Strategic Management Theory & Cases: An Integrated Approach 13th Edition by Charles test bank
a.
uncertainty.
b.
planning equilibrium.
c.
bottom-up planning.
d.
strategic fit.
e.
cognitive bias.
ANSWER:
a
58. Which of the following cognitive biases occurs when decision makers commit even more resources to a project after they receive feedback that the project is failing?
a.
Prior hypothesis bias
b.
Reasoning by analogy
c.
Illusion of control
d.
Escalating commitment
e.
Representativeness
ANSWER:
d
59. Overconfidence about their ability to succeed can lead top managers in a company to be prone to:
a.
prior hypothesis biases.
b.
escalating commitment.
c.
reasoning by analogy.
d.
representativeness.
e.
illusion of control biases.
ANSWER:
e
60. More people seem to fear a snake bite than a dog bite, and yet statistically one is more likely to be bitten by a dog than by a snake. This is because people tend to estimate the probability of an outcome based on how easy the outcome is to imagine. This represents which of the following cognitive biases?
a.
Escalating commitment
b.
Hypothesis bias
c.
Availability error
d.
Representativeness
e.
Illusion of control
ANSWER:
c
61. Which of the following is a benefit of dialectic inquiry?
a.
It increases the realizations of the possible dangers of the recommended plan.
b.
It is useful in countering biases.
c.
It constrains the usual optimism associated with strategic planning.
d.
It promotes strategic thinking and allows a greater conceptualization of the problem.
e.
It emphasizes why a proposal is not an acceptable choice for solving the problem.
ANSWER:
d
62. Systematic errors in the decision-making process are most often caused by:
a.
inadequate information.
b.
information overload.
c.
cognitive biases of decision makers.
d.
poor data collection procedures.
e.
the devil's advocacy method.
ANSWER:
c
63. Which of the following cognitive biases refers to the fact that decision makers who have strong prior beliefs about the relationship between two variables tend to make decisions based on these beliefs, even when presented with evidence that their beliefs are incorrect?
a.
Confirmation bias
b.
Reasoning by analogy
c.
Illusion of control
d.
Escalating commitment
e.
Representativeness
ANSWER:
a
64. Holly owns a landscape company and is thinking about expanding her services to include outdoor water features (waterfalls, streams, ponds). If, before making this decision, she looks at the experience of similar firms that have added outdoor water features, she is employing:
a.
reasoning by analogy.
b.
illusion of control.
c.
devil's advocacy.
d.
the outside view.
e.
dialectic inquiry.
ANSWER:
d
65. Which of the following is a negative aspect of the ivory tower approach to the strategic planning process?
a.
It can lead to tensions between corporate-level and functional-level managers.
b.
The strategic role of autonomous decisions made by lower-level managers can be ignored.
c.
Decisions are made by top managers that are not connected to the day-to-day operations.
d.