1.
The success Apple, Inc. achieved over the past decade was a direct result of the creative and forceful leadership of its late CEO, Steve Jobs. According to the text, this would be an example of the "romantic" perspective of leadership.
TRUE
2.
Strategic management consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.
TRUE
3.
The three interrelated and principal activities of strategic management are: strategy analysis, strategy formulation, and strategy implementation.
TRUE
4.
According to the textbook, strategic management does not consist of the analyses that an organization undertakes in order to create and sustain competitive advantages.
FALSE
5.
Management innovations such as total quality, just-in-time, benchmarking, business process reengineering, and outsourcing are important, but not enough for building sustainable competitive advantage.
TRUE
6.
Strategic management recognizes the trade-offs between effectiveness and efficiency.
TRUE
7.
According to Henry Mintzberg, a management scholar, most firms realize their original intended strategy.
FALSE
8.
According to the text, formulating strategy includes taking into consideration strategy at the business, corporate, and international levels.
TRUE
Business-level strategy focuses on (1) what businesses to compete in, and (2) the management of the business portfolio to create synergy among its businesses.
9.
FALSE
10.
Corporate-level strategy addresses how firms compete and outperform their rivals as well as achieve and sustain competitive advantages.
FALSE
11.
Effective leadership can play a large role in fostering corporate entrepreneurship. Corporate entrepreneurship can have a very positive impact on the bottom line of a firm.
TRUE
12.
The three primary participants in corporate governance are: (1) the shareholders, (2) the management (led by the chief executive officer), and (3) the employees.
FALSE
13.
Decisions by boards of directors are always consistent with shareholder interests.
FALSE
14.
Former Chrysler vice chairman Robert Lutz observed that companies exist to serve the shareholder and create shareholder value. He insisted that the only person who owns the company is the person who paid good money for it. This is an example of a symbiotic approach to stakeholder management.
FALSE
15.
Stockholders in a company are the only individuals with an interest in the financial performance of the company.
FALSE
16.
Stockholders, employees, and the community-at-large are among the stakeholders of a firm.
TRUE
17.
Symbiosis is the ability to recognize interdependencies among the interests of multiple stakeholders within and outside an organization.
TRUE
18.
Procter and Gamble developed a laundry detergent compaction technique that appeals to consumers, retailers, shipping and wholesalers, and environmentalists. This is an example of stakeholder symbiosis.
TRUE
19.
Social responsibility is the idea that organizations are not only accountable to stockholders but also to the community-at-large.
TRUE
20.
The concept of shared value redefines the purpose of the corporation as creating shared value in order to create a more even distribution of the profits to all employees, not just top level executives.
FALSE
