100. The ability to attract and manage may be the most important skill a strategic leader must have.
a. human capital
b. financial resources
c. responses to competitors’ actions
d. investment strategies
101. capital increases cooperation among individuals inside and outside the firm.
a. Human
b. Social
c. Visionary
d. Cultural
102. Which of the following is NOT a factor that determines the amount of a manager’s decision discretion?
a. characteristics of the manager
b. characteristics of the organization
c. cohesiveness of the board of directors
d. the external environmental
103. Christina is evaluating Maximum Brands as an investment opportunity. She is very concerned about future financial
performance by Maximum Brands. Christina does not believe that the CEO can act as a steward. Christina will
probably be most concerned if
a. there is CEO duality.
b. many of the members of the board of directors are outsiders.
c. the positions of chairman of the board and CEO are held by different persons.
d. there is an independent board leadership structure.
104. Faced with declining enrollment and increased competition from not-for-profit organizations offering inexpensive art
courses for new hobbyists, the for-profit Delta Academy of Art has steadfastly stayed true to its mission of offering
high-quality classical art instruction for both beginners and advanced artists at high tuition. Delta has been noted for
the excellence of its artistic training for decades. This is an example of
a. adhesion to the status quo.
b. lack of an envisioned future.
c. competence becoming a liability.
d. failure to have a clear core ideology.
105. Criteria for reevaluating internal business processes using the balanced scorecard include all of the following
EXCEPT
a. asset utilization improvements.
b. improvements in employee morale.
c. increases in employee skills.
d. changes in turnover rates.
106. A CEO’s breadth of knowledge base is constrained by
a. his or her relationship with the board of directors.
b. whether he or she is also the chairperson of the board of directors.
c. his or her long tenure with the firm.
d. the level of social capital in the firm.
107. The CEO/chairman of PharmaPacifica was recently killed in an airplane crash. This tragedy has thrown
PharmaPacifica into turmoil as there is no one in the organization qualified to step into the former CEO‘s shoes.
This is an example of
a. a failure of succession management.
b. managerial hubris.
c. the risk inherent in CEO duality.
d. excessive reliance on the internal managerial labor market.
108. The goal of investing in human capital is to
a. increase the number of employees in the firm.
b. reduce organizational slack.
c. maximize current productivity per employee.
d. develop a workforce capable of continuous learning.
109. Research shows that
firm‘s ethical requirements.
a. a written code of ethics
is the most effective means of ensuring that employees comply with the
b. a statement in the firm‘s mission statement
c. a speech on ethics by the CEO of the company
d. a value-based culture
110. Which of the following is NOT one of the five dimensions thought to characterize an employee’s entrepreneurial
mind-set?
a. autonomy
b. reactivity
c. risk taking
d. innovativeness
111. The CEO of CLEO, Inc., in all her communications to employees consistently refers to her dream of CLEO
becoming the company of choice for employee assistance programs. She keeps this theme uppermost and it is
reflected in the firm’s motto, the title of its Web newsletter, and even on the company t-shirts and mugs. This is an
example of the firm’s
a. core ideology.
b. organizational culture.
c. strategy.
d. envisioned future.
112. An organization’s
firm’s strategies.
is composed of the key individuals who are responsible for selecting and implementing the
a. top management team
b. board of directors
c. keiretsu
d. governance circle
113. All of the following are external environmental sources that affect managerial discretion EXCEPT
a. industry structure.
b. corporate culture.
c. market growth rate.
d. potential for product differentiation.
114. Which of the following is NOT a benefit to the firm using the internal labor market to select a new CEO?
a. Internal hiring results in an increased level of innovation.
b. Insiders are familiar with the firm’s products, markets, technologies, and operating procedures.
c. Use of the internal labor market reduces turnover among existing employees.
d. Insiders are more familiar with a firm’s operating procedures.
115. Omicron Artificial Intelligence is able to respond quickly to competitors‘ actions and to opportunities in the
marketplace. This is an example of
a. agility.
b. a core competency.
c. flexibility.
d. responsiveness.
116. A CEO gains power from all of the following circumstances EXCEPT
a. when many of the outside directors are appointed by the CEO.
b. when the CEO is also the chairman of the board.
c. when tenure of the top management team is shorter than the tenure of the board.
d. the fact that inside board members report to the CEO.
117. Which of the following is NOT one of the four perspectives in the balanced scorecard framework?
a. entrepreneurial
b. financial
c. customer
d. learning and growth
118. provide information about the results of past actions, but do not communicate the drivers of the firm’s future
performance.
a. Financial controls
b. Accounting information systems
c. Policies and procedures
d. Strategic feedback systems
119. Recently, Sony selected Sir Howard Stringer as CEO. Sir Howard is not Japanese and he was not a Sony
employee before his selection. Which of the following statements is FALSE?
a. Sony’s top management team will be more heterogeneous with the addition of Sir Howard.
b. Sir Howard will have a broader perspective of the firm and its competitive environment than would a Sony
insider.
c. If Sony’s top management team is homogeneous, Sir Howard‘s future impact on Sony’s strategy is
ambiguous.
d. The decision–making process on Sony’s top management team will be smoother and faster with the addition
of Sir Howard.
120. To successfully implement a firm’s strategy, the workforce must be viewed as a
a. variable cost.
b. depreciating asset.
c. resource to be maximized.
d. renewable asset.
121. The firm of Bergeron has existed for hundreds of years, having made exquisite clocks and watches. In its
advertising it refers to clocks the firm made for such past royalty as Marie Antoinette and the Czars of Russia.
Employees are constantly reminded of the firm’s rich history and its long tradition of excellence of design and
execution. Bergeron is motivating its employees through its
a. core ideology.
b. envisioned future.
c. organizational culture.
d. business strategy.
122. Exploiting and maintaining core competencies is part of the key strategic leadership action “Effectively Managing
the Firm’s Resource Portfolio.” Which of the following is most important for developing and using core
competencies?
a. extensive financial assets
b. transformational leadership
c. high-quality human capital
d. an ethical organizational culture
123. The CEO of Icon Image Associates wishes to radically change the corporate culture of the firm. She knows that
she must convince others at Icon Image of the necessity for the culture change and gain their active support. The
CEO knows that the key players in energizing the culture change and fostering alignment with the new strategic
vision are
a. the members of the board of directors.
b. top management team members.
c. the CEO, top managers, and middle managers.
d. rank-and-file employees.
124. CEO duality refers to
a. firms where there is both a president and a CEO.
b. CEOs who sit on the board of directors of other firms.
c. CEOs who hold office in more than one company.
d. the situation where the CEO is also chairperson of the board of directors.
125. Managerial actions that support development of an ethical organizational culture include all of the following
EXCEPT
a. establishing a code of conduct.
b. disseminating the code of conduct to all stakeholders to inform them of the firm‘s ethical standards and
practices.
c. creating a work environment in which people are treated with dignity.
d. disciplining whistle–blowers.
Essay
126. What is strategic leadership, who has primary responsibility for strategic leadership, and what are the five key
strategic leadership actions?
127. Discuss how the managerial succession process and the composition of the top management team interact to affect
strategy.
128. What are organizational controls? Why are strategic controls and financial controls important aspects of the
strategic management process?
129. Define human capital and its importance to the firm’s success.
130. What is a top management team, and how does it affect a firm’s performance and its abilities to innovate and
design and implement effective strategic changes?
131. As a strategic leader, what actions could you take to establish and emphasize ethical practices in your firm?
132. What is organizational culture? What must strategic leaders do to develop and sustain an effective organizational
culture?