Chapter 1

Question 0

Situations in which external forces, where the leader has limited influence, determine the organization’s success.

Answer 0

External control view of leadership

Question 1

Situations in which the leader is the key force determining the organization’s success or lack thereof.

Answer 1

Romantic view of leadership

Question 2

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

Answer 2

Strategic management

Question 3

The ideas, decisions, and actions that enable a firm to succeed.

Answer 3

Strategy

Question 4

A firm’s resources and capabilities that enable it to overcome the competitive forces in its industry.

Answer 4

Competitive advantage

Question 5

Performing similar activities better than rivals.

Answer 5

Operational effectiveness

Question 6

Individuals, groups, and organizations who have a stake in the success of the organization, including owners (shareholders in a publicly held corporation), employees, customers, suppliers, and the community at large.

Answer 6

Stakeholders

Question 7

Tailoring actions to the needs of an organization rather than wasting effort, or “doing the right thing.”

Answer 7

Effectiveness

Question 8

Performing actions at a low cost relative to a benchmark, or “doing things right.”

Answer 8

Efficiency

Question 9

The challenge managers face of both aligning resources to take advantage of existing product markets as well as proactively exploring new opportunities.

Answer 9

Ambidexterity

Question 10

Strategy analysis, strategy formulation, and strategy implementation.

Answer 10

Strategic management process

Question 11

Strategy in which organizational decisions are determined only by analysis.

Answer 11

Intended strategy

Question 12

Strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments, unanticipated resource constraints, and/or changes in managerial preferences.

Answer 12

Realized strategy

Question 13

Study of firms’ external and internal environments, and their fit with organizational vision and goals.

Answer 13

Strategy analysis

Question 14

Decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain competitive advantage.

Answer 14

Strategy formulation

Question 15

Actions made by firms that carry out the formulated strategy, including strategic controls, organizational design, and leadership.

Answer 15

Strategy implementation

Question 16

The relationship among various participants in determining the direction and performance of corporations. The primary participants are (1) the shareholders, (2) the management (led by the CEO), and (3) the board of directors.

Answer 16

Corporate governance

Question 17

A firm’s strategy for recognizing and responding to the interests of all its salient stakeholders.

Answer 17

Stakeholder management

Question 18

Practice wherein the Internet is used to tap a broad range of individuals and groups to generate ideas and solve problems.

Answer 18

Crowdsourcing

Question 19

The expectation that businesses or individuals will strive to improve the overall welfare of society.

Answer 19

Social responsibility

Question 20

Assessment of a firm’s financial, social, and environmental performance.

Answer 20

Triple bottom line

Question 21

Organizational goals ranging from, at the top, those that are less specific yet able to evoke powerful and compelling mental images, to, at the bottom, those that are more specific and measurable.

Answer 21

Hierarchy of goals

Question 22

Organizational goal(s) that evoke(s) powerful and compelling mental images.

Answer 22

Vision

Question 23

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

Answer 23

Mission statement