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g g g g g g g g g
StrategicgManagement,g4eg(Rothaermel)
Chapterg2 StrategicgLeadership:gManaginggthegStrategygProcess
1) Executivesgwhosegvisionsgandgdecisionsghelpgtheirgcompaniesgachievegcompetitivegadvantageg
cangbegconsideredgstrategicgleaders.
2) Strategicgleadersgspendgthegmajoritygofgtheirgtimegworkinggalonegtogdevisegnewgstrategies.
3) Angemployeeglackinggsomegofgtheginnategabilitiesgtogbegagtop-
levelgmanagergcangstillgbecomegangeffectivegstrategicgleadergthroughghardgworkgandgexperience.
4) Itgisghelpfulgtogbreakgdowngstrategygformulationgandgstrategygimplementationgintogfivegdistinctga
reas.
5) ThegautocraticgstrategicgmanagementgprocessgexhibitedgbygthegformergheadgofgApple,gStevegJ
obs,gisgbestgdescribedgasgangemergentgstrategy.
6) Agsurprisegeventgthatgleadsgtogagchangegingstrategicginitiatives,gsuchgasgthegaccidentalgdiscoverygo
fgagnewgusegforgangexistinggproduct,gisgknowngasgserendipity.
7) Agfirm'sgresource-allocationgprocessg(RAP)ghasgveryglittlegeffectgongitsgrealizedgstrategy.
8) Becausegtheygaregagcrucialgcomponentgofgagfirm'sgsuccess,gcustomersgaregconsideredginternalgs
takeholders.
9) Agfirmgisgrequiredgbygsocietygandgitsgshareholdersgtogmeetgitsgethicalgandgphilanthropicgr
esponsibilities.
10) Undergthegstrategygasgagplannedgemergencegmodel,gevengentry-
levelgemployeesgcanghelpggenerategstrategicginitiatives.
11) AsgthegCEOgofgagconglomerate,gEvagMorrisgexhibitedghergstronggcommitmentgtowardgthegco
mpany'sgcoregvaluegthatgcustomers'gwell-
beinggisgmoregimportantgthangprofitgwhengshegconvincedgthegboardgofgdirectorsgtogliquidategthegco
mpany'sgpesticidegsubsidiary.gThegpesticidegbrandgsoldgbyghergcompanygwasgagmajorgrevenuegear
nerginglesser-
developedgnations,gbutgstudiesgindicategthatgitgisgagcarcinogen.gEvagpersuadedgthegboardgthatgthegc
ompanyghadgtogbegresponsiblegtowardgsociety.gIngthisgscenario,gEvaghasgdemonstrated
A) strategicgleadership.
B) intrapreneurship.
C) Machiavellianism.
D) individualism.
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g g g g g g g g g
12) Strategicgleadershipgpertainsgtogthegusegofgpowergandginfluencegbyg
togdirectgthegactivitiesgofgothersgwhengpursuinggangorganization'sggoals.
A) productiongworkers
B) lower-levelgmanagers
C) externalgstakeholders
D) corporategexecutives
13) HannahgisgthegChiefgOperatinggOfficergofgthegstartupgAppPalace.gIngwhichgofgthegfollowinggs
cenariosgdoesgHannahgexhibitgstrategicgleadership?
A) Hannahgdirectsgthegcompanygtogproducegangappgforgreptilegenthusiasts,gagcommunitygshegh
appensgtogbegagpartgof.gEvengthoughgthegappgendsgupglosinggsignificantgamountsgofgmoney,gH
annahgisgproudgofgthegproductgandgusesgitgeverygday.
B) Citinggbudgetgconcerns,gHannahgignoresgthegdirectionsgfromgAppPalace'sgCEOgtogdoublegthegs
izegofgthegcustomergsupportgstaff.gAsgagresult,gthegcompanygmissesgitsgthirdgquartergcustomergsatis
factiongtargetgbutgexceedsgitsgnetgprofitgexpectationsgbyg5gpercent.
C) Hannahgschedulesgagmeetinggwithgthegmanagergofgthegmarketinggdepartmentgandgovercomesg
hisgskepticismgaboutgagnewgcampaigngaimedgatgcustomersgingtheg55+gageggroup.gOvergthegnextgth
reegmonths,gAppPalaceggainsg250,000gnewgusersgingthatggroup.
D) Withgagmajorgpitchgtogpotentialginvestorsgcominggup,gHannahgworksgalonegforg10ghoursgagdaygu
ntilgshegwritesgthegperfectgsalesgpitch.gEvengthoughgthegrestgofghergteamgdoubtsgthatgtheygcangmeetg
thegperformanceggoalsgHannahghasgset,gshegmakesgthegpresentationganyway.
14) ThegCEOgofgMabelgAutomobilesgwasgthegchildgofgparentsgwhoghadgdifficultygmakinggenoughg
moneygtogsupportgtheirgfamily.gAsgagresult,ghegandghisgsiblingsgdidgnotghavegaccessgtogmanygadvanta
gesgthatgchildrengfromgwealthiergfamiliesghad.gThisgCEO,gtherefore,gemphasizedgmakinggaffordabl
e,glow-maintenancegvehiclesgthatgcouldgbegboughtgbyglow-
incomeghouseholds.gWhichgofgthegfollowinggdoesgthisgexamplegdemonstrate?
A) dominantgstrategicgplanning
B) Level-5gleadershipgpyramid
C) upper-echelonsgtheory
D) scenariogplanning
15) Yukigisgpartgofgagsalesgteam.gHegeffectivelygcoordinatesghisgtasksgwithgothersgingthegteamgandg
willinglygcontributesgtogtheirgeffortsgingachievinggthegteam'sgobjectives.gThus,gYukigisgin
ofgthegLevel-5gleadershipgpyramid.
A) Levelg5
B) Levelg4
C) Levelg3
D) Levelg2
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g g g g g g g g g
16) TrungghasgbeengangemployeegwithgPureEnergygInc.gforg15gyears.gHegstartedgwithgangentry-
glevelgjob,gandgtodayghegisgagmanagergofgangentiregdivision.gOvergthegyears,gTrungghasgacquiredgagr
eputationgforgdoinggthegrightgthingsgingthegcompany.gHence,gasgangefficientgleader,ghegisgcapablegof
geffectivelygcommunicatinggandgmotivatingghisgsubordinatesgtogworkgtowardgthegcompany'sgvisio
ngandgmission.gAccordinggtogthegLevel-
5gleadershipgpyramid,gwhichgisgtheghighestglevelgofgleadershipgTrungghasgreachedgsogfar?
A) Levelg5
B) Levelg4
C) Levelg3
D) Levelg2
17) WhichgofgthegfollowinggbestgdescribesgagLevelg5gmanagergingthegLevel-5gleadershipgpyramid?
A) ConniegisgangemployeegwhogjustgstartedghergcareergatgDKgInc.;gsheghasgalreadygbeenga
ppreciatedgforghergknowledgegandgskillsgingthegnewgcompany.
B) DmitrigisgangemployeegatgInfinitegCirclegInc.;gheghasghelpedghisgteamgachievegtheirgtargetsgbygc
ontributinggtogthegteam'sgefforts.
C) LuigigisgpartgofgthegmarketinggteamgatgRTgCorp.;gheghasgbeenggivengthegchargegofgmanaginggagte
amgofgthree,gsoghegwillgbegpromotedgtogagmanager'sgpositiongnextgmonth.
D) AsokagisgthegCEOgofgGreengMachinesgInc.;gheghasghelpedghisgcompanyginggaininggandgs
ustaininggagcompetitivegadvantagegthroughgethicalgdecisiongmaking.
18) TriCorpgisgagmajorgfinancialgservicesgcorporation.gWithgthegCEOgofgTriCorpgpreparinggtogret
ire,gseveralgtopgmanagersgaregvyinggforgthegposition.gJaredgconsidersghimselfgtogbegagleadinggcand
idate.gHegnotgonlyghasgadvancedgdegreesgfromgbusinessgschoolsgandgmoregthangagdecadegofgexper
iencegworkinggforgTriCorp,gbutghegalsoghasgpersonallygensuredgthatghisgdivisionghasgexceededgitsg
performancegbenchmarksgovergthegpastgthreegyears,gevengthoughgmanygofghisgemployeesgaregdiss
atisfiedgbecausegtheygfeelgtheygaregstagnatinggingtheirgjobs.gAccordinggtogtheglevelg5gleadershipgp
yramid,gwhyghasgJaredgfailedgtogexhibitgthegqualitiesgofgaglevel-5gleader?
A) Hisgindividualgskillsgaregnotgwellgdeveloped.
B) Hisgactionsgdognotgmatchgthegorganization'sgstrategy.
C) Heglacksgthegorganizationalgabilitygtogaccomplishgthegorganization'sggoals.
D) Hegisgnotgablegtoghelpgothersgreachgtheirgfullgpotential.
19) Whichgofgthegfollowinggsummarizesgthegdifferencegbetweengcorporategstrategygandgbusinessgs
trategy?
A) Corporategstrategygdealsgwithghowgtogcompete;gbusinessgstrategygdealsgwithgwheregtogcompete.
B) Corporategstrategygdealsgwithgwhengtogcompete;gbusinessgstrategygdealsgwithghowgtogcompete.
C) Corporategstrategygdealsgwithghowgtogcompete;gbusinessgstrategygdealsgwithgwhengtogcompete.
D) Corporategstrategygdealsgwithgwheregtogcompete;gbusinessgstrategygdealsgwithghowgtogcompete.
20) CorporategexecutivesgatgLikeReal,gInc.gdecidegtogcompetegingthegremotegmodelgairplanegin
dustrygbygmakinggtheglargestgmodelgplanesgavailable.gBygdoinggthis,gtheygcompletedgpartgofgthe
ir
A) implementationgstrategy.
B) corporategstrategy.
C) functionalgstrategy.
D) businessgstrategy.
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g g g g g g g g g
21) ThegformergCEOgofgSam'sgClub,gagdivisiongwithgitsgowngprofit-and-
lossgresponsibility,gRosalindgBrewer,greportedgtogWalmart'sgCEO,gC.gDouglasgMcMillon,gwhogasgc
orporategexecutivegoverseesgWalmart'sgentiregoperations.gSam'sgClub,gtherefore,gisgag
ofgWalmart.
A) corporategpartner
B) strategicgbusinessgunit
C) branchgoffice
D) housegbrandgmanufacturer
22) ThegCEOgofgChyrongMediaghasgdecidedgtogentergthegmarketsgofgemerginggnationsglikegChinaga
ndgBrazil.gThisgmeansgthatgthegbooks,gmagazines,gandgwebsitesgpublishedgundergthegChyrongMedi
agbannergwouldgbegmadegavailablegingthesegnations.gWhichgofgthegfollowinggstrategiesgdoesgthisgsc
enariogbestgillustrate?
A) corporategstrategy
B) functionalgstrategy
C) businessgstrategy
D) divisionalgstrategy
23) Asgagpartgofgstrategygformulation,gagfirm'sgfunctionalgstrategygprimarilygconcernsgquestionsgr
elatinggto
A) wheregtogcompete.
B) whengtogcompete.
C) howgtogimplementgbusinessgstrategy.
D) howgtogentergtargetgmarkets.
24) Ingaglargegcompany,gwhogisgmostgresponsiblegforgdevisinggthegcorporategstrategy?
A) thegCEOgofgthegcompany
B) theglower-levelgemployeesgingthegcompany
C) thegheadgofgthegproductiongdepartmentgingthegcompany
D) theghumangresourcegmanagergingthegcompany
25) Whichgofgthegfollowinggstatementsgisgtruegofgcorporategstrategy?
A) Thegobjectivegofgcorporate-
levelgstrategygisgtogensuregthatgthegsumgofgthegvaluesgofgindividualgbusinessgunitsgisggreatergthangth
egoverallgcorporategvalue.
B) Agcorporategstrategygmustgbegablegtogcreategsynergiesgacrossgbusinessgunitsgthatgaregquitegd
ifferent.
C) Formulatinggagcorporategstrategyginvolvesggeneralgmanagersgansweringgquestionsgrelatinggtog
howgtogcompetegingordergtogachievegsuperiorgperformance.
D) Decidinggwhethergtogadoptgagdifferentiationgorgagcost-
leadershipgstrategygisgpartgofgformulatinggthegcorporategstrategy.
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g g g g g g g g g
StrategicgManagement,g4eg(Rothaermel)
Chapterg2 StrategicgLeadership:gManaginggthegStrategygProcess
1) Executivesgwhosegvisionsgandgdecisionsghelpgtheirgcompaniesgachievegcompetitivegadvantageg
cangbegconsideredgstrategicgleaders.
2) Strategicgleadersgspendgthegmajoritygofgtheirgtimegworkinggalonegtogdevisegnewgstrategies.
3) Angemployeeglackinggsomegofgtheginnategabilitiesgtogbegagtop-
levelgmanagergcangstillgbecomegangeffectivegstrategicgleadergthroughghardgworkgandgexperience.
4) Itgisghelpfulgtogbreakgdowngstrategygformulationgandgstrategygimplementationgintogfivegdistinctga
reas.
5) ThegautocraticgstrategicgmanagementgprocessgexhibitedgbygthegformergheadgofgApple,gStevegJ
obs,gisgbestgdescribedgasgangemergentgstrategy.
6) Agsurprisegeventgthatgleadsgtogagchangegingstrategicginitiatives,gsuchgasgthegaccidentalgdiscoverygo
fgagnewgusegforgangexistinggproduct,gisgknowngasgserendipity.
7) Agfirm'sgresource-allocationgprocessg(RAP)ghasgveryglittlegeffectgongitsgrealizedgstrategy.
8) Becausegtheygaregagcrucialgcomponentgofgagfirm'sgsuccess,gcustomersgaregconsideredginternalgs
takeholders.
9) Agfirmgisgrequiredgbygsocietygandgitsgshareholdersgtogmeetgitsgethicalgandgphilanthropicgr
esponsibilities.
10) Undergthegstrategygasgagplannedgemergencegmodel,gevengentry-
levelgemployeesgcanghelpggenerategstrategicginitiatives.
11) AsgthegCEOgofgagconglomerate,gEvagMorrisgexhibitedghergstronggcommitmentgtowardgthegco
mpany'sgcoregvaluegthatgcustomers'gwell-
beinggisgmoregimportantgthangprofitgwhengshegconvincedgthegboardgofgdirectorsgtogliquidategthegco
mpany'sgpesticidegsubsidiary.gThegpesticidegbrandgsoldgbyghergcompanygwasgagmajorgrevenuegear
nerginglesser-
developedgnations,gbutgstudiesgindicategthatgitgisgagcarcinogen.gEvagpersuadedgthegboardgthatgthegc
ompanyghadgtogbegresponsiblegtowardgsociety.gIngthisgscenario,gEvaghasgdemonstrated
A) strategicgleadership.
B) intrapreneurship.
C) Machiavellianism.
D) individualism.
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g g g g g g g g g
12) Strategicgleadershipgpertainsgtogthegusegofgpowergandginfluencegbyg
togdirectgthegactivitiesgofgothersgwhengpursuinggangorganization'sggoals.
A) productiongworkers
B) lower-levelgmanagers
C) externalgstakeholders
D) corporategexecutives
13) HannahgisgthegChiefgOperatinggOfficergofgthegstartupgAppPalace.gIngwhichgofgthegfollowinggs
cenariosgdoesgHannahgexhibitgstrategicgleadership?
A) Hannahgdirectsgthegcompanygtogproducegangappgforgreptilegenthusiasts,gagcommunitygshegh
appensgtogbegagpartgof.gEvengthoughgthegappgendsgupglosinggsignificantgamountsgofgmoney,gH
annahgisgproudgofgthegproductgandgusesgitgeverygday.
B) Citinggbudgetgconcerns,gHannahgignoresgthegdirectionsgfromgAppPalace'sgCEOgtogdoublegthegs
izegofgthegcustomergsupportgstaff.gAsgagresult,gthegcompanygmissesgitsgthirdgquartergcustomergsatis
factiongtargetgbutgexceedsgitsgnetgprofitgexpectationsgbyg5gpercent.
C) Hannahgschedulesgagmeetinggwithgthegmanagergofgthegmarketinggdepartmentgandgovercomesg
hisgskepticismgaboutgagnewgcampaigngaimedgatgcustomersgingtheg55+gageggroup.gOvergthegnextgth
reegmonths,gAppPalaceggainsg250,000gnewgusersgingthatggroup.
D) Withgagmajorgpitchgtogpotentialginvestorsgcominggup,gHannahgworksgalonegforg10ghoursgagdaygu
ntilgshegwritesgthegperfectgsalesgpitch.gEvengthoughgthegrestgofghergteamgdoubtsgthatgtheygcangmeetg
thegperformanceggoalsgHannahghasgset,gshegmakesgthegpresentationganyway.
14) ThegCEOgofgMabelgAutomobilesgwasgthegchildgofgparentsgwhoghadgdifficultygmakinggenoughg
moneygtogsupportgtheirgfamily.gAsgagresult,ghegandghisgsiblingsgdidgnotghavegaccessgtogmanygadvanta
gesgthatgchildrengfromgwealthiergfamiliesghad.gThisgCEO,gtherefore,gemphasizedgmakinggaffordabl
e,glow-maintenancegvehiclesgthatgcouldgbegboughtgbyglow-
incomeghouseholds.gWhichgofgthegfollowinggdoesgthisgexamplegdemonstrate?
A) dominantgstrategicgplanning
B) Level-5gleadershipgpyramid
C) upper-echelonsgtheory
D) scenariogplanning
15) Yukigisgpartgofgagsalesgteam.gHegeffectivelygcoordinatesghisgtasksgwithgothersgingthegteamgandg
willinglygcontributesgtogtheirgeffortsgingachievinggthegteam'sgobjectives.gThus,gYukigisgin
ofgthegLevel-5gleadershipgpyramid.
A) Levelg5
B) Levelg4
C) Levelg3
D) Levelg2
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g g g g g g g g g
16) TrungghasgbeengangemployeegwithgPureEnergygInc.gforg15gyears.gHegstartedgwithgangentry-
glevelgjob,gandgtodayghegisgagmanagergofgangentiregdivision.gOvergthegyears,gTrungghasgacquiredgagr
eputationgforgdoinggthegrightgthingsgingthegcompany.gHence,gasgangefficientgleader,ghegisgcapablegof
geffectivelygcommunicatinggandgmotivatingghisgsubordinatesgtogworkgtowardgthegcompany'sgvisio
ngandgmission.gAccordinggtogthegLevel-
5gleadershipgpyramid,gwhichgisgtheghighestglevelgofgleadershipgTrungghasgreachedgsogfar?
A) Levelg5
B) Levelg4
C) Levelg3
D) Levelg2
17) WhichgofgthegfollowinggbestgdescribesgagLevelg5gmanagergingthegLevel-5gleadershipgpyramid?
A) ConniegisgangemployeegwhogjustgstartedghergcareergatgDKgInc.;gsheghasgalreadygbeenga
ppreciatedgforghergknowledgegandgskillsgingthegnewgcompany.
B) DmitrigisgangemployeegatgInfinitegCirclegInc.;gheghasghelpedghisgteamgachievegtheirgtargetsgbygc
ontributinggtogthegteam'sgefforts.
C) LuigigisgpartgofgthegmarketinggteamgatgRTgCorp.;gheghasgbeenggivengthegchargegofgmanaginggagte
amgofgthree,gsoghegwillgbegpromotedgtogagmanager'sgpositiongnextgmonth.
D) AsokagisgthegCEOgofgGreengMachinesgInc.;gheghasghelpedghisgcompanyginggaininggandgs
ustaininggagcompetitivegadvantagegthroughgethicalgdecisiongmaking.
18) TriCorpgisgagmajorgfinancialgservicesgcorporation.gWithgthegCEOgofgTriCorpgpreparinggtogret
ire,gseveralgtopgmanagersgaregvyinggforgthegposition.gJaredgconsidersghimselfgtogbegagleadinggcand
idate.gHegnotgonlyghasgadvancedgdegreesgfromgbusinessgschoolsgandgmoregthangagdecadegofgexper
iencegworkinggforgTriCorp,gbutghegalsoghasgpersonallygensuredgthatghisgdivisionghasgexceededgitsg
performancegbenchmarksgovergthegpastgthreegyears,gevengthoughgmanygofghisgemployeesgaregdiss
atisfiedgbecausegtheygfeelgtheygaregstagnatinggingtheirgjobs.gAccordinggtogtheglevelg5gleadershipgp
yramid,gwhyghasgJaredgfailedgtogexhibitgthegqualitiesgofgaglevel-5gleader?
A) Hisgindividualgskillsgaregnotgwellgdeveloped.
B) Hisgactionsgdognotgmatchgthegorganization'sgstrategy.
C) Heglacksgthegorganizationalgabilitygtogaccomplishgthegorganization'sggoals.
D) Hegisgnotgablegtoghelpgothersgreachgtheirgfullgpotential.
19) Whichgofgthegfollowinggsummarizesgthegdifferencegbetweengcorporategstrategygandgbusinessgs
trategy?
A) Corporategstrategygdealsgwithghowgtogcompete;gbusinessgstrategygdealsgwithgwheregtogcompete.
B) Corporategstrategygdealsgwithgwhengtogcompete;gbusinessgstrategygdealsgwithghowgtogcompete.
C) Corporategstrategygdealsgwithghowgtogcompete;gbusinessgstrategygdealsgwithgwhengtogcompete.
D) Corporategstrategygdealsgwithgwheregtogcompete;gbusinessgstrategygdealsgwithghowgtogcompete.
20) CorporategexecutivesgatgLikeReal,gInc.gdecidegtogcompetegingthegremotegmodelgairplanegin
dustrygbygmakinggtheglargestgmodelgplanesgavailable.gBygdoinggthis,gtheygcompletedgpartgofgthe
ir
A) implementationgstrategy.
B) corporategstrategy.
C) functionalgstrategy.
D) businessgstrategy.
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g g g g g g g g g
21) ThegformergCEOgofgSam'sgClub,gagdivisiongwithgitsgowngprofit-and-
lossgresponsibility,gRosalindgBrewer,greportedgtogWalmart'sgCEO,gC.gDouglasgMcMillon,gwhogasgc
orporategexecutivegoverseesgWalmart'sgentiregoperations.gSam'sgClub,gtherefore,gisgag
ofgWalmart.
A) corporategpartner
B) strategicgbusinessgunit
C) branchgoffice
D) housegbrandgmanufacturer
22) ThegCEOgofgChyrongMediaghasgdecidedgtogentergthegmarketsgofgemerginggnationsglikegChinaga
ndgBrazil.gThisgmeansgthatgthegbooks,gmagazines,gandgwebsitesgpublishedgundergthegChyrongMedi
agbannergwouldgbegmadegavailablegingthesegnations.gWhichgofgthegfollowinggstrategiesgdoesgthisgsc
enariogbestgillustrate?
A) corporategstrategy
B) functionalgstrategy
C) businessgstrategy
D) divisionalgstrategy
23) Asgagpartgofgstrategygformulation,gagfirm'sgfunctionalgstrategygprimarilygconcernsgquestionsgr
elatinggto
A) wheregtogcompete.
B) whengtogcompete.
C) howgtogimplementgbusinessgstrategy.
D) howgtogentergtargetgmarkets.
24) Ingaglargegcompany,gwhogisgmostgresponsiblegforgdevisinggthegcorporategstrategy?
A) thegCEOgofgthegcompany
B) theglower-levelgemployeesgingthegcompany
C) thegheadgofgthegproductiongdepartmentgingthegcompany
D) theghumangresourcegmanagergingthegcompany
25) Whichgofgthegfollowinggstatementsgisgtruegofgcorporategstrategy?
A) Thegobjectivegofgcorporate-
levelgstrategygisgtogensuregthatgthegsumgofgthegvaluesgofgindividualgbusinessgunitsgisggreatergthangth
egoverallgcorporategvalue.
B) Agcorporategstrategygmustgbegablegtogcreategsynergiesgacrossgbusinessgunitsgthatgaregquitegd
ifferent.
C) Formulatinggagcorporategstrategyginvolvesggeneralgmanagersgansweringgquestionsgrelatinggtog
howgtogcompetegingordergtogachievegsuperiorgperformance.
D) Decidinggwhethergtogadoptgagdifferentiationgorgagcost-
leadershipgstrategygisgpartgofgformulatinggthegcorporategstrategy.
4
Copyrightg©2019gMcGraw-Hill
mynursytest.store
