Organizational Leadership
Chapter Exam Questions
Course Introduction
Organizational Leadership explores the theories, principles, and practices essential for effective leadership within various types of organizations. Students examine leadership styles, decision-making processes, team dynamics, communication strategies, and the development of organizational culture. The course also addresses challenges such as change management, ethical leadership, and diversity in the workplace. Through case studies and real-world examples, students gain the skills necessary to inspire, motivate, and guide individuals and teams toward achieving organizational goals.
Recommended Textbook
Strategic Management Concepts and Cases 16th Edition by Fred R. David
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Chapter 1: The Nature of Strategic Management
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Sample Questions
Q1) All of these are pitfalls an organization should avoid in strategic planning EXCEPT A) using plans as a standard for measuring performance.
B) using strategic planning to gain control over decisions and resources.
C) failing to involve key employees in all phases of planning.
D) too hastily moving from mission development to strategy formulation.
E) being so formal in planning that flexibility and creativity are stifled.
Answer: A
Q2) The strategic-management process is becoming more widely used by A) small firms.
B) nonprofit institutions.
C) governmental organizations.
D) multinational conglomerates.
E) all of the above
Answer: E
Q3) Identifying an organization's existing vision, mission, objectives, and strategies is the final step for the strategic management process.
A)True
B)False
Answer: False
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Chapter 2: The Business Vision and Mission
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Sample Questions
Q1) A good mission statement serves as a framework for evaluating both current and prospective activities.
A)True
B)False
Answer: True
Q2) The critiqued mission statements of PepsiCo and Royal Caribbean both lacked the "Public Image" component.
A)True
B)False
Answer: False
Q3) A vision statement should answer the question, "What do we want to become?"
A)True
B)False Answer: True
Q4) In multidivisional organizations, each division should develop a mission statement consistent with and supportive of the corporate mission.
A)True
B)False Answer: True
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Chapter 3: The External Assessment
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Sample Questions
Q1) There are benefits to the U.S. economy resulting from a low value of the U.S. Dollar.
A)True
B)False
Answer: True
Q2) External audits attempt to identify key variables that offer intuitive responses.
A)True
B)False
Answer: False
Q3) Standard & Poor's NetAdvantage does not provide online access to
A) Standard & Poor's Industry Surveys.
B) Mergent's (formerly Moody's/FISOnline) Manuals.
C) stock reports.
D) The Outlook.
E) mutual fund reports.
Answer: B
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Chapter 4: The Internal Assessment
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Sample Questions
Q1) Describe the controlling function of management. Include the four basic steps that comprise this function in your description.
Q2) All of the following are basic functions of marketing EXCEPT
A) value chain analysis.
B) customer analysis.
C) product and service planning.
D) pricing.
E) distribution.
Q3) Which ratio would be considered an activity ratio?
A) Debt-to-equity
B) Net profit margin
C) Average collection period
D) Earnings per share
E) Current ratio
Q4) For a resource to be valuable, it must be either rare, hard to imitate, or not easily substitutable.
A)True
B)False
Q5) Define cultural products and give six examples of them.
Q6) Discuss how technology has affected advertising and other marketing activities.
Page 6
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Chapter 5: Strategies in Action
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Sample Questions
Q1) Under which condition would a cost leadership strategy be especially effective?
A) When there are many ways to achieve product differentiation that have value to buyers
B) When most buyers use the product in different ways
C) When buyers incur high costs in switching their purchases from one seller to another
D) When buyers are small and have little power to bargain down prices
E) When the products of rival sellers are essentially identical and supplies are readily available from any of several eager sellers
Q2) Product development is an appropriate strategy when an organization has successful products that are in the maturity stage of the product life cycle.
A)True
B)False
Q3) Chapter 13 bankruptcy is similar to Chapter 11, but available only to large corporations.
A)True
B)False
Q4) Define and give examples of three intensive strategies.
Q5) Explain each of the five types of bankruptcy: Chapters 7, 9, 11, 12 and 13.
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Chapter 6: Strategy Analysis and Choice
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Q1) The pie slice in a BCG Matrix corresponds to the proportion of corporate revenue generated by that business unit.
A)True
B)False
Q2) Both the Internal-External (IE) and Boston Consulting Group (BCG) Matrices are called ________ matrices.
A) portfolio
B) security
C) strategy
D) vector
E) velocity
Q3) Strengths-opportunities strategies are based on using a firm's internal strengths to take advantage of external opportunities.
A)True
B)False
Q4) A firm should pursue defensive strategies if the coordinates of a SPACE directional vector are (+2, +3).
A)True
B)False
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Chapter 7: Implementing Strategies: Management, Operations,
and
Human Resource Issues
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Sample Questions
Q1) Strategists should strive to preserve, emphasize, and build upon aspects of an existing culture that are antagonistic to a proposed strategy.
A)True
B)False
Q2) According to Alfred Chandler "changes in strategy lead to changes in organizational structure."
A)True
B)False
Q3) Discuss how work life/home life balance is being addressed by organizations.
Q4) Which of the following is in keeping with the current view of organizational change?
A) Organizational change is a project.
B) Organizational change is a continuous process.
C) Organizational change is an event.
D) Organizational change involves unfreezing behavior, changing the behavior, and then refreezing the new behavior.
E) All of the above
Q5) How does reengineering differ from restructuring?
Page 9
Q6) List the four basic ways a divisionally structured firm could be organized.
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Chapter 8: Implementing Strategies: Marketing, Financeaccounting,
Rd, and Mis
Issues
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Q1) R&D issues include emphasis on product or process improvements.
A)True
B)False
Q2) Discuss the three rules mentioned in the text for using product positioning as a strategy-implementation tool.
Q3) Information collection, retrieval, and storage can be used to create competitive advantages in ways such as
A) cross-selling to customers.
B) monitoring suppliers.
C) keeping managers and employees informed.
D) coordinating activities among divisions.
E) all of the above
Q4) A firm can usually serve two or more market segments with the same strategy. A)True B)False
Q5) Additional capital is often required for successful strategy implementation. A)True
B)False
10
Q6) Name three finance and accounting activities especially important in strategy implementation.
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Chapter 9: Strategy Review, Evaluation, and Control
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Sample Questions
Q1) The U.S. Chamber of Commerce is against the accounting switch from GAAP to IFRS, saying it will cause cross-border commerce to decline.
A)True
B)False
Q2) ________ are quantitative criteria commonly used to evaluate strategies.
A) Cash budgets
B) Balanced Scorecards
C) Capital Asset Pricing Models
D) Financial ratios
E) Present value strategic analyses
Q3) Timely approximate information is generally more desirable as a basis for strategy evaluation than accurate information that does not depict the present.
A)True
B)False
Q4) Each year, Fortune publishes strategy-evaluation research on both the United States and other countries.
A)True
B)False
Q5) List and describe Rumelt's four criteria for evaluating strategies.
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Chapter 10: Business Ethics, Social Responsibility, and Environmental Sustainability
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Q1) Despite greater interest in sustainability, uniform standards defining environmentally responsible company actions are only slowly being incorporated into the legal landscape.
A)True
B)False
Q2) Within an organization, who is responsible for providing ethics leadership?
Q3) Three individuals received $170 million for helping investigators obtain a record $16.65 billion penalty against Bank of America for inflating the value of mortgage properties and selling defective loans to investors.
A)True
B)False
Q4) A well written code of ethics ensures ethical business behavior.
A)True
B)False
Q5) All of the following statements are true EXCEPT
A) ISO is the world's largest developer of sustainability standards.
B) ISO standards are widely accepted all over the world.
C) ISO has legal authority to enforce its regulations' implementation.
D) ISO standards are voluntary.
E) ISO itself does not regulate or legislate.
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Chapter 11: Global and International Issues
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Q1) Discuss at least four potential disadvantages to initiating, continuing, and/or expanding international operations.
Q2) Spoken Chinese has more in common with spoken English than with spoken Japanese or Korean.
A)True
B)False
Q3) While multinational corporations face almost limitless social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive opportunities and threats, the number and complexity of these factors do not dramatically increase with the number of products produced and the number of geographic areas served.
A)True
B)False
Q4) Brazil offers skilled labor and technology, while Germany offers abundant natural resources and rapidly developing markets.
A)True
B)False
Q5) Describe some key features of the European work environment.
Q6) Discuss union membership across Europe.
Page 14
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