Deck 7: Management Preference Analysis

Question 1

Boards of Directors are often not as effective as they might be because the board

A) too peripheral to the organization
B) is focused on meeting the needs of the shareholders
C) is dominated by internal management
D) does not make the day to day decisions of the corporation

Answer 1

C

Question 2

Management preferences with respect to strategy serve to

A) simplify the decision making process
B) bridge the gap between the internal and external environment
C) promote flexibility
D) motivate the efforts of the firm

Answer 2

D

Question 3

Corporate social responsibility refers to a corporation's duty to

A) compensate for benefits received from a harmful or unjust situation
B) pay its fair share of taxes
C) make a profit
D) use its assets for the benefit of the shareholders

Answer 3

A

Question 4

Corporate controls on the actions of managers are supported by

A) competitors
B) regulatory constraints
C) economic conditions
D) product market focus

Question 5

A frozen preference occurs when a manager

A) abandons a strategic option
B) follows a 'wait and see' position on a strategic issue
C) takes a high-profile position on a strategic issue
D) recycles a strategic option

Question 6

One of the mechanisms used to align management interests with those of the shareholders is

A) time off
B) bonuses
C) stock options
D) larger budgets

Question 7

Strategic proposals that are extensions of the current strategy are most likely to generate

A) controversy
B) agreement
C) disagreement
D) negativity

Question 8

Managerial preferences have an indirect role on the

A) strategic choices
B) environmental assessment
C) risk levels
D) break-even point

Question 9

Organizational change will likely be required to resolve conflicts of

A) mission over vision
B) product market focus
C) sustainability
D) required and observed management preferences

Question 10

Managers with a strong need for achievement are most likely to favour

A) stable performance
B) aggressive growth targets
C) following the competition
D) the status quo

Question 11

When persuasion fails to resolve moderate conflict between required and observed managerial preferences, modifying the strategy may not be the best solution because the new proposal

A) has insufficient support to be successful
B) could fail the test of product market focus
C) will stall the analysis process
D) has to be compatible with the environment and the resources

Question 12

Corporate governance is the mechanism that

A) advances the agenda of the shareholders
B) sets the boundaries for the management
C) constrains the organization
D) reconciles competing shareholder interests

Question 13

Expecting corporations to address social ills is often countered with the argument based on

A) efficient use of resources
B) furthers the firm's self interest
C) misappropriation of assets
D) function of wealth creation

Question 14

Managerial preferences are formed by the interaction of

A) needs, wants, and requirements
B) achievement goals, personal attributes, and the financial performance of the firm
C) values, salary level, and Board preferences
D) needs, beliefs, and situational pressures

Question 15

One technique for addressing minor discrepancies between the required and observed strategic preferences of the management team is to

A) rework all of the proposals
B) reassign one of the managers
C) combine two or three of the proposals
D) compare the forecasts of firm performance

Question 16

Managers with a strong need for security are most likely to favour

A) stable performance
B) leading the market
C) aggressive growth targets
D) a high debt/equity ratio

Question 17

The mandate of the Board of Directors is

A) profitability
B) shareholder wealth
C) regulatory compliance
D) corporate governance

Question 18

A cohesive management group that endorses a strategic initiative inconsistent with the strategic needs of the business could be considered an example of

A) a politicized work environment
B) frozen preference
C) group think
D) network effects

Question 19

Minimal conflict between required/observed management preferences often occurs in situations involving

A) strong leaders
B) engaged Boards of Directors
C) strong unions
D) vocal stakeholders

Question 20

Underperforming firms are pressured to achieve their potential by

A) suppliers
B) market forces
C) customers
D) environmental forces

Question 21

Bravery, determination, tenacity, and confidence are associated elements of which character dimension?

A) humanity
B) temperance
C) drive
D) courage

Question 22

One of the key considerations when evaluating the strategy-management preference linkage is: how value should be distributed.

Question 23

Insisting on the need for a brand name is an example of a managerial belief.

Question 24

"We need to control every input to our product" is an example of a management belief that impacts which of the following areas?

A) goals
B) product market focus
C) value proposition
D) core activities

Question 25

Strategy needs to be consistent with the firm's management preferences as well as with the management preferences of

A) customers
B) suppliers
C) regulators
D) competitors

Question 26

What is Kenneth Andrews referring to when he says: "There is no way to divorce the decision determining the most sensible economic strategy for a company from the personal values of those who make the choice?"

A) eliminating inconsistencies between the goals of the firm and managerial inclinations
B) resolving conceptual biases
C) corporate governance
D) management preferences

Question 27

Corporate performance crises are the result of failures in judgment on the part of senior management.

Question 28

If a firm operates from a position of self-interest and mistrust which impairs its ability to make good business decisions, the firm is lacking which character dimension?

A) integrity
B) collaboration
C) accountability
D) justice

Question 29

Persuasion and changes in job context are examples of

A) informal leadership
B) strategy modification techniques
C) management functions
D) organizational actions

Question 30

In many jurisdictions, the principal role of the Board of Directors is to act in the best interests of the shareholders.

Question 31

The purpose of management preference analysis is to establish the degree of fit between strategy and the

A) motivations of the Board of Directors
B) priorities of the stakeholders
C) motivations of key managers
D) resources of the firm

Question 32

The key stakeholder groups for most organization are shareholders, employees, and customers.

Question 33

Internal controls and regulation are low cost substitutes for integrity.

Question 34

Job context defines the scope and nature of a manager's responsibilities.

Question 35

The interests of shareholders, employees, and customers are readily reconciled as all three parties want the organization to succeed.

Question 36

The objective of management preference analysis is to

A) eliminate inconsistencies between the goals of the firm and managerial inclinations
B) resolve conceptual biases
C) foster internal commitment to the preferred strategic option
D) achieve consistency between the motivations of key managers and strategy

Question 37

An economic argument against Corporate Social Responsibility is the inefficient use of resources when employed for other purposes. This is also known as

A) inefficiency
B) mismanagement
C) misallocation
D) misappropriation

Question 38

Strategic preferences of managers are derived from personal attributes.

Question 39

The general manager's role is to create value for the stakeholders using organizational resources.

Question 40

The easiest way to reconcile the strategy/managerial preferences linkage is by

A) taking organizational action
B) asking the Board of Directors to decide
C) modifying strategy
D) deferring a decision

Question 41

The personal history of the managers of competing firms can sometimes suggest how their firms will respond to strategic threats.

Question 42

In highly politicized firms, managers often have hidden agendas that could compromise the strategic planning process.

Question 43

Most strategic proposals will have similar consequences for senior managers in different job positions.

Question 44

Good managers engage in candid introspection with respect to the strategic choice processes of the organization.

Question 45

If the environment/resources linkage is strong, it is not necessary for a strategy to be consistent with managerial preferences.

Question 46

Discrepancies between required and observed management preferences with respect to strategy have little effect on the organizational capabilities of the business.

Question 47

A compromise solution is often used to address moderate conflicts between required and observed managerial preferences.

Question 48

Expectations of subordinates have little influence on a manager's strategic preferences.

Question 49

Strategy modification through persuasion and changes in job context can be used to resolve strategy/managerial preference conflicts.

Question 50

The purpose of management preference analysis is to establish the degree of fit between strategy and the motivations of key managers.

Question 51

Having openly endorsed a strategic option, managers will find it difficult to modify their position.

Question 52

When it is not possible to find a workable solution to conflicts between strategy and managerial preferences, the manager may need to be reassigned.

Question 53

Strategic proposals that call for new ways of thinking about the business are likely to be contentious.

Question 54

It is seldom useful to try predicting the response of competitors to emerging threats.

Question 55

The strategic preferences of an organization's functional managers are usually similar.