True / False
1. Strategic leadership is more concerned with goal setting than with inspiration.
a.
True
b.
False
2. A key characteristic of strategic thinking is that it involves high-level cognitive activity on the part of the leader.
a.
True
b.
False
True
Easy
13.1 – Describe the nature of strategic leadership.
United States – BUSPROG – Analytic
United States – OHIO – DISC: Leadership Principles
The Nature of Strategic Leadership
Bloom’s: Knowledge
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3. Asking what-if questions is part of formulating strategies.
a.
True
b.
False
True
Easy
13.1 – Describe the nature of strategic leadership.
United States – BUSPROG – Analytic
United States – OHIO – DISC: Leadership Principles
The Nature of Strategic Leadership
False
Easy
13.1 – Describe the nature of strategic leadership.
United States – BUSPROG – Analytic
United States – OHIO – DISC: Leadership Principles
The Nature of Strategic Leadership
Bloom’s: Knowledge
Digital story: Engage
4. A recommended method of achieving revolutionary thinking is for a firm to engage in four types of incrementalism at
the same time.
a.
True
b.
False
False
Easy
5. An example of contrarian thinking on the part of the owner of a pizza chain might be, “Why bother diversifying into
subs and calzones like most of our competition? Let’s just focus on selling excellent pizza.”
a.
True
b.
False
True
Easy
6. A vision should point to which activities an organization should take on and which activities it should avoid.
a.
True
b.
False
True
Easy
7. An external threat in a SWOT analysis refers primarily to laws that would be broken by implementing a particular
strategy.
a.
True
b.
False
False
Easy
8. The business strategy of differentiation involves making a product or service unique by offering it at an unusually low
price.
a.
True
b.
False
False
Easy
9. An example of a strategic alliance would be a train manufacturer and an airplane manufacturer working jointly to build
a train that will travel without touching the rails.
a.
True
b.
False
True
10. The business strategy of acquisition is often used to acquire new technology that a firm needs to broaden its product
line.
a.
True
b.
False
True
Easy
11. As a business owner, you are using the Hedgehog concept when you diversify into several unrelated businesses.
a.
True
b.
False
False
Easy
12. The purpose of the strategy of competitive advantage is to hire people away from competitors.
Easy
a.
True
b.
False
13. The knowledge creation component of knowledge management is used to spur innovation.
a.
True
b.
False
True
Easy
organization.
14. The knowledge application component of knowledge management deals with workers improving their job activities.
a.
True
b.
False
True
Easy
False
Easy
15. An aspect of effective knowledge management is that organization members acquire power by hoarding and acquiring
knowledge.
a.
True
b.
False
False
Easy
16. An advanced approach to knowledge management is to deliver useful information to workers just at the point when
the information is needed.
a.
True
b.
False
True
Organization.”
Easy
17. A major contribution of knowledge management programs is that the electronic storage and retrieval of information
makes it almost unnecessary for people to develop ideas by talking face-to-face.
a.
True
b.
False
False
of the collective wisdom of employees. Loads of information is often collected in databases,
18. Organizational learning is facilitated when workers use political skills to make connections with others and influence
them in relation to useful knowledge.
a.
True
b.
False
True
Management and the Learning Organization.”
Easy
United States – BUSPROG – Analytic
United States – OHIO – DISC: Leadership Principles
Knowledge Management and the Learning Organization
Bloom’s: Knowledge
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Multiple Choice
19. An organization’s strategy is its:
a.
method for achieving profit targets.
b.
overall concept for achieving its objectives.
c.
master plan for conducting operations.
d.
analysis of the environment.
Easy
13.1 – Describe the nature of strategic leadership.
United States – BUSPROG – Analytic
United States – OHIO – DISC: Leadership Principles
The Nature of Strategic Leadership
Bloom’s: Knowledge
Easy
United States – BUSPROG – Analytic
United States – OHIO – DISC: Leadership Principles
Knowledge Management and the Learning Organization
Bloom’s: Knowledge
Digital story: Engage
20. A major purpose of strategic leadership is to:
a.
provide direction and inspiration in an organization.
b.
help employees develop operating plans.
c.
coach group members toward higher levels of effectiveness.
d.
apply behavior modification throughout the organization.
13.1 – Describe the nature of strategic leadership.
United States – BUSPROG – Analytic
United States – OHIO – DISC: Leadership Principles
The Nature of Strategic Leadership
Bloom’s: Knowledge
Digital story: Engage
21. When a company is founded, a major strategic task of the founder is to:
a.
begin hiring the necessary workers.
b.
get all the legal work done.
c.
obtain funds for the company.
d.
define the purpose of the company.
13.1 – Describe the nature of strategic leadership.
United States – BUSPROG – Analytic
United States – OHIO – DISC: Leadership Principles
The Nature of Strategic Leadership
Bloom’s: Knowledge
Digital story: Engage
22. In relation to an organization, systems thinking refers to:
a.
b.
c.
d.
Digital story: Engage
23. Which of the following is least characteristic of strategic leadership?
a.
High-level cognitive ability on the part of the leader
b.
Anticipating and creating a future
c.
Revolutionary thinking
d.
The leader as the primary source of input for strategy formulation
13.1 – Describe the nature of strategic leadership.
United States – BUSPROG – Analytic
United States – OHIO – DISC: Leadership Principles
The Nature of Strategic Leadership
Bloom’s: Knowledge
Digital story: Engage
24. The recommended approach for strategy formulation by a leader is for him or her to:
a.
involve people in making only decisions that are less critical.
b.
inspire a large number of people to help achieve organizational purposes.
c.
rely heavily on mathematical forecasts of the future.
d.
delegate the task to the company planning department.
organization. See “The Nature of Strategic Leadership.”
13.1 – Describe the nature of strategic leadership.
United States – BUSPROG – Analytic
United States – OHIO – DISC: Leadership Principles
The Nature of Strategic Leadership
Bloom’s: Knowledge
Digital story: Engage
25. A major aspect of direction setting by the leader is to:
a.
anticipate and create a future for the firm.
b.
implement a goal-setting system.
13.1 – Describe the nature of strategic leadership.
United States – BUSPROG – Analytic
United States – OHIO – DISC: Leadership Principles
The Nature of Strategic Leadership
Bloom’s: Knowledge
Digital story: Engage
c.
practice transactional leadership.
d.
carefully review past financial results.
26. Nathan is the CEO of a large business firm whose sales are declining rapidly. A superior act of strategic leadership
would be for him to:
a.
give the company a new strategic direction.
b.
wait for the business cycle to become favorable again.
c.
persist with the existing strategy with minor changes.
d.
hire an innovative advertising agency to help improve sales.
13.1 – Describe the nature of strategic leadership.
United States – BUSPROG – Analytic
United States – OHIO – DISC: Leadership Principles
The Nature of Strategic Leadership
Bloom’s: Comprehension
Digital story: Connect
27. An important characteristic of a strategy developed through revolutionary and contrarian thinking is that it:
a.
preserves the status quo.
b.
moves quality up one notch.
c.
seriously challenges the status quo.
d.
improves organizational efficiency.
13.1 – Describe the nature of strategic leadership.
United States – BUSPROG – Analytic
United States – OHIO – DISC: Leadership Principles
The Nature of Strategic Leadership
Bloom’s: Knowledge
Digital story: Engage
28. A carefully considered vision statement:
a.
helps us know who we are and who we are not.
b.
specifies which short-range goals are achievable.
c.
deals with the past, present, and future.
d.
defines reporting relationships throughout the organization.
Strategic Leadership.”
13.1 – Describe the nature of strategic leadership.
United States – BUSPROG – Analytic
United States – OHIO – DISC: Leadership Principles
The Nature of Strategic Leadership
Bloom’s: Knowledge
Digital story: Engage
29. The purpose of a SWOT analysis is to assess:
a.
strengths, weaknesses, opportunities, and threats.
b.
strategies, weaknesses, options, and time.
c.
satisfactions, worst options, and trade-offs.
d.
successes, winners, and ominous threats.
13.2 – Explain how to use the SWOT model to assist in strategic planning.
United States – BUSPROG – Analytic
United States – OHIO – DISC: Leadership Principles
Conducting a SWOT Analysis
Bloom’s: Knowledge
Digital story: Engage
30. The internal weaknesses in a SWOT analysis include factors such as:
a.
deficiencies in the current management team.
b.
risks of pursuing a particular course of action.
c.
cash flow problems the company is experiencing.
13.1 – Describe the nature of strategic leadership.
United States – BUSPROG – Analytic
United States – OHIO – DISC: Leadership Principles
The Nature of Strategic Leadership
Bloom’s: Knowledge
Digital story: Engage
d.
problems associated with maintaining the status quo.
31. A retailer targeting low income groups is an example of the _____ strategy.
a.
imitation
b.
cost-leadership
c.
focus
d.
first-mover
c
Formulated by Leaders.”
Easy
13.3 – Identify a number of current business strategies.
United States – BUSPROG – Analytic
United States – OHIO – DISC: Leadership Principles
A Sampling of Business Strategies Formulated by Leaders
Bloom’s: Knowledge
Digital story: Engage
32. A company with a strategy of high quality typically:
a.
focuses on quality products for high-end consumers.
b.
concentrates its efforts on consumer products.
c.
offers the lowest prices.
d.
supplements quality with other points of differentiation.
Easy
13.3 – Identify a number of current business strategies.
a SWOT Analysis.”
Easy
13.2 – Explain how to use the SWOT model to assist in strategic planning.
United States – BUSPROG – Analytic
United States – OHIO – DISC: Leadership Principles
Conducting a SWOT Analysis
Bloom’s: Knowledge
Digital story: Engage
33. The first-mover strategy deals with:
a.
relocating a company to a more profitable market.
b.
getting to the market first.
c.
being the first to imitate a product.
d.
being the first company to acquire a competitor.
13.3 – Identify a number of current business strategies.
United States – BUSPROG – Analytic
United States – OHIO – DISC: Leadership Principles
A Sampling of Business Strategies Formulated by Leaders
Bloom’s: Knowledge
Digital story: Engage
34. According to the Hedgehog concept, a company succeeds by:
a.
entering the market ahead of competition.
b.
following the benchmarks set by another company.
c.
entering many fields at the same time.
d.
becoming very good at one thing.
13.3 – Identify a number of current business strategies.
United States – BUSPROG – Analytic
United States – OHIO – DISC: Leadership Principles
A Sampling of Business Strategies Formulated by Leaders
Bloom’s: Knowledge
Digital story: Engage
35. A company engages in the brand-leadership strategy when it:
a.
imitates leading brands.
b.
diversifies into several successful brands.
c.
develops the reputation of its brand name.
United States – BUSPROG – Analytic
United States – OHIO – DISC: Leadership Principles
A Sampling of Business Strategies Formulated by Leaders
Bloom’s: Knowledge
Digital story: Engage