Test bank of fred r david – strategic management, 13th edition ch10

According to the GCC's definition, a willingness to seek ideas from around the world and customize them for the GCC's unique circumstances is an example of global perspective... Accordin

Name _

TRUE/FALSE Write 'T' if the statement is true and 'F' if the statement is false

1)

Leadership is defined as a process of influence that is shared in nature between leaders and followers 1)

_

2)

In the Arab world leaders have not had a strong impact on the welfare of societies 2)

_

3)

Certain Arab corporations are positioned among the best in the global marketplace 3)

_

4)

In formulating and evaluating strategies, leadership has a vital role to play 4)

_

5)

The Boston Consulting Group recognized eight Arab companies as being among the top global challengers.

5)

_

6)

Most Arab executives who have initiated profound changes and built successful corporations have lost sight of their responsibility towards their business and the future of the region

6)

_

7)

According to the GCC's definition, farsighted vision is a short-term outlook that recognizes the importance

of building sustainable institutions for the current generation

7)

_

8)

According to the GCC's definition, a willingness to seek ideas from around the world and customize them for the GCC's unique circumstances is an example of global perspective

8)

_

9)

According to the GCC's definition, an example of regional and global perspective is the fact that the GCC's leaders are not just building their own organizations but are also acting in concert to establish the region

as a global player

9)

_

10)

An example of practical openness, according to the GCC's definition, is a willingness to seek ideas from around the world but only if they reflect cultural ideas which are new to the GCC

10)

11)

The desired qualities that should be nurtured in leaders of the next generation, according to the GCC's definition, are far-sighted vision, ability to generate profit, and communication skills

11)

12)

The spread of desired qualities in leaders of the next generation can be achieved by communicating the values and practices shown by successful CEOs in the Arab region

12)

13)

In the Arab region, the successful CEOs have always delegated the shaping of their organizations' culture 13)

14)

In conducting business in the region, Arab executives have sometimes left certain initiatives and actions tochance

14)

15)

The COO of Mubadala Development Company has commented that his company originally invested for purely financial returns without a strategic objective

15)

16)

Executives rarely differ in their orientations or in their strategy implementation 16)

17)

In the autocratic form of leadership, there are strict rules and regulations regarding procedures and coordination

17)

18)

In the autocratic form of leadership, consultation always takes place 18)

19)

In the autocratic form of leadership, sharing of strategic information or coaching of subordinates is not likely to happen

19)

20)

Benevolent leaders do not set specified rules and policies 20)

21)

The tradition-driven executives are particularly concerned with group harmony 21)

22)

The tradition-driven leaders usually make decisions at the top and centralize control, and maintain formality in operational aspects and conduct

22)

23)

In tradition-driven leadership situations, subordinates may exhibit commitment to goal implementation because of their involvement in performance

23)

24)

The spiritually enlightened leaders are guided by ehsan (perfection, excellence) and general Islamic assumptions

24)

25)

The spiritually enlightened executives are sensitive to their organizational and personal image and monitorbusiness trends

25)

26)

The spiritually enlightened executives seek input and participation from their subordinates in articulating their strategic vision

26)

27)

The business scene in the Arab world shows that Arab CEOs do not usually have multiple roles 27)

28)

As part of their strategic managerial roles, most managers in the region are active in securing critical financial resources and in representing the company to outsiders

28)

29)

Unlike the early generation of executives who depended mostly on intuition, the new executives are increasingly involved in strategy evaluation

29)

30)

Operations-related managerial roles center on strategy implementation, fair and efficient division of labor, effective control systems, reward systems, providing feedback, and anticipation of problems

30)

31)

Managers in the Arab world, in the era of global competition, have had to be more willing than their predecessors to participate in strategic implementation

31)

32)

Managers in the Arab world are generally uncomfortable with leadership activities and roles 32)

33)

In formulating strategy and engaging in implementation, CEOs have to play multiple roles and reconcile the pressing demands of various stakeholders

33)

34)

Among the most useful indicators of effective leadership is having a succession plan in place for the next CEO

34)

35)

Having a succession plan shows CEOs are preoccupied with the future and not focused on building a strongculture immediately

35)

36)

The Arab private sector has always had a tradition of effective succession planning 36)

37)

Since the majority of the firms in the Arab region are family-owned businesses, a smooth transition is necessary to ensure the survivability and vitality of the business

37)

38)

In the Arab world, there should be a clearly defined process for the selection of a CEO successor 38)

39)

Whether the new CEO is from within or from outside the organization, the role of CEO is similar to other operating roles

39)

40)

The period between the announcement of the appointment and the actual 'changing of the guard' (the assumption of responsibility) should be considered a honeymoon period for the new CEO 40)

41)

Business organizations that have sustained growth and achieved remarkable market positions do not necessarily have a strong organizational culture

41)

42)

The articulation of corporate values enhances loyalty among employees and creates a positive image in the marketplace

42)

43)

Culture has a minor effect on strategy execution 43)

44)

The founders of an organization are usually the ones who set the tone and vision for the organization 44)

45)

As an organization grows in size and more employees join it, they bring with them their own beliefs and values, but these don't change the existing culture

45)

46)

In the Arab world, where tradition is deeply ingrained in the mind of the people, employees easily accept identification with the organizational culture when the leaders are concerned with moral conduct and are known for their thoughtfulness and inspirational roles

46)

47)

Whilst promoting a strong and positive culture is vital for a company, it does not have much of an affect onstrategy implementation

47)

48)

Strong culture helps to ensure that a company is cohesive and employees have a strong bond with the company and its mission

48)

49)

Similarly to the West, companies in the Arab world usually deal swiftly with the symptoms of an unhealthy culture

49)

50)

It is essential that senior managers provide a mechanism to effectively tackle aspects of an unhealthy culture and prevent the temptation to be complacent

50)

51)

Transparency is not so crucial for safeguarding cultural adaptation and preventing the emergence of an unhealthy culture

51)

52)

A strong organizational culture is a strategic advantage for an organization 52)

53)

Culture is one of the most critical factors in strategy formulation and implementation 53)

54)

A strong culture helps a company formulate and communicate a coherent strategy, as well as helping to focus employees' energy throughout an organization into implementing the strategy

54)

55)

Companies that have high divergence between culture and strategy often experience higher performance and encounter relatively fewer difficulties in implementation

55)

56)

Where existing culture does not smoothly facilitate strategy execution, senior executives face serious problems

56)

57)

Executives should not give priority to changes that might differ from existing norms and values 57)

58)

Increasingly in the Arab world, corporations have become an influencing factor in economic development and improving the welfare of the people

The essence of leadership is the ability 59)

A)

to articulate vision, organize and deploy resources, and sustain productive involvement and inspirational performance

B)

to set a single direction for their organization and ensure everyone adheres to it

C)

to ensure successful results are delivered, regardless of whether everyone agrees or not

D)

to articulate vision, delegate the organization of resources, and leave communication to other executives

E)

to communicate the organization's main purpose and mission, but not to get too involved in strategy execution

60)

All of the following UAE based Arab companies were recognized by Boston Consulting Group as being

among the top 100 global challengers, except

60)

A)

Agility

B)

Etisalat

C)

Dubai World

D)

Emaar Properties

E)

Emirates Airlines 61)

The Arab companies recognized by Boston Consulting Group as being among the top 100 global challengers were selected for their

61)

A)

ability to create value during economic instability, for their robust revenues and profits, for their hefty purchasing power, for significant activity in mergers and acquisitions, and for their cautious attitudes toward risk

B)

ability to survive during economic instability, for their hefty purchasing power, for making profits without mergers and acquisitions, and for their bold attitudes toward risk

C)

ability to create value during economic instability, for their robust revenues and profits, for their hefty purchasing power, for significant activity in mergers and acquisitions, and for their bold attitudes toward risk

D)

ability to make profit during economic stability, for their hefty purchasing power, for significant activity in mergers and acquisitions, and for their bold attitudes toward risk

62)

Responsible leaders understand that strategy has two primary objectives These are 62)

A)

to link their corporations to the rest of the market and achieve competitive advantage

B)

to differentiate their corporations from the rest of the market and have comparative advantage

C)

to differentiate their corporations from the rest of the market and achieve competitive advantage

D)

to equate their corporations with the rest of the market and achieve competitive advantage 63)

All of the following are desired qualities that should be nurtured in leaders of the next generation, except

63)

A)

farsighted vision

B) practical (pragmatic) openness

C)

regional and global perspective

D) cross-cultural discrimination

64)

A long-term outlook that recognizes the importance of building sustainable institutions for future generations is called

64)

A)

regional perspective

B) farsighted vision

C)

practical openness

D) global perspective

65)

In the GCC's definition of desirable qualitties for leadership, a willingness to seek ideas from around the world and customize them for the GCC's unique circumstances is an example of

65)

A)

farsighted vision

B) regional perspective

C)

practical openness

D) global perspective

66)

The recognition of the fact that the GCC's leaders are not just building their own organizations but are also acting in concert to establish the region as a global player is an example of

66)

A)

practical openness

B) regional and global perspective

C)

regional perspective

D) farsighted vision

67)

Executives such as Mohammad Omran (Chairman, Etisalat), Ibrahim S Dabdoub (CEO, National Bank of Kuwait), Ahmed Heikal (Chairman of Citadel Capital) and Abdel Hamid Shoman (Chairman, the Arab Bank) are given as examples of people who have

67)

A)

been instrumental in shaping the culture of their organizations but have not been able to implement strategies succesfully

B)

been instrumental in shaping the culture of their organizations and effective in implementing strategies that have led these organizations to be credible players in the marketplace

C)

been fortunate that their organizations have been credible players in the marketplace without any attempts to shape a strong organizational culture

D)

mimicked competitor strategies to become credible players in the marketplace

E)

all the above 68)

In the Arab region 68)

A)

there are numerous examples of how executives have left certain initiatives or actions to chance but no examples of actions taken with specific goals in mind

B)

it is impossible to judge whether actions are left to chance or carefully planned

C)

executives never leave initiatives or actions to chance

D)

there are numerous examples of how executives have left certain initiatives or actions to chance 69)

In considering executives' orientations, it is apparent that 69)

A)

executives differ in their orientations but rarely in their strategy implementation

B)

executives rarely differ in their orientations but their approaches to strategy implementation can be very varied

C)

executives all have a similar orientation and a similar approach to strategy implementation

D)

executives differ in their orientations and subsequently in their strategy implementation 70)

Which of the following is not a form of leadership?

70)

A)

Tradition-driven

B)

Commanding

C)

Benevolent (Sheikocratic)

D)

Autocratic

E)

Spiritually enlightened 71)

Benevolent leaders tend to have a centralized authority and are inclined toward all of the following, except

71)

A)

placing emphasis on open-door policies

B)

personal relations

C)

coaching of subordinates

D)

caring for the welfare of subordinates inside and outside the organization 72)

The attitudes of benevolent leaders may induce them to manage business affairs 72)

A)

without input from subordinates

B) secretively

C)

formally

D) informally

73)

The tradition-driven executives consider the viability of the organization to be sustained through all of the

following, except

73)

A)

involvement

B) decentralization of decision-making

C)

attention to input from subordinates

D) coaching

74)

Spiritually enlightened leaders are guided by deeply held views on the importance of all the following except

74)

A)

The necessity for global expansion

B)

Giving high priority for the society at large

C)

Furthering the interest of the community

D)

The welfare and viability of the community 75)