Question 1

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

Accepted Answer

Innovation can either enhance or destroy a firm's capabilities depending on the effectiveness and success of the innovation. It is not always guaranteed to increase a firm's performance and should be pursued by industry leaders to stay competitive. Innovation can also happen in significant leaps and bounds, rather than just incrementally.

Question 2

As our world increases in complexity, the global environment is increasingly competitive and challenging. The key to effective globalization is
A) managing the flow of goods.
B) more people speaking more languages.
C) managing the flow of capital, people, and information.
D) governmental regulations.

Accepted Answer

Managing the flow of capital, people, and information is crucial for effective globalization because it allows businesses and economies to adapt to and compete in a rapidly changing global marketplace. It enables the efficient allocation of resources and the sharing of knowledge and ideas across borders, leading to greater innovation and growth. While managing the flow of goods and governmental regulations are important factors as well, they are secondary to managing the flow of capital, people, and information in today's global economy. More people speaking more languages may also be helpful, but it is not the key factor for effective globalization.

Question 3

According to the text, the "triple bottom line" approach to corporate accounting includes which three components
A) financial, environmental, and customer.
B) financial, organizational, and customer.
C) financial, environmental, and social.
D) financial, organizational, and psychological.

Accepted Answer

The "triple bottom line" approach to corporate accounting includes financial, environmental, and social components.

Question 4

Peter Senge, of MIT recognized three types of leaders. _____ are individuals that, although having little positional power and formal authority, generate their power through the conviction and clarity of their ideas.
A) Local line leaders
B) Executive leaders
C) Internal networkers
D) Shop floor leaders

Accepted Answer

The term "Internal networkers" refers to individuals who do not hold formal leadership positions, but who are able to exert influence through their connections and relationships within the organization. This aligns with Senge's description of leaders who generate power through the conviction and clarity of their ideas, despite having little formal authority. The other choices do not match Senge's description.

Question 5

In terms of strategy analysis, the textbook describes Roth, CEO of Nortel, as having
A) set low targets.
B) ignored the experiences of competitors and set unrealistically high growth targets.
C) focused on the economic landscape.
D) all of these are correct

Accepted Answer

The textbook describes Roth as having set unrealistically high growth targets and ignoring the experiences of competitors. The other options are not mentioned in relation to Roth's strategy analysis.

Question 6

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
A) zero-sum relationship among stakeholders.
B) stakeholder symbiosis.
C) rewarding stakeholders.
D) emphasizing financial returns.

Accepted Answer

The positive relationships between employee satisfaction, customer satisfaction, and financial results is an example of stakeholder symbiosis, where the success and well-being of one stakeholder group (employees and customers) is linked to the success and well-being of another stakeholder group (shareholders and the company).

Question 7

Stakeholders are
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.

Accepted Answer

Stakeholders are individuals, groups, and organizations who have a vested interest in the success of the organization, such as customers, employees, shareholders, and suppliers. It includes both internal and external parties who are affected by the actions and decisions of the organization. This definition goes beyond just shareholders and encompasses a wider range of constituents.

Question 8

Operational effectiveness includes all except
A) benchmarking.
B) performing different activities than rivals.
C) business process re-engineering.
D) just-in-time.

Accepted Answer

Operational effectiveness is about performing similar activities as rivals but in a better way to create more value for customers. Performing different activities than rivals is related to strategic positioning, not operational effectiveness. Therefore, option B is not included in operational effectiveness. Benchmarking, business process re-engineering, and just-in-time are all examples of operational effectiveness.

Question 9

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

Accepted Answer

The board of directors has a fiduciary duty to act in the best interests of the shareholders, who have invested in the company. Representing their own interests would be a conflict of interest and not fulfilling their duty. The board should also have oversight of the CEO, but not direct all actions. Emphasizing the importance of short-term goals may be necessary in some situations, but the board should also consider the long-term sustainability of the organization.

Question 10

Firms must be aware of goals other than short-term profit maximization. One area of concern should be social responsibility which is
A) the expectation that business will strive to improve the overall welfare of society.
B) the idea that organizations are solely responsible to local citizens.
C) the fact that court costs could impact the financial bottom line.
D) the idea that businesses are responsible to maintain a healthy social climate for their employees.

Accepted Answer

Social responsibility refers to the expectation that businesses will strive to improve the overall welfare of society, which goes beyond profit maximization. This includes being environmentally conscious, treating employees fairly, and giving back to the community.

Question 11

The text argues that a strategic perspective in an organization should be emphasized
A) at the top of the organization.
B) at the middle of the organization.
C) throughout the organization.
D) from the bottom up.

Accepted Answer

A strategic perspective should not only be emphasized at the top or middle of the organization, but should be present and understood throughout the entire organization. This ensures that everyone is aligned with the overall strategy and goals of the organization and can contribute to its success.

Question 12

In order to increase their competitiveness, organizations must continually analyze their strategy and their competitive environments. Strategy analysis includes
A) assessing intellectual capital as well as analyzing the internal and external environment.
B) formulating Internet and international-level strategy.
C) strategic leadership and fostering entrepreneurship.
D) strategy implementation and strategic controls.

Accepted Answer

Assessing intellectual capital and analyzing internal and external environment are crucial elements in strategy analysis as they help organizations identify their strengths, weaknesses, opportunities, and threats, and devise appropriate strategies to leverage them. Formulating Internet and international-level strategy, strategic leadership, fostering entrepreneurship, strategy implementation, and strategic controls are all important components of strategy implementation, which come after strategy analysis.

Question 13

Firms must be concerned with many types of capital. In the broader sense, these could include
A) employee goals.
B) organizational vision.
C) mission statements.
D) ecological, material, and social.

Accepted Answer

The question specifically asks for types of capital, and the options pertaining to employee goals, organizational vision, and mission statements are not types of capital. Ecological, material, and social capital are commonly recognized types of capital that firms should take into consideration. Ecological capital pertains to the use of natural resources and sustainable practices, material capital refers to physical resources like infrastructure and equipment, and social capital relates to the value of relationships, networks, and reputation.

Question 14

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

Accepted Answer

Functional areas with diverse interests should work together to attain overall goals. This approach promotes a holistic approach that accounts for the interdependencies and interactions between each functional unit. A siloed approach, as presented in option A, can lead to conflicts and inefficient use of resources. Option C is also not ideal as goals should be developed at all levels of the organization to ensure alignment and integration. Option D is not recommended as it is crucial for management and employees to have shared goals to achieve organizational success.

Question 15

Managers should do more than just focus on short-term financial performance. One concept that helps managers do this is stakeholder symbiosis. This means that
A) stakeholders are dependent on each other for their success.
B) stakeholders look out for their individual interests.
C) one can only gain at the expense of someone else.
D) all stakeholders want to maximize shareholder returns.

Accepted Answer

Stakeholder symbiosis means that stakeholders are interdependent and their success is dependent on each other. This means that managers should consider the interests of all stakeholders and balance them with financial performance. It is not about individual stakeholder interests or maximizing shareholder returns at the expense of others.

Question 16

The four key attributes of strategic management include the idea that a
A) strategy must be directed toward overall organizational goals and objectives.
B) strategy must be focused on long-term objectives.
C) strategy must be focused on one specific area of an organization.
D) strategy must focus on competitor strengths.

Accepted Answer

The answer of The four key attributes of strategic management...

Question 17

According to Henry Mintzberg, the realized strategies of a firm
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.

Accepted Answer

According to Henry Mintzberg, realized strategies are a combination of deliberate (those planned and intended by the firm) and emergent (those that develop over time as a result of unexpected changes and opportunities) strategies. Therefore, the best choice is A. Choices B, C, and D are incorrect because they do not align with Mintzberg's concept of realized strategies.

Question 18

An organization is responsible to many different entities. In order to meet the demands of these groups, organizations must participate in stakeholder management. Stakeholder management means that
A) interests of the shareholders are not the only interests that matter.
B) stakeholders are second in importance to the shareholders.
C) stakeholders and managers inevitably work at cross-purposes.
D) all stakeholders receive financial rewards.

Accepted Answer

Stakeholder management acknowledges that an organization has an array of stakeholders, beyond its shareholders, and that their needs and interests are also important. It is not about prioritizing one group over the others, but rather balancing and meeting the demands of all stakeholders. Therefore, choice A is the best answer. Choices B, C, and D are incorrect.

Question 19

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

Accepted Answer

The four key attributes of strategic management include incorporating multiple stakeholder interests in decision making, incorporating both short-term and long-term perspectives, recognizing the trade-offs between effectiveness and efficiency, and emphasis on the attainment of long-term objectives. The emphasis on the attainment of short-term objectives is not one of the key attributes of strategic management.

Question 20

Members of boards of directors are
A) appointed by the Securities and Exchange Commission.
B) elected by the shareholders as their representatives.
C) elected by the public.
D) only allowed to serve one term of four years.

Accepted Answer

Members of boards of directors are elected by the shareholders as their representatives. Shareholders have the right to vote for the individuals that they believe will best represent their interests on the board.

Quiz 1: Strategic Management: Creating Competitive Advantages

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

As our world increases in complexity, the global environment is increasingly competitive and challenging. The key to effective globalization is

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

Peter Senge, of MIT recognized three types of leaders. _____ are individuals that, although having little positional power and formal authority, generate their power through the conviction and clarity of their ideas.

In terms of strategy analysis, the textbook describes Roth, CEO of Nortel, as having

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

Stakeholders are

Operational effectiveness includes all except

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

Firms must be aware of goals other than short-term profit maximization. One area of concern should be social responsibility which is

The text argues that a strategic perspective in an organization should be emphasized

In order to increase their competitiveness, organizations must continually analyze their strategy and their competitive environments. Strategy analysis includes

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

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

Managers should do more than just focus on short-term financial performance. One concept that helps managers do this is stakeholder symbiosis. This means that

The four key attributes of strategic management include the idea that a

According to Henry Mintzberg, the realized strategies of a firm

An organization is responsible to many different entities. In order to meet the demands of these groups, organizations must participate in stakeholder management. Stakeholder management means that

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

Members of boards of directors are