1. Strategic leadership is more concerned with goal setting than with inspiration.
a. True
b. False
2. Planning is not the only important component of creating a solid business strategy.
a. True
b. False
3. A central challenge for modern organizations is for leaders at every level of a company to consider the big picture.
a. True
b. False
4. Experts believe that business leaders need to become even more analytical and results-oriented in the modern business
world.
a. True
b. False
5. Implementation requires executing a number of organized goals that lead toward the successful implementation of a
new initiative.
a. True
b. False
6. Crowdsourcing is an untested method of generating ideas that should not yet be considered as a viable alternative to
strong in-house creative innovation.
a. True
b. False
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
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
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
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
11. As a business owner, you are using the Hedgehog concept when you diversify into several unrelated businesses.
a. True
b. False
12. The purpose of the strategy of competitive advantage is to hire people away from competitors.
a. True
b. False
13. The knowledge creation component of knowledge management is used to spur innovation.
a. True
b. False
14. The knowledge application component of knowledge management deals with workers improving their job activities.
a. True
b. False
15. An aspect of effective knowledge management is that organization members acquire power by hoarding and acquiring
knowledge.
a. True
b. False
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
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
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
19. Strategic leadership is a process of providing:
a. strategies to ambitious employees hoping to rise through the organization.
b. the direction and inspiration needed to create or sustain an organization.
c. an specific, step-by-step concept of how the firm will achieve its goals.
d. a system of leadership initiatives that will help the firm operate at lower costs.
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.
21. A strategically minded worker at any level would be likely to think:
a. “How can I finish this project as efficiently as possible?”
b. “What strategy should I use to benefit my immediate team?”
c. “What small tasks can I accomplish first before tackling the big picture?”
d. “How does what I am doing right now support corporate strategy?”
22. The founders of great companies typically use intuition to formulate:
a. a great purpose.
b. an inspirational business name.
c. a new understanding of workflow.
d. a novel way of improving working conditions.
23. The problem with the authority for important strategic decisions resting only with the CEO of a company is that:
a. CEOs often make too much money and are thus complacent.
b. the pace of the modern business environment is too much for one mind to comprehend.
c. CEOs are rarely revolutionary thinkers.
d. personal biases and other factors can cloud a single executive’s opinion.
24. The recommended approach for implementing strategy is to include which group in every conversation about
strategy?
a. Lowest-level workers
b. The sales organization
c. Human resources
d. Customers who are already satisfied
25. After the formulation of an innovative vision, a key part of leadership effectiveness is the strategy behind:
a. implementing that vision.
b. disciplining employees who do not share that vision.
c. comparing that vision against those of competitors to ensure uniqueness.
d. crowdsourcing to discover if the decision needs to be altered.
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.
27. Gucci was able to improve the downward trajectory of its business by:
a. diversifying and putting it name on many new products.
b. focusing on quality and the highest possible price point.
c. revamping its business strategy with a human touch.
d. improving organizational efficiency.
28. According to recent studies, hiring employees with global work experience give companies a stronger ability to:
a. think strategically.
b. make overseas business contacts.
c. appeal to cultures other than the one dominant at the company’s base of operations.
d. save money on travel.
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.
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.
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
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.
33. The first-mover strategy deals with:
a. relocating a company to a more profitable market.