A True B False Answer: False Diff: 3 Type: TF Skill: Recall 4 Because organizations are complex, management must rely on only one of the planned, visioned, and discovered approaches to
Trang 1Chapter 2: The Process of Strategic Leadership
1) The Xerox near monopoly was first challenged by Microsoft
A) True
B) False
Answer: False
Diff: 1 Type: TF Skill: Recall
2) The single most important component of Xerox’s turnaround strategy was
communication
A) True
B) False
Answer: True
Diff: 1 Type: TF Skill: Recall
3) Xerox management reduced costs by $600 million largely by reducing research and development costs
A) True
B) False
Answer: False
Diff: 3 Type: TF Skill: Recall
4) Because organizations are complex, management must rely on only one of the
planned, visioned, and discovered approaches to strategic leadership
A) True
B) False
Answer: False
Diff: 1 Type: TF Skill: Recall
5) The decisions about strategic leadership are made at the very top of the organization
A) True
B) False
Answer: True
Diff: 1 Type: TF Skill: Recall
6) Strategic leadership is exercised more by top individuals than teams of top executives
Trang 27) The concept of fit has also been called coherence
A) True
B) False
Answer: True
Diff: 2 Type: TF Skill: Recall
8) When decisions are made that do not line up with the initial decisions, this is called
“stretching the organization.”
A) True
B) False
Answer: False
Diff: 3 Type: TF Skill: Recall
9) Matsushita is making changes in role, investment, and organization These changes will “fit together” if the organization performs better
A) True
B) False
Answer: True
Diff: 3 Type: TF Skill: Application
10) Misfits, as long as they are strategically important, will not cause poor performance now or in the future
A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
11) A misfit is a resource decision that does not fit with the organization’s strategy
A) True
B) False
Answer: True
Diff: 1 Type: TF Skill: Recall
12) If a company invests money to move into a new market but does nothing to
differentiate itself from competitors, this is a misfit
Trang 313) According to the planned process, lower managers put a strategy in place to move the business where it needs to be
A) True
B) False
Answer: False
Diff: 1 Type: TF Skill: Recall
14) The planned process implies low certainty about what needs to be done
A) True
B) False
Answer: False
Diff: 1 Type: TF Skill: Recall
15) The drawback of the planned process is that it cannot be applied at the functional and product levels
A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
16) The appeal of the planned process is that it can be applied at all levels of strategy
A) True
B) False
Answer: True
Diff: 2 Type: TF Skill: Recall
17) The planned process can use both quantitative and qualitative analysis
A) True
B) False
Answer: True
Diff: 1 Type: TF Skill: Recall
18) The compatibility between relationships within strategy, resources and capabilities, and the environment is known as fit
Trang 419) The first step in any strategic analysis is always to describe the current strategy
A) True
B) False
Answer: False
Diff: 1 Type: TF Skill: Recall
20) A mission is a description of what the business is doing
A) True
B) False
Answer: True
Diff: 1 Type: TF Skill: Recall
21) The planned process is adept at dealing with uncertainty and complexity
A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
22) The planned process is attractive because it allows management to consider how to make the business both efficient and effective
A) True
B) False
Answer: True
Diff: 1 Type: TF Skill: Recall
23) Alternatives should not be mutually exclusive
A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
24) The implementation of a planned strategic solution has lower risk due to certainty
A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
25) A contingency plan helps to minimize risk by being an alternative if the plan is not being achieved
A) True
Trang 5B) False
Answer: True
Diff: 2 Type: TF Skill: Recall
26) The resources needed for implementation are analyzed before providing alternative strategic solutions
A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
27) E.D Smith and Sons Ltd decided to buy a plant in the U.S so that they could
quickly manufacture products for Loblaw International Merchants
A) True
B) False
Answer: True
Diff: 1 Type: TF Skill: Recall
28) Thanks in part to E.D Smith, the President’s Choice merchandising program was a success in the U.S
A) True
B) False
Answer: False
Diff: 1 Type: TF Skill: Recall
29) The expansion of Loblaw International Merchants into the U.S gave E.D Smith an alliance opportunity that allowed for easier access into the American market
A) True
B) False
Answer: True
Diff: 1 Type: TF Skill: Recall
30) Vision is a simple statement or understanding of what the firm will be in the future
A) True
B) False
Answer: True
Diff: 2 Type: TF Skill: Recall
31) Vision statements inform managers and employees of the firm's direction
Trang 6A) True
B) False
Answer: True
Diff: 2 Type: TF Skill: Recall
32) Vision statements have little effect unless stakeholders are willing to participate in pursuing them
A) True
B) False
Answer: True
Diff: 2 Type: TF Skill: Recall
33) Vision statements enable organizations the flexibility to change strategy or
implementation tactics since it does not impose conditions on how the business gets there
A) True
B) False
Answer: True
Diff: 1 Type: TF Skill: Recall
34) Clearly articulated vision statements may be used as substitutes for strategy
A) True
B) False
Answer: False
Diff: 3 Type: TF Skill: Recall
35) The visioning process is less important than the vision statement
A) True
B) False
Answer: False
Diff: 1 Type: TF Skill: Recall
36) Better vision statements are usually simple and brief
A) True
B) False
Answer: True
Diff: 1 Type: TF Skill: Recall
37) The key steps of the visioning process are to establish the pre-conditions needed for visioning to be successful, create the vision, sell the vision and express the vision
Trang 7A) True
B) False
Answer: False
Diff: 1 Type: TF Skill: Recall
38) Because they are general and ambiguous, vision statements serve little strategic purpose
A) True
B) False
Answer: False
Diff: 3 Type: TF Skill: Application
39) Anne Mulcahy provided Xerox employees with a fictitious description of what the company had become in the future This is an example of a vision
A) True
B) False
Answer: True
Diff: 3 Type: TF Skill: Application
40) A visioning exercise cannot begin without all six pre-conditions being established
A) True
B) False
Answer: True
Diff: 1 Type: TF Skill: Recall
41) Most often the vision is initiated by one person
A) True
B) False
Answer: True
Diff: 1 Type: TF Skill: Recall
42) To behave in ways consistent with the vision is to sell the vision
A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
43) The ability to translate a vision into behaviours for workers at all levels is the biggest strength of the visioned process
A) True
Trang 8B) False
Answer: False
Diff: 2 Type: TF Skill: Application
44) Tunnel vision trap occurs when the vision drives the actions of management even
though it is no longer achievable
A) True
B) False
Answer: True
Diff: 1 Type: TF Skill: Recall
45) The discovered process includes people throughout the company generating strategy
A) True
B) False
Answer: True
Diff: 1 Type: TF Skill: Recall
46) Strategic decision-makers may not appreciate the full implications of their decisions within the discovered process of strategic leadership
A) True
B) False
Answer: True
Diff: 2 Type: TF Skill: Recall
47) Strategic innovation is a key feature of the discovered process
A) True
B) False
Answer: True
Diff: 3 Type: TF Skill: Application
48) The discovered process focuses on the decision making as opposed to the results of the decisions
A) True
B) False
Answer: False
Diff: 1 Type: TF Skill: Recall
49) Honda’s decision to compete in smaller motorcycles in the U.S market based on the initial reactions of consumers was a form of organizational learning
A) True
Trang 9B) False
Answer: True
Diff: 2 Type: TF Skill: Recall
50) A business strategy that evolves over time benefits those with the best information about the market opportunities
A) True
B) False
Answer: True
Diff: 2 Type: TF Skill: Application
51) With innovation often coming from employees in the discovered process, top
management plays little role in orchestrating the process
A) True
B) False
Answer: False
Diff: 3 Type: TF Skill: Recall
52) Continuous innovation requires structure and few mistakes
A) True
B) False
Answer: False
Diff: 1 Type: TF Skill: Recall
53) Cross-fertilization is putting employees together with customers
A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
54) In a fragmented industry, conditions are less dynamic and require more of a planned approach
A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
55) When management fails to impose rationale on the innovations the business accepts and builds, it is known as “fail early, fail often.”
A) True
Trang 10B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
56) Management can treat innovative solutions as tentative until they prove themselves This will generate more ideas than sorting solutions based on the effort needed to install the solution
A) True
B) False
Answer: False
Diff: 3 Type: TF Skill: Recall
57) Innovation requires justifying mistakes
A) True
B) False
Answer: False
Diff: 1 Type: TF Skill: Recall
58) Using the planned, visioned, and discovered processes at the same time is feasible
A) True
B) False
Answer: True
Diff: 1 Type: TF Skill: Recall
59) The great catalyst within Dofasco to reinvent the company was technology
A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
60) The most effective strategic leadership uses a singular process to lead
A) True
B) False
Answer: False
Diff: 1 Type: TF Skill: Recall
61) Human factors influence strategic leadership processes primarily at the start of the process
A) True
B) False
Trang 11Answer: False
Diff: 1 Type: TF Skill: Recall
62) Cognition is a bias that impacts how humans reach decisions
A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
63) Cognition is the process of thought, including perception and reason but not memory
A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
64) Prior hypothesis bias allows decision makers to use information that is inconsistent
with their beliefs
A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
65) Traditional music companies using enforcement of their copyrights to bring
customers back to them is an example of escalating commitment
A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
66) If an executive assumes that the decision variables for diversifying into a new market will be the same as with previous successful diversifications, this is an example of prior hypothesis bias
A) True
B) False
Answer: True
Diff: 2 Type: TF Skill: Recall
67) Escalation of commitment is a person's belief that he or she is in greater control of a situation than rational analysis would support
A) True
Trang 12B) False
Answer: False
Diff: 3 Type: TF Skill: Recall
68) The phrase escalation of commitment indicates that committing more resources to a
failing strategy is an irrational decision
A) True
B) False
Answer: True
Diff: 2 Type: TF Skill: Recall
69) Escalating commitment is based more on a rational commitment of resources than the feeling of personal responsibility for the strategy
A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
70) When a decision maker thinks back to a previous decision to transfer lessons to the
present situation, he or she is using the prior hypothesis bias
A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Application
71) Reasoning by analogy is weakest when the two situations are similar in superficial ways
A) True
B) False
Answer: True
Diff: 1 Type: TF Skill: Recall
72) The supermarket is an example of a retail format that was used as an analogy by future retailers
A) True
B) False
Answer: True
Diff: 1 Type: TF Skill: Recall
73) The dot-com crash in 2000 was due in a large part to the illusion of control
Trang 13A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
74) The tendency of the decision maker to overestimate their ability to control events based on a strong prior belief about the relationship between the two decision
variables is an example of the illusion of control
A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
75) “Using power” and “playing politics” have no place in managing an organization
A) True
B) False
Answer: False
Diff: 1 Type: TF Skill: Recall
76) If centralized decision making seems to be orderly and rational, politics must not be
in play
A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
77) An effective tactic is more morally correct than an ineffective tactic
A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
78) Escalation of commitment could be due to groupthink
A) True
B) False
Answer: True
Diff: 3 Type: TF Skill: Application
79) A Board of Directors may have a mandate top pursue newer technologies This
mandate is a form of organizational power and politics
Trang 14A) True
B) False
Answer: True
Diff: 2 Type: TF Skill: Application
80) The best strategic decisions are based in part on values
A) True
B) False
Answer: True
Diff: 1 Type: TF Skill: Recall
81) A leader’s values will impact the choice of arenas or vehicles he or she tends to utilize in strategic decision making
A) True
B) False
Answer: True
Diff: 2 Type: TF Skill: Recall
82) If values are used as a benchmark for employee behaviour and company
performance, they give management indirect control over people’s behaviour
A) True
B) False
Answer: True
Diff: 2 Type: TF Skill: Recall
83) The level of ethical behaviour in an organization is set by ethical codes and not the business leaders
A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
84) The issue of what is “right” is becoming easier as businesses become global and populations more diverse
Trang 1585) The challenge with ethics is not determining which set of values is “right,” but which corporations should develop codes of ethical behaviour
A) True
B) False
Answer: False
Diff: 2 Type: TF Skill: Recall
86) The Xerox turnaround plan featured all of the following actions except?
A) aggressively reducing costs
B) outsourcing research and development
C) improving productivity in operations
D) reducing the amount of risk faced
Answer: B
Diff: 1 Type: MC Skill: Recall
87) According to the text, Xerox mixed together which of the following three approaches
to strategic leadership?
A) discovered, visioned, and planned
B) intended, discovered, and visioned
C) realized, visioned, and planned
D) realized, intended, and visioned
Answer: A
Diff: 1 Type: MC Skill: Recall
88) Strategic leadership is managing an overall enterprise and influencing key
Diff: 1 Type: MC Skill: Recall
89) Strategic leadership is concerned with the following except:
Diff: 1 Type: MC Skill: Recall
90) “Fit” has also been called
Trang 16Diff: 1 Type: MC Skill: Recall
91) Matsushita’s plan was to adapt to the business environment’s changing requirements
in all of these areas except:
Diff: 1 Type: MC Skill: Recall
92) Matsushita planned to become a super manufacturing company by doing all of the following except:
A) expansion of R&D and IT
B) becoming interactive with customers
C) providing solutions instead of goods
D) moving from a flat organization to a pyramid
Answer: D
Diff: 1 Type: MC Skill: Recall
93) The planned process is also known as the approach
Diff: 1 Type: MC Skill: Recall
94) The planned approach implies relatively _ certainty about what needs to be done and works well in situations
Trang 1795) Strategic leadership is typically overseen by the board of directors, and usually
involves which of the following company employees?
Diff: 2 Type: MC Skill: Recall
96) The planned process involves analyzing the external environment, which is subject to driving forces Which of the following is not a driving force of evolution?
Diff: 1 Type: MC Skill: Recall
97) Implementing a strategic solution requires identifying the necessary changes
to all of the following except:
Diff: 2 Type: MC Skill: Recall
98) As a part of implementation, _ are developed to overcome the riskiest aspects of the choice
Diff: 2 Type: MC Skill: Application
99) The weakness of the planned process is that the necessary are not always available to do complete analysis
A) tools
B) employees
C) concepts
D) information
Trang 18Answer: B
Diff: 2 Type: MC Skill: Recall
100) Which of the following is not a question that Informix CEO Robert Finocchio could ask of his company to determine whether it was acting ethically?
A) Are our reward structures appropriate?
B) Do we face new technological challenges?
C) How will we measure our performance?
D) Do we face new legal requirements?
Answer: B
Diff: 1 Type: MC Skill: Recall
101) Loblaw International Merchants intended to license its President’s Choice
merchandising program in the U.S Which of the following was not a factor of economic logic for E.D Smith to consider an alliance with Loblaw’s?
A) E.D Smith’s national licenses for half of the sauces it sold
B) E.D Smith’s declining volume in national brands
C) E.D Smith’s national brand losing market position against larger US
competitors
D) E.D Smith’s reliance on Loblaw’s for controlled labels
Answer: A
Diff: 3 Type: MC Skill: Recall
102) The U.S market was most attractive to E.D Smith and Loblaw’s due to which of the following factors?
A) U.S food retailers were regional companies
B) U.S customers were not familiar with the E.D Smith brand
C) the large U.S.-based competitors were driving down prices and profitability D) the U.S market was 10 times larger
Answer: D
Diff: 3 Type: MC Skill: Recall
103) The three main alternatives the E.D Smith had concerning a potential U.S venture with Loblaw’s did not include:
A) declining the offer and continue growing the controlled label business in Canada
B) building a new plant in China
C) building a new plant in the U.S
D) buying an existing plan in the U.S
Answer: B
Diff: 2 Type: MC Skill: Recall
Trang 19104) Management’s intent is provided through a(n)
A) policy and procedures manual
B) statement of values
C) annual report
D) vision statement
Answer: D
Diff: 2 Type: MC Skill: Recall
105) Longer vision statements are meant to be more _
Diff: 1 Type: MC Skill: Recall
106) The ultimate importance of the visioned process is the _
Diff: 2 Type: MC Skill: Recall
107) Which of the following provides a common superior goal?
Diff: 1 Type: MC Skill: Recall
108) Without a vision of where the business is trying to go, a company loses