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Strategic Management > Test 1 > Flashcards

Test 1 Flashcards

1
Q

Vice President James E. Small is responsible for executing decisions about human resources. Mr. Small is

A

… a functional manager

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2
Q

What managers are responsible for the specific business functions or operations that constitute a company or one of its divisions?

A

Functional managers

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3
Q

The first component of the strategic management process is…

A

crafting the organization’s mission statement, which provides the framework or context within which strategies are formulated

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4
Q

Strategy formulation refers to the…

A

task of analyzing the organization’s external and internal environment and then selecting an appropriate strategy

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5
Q

A mission statement has ____________ main components

A

Four

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6
Q

What enables a firm to evaluate the effectiveness of its strategic choices

A

The feedback loop

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7
Q

What strategies are often a result of unplanned action taken in response to unforeseen circumstances

A

Emergent strategies

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8
Q

The comparison of strengths, weaknesses, opportunities, and threats is normally referred to as a/an

A

SWOT analysis

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9
Q

When considering emergent strategies, it is important for a firm’s managers to…

A

…assess whether the emergent strategy fits the company’s needs and capabilities.

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10
Q

What does The scenario approach to strategic planning involve?

A

formulating plans that are based upon “what if” scenarios about the future.

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11
Q

What occurs when strategic plans are formulated in a vacuum by top managers who have little understanding or appreciation of current operating realities.

A

Ivory tower planning

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12
Q

One important way in which managers can make better use of their knowledge and information is to understand and manage their _____________ during the course of decision-making

A

Emotions

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13
Q

What cognitive bias occurs when decision makers commit even more resources if they receive feedback that the project is failing?

A

Escalating commitment

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14
Q

_______________ is rooted in the tendency to generalize from a small sample or even a single vivid anecdote

A

Representativeness

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15
Q

Jeffrey Pfeffer believes that a manager’s political power comes from his or her control over

A

organizational resources

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16
Q

What involves one group member being responsible for questioning the assumptions of a plan.

A

Devils advocacy

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17
Q

Effective _________________ develop a network of formal and informal sources who keep them well informed about what is going on within their company

A

strategic leaders

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18
Q

Internal stakeholders of a company include

A

the board of directors

19
Q

External stakeholders of a company include

A

Customers

20
Q

What group is not among the external claimants on a company?

A

Stockholders

21
Q

The ___________ of a company lay(s) out some desired future state.

A

Vision

22
Q

What are the characteristics of well-constructed goals?

A

a. They are precise and measurable.
b. They are challenging but realistic
c. They specify a time period.
d. They address crucial issues. Incorrect

23
Q

The capital that stockholders provide to a company is seen as

A

risk capital

24
Q

______________________ is the set of values, norms, and standards that control how employees work to achieve an organization’s mission and goals

A

organizational culture

25
Q

When managers pursue strategies that are not in the interests of stockholders, this is called __________________.

A

Agency problem

26
Q

What are the types of governance mechanism?

A

a. The takeover constraint
b. The board of directors
c. Stock-based compensation Incorrect
d. Financial statements

27
Q

The centerpiece of the corporate governance system in the United States and the United Kingdom is___________________.

A

the board of directors

28
Q

The most common pay-for-performance system that have been to give managers is ________________.

A

stock options

29
Q

Publicly trading companies in the United States are required to file quarterly and __________ reports with the SEC that are prepared according to GAAP

A

Annual

30
Q

What are the responsibilities of the board of directors?

A

a. Monitor corporate strategy decisions and ensure that they are consistent with stockholders interests
c. Hire, fire, and compensate the CEO
d. Apply sanctions on management when appropriate Incorrect
e. Make sure the audited financial statements present a true picture of the company’s financial situation

31
Q

In the business arena the laws that govern product liability are called __________________.

A

Tort laws

32
Q

A takeover constraint does what?

A

Limits the extent to which managers can pursue strategies that are inconsistent with shareholder interest through the risk of being acquired by another company

33
Q

Business ethics is primarily concerned with

A

ensuring managers weigh the ethical implications of their decisions.

34
Q

The most common examples of unethical behavior include…

A

a. information manipulation
b. self-dealing
c. anti-competitive behavior
d. the maintenance of substandard working conditions

35
Q

What are the potential causes of unethical behavior in organizations?

A

a. Failure to examine the ethical dimensions of a decision
b. An organizational culture that de-emphasizes ethical behavior
c. Management pressure to meet organizational objectives by “cutting corners”
d. Weak ethical leadership

36
Q

When managers of a firm seek to unilaterally rewrite the terms of a contract with suppliers, buyers, or complement providers in a way that is more favorable to their firm they are engaging in

A

opportunistic exploitation.

37
Q

When managers pay bribes to gain access to lucrative business contracts they are engaging in

A

Corruption

38
Q

To make sure that ethical issues are considered in business decisions

A

Top managers should articulate and model ethical behaviors

39
Q

_____________ covers a range of actions aimed at harming actual or potential competitors, most often by using monopoly power, thereby enhancing the long-run prospects of the firm.

A

Anti-competitive behavior

40
Q

_______________ are individuals who are responsible for making sure that all employees are trained to be ethically aware, that ethical considerations enter the business decision-making process, and that the company code of ethics is adhered to.

A

Ethics officers

41
Q

Identify the three levels of strategic managers and discuss their role in the strategic management process.

A

Ch 1

42
Q

Discuss the four best ways for managers to make sure that the ethical considerations are taken into account when making business decisions.

A

Ch 2

43
Q

A competitive advantage is considered to be a sustained competitive advantage when…

A

.. it is able to maintain above-average profitability for a number of years

Strategic Management (4 decks)

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