Chapter #2 part #2

Create an image of a classroom setting with a chalkboard illustrating strategic management concepts, such as objectives, performance targets, and corporate governance, featuring diverse students engaged in learning.

Strategic Management Quiz

Test your knowledge on strategic management concepts and principles with our comprehensive quiz! Covering various aspects of strategic planning, execution, and corporate governance, this quiz challenges you to think critically about long-term objectives, performance targets, and effective strategy execution.

10 engaging multiple-choice questions
Focused on key concepts in strategy and management
Fun and educational for students and professionals alike

10 Questions2 MinutesCreated by PlanningPath142

Why should long-run objectives take precedence over short-run objectives?

The focus is placed on improving performance in the near term.

Long-run objectives are necessary for achieving long-term performance and stand as a barrier to undue focus on short-term results.

Long-run objectives will satisfy shareholder expectations for progress.

Long-run objectives will force the company to deliver performance improvement in the current period.

None of these are correct.

Company objectives

Are needed only on a companywide basis related to a company’s short-term and long-term profitability.

Need to be broken down into performance targets for each of its separate businesses, product lines, functional departments, and individual work units.

Play the important role of establishing the direction in which the company needs to be headed.

Are important because they help guide managers in deciding what the company’s strategy map should look like.

Should be set in a manner that does not conflict with the performance targets of lower-level organizational units.

A company needs performance targets or objectives

For its operations as a whole and for each of its separate businesses, product lines, functional departments, and individual work units.

Because they provide parameters for the company’s strategy map.

To unify the company’s strategic vision and business model.

To help guide managers in deciding what strategic path to take in the event that a strategic inflection point is encountered.

To prevent lower-level organizational units from establishing their own objectives.

Functional area strategies

Are concerned with how to unify the firm’s several different operating strategies into a cohesive whole.

Specify how to build and strengthen the skills, expertise, and competencies needed to execute operating-level strategies successfully.

Support and add power to the corporate-level strategy.

Concern the actions, approaches, and practices to be employed in managing particular functions within a business.

Are normally crafted by operating-level managers.

Business strategy concerns

Strengthening the company’s market position and building competitive advantage.

Ensuring consistency in strategic approach among the businesses of a diversified company.

Selecting a business model to use in pursuing business objectives.

Selecting a set of financial and strategic objectives for a particular line of business.

Choosing appropriate internal business processes for a specific line of business.

The task of stitching together a strategy

Entails addressing a series of “hows”: how to grow the business, how to please customers, how to outcompete rivals, how to respond to changing market conditions, and how to achieve strategic and financial objectives.

Is primarily an exercise in deciding which of several freshly emerging market opportunities to pursue.

Should be dictated by what is comfortable to management from a risk perspective and what is acceptable in terms of capital requirements.

Requires trying to copy the strategies of industry leaders as closely as possible.

Is mainly an exercise in good planning.

Proficient strategy execution

Directly involves only the CEO and board of directors of the firm.

Is achieved unevenly, coming quickly in some areas and more slowly in others.

Entails accomplishing desired outcomes and then examining what went right and what went wrong.

Is an every-now-and-then task.

Is always the product of much organizational learning.

When things are not going well, the corrective adjustments that top executives need to make include

Discerning whether or not to promote better achievement of strategic performance targets ahead of financial performance targets.

Deciding whether the company would be better off making adjustments that curtail the achievement of strategic objectives or that curtail the achievement of financial objectives.

Knowing when to replace poorly performing subordinates and when to do a better job of coaching them to do the right things.

Having the analytic skills to separate the problems due to a bad strategy from the problems due to bad strategy execution.

Deciding when adjustments are needed and what adjustments to make.

The corporate governance failure at Volkswagen in 2015 included all of the following except

A strong independent board of directors that was responsible for making independent judgments about the validity and wisdom of management’s proposed strategic actions.

Inadequate monitoring of the CEO and other senior executives.

Fraudulent defeat devices that enabled diesel vehicles to pass stringent emissions tests.

Ineffective oversight of the accounting principles employed to accurately determine earnings.

The company had a policy that precluded former executives from serving on its board.

The primary roles/obligations of a company’s board of directors in the strategy-making, strategy-executing process include

Playing the lead role in forming the company’s strategy and then directly supervising the efforts and actions of senior executives in implementing and executing the strategy.

Providing guidance and counsel to the CEO in carrying out his or her duties as chief strategist and chief strategy implementer.

Overseeing the company’s financial accounting and reporting practices, evaluating the caliber of senior executives’ strategy-making and strategy-executing skills, and instituting a compensation plan that rewards top executives for results that serve shareholder interests.

Working closely with the CEO, senior executives, and the strategic planning staff to develop a strategic plan for the company.

Reviewing and approving the company’s business model, and reviewing and approving the proposals and recommendations of the CEO as to how to execute the business model.

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Chapter #2 part #2

Strategic Management Quiz

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