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MGT 405 chapter 1


Multiple Choice Questions 1. The text addresses two perspectives of leadership as well as their implications. These two perspectives are a. Romantic and unromantic b. Romantic and internal control c. External control and unromantic d. Romantic and external control 2. A CEO made a lot of mistakes such as committing errors in assessing the market and competitive conditions and improperly redesigning the organization into numerous business units. Such errors led to significant performance declines. According to the text, this example illustrates the __________ perspective of leadership. a. External control b. Romantic c. Internal mechanism d. Operational 3. According to the text, the strategic management process entails three ongoing processes: a. Analysis, actions, and synthesis b. Analysis, decisions, and actions c. Analysis, evaluation, and critique d. Analysis, synthesis, and antithesis 4. According to Michael Porter, management innovations such as total quality, benchmarking, and business process reengineering cannot lead to sustainable competitive advantage because a. Companies that have implemented these techniques have lost money b. There is no proof that these techniques work c. They cost too much money and effort to implement d. Every company is trying to implement them and hence it does not make a company different from others 5. The “organizational versus individual rationality” perspective suggests that a. What is good for a functional area is always good for the organization b. What is good for the organization is always good for a functional area c. What is best for a functional area may not be best for the organization d. The “incremental” perspective may be best for functional areas while the “rational” perspective may be best for the organization 6. The four key attributes of strategic management include the idea that a. Strategy must be directed toward overall organizational goals and objectives b. Strategy must be focused on long-term objectives c. Strategy must be focused on one specific area of an organization d. Strategy must focus on competitor strengths 7. The four key attributes of strategic management include all of the following except: a. Including multiple stakeholder interests in decision making b. Incorporating both short-term and long-term perspectives c. Recognizing the trade-offs between effectiveness and efficiency d. Emphasis on the attainment of short-term objectives 8. “Effectiveness” is often defined as a. Doing things right b. Stakeholder satisfaction c. Doing the right thing d. Productivity enhancement 9. All of the following are ambidextrous behaviors except a. Taking initiative and being alert to opportunities beyond the confines of one’s own job b. Being cooperative and seeking opportunities to combine one’s efforts with others c. Intensely focusing on one’s own responsibilities and maximizing the output of one’s department in an organization d. Being brokers, always looking to build internal linkages 10. According to Henry Mintzberg, the realized strategies of a firm a. Are a combination of deliberate and emergent strategies b. Are a combination of deliberate and differentiation strategies c. Must be based on a company’s strategic plan d. Must be kept confidential for competitive reasons 11. According to Henry Mintzberg, decisions flowing from a firm’s strategic analysis are its a. Emergent strategy b. Deliberate strategy c. Intended strategy d. Realized strategy 12. __________ may be considered the “advance work” that must be done in order to effectively formulate and implement strategies. a. Goal setting b. Corporate entrepreneurship c. Strategy analysis d. Organizational design 13. __________ involves ensuring proper strategic controls and organizational designs. a. Corporate governance b. Corporate-level strategy c. Strategy implementation d. Business-level strategy 14. The three participants in cor


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