Directions: Choose the best answer to each question.

1.How are the concepts of value and the value chain related to strategy?
()a.Value points to economic metrics that can be used to measure strategic success.
()b.Value chain analysis identifies areas critical to strategic success.
()c.The value chain defines what is important for the organization’s stakeholders.
()d.These concepts relate primarily to for-profit enterprises.

2.The focus of strategic planning is on goals and how they will be achieved. What is the focus of
strategic management?
()a.How leaders act in alignment with those goals
()b.Tracking allocation of resources toward strategic goals
()c.Identifying future talent
()d.Satisfying stakeholders

3.What is the key benefit of developing consistent, long-term goals?

()a.It shows the interaction of planning, people, and process to achieve goals.
()b.It separates strategic intentions from the effects of organizational culture.
()c.It decreases the influence of external factors.
()d.It reduces resources wasted on nonstrategic activities.

4.What type of organizational activity is most likely to succeed in the strategic planning and
management processes?
()a.Strategies are developed by the functions with little involvement of senior management.
()b.Senior management develops a high-level strategy intended solely for publication in the
annual report.
()c.HR is asked to analyze current competencies against a proposed strategy.
()d.Function leaders make well-reasoned strategic decisions based on their operational needs.

5.A firm manufactures glass used in commercial building projects. Their advantage lies in the
variety of their offerings and the technologies they use. However, other firms can take
business from them by offering similar products with different technologies. Which of
Porter’s “Five Forces” does this illustrate?
()a.Threat of substitution
()b.Threat of entry
()c.Bargaining power of suppliers
()d.Bargaining power of buyers

6.What is a business case?

()a.Cost-benefit analysis of a business concept
()b.Market research into acceptability of a new service or product
()c.Scenario-based test of a business plan
()d.Analysis of a problem and of possible solutions
7.When would a return on investment (ROI) analysis be an effective metric?
()a.An organization wants to compare its productivity with that of similar competitors.
()b.A function is seeking budget to hire new staff.
()c.An investor is seeking information about a company’s financial performance.
()d.An HR function wants to confirm that it is complying with legal and regulatory
requirements.

1.What skill could most improve an HR function’s ability to manage change?

()a.Mastery of complex communication means
()b.Knowledge of current job descriptions
()c.Understanding of strategic implications
()d.Evaluation

2.What should leaders understand about managing change?

()a.Acceptance of change cannot be expected until long after the change has been made.
()b.Managing change involves employees’ cognition, emotions, and behavior.
()c.Most employees will embrace the promise of change.
()d.Global organizations must standardize their processes for introducing organizational
change.

3.What important action takes place at the end of Lewin’s change management model?
()a.Employee input on change is sought.
()b.A vision of the future is communicated.
()c.The change is made a lasting part of the organization’s policies or processes.
()d.Employees are motivated to accept the change.

1.A manager has two staff members who disagree deeply over the reasons why a process is not
working. The manager doubts they will ever agree about this. He intervenes and points out
that everyone can agree at least that the process is not working and focuses the discussion on
what to do now. What mode of conflict resolution is being used?
()a.Accommodate.
()b.Assert.
()c.Avoid.
()d.Collaborate.

2.What is the process where two or more parties work together to reach an agreement on a
matter?
()a.Negotiation
()b.Strategic planning
()c.Performance evaluation
()d.Meeting of the minds
3.Which form of negotiation is most consistent with the leadership characteristics found to be
effective in global settings?
()a.Soft
()b.Hard
()c.Principled
()d.Collaborative