Deck 1: Managerial Decision Making and Strategic Management

Question 1

The field of macroeconomics examines employment, price levels, and the growth of the national and international economies, while the field of microeconomics focuses on industries and the nature of competition in various industry environments.

Answer 1

True

Question 2

Which of the following is not one of the four types of mental models?

A) Managers' beliefs about industry environments and how these beliefs influence decisions about business definition and positioning
B) Beliefs about how to compete, and how these beliefs influence decisions about business strategy
C) Understandings about the appropriate scale and scope of the business enterprise, and how these beliefs influence firms' corporate strategies
D) Beliefs about how to organize, and how these mental models influence decisions about organizational structure
E) All of these are mental models listed in the textbook

Answer 2

E

Question 3

The level of analysis associated with the field of macroeconomics is

A) firms and businesses
B) industries and markets
C) the economy
D) products and services
E) None of these

Answer 3

C

Question 4

The level of analysis associated with strategic management is

A) firms and businesses
B) industries and markets
C) the economy
D) products and services
E) None of these

Question 5

The level of analysis associated with marketing is

A) firms and businesses
B) industries and markets
C) the economy
D) products and services
E) None of these

Question 6

________________ is the field of study which focuses on individuals.

A) Marketing
B) Operations management
C) Strategy
D) Microeconomics
E) None of these

Question 7

General managers include all of the following except:

A) Presidents
B) CEOs
C) Heads of business units
D) Boards of directors
E) None of these

Question 8

A(n) _________ of workers now make a living not by physical labor, but by communicating and sharing knowledge.

A) vast minority
B) vast majority
C) increasing minority
D) decreasing majority
E) None of these

Question 9

Highly regarded firms in which accounting scandals destroyed billions of dollars of shareholder value and shook investor confidence included which of the following firms:

A) WorldCom
B) Adelphia
C) Qwest
D) All of these firms
E) None of these firms

Question 10

In the deep recession of 2008-2010 , the government either took over or assumed a major equity stake in which of the following firms:

A) Ford
B) Lehman Brothers
C) All of these firms
D) None of these firms
E) AT&T

Question 11

Which of the following firms identified as "excellent/visionary companies" by Peters and Waterman and Collins and Porras have not experienced difficulties, decline, and in some cases, failure?

A) Marriott
B) Johnson & Johnson
C) Boeing
D) All of these firms
E) None of these firms

Question 12

What are the three key themes that will be emphasized in the textbook?

Question 13

Why is it important for all employees in an organization to develop stategic thinking skills?

Question 14

How should organizations go about ensuring that their employees share organizational knowledge and learning?

Question 15

Describe the "emergent" nature of the strategy formulation and implementation processes.

Question 16

Strategic decisions involve decisions about issues affecting the firm that

A) are important
B) involve significant allocations of resources
C) involve more than one functional department
D) Only A and C apply
E) All of these apply

Question 17

Strategy is best thought of as ____________________________.

A) a grand plan
B) a comprehensive statement of the objectives and action plans
C) a pattern in a stream of decisions
D) All of these terms apply
E) None of these terms apply

Question 18

Most business fields examine more "micro"-or inside the firm-levels of analysis.

Question 19

The tasks of general managers are less complicated because the industry environments in which firms and businesses compete tend to remain constant.

Question 20

Nearly all developed economies are now aging and growing increasingly less diverse.

Question 21

Shifting demographics tend to create less demand for new products and services.

Question 22

Managers' mental models of the situations they encounter determine whether a particular strategic issue or situation will be noticed, how it will be interpreted and understood, and how they will respond to the situation.

Question 23

Managers create strategies which they can then use to construct mental models of performance.

Question 24

A mental model is defined as "a pattern in a stream of decisions."

Question 25

Strategic management is a highly dynamic process, and the strategies that worked well during
one time period are unlikely to remain effective indefinitely.

Question 26

Few of the companies that were identified as "excellent companies" by Peters and Waterman in their classic book have experience difficulties or failure.

Question 27

An "unrealized strategy" is a strategy that is _______________.

A) not implemented
B) late in its implementation
C) early in its implementation
D) unlikely to be abandoned
E) None of these terms apply

Question 28

A "emergent strategy" is a strategy that is ___________________.

A) is intended to be implemented by management
B) precedes the intented strategy in the strategic planning process
C) the result of managerial decisions in response to dynamic change in the business environment
D) All of these terms apply
E) None of these terms apply

Question 29

Mental models were defined by Peter Senge as "_______________________ that influence how we understand the world and how we take action."

A) deeply ingrained assumptions
B) generalizations
C) pictures or
D) images
E) All of these terms apply
F) None of these terms apply

Question 30

In the textbook, the definition of strategy is defined differently from the conventional view of strategy as a "grand plan." The authors define "strategy" as "a pattern in a stream of ________________________."

A) actions
B) decisions
C) reactions
D) All of these terms apply
E) None of these terms apply

Question 31

Given the primary influence of an attractive industry structure on firm performance, what arguments can be made in support of managerial thinking being of critical importance to a firm's performance?