Test 1

Question 1

Romantic View of Leadership

Answer 1

situations in which the leader is the key force in determining the organization’s success, or lack thereof

Question 2

External Control View of Leadership

Answer 2

situations in which external forces (where the leader has limited influence) determine the organization’s success

Question 3

Strategic Management

Answer 3

analyses, decisions and actions an organization undertakes in order to create and sustain competitive advantages

Question 4

Operational Effectiveness

Answer 4

performing similar activities better than rivals

Question 5

Four Key Attributes of Strategic Management

Answer 5

Directs the organization toward overall goals and objectives (thinking about the company as a whole)
Includes multiple stakeholders in decision making
Requires incorporating both short-term and long-term perspectives
Recognition of trade-offs between effectiveness (the right thing) and efficiency (doing things right)

Question 6

Ambidexterity

Answer 6

the challenge for managers to take advantage of existing product markets and proactively exploring new opportunities

Question 7

Intended Strategy

Answer 7

organizational decisions are determined only by analysis (no unforeseen environmental developments…etc)

Question 8

Realized Strategy

Answer 8

combination of deliberate and emergent strategies

Question 9

3 Key Strategic Management Processes

Answer 9

Strategy analysis
Strategy formulation
Strategy implementation

Question 10

Strategy Analysis

Answer 10

study of firms’ external and internal environments and their fit with organizational vision and goals

Question 11

Strategy Formulation

Answer 11

decisions made by firms regarding investments, commitments and other aspects of operations that create and sustain competitive advantages

Question 12

Strategy Implementation

Answer 12

actions made by firms that carry out the formulated strategy

Question 13

Corporate Governance

Answer 13

the relationship among various participants in determining the direction and performance of corporations (management, shareholders and board of directors)

Question 14

Zero-sum

Answer 14

Zero-sum: employees wants higher wages, but that drives down profits. Suppliers want higher prices for their goods and slower and more flexible delivery times, which drives up costs

Question 15

Triple Bottom Line

Answer 15

financial, social and environmental performance

Question 16

Local-line Leaders

Answer 16

significant profit and loss responsibility

Question 17

Executive Leaders

Answer 17

champion and guide ideas, create learning infrastructure and establish a domain for taking action

Question 18

Internal Networkers

Answer 18

generate power through clarity and conviction of their ideas

Question 19

Hierarchy of Goals

Answer 19

organizational goals that range from more broad and less specific, to more specific and measurable (strategic goals-mission statement-vision)

Question 20

Vision

Answer 20

organizational goal(s) that evoke(s) powerful and compelling mental images

Question 21

Mission Statement

Answer 21

set of organizational goals that include the purpose of the organization, its scope of operations and the basis of its competitive advantage

Question 22

Strategic Objectives

Answer 22

organizational goals that are used to achieve the mission statement

Question 23

Objectives must be…

Answer 23

Measurable
Specific
Appropriate
Realistic
Timely

Question 24

Perceptual Acuity

Answer 24

the ability to sense what is coming before the fog clears

Question 25

3 Parts that Make up Forecasts

Answer 25

Environmental Scanning Environmental monitoring Competitive intelligence

Question 26

Environmental Scanning

Answer 26

surveillance of external environment to predict environmental changes and detect changes already under way (looking at P&G numbers for consumer spending)

Question 27

Environmental Monitoring

Answer 27

tracking the evolution of environmental trends, sequences of events or streams of activities (looking at CPI or net disposable income)

Question 28

Competitive Intelligence

Answer 28

collecting and interpreting data on competitors and identifying their strengths and weaknesses

Question 29

Scenario Analysis

Answer 29

an in-depth approach to environmental forecasting that involves experts' detailed assessments of societal trends and more

Question 30

SWOT Analysis

Answer 30

Strength, Weaknesses (Internal), Opportunities and Threats (External)

Question 31

Porter's Five Forces

Answer 31

Threat of new entrants Bargaining power of buyers Bargaining power of suppliers Threat of substitute products and services Intensity of rivalry among competitors in an industry

Question 32

Economies of Scale

Answer 32

decreases in cost per unit as absolute output per period increases

Question 33

Product Differentiation

Answer 33

the degree to which a product has strong brand loyalty or customer loyalty

Question 34

Powerful Buyer Group when...

Answer 34

``` Most of supplier's sales are from one buyer Products are undifferentiated Buyer faces few switching costs It earns low profits (need lower costs) Pose a threat of backward integration ```

Question 35

Powerful Supplier Group when...

Answer 35

The group is dominated by a few companies There are few or no substitutes The industry is not an important customer of the supplier group The supplier's product is an important input to the buyer's business Their products are differentiated The supplier group poses a credible threat of forward integration

Question 36

Zero-sum Game

Answer 36

situation with multiple players and winners win only by taking from other players

Question 37

Strategic Groups

Answer 37

clusters of firms that share similar strategies

Question 38

Value-Chain Analysis

Answer 38

views the organization as a sequential process of value-creating activities

Question 39

Five Primary Activities

Answer 39

inbound logistics-receiving, storing and distributing inputs of a product operations- all activities associated with transforming inputs into the final product outbound logistics-collecting, storing and distributing the product or service to buyers marketing and sales- activities associated with purchases of products and services by end users and the inducements used to get them to make purchases service-actions associated with providing service to enhance or maintain the value of the product

Question 40

4 Support Activities

Answer 40

Procurement technology development human resource management general administration

Question 41

Resource-Based View

Answer 41

firm's competitive advantages are due to their strategic resources that are valuable, rare and costly to substitute

Question 42

VRIN Model

Answer 42

Valuable Rare Inimitable Non-substitutable

Question 43

Path Dependency

Answer 43

characteristics of resources that are developed through a unique series of events

Question 44

Casual Ambiguity

Answer 44

a characteristic of the firm's resources that is costly to imitate because a competitor cannot determine what the resource is or how it was created

Question 45

Social Complexity

Answer 45

being a great company to work for also makes you a great company to work with