Strategic Management Final Exam Questions & Answers(RATED A+)
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Strategic Management
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Strategic Management
The traditional approach to strategic control is interactive, while the contemporary approach to strategic control is sequential. - ANSWERFalse
For firms competing in highly unstable and turbulent industries, traditional strategic controls are most appropriate. - ANSWERFalse
Behavioral contro...
the traditional approach to strategic control is i
for firms competing in highly unstable and turbul
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Strategic Management Final Exam
Questions & Answers(RATED A+)
The traditional approach to strategic control is interactive, while the contemporary approach to
strategic control is sequential. - ANSWERFalse
For firms competing in highly unstable and turbulent industries, traditional strategic controls are
most appropriate. - ANSWERFalse
Behavioral control is one of two types of strategic control and is concerned with strategy
implementation. - ANSWERTrue
Once a strong and healthy organizational culture has been established, it becomes self-sustaining. -
ANSWERFalse
The organizational reward system is typically a weak method for motivating employees. -
ANSWERFalse
Different functional areas within an organization often have different reward systems. - ANSWERTrue
One of the most critical roles of the board of directors is to create incentives that align the interests
of the CEO and top executives with the interests of shareholders. - ANSWERTrue
The risk of being acquired by hostile raiders is often referred to as the takeover constraint. -
ANSWERTrue
In choosing membership on the board of directors, consideration should be given to the size of the
board as well as the individual member expertise and commitment to participate fully. -
ANSWERTrue
The business media is a significant external control mechanism. - ANSWERTrue
,Tesco was forced to restate its earnings for the first half of 2014 to 431 million USD because senior
managers in the UK food business had booked income early and delayed the booking of costs in
order to improve appearances of financial performance. This scandal results from ____________
and__________.
A. poor environment; management systems
B. poor governance; control
C. external environmental factors; internal environmental factors
D. leadership; financial systems - ANSWERB
The traditional approach to strategic control is sequential. Which of the following is not one of the
steps in the sequence?
A. Action plans are submitted by lower level managers.
B. Performance is measured against the predetermined goal.
C. Strategies are implemented.
D. Strategies are formulated and top management sets goals. - ANSWERA
Contemporary approaches to strategic control rely primarily on
A. feedback controls.
B. single-loop learning.
C. double-loop learning.
D. comparative learning - ANSWERC
Top managers at ABC Company meet every Friday to review daily operational reports and year to
date data. This is an example of
A. behavioral control.
B. informational control.
C. strategy formulation.
D. strategy implementation. - ANSWERB
Which of the following is not an example of how organizational culture exerts behavioral control?
A. Culture helps maintain control by creating behavioral norms.
B. Culture generates unwritten standards of acceptable behavior.
C. Culture encourages individual identification with the organization and its objectives.
, D. Culture sets explicit boundaries - ANSWERD
Which of the following is not one of the characteristics of reward and incentive systems?
A. They represent a poor means of influencing the culture of an organization.
B. They focus efforts on high priority tasks.
C. They motivate high levels of individual and collective task performance.
D. They represent an effective control mechanism. - ANSWERA
Most successful organizations minimize the need for explicit rules, regulations, and other boundaries
by
A. posting written statements of the organizational goals and objectives.
B. discouraging the formation of subcultures that isolate work groups.
C. designing effective reward systems.
D. encouraging employees to see themselves as free agents. - ANSWERC
The primary participants in corporate governance do not include the
A. shareholders.
B. financial institutions.
C. management (led by the chief executive officer).
D. board of directors. - ANSWERB
Shareholders rely on CEOs to adopt policies and strategies that maximize the value of their shares. To
motivate CEOs to maximize the value of their companies, boards of directors can consider all of the
following options except one. Which one is it?
A. Boards can require that the CEOs become substantial owners of company stock.
B. Salaries, bonuses, and stock options can be structures to provide rewards for superior
performance.
C. Salaries can be structured to provide penalties for poor performance.
D. Dismissal for poor performance is not an option. - ANSWERD
External governance control mechanisms include all of the following except
A. auditors.
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