1. Strategic leadership is a leader’s ability to anticipate, envision, maintain flexibility, think strategically, and work with
others to initiate changes that will create a viable future for the organization.
a.
True
b.
False
2. Ultimately, strategic leadership is the responsibility of the CEO and top management.
a.
True
b.
False
True
Easy
p. 397
MGMT.LUSS.16.11-01 – LO: 11–01
Conceptual
3. There are several definitions of the concept of strategic leadership, each revolving around a different theme.
a.
True
b.
False
False
Moderate
p. 397
MGMT.LUSS.16.11-01 – LO: 11–01
Conceptual
4. One area in which change is unmistakable is the increasing global competitive marketplace.
a.
True
True
Easy
p. 397
MGMT.LUSS.16.11-01 – LO: 11–01
Conceptual
b.
False
5. Effective strategic leaders seek the counsel of a select group of employees throughout the strategic management process
because the fewer people are involved the quicker decisions get made.
a.
True
b.
False
False
Moderate
p. 400
MGMT.LUSS.16.11-01 – LO: 11–01
Conceptual
6. The link between leadership and strategy is a new concept but quickly becoming accepted.
a.
True
b.
False
False
Easy
p. 400
MGMT.LUSS.16.11-01 – LO: 11–01
Conceptual
7. Strategic leadership is the set of decisions and actions used to formulate and implement specific strategies that will
achieve a competitively superior fit between the organization and its environment, so as to achieve organizational goals.
a.
True
True
Easy
p. 399
MGMT.LUSS.16.11-01 – LO: 11–01
Conceptual
b.
False
8. The leader’s role in leading the strategic management process only applies to for-profit organizations while non-profit
organizations call for a different approach.
a.
True
b.
False
False
Moderate
p. 400
MGMT.LUSS.16.11-01 – LO: 11–01
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
9. The first step in the strategic management process is strategy formulation.
a.
True
b.
False
False
Strategy Formulation is not the first step.
Easy
p. 401 and Exhibit 11.1
MGMT.LUSS.16.11-02 – LO: 11–02
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
10. An organization’s external environment presents strengths and weaknesses, while it internal environment presents
opportunities and threats.
False
This is not the definition of the strategic leadership.
Easy
p. 401
MGMT.LUSS.16.11-01 – LO: 11–01
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
a.
True
b.
False
11. Formulating and executing strategy is the central theme of strategic leadership in any organization.
a.
True
b.
False
True
Moderate
p. 401
MGMT.LUSS.16.11-02 – LO: 11–02
Conceptual
12. The combined analysis of the external environment and internal environment is commonly referred to as SWOT
analysis.
a.
True
b.
False
True
Easy
p. 406
MGMT.LUSS.16.11-04 – LO: 11–04
Conceptual
13. The values statement outlines guiding principles and ethical standards by which company personnel will conduct
business.
a.
True
False
Easy
p. 405
MGMT.LUSS.16.11-04 – LO: 11–04
Conceptual
b.
False
14. The effectiveness of an organization’s strategies is influenced by the degree of alignment between the organization’s
internal capabilities, resources, and its environmental opportunities.
a.
True
b.
False
True
Moderate
p. 406
MGMT.LUSS.16.11-04 – LO: 11–04
Conceptual
15. Companies develop either financial objectives or strategic objectives; but usually not both.
a.
True
b.
False
False
Moderate
p. 404
MGMT.LUSS.16.11-03 – LO: 11–03
Conceptual
16. Environmental scanning is the first step in the strategic management process.
a.
True
b.
False
False
True
Moderate
p. 404
MGMT.LUSS.16.11-02 – LO: 11–02
Conceptual
17. The vision statement answers the question, “What business are we in?”
a.
True
b.
False
False
Moderate
p, 403
MGMT.LUSS.16.11-02 – LO: 11–02
Conceptual
18. A vision statement specifies an organization’s present purpose – its marketing niche, product/services offered,
operating principles, and business model.
a.
True
b.
False
False
Easy
p. 402
MGMT.LUSS.16.11-02 – LO: 11–02
Conceptual
19. To streamline the process, vision creation is done by top management and handed down to employees.
a.
True
b.
False
False
Moderate
p. 405
MGMT.LUSS.16.11-04 – LO: 11–04
Conceptual
20. A strategic vision is an ambitious view of the current state that everyone in the organization can believe in that is
readily attainable.
a.
True
b.
False
False
Moderate
p. 402
MGMT.LUSS.16.11-02 – LO: 11–02
Conceptual
21. A well-crafted vision should be simple enough to understand, appealing enough to energize, and credible enough to be
accepted as realistic.
a.
True
b.
False
True
Moderate
p. 403
MGMT.LUSS.16.11-02 – LO: 11–02
Conceptual
22. A vision statement represents the enduring purpose of the organization in the present and a mission statement
represents a future aspiration.
a.
True
b.
False
Moderate
p. 403
MGMT.LUSS.16.11-02 – LO: 11–02
Conceptual
23. Two components that are often featured in a mission statement are the core values and the core purpose.
a.
True
b.
False
True
Easy
p. 403
MGMT.LUSS.16.11-02 – LO: 11–02
Conceptual
24. A mission statement is the organization‘s core purpose and reason for existence.
a.
True
b.
False
True
Easy
p. 403
MGMT.LUSS.16.11-02 – LO: 11–02
Conceptual
25. Objectives are the desired immediate outcomes top management dictates to employees.
a.
True
b.
False
False
False
Moderate
p. 402
MGMT.LUSS.16.11-02 – LO: 11–02
Conceptual
26. Prior to formulating a strategy the leader should know the mission, vision, and objectives of the organization.
a.
True
b.
False
True
Easy
p. 401 and Exhibit 11.1
MGMT.LUSS.16.11-02 – LO: 11–02
Conceptual
27. Customer value is the ratio of costs in the present to benefits in the future.
a.
True
b.
False
False
Easy
p. 407
MGMT.LUSS.16.11-04 – LO: 11–04
Conceptual
28. A core competence is a capability that allows an organization to perform extremely well in comparison to competitors.
a.
True
b.
False
True
Easy
p. 409
MGMT.LUSS.16.11-04 – LO: 11–04
Easy
p. 404
MGMT.LUSS.16.11-03 – LO: 11–03
Conceptual
29. The most distinctive and hard to imitate resource available to firms is knowledge.
a.
True
b.
False
True
Moderate
p. 409
MGMT.LUSS.16.11-04 – LO: 11–04
Conceptual
30. Strategy evaluation has been described as the most important and most difficult part of the strategic management
process.
a.
True
b.
False
Moderate
p. 408
MGMT.LUSS.16.11-04 – LO: 11–04
Conceptual
31. One of factors that must be present for strategy execution to progress successfully, is the availability of adequate
resources and capabilities.
a.
True
b.
False
True
p. 408
MGMT.LUSS.16.11-04 – LO: 11–04
Conceptual
32. A company pursuing a strategy of differentiation through innovation in a bureaucratic, hierarchical organizational
structure is an example of a mismatch between strategy and structure.
a.
True
b.
False
True
Moderate
p. 409
MGMT.LUSS.16.11-04 – LO: 11–04
Conceptual
33. Effective strategy evaluation involves four fundamental activities.
a.
True
b.
False
False
Easy
p. 411
MGMT.LUSS.16.11-05 – LO: 11–05
Conceptual
34. A popular tool used to measure the effectiveness of the strategic management process is the balance scorecard.
a.
True
b.
False
True
Easy
p. 411
MGMT.LUSS.16.11-05 – LO: 11–05
Conceptual
35. A key first step in managing change is for the leader to identify any internal or external threats and explain to
followers the need for change.
a.
True
b.
False
True
Moderate
p. 412
MGMT.LUSS.16.11-05 – LO: 11–05
Conceptual
36. Learning anxiety is the feeling that unless an organization makes a change, it is going to be out of business or fail to
achieve some important goals.
a.
True
b.
False
False
Easy
p. 412
MGMT.LUSS.16.11-05 – LO: 11–05
Conceptual
37. Ultimately, organizational change is about changing the profit margin of the organization.
a.
True
b.
False
False
Moderate
p. 411
Conceptual
38. To insure successful change execution, effective leaders stay engaged and continue to articulate a compelling reason
for change.
a.
True
b.
False
True
Easy
p. 413
MGMT.LUSS.16.11-05 – LO: 11–05
Conceptual
39. Effective change agents must be good listeners.
a.
True
b.
False
True
Easy
p. 413
MGMT.LUSS.16.11-05 – LO: 11–05
Conceptual
40. The force-field model proposes that the change process is divided into three phases: freezing, unfreezing, and
refreezing.
a.
True
b.
False
False
Easy
p. 413
MGMT.LUSS.16.11-06 – LO: 11–06
Conceptual
Conceptual
41. Organizational identity is the aggregate of beliefs, norms, attitudes, values, assumptions, and ways of doing things that
is shared by members of an organization and taught to new members.
a.
True
b.
False
Easy
p. 409
MGMT.LUSS.16.11-04 – LO: 11–04
Conceptual
42. Change often requires new skills, capabilities, and knowledge but the prospect of learning something may create
learning anxiety.
a.
True
b.
False
True
Easy
p. 412
MGMT.LUSS.16.11-05 – LO: 11–05
Conceptual
43. An example of an incremental change is a strategic redirection of an organization’s vision and mission.
a.
True
b.
False
False
Easy
p. 411
MGMT.LUSS.16.11-05 – LO: 11–05
Conceptual
44. In the three stage model of change, the unfreezing phase is where the actual changes take place.
a.
True
b.
False
False
Easy
p. 413
MGMT.LUSS.16.11-06 – LO: 11–06
Conceptual
45. In the unfreezing phase of the three stage model of change, the key is to identify the problems or threats facing the
organization, creating an urgency for change.
a.
True
b.
False
True
Easy
MGMT.LUSS.16.11-06 – LO: 11–06
Conceptual
46. Effective leaders downplay employees’ resistance to change and realize that it is a discipline problem.
a.
True
b.
False
False
Easy
p. 416
MGMT.LUSS.16.11-08 – LO: 11–08
Conceptual
47. One of the most common reasons why people resist change is because of the threat to their personal safety.
a.
True
b.
False
48. Any proposed change must take into account its impact on the values of those who are affected by the change.
a.
True
b.
False
True
Moderate
p. 415
MGMT.LUSS.16.11-07 – LO: 11–07
Conceptual
49. To overcome resistance to change, effective managers must think in terms of the cognitive, emotional and behavioral
states of members.
a.
True
b.
False
True
Easy
p. 414 and Exhibit 11.2
MGMT.LUSS.16.11-07 – LO: 11–07
Conceptual
50. Cultural inertia is a rigid, outdated culture that works against anything new or different from the status quo.
False
Moderate
p. 415 and Exhibit 11.2
MGMT.LUSS.16.11-07 – LO: 11–07
Conceptual
a.
True
b.
False
51. Ensuring that change efforts are adequately staffed and funded is a recommendation for minimizing resistance to
change.
a.
True
b.
False
True
Moderate
p. 417 and Exhibit 11.3
MGMT.LUSS.16.11-08 – LO: 11–08
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
52. To reduce or eliminate resistance to change, effective leaders communicate the need and urgency for change to just
top management.
a.
True
b.
False
False
This should be communicated to everyone.
Moderate
p. 417 and Exhibit 11.3
MGMT.LUSS.16.11-08 – LO: 11–08
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
53. Strategic ____ is the process of providing the direction and inspiration necessary to create and implement a firm’s
vision, mission, and strategies to achieve organizational objectives.
True
Moderate
p. 414
MGMT.LUSS.16.11-07 – LO: 11–07
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
a.
management
b.
leadership
c.
necessity
d.
vision
54. Key questions requiring top management input and leadership during the strategic management process include all of
the following EXCEPT:
a.
Who is our customer(s) and what are their needs?
b.
What is our vision?
c.
What is the federal government’s profit margin?
d.
Do we have a viable and competitive business model?
c
Easy
p. 400
MGMT.LUSS.16.11-01 – LO: 11–01
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
55. Companies are now selling environmentally friendly products, like Toyota’s line of hybrid cars. This is an example
of:
a.
organizational inertia.
b.
green marketing.
c.
unethical advertising.
d.
organizational identity.
Moderate
p. 399
MGMT.LUSS.16.11-01 – LO: 11–01
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Moderate
p. 397
MGMT.LUSS.16.11-01 – LO: 11–01
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
56. Certain skills, when mastered and used in concert, allow leaders to think strategically and navigate the unknown
effectively. These skills include all of the following EXCEPT:
a.
b.
c.
d.
c
Moderate
p. 397
MGMT.LUSS.16.11-01 – LO: 11–01
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
57. The link between leadership and ________ was established in the 1960’s.
a.
environmental sustainability
b.
green marketing
c.
strategy
d.
organizational culture
c
Moderate
p. 400
MGMT.LUSS.16.11-01 – LO: 11–01
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
58. Strategic ____ is the set of decisions and actions used to formulate and implement specific strategies that will achieve
a competitively superior fit between the organization and its environment, so as to achieve organizational goals.
a.
leadership
b.
analysis
c.
management
d.
vision
Easy
p. 401
Conceptual
BLOOMS: Knowledge
59. The strategic management process consists of five key decision areas laid out in five steps; the first step is:
a.
strategy execution.
b.
strategy formulation.
c.
crafting a strategic vision and mission statement.
d.
setting objectives.
c
Easy
p. 401 and Exhibit 11.1
MGMT.LUSS.16.11-02 – LO: 11–02
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
60. A ___________ is the set of beliefs, traits, and behavioral norms that management has determined should guide the
pursuit of its vision and mission.
a.
values statement
b.
mission statement
c.
strategic vision
d.
vision statement
a
Moderate
p. 404
MGMT.LUSS.16.11-02 – LO: 11–02
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge
61. SWOT analysis includes all of the following EXCEPT:
a.
senses.
b.
weaknesses.
c.
opportunities.
d.
threats.
a
MGMT.LUSS.16.11-02 – LO: 11–02
United States – BUSPROG: Analytic
United States – IL – DISC: Strategy – Strategic management builds competitive advantage
AACSB: Analytic – Analytic skills
Conceptual
BLOOMS: Knowledge