financial returns.E) None of the above
F) C) and D)

Question 12

The four key attributes of strategic management include all of the following except

Accepted Answer

A)   including multiple stakeholder interests in decision making.
B)   incorporating both short-term and long-term perspectives.
C)   recognizing the trade-offs between effectiveness and efficiency.
D)   emphasis on the attainment of short-term objectives.E) All of the above
F) None of the above

Question 13

Globalization is the flow of capital,people,and information throughout the world.

Accepted Answer

A) True 
 B)False

Question 14

Social responsibility is the idea that organizations are not only accountable to shareholders but also to the community at large.

Accepted Answer

A) True 
 B)False

Question 15

According to the text,the "triple bottom line" approach to corporate accounting includes which three components

Accepted Answer

A)   financial, environmental, and customer.
B)   financial, organizational, and customer.
C)   financial, environmental, and social.
D)   financial, organizational, and psychological.E) None of the above
F) C) and D) C

Question 16

According to the text,a mission statement is an overarching statement that is massively inspiring,long-term,and only discusses the purpose of the company.

Accepted Answer

A) True 
 B)False

Question 17

Many organizations have a large number of functional areas with very diverse,and sometimes competing,interests.Such organizations will be most effective if

Accepted Answer

A)   each functional area focuses on achieving their own goals.
B)   functional areas work together to attain overall goals.
C)   goals are defined at the bottom and implemented at the top.
D)   management and employees have separate goals.E) B) and D)
F) A) and B)

Question 18

The hierarchy of organizational goals is in this order (least specific to most specific)

Accepted Answer

A)   vision statements, strategic objectives, and mission statements.
B)   mission statements, strategic objectives, and vision statements.
C)   vision statements, mission statements, and strategic objectives.
D)   mission statements, vision statements, and strategic objectives.E) A) and B)
F) B) and D) C

Question 19

Firms must be concerned with many types of capital.In the broader sense,these could include

Accepted Answer

A)   employee goals.
B)   organizational vision.
C)   mission statements.
D)   ecological, material, and social.E) C) and D)
F) B) and D)

Question 20

Organizational goals and objectives should be vague in order to allow for changes in strategy.

Accepted Answer

A) True 
 B)False

Exam 1: Strategic Management: Creating Competitive Advantages

While working to prioritize and fulfill their responsibilities,members of an organization's board of directors should

Correct AnswerverifiedShow Answer

Discuss what is meant by recognizing trade-off between efficiency and effectiveness and provide an example of how this attribute of strategic management could influence the strategic decisions of a firm.

Correct AnswerverifiedEfficiency involves the wise use of reso...View AnswerShow Answer

According to Henry Mintzberg,the realized strategies of a firm

Correct AnswerverifiedShow Answer

As firms work to become more efficient and effective in the global business environment,they are forced to continually innovate.Innovation in an organization

Correct AnswerverifiedShow Answer

Intellectual capital is becoming increasingly important in today's economy.It is a concern of managers throughout organizations.

Correct AnswerverifiedShow Answer

Shareholders in a company are the only individuals with an interest in the financial performance in the company.

Correct AnswerverifiedShow Answer

Stakeholders are

Correct AnswerverifiedB

Wellpoint Health Networks states: "Wellpoint will redefine our industry: through a new generation of consumer-friendly products that put individuals back in control of their future." This is an example of a

Correct AnswerverifiedShow Answer

A firm has a variety of different stakeholders.Identify several possible stakeholders a firm may have and discuss how the firm may achieve stakeholder symbiosis.

Correct AnswerverifiedStakeholders include suppliers...View AnswerShow Answer

Symbiosis is the ability to recognize interdependencies among the interests of multiple stakeholders within and outside an organization.

Correct AnswerverifiedShow Answer

Sears has developed a sophisticated quantitative model and found that there were positive relationships between employee satisfaction,customer satisfaction,and financial results.According to the text,this is an example of

Correct AnswerverifiedShow Answer

The four key attributes of strategic management include all of the following except

Correct AnswerverifiedShow Answer

Globalization is the flow of capital,people,and information throughout the world.

Correct AnswerverifiedShow Answer

Social responsibility is the idea that organizations are not only accountable to shareholders but also to the community at large.

Correct AnswerverifiedShow Answer

According to the text,the "triple bottom line" approach to corporate accounting includes which three components

Correct AnswerverifiedC

According to the text,a mission statement is an overarching statement that is massively inspiring,long-term,and only discusses the purpose of the company.

Correct AnswerverifiedShow Answer

Many organizations have a large number of functional areas with very diverse,and sometimes competing,interests.Such organizations will be most effective if

Correct AnswerverifiedShow Answer

The hierarchy of organizational goals is in this order (least specific to most specific)

Correct AnswerverifiedC

Firms must be concerned with many types of capital.In the broader sense,these could include

Correct AnswerverifiedShow Answer

Organizational goals and objectives should be vague in order to allow for changes in strategy.

Correct AnswerverifiedShow Answer

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Efficiency involves the wise use of reso...
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B

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Stakeholders include suppliers...
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C

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C

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