Strategic Management: Concepts and Cases 3rd Edition by Jeffrey H. Dyer Test bank

Bloomcode: Application
Standard 1: AACSB || Analytic

 
35) The board of directors of Indigo Bank implements a sound strategy that will help them gain overall profits and maintain competitive advantage. It claims that supervising and measuring the efficacy of the functional strategies of the company are more than sufficient to implement the company’s strategies. However, Klark, one of the board members, argues that this alone is not enough and that the company should think of creating an emotional appeal toward its employees. Which of the following statements strengthens Klark’s argument?
 
a) The employees of Indigo Bank are content with the current culture of the organization.
b) The board of directors feels that creating an informal environment will initiate a high level of absenteeism.
c) The board of directors feels that Indigo Bank is functioning efficiently because the top executives make it a point to maintain an authoritarian distance from their subordinates.
d) Indigo Bank’s structure, systems, staff, skills, style, and shared values will help progress strategic implementation if they are designed to facilitate the execution of the strategy.
 
Answer: d
 
Difficulty: Hard
Section Reference 3: How Are Strategies Formulated?
Learning Objective 3: Discuss how strategies are formulated and implemented in order to achieve objectives.
Bloomcode: Analysis
Standard 1: AACSB || Reflective Thinking
 
 
36) Sasha has the new responsibility of initiating strategies that would help safeguarding her company against recession. She conducts a meeting with all the employees in which she explains how she would go about implementing her plans. She also motivates and encourages employees to follow through with her plan. Sasha is a ________.
 
a) strategic follower
b) strategic leader
c) strategic helper
d) strategic believer
 
Answer: b
 
Difficulty: Hard
Section Reference 4: Who Is Responsible for Business Strategy?
Learning Objective 4: Explain who is responsible for, and who benefits from, good business strategy.
Bloomcode: Application
Standard 1: AACSB || Analytic

 
37) The managers at Marker Inc., a moving company, want to formulate a plan of action to implement their mission, “We deliver what we promise. Always.” To achieve this, the company chooses the best markets to invest in, buys state-of-the-art transportation vehicles, employs spill and damage proof style of packaging equipment, and develops a service-oriented mentality. This method of conducting business earns them a reputation. This scenario is an example of ________.
 
a) deliberate strategy
b) accidental strategy
c) emergent strategy
d) evolving strategy
 
Answer: a
 
Difficulty: Hard
Section Reference 4: Who Is Responsible for Business Strategy?
Learning Objective 4: Explain who is responsible for, and who benefits from, good business strategy.
Bloomcode: Application
Standard 1: AACSB || Analytic

 
38) The management of Winters Corp., a small company, pursued an unexpected opportunity and gained huge profits over a period of 10 years. At the end of this period, Winters Corp. grew as a company and successfully established itself as a highly valued brand in the industry. This is an example of a(n) ________.
 
a) functional strategy
b) accidental strategy
c) emergent strategy
d) deliberate strategy
 
Answer: c
 
Difficulty: Hard
Section Reference 4: Who Is Responsible for Business Strategy?
Learning Objective 4: Explain who is responsible for, and who benefits from, good business strategy.
Bloomcode: Application
Standard 1: AACSB || Analytic

 
39) Thomas is an important figure at Seasons Inc. All of the company’s functions, acquisitions, marketing strategies, and business development plans need to partially receive approval from Thomas. This is due to the fact that Thomas owns 20% of Seasons Inc. In this scenario, Thomas is a ________.
 
a) supplier
b) stakeholder
c) customer
d) distributor
 
Answer: b
 
Difficulty: Hard
Section Reference 4: Who Is Responsible for Business Strategy?
Learning Objective 4: Explain who is responsible for, and who benefits from, good business strategy.
Bloomcode: Application
Standard 1: AACSB || Analytic

 
40) Ria, an entrepreneur, shares the company’s profits as well as losses. She usually receives highest priority from the company. In this scenario, Ria is a ________.
 
a) distributor
b) customer
c) shareholder
d) stakeholder